Third Party Financing - UESC

Transcription

1 Session: [Session Title] Third Party Financing - UESC Mr. Mike Ringenberg Air Force Civil Engineer Center East (AFCEC E) August 9, 2016 Rhode Island Convention Center Providence, Rhode Island Make Energy a Consideration in All We Do

2 Utility Energy Savings Contract (UESC) UESC: a contract in which the Utility Company arranges financing, designs, implements, operates, maintains and owns infrastructure improvements that increase the efficiency of energy consuming systems Sole sourced with servicing utility company (must compete multiple servicing utilities) Financed or direct funded Takes advantage of incentive/tax rebate programs M&V not required, but may be desired Energy savings not guaranteed only equipment performance guaranteed Legal Authority: 42 USC 8256 and 10 USC Energy Exchange: Federal Sustainability for the Next Decade

3 UESC Restrictions/Limits: Financed term increased to 25 years to include construction Performance guaranteed, not energy savings Challenges: Dependent on utility interest/capabilities Focus Use: smaller scale projects, use when available and cost effective Air Force Approach for Implementation for UESC? Execution by Base Contracting Officer Must use GSA Areawide Contract if available Target smaller low risk opportunities due to lack of guaranteed savings 3 Energy Exchange: Federal Sustainability for the Next Decade

4 Air Force Process If vetting selects UESC, then we implement these procedures Gov t Team (CE, CO, JA, Customers, MAJCOM, AFCEC) develop project framework/scope Base CO releases appropriate Request for Preliminary Audit (PA) Gov t Team validates responses and CO provides written comments to Utility Utility provides requested clarification Gov t Team validates responses and CO directs Utility to proceed to Feasibility Study (FS) 4 Energy Exchange: Federal Sustainability for the Next Decade

5 Air Force Process Gov t Team reviews FS and CO provides comments to Utility Utility provides updated FS, if required with requested information Gov t Team validates FS and CO directs Utility to develop Engineering/Design (ED) Gov t Team reviews design, plans/specs & provides comments to Utility Utility addresses comments and submits final proposal Gov t Team reviews, validates and CO negotiates with Utility as necessary CO awards TO Energy Exchange: Federal Sustainability for the Next 5 Decade

6 UESC Changes How Air Force Evaluates Allowable Term by Project: Contract terms now authorized up to 25 year maximum Air Force goal is term under 15 years, however can exceed Term will be evaluated case by case Business deals that make sense Simple payback & life cycle cost are significant drivers More rigorous M&V desired as implementation cost and term increases Energy Exchange: Federal Sustainability for the Next 6 Decade

7 Performance Assurance Savings guarantee not required, however the Utility must provide technicallysound savings and cost reduction estimates Performance Assurance Utility verifies the equipment is operating as intended and at manufacturer specifications Performance Assurance Strategies Establish credible and accurate baseline Provide performance verification at start up & at the end of warranty period Provide Operations and Maintenance Provide performance focused O&M training (if applicable) M&V Preferences: Audit findings and reporting requirements have driven need for measured savings More rigorous M&V desired as implementation cost and term increases Prefer measurement (Option B&C) over modeling (no Option D) Energy savings guarantee if feasible Energy Exchange: Federal Sustainability for the Next 7 Decade

8 QUESTIONS? 8 Energy Exchange: Federal Sustainability for the Next Decade