Malcolm Woolf - Director, Maryland Energy Administration; Energy
Advisor to Maryland Governor, Martin O'Malley
The mission of the Maryland Energy Administration (MEA) is to
promote affordable, reliable and clean energy. In 2007, Governor
O'Malley launched the EmPOWER Maryland initiative that calls for a
reduction in statewide peak demand, as well as overall statewide
energy consumption, of 15% by 2015. This MEA-led initiative has
opened the door to many new and effective programs. Already, the
peak demand goal has led Maryland utilities to develop binding
programs to reduce peak demand by 1,951 MW by 2011, which is equivalent
to the output of more than 3 power plants. Statewide savings are
expected to reach roughly $6 billion.
Energy Performance Contracts are a key vehicle for the state
government to reduce its building's electricity consumption.
Maryland is compiling a robust building by building database of
energy consumption, allowing administrators to identify where
resources need to be allocated to reduce consumption. Currently,
there are 5 pre-qualified energy service companies (ESCOs) under the
State's indefinite delivery contract. These ESCOs develop and
implement energy efficiency and guaranteed savings programs in order
to assist State agencies in achieving mandated reductions in energy
consumption. Maryland expects to issue another request for proposal in the near future in order to update the list of ESCOs
qualified to work in State facilities under the State's indefinite
delivery contract.
Maryland is poised to maximize its influx of stimulus funds. It
is looking to increase funding for its current EPC loan program from
$1M per year to $8M over two years. In addition, Maryland
participates in the Regional Greenhouse Gas Initiative and is
introducing a new program designed to encourage energy efficiency
retrofits in commercial and industrial buildings. The program was
originally funded at $200,000 per year but will be increased to $7M
over two years with stimulus funds. While use of EPCs is not
mandatory for this program, the administration feels that EPCs are
cost-effective delivery mechanisms and sees opportunity for ESCOs to
help implement this program.
One of the major developments during the first quarter of 2009
has been the efforts to transform the federal government initiatives
to promote energy efficiency and renewable energy from policies into
actual projects and programs and to move the stimulus funding into
the field. Another major development is the House consideration of a
climate change bill initially introduced by House Energy and Commerce Chair, Henry
Waxman and Congressman Ed Markey. The markup of the bill occurred on May 18th, with a
floor vote anticipated in late June or early July. The size of the
bill, the breadth of its focus, and the huge number of prospective
amendments expected to be introduced suggest that the process may
not move as swiftly as proponents of the bill currently expect.
The issues of central importance to our membership that have
emerged from passage of the American Recovery and Reinvestment Act
and the consideration of the American Clean Energy and Security Act
of 2009 (ACES) center around the decision-making process of the
states and local governments regarding utilization of the stimulus
funding, the choice of existing delivery channels to funnel the
money to institutional customers, the procurement requirements for
allowing state and local governments to mix the allocated monies
with private investment monies through ESPCs, passage of an Energy
Efficiency Resource Standard (EERS), and the allocation of GHG
allowances for energy efficiency.
Another challenge is that DOE and OMB have not made the SEP plans
available to the public. Neither agency has responded to direct
requests from the national coalition to post the plans on the DOE or
Recovery.gov websites. A few states have made their plans available
on their own websites, but most states have not. A website created
by a Seattle company -
www.recovery.org
- has provided access to county and city project data not available
on the government websites. We expect a number of states will have
public building ESPCs as major elements of their energy efficiency
programs and that some will need help getting programs organized and
implemented in the accelerated ARRA timeframe. We are in the process
of establishing target counties and cities and have developed
informational pieces about the added value of using ESPCs to
disseminate stimulus monies for distribution.
The Senate discussion is at an earlier stage than the House
deliberations. In the Senate, the RES and EERS are still being
considered separately, and overall have less support than in the
House. The coalition anticipates making a renewed push for a higher
level of EERS in the Senate at the appropriate time.
The first major debate is about how the initial allowances will
be distributed. In the current bill, 85% of the allowances will be
given to industry and 15% will be auctioned. The Obama
administration had proposed that all allowances be auctioned with
proceeds used to fund a middle class tax cut. Industries (including
utilities) that emit large amounts of CO2 argued that forcing them
to purchase allowances at auction would increase the cost of energy
in a recessionary environment and so they should be granted
allowances at no cost. Democrats defeated a Republican amendment to
ACES that would have required all allowances to be auctioned.
Republicans argued that free allowance distributions to industry
represent corporate welfare and will result in higher energy costs.
Other groups that want to eliminate the bill's allocation of free
allowances include a coalition of state regulators, public power
entities, and consumer groups who believe that the value of those
allowances will not be passed on to ratepayers in the form of lower
energy costs.
Currently the legislation calls for energy-intensive,
trade-exposed industries to receive 15% of allowances in 2014
through 2025 on a declining basis. The automobile industry will
receive 3% of allowances from 2012 through 2017 and 1% of allowances
through 2025 to support development of clean vehicles. Oil
refineries will receive 2% of allowances through 2026. Only 15% of
the total allowances would be auctioned and the proceeds distributed
to help low-income consumers with rising energy costs. Beginning in
2026, any unallocated allowances will be auctioned and the proceeds
returned to consumers on a per capita basis.
The House Energy and Commerce Committee eventually reported the
American Clean Energy and Security Act of 2009 out of Committee by a
33-25 vote before Congress left for the Memorial Day recess. ACES
amendments adopted include the creation of a "clean energy bank" to
fund clean energy technologies that are seen as difficult to finance
because of a higher risk profile and the establishment of a "cash
for clunkers" program to encourage consumers to turn in old cars and
purchase more fuel efficient vehicles.
The second major debate is about the use of the proceeds from the
allowance auctions. NAESCO and the national coalition are urging
that a substantial portion of the proceeds be invested in energy
efficiency programs because EE programs produce CO2 emissions at a
negative net cost. Consumer groups and advocates for low-income
ratepayers insist that most of the proceeds should be rebated to
ratepayers. Advocates for energy intensive industries would like to
see a substantial portion of the proceeds used to help these
industries defray the cost of implementing emissions reduction
technologies.
Perhaps the most exciting development at the state level is the
flurry of activity related to the receipt and dissemination of the
federal ARRA funding, which will invest about $11 billion in state
and local government EE programs in the next two years. But while
the states and local governments are formulating their ARRA
implementation plans, a number of states are proceeding with
instituting or expanding ratepayer-funded EE programs. Highlights
are summarized below.
NAESCO welcomes the following new members.
Industry News
The California Sustainability Alliance Issues New Report on Real
Estate Market Transformation Through Green Leasing
The California Sustainability Alliance, a market transformation
program managed by Navigant Consulting, Inc. has released a report
entitled "Greening California's Leased Office Space: Challenges
and Opportunities." The report provides information about the
pivotal role green leasing plays in achieving the resource
efficiency, environmental, and societal benefits of green buildings;
and outlines the changes that need to be made to policies, programs,
and practices in order to establish green leasing as a standardized
practice in California.
The report found that the primary barrier to greening California's
commercial office space is the fact that ninety percent of all
office space in California is leased. Under many lease transactions,
owners are not economically motivated to invest in building
retrofits because the economic benefits of such retrofits flow to
the tenants. The report also details how the leasing process can be
leveraged in order to help willing owners and tenants enter into a
"green lease". The report further recommends a broad range of
strategies for accelerating green leasing in California - from
establishing consistent statewide standards and definitions of
"green", to documenting and publicizing the costs and benefits of
green buildings (also known as the green building value
proposition), implementing building labeling, and modifying state
and local policies, ordinances and utility programs to recognize the
different needs and interests of landlords and tenants under various
types of lease structures.
To download a copy of the report, visit the California
Sustainability Alliance's website:
www.sustainca.org.
Back to Top
Policies Needed to Improve Energy Efficiency, Revive Economy in
Southeast U.S.
Energy efficiency policies in the Southeast U.S. can help reduce
electricity use by more than 10 percent over the next six years -
saving the same amount of power generated by more than 30 coal-fired
power plants, according to a report released by the World Resources
Institute (WRI), the Southeast Energy Efficiency Alliance (SEEA),
and Southface. According to the report, "Power of Efficiency"
which is the second report in a three-part series about energy
opportunities in the Southeast United States, energy efficiency
savings can be captured in the near future with prompt policy action
by states. For instance, updating and enforcing energy codes for
residential and commercial buildings will save consumers money and
drastically reduce energy demands.
Several examples from the region offer good starting points for
broader efficiency efforts. One example noted in the report is a
program in Virginia that offers a tax credit for developers who
construct high-efficiency buildings for low-income residents. Data
and billing information showed that these residents reduced their
energy costs by more than 25 percent and saved an average of 15
percent on total monthly utility bills.
The authors found that tax credits, loan programs or other financial
incentives that reward both utilities and consumers for energy
savings are some of the best methods to relieve initial cost hurdles
and provide long-term economic savings.
To view the full report, please
click here.
Back to Top
Study: Semiconductors Are Now the Driving Force Behind U.S. Energy
Efficiency Gains
According to a new study by the American Council for an
Energy-Efficient Economy (ACEEE) titled "Semiconductor
Technologies: The Potential to Revolutionize U.S. Energy
Productivity," semiconductor technologies are so essential to
advances in energy efficiency gains that the U.S. economy could
expand by more than 70 percent through 2030 and still use 11 percent
less electricity than it did in 2008. Between now and 2030,
electricity bills could be reduced by $1.3 trillion assuming that
the right investments and policies are in place, eliminating the
need by the end of the period for 296 power plants.
The ACEEE report outlines an investment model to achieve the most
from semiconductor-enabled energy efficiency. The report estimates
these investments could begin with a modest $7.1 billion of
incremental investments in 2010, rising to as much as $28.7 billion
by 2030. Cumulatively, the market for these new technology
investments is about $472 billion over the period 2010 through 2030.
But there is a hefty return on these investments. The report
estimates the electricity bill savings average just over $61 billion
over that same period of analysis, producing a cumulative
electricity bill savings on the order of $1.3 trillion over that
same time horizon.
Since their emergence in the 1970s and widespread use in the 1990s,
semiconductors have been an essential tool for energy efficiency.
Energy solutions that are described as "smart" - from smart
buildings to smart appliances to the Smart Grid - have semiconductor
sensors to measure temperature or other variables, communications
chips to receive and transmit data, memory chips to store the
information and microcontrollers, microprocessors, and power
management chips to adjust energy loads.
The full ACEEE report is available online at
www.aceee.org.
Back to Top
IEA Expects Energy Use by New Electronic Devices to Triple by 2030
but Sees Considerable Room for More Efficiency
The International Energy Agency (IEA) calls on governments to
implement policies to make electronic devices such as televisions,
laptops and mobile phones more energy-efficient. According to a new
IEA publication, Gadgets and Gigawatts, the number of people
using a personal computer will soon pass the one billion mark.
Electronic devices currently account for 15% of household
electricity consumption but their power consumption share is rapidly
rising. The report states that without new policies, the energy
consumed by information and communications technologies as well as
consumer electronics will double by 2022 and increase threefold by
2030 to 1700 Terawatt hours (TWh).
The authors of Gadgets and Gigawatts argue that electricity
consumption from residential information and communications
technologies and consumer electronics devices could be cut by more
than half through the use of the best available technology and
processes which are currently available. This would slow growth in
consumption to less than 1% per annum through 2030. This level of
energy saving represents a reduction to consumer energy bills by
over $130 billion in 2030 and the avoidance of 260 GW in additional
power generation capacity.
The report concludes that while some of these savings can be
achieved through better equipment and components, the largest
improvement opportunity must come from making hardware and software
work together more effectively to ensure that energy is only used
when, and to the extent needed. The authors state that to deliver
these savings, strong public policies are needed particularly those
that set maximum energy budgets for each function.
Back to Top
New Study Identifies Top States and Examines Factors Associated with
Big Savings Results
The American Council for an Energy-Efficient Economy (ACEEE) issued
a new report, "Meeting Aggressive New State Goals for
Utility-Sector Energy Efficiency: Examining Key Factors Associated
With High Savings," which presents the results of a comprehensive
national review of recent accomplishments in utility-sector energy
efficiency, and an examination of key factors associated with large
savings achievements. Using a combination of expert review and an
analysis of actual energy efficiency spending and savings data, the
report identifies a set of 14 "top states" in the U.S. in terms of
utility-sector energy efficiency accomplishments. The report then
goes on to examine and discuss a wide range of factors that could
conceivably affect success in this area, and identifies factors that
appear to be associated with high levels of energy efficiency
savings.
The authors report that a number of states are achieving significant
levels of utility-sector energy efficiency savings and these savings
are increases over what was being saved earlier in the decade.
However, no states, except for Vermont, are reporting the higher
level of energy efficiency savings being called for in recent state
policy decisions. They suggest that key factors associated with high
levels of utility-sector energy efficiency achievements include
having high levels of funding for energy efficiency programs and
having strong legislative and regulatory support for energy
efficiency. The authors observe that utility energy efficiency
programs tend to produce most of their savings from lighting
retrofits and there is a strong need to increase energy savings from
a more comprehensive set of energy efficiency technologies.
The report is available at
www.aceee.org/pubs/u091.htm.
Back to Top
Member News
For a full list of all NAESCO Member News and Projects,
please
click here.
Project and Products
Johnson Controls Among Team to Announce Groundbreaking Energy
Efficiency Retrofit Project at Empire State Building
Using the Empire State Building as a test case and model, a team of
environmental consulting, non-profit, design and construction
partners - including the Clinton Climate Initiative, Rocky Mountain
Institute, Johnson Controls Inc. and Jones Lang LaSalle- unveiled an
innovative process for analyzing and retrofitting existing
structures for environmental sustainability. The project partners
used existing and newly created modeling, measurement and projection
tools in a new and repeatable process to analyze the Empire State
Building and establish a full understanding of its energy use as
well as its functional efficiencies and deficiencies. This provided
actionable recommendations along a cost-benefit curve to increase
efficiency and without harming bottom line performance.
The more than $500 million renovation program is the first
comprehensive approach that integrates many steps to use energy more
productively and is expected to reduce energy consumption by up to
38 percent and will provide a replicable model for similar projects
around the world. With an initial estimated energy efficiency
project cost of $20 million, additional savings and redirection of
expenditures originally planned in the building's upgrade program,
and additional alternative spending in tenant installations, the
Empire State Building will save $4.4 million in annual energy costs,
reduce its energy consumption by close to 40%, repay its net extra
cost in about three years, and cut its overall carbon output.
Back to Top
City of Oswego Water Department Partners with Wendel Energy
Services on Water Pump Station
The City of Oswego wanted to increase the energy efficiency at
their raw water pump station, finished water pump station, two
booster pump stations, and their coagulation process while also
upgrading their plant SCADA system. Wendel was retained as the
City's Energy Performance Contractor to provide energy
evaluations, energy grant services, design, bidding and
construction services for the rehabilitation of raw and finished
water pump stations at the Water Treatment Plant and two booster
pump stations. Actual annual savings for the project exceed
$150,000.
Back to Top
Illinois School Districts and College Partner with CTS to
Secure Grant for Energy Efficiency Improvements
Spoon River College and the Teutopolis and Prairieview-Ogden
School Districts received grant awards from the Illinois Clean
Energy Community Foundation to fund energy savings projects in
partnership with Control Technology and Solutions (CTS), which
will design and install energy efficiency improvements for all
three. CTS is retrofitting all three schools' current systems
with new technologies that will benefit the schools both
financially and environmentally, including new ground source
heat pump systems that are already under construction. The new
systems are projected to save the Teutopolis School District
nearly $25,000 a year and decrease annual fossil fuel emissions
by 90 percent, the Prairieview-Ogden District is expected to
save nearly $33,000 a year and decrease annual fossil fuel
emissions by 95 percent, and Spoon River College is projected to
save $13,000 a year and decrease fossil fuel emissions by 26
percent.
Back to Top
Honeywell Helps Central Dauphin School District Save More
Than $1 Million in Annual Utility Costs
Honeywell announced an $8.2-million energy efficiency and
conservation program for the Central Dauphin School District in
Harrisburg, PA. The program, which combines traditional facility
retrofits with several innovative conservation measures, will
help the district upgrade buildings, reduce its environmental
footprint and save approximately $1.1 million in utility costs
per year. The district will use these savings - guaranteed by
Honeywell through a 15-year performance contract - to pay for
the improvements, which will affect more than 20 facilities.
Back to Top
Butte College Projects Savings of $8 Million from Solar Project
with Chevron Energy Solutions
Butte College partnered with Pacific Gas and Electric,
Chevron Energy Solutions and Banc of America Public
Capital on this $4.2 million solar project on its main
campus. The college added 2,352 solar panels, the fifth solar
project the college has embarked on in the last four years. The
new solar panels are perched on top of a campus parking lot,
near the welding area, and will produce 545,400 kWh each year.
The new array will provide energy for seven buildings and four
greenhouses, including the child development center, physical
sciences building, mechanized agriculture, welding, agriculture
storage building, horticulture building, and heavy equipment
building.
The college received a PG&E California Solar Initiative rebate
check for $833,000. Chevron Energy Solutions designed and installed
the solar photovoltaic system. The financing was provided by Banc of
America Public Capital Corp.
Back to Top
Houston Inks $9.6 Million Deal with TAC to Improve Energy
Efficiency in Partnership with Clinton Climate Initiative
Houston has awarded TAC a $9.6 million performance contract
involving seven of the city's 271 buildings. TAC will implement
numerous energy conservation measures at these city facilities
to improve the efficiency of the buildings. For the first phase,
the city of Houston selected TAC to perform energy audits on
seven municipal buildings containing 1.2 million square feet.
Back to Top
Honeywell Introduces GHG Inventory Service
Honeywell has introduced a Greenhouse Gas (GHG) Inventory service
that measures and provides a comprehensive snapshot of an
organization's verifiable GHG emissions. The service gives
customers the information to make educated, strategic decisions
about reducing their environmental impact and creates an
accurate baseline for measuring the success of sustainability
programs. As part of the inventory, Honeywell determines
organizational, operational and temporal boundaries,
establishing criteria for all measurable data. The company then
compiles data from three scopes of emission sources.
Back to Top
Johnson Controls to Help Madison County Schools Save $5.9
Million
Johnson Controls, Inc. has entered into an energy savings
performance contract with Madison County Schools in western
North Carolina. Facility improvements and behavior modification
strategies are expected to yield more than $5.9 million in
energy savings over 15 years. The performance contract with
Johnson Controls will reduce energy use by 36 percent across all
six schools and three administrative buildings. The project's
reduced emissions will be equivalent to removing 8,250 passenger
vehicles from the road.
Back to Top
Pennsylvania State Police Pursue Energy Savings with TAC
The Pennsylvania State Police are implementing $775,000 in
facility enhancements designed to improve operations and energy
efficiency at two troop headquarters facilities. The project
includes installing a wind turbine to tap into the abundant wind
energy available in the region. TAC will complete the work as a
performance contract and guarantees a reduction in utility costs
of more than $40,000 annually when the project is completed in
June 2009.
Back to Top
L.A. Metro and Chevron Energy Solutions Unveil Nation's
Largest Solar Panel Installation at a Transit Facility
The Los Angeles County Metropolitan Transportation Authority
(Metro) unveiled a groundbreaking energy efficiency and
renewable power project with the installation of the nation's
largest solar panel system at a transit facility. The project is
a public/private partnership between Metro and Chevron Energy
Solutions. The 6,720 individual solar panels at Metro's Support
Services Center in downtown Los Angeles will generate 1.2
megawatt, or 1,200 kilowatts of renewable, emission-free power.
Along with other energy-efficient improvements, the project is
expected to cut the facility's annual $1.1 million energy bill
in half to approximately $550,000. Metro will reduce its
purchase of utility power, which is anticipated to reduce carbon
emissions by more than 3,700 metric tons, equivalent to planting
more than 550 acres of trees and taking more than 600 cars off
the road.
Back to Top
ConEdison Solutions Marks 'Earth Day' by
Recognizing Chelsea Piers and City's Other 'Green Pioneers'
ConEdison Solutions announced that Chelsea Piers in
Manhattan, the country's largest sports and entertainment
complex, now ranks as New York City's largest commercial
customer using 100-percent wind power. The Chelsea Piers
purchase of clean and renewable wind energy is executed through
ConEdison Solutions' "Green Power" electricity supply offering.
The wind energy purchase enhances the environment by offsetting
the generation of approximately 13,600 metric tons of
electricity-related greenhouse gas emissions (CO2), a quantity
equal to taking an estimated 2,850 cars off the road or planting
12,250 acres of trees.
Back to Top
The University of Central Missouri Signs $36.1 Million EPC with
Trane
The University of Central Missouri has embarked on a 24-month,
$36.1 million project that will radically reduce energy
consumption and the university's carbon footprint on the
Warrensburg, Mo. campus. Following an investment grade audit of
campus facilities to identify conservation measures, the
university's board in April 2009 approved the energy performance
contract with Trane to guide the renovation and upgrade of
campus buildings.
Back to Top
Siemens Building Technologies Awarded $7 Million Contract
at Pensacola Naval Air Station
Siemens Building Technologies, Inc. has been awarded a
five-year, $7 million contract to maintain and optimize the
building automation systems for the Navy at the Pensacola Naval
Air Station in Pensacola, Fla. The Advantage Services agreement,
which provides five full-time operators and service technicians,
covers control systems managing and monitoring the heating,
ventilation and air conditioning, lighting, utilities, fire
safety and other mechanical systems at the Mainside, Saufley
Field, Corry Station and Naval Hospital buildings on the base.
Back to Top
Company News
Kevin W. Billings Joins Lockheed Martin Energy Team
Lockheed Martin announced the addition of Kevin W. Billings to its
Energy Services team. As Director of Federal Energy Efficiency
Programs, Billings will support business development and program
operations related to Lockheed Martin's pursuit of Federal Energy
Savings Performance Contracts.
Back to Top
Retro-Tech Systems Expands its Sales and Engineering
Teams
Retro-Tech Systems added Peter Brown and John Anderson to its
RTS sales and engineering team. Brown will be focusing his
attention on ESCO sales throughout the Midwest Region of the
United States and Anderson will be focusing on lighting design
and engineering for the company's ESCO partners.
Back to Top
Siemens Building Technologies: Committed to a Greener,
Sustainable Future
As part of Siemens Building Technologies' commitment to
sustainability and environmental responsibility, the company has
been applying to its own business operations the energy
efficiency and green building sustainability practices that it
offers its customers. In the summer of 2007, the Siemens
Building Technologies Internal Sustainability Committee was
created to make sustainability part of the strategic mission of
the entire organization. Representatives from executive,
marketing, product design, procurement, manufacturing,
facilities and human resources began to examine all aspects of
Siemens Building Technologies' operations to understand first
what measures might be taken immediately to promote
sustainability, and then look at longer term possibilities to
ensure that the company's commitment remained relevant and
delivered value to the organization, its people, customers and
the community going forward.
Back to Top
Lakeland, Florida Receives Trane Energy Efficiency Leader
Award
To recognize its commitment to energy efficiency and
environmental stewardship, the city of Lakeland, Florida has
earned the "Trane Energy Efficiency Leader in Municipal
Government Award" for its sustainable energy and operational
efficiency improvements.
Back to Top
Wendel Energy Services Receives Pennsylvania ESCO
Certification
Wendel Energy Services has received their qualification from the
Pennsylvania Department of General Services as a Certified
Energy Service Company (ESCO) for Guaranteed Energy Savings
Projects. The certification permits WES to perform energy
savings performance based contracts for Pennsylvania
Commonwealth facilities.
Back to Top
ConEdison Solutions Subsidiary, BGA, Inc., Honored
by United States Postal Service
BGA, Inc., a subsidiary of ConEdison Solutions, has earned a
Supplier Excellence Award under the 2008 United States Postal
Service Supplier Performance Awards Program. The award
recognizes companies designated as "key suppliers" that
demonstrate "outstanding supply chain management performance"
and maintain "positive business relationships" with the Postal
Service.
Back to Top
Comfort Systems USA Energy Services Opens Little Rock Office
Comfort Systems USA Energy Services, a subsidiary of Comfort Systems
USA, has opened an office in Little Rock, Arkansas. In addition to
providing direct support on Energy Services projects and
complementing existing resources of Comfort Systems USA Energy
Services, the Little Rock office offers energy consulting for
customers with emphasis on green buildings, sustainability project
management, energy modeling, energy audits, energy savings
measurement and verification, turn-key energy projects, existing
building commissioning, new construction commissioning and energy
procurement consulting.
Back to Top
