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Redstone Arsenal - TVA UESC Case Study Mark D. Smith, P.E., C.E.M. U.S. Army Garrison - Redstone Hosted by: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR April 19 - 20, 2018 Nashville, TN

FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

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Page 1: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

Redstone Arsenal - TVA UESC Case Study Mark D. Smith, P.E., C.E.M.

U.S. Army Garrison-Redstone

Hosted by:

FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR

April 19-20, 2018Nashville, TN

Page 2: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

Thank You!

Page 3: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

Redstone Arsenal

Lauderdale

Colbert

Franklin Morgan

Cullman

Madison

Marshall

Jackson

Giles Lincoln Franklin Marion

17,500Civilians

(43%) 800Military

(2%)

22,200Contractors

(55%)

40,500+Total

Employees

Major Redstone Career Fields Supporting Redstone Arsenal Science and Engineering Logistics Management Acquisition & Contracting

40K Direct Jobs on RSA 66.5K Indirect & Induced Jobs Across

Region Over 1,200 RSA Employees live in

Tennessee Approximately 500 live in Fayetteville

~104,500 Total Jobs AcrossTennessee Valley

~$18B Total Annual Economic Impact

Overview 38,162 Acres 13,000 Developable Acres 1,774 Buildings (19M sq ft) 78 Tenant Organizations

Page 4: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

Logistics Services

Materiel Management, Acquisition, Contracting

& Sustainment

Redstone Arsenal – Federal Center of Excellence

5

Sustaining the Force

Research, Development, Test

& EngineeringInnovation Application of Sciences & Technology

Space Operations & Missile Defense

Exploration & Defensive Capabilities

Intelligence & Homeland Defense

Threat Analysis & Explosives Training

UNCLASSIFIED

UNCLASSIFED

Page 5: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

Production:

Controls:

Efficiency:

– Increase Secure & Renewable Energy– Budget Neutral Requirement

– Energy Source Selection (TVA UESC Steam Pruning)

– Facility and Installation Energy Demand Reduction (Facility Energy Audits)

How we’re getting there…

– Facility & Utility Level Metering– Bldg Controls & Monitoring Systems– Utility Switching Capability

Electricity Steam Nat Gas

RSA Energy Strategy

Page 6: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

Energy WasteFossil Fuels

Metering, Customer Audits, & Other Programs

JUN 2005DOE Steam System Options Study

Short-term & long-term steam recommendations

AUG 2003DOE Facility Energy Decision System (FEDS)

Determined steam as priority for gaining efficiencies

1940s

Steam as non-ignition energy source

1980s

Joint venture between Army & SWDA

Strategy

Energy EfficiencyEnergy SecurityWater Efficiency

History & Direction

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

TVA Study

Decrease

Increase

TVA Task Order 3 (PII)

TVA Task Order 3 (PI)

TVA Task Order 1

TVA Task Order 2

Page 7: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

62%

32%

18%

5%20%

0%10%20%30%40%50%60%70%80%90%

100%

Cost Consumption

Natural Gas

Steam

Electricity

FY 17 Redstone Arsenal Total Energy

63%

Page 8: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

The Department of Energy has suggested that our steam distribution system loses about 35%, as a minimum, just from the pipe being heated.

100 BTUs Input

35 BTUs LossTo Atmosphere

65 BTUs Usable Heat

Typical Steam Distribution System

Redstone Arsenal Energy Loss

$$ $$

Page 9: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

Utility Energy Service Contract (TVA)

7

9 8

1

3 Meter Group A

Meter Group B

North Loop Phases 1-4

Page 10: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

Utility Energy Service Contract (TVA)Goal

• Increase efficiency & reduce energy demand and cost

Scope to Date• Switching from steam to natural gas

or other feasible alternative source• Lighting retrofits• Building automation controls and

metering• Mechanical system replacement• Building envelope improvements

D.O. #1 Meter Group A (37 Bldgs)• Cost $9.8 million• Annual savings $1.4 million • Payback 7 years • Construction complete FEB 2010• Loan closed SEP 2014

D.O. #2 Meter Group B (28 Bldgs)• Cost $14.7 million• Annual savings $2 million • Payback 7 years • Construction complete FY14• Loan closed NOV 2015

D.O. #3 North Loop 1 (27 Bldgs)• Cost $9.6 million• Annual savings $1.4 million • Payback 7.1 years

Page 11: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

The geothermal bore field is located in grassy area between the 3200 block of buildings

Utility Energy Service Contract (TVA)

Page 12: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

Utility Energy Service Contract (TVA)

Page 13: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

System Design - Bore field

• 168 vertical bores • 200 feet deep • Heat exchange pipe loops in each bore.• This system is estimated to use 1/3 of the Btu’s per sq. ft.

of the average building on RSA. • It will provide both heating and cooling for the 19

surrounding buildings.

Page 14: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

Utility Energy Service Contract – Way AheadD.O. # North Loop 2 (19 Bldgs)

• Cost $ 6.9 million• Annual savings $ 941 K• Payback 7.4 years • Design and submittal phase

North Loop 3 & 4 Detailed Energy Study (29 Bldgs)

• 3 - Currently In Review• 4 - Currently in Development

Sparkman Data Center – PNNL studyRedstone Technical Test CenterMcMorrow Lab Bldg. 5400 RelookProjects from DPW Annual Work Plan

Page 15: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

A Successful Process – Reality

Page 16: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

Understanding of the needs and goals Develop a mutually desirable Basic Ordering

Agreement (BOA) Audit plan for Detailed Energy Study (DES) Thorough proposal evaluation Thorough delivery order Thorough competition Joint contractor evaluation

A Successful Process - Procurement

Page 17: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

Performance Assurance Plan IAW DOE guidelines Commissioning AgentQuality Assurance Evaluator – ASQ CQIMeasurement and Verification - 1 year Preventative Maintenance – 1 to 3 years Thorough design/submittal reviewDetailed project schedule – Minimizes impact to

cost/missionsDesigner approved changesDesigner construction oversight / inspection

A Successful Process – Quality

Page 18: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

Project Liaison On-site construction project manager Weekly progress/update meetings Coordination w/Base Planning and Engineering Coordination w/Base O & M

A Successful Process – Relationships

Page 19: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

Extension for engineering support Option to pay off early Low interest financing Demand reduction – for both parties Helps stretch appropriated funds

A Successful Process – Benefits

Capital improvements ECM bundling Payment is line item on the utility bill Supports local economy/job creation Helps meet mandates

Page 20: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

Insure Appropriate Approval Thresholds Education on the UESC process => Buy-in

• Leadership• Resource Management• Contract Personnel• O & M Personnel => Performance Assurance Warranty Preventative Maintenance

Same engineer for audit and design => Consistency Communicate, communicate, communicate!

A Successful Process – Tips to Avoid Pitfalls

Page 21: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

0

50

100

150

200

250

200320042005200620072008200920102011201220132014201520162017

MBT

U/K

SF

Energy Progress

20,000

40,000

60,000

030405060708091011121314151617

ASIP Pop.

Factors Beyond the Formula

• Installation Population• Mission Requirements• Facility & System Efficiencies

0

500,000

1,000,000

1,500,000

2,000,000

030405060708091011121314151617

TotalElectricitySteamNat. GasFuel Oil

0

10,000

20,000

030405060708091011121314151617

Bldg kSF

MBT

U

Year

Year

Year

kSF

Pers

onne

l

A Successful Process – Results

Page 22: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

A Successful Process – The TeamRSA

Joe Davis, Director, Directorate of Public WorksCraig Northridge, Chief, Master Planning DivisionMary Dotson, Chief, Military Construction Branch, MPMark Smith, Energy Manager, MPPatrick Holmes, Energy Manager, MPTim Smith, Base OperationsPete Green, Base OperationsBeverly Love, Contract Officer, Army Contracting CommandPortia Sampson, Contract Specialist, ACCGenevia Fontenot, Attorney Advisor

TVAGary Harris, Vice President, Industrial Marketing & Services Mary Jane Owens, Manager, Industrial Accounts Daryl Williams, Manager, Industrial Services Brent Powell, Sr. Program Manager, Federal Energy Services Program Peyton Butler, Attorney, Office of General Counsel Kaye Murphey, Business Support Representative Ashley Thrasher, Contracts Manager, Supply Chain Tim Campbell, Program Manager, Industrial Services Andrew Harris, Program Manager, Power Customer Contracts Rick Penter, Project Manager Ron Westmoreland, Project Manager Randy Summers, Project Manager

Contract SupportBruce Fisackerly, Advanced Energy Consultants, Inc.Robert Staples, Johnson Contractors, Inc.Lee Palmer, Allen & Hoshall, Inc.Richard Crowe, REA, Inc.Donnie Allen, General Manager, CCI Group Jeff Thrower, QAE, CCI GroupMark Hardiman, System Admin, CCI GroupMerlon Largen, Project Liaison, CCI Group Chris Hester, Wolf Creek, Base Maintenance

Page 23: FEDERAL UTILITY PARTNERSHIP WORKING GROUP SEMINAR · Utility Energy Service Contract – Way Ahead D.O. # North Loop 2 (19 Bldgs) • Cost $ 6.9 million • Annual savings $ 941 K

Questions?