Optimizing the Existing Building Cx Process:
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1 Optimizing the Existing Building Cx Process: Integrating EBCx into ESPCs Lia Webster, P.E. Senior Engineer Portland Energy Conservation, Inc.
2 AIA Quality Assurance Learning Objectives 1. Identify ways a provider/owner can maximize the benefits of performance contracting by incorporating existing building Cx at the onset of the project. 2. Understand the challenges around including existing building Cx with performance contracting and how it can improve the effectiveness of both projects. 3. Review the current legislative drivers of existing building commissioning in the federal sector as well as current guidelines.
3 Terms: EBCx = RCx The Building Commissioning Association s definition: EBCx: a comprehensive term that encompasses retro-commissioning, recommissioning and ongoing commissioning Federal Government Recommissioning & Retro-Commissioning
4 Presentation Overview Federal drivers of EE and EBCx Legislative background Performance Contracting for Federal facilities Understanding the ESPC process Integrating EBCx into ESPCs Timing, approach, persistence Existing guidance Recent projects Lessons learned What s next Current legislation
5 Federal Drivers of EE & EBCx Legislative mandates for energy conservation at Federal Facilities: National Energy Conservation Policy Act Energy Policy Act of 1992 EPACT 2005 EO EISA Recovery and Reinvestment Act American Clean Energy and Security Act of 2009?
6 Funding Federal Energy Projects 4 primary funding mechanisms: Appropriated funds from Congress Energy Savings Performance Contracts (ESPC) - $2,300 million invested projects Utility Energy Services Contracts (UESC) - $600 million invested - 45 utilities + Energy Incentive Programs - Utility energy efficiency & demand response programs Federal Energy Management Program (FEMP) DOE programs to help Federal agencies manage energy
7 Energy Savings Performance Contracts Federal ESPC mechanisms: DOE s Super ESPC - $1,300 million invested ~ 12 Energy Service Contractors (ESCo) Army ESPC Air Force ESPC IDIQs format: Indefinite Delivery Indefinite Quantity Base contract Defines process, roles and responsibilities, reporting formats Pre-approved contractors
8 Super ESPCs Year Project Count Project Investment Contract Price Guaranteed Cost Savings $6,602,089 $15,018,137 $17,188, $40,934,613 $94,431,913 $95,513, $62,055,135 $135,619,538 $136,639, $121,285,179 $276,057,256 $272,624, $96,939,177 $313,744,546 $314,251, $251,765,121 $543,487,546 $553,366, $22,319,540 $52,330,073 $54,835, $72,184,223 $198,707,333 $199,154, $164,351,251 $413,254,189 $418,288, $144,385,872 $353,891,202 $358,500, $244,335,445 $594,168,698 $607,671,372 Grand Tot 195 $1,227,157,645 $2,990,710,431 $3,028,034,572
9 What Is Performance Contracting? Building owners fund capital improvements through energy savings Capital investment is paid back over time from cost savings A service provider contractually guarantees a project s technical performance / energy savings Energy Services Company (ESCO)
10 Cash Flow for ESPCs Financing costs Ongoing services Possible issues: Load Creep Degradation of savings Equipment life Up to 25 years
11 Energy Services Companies (ESCOs): Provide turn-key services Develop, design, and finance energy efficiency projects Install the equipment Measure, monitor, and verify the project's energy savings Assume the risk that the project will save the amount of energy guarantee Repaid through the avoided energy costs
12 Typical ESCO Measures: Upgrades Focus on equipment replacement / capital improvements Lighting Energy Management & Control System (EMCS) Boilers Chillers Variable Speed Drives (VSDs) Motors
13 EBCx Findings: Operational Issues Equipment scheduling Equipment setpoints & staging Simultaneous heating and cooling Economizer operation Design / installation issues EBCx looks deeply for root cause and solutions
14 Difference between EBCx and ESPCs EBCx: Emphasizes low cost energy improvements Does not typically recommend retrofits Focuses on system integration Relies on measurement and functional testing Has more emphasis on nonenergy benefits, training
15 Processes are complementary! ESPC Scoping Initial Proposal Notice of Intent to Award Investigation EBCx Scoping Investigation Contract Award Design & Implementation Commissioning Hand-off &Training Ongoing M&V O&M Implementation Commissioning Hand-off &Training Ongoing O&M
16 EBCx + ESPC Adds work, cost, and time to ESPC during investigation phase Viable EBCx measures = 1 ECM Requires additional expertise from contractor EBCx adds significant complexity Produces an additional report & information EBCx report should include all deficiencies How systems are currently operating Results in deeper, more comprehensive measures, and useful operating documentation New sequences of operation More successful projects!
17 Federal ESPCs including EBCx Harold Washington Social Security Building
18 An Great ESPC + EBCx Project! Project 690,000 sq ft 10 story all electric building Constructed 1978 Controls upgrade 1995 Customer requested EBCx evaluation in initial project scoping Knew they had a problem Internal project champion Pushed and drug others along
19 If only they were all this good Overly complex systems Didn t fully understand the systems Original design docs Complete drawings were available Some obvious opportunities Complex sequences - some were overridden Design intent not understood Insufficient controls infrastructure Extensive comfort complaints Talented engineering team EBCx experienced firm Calibrations; Point to point (5,000 of 14,000) 2+ months on site Extra foot work to overcome challenges Unbiased controls specialists
20 Project Findings Chiller plant improvements Abandon ice making / glycol loop Re-instate water-side heat recovery ECM design was dramatically impacted by EBCx! Retro-Commissioning Controls communications upgrade Implement CO2 ventilation controls Re-instate air-side heat recovery VAV set-points Optimized schedules / start Lighting controls Lighting Retrofits Controls
21 Keys to this Successful Project! FEMP provided expert support Utilized DOE staff and guidance Excellent documentation and training was provided New sequences of operation for all systems Ongoing training Included on-going Cx as part of the contract Good M&V and O&M oversight plan ESCO checked systems weekly Automated data collection with flags Agency supervised 3 rd party contractor Good relations = additional work
22 FEMP s Guidance Existing Guidance from DOE: financing/superespcs_mvresou rces.html 1) Example Retrocommissioning Scope of Work 2) Including Retro-Commissioning in Federal Energy Saving Performance Contracts Timing, M&V, Pricing, Contractual
23 Pitfalls to Avoid Clear scope of work not provided early in project development phase Large campus without focused data collection No EBCx champion Provides coordination and buy-in Insufficient baseline data collection Basis for savings estimates/ guarantee Insufficient EBCx savings to fund project Costly controls upgrade is not EBCx Ongoing EBCx activities not included Annual M&V is not EBCx
24 Benefits of EBCx as part of ESPC EBCx Saving buy-down capital improvements Paybacks can reduce contract length Historic energy baseline is unaffected Baseline has more robust documentation Deeper understanding of systems / issues May affect scope of retrofit Integration of new equipment into old systems Prevents operational hindrances
25 Lessons Learned EBCx needs to self-pay + Scoping viable opportunities key Controls upgrades sometime sold as EBCx Increased baseline data collection improves quality of capital measures More in-depth understanding of systems May change other ECMs Persistence issues related to EBCx must be addressed Ongoing M&V activities is great mechanism Additional monitoring required for persistence Attention to EBCx improves persistence of all measures
26 Other Key Issues EBCx & ESPC Timing EBCx with ESPC won t affect baseline Funding for EBCx alone may be difficult Ongoing O&M Regular preventative maintenance Staff training M&V approaches Selecting the variables to meter and monitor Data management Balancing technical rigor with cost Documentation & Reporting Sufficiently defining the baseline Tracking performance Keeping up with facility changes
27 ESPC Excellent Vehicle for EBCx Persistence Persistence of savings Long term contract - O&M and R&R issues are major concerns for both Requirement for M&V - Provides contractor an on-going connection to project - Leverage M&V activities to ensure persistence» Often the missing element for EBCx projects
28 EISA 2007 High Performance Federal Buildings S 431 & S 432: Increases energy conservation goals Defines commissioning, recommissioning & retrocommissioning Enhances energy reporting requirements Mandates EE & EBCx opportunities assessed 25% of facilities per year, each facility at east every 4 years Excludes most facilities < 50K sq ft and all <25k Implementation within 2 years Web-based tracking cost & savings M&V of project savings Facility benchmarking
29 EISA 2007 Interpretation EBCx Requirements Assess re/retrocommissioning measures: Step 1: Initial Assessment Conduct facility walk-through - 4 to 8 hours Comprehensive data collection & analysis - Is equipment operating to spec and design intent Step 2: Detailed Re/Retrocommissioning Evaluation Efforts take from 1 to 4 days Identify operations & maintenance optimizations Capital improvements may be identified
30 EISA 2007 ESPC Related S : ESPC authorization made permanent Removes sunset provision of 2016 Removes requirements for congressional notification Allows financing flexibility Appropriated funds allowed Prevents agencies from limiting ESPC lengths Agency retains all savings Study non-building applications for ESPC
31 Conclusions Incorporating EBCx with ESPCs improves both processes Results in deeper, more comprehensive projects Importance of scoping EBCx opportunities Persistence of EBCx measures enhanced with ESPC M&V facilitates ongoing commissioning activities New legislation is facilitating EBCx at Federal facilities ESPC is most likely avenue for EBCx implementation
32 AIA Quality Assurance Portland Energy Conservation, Inc is a registered provider with The American Institute of Architects Continuing Education Systems. Credit earned on completion of this program will be reported to CES Records for AIA members. Certificates of Completion for non-aia members are available on request. This program is registered with the AIA/CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation.
33 Thank you! Lia Webster Portland Energy Conservation Inc.
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