Phoenix Convention Center Phoenix, Arizona Doing more with less through the GSA Areawide Contract and FEMP’s UESC program [Track Title][Session Title]

Phoenix Convention Center • Phoenix, Arizona

Doing more with less through the GSA Areawide Contract and FEMP’s UESC program

[Track Title] [Session Title]

Jeff Niesz – Pepco EnergyAugust 12, 2015

Energy Exchange: Federal Sustainability for the Next Decade2

Do More, Use Less, Meet Deadlines (no pressure) …

• Expectations and Demands on Federal Agencies and Employees are Higher Than Ever:– Replace Your Aging Infrastructure– Keep Your Tenants Comfortable– Address Your Deferred Maintenance– Reduce Your Energy Consumption– Increase Your Renewable Energy Sources

• BTW – Your Capital and O&M Budgets Have Been Cut 20% and There’s a Hiring Freeze


Federal “Thou Shalts”….

• EO 13693: Planning for Federal Sustainability in the Next Decade – March 2015– Reduce building energy intensity by 2.5% annually– Improve Data Center efficiency– Increases Federal Government commitment to

performance based contracting• $4 Billion by December 2016• President’s Performance Contracting Challenge

• EO 13514, EISA 2007, EO 13423, EPACT 2005


The GSA Areawide Utilities Contract

• Streamlined, Alternative Contracting Vehicle• Exhibits to the Areawide Used By Agencies For:– Electric, Natural Gas, Water/Sewer Service– Transmission, Distribution, Metering,

Interconnection– Energy Management Services / Utility Energy

Services Contracts (UESC’s) per EPACT 1992• 10 Year Areawide Contract Term • Agency Authorizations for Services (via Task

Order Awards) May Extend Beyond Expiration of the Underlying Areawide Contract Term


GSA Areawide Utilities Contract – Exhibit B and ESA


Energy Management Services Under the Areawide

• Flexible, Efficient, Partnered Approach • Obtain Energy Conservation Measures (ECM’s)• Typically Design-Build Method of Delivery• Schedule From ESA Executed for Each Phase

Preliminary Survey

(Appendix I)

Detailed Feasibility Study

(Schedule A)

Engineering and Design (Schedule B)

Construction and Installation

(Schedule C)

Performance Services

(Schedule D)


Preliminary Study (conducted at no cost)

Meet with Agency, Determine Facility Performance, Fiscal Concerns, and

UESC Priorities

Gather and Review Energy Usage and Facility Data, Conduct Site Visits,

Preliminary Analysis of Viable Energy Conservation Measures

Produce Preliminary Survey Report Identifying Potential Energy Conservation Measures and

Economics


Detailed Feasibility Study*

Meet with Agency, Evaluate and Confirm Viable ECMs

Thorough Analysis of Facility Including Onsite Inspections, Data Logging, and

Performance Testing

Finalize Scope of Work, Baseline, Savings, and Firm Fixed Pricing; Evaluate

Financing; Qualify and Competitively Select Subcontractors

Produce Detailed Feasibility Study with Final Cost and Savings Information

(for Go/No Go Decision) * May Require Appropriations for Cost of DFS


Sampling of ECMs You Can Accomplish through UESC


Implementation (Design and Construction)

• Execute Sequentially or as Design-Build• Much Depends on the Extent of DFS Effort• Other considerations/variables:– SHPO, CFA and NCPC in D.C.– Small Business Contracting– Mission, Seasonality, Master Plan– Permitting, EIS, etc.– Funding Sources (financed, funded, grants, utility

rebates, or combinations thereof)


UESC Financing

UTILITY/ESCO

TRUSTEE

LENDER

ESA

ECMs

Purchase Agreement

Contract Payments (Debt Service / O&M Payments)

Purchase Price Assignment of Payments

FEDERAL AGENCY (CUSTOMER)

O&M Payments

Some agencies use full or partial appropriations. If a full appropriation is not available, then:• Compete financing among industry leading financial institutions• Prepare SFO and IDS (similar to ESPC process) with recommendation• Finance rate = Average life like term treasury plus spread• Lock in rate commensurate with award, fixes cash flows for term• Enhance value by maximizing all available incentives and rebates

Energy Exchange: Federal Sustainability for the Next Decade

UESC In Action – U.S. Department of State

Highlights of Approach and Results

HST Headquarters Building undergoing phased renovation – includes steam to HW conversionCompleted Phase I as an ESPC Task Order – wanted to consider alternative options for Phase II, but use as basis of designConsidered ESPC, as well as both UESC providers for the steam conversion of 18 remaining HPACs with condensing HW boilers, DHW, Controls; Engaged GSA and NREL for supportPepco Energy offered a competitive, flexible and responsive solution to support complex scope and very aggressive scheduling requirements (MUST complete by Oct 2014 for heating season)Collaborated to order equipment at 35% design to achieve scheduling needs, obtained necessary SHPO/NCPC/CFA approval4 months from PA to award of $12M UESC task order with 3rd party financing, project delivered on time, on-site CM team throughoutSavings are guaranteed, M&V provided for entire term

O&M training conducted through on-site sessions with OEMs

Currently developing Phase II at HST and new task order at SA-1

Crane Lift of 1 of 9 New Condensing HW boilers (scheduled over weekend)

3 New Domestic Hot Water Heaters


UESC In Action – National Institutes of Health


NIH in Bethesda, MD is the worlds largest medical research facility with mission critical needs around the clockPepco Energy first engaged NIH in 1998 with the UESC program

Over 20 task orders completed through the present, valued at over $75 million – design/build ECMs and on-site O&M servicesTypically begin as a Preliminary Assessment followed by an IGA

Showcase Project: - 23 MW CHP project included construction of new building and 80 MVA Substation, installation of a campus-wide SCADA, and the provision of on-site O&M services (just renewed for an additional 10 year term) – Received CHP Energy Star AwardOther ECMs designed and installed throughout the campus include ECMS, high efficiency lighting and lighting controls, water conservation, VFDs, PC Power Management, and PV SystemOn-site CMs, integrated team approach and best fit subcontractors support successM&V varies by task order and is typically FEMP A with the exception of the CHP which is based on availability, production and heat rate.

23 MW CHP Plant

On-site O&M Provider

Demonstration PV Project at the Children’s Inn


UESC In Action – U.S. Department of Energy


ARRA funded UESC

370.76 kW (DC) photovoltaic system

~500,000 kWh produced in 2014

Carport consisted of 234 and ground mount 1,378 Unicor, 230W solar modules.PV Powered 260kW and 50kW inverters.

Schletter FS Pile Driven Racking and Baja Canopy with DPW rails

Reduces carbon dioxide emissions by 1,650 metric tons each year

Addressed PV panel warranty issues promptly and seamlessly

New UESC task order being developed primarily for new central boiler plant and LED lighting. Will meet PPPC requirements because of the performance assurance that will be included.


Is UESC Good For My Agency?

• Probably Yes! Ask Yourself:• Is my Agency Underfunded and Behind on

Energy Goals? Resource Constrained?• Is UESC Offered by my Serving Utility(ies)?• Have Agency Personnel (Particularly

Contracting) Completed UESC Training?• Would my Agency Benefit from New HVAC

Equipment, Building Controls, and Otherwise New, Innovative Energy Saving Technology?


Thank You!..... Any Questions?

Contact Information:

Jeff NieszSenior Director, Federal ProgramsPepco Energy [email protected]

mailto:[email protected]

Documents

Phoenix Convention Center Phoenix, Arizona Doing more with less through the GSA Areawide Contract and FEMP’s UESC program [Track Title][Session Title]