NAESCO Newsletter
Fourth Quarter 2009
Advocacy
- NAESCO 2009 Advocacy Report
NAESCO’s advocacy work continues to expand to ensure that the
growing number of energy efficiency initiatives across the
country are cost-effective, sustainable, and offer new
opportunities for ESCOs and other NAESCO members.
New Members
NAESCO welcomes the following new members:
Upcoming Events
Website
For a full list of all NAESCO Member News,
please
click here.
Featured Articles
Interview with Christopher Seeley of the
Clinton Climate Initiative
1. Can you provide some background on the Clinton Climate
Initiative's Energy Efficiency Building Retrofit Program?
CCI’s Energy Efficiency Building Retrofit Program (EEBRP) brings
together many of the world’s largest cities, energy service firms
and financial institutions in a landmark effort to reduce energy
consumption in existing buildings. CCI works with industry,
financial, government and building partners to overcome market
barriers and develop financially sound solutions that accelerate the
growth of the global building efficiency market. CCI provides
support to building owners such as city governments, commercial
portfolio owners, schools, universities, and public housing
authorities in identifying, designing, and implementing large-scale
energy efficiency retrofit projects and brings the owner together
with the necessary contracting and financial firms for
implementation.
2. How did you come to work with the Clinton Climate
Initiative and what exactly is your role there?
I joined CCI as the City Director of Bangkok, Thailand (a C40 City
which is a group of the world's largest cities committed to tackling
climate change) and now also help to manage projects across Asia for
the Building Retrofit Program (including Tokyo, Seoul, Hong Kong, Ho
Chi Minh City, Jakarta, Singapore, Sydney and Bangkok)
3. I understand you worked with Johnson Controls to implement
energy efficiency upgrades at the International School Bangkok. Can
you describe some of the energy efficiency upgrades involved in this
project?
This project focused on upgrading mechanical systems - mainly
air-conditioning systems, as well as implementation of lighting
solutions which together represent approximately 85% of all energy
consumed across the campus. The project will reduce approximately
30% of total energy consumption and eliminate 700 tons of CO2 per
year.
4. How did the Clinton Climate Initiative come to work with
ESCOs?
Energy Performance Contracting was identified by CCI as a valuable
model for building owners and utilizes the services of ESCOs to
deliver projects. This model focuses on a delivery methodology
whereby the energy savings are contractually guaranteed by the ESCOs
and hence helps to remove direct risk on the building owner by
placing it on the ESCO.
5. On the CCI website, the benefits of Energy Service
Performance Contracting are outlined. What investments, both in the
public and private sector, do you think are needed to increase the
accessibility of this type of retrofit financing?
Both sectors can play a role in developing specific financing
mechanisms that make it easier for building owners to access funds
to encourage energy efficiency retrofits. Preferential terms may
include ease in access, high project financing values (90% and
above), long term payback periods, and more flexible collateral
requirements.
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NAESCO Updates
Advocacy
During the fourth quarter, NAESCO concentrated its advocacy
efforts on federal government energy efficiency initiatives and on
several major states that are implementing major new energy
efficiency programs or significant expansions of existing programs.
FEDERAL
At the federal level we have been working on the issues
surrounding the implementation of the American Recovery and
Reinvestment Act, the inclusion of new funding for energy
efficiency in the upcoming Jobs Bill and the development of energy
and climate legislation.
American Recovery and Reinvestment Act (ARRA)
The ARRA, better known as the stimulus bill, appropriated more than
$20 billion for energy efficiency and renewable energy programs, as
well as another $20 billion of potential tax credits. The $20
billion of appropriations is supposed to be spent very quickly, with
all funds contractually obligated in the next two years. The three
major elements of the ARRA that have the greatest potential direct
impact on the ESCO business are:
- State Energy Program (SEP) - $3.1 billion distributed
by formula to the states. Public building ESPC programs are a
major component of many state plans. All of the state plans have
now been approved, and all of the program funds have been
obligated. Plan approval, however, has been conditional for most
states. US DOE and the states are incrementally working out
procedures for state program compliance with three laws that
will affect the programs: the National Environmental Protection
Act (NEPA), the Historic Preservation Act and the Davis-Bacon
Act (prevailing wages). Consequently, very little of the program
funds have been released, and virtually no funds have been
obligated to actual projects. We now anticipate that funds will
begin to flow to projects in the first quarter of 2010.
- Energy Efficiency and Conservation Block Grants (EECBG)
- $2.8 billion distributed by formula directly to communities
with greater than 35,000 population and through the states to
smaller communities plus $400 million distributed to states and
local governments on a competitive basis. Most of the
applications from the large local governments (>35,000
population) that are eligible for direct grants have been
approved, subject to resolution of the compliance issues with
the three federal laws that affect the SEP programs. The program
plans for the grants that are to be distributed by the states to
the smaller local governments (<35,000 population) are subject
to an additional 2-4 months of review by DOE. The proposals for
the $400 million in competitive grants, which is called the
Retrofit Ramp-up and focuses on regional programs that can
dramatically accelerate EE, were submitted in mid-December. Many
of the proposals contain substantial ESPC programs, because ESPC
is recognized as a critical component of these programs. The
timing of award announcements is not clear, but seems to be
2Q2010.
- Weatherization Assistance Program - $5 billion
distributed through the existing program network of state and
local governments and community organizations (CBOs). About 750
applications were submitted, and most of them have been
approved. Funding is actually flowing in this program, because
the major issue, application of the Davis-Bacon Act, to a
program that had previously been exempt, has been resolved with
the publication by the US Department of Labor of prevailing wage
rates for weatherization workers.
NAESCO Advocacy Activities
NAESCO has been working with the National Save Energy Coalition that
consists of hundreds of environmental and energy efficiency groups,
industry trade associations and major companies to try to accelerate
the implementation of the ARRA programs. The Coalition is in regular
contact with White House and US DOE officials to push the resolution
of the issues that are holding up the expenditure of SEP and EECBG
grant funds.
NAESCO is also part of a small “SWAT Team” convened by US DOE to
address the implementation of revolving loan funds and other finance
plans that are elements of many SEP and EECBG plans. According to
DOE, approximately $1 billion of the available grant funds will be
devoted to revolving loan funds, most of which will be administered
by government agencies with little or no relevant experience. The
SWAT Team is assembling guidance documents and best practices
program guides that will be distributed to the grantees through the
US DOE website and a series of webinars that are scheduled on a
weekly basis. One of the two major focuses of the SWAT Team is to
ensure that the loans funds will able to work efficiently with
public building ESPC projects. NAESCO is concentrating its work in
this area. The documents and downloadable versions of the past
webinars are available on the US DOE website at:
www.eecbg.energy.gov/solutioncenter/.
NAESCO is also part of a consortium that submitted proposals to
US DOE in the competitive EECBG program described above. NAESCO’s
role in the consortium will be to ensure the public building ESPC
programs are a major element of the proposed programs, and to
provide training to local government officials that will implement
the ESPC programs. The consortium anticipates submitting four
different proposals from four regional groups of communities -
Southeast, Midwest, California and Northeast.
To multiply our resources for this effort, NAESCO, in
collaboration with the Energy Services Coalition and NASEO,
submitted a proposal to US DOE for a grant to provide training and
technical assistance to states and local governments that will be
implementing ESPC programs as part of their SEP and EECBG plans.
This unsolicited proposal has now been superseded by a DOE
solicitation for technical assistance that is being run by the Oak
Ridge National Laboratory. The ORNL RFP asks for about 90,000 hours
over three years, or about 17 FTEs, for a task entitled “Improving
Building Energy Efficiency through Energy Savings Performance
Contracting.” The proposal was due December 7, and we expect DOE to
make a decision quickly, as the date for starting work is February
10, 2010.
A bright note is that Kathleen Hogan, who has been at US EPA, in
mid-October moved to US DOE as the Principal Deputy Assistant
Secretary for Energy Efficiency and Renewable Energy (EERE), which
is responsible for administering the ARRA programs. NAESCO has
worked with Ms. Hogan for a number of years. She has the reputation
of being a very capable manager and perhaps she will be able to
speed up DOE program administration. In early January, Roland Risser
from PG&E also joined DOE to take charge of the appliance standards
programs.
The Jobs Bill
The Congress is now working to assemble a second stimulus bill,
which is currently called the Jobs Bill, which will apparently be
considered once the debate on health care legislation has been
concluded. One component of the bill will apparently be a
residential program called Home STAR, which has been dubbed “Cash
for Caulkers.” President Obama has embraced the program concept for
its populist appeal (every voter can participate). Manufacturers and
big box stores that would sell insulation and equipment to
homeowners are also on board. NAESCO has been working with two
national coalitions to ensure that companion legislation called
Building STAR will provide rebate and enhanced tax incentives for
the commercial and industrial sectors. NAESCO has drafted and is
circulating to key Congressional staffers a measure that provides a
dedicated funding stream to the MUSH markets, because we believe
that these markets have special characteristics that require
dedicated legislation. There is also now some talk in the advocacy
community that some of the energy provisions of the energy and
climate legislation (see below) may be included in the Jobs Bill.
Assembly of the Jobs Bill will probably continue through January and
early February, and is expected to be considered after Congress’
Presidents Day recess.
Federal Energy and Climate Legislation
The third major federal initiative combines two initiatives that had
previously been separate: national energy efficiency and renewable
energy resource standards (EERS and RES) and a national greenhouse
gas emissions reductions policy (GHG). The House of Representatives
passed the American Clean Energy and Security Act of 2009 (ACES) on
a very close vote in late June. The Senate is now considering its
own version of the bill, which is being assembled in separate bills
being considered by the six Senate Committees that have asserted
jurisdiction of parts of the legislation (e.g., Energy and Natural
Resources, Environment and Public Works, etc.). The first of these
bills, the American Clean Energy Leadership Act (S. 1462, or ACELA),
passed the Senate Energy and Natural Resources Committee on June
17th by a vote of 15 to 8. ACELA contains no climate change or
cap-and-trade provisions, because they are under the jurisdiction of
the Environment and Public Works Committee. Senator Boxer (Chair of
EPW) and Senator Kerry released their draft bill, the Clean Energy
Jobs and American Power Act (CEJAPA) in late September and passed
the bill out of Committee without debate because the Republican
members of the Committee boycotted the Committee meetings. The other
four Committees have not announced their schedules for release of
their draft bills.
Senator Kerry announced that he is going to work with Senator
Graham (R-S. Carolina) and Senator Lieberman (I- Connecticut) to
draft a compromise bill that can draw broad bi-partisan support. The
Senators issued an outline of their bill before the UN Climate
Conference in Copenhagen, but to date there is no flesh on the
skeleton. Further action on the bill may be delayed until Senator
Kerry, who is currently recovering from hip replacement surgery,
returns to work.
Senators Cantwell (D-WA) and Collins (R-ME) introduced a third
bill in late December in late December. Their bill has many of the
same GHG reduction goals as the Waxman-Market and Kerry-Boxer bills,
but has a much simpler enforcement mechanism. Instead of the
elaborate emissions allocations formulas in Waxman-Markey and
Kerry-Boxer, the Cantwell-Collins bill would auction all allowances.
About 75% of the auction proceeds would be returned to consumers as
rebates, with the remaining 25% retained by the Federal government
for deficit reduction.
Energy Efficiency Policy - RES and EERS
Both ACES and ACELA mandate a number of national energy efficiency
programs, including a Renewable Electricity Standard (RES). This
means that utilities must by that year procure a mandated percentage
of their energy from renewable sources. ACES mandates 20% by 2020;
ACELA mandates 15% by 2021. In both bills approximately one quarter
of the mandate can be met with energy efficiency. This is commonly
known as an Energy Efficiency Resource Standard or EERS.
NAESCO is part of a national coalition that is exclusively
focused on making a standalone EERS a major provision of the
legislation. Twenty-two states now have EERS mandates for their
utilities. We are asking the Senate to enact an 10% standalone EERS,
independent of whatever they may decide to do with and RES. Senator
Schumer ( D-New York) is sponsoring the 10% EERS and has worked to
recruit other Senators to support it. NAESCO Chairman Adam Procell
has taken the lead in this effort, by asking Senator Hagan (D-N.
Carolina) to sign onto the EERS. NAESCO will be approaching other
companies to lobby their home state Senators in support of a stand
alone EERS.
It is important to note that the argument for a strong national
EERS is supported by a virtual blizzard of research reports that
document the economic development and job creations of energy
efficiency. A summary of one such report is contained in the
Briefing Book.
GHG Reduction or Climate Change Policy
The GHG provisions of the legislation involve the establishment of a
national carbon cap-and-trade system, in which the federal
government issues a limited number of carbon emission allowances (in
effect permits to emit CO2). The number of allowances is reduced
each year to reach the target level of emissions in a future year.
The first major debate is about how the initial allowances will
be distributed. The Obama administration has proposed that all
allowances be auctioned. Industries (including utilities) that emit
large amounts of CO2 have argued that forcing them to purchase
allowances at auction will deal the economy a body blow, by
increasing the cost of energy, and so they should be granted
allowances at no cost.
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 utilities and energy intensive industries
would like to see a substantial portion of the proceeds used to help
them defray the cost of implementing emissions reduction
technologies.
The coalitions that include NAESCO are arguing that cap-and-trade
is important because it produces the revenues that can finance
large-scale national EE programs. We are urging that the legislation
mandate that substantial portions of the allowances be used to
finance EE programs.
Media and Messaging
NAESCO is part of a third national coalition that is concentrating
on communicating the job creation and economic development benefits
of EE to the Congress and the public. The coalition is trying to
counter the huge national media campaign, financed by energy
producers and utilities, that is delivering the message that climate
change legislation will cripple the national economy. NAESCO
believes that by participating in this national communications
effort we can also help to realize our own communications goals – to
build the national reputation of the ESCO industry. The coalition
has begun its effort by running newspaper ads in Pennsylvania and in
specialized Washington publications whose readership are
Congressional staffers.
REGIONAL
RGGI
RGGI is a prototype of a national carbon cap-and-trade program that
encompasses nine Northeastern states that auction carbon emissions
allowances and invest the auction proceeds in energy efficiency
programs. These RGGI-financed programs are complementary to the
substantial utility and state-administered EE programs in each of
the RGGI states. NAESCO was appointed to the Advisory Committee for
the New York program (approximately 34% of the total RGGI program)
that advises NYSERDA, the program administrator on the composition
of the RGGI program portfolio. So we are getting useful early
experience with the issues that will affect the investment of the
proceeds of a national cap-and-trade program.
NYSERDA’s initial program plan, approved last year, budgeted
about $525 million over three years. The draft revised program plan
budget has been reduced to about $301 million by two factors. The
first is that because of the recession the value of the allowances
has dropped significantly, from $3/tonne to $1.86/tonne. The second
is that the Governor and the Legislature have appropriated $90
million from the RGGI proceeds to help balance the state budget.
Lessons learned are that the auction proceeds may be volatile during
the early years and that the proceeds are always subject to
diversion from energy programs to other government programs.
On top of these two major adjustments on the revenue side, the
Legislature passed Green New York legislation, which mandates that
about $125 million of the $301 million be spent on residential and
small commercial building EE programs and workforce training. NAESCO
and other members of the Advisory Committee questioned whether this
money could actually be spent effectively, since it is additional to
substantial sums from EECBG, WAP, the NYSERDA and utility
ratepayer-funded programs, and the Home STAR provisions of the
pending Jobs Bill. The answer to our questions was that the Green
Buildings spending mandate is absolute, and not subject to NYSERDA’s
judgment as program managers. The lesson learned is that mandates
for the expenditure of auction proceeds or emissions allocations do
not always optimize the use of those funds.
To accommodate the Green New York mandate, NYSERDA is proposing
to eliminate a program that NAESCO believes is at the core of the
RGGI concept – a program that solicits competitive bids for
innovative carbon emissions reductions – and to reduce funding for
commercial and industrial building programs. The rationale for
reducing the C/I programs is that that the ARRA SEP funding, which
was not anticipated when the original program plan was approved, is
supplying more money for MUSH market buildings than the RGGI budget
reduction. The elimination of the competitive bidding program is
apparently a trade-off to allow the continuation of several R&D
programs (carbon sequestration and smart grid). It is not clear to
NAESCO, and to other Advisory Committee members, that the research
programs are meaningful, in light of the billions that are being
spent on R&D in these areas across the country. The Advisory
Committee discussion indicated that these research programs are
politically untouchable, despite their questionable value.
NAESCO will now work with other members of the Advisory Committee
to attempt to restore funding to these programs.
STATES
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 working on their ARRA
implementation plans, a number of states are instituting or
expanding ratepayer-funded EE programs. Some states in which NAESCO
has been working are highlighted below.
California
On September 24, the California Public Utilities Commission approved
about $3.1 billion for energy efficiency programs in the 2010-2012
program cycle. This is a major re-affirmation of the importance of
energy efficiency to the future of California’s struggling economy.
During the months that preceded the Commission’s decision, NAESCO
filed two rounds of comments stressing the need for timely
Commission action and full funding of current programs until the new
programs start in the first quarter of 2010.
Massachusetts
The state is doubling its energy efficiency programs, pursuant to
the 2008 Green Communities Act. Utilities have filed implementation
plans. NAESCO is participating in a statewide coalition of energy
and environmental groups, and is co-sponsoring, with the state
Division of Capital Asset Management (DCAM) and the Division of
Energy Resources, a series of meetings and workshops about how to
maximize ESCO participation in Green Communities and ARRA program
implementation.
New York
The Energy Efficiency Performance Standard (EEPS) proceeding, which
will approximately triple EE funding and put utilities back into EE
program administration, is now entering its third year. A limited
set of “fast track” programs is in the early stages of
implementation. NAESCO has retained a consultant to monitor the
proceeding and is directly participating in the Evaluation Advisory
Group, the successor to the SBC Advisory Group, which is setting
program EM&V standards and protocols. NAESCO is also monitoring and
commenting on the development of new programs in the ConEd service
territory. NAESCO filed comments urging the New York Public Service
Commission to make the rules for program EM&V more workable.
Pennsylvania
The utilities will begin large EE programs (called Act 129 programs)
with aggressive savings goals in early 2010. The utilities filed
their program plans in mid 2009. Hearings on the plans were held
during the summer. The Pennsylvania Public Utilities Commission
(PAPUC) issued its decisions in mid-October. NAESCO filed comments
that urged the PAPUC to address the Act 129 mandate that at least
10% of program savings come from government and non-profit customers
by ordering the utilities to use their program funds to supplement
and expand the very successful Guaranteed Energy Savings Agreement
(GESA) program. The PAPUC rejected this suggestion, as it rejected
most of the program suggestions made by various parties, and
approved the utility plans without much modification. Rather than
establish a separate delivery channel for government customers, the
PAPUC decided to accept the utility approach of offering the same
incentives to government customers but to differentiate the
marketing to those customers. So ESCOs in Pennsylvania will have to
piece together the rebates offered for various ECMs, along with the
custom rebates, to make the best package for their customers.
North Carolina and South Carolina
Utility regulatory commissions in both states have ordered the
states’ major electric utilities - Duke and Progress Energy - to
implement large new energy efficiency programs. Both state
commissions have rejected Duke’s program compensation proposal,
called Save-a-Watt, as advocated by NAESCO and a coalition of energy
and environmental groups who argued that the original compensation
was excessive for the program elements. In December, the North
Carolina Commission approved a settlement negotiated by the
coalition that preserves the innovative aspect of the Save-a-Watt
compensation plan (allowing utilities to collect a fraction of the
avoided cost of power the EE programs replace) while reducing and
capping the compensation at a reasonable level.
Florida
NAESCO continues to monitor the proceedings to update utility energy
conservation goals based on current cost-effectiveness standards.
The analysis of the potential market for energy efficiency submitted
by the utilities does not seem credible. In contrast to the targets
that have been set by other states, which typically range from 1-2%
incremental savings per year, the Florida utilities are proposing
targets of less than 1% cumulative through 2020. NAESCO is working
with regional environmental and energy organizations to see how we
might assist them in making the case for more aggressive EE
programs. The talking point used by the interveners is that the
utilities and the PSC staff seem to think that a 2-3% rate increase
to fund EE programs is intolerable while a 30% rate increase to fund
new nuclear plants is reasonable. In December, the Florida
Commission ordered the utilities to resubmit their plans with more
aggressive efficiency goals.
Illinois
The expanded Illinois utility EE programs started their second year
of implementation, with approximately double their first-year
budgets, in mid-June. NAESCO is working with the program managers
for the Commonwealth Edison program to set up meetings with ESCOs to
encourage the development of more comprehensive projects.
Michigan
The electric utilities have filed new energy efficiency program
plans. NAESCO is monitoring the development of those plans, and has
held a series of meetings with officials of the state Department of
Energy, Labor and Economic Growth (DELEG) and the state Department
of Management and Budget (DMB) about making ESPC a major part of the
state’s ARRA implementation.
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New Members
NAESCO welcomes the following new members.
Duke Energy - Energy Service
Affiliate Member - Duke Energy is the third largest electric
power holding company in the United States, based on kilowatt-hour
sales. Its regulated utility operations serve approximately 4
million customers located in five states - North Carolina, South
Carolina, Indiana, Ohio and Kentucky - representing a population of
approximately 11 million people. Duke Energy’s commercial power and
international business segments operate diverse power generation
assets in North America and Latin America, including a growing
portfolio of renewable energy assets in the United States.
Eaton Corporation - ESCO Member
- Eaton is a $15.4 billion global power management company with
product lines including electrical power distribution and control
equipment, engine components, and hydraulic and fluid power products
for aerospace, automotive, and other industrial uses. With 75,000
employees, the company has customers in more than 150 countries.
Eaton has various solutions and services within each of these
business sectors that deliver Energy Solutions. Specifically within
the Eaton Electrical Sector - Eaton's Energy Solutions Business is
focused on helping customers define, establish, achieve, and sustain
their Energy program, objectives, and goals.
Onset Corporation - Energy Service
Affiliate Member - Onset is one of the world’s leading suppliers
of data loggers. The company’s HOBO data logger and weather station
products are used around the world in a broad range of monitoring
applications, from verifying the performance of green buildings and
renewable energy systems to agricultural and coastal research. Based
on Cape Cod, Massachusetts, Onset has sold more than one million
data loggers since the company’s founding in 1981.
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Upcoming Events
NAESCO's
Fifth Annual Federal Market Workshop
March 19, 2010
Pepco Building, 701 Ninth St., NW Washington, D.C. 20068
The fifth annual NAESCO Federal Workshop is a forum for public and
private sector representatives to discuss the emerging opportunities
in the federal marketplace. President Obama has indentified
investment in energy efficiency as one of the key ways to revitalize
the U.S. economy and put the country on a path to sustainable
prosperity. Through aggressive federal energy mandates, the Obama
administration has already started working toward a clean energy
future that will create millions of jobs while cutting our imports
of foreign oil. These mandates requires all federal buildings to cut
their energy use drastically and very quickly these government
entities will be looking for cost effective ways to reduce their
carbon footprint. This workshop will focus on how the energy
efficiency marketplace can leverage these unique opportunities by
participating in a dialogue with the public sector concerning the
value of ESCO projects, the fastest, cleanest and cheapest way to
reduce energy use.
To register, please
click here.Back to Top
Website
NAESCO has added a new feature, "This Week in Energy Efficiency",
which is a weekly feature that provides short summaries of this
week’s top news stories and what news makers are saying about energy
policies. "This Week in Energy Efficiency News" is sent to our
membership via email every Friday in addition to being posted to our
webpage.
A coalition webpage has been added to the website which provides
information about energy policy coalitions of which NAESCO is a
part. The page highlights the specific policy issues and advocacy
initiatives with which NAESCO and these other coalitions and groups
are mutually interested and engaged. The page details NAESCO’s
contributions to these groups and includes links to the relevant
pages of the coalitions.
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Industry News
New Study Finds Federal Dollars Fuel
Local Efficiency
A new report released by The American Council for an
Energy-Efficient Economy (ACEEE) contends that cities and counties
have long been active developers of successful energy efficiency
programs, and with the release of grant funds, local governments are
in a position to further their role. The report examines a number of
efficiency programs implemented by American towns and cities prior
to the passage of the American Recovery and Reinvestment Act of
2009 (ARRA). The Energy Efficiency and Conservation Block Grant
(EECBG) program included in the ARRA will dispense more than three
billion dollars to cities and states, creating jobs while improving
U.S. energy efficiency through a variety of initiatives, including
building retrofits, incentives, and audit programs. Some block grant
recipients have already received funding to execute their chosen
“shovel-ready” projects; however, many cities and towns are still
waiting to put project plans into action.
ACEEE’s new report, Energy Efficiency Program Options for Local
Governments under the American Recovery and Reinvestment Act of 2009,
can be downloaded by
clicking here.
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New Study Finds States are Leading
the Way in Cutting Emissions
According to a recent study by Environment America, about half of
the states have broad plans and specific regulations aimed at
reducing carbon dioxide emissions. The report contends that these
actions would cut emissions by over 7 percent between now and 2020,
a sizable distance toward the 17 percent reductions President Obama
promised at Copenhagen.
About half the reductions would come from proposed emission limits
in six big states, plus a regional cap on power plant emissions
adopted by New York and nine other Northeastern states. The other
half would result from legally required increases in the use of
alternative energy sources like wind as well as stronger state and
city efficiency standards for appliances, lighting and buildings.
According to the authors, California’s goal of cutting greenhouse
gases by one-quarter by 2020 is likely to be achieved because the
state has been so successful in improving the efficiency of its
power plants and buildings, promoting renewable energy and insisting
on fuel-efficient vehicles. The state recently approved strict new
energy-efficiency requirements for television sets, which now
account for 10 percent of the average household’s energy use but are
largely unregulated. The rules will save consumers $1 billion in
energy bills and reduce carbon dioxide emissions by three million
tons each year.
Environment America is a federation of state-based, citizen-funded
environmental advocacy organizations. To download a free copy of the
report, entitled America on the Move,
click here.
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Energy Efficiency Consulting
Companies Expected to Make $5.6 billion in 2010
According to a new report by Pike Research, companies providing
energy efficiency consulting services to U.S. commercial building
owners are expected to generate about $5.6 billion a year in revenue
in which about 75 percent of the revenues come from implementing a
suite of energy efficiency measures. Pike Research projects 250
percent growth to $19.9 billion by 2020. According to the report,
about 80 percent of the current market is tied to projects in the
institutional and federal sectors, spurred by the injection of
nearly $11 billion in incentives, grants and lending opportunities
through the American Recovery and Reinvestment Act of 2009 (ARRA).
The market is expected to be boosted by the acceleration of Property
Assessed Clean Energy (PACE) financing, in which companies pay a
higher property tax in exchange for financing of energy efficiency
measures. If more PACE financing becomes available and companies
face higher costs from cap-and-trade legislation, Pike Research
estimates the market would balloon to $37.6 billion by 2020.
Additionally, green building projects are expected to increase their
market share. Green building currently accounts for five to nine
percent of the retrofit and renovation market activity by value,
which equates to a $2 billion to $4 billion marketplace for major
projects. By 2014, this share is projected to grow to 20-30 percent,
making it a $10 billion to $15 billion market for major retrofit
projects.
Pike Research is a market research and consulting firm that provides
in-depth analysis of global clean technology markets. The report,
entitled The US Energy Service Company Market, can be
accessed be
clicking here.
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New Study Lays out Roadmap to
Low-Carbon Energy by 2030
According to a new report released by the Worldwatch Institute and
the Renewable Energy and Energy Efficiency Partnership (REEEP),
energy efficiency and renewable energy used in concert, can play a
key role in meeting rising global demand for energy services while
averting catastrophic climate change. Losses in energy are wasted
when converting fossil fuels to energy services can be sidestepped
through the use of renewable energy, providing the same level of
energy services with far less primary energy. The report states that
improvements in energy efficiency make it easier, cheaper, and
faster for renewables to achieve a large share of total energy
production, while also rapidly reducing greenhouse gases and other
emissions associated with energy use. The report states that for
more than a decade, solar power, wind power, and other renewable
technologies have experienced double-digit annual growth rates.
Renewable technologies are already enabling Germany, Spain, Sweden,
the United States, and several other countries to avoid carbon
dioxide emissions and several communities have successfully
transitioned from fossil fuels to 100-percent renewable energy, or
are well on their way. The report concludes that this transition to
a highly efficient economy utilizing renewable energy is essential
for both developed and developing countries.
REEEP is a global partnership that structures policy initiatives for
clean energy markets and facilitates financing for sustainable
energy projects. To download a copy of the report, entitled
Renewable Revolution: Low-Carbon Energy by 2030, by Janet Sawin
and William Moomaw
click
here.
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Six States to Develop Comprehensive
Action Plans to Improve Energy Efficiency of Existing Buildings
The National Governors Association Center for Best Practices (NGA
Center) announced six states have been selected to participate in
the Policy Academy on State Building Efficiency Retrofit Programs.
The program helps states develop strategies to improve the energy
efficiency of existing buildings and reduce costs and emissions. The
states chosen are Colorado, Hawaii, Massachusetts, North Carolina,
Utah and Wisconsin. The Policy Academy will help participating
states develop and refine a number of policy options including
innovative funding and financing mechanisms; building energy use
benchmarking tools; targeted education and outreach measures; and
workforce training programs. These measures will be used to help
states design larger-scale building retrofit programs that lead to
lower energy use, the reduction of greenhouse gas emissions and the
creation of new jobs. Building retrofit programs may include
measures like air sealing; insulation; upgrading or replacing
heating or hot water systems; lighting upgrades; window replacement;
appliance replacement with ENERGY STAR products; solar thermal hot
water; and energy management system installation. The Policy Academy
is being funded by the U.S. Department of Energy.
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LED Bulbs Save Substantial Energy, a
Study Finds
A study conducted by Osram, a German lighting company, provides
evidence that LED light bulbs save significant amounts of energy.
The study results show that over the entire life of the bulb, from
manufacturing to disposal, the energy used for incandescent bulbs is
almost five times that used for compact fluorescents and LED lamps.
The energy used during the manufacturing phase of all lamps is
insignificant, less than 2 percent of the total. Previous to the
release of this report, Osram notes that no studies had been done
measuring the energy used to produce LED lamps. While it is known
that LEDs use a fraction of the electricity of a regular bulb to
create the same amount of light, it was not known how much energy
was used in the manufacturing and distribution process.
To calculate what is know as a Life Cycle Assessment of LED lamps,
Osram compared nearly every aspect of the manufacturing process,
including the energy used in manufacturing the lamps in Asia and
Europe, packaging them, and transporting them to Germany where they
would be sold. It also looked at the emissions created in each
stage, and calculated the effect of six different global warming
indexes which includes the amount of greenhouse gas emissions
created by each process, the acid rain potential, photochemical
ozone creation, the release of harmful chemical compounds, and the
resultant scarcity of gas, coal, and oil.
You can access the report by
clicking here.
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The Copenhagen Diagnosis: Sobering
Update on the Science
A new report released by the UN’s Intergovernmental Panel on Climate
Change (IPCC) contends there is a very high probability of overall
global warming exceeding two degrees Celsius unless global emissions
peak and start to decline rapidly within the next decade. According
to the report, recent measurements show a large net loss of ice from
both Greenland and Antarctica, and the relatively rapid rise in
global sea levels. The report contends there are several elements of
the climate system that could reach a “tipping point” in coming
decades if current emissions trends continue. The report notes that
even at current greenhouse gas concentrations, it is already very
likely that a summer ice-free Arctic is inevitable. The Greenland
Ice sheet, too, the report warns, may be nearing a tipping point
where it is committed to shrink.
The report states that the sun’s brightness has been extremely low
over the past three years yet temperature records have been broken
during this time. The years 2007, 2008 and 2009 had the lowest
summer Arctic sea ice cover ever recorded, and in 2008 for the first
time in living memory the Northwest Passage and the Northeast
Passage were simultaneously ice-free. This feat was repeated in
2009. According to the IPPC report, every single year of this
century (2001-2008) has been among the top ten warmest years since
instrumental records began.
The report’s 26 authors include scientists from Germany, France,
Switzerland, Austria, Canada, the U.S., and Australia. Most were
also authors of the last IPCC report, and donated their time to
draft “The Copenhagen Diagnosis.” The University of New South Wales’
Climate Change Research Centre provided logistical support.
You can access the study by
clicking here.
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New Study Finds Energy Efficiency
Could Reduce US Energy Use 20% by 2020
According to a new report, fully implementing current and likely
future energy efficiency technologies could reduce US energy use
17-20% by 2020. Buildings are a key issue, says the report, which
estimates that they account for nearly 70% of total electricity
consumption. Deploying cost effective energy efficiency technologies
in the building sector alone could eliminate the need for any new
electricity generation capacity until 2030. Simple measures such as
replacing air conditioners, refrigerators, freezers, furnaces, and
hot water heaters with more efficient models could reduce energy
usage by nearly a third. The report contends that the manufacturing
sector, particularly energy intensive industries such as chemicals,
petroleum refining, pulp and paper, iron and steel, and cement,
could also reduce energy use by 14-22% by 2020 by implementing
energy efficiency technologies. The report indentifies the major
barriers to adopting energy efficiency measures as the upfront
costs, volatile energy prices and a lack of readily available and
reliable information.
The report found that moving ahead with a major energy efficiency
overhaul will require a sustained effort and substantial public and
private support. The report cites California and New York as
examples of what can be achieved with sustained efforts and there
are existing successful programs that could be expanded to good
effect.
The report entitled, Real Prospects for Energy Efficiency in the
United States, was released by the US National Research Council
and can be accessed by
clicking here.
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Member News
For a full list of all NAESCO Member News and Projects,
please
click here.
City of Knoxville Council Approved a
$19 million Energy Services Agreement with Ameresco
The City of Knoxville Council approved an energy services agreement
with Ameresco that will save the City of Knoxville millions
of dollars while reducing its energy consumption and carbon
emissions. The savings generated by the $19 million energy
conservation package will pay for the costs of installing and
maintaining the improvements in less than 15 years. Through this
project, the city will upgrade 99 city-owned buildings, as well as
37 ballparks/athletic fields and 3 public golf courses in and around
Knoxville. Ameresco will implement more than 17 different energy
conservation measures such as energy efficient lighting, water
conservation and weatherization to more capital intensive
improvements such as upgrades to building comfort control systems,
boiler replacements and HVAC improvements. Renewable measures, like
solar hot water heating systems and a photovoltaic energy generation
system, are included for several buildings. Among the cost savings
the city will realize include equipment standardization and a
reduction in maintenance costs. The City of Knoxville currently
spends slightly over $4 million a year on utilities. The planned
investments in energy efficiency and renewable energy will save over
$1.1 million in the first year after the installation process and
the savings should increase in subsequent years.
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Ameresco Awarded $2.7 Million Contract
by U.S. Department of Agriculture
Ameresco was awarded the contract to implement five energy
conservation measures for the U.S Department of Agriculture –
Agricultural Research Service at two sites in Texas under the
Department of Energy’s Central Regional Super Energy Savings
Performance Contract. The ECMs include HVAC system upgrades, motor
replacements, advanced metering, and energy management controls
systems upgrades. The project will save over $2.7 million in energy
and utility costs and provide the following benefits to the USDA:
implementation of key energy/infrastructure/maintenance projects
with no upfront funding; firm, fixed-price contract and expedited
implementation schedule; reduced O&M demands; improvement of aging
infrastructure to support USDA-ARS’s mission and progress toward
meeting Federal energy/emissions-reduction goals through efficiency
upgrades.
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City of Newburyport and Ameresco
Unveil Largest Municipal Solar Project in Massachusetts
The City of Newburyport and Ameresco unveiled a solar
photovoltaic system that is the largest municipal project of its
kind in Massachusetts and will supply 502 kW of clean, renewable
electricity to the Rupert A. Nock Elementary School and the City’s
Department of Public Works building. Ameresco was the designer and
builder of the system and will own, operate, and maintain the
project over the next 20 years providing electricity exclusively to
the two city-owned facilities. The city will receive $1.6M dollars
in rebate funding from the Massachusetts Technology Collaborative
Renewable Energy Trust, from which Newburyport was allowed to retain
$400,000.00.
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Rhode Island Selects Chevron Energy
Solutions to Construct Wind Turbines in Narragansett
The Department of Environmental Management, in partnership with the
Town of Narragansett, has begun negotiations with Chevron Energy
Solutions Co. to construct, operate, and maintain onshore wind
turbines on State and/or Town properties in Narragansett. The
project is designed to provide a sustainable energy supply to meet
the needs of the state and town while maximizing potential revenue
over the life of the generating facility. The energy produced from
these sites will address needs for DEM activities at the Port of
Galilee and state camping and beach facilities located in
Narragansett. Energy produced on town sites will be used to power
the sewage treatment plant and other municipal needs.
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Honeywell Partners with Washington Gas
To Design And Build Major Power Facility For GSA
Washington Gas and Honeywell have been selected by the U.S.
General Services Administration (GSA) to jointly design, install and
maintain a central utility and cogeneration plant and distribution
system at St. Elizabeth’s West Campus in Washington, D.C. The plant
will meet up to 30 percent of the peak energy demand for the campus,
which will serve as the U.S. Department of Homeland Security (DHS)
headquarters as well as its agencies. The central plant will give
GSA the flexibility to support the energy needs of DHS through
onsite generation that will deliver nearly 25 megawatts of
electricity for the 4.5-million-square-foot campus that is scheduled
to be completed by 2016. The plant and distribution systems will
provide thermal utilities; chilled and hot water; electrical
services; and normal and emergency power. The new plant is expected
to reduce emissions by more than 50,000 metric tons of carbon
dioxide equivalent to removing nearly 10,000 cars from the road.
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Lone Star College System Awards
$65 million Contract to Johnson Controls
Lone Star College System, the second largest community college
system in the state of Texas, is updating facilities across eight
campuses. Johnson Controls is overseeing the energy savings
program that will reduce overall environmental impact and is
projected to save more than $65 million in energy costs over the
next 20 years. Water conservation measures, plumbing system upgrades
and heating, air conditioning and ventilating improvements will
affect eight college campuses and university centers, including
LSC-North Harris, LSC-Kingwood, LSC-Tomball, LSC-Montgomery,
LSC-University Center, Fairbanks Satellite College, LSC-CyFair and
LSC-University Park. The college system is expected to realize
utility reductions of 27 percent in electricity, 12 percent in
natural gas and 28 percent of water resources. Additional
enhancements include solar window film, updated vending machines and
direct digital controls upgrades to the building management system
at the North Harris campus. Lighting improvements and mechanical
retrofits will be installed at the University Park center, as well
as the North Harris campus.
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Pepco Energy Services Awarded Energy
Savings Performance Contract by Prince George’s Country Government
Pepco Energy Services has been chosen by the Prince George’s
County Maryland Government to implement a $4 million energy
performance contracting project. The contract calls for Pepco Energy
Services to provide high-efficiency lighting and water conservation
measures, the replacement of heating and cooling systems with more
efficient designs, and the installation of new energy management
control systems in seven buildings which include the County
Administration Building, Inglewood Center, Largo Government Center,
the Public Works Maintenance Facility, RMS, Hyattsville Justice
Center and the Central Communications Facility. Also included in
this project is an Energy Awareness program for the building
occupants which will promote behavior intended to simulate energy
conservation actions.
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Pepco Energy Services Selected by Norfolk
Public Schools for Lighting and Energy Infrastructure Upgrades
Pepco Energy Services has been chosen to provide a
comprehensive lighting retrofit and complete the geothermal system
installation at the Norfolk Virginia Public School System. Pepco
Energy Services will provide high-efficiency lighting and lighting
controls for 44 Norfolk public schools. As part of the contract,
Pepco Energy Services will be completing the installation of the
geothermal heating and cooling system at Sewell Point Elementary
School with more than 60% of the energy to heat and cool the school
being derived from the earth. The energy saved by this project is
equivalent to the removal of 11.9 million pounds of CO2 from the
atmosphere or the planting of 1,964 acres of trees.
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Pepco Energy Services Selected by
Appalachian State University to Implement Energy Savings Performance
Contract
Pepco Energy Services will provide over $5.4 million in
energy infrastructure at Appalachian State University (ASU), located
in Boone, North Carolina paid by guaranteed energy savings. The
12-year contract calls for Pepco Energy Services to provide energy
conservation measures in 15 buildings on the ASU campus. As part of
the performance contract, Pepco Energy Services will install over
8,800 energy-efficiency lighting fixtures and water saving fixtures,
replace and upgrade heating and air-conditioning systems, update
building automation systems in nine buildings, install a solar
thermal water heating system for the Varsity Gym and add LED
lighting to the River Street parking deck. The project will also
include an Energy Awareness program with a web site that will
monitor how much energy is being used in buildings where energy
efficiency measures have been performed. With guaranteed annual
energy savings exceeding $550,000 per year, this project will allow
ASU to add over $5.4 Million in energy infrastructure paid by
savings over the life of the contract. Construction has begun and is
expected to be completed by the end of 2010.
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Schneider Electric Awarded Oregon
Department of Corrections $1.85 Million Energy Efficiency Project
The Oregon Department of Corrections in Salem, Ore., is implementing
$1.85 million in facility enhancements designed to improve
operations, comfort and efficiency in four buildings with
approximately 96,000 square feet. Schneider Electric will
complete the work and guarantees that SCI will reduce its utility
and labor costs by $335,000 annually when the project is completed
in December 2009. Through this project, Schneider Electric will
significantly reduce the peak temperatures in the summer by
upgrading to a web-based direct digital control system, reducing
lighting loads with lighting controls and retrofitting fixtures,
installing modern thermal windows, and adding insulation and
circulation in the attic. The staff will have full control and
visibility of current conditions through the new control system.
Schneider Electric partner Control Contractors, Inc. of Portland,
Ore., will install a TAC I/A Series control system in the facility.
When the project is completed, not only will the SCI facility be
more comfortable, but it will also be more efficient. Schneider
Electric estimates that as a result of the reduction in energy use,
314 tons of carbon will not released. This is equivalent to planting
12,575 trees, taking 68 cars off the roads for one year, or making
41 houses carbon neutral.
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Lawton Schools Awards Schneider
Electric $2.2 Million Energy Efficiency Project
The Lawton Public Schools in Lawton, Okla., are implementing $2.2
million in facility enhancements designed to improve operations,
comfort and efficiency at five campuses totaling nearly 900,000
square feet. Schneider Electric will complete the work as a
performance contract with the district. Schneider Electric
guarantees that the Lawton Public Schools will reduce its utility
costs by $254,854 annually when the project is completed in the
summer of 2010. The Lawton Public Schools has 35 campuses to serve
this southwestern Oklahoma community with a population of 92,000.
Faced with increasing utility costs, the district began to look at a
means to update its aging facilities. The facilities contained aging
automation systems with limited climate control or energy management
capabilities. Schneider Electric will install a new direct digital
control energy management system for efficient and reliable control
of the facilities. A lighting upgrade, including gym high bay
conversions in the five facilities, will both improve illumination
and save energy. Schneider Electric will work against a deadline so
the district will qualify for a $63,000 rebate from the local
electric provider. The Lawton schools performance contract will
produce a positive environmental outcome for the community as well.
The reduction in energy use will avoid 5.8 million pounds of C02
pollution, 50,000 pounds of S02 pollution, and 21,000 pounds of N0x
pollution. The benefits to air quality are equivalent to planting
more than 365,000 trees across 700 acres or taking 653 cars off the
roads every year.
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Siemens Industry, Inc. Awarded $27
Million Contract at Eastern Kentucky University
Eastern Kentucky University entered into a $27 million performance
contract with Siemens Industry, Inc. to oversee an energy
efficiency project which includes modifications to the coal-fired
central heating plant which will double its efficiency thereby
cutting coal consumption by half. EKU's utility bill is now about
$6.4 million a year. When the work is completed next year, the
university will have cut its energy consumption by 40 percent and
will save almost $8,000 a day in energy costs. That's equivalent to
taking 6,229 cars off the road, creating 227 acres of forest or not
burning 179 rail cars of coal.
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Trane to Implement Energy Saving
Improvements in Ohio Schools
Trane recently completed a project at the Lakota Local School
District in Liberty Township, Ohio. The $2.45 million in energy
efficiency upgrades are anticipated to save more than $195,000 in
annual energy costs and more than $62,000 in annual operating costs.
Upgrades included CO2-based demand control ventilation and dynamic
air cleaners; updated HVAC controls; installation of variable speed
pumping; installation of galvanized steel cooling towers; upgraded
lighting and upgraded air handlers. In addition, repairs were
completed on the original system design to help reduce the risk of
damaging the equipment in the future.
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Trane Partners with Osage County to
Upgrade Facilities
Trane recently completed facility upgrades in Osage County,
KS. The completed upgrades are expected to reduce the county’s
environmental impact and increase the productivity and comfort of
county employees. Infrastructure improvements were also completed on
county health, road and bridge, and sheriff facilities. The county
will gain an anticipated $23,000 in annual utility, operations and
maintenance savings from the improvements along with a rebate of
nearly $245,000 from the Kansas State Historical Tax Rebate program.
Upgrades at the courthouse include installing four high efficiency
rooftop heating, ventilation and air conditioning systems to replace
less effective and less efficient window air conditioning units and
outdated steam boiler radiator systems.
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Trane Improves Efficiency at the Historic
Oxford Hotel
Trane recently partnered with the Oxford Hotel in Denver, to
implement upgrades on the building that improve energy efficiency
while decreasing average monthly utility costs by 47 percent. New
systems included two highly efficient chillers as well as a building
automation system to optimize operation of the overall heating,
ventilation and air conditioning (HVAC) system. Management used
innovation to install the chiller systems in a basement not
originally designed to accommodate such an advanced system. Two
chilled water systems were included to ensure uninterrupted service,
and each includes dual compressors for added flexibility and system
redundancy. During high demand, the backup chiller and secondary
compressors run as needed. To boost efficiency, a plate-and-frame
heat exchanger was installed in the chilled water system to provide
free cooling during winter months without the need to operate the
new electric chillers.
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Wendel Energy Services has been Awarded
Contract by the Town of Chenango
Wendel Energy Services was selected by the town of Chenango
to upgrade the town’s aging water and wastewater infrastructure. The
first step of the project will entail performing an energy
efficiency study of nineteen Town-owned facilities including its
Wastewater Treatment Plant and Pumping stations. Among the critical
improvements planned are the upgrade of town’s wastewater treatment
plant and the replacement of aging water meters and other failing
equipment. The improvements being implemented will also to help the
town comply with federal regulations related to the Chesapeake Bay.
An additional $11.2 million in grants have been made available for
fiscal year 2010 to assist municipalities with reducing pollution
and improving water quality for the Bay region.
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