UESCs and VA s Performance Contracting Program Lara Spader Department of Veterans Affairs August 17, 2017
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1 What the Government Needs from the Utility UESCs and VA s Performance Contracting Program Lara Spader Department of Veterans Affairs August 17, 2017 Tampa Convention Center Tampa, Florida
2 Agenda Resiliency and reliability issues for VA VA s energy performance contracting program Challenges Needs UESC project highlights 2
3 Resiliency considerations for VA Mission critical facilities: VA facilities that are required to continue operation during a natural or manmade extreme event or a emergency. Resiliency measures: N+1 redundancy and emergency power supply Duel fuel capability and reserve capacity Relocation of critical systems from flood-risk areas Distributed generation with islanding capability Solar with battery storage Flooding of VA New York Harbor Healthcare System s Manhattan facility after Hurricane Sandy Failure of electrical switches, mechanical systems, steam and the fire-suppression system 3
4 Reliability considerations for VA Aging infrastructure and building systems 1,700 VA properties with historic protections Facility condition assessment deficiencies Maintenance backlog (D s and F s) has been steadily increasing Appropriated funding has been insufficient to reduce backlog Correction costs have also been increasing Prevention is less expensive than correction Dependency on aging grid infrastructure 4
5 VA Energy Performance Contracting Overview: Awarded and Developing Portfolio (000 s) $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $356 million Awarded $450 million In development $800 million potential savings from projects in development $400,000 $200,000 $0 $642 million expected savings from awarded projects medical centers 36 M sq. ft. upgrades $26 M annual expected savings 42 medical centers ~ 41 M sq. ft. upgrades ~ $31 M annual potential savings AWARDED IN DEVELOPMENT 5
6 Awarded Contract Breakdown Award Value by Contract Type Number of contracts $62 M (17%) 5 (31%) $294 M (83%) 11 (69%) ESPC UESC ESPC UESC 6
7 Performance Contracting Program Challenges Declining program budget impacts ability to fund project support Third-party project facilitators Construction management and commissioning oversight Energy audits and retrocommissioning that drive new projects Hiring and retaining VISN energy managers and facility energy engineers who manage projects as technical leads Position downgrading has increased turnover Non-energy duties can create capacity constraints Vacancies and bandwidth can lead to delays Coordination of shifting requirements New directives and design requirements New IT security requirements Performance Assurance could improve assurance 7/18/2017 Predecisional -- Draft Energy Exchange: Connect Collaborate 7 Conserve
8 What VA UESCs Needs from Utilities Balance shifting priorities during a transitional period within VA Provide stronger performance assurance Enhance access to resiliency measures Address reliability vulnerabilities Creativity, flexibility, and patience 8
9 Project Highlight - VISN 6 UESC Hampton Awarded in December 2014 with Dominion Power and ESG for $11.5 million Projected to save over 63,500 MMBTU and $884,000 annually for VA Includes lighting retrofits, water conservation, AHU UV lights installation, boiler plant upgrades, steam system upgrades, controls upgrades, HVAC upgrades, electrical upgrades, compressed air upgrades, renewable solar hot water, and chapel window repair/insulation. Installing new magnetic bearing chiller Restoration of historic chapel windows Upgrade to LED lighting 9
10 Project Highlight - VISN 2 UESC Northport Cooling towers failed in April 2015, bringing chillers, condenser water pumps and cooling towers offline VA has needed to rent temporary chillers until repair complete Awarded in July 2016 for $12.6 million with National Grid and ConEdison Solutions Projected to create $1.1 million of annual savings and address critical infrastructure repair Construction will be complete in October 2017 Installing new cooling towers 10
11 Contact Information Thank you Lara (Gast) Spader Program Manager, VA Energy Performance Contracting 11
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