Session: Third Party Funding Options Utility Energy Service Contracts (UESCs) Karen Thomas National Renewable Energy Laboratory (NREL) August 11, 2016 Rhode Island Convention Center Providence, Rhode Island
DOE Federal Energy Management Program Mission FEMP works with key individuals to accomplish energy change within organizations by bringing expertise from all levels of project and policy implementation to enable Federal Agencies to meet energy related goals and to provide energy leadership to the country. 2
Presentation Outline The Reason The Authority The Implementers The Money The Closer The Process The Resources 3
The Reason UESCs Offer a Proven Solution Leverage incentives including financing Meet legislative and executive energy goals and mandates Streamline contracting with established source Take advantage of utility expertise and experience Limited Congressional appropriations Appropriate for a wide range of projects and facilities, including leased space 4
The Authority 42 USC 8256 2017 will mark 25 years of authority to enter into UESCs with your serving, franchised utility (electric, natural gas or water) 10 USC 2913 Department of Defense s UESC authority also authorizes DoD agencies to accelerate the use of UESCs with gas and electric utilities UESC Task Orders Terms up to 25 Years per GSA Legal Opinion and DFARS 241 5
The Implementers The regulated, franchised Utility is always the prime contractor on the UESC with the Federal government Utility companies frequently competitively select ESCO partners to serve as implementers of their UESC programs UESCs are open book contracts, and the agency must review the utilities proposal to ensure the best deal for the government. 6
The Money Utilities most often enter into agreements with Third Party Financiers to provide the funding for UESCs since outside financing helps ensure the lowest financing. Utilities obtain three bids from financiers to ensure the best rate is obtained for the UESC project An assignment of claims may be issued so that the agency pays the finance company directly, reducing the cost to the agency 42 USC 8253, Section 432 allows agencies to use available appropriations or financing to implement their UESC projects. Agencies may use 100% appropriations, 100% financing or any combination of the two to achieve their project goals. 7
The Closer Energy projects implemented at Federal facilities are a team effort, however, the projects do not award without the contracting officer s signature. Contracting Officers are responsible for making sure the contracts follow appropriate regulations and obtaining the best deal for the government. Heed this Advise: Obtain the contracting officer s involvement early! 8
UESC Task Order Award Process Projects awarded in about 6 month 12 months Energy/cost savings commence when measure is operational
Contacts David McAndrew, Utility Program Manager, FEMP David.McAndrew@ee.doe.gov Karen Thomas, National Renewable Energy Laboratory karen.thomas@nrel.gov Porsha Porter, Corps of Engineers Huntsville Center porscha.n.porter@usace.army.mil 10
FEMP Assistance FEMP UESC team includes FEMP Project Leader, NREL, ORNL, PNNL including UESC and technology experts FEMP Financing Specialists and Project Facilitators Direct project support is provided as needed UESC training and resources Advise and consult or in depth support See FEMP s UESC Guide: A Resource for Contracting Officers Working on UESC Projects http://www.energy.gov/eere/femp/downloads/utility energy services contractsguide 0 11
Upcoming Meetings and Trainings Fall 2016 Federal Utility Partnership Working Group Seminar, November 2 nd and 3 rd, hosted by Puget Sound Energy in Bellevue, WA (Advanced UESC workshop, October 31 st and November 1 st ) See FEMP Website for Dates Place UESC Task Orders with the GSA Areawide Webinar See FEMP Websites for Dates UESC Training for Utility Representatives 12
Questions? Karen Thomas UESC National Laboratory Lead National Renewable Energy Laboratory Federal Energy Management Program U.S. Department of Energy karen.thomas@nrel.gov 202.488.2223