Track 11, Session 4 -- Campus Utility Distribution Systems ESCO Contract Vehicle approaches to implement VA requirements at VISN 21 Steven T. Smith, Senior Director, Engineering Federal Energy Systems Group August 16, 2017 Tampa Convention Center Tampa, Florida
Background Energy Systems Group Corporate Overview Founded in 1994, ESG is a dedicated Energy Services Company or ESCO. It s all we do. Focused on self funding infrastructure improvements and renewable/energy projects Wholly owned subsidiary of Vectren Corporation (NYSE: VVC) with 300+ employees nationwide Provide energy solutions to Federal facilities, Utilities, and the HUGS markets (Hospitals, Universities, Governments and Schools) Successfully delivered over $2.5 Billion in energy improvements to over 375 Customers Product and fuel neutral Federal Business Unit Implemented more than $1B in Federal Projects Recognized leader in the Federal arena in the UESC (Utility Energy Services Contract) program 18 UESC Utility master agreements serving 30 utilities Acquired Chevron Energy Solutions: Federal Business Unit in April, 2014 Design, Build, Operate, and Maintain several significant energy supply-side projects Performance Contracting 475 performance contract project awards in more than 26 states and the U.S. Virgin Islands Federal Contracts include: Army Corp of Engineers ESPC IDIQ ($50M) DOE ESPC IDIQ ($179M) Army MATOC IDIQ ($4.5M - Biomass) MILCON ($46M) GSA Schedule (7 Active Special Item Numbers) Picatinny Arsenal ESPC IDIQ ($56M) Enhanced Use Lease ($267M) 4 projects funded through EUL contracts 2
Unfunded Mandates Government leadership grapples with energy-related goals and mandates Energy Independence and Security Act of 2007 EO13423 Strengthening Federal Environmental, Energy and Transportation Management Energy Policy Act of 2005 EO 13514 Federal Leadership in Environmental, Energy, and Economic Performance VA Directive 0012 - VA Investments in Energy and Water Efficiency and Renewable Energy Presidential Performance Contracting Memorandums Funding??? Compliance Resiliency Leadership Energy Efficiency Reduce waste Modernize infrastructure Energy surety Budgets squeezed and cut Future funds uncertain Unfunded mandates 3
UESC & ESPC Defined A Utility Energy Services Contract (UESC) and an Energy Savings Performance Contract (ESPC) are types of Performance Based Contracts offered to Federal installations to support their needs and missions on their side of the meter. UESC Direct / Streamlined Contract with the Serving Electric or Natural Gas Utility Through: Utility Area Wide Agreement (Administered by GSA) Basic Ordering Agreement Site-Specific UESC Agreement (Administered by Site Acquisitions) Efficient & effective tool to implement: Supply Side initiatives Demand Side energy and water efficiency projects Renewable energy initiatives Projects from $10K to over $100M that are either financed or funded. DOE ESPC The new DOE IDIQ contract was just awarded to 21 ESCO contractors in April, 2017 Installation specific competitive selections are initiated by Notices of Opportunity (NOOs) being sent to all ESPC IDIQ contract holders. Selection processes and criteria vary by agency. ESCO conducts comprehensive energy audit and identifies energy efficiency opportunities. Awarded ESCO arranges third-party financing designs and implements project. All cost savings accrue to the agency ESCO guarantees energy cost savings will exceed annual finance payment for the project over the term of the contract (up to 25 years) via mandatory Measurement & Verification (M&V) reporting. 4
UESC & ESPC Breakdown UESC ESPC Budget Savings Budget Savings Utility O&M ESCO ESCO VA Energy & Water Operating Expenses Subs VA Energy & Water Operating Expenses Subs VA Energy & Water Operating Expenses 5
Balancing Funding Vehicles Holistic Approach Strong CAM Support Dedicated Energy Team Broad vision Desire to lead VA in energy savings Collaborative efforts Willing industry partners Focused on the correct solution for the Government 6
VISN 21 - Palo Alto Medical Center ESPC VA Palo Alto Medical Center Contract Type & Value DOE ESPC $10.7 Million Annual Energy and Operational Savings over $880,00 Scope Multi-facility energy efficiency upgrades Repair & Replacement Technologies Two new 4,160V, 1,055-ton, high-efficiency water chillers with variable speed drive (VSD) capacity control Apogee EMCS system expansion 8,836 new energy-efficient light fixtures and LED lamps in nine buildings 565 new wirelessly-monitored LED exit signs 24 thermostatic radiator valves 508 new occupancy and daylighting sensors New solar tinting film to the interior glass surface of 434 existing steel-framed windows 25 insulated valve blankets for existing large steam valves 16 new steam traps 7
VISN 21 Multi-Site UESC with PG&E Contract Type & Status Scope UESC with Pacific Gas & Electric Presently in Development Multi-Site, Multi-Facility energy efficiency upgrades at 7 Sites throughout VISN 21: Fresno Livermoore Martinez Mather McClellan Menlo Park San Francisco Technologies (Current Bundles) Boiler Upgrades / Replacement HVAC Upgrades / Replacement Chiller Upgrades Steam Trap Replacement Steam Trap Monitoring Systems Steam/HW/CW Pipe Insulation Fume Hood Installations Lighting Improvements GSHP Controls Upgrades IT Closet Upgrades 8
VISN 21 Multi-Site UESC with PG&E ECM list for Expanded Future Bundles Stationary Energy Storage Continuous Commissioning Predictive Diagnostics Fume Hood Sash controls Refrigeration Improvements Data Center Upgrades Irrigation Upgrades Solar PV Fuel Cells Combined Heat and Power 9
Conclusion Factors for Success Strong partnerships and trust Focus on the end customer Willingness to compromise Communication Communication Communication Contact: Steven T. Smith Senior Director, Engineering - Federal stsmith@energysystemsgroup.com C: 216-403-7020 10