NAESCO Newsletter
March 2011
New Members
NAESCO welcomes the following new members:
Upcoming Events
Advocacy Report
For a full list of all NAESCO Member News,
please
click here.
Featured Articles
Interview with John Johnson PE, LEED AP,
ConEdison Solutions' Senior Project Developer on the Evolution of
the ESCO Industry
John Johnson, PE, LEED AP, is ConEdison Solutions' Senior
Project Developer and has over 30 years' experience with
educational, commercial and industrial energy project design and
implementation. Mr. Johnson has managed over $100 million in energy
design, engineering, and construction projects that have qualified
for over $10 million in utility rebates. He has implemented woodchip
boiler plants, cogeneration systems, energy management system
upgrades, and industrial process improvements. He earned degrees in
Mechanical Engineering and Business from the University of Illinois.
What attracted you to the ESCO Industry?
I was attracted to the
great diversity of technologies and activities that energy
performance contracting involves. At ConEdison Solutions, we deal
with virtually every system within a building and engage in
everything from brief walkthroughs to in-depth analysis of very
complicated systems - like waste water treatment plants, central
chillers and boilers, and industrial refrigeration systems. I also
enjoy the people aspects of what I do. I enjoy helping customers
solve problems and like that when they see me walk in the door,
their faces light up because they know I am going to solve their
problems and making them look good to management. Last, but not
least, the environmental benefit of what we do is important to me
and makes me feel good about what I do for a living.
How have you
seen the industry change over the last 30 years?
The Internet and
the wide availability of software tools have completely changed how
we access information about energy-saving technologies, equipment
data, weather data, and, especially, data about customers' energy
management systems and equipment. When I started out, all of the
information I needed to do an energy audit was on paper, so I had
(still have!) masses of reference manuals and data sheets.
Nevertheless, I never seemed to be able to find the one page of
information that I needed. Today, no matter how obscure a piece of
equipment might be, I can usually download information, performance
curves, and drawings in a matter of seconds. Similarly, instead of
referring to the old, blue "US Air Force Weather Data" manual for
temperature bin data, for example, I can get the latest temperature
data for any location in the world electronically and organize it
any way I need to.
Energy management systems have also changed quite
a bit in their ease of use and Internet connectivity. We can now log
in to see our customers' buildings and troubleshoot problems without
traveling to the site. Most of the functions the systems perform
haven't changed much over the years - the best savings still come
from turning off equipment and controlling temperatures and outside
air quantities - and these functions were around in the 1960's.
Carbon dioxide sensors are new and these have helped us gain
real-time knowledge about what is going on in a building's
ventilation systems.
Variable volume system and variable speed
drives have become much more refined and reliable - and provide
additional insights into how specific areas of the buildings are
operating. None of these technology changes, however, has replaced
the old-fashioned requirement that our ConEdison Solutions engineers
be extraordinarily detail-oriented and wear out some shoe leather at
a job site to really understand what is happening and what we can do
to help customers save energy.
Given the depth of your experience in
the ESCO industry, what do you think are the most promising
technologies or innovations today?
Two areas come to mind - one
physically oriented and one technological.
ConEdison Solutions
installed woodchip boilers at two schools in Rhode Island, the first
permitted in the state. They burn wood waste from local lumber
mills. The cost of delivered heat from these systems is incredibly
low - around the equivalent of 75 cents per gallon of fuel oil -
and the economics and environmental benefits are outstanding. These
boilers burn very cleanly and passed rigorous environmental tests
for particulates, carbon monoxide, and many other pollutants. After
a few initial glitches, the systems have been operating quietly and
efficiently by local custodians for the past few years. These
systems are a combination of high-tech computerized controls and
low-tech material handling systems that move woodchips from bins to
burners. The only "waste" product is wood ash, which schools either
give to local farmers or spread on lawns. They have the greenest
grass of any school in Rhode Island!
At the other end of the
spectrum, I see "smart" electric meters and "data mining" as
important future innovations that will increase the effectiveness of
ESCOs. With access to virtually an infinite amount of information
over the Internet from specific client's utility use, equipment
operating conditions, temperatures, and settings available, the
question is not whether information is available, but how to make it
useful. Information technologies that organize this data in a
meaningful way and mine it for important trends will become the wave
of the future and will leverage the skills of ConEdison Solutions'
engineers.
How do you think ESCOs can utilize these innovations in a
way that better meets the customer's needs?
Most ConEdison Solutions
customers are pretty savvy about technology, and welcome us bringing
them solutions to track their buildings' energy use and correct
operating problems. We have set up systems that allow facility
managers - many who monitor 30 or more buildings - to use their
laptops and cell phones at home to receive real-time information
about their buildings and head off potential problems even before
they leave for work. The key is to set up proper filtering of alarms
and to organize the information in a way that makes this process
easy. ConEdison Solutions' attention to detail helps us set up the
systems that work for each client's individual needs and technical
capabilities.
Our success in achieving persistent reduction in
energy use depends on our clients being as proactive and
detail-oriented as ConEdison Solutions is. Sometimes, something as
simple as tracking building energy use parameters - BTUs per square
foot per heating degree day, for example - will help a client
immediately identify a building that has gone out of adjustment or
which has had some control parameter overridden. By quickly
identifying these "outlier" buildings, facility managers can
initiate inquiries as to what happened to cause the change. Often,
it will be a change made to the energy management system by a local
operator trying to solve a problem, but does it incorrectly.
Do you
think these new technologies will take the place of more standard
energy savings measures?
ConEdison Solutions still installs the
traditional technologies of lighting retrofits, lighting controls,
variable speed drives, boilers, chillers and basic energy management
systems. We are also installing many pool covers and natatorium
dehumidification systems that are somewhat more "high-tech", but
still save energy through basic fundamentals - avoiding evaporation
of water and the subsequent need to replace and reheat it, and
recovering heat from hot, humid exhaust air. We have even installed
complete pool enclosures - using beautiful translucent panels
throughout that let in sun all winter and open wide in the summer
for an "outdoors" experience - and a high-efficiency
dehumidification system. These projects were partially paid for by
significant utility rebates. The facility also saved money and
energy by eliminating old, inflatable pool "bubble buildings" that
required significant maintenance and snow removal headaches. ConEdison
Solutions rolled this project in with a number of more
conventional projects to completely fund the new natatorium
enclosure, including all mechanical/electrical systems, using energy
savings.
Do you feel that customers are receptive to the idea of
utilizing new approaches to building retrofits?
Yes - and many of
them have their own pet technologies they want us to install. In one
major university, a solar photovoltaic art installation was
requested that takes the shape of an actual tree outfitted with
movable solar panels that track the sun. This installation will be
the centerpiece of the campus center. We will install a kiosk to
track real-time solar output, and provide educational benefits to
students about solar energy and photovoltaics.
ConEdison Solutions
has also worked closely with secondary schools in the Northeast to
promote energy conservation both inside and outside their schools.
At Foster-Glocester, Rhode Island, for example, ConEdison Solutions
donated a pick-up truck to a science teacher/environmental activist,
Ross McCurdy, who had his science students retrofit the truck with a
large biodiesel storage tank. Together they drove it across the
United States without refueling as part of a learning experience in
energy conservation. This same teacher also formed "the world's only
fuel-cell-powered rock band" that plays at green energy events. Even
more amazing, he supervised his students in a project that modified
a classic Model T Hot Rod Coupe by removing the V-8 gas engine and
installing a huge electric motor powered by a massive fuel cell.
Based on your experience, do most customers view the measurement and
verification of the energy savings as a key inducement to entering
into performance-based projects?
It is one of many inducements to
enter into a performance contract, but is certainly one that
provides some hard facts and reassurances that the savings we
predict will actually occur. Getting badly needed infrastructure
improvements is always a big driver for performance contracting, as
is meeting governmentally mandated savings targets. Just as
important as M&V, however, our customers view ConEdison Solutions'
ongoing commissioning services as critical to maintaining energy
savings. This is always going to be the key area where ESCOs like ConEdison
Solutions shine compared with conventional design-build
contractors. We are with the customer for the long haul and have a
vested interest achieving energy savings day-to-day and
year-to-year. That's why we have so many good references from every
project we have done over the years.
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NAESCO Updates
New Members
NAESCO welcomes the following seven new members.
ESCO Israel Electricity Services
- International Member - ESCO Israel, Ltd. pioneers the
Energy Services market in Israel. The company specializes in the
development, design, construction, financing, and operation of
energy and environmental efficiency projects and performance
contracting. In addition, the company operates in the electric
distribution market recently privatized in Israel. ESCO Israel
working with its customers to reduce operating expenses, upgrade and
maintain their facilities, stabilize energy costs, improve occupancy
comfort levels, increase energy reliability, and enhance the
environment, has successfully built and operated several hundred of
projects. ESCO Israel is owned by the members of the Recant family
and the
Nisko-Adrdan Group.
Kyocera Solar, Inc. - Energy
Service Affiliate Member - Kyocera is one of the world's largest
vertically-integrated producers and suppliers of solar energy
products. Kyocera Solar, Inc. serves the widely varying needs of
customers for distributed solar electricity through two major market
channels. Industrial customers, such as original equipment
manufacturers, government organizations, utilities, corporate
clients and institutions, are served directly with fully integrated
system packages. KSI also serves a global network of Authorized
Distributors and Dealers with components, packaged systems,
engineering, technical support, project management, sales aids and
literature.
Leonard, Street and Deinard, P.A. -
Associate Energy Service Affiliate Member - Leonard, Street
and Deinard is a full-service law firm with offices in Minnesota and
Washington, D.C. The firm acts as national construction counsel for
several large clients, and also acts as primary counsel for a
significant number of upper midwest-based public companies and
closely held businesses that require representation in other states.
For large construction clients, they serve as lead counsel on advice
and litigation matters throughout the United States. Much of their
work for these clients involves disputes over the performance of
equipment that generates, distributes, controls and uses electricity
and other forms of energy in facilities around the country. The firm
regularly provides advice and representation to energy services
companies on performance contracting projects.
Wipro Limited - ESCO Member -
Wipro EcoEnergy is the clean tech business of Wipro Ltd. The company
creates and manages sustainable energy solutions by providing
intelligent, sustainable alternatives for energy generation,
distribution and consumption, helping its customers reduce their
energy footprint, recover avoidable energy losses in their energy
deployments, and replace conventional energy with renewable energy
sources. Drawing upon energy efficiency and renewable energy
solutions, the company relies on analytics that manage and optimize
energy yield, while at the same time improving the manageability and
safety of the systems on a real time basis. They leverage their
information and technological expertise to deploy a dynamic
interplay of analytical insights and automated response mechanisms
thereby ensuring high performance and availability.
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Upcoming Events
Southeast Regional Meeting
June 23, 2011
Loews Vanderbilt Hotel
Nashville, TN
Mid-Atlantic Regional Meeting
September 19, 2011
Con Edison Building
New York, NY
28th Annual Conference
2011 Annual Meeting
November 1-2, 2011
Hilton San Diego Resort & Spa
San Diego, CA
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NAESCO Advocacy Report
The full version is posted on the NAESCO Members Only Site,
which can be accessed
here.
At its November 2010 meeting, the NAESCO Board decided to realign
NAESCO's federal advocacy work away from its strong focus in 2009
and 2010 on promoting passage of national climate and energy
legislation to supporting more modest goals:
- Supporting the acceleration of federal investment in energy
efficiency through the use of the ESPC program
- Monitoring EPA GHG rules that may promote the use of EE as a
compliance mechanism
- Monitoring the federal budget for FY11 and FY 12 to ensure
budgetary support for energy efficiency policies and programs
The Board also decided to shift the bulk of the NAESCO Advocacy
work in 2011 to the opportunities in the states with a particular
focus on:
- Educating the 29 new governors and their staffs about the
benefits of large scale public buildings ESPC programs in
meeting economic and energy consumption reduction goals;
- Supporting existing EERS and energy efficiency programs that
have established EE as the first resource in putting together an
energy portfolio; and,
- Pushing the EE program administrators for set asides and
program designs that emphasize ESPC programs
As always, NAESCO continues its ongoing participation in state
regulatory proceedings to ensure that existing EE programs and
policies are reauthorized and, where feasible, to promote the
implementation of more aggressive energy efficiency investment.
NAESCO has been active in several of the states that we selected
as targets for NAESCO participation in 2011 regulatory proceedings.
- New York - We are participating in the proceeding to
authorize SBC IV, the fourth five-year statewide EE program
administered by NYSERDA. We have filed two sets of comments
objecting to NYSERDA's shift in emphasis from resource
acquisition to R&D programs. We are also participating in a
series of technical workshops and holding meetings with key PSC
and NYSERDA staff.
- New Jersey - We have submitted two rounds of comments on the
transition of the NJ Clean Energy Programs and are participating
in the ongoing development of the new State Energy Master Plan.
- TVA - We submitted a comment urging that TVA emphasize
energy efficiency in its new IRP, which has now been issued.
- Texas - We are providing support to an ACEEE study of the
economic potential of increasing the Texas EERS from its current
level (20% of new growth) to the new Arizona level (22% of
consumption in 10 years).
- California - We submitted comments and participated in
workshops on the EM&V process for custom (non-DEER) measures,
which are a staple of many ESCO projects. Our comments urge the
CPUC to reject the Energy Division's proposed process, which we
think is unfair and unworkable. We are also participating in a
broad coalition of stakeholders who oppose the Legislature's
appropriation of gas energy efficiency funds into the state
General Fund. We have written two rounds of letters to the
Budget Conference Committee expressing our opposition to this
funding grab, and now expect the issue to go to litigation, an
effort which will be led by the utilities.
State ESPC Advocacy
In two major states-- California and Pennsylvania - recent
developments appear to have galvanized our membership.
In California, there is a bill under consideration in the
California State Senate (SB 118) that is attempting to transform
ESPC project development into the traditional "bid and spec"
procurement model. Senator Yee, and up-and-comer running for Mayor
of San Francisco, has introduced SB 118. He sees reforming ESPC as a
basic principle of good government, i.e. all public projects should
be competitively bid. We are undertaking an intense lobbying effort
to defeat or modify SB 118.
In Pennsylvania, we are seeing signs that the new Governor and
his Administration are pulling back from strong support of the GESA
(Guaranteed Energy Savings Agreement) program, under which more than
$500 million of ESCO delivered projects have been developed and
implemented.
In each state, we have assembled Briefing Books and are
mobilizing the ESCO industry. If you want to join these efforts in
Pennsylvania and/or California, please contact Don Gilligan at
donaldgilligan@comcast.net.
Federal Advocacy Activities
The general consensus is that the Congress will not consider
comprehensive climate and energy legislation in 2011. There is,
however, significant federal action on budget and administrative
issues that will impact ESCOs. NAESCO remains active on these
issues. NAESCO is also part of the national coalition that is urging
the Administration to use its authority in several areas to boost
energy efficiency.
Federal Budget
The new Republican majority in the House is determined to
significantly cut the federal budget, especially domestic
discretionary programs. The FY 2011 budget passed by the House,
which is now in the Senate, cuts the US DOE EERE (Energy Efficiency
and Renewable Energy) budget by about $800 million. It specifically
zeroes out funding for two programs - the State Energy Program and
the Weatherization Assistance Program - and leaves it up to DOE to
cut another $500 million from other programs. Since October 1, DOE
has been operating on a Continuing Resolution, which authorizes the
agency to continue its operations at the level of the FY 2010
budget, which was about $2.8 billion for EERE. Since we are already
about six months into FY 2011, and EERE has presumably spent the
first half of its budget, the $800 million of cuts would have to
come out of remaining half ($1.4 billion) - a cut of almost 60%.
The Senate and the Administration have said they are willing to
make substantial cuts. The Senate is talking about perhaps 3% across
the board, rather than the elimination or decimation of a few
programs. Intense negotiations are continuing. NAESCO is
participating in a national coalition opposed to the budget cuts.
For FY 2012, the Administration has proposed a budget that
expands efficiency programs in which ESCOs are interested, and
proposes several new programs, such as the Better Buildings
Initiative that would provide loan guarantees and enhanced tax
credits for commercial building energy efficiency retrofits. NAESCO
has met, at their request, with the DOE officials that are charged
with developing the legislation that will enable the President's
budget proposals. They are interested in structuring the legislation
to facilitate ESCO projects, because they believe that performance
contracting model is sustainable with a relatively modest amount of
government assistance.
Regulatory Issues - SEC and FASB
NAESCO has also been involved in two pending regulatory changes that
would significantly affect the ESCO industry if enacted in their
current form. The Federal Accounting Standards Board (FASB) is
proposing a new accounting treatment that would end operating
leases. The Securities Exchange Commission (SEC), under what they
believe is a mandate enacted in the Dodd-Frank financial reform
legislation, is proposing that ESCOs be required to register as
municipal securities advisors and be subject to regulatory oversight
appropriate to that status. NAESCO has worked extensively with its
member companies to formulate industry responses to these proposals.
This remains an ongoing effort.
Industry News
New Report From LBNL Examines States'
Use Of ARRA Funds
The Lawrence Berkeley National Laboratory recently released a report
examining how state energy offices chose to allocate ARRA funds
dedicated to energy efficiency and how those programs interacted
with the existing utility customer-funded programs. The authors
interviewed more than 80 representatives of State Energy Offices and
regulatory commissions, program administrators, and national
experts.
Key findings include:
- Most of the states in the study developed a diverse
portfolio of programs, partly in response to their unique
economic and political circumstances.
- More funds across all 50 states went to buildings energy
efficiency than to renewable energy (50% vs. 31% respectively in
the SEP program). Allocations varied by region (e.g., the
Midwest states budgeted 48% for energy efficiency and 27% for
renewable energy projects overall, with significant funding also
going to manufacturing retooling for clean tech). The bulk of
state-administered EECBG funds went to energy efficiency
programs, concentrated in the public sector.
- State energy offices allocated about $650M to revolving loan
programs that could potentially finance $200 million in projects
annually for the next 20 years or more as loans are repaid.
- A number of state/local government grantees used ARRA funds
to explore and test new energy efficiency program approaches
(e.g., comprehensive residential whole house programs that
served customers who heat their homes with fuel oil) and/or
target under-served markets and areas (e.g., rural regions) that
were not part of utility customer-funded programs. Successful
program concepts could ultimately be adopted by utility program
administrators.
- Reporting of savings attribution for projects that involve
both ARRA and utility customer funds has been a subject of
debate. States have taken a variety of approaches, from giving
full credit to utility programs, calculating proportional
credit, or strict separation of savings; this issue is still
unresolved in some states.
This research was funded by the U.S. Department of Energy's
Office of Energy Efficiency and Renewable Energy, Weatherization and
Intergovernmental Program and the Permitting, Siting and Analysis
Division of the Office of Electricity Delivery and Energy
Reliability. The study may be
downloaded
here.
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New Report Finds Energy Efficient
HVAC Systems Will Receive Major Investment From The Commercial
Market
According to a study by Pike Research, many building owners have
begun to manage energy cost as an asset, rather than a fixed cost
largely because of rising energy prices and the drive to reduce
greenhouse gas (GHG) emissions associated with building operations.
The report finds that the objective of most changes to HVAC systems
in the next five years will be to decrease energy cost using tools
like building energy management systems (BEMS), onsite ice-based
thermal energy storage systems, underfloor air distribution, and
chilled beams.
Pike Research forecasts the following trends in the domestic
energy efficient HVAC market:
- The market for geothermal heat pumps in commercial
buildings, including equipment and installation costs, will
total $13 billion between 2010 and 2015.
- Revenue from BEMS will increase from $0.9 billion in 2010 to
more than $1.3 billion by 2015.
- Investment in underfloor air distribution will total $1.2
billion during the period from 2010 to 2015.
- Ice-based thermal energy storage systems revenue will expand
from $17 million in 2010 to more than $190 million in 2015.
- Revenue for Western Climate Challenge-Certified Rooftop
Units will reach $26 million by 2015 under a baseline scenario,
with the upside opportunity of $40 million by 2015 under a more
aggressive forecast scenario.
Pike Research is a market research and consulting firm that
provides in-depth analysis of global clean technology markets. To
access the report, entitled "Energy Efficient HVAC Systems"
click here.
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New Report Finds Allowing
Utilities To Earn More For Helping Customers To Consume Less,
Benefits Both
The ability for utilities to profit from their energy efficiency
programs provides strong motivation to create, support, and deliver
successful programs according to a report released by the American
Council for an Energy-Efficient Economy (ACEEE). ACEEE found that
electric and natural gas utilities able to earn a financial return
on their achievements with customer energy efficiency programs are
likely to be industry leaders in terms of their financial support
for customer energy efficiency programs.
Regulators and policymakers in a growing number of states
have revised the traditional utility business model and adopted
"shareholder incentive mechanisms" that allow utilities to earn
financial rewards from successful energy efficiency programs.
ACEEE's new report, "Carrots for Utilities: Providing
Financial Returns for Utility Investments in Energy Efficiency",
highlights 18 states that have adopted and implemented
shareholder incentive policies and also highlights the elements
of successful approaches.
Some of the key findings:
- When states have set energy savings
goals for utilities under a shareholder incentive structure, the
utilities have thus far consistently met or exceeded them;
- There is widespread agreement among industry experts that
shareholder incentives are making efficiency programs a more
attractive investment opportunity for utility decision-makers; and
- States are rewarding utility programs that are cost-effectively
producing energy savings.
According to the ACEEE, while a shareholder incentive policy does
increase earnings opportunities for utility shareholders, the data
to date indicates that these incentives are not excessive relative
to the benefits provided by the programs. While these types of
policies are very important, the report stresses that a suite of
complementary policies need to be in place to properly encourage
utility commitment to energy efficiency.
The full report includes detailed discussion of the trends,
successes, and challenges states have faced in the implementation of
shareholder incentives. To download a copy of the report,
click here.
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New Report Finds Businesses
Seeing Savings From Emission Reduction Programs
According to The Carbon Disclosure Project 2011 Supply Chain
Report, businesses are now seeing a return on investment from
embedding sustainable practices into the procurement function,
indicating an emerging trend in supply chain engagement and
collaboration. More than 50% of large businesses and 25% of their
suppliers have seen cost savings as a result of carbon management
activities.
Eighty-six percent of companies saw commercial benefits from
working closely with suppliers to improve performance and mutual
return on investment, up from 46% in 2009. According to the report,
this jump is evidence of how sustainable procurement practices are
addressing climate change and could have major impact on the supply
chain, which for most companies accounts for at least 50% of carbon
emissions. With more than 79% of CDP Supply Chain member businesses
now employing a formal climate change strategy (up from 63 percent
in 2009), there has been a parallel shift in the key business
drivers for action within the supply chain, affecting how large
organizations and their suppliers engage and implement carbon
management processes.
Other findings:
- More than 50% of large businesses and 25% of their suppliers
have seen cost savings as a result of carbon management
activities
- More businesses are training procurement staff in this area
(up to 41% from 26% in 2009) and incentivizing staff through
awards and recognition (up from 11% in 2009 to 25%)
- Employee motivation and brand management have increased in
priority by around 50% of businesses; product differentiation
has also become an increasingly important objective (60%).
- The percentage of businesses which track and report supply
chain emissions more than doubled to 45% in 2010
- Carbon management criteria is increasingly part of supplier
selection - up to 17% from 11% and expected to be 29% in 5 years
The report was produced by management consulting firm A.T.
Kearney.
Click here to download the CDP 2011 Supply Chain report.
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Benefits Of Clean Air Act Rules To
Reach $2 Trillion, EPA Says
A report released by the U.S. EPA estimates that the benefits of
reducing fine particle and ground level ozone pollution under the
1990 Clean Air Act amendments will reach approximately $2 trillion
in 2020 while saving 230,000 people from early death in that year
alone. The report studied the effects of the Clean Air Act updates
on the economy, public health and the environment between 1990 and
2020.
In 2010 alone, the reductions in fine particle and ozone
pollution from the 1990 Clean Air Act amendments prevented more than
160,000 cases of premature mortality, 130,000 heart attacks, 13
million lost work days and 1.7 million asthma attacks. In 2020, the
study projects benefits will be even greater, preventing more than:
230,000 cases of premature mortality, 200,000 heart attacks, 17
million lost work days and 2.4 million asthma attacks
The report is the third in a series of EPA studies required under
the 1990 Clean Air Act amendments that estimate the benefits and
costs of the act. More information and a copy of the summary report:
click here.
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Executive Survey Finds
Perceptual Gap On Energy Efficiency
A global executive survey found a notable disconnect between the
perspective of the CEOs and less senior managers on the topic of
energy efficiency initiatives. Respondents below the CEO level were
significantly more likely (60.8%) to say that their company does not
do enough to integrate energy efficiency initiatives into business
strategy compared with 49.3% of CEO level respondents.
Other findings from the study indicate the dilemma faced by
executives in maximizing the effectiveness of their sustainability
programs:
- Firms find it difficult to assess their energy use and make
progress in reducing it. Only 26% of respondents say their
organization has conducted an energy audit; some 22% do no
measurement at all. Although experts agree that the best
efficiency strategies need to cut across functional lines, at
present few companies outside the largest organizations have a
chief energy officer coordinating such initiatives.
- Firms' supply chains are too often overlooked when assessing
energy efficiency initiatives. For many companies, particularly
retailers and those who outsource their manufacturing, total
energy consumption occurs mostly in the supply chain. Yet the
survey shows that most firms tend to focus internally, with few
looking outside their direct operations to their supply chain.
Just 8% said energy efficiency was a priority for suppliers, and
only 4% said they had worked with suppliers in this area.
- The incentives for energy efficiency vary significantly by
global region. Payback times and the price of electricity are
key considerations determining the willingness to invest. In
Europe the business case for saving energy is particularly
clear, since taxes are applied to electricity sales. This is
reflected in the survey, with more Europeans (almost 90%) than
North Americans (77%) citing cost savings as the biggest benefit
of energy efficiency
The survey was conducted in the fall of 2010 and included 278
senior executives, encompassing a range of industries. They were
evenly represented across North America, and Asia Pacific, with
slightly lower representation from Western Europe and other
territories. It included firms with revenue of at least $1 billion,
and 50% of the respondents had revenue less than $500 million. It
can be downloaded
here.
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Analysis Of 2005 Energy Policy Act Shows
Legislation Transformed The Efficiency Market
According to a new report issued by the ACEEE, energy efficiency
provisions in the Energy Policy Act of 2005 were largely successful
in expanding markets for money-saving energy-efficient products, and
in creating opportunities for continued bipartisan political action
on energy efficiency in later legislation. The Energy Policy Act of
2005, signed by President George W. Bush in August of that year,
included manufacturer and consumer tax incentives for energy-saving
technologies, minimum efficiency standards for appliances and
equipment, and a variety of other provisions to encourage energy
savings. It was the first major energy legislation since 1992, and
began a period of passage of proactive energy efficiency legislation
from 2005 to 2010.
The report also looks at lessons learned from implementation of
the 2005 bill. The most successful energy efficiency provisions had
good timing, stakeholder engagement and education, and appropriate
levels of funding. Other provisions, especially those with limited
or nonexistent funding or, where a loophole was built into the law,
did not fare as well.
The report, "Assessing the Harvest: Implementation of the
Energy Efficiency Provisions in the Energy Policy Act of 2005",
by the American Council for an Energy-Efficient Economy (ACEEE) can
be downloaded
here.
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Member Projects
Ameresco Awarded Contract By City Of
Portland, ME To Increase Energy Efficiency
Ameresco, Inc. announced that it has signed an agreement with
Maine's largest city to provide energy conservation measures to 45
Portland facilities including 30 municipal buildings and 15 public
schools. The $9.4 million project is estimated to save the city
nearly $17 million over the 15-year project term while reducing
Portland's carbon footprint. The buildings, include a nursing home,
the Portland Exposition Building, City Hall, Merrill Auditorium and
Portland High School. The comprehensive energy audit identified a
portfolio of ECMs, which include premium efficiency lighting,
lighting controls, energy management control systems , boiler plant
upgrades, pipe and equipment insulation, solar water heaters and
solar PV systems.
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Ameresco Enters ESPC with Shenandoah,
VA Public Schools
Ameresco, Inc. has entered into an energy savings performance
contract with Shenandoah County Public Schools, located 90 miles
west of Washington, D.C. in the northern Shenandoah valley of
Virginia. As part of the contract, Ameresco will provide energy
efficiency upgrades to 10 schools in Shenandoah County, as well as
the school division's bus garage and maintenance shop. The $7.3
million project is expected to provide annual energy savings of
$480,000 over a 16-year term. Ameresco will design and install
lighting controls, water conversation and boiler replacements.
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Mississippi's Monroe County School
District Selects Ameresco for ESPC
Ameresco, Inc. has signed an ESPC with Monroe County School
District to complete a major energy efficiency project for six
schools and facilities totaling 368,000 square feet. As part of its
first K-12 project in Mississippi, Ameresco will implement measures
to increase energy efficiency and upgrade important facility systems
on a budget-neutral basis, which will in turn save energy, reduce
costs and reduce the school district's carbon footprint. Ameresco
has guaranteed $90,470 in energy savings for the first year of the
twelve year program.
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APS Energy Services Installs Solar
Installation at Efficiency Upgrades at Oak Creek Unified School
District
APS Energy Services installed a solar installation, made up
of over 790 solar laminate panels at the Oak Creek Unified School
District located in Arizona. This installation will generate up to
100kW of electricity and result in an annual kilowatt hour reduction
of over 155,000 kWh. The solar installation is part of a larger
energy conservation project being implemented throughout the
district that includes comprehensive lighting retrofits, including
skylights for daylighting; replacement of HVAC units to higher
efficiency alternatives; a district-wide energy management and
controls system; and water conservation. This project is the most
recent in a line of projects that include classroom additions,
renovations and energy improvements that will total over $73 million
and take place over three phases.
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Chevron Energy Solutions and Morgan
Hill Unified School District Announce Completion of Solar Project to
Save District Funds
Chevron Energy Solutions and Morgan Hill Unified School District
located in Morgan Hill, California announced today the completion of
a solar program, which provides energy savings and solar education.
The program includes a 2.1 MW solar project that is expected to save
more than $8 million and offset approximately 80 percent of the
combined utility energy demand for two high schools. The district
anticipates it will reduce its purchase of utility power and in
turn, reduce carbon emissions by 1,900 metric tons.
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Chevron Energy Solutions and San
Dieguito Union High School District Announce Completion of 2MW Solar
Project
Chevron Energy Solutions and San Dieguito Union High School
District located in San Diego, California announced today the
completion of a 2MW solar project, which is expected to save the
district more than $10 million in energy savings over the life of
the project. The solar project is producing approximately 70 percent
of the electricity required at Canyon Crest Academy and La Costa
Canyon High School. By reducing its purchase of utility power, the
district is reducing carbon emissions by an estimated 2,200 metric
tons, equivalent to removing more than 400 cars from the road.
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Santa Monica College and Chevron Energy
Solutions Announce Completion of Energy Efficiency and Solar Project
Chevron Energy Solutions and Santa Monica College located in
Santa Monica, California announced its newly completed solar and
energy efficiency project, which is expected to save the college
more than $14 million over the life of the project. The project
includes a 408-kilowatt solar system, which provides electricity
through solar panels located on the top level of two parking
structures that is generating power for the two garages and a
significant portion of the Business Education building at Santa
Monica College. The college has also improved its energy efficiency
through the implementation of a campus-wide lighting retrofit,
variable speed drives, new heating hot water boilers,a fire alarm
system and emergency circuit upgrades all of which were part of the
CES project.
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Honeywell To Implement $2.5 Million
Building Improvements In Montgomery County, PA
Honeywell announced it is helping the Montgomery County
Correctional Facility in Eagleville, Pa., upgrade its
infrastructure, and save almost $2.5 million in estimated utility
and operating costs. The $2.4-million energy conservation and
building modernization program, which is supported by funding
received through the American Recovery and Reinvestment Act (ARRA),
will enable the 600-bed correctional facility to reduce water and
energy consumption, and strengthen safety and security for staff and
inmates. As part of the project, Honeywell will install a new water
management system for the facility that will enable prison personnel
to more effectively control water use. Honeywell will also install
high-efficiency water fixtures across the facility, including new
faucets and aerators in administrative areas, and toilets in
prisoner cells. Additionally, Honeywell will upgrade controls in the
kitchen to optimize vent hood operation and cut electricity use.
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Honeywell Awarded $213 Million
Contract With The GSA
Honeywell announced the award of a $213-million contract with
the U.S. General Services Administration to support the continued
development of on-site utilities and energy infrastructure at the
Food and Drug Administration (FDA) headquarters. The new 20-year
agreement will be funded from the energy and operational savings the
work produces. The project is expected to save almost 48 million
kilowatt-hours of electricity per year and reduce carbon dioxide
emissions by 24,000 metric tons annually. The centerpiece of the
project is the construction of a central utility plant that will
meet the heating, cooling and energy requirements of a
1.2-million-square-foot expansion for the FDA's Center for
Biological Evaluation and Research. The new central plant will
include two 7.5 megawatt (MW) dual-fuel turbine generators, a 4.5 MW
natural gas turbine generator, two 2.25 MW diesel standby generators
and a 5 MW steam turbine generator. It will also include three
2,500-ton chillers and a 2-million gallon thermal energy storage
tank, which can act as a backup for the campus if municipal water
services are temporarily lost. In total, the plant will be capable
of producing up to 250,000 MW-hours of electricity each year.
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Honeywell Helps Yonkers Housing
Authority Improve Facilities
Honeywell announced it has entered into an $18.8-million
energy conservation and building modernization program with the
Municipal Housing Authority for the City of Yonkers in New York. The
stimulus-supported program will help the housing authority improve
its facilities, energy efficiency and resident comfort while
reducing emissions and saving an estimated $1.4 million in annual
utility costs. It will also create opportunities for local
subcontractors, giving the city's job market a boost. The program
features a mix of conservation measures and equipment upgrades
including a new geothermal heating, ventilation and air-conditioning
system that will affect 19 developments and more than 2,000
apartments throughout Yonkers.
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Johnson Controls Launches Tampa
Area's Largest Solar Photovoltaic Installation
Johnson Controls announced the commencement of construction
for the largest solar photovoltaic installation in the Tampa,
Florida, area with the Tampa Housing Authority. The 330 kW
generating system will help provide clean, renewable energy to
supplement the energy requirements for the JL Young elderly and
disabled affordable housing development, saving the housing
authority an estimated $43,000 per year in electricity costs. The
$2.6 million project, funded in part by the American Recovery and
Reinvestment Act (ARRA), also includes roof repairs and long-term
roof warranties for all of the buildings in the development, which
includes 450 housing units. Work on the project is designed to
support the housing authority's commitment to creating a more
sustainable future, while stimulating the local economy.
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Maryland Transit Administration Awards
Pepco Energy $6.2 Million ESPC
Pepco Energy Services, Inc. has been awarded a $6.2 million,
15-year energy savings performance contract by the Maryland Transit
Administration (MTA). Pepco Energy is installing energy conservation
measures including lighting retrofits, occupancy sensors and
daylight harvesting. Pepco Energy will also install a rooftop solar
photovoltaic solar array for the Northwest Bus Division of the MTA.
The comprehensive energy conservation measures will affect more than
1 million square feet, which includes MTA property and building
space at various local bus, Metro subway and light rail and MARC
facilities.
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Wendel Energy Services Completing Water
And Wastewater Upgrades In Fallsburg, NY
Wendel Energy Services is completing construction on a
performance contract for the town of Fallsburg, New York to upgrade
the town's aging water and wastewater infrastructure. The project
includes replacement of an aging sludge boiler, as well as lighting
upgrades at two wastewater facilities. In addition, extensive
improvements are being made to the town's water distribution
infrastructure. The $2M Project will generate $3.6M in revenue over
the 15 year term of the performance contract.
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Member News
For a full list of all NAESCO Member News and Projects,
please
click here.
Johnson Controls Executive
Meets with State Governors to Encourage Support of Public, Private
Sector Energy Savings Projects, Job Creation
C. David Myers, president of Johnson Controls Building
Efficiency, recently met with a group of state governors attending
the recent National Governors Association meeting where he said that
Johnson Control’s current public sector building efficiency projects
in the United States are guaranteed to save more than $4.7 billion
in reduced energy, water and operational costs over the next 10
years. Myers said that in addition to the $19 billion in cost
savings that Johnson Controls has already achieved for both its
public and private sector customers, these projects have resulted in
the reduction of more than 15 million metric tons of carbon dioxide
or "greenhouse gas" emissions since 2000 - roughly the same level of
emissions generated from the energy use of 1.3 million homes in one
year.
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Schneider Electric
Announced Formation Of A Committee Charged With Enhancing The
Demand Response LEED Pilot Credit
Schneider Electric, Skipping Stone and the Demand Response
Research Center at Lawrence Berkeley National Laboratory announced
the formation of a committee charged with enhancing the current
Demand Response LEED Pilot Credit. The team will collaborate on
enhancing the credit to enable commercial building owners and LEED
green building projects to earn credits in LEED for enrolling in
utility or wholesale market demand response programs. The enhanced
program will provide LEED projects with demand response definitions,
participation options for buildings, and implementation and
documentation requirement guidelines.
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Toshiba International Corporation,
Announces Release of New Energy-Efficient Lamps
Toshiba International Corporation announced the release of
its energy-efficient lamps primarily for commercial use. These newly
updated LED lamps are designed to meet Energy Star® standards and
are currently undergoing testing for final certification. The lamps
include enhancements such as dimming capabilities and are now
available for purchase.
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Association Partners Upcoming
Events
AEE West
Coast Energy Management Congress
June 15-16, 2011 - Long Beach, CA
Comprehensive information about the conference, expo, concurrent
seminars, workshops and other special events, as well as
registration, sponsorship and more.
Information on Exhibiting at West Coast EMC
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NALMCO Annual Convention and Trade Show
October 16-19, 2011 - The Rosen Centre, Orlando FL
The NALMCO® Annual Convention and Trade Show is a three-day
event held annually in October. Anticipated attendance each year
exceeds 250, with over 40 exhibitors. Participants include
lighting management company owners, lighting maintenance service
representatives, lighting and energy consultants, electrical
contractors, energy service companies, specialty lighting
distributors, utilities, other lighting-related associations and
manufacturers. This educational event offers internationally
recognized lighting speakers, professional development
opportunities, special networking events, recreation, trade show
time, and one-on-one appointment with exhibitors.
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