The energy-efficiency industry is one of the only industries
to grow during the recession, hiring people at a time when
unemployment seems stubbornly stuck at levels not seen since the
early 1980s.
According to statistics from the Pennsylvania Department of
Labor and Industry, there are more than 106,000 Pennsylvania
jobs in the renewable energy and energy efficiency industries.
Energy efficiency is an economic winner. This is not wishful
thinking — it's based on actual market experience. The
commonwealth of Pennsylvania has the opportunity to create
19,000 high-paying jobs and provide $2 billion of upgrades to
its state and local government buildings without any tax
increases through a process called energy savings performance
contracting.
Under an energy-savings performance contract, energy service
companies provide technical, engineering and managerial
expertise while private sector financial institutions fund the
retrofit projects, which make buildings significantly more
energy efficient. The costs of design and installation of new
technologies as well as equipment upgrades are to be paid back
out of the energy savings over the life of the contract — at no
net cost to the government.
Every $1 million of ESPC project value is estimated to create
about 10 direct jobs in engineering, construction and equipment
manufacturing, professions hardest hit in this recession. The
multiplier effect of the income created by these direct jobs
provides another 10 to 12 imputed jobs per $1 million of project
value.
Energy performance contracting equals jobs, period. Not
maybe, not possibly, but certainty. This kind of economic growth
is the result of public policies such as Pennsylvania's
Guaranteed Energy Savings Act, which enables job-creating energy
performance contracting.
But now, it's all at risk. The Corbett administration is
evaluating GESA and has suspended projects under development.
This has put on hold the proven job-creating benefits of the
GESA that can continue putting Pennsylvanians to work in this
tough economic environment at no expense to the government.
At a time when all policies are being measured against the
yardstick of job growth, we encourage Gov. Corbett to support
GESA and allow energy-service companies to get back to business
putting people to work, saving taxpayers money and reducing
energy costs for the people of Pennsylvania.
NAESCO welcomes the following new members.
NAESCO has based its advocacy around the argument that the
SEC has misunderstood the intent of the Congress, which
specifically exempted engineering firms from the registration
requirement, and should apply a similar exemption to ESCOs.
NAESCO has succeeded in generating letters to the SEC supporting
its position from Senators Landrieu, Coons, and Bingaman in
addition to Senator Sherrod Brown of Ohio. NAESCO is currently
concentrating its lobbying resources in the House to generate
parallel support. In response to NAESCO's efforts, and the
efforts of other industries that are arguing that the SEC has
misinterpreted the intent of the Congress, the SEC has delayed
the issuance of the final rules, and NAESCO continues to work to
get the proposed rules modified. In recent testimony before
Congress, SEC Chairman Shapiro said that the proposed draft
overreached the intent of the Congress in a number of areas, and
that the SEC is reconsidering and rewriting a number of sections
of the rule.
Industry News
Study: Energy Efficiency
Loan Financing Proving To Be A Low Risk Investment With
Large-Scale Potential
Energy efficiency loan financing is
proving to be a stable, low risk investment with low default
rates and large-scale potential, according to a study released
by the American Council for an Energy-Efficient Economy (ACEEE).
A review of 24 energy efficiency loan programs finds extremely
low default rates ranging from 0-3% throughout the life of the
financing program. Default rates for efficiency loan programs
have also remained largely unchanged, even during the near
collapse of the real estate market over the past few years.
The study finds that energy efficiency loan programs finance
building upgrades by providing funding directly to building
owners or managers. These projects lower energy bills and reduce
annual energy costs by an average of 12-17%. Small commercial
banks and credit unions have led in offering these energy
efficiency loan products, often working with utilities as well
as local and state governments. The programs evaluated by the
ACEEE report have loaned over $1.5 billion. Through the use of
subsidies and energy program funds, interest rates for borrowers
averaged 3-5% annually.
To access the report, entitled What Have We Learned from
Energy Efficiency Financing Programs?,
click here.
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Survey Of Small Business
Owners Shows Strong Support For Energy And Environmental
Standards
A new survey finds that the majority of small
business owners widely support aggressive environmental
policies. Eighty-seven percent of businesses polled agree that
improving innovation and energy efficiency are good ways to
increase prosperity for small businesses. Seventy-six percent
support the Environmental Protection Agency's regulation of
carbon emissions for power plants, refineries and other
emitters.
The small businesses surveyed disagreed with claims that
environmental regulations are harming small businesses and the
domestic economic recovery. Only 13% believe regulation is the
biggest problem facing their small businesses. Conversely, 46%
believe their small business is hurt by uncertainty about the
future economy and 43% believe their small business is hurt by
the rising cost of doing business.
The poll was coordinated by Greenberg Quinlan Rosner Research
in partnership with Small Business Majority. A full copy of the
results can be found
here.
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Study Finds Most Americans Value
Energy Efficiency
A recent study reveals that most
Americans see energy efficiency as important and requires
action. Eighty-six percent of respondents deem energy efficiency
as important, of which nearly two-thirds said it is "very
important".
Respondents said that improving energy efficiency is
justified for three important reasons: the desire to reduce
expenses (97% said good reason, of whom 75% consider this to be
a very good reason); the guarantee of energy security (95% said
good reason, of whom 53% believe this to be a very good reason);
and environmental protection (91% said this was a good reason).
Although Americans are aware of energy efficiency issues, and
believe they are informed about the measures taken in their
country, their knowledge is actually somewhat limited. Three out
of four people claim to have heard that incandescent light bulbs
are being phased out, but only 46% know exactly what the
incandescent lamp phase out is. Similarly, 88% of respondents
have heard of the Federal and State Government tax incentives
related to home heating and ventilation systems and renewable
energy devices, however, only 34% of them know exactly what it
is.
Rexel, an electrical supplier, is responsible for the survey.
To access the full results,
click here.
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New York PSC Reauthorizes Efficiency
Standard Initiative
The New York State Public Service
Commission voted October 13 to reauthorize the State's Energy
Efficiency Portfolio Standard (EEPS) initiative. With the
Commission's decision, 100 electric and gas programs providing
benefits to residential, commercial, industrial and agricultural
customers are reauthorized for the four-year period beginning
Jan. 1, 2012 and ending Dec. 31, 2015.
"The State's energy efficiency program remains as critically
important for the State's energy future as it was when it was
created three years go," said New York Public Service Commission
Chairman Garry Brown. "Energy efficiency is the most
cost-effective, and most immediate, way to reduce the burden of
rising energy costs on residential and business customers. The
steps we have taken helped ensure that energy efficiency remains
an integral part of New York's clean energy economy."
The Commission's long-term goal is to reduce electric usage
by 15 percent of projected levels by 2015, with similar
reductions in natural gas usage, making EEPS one of the most
aggressive efficiency initiatives in the nation. With the
Commission's decision, 100 electric and gas programs providing
benefits to residential, commercial, industrial and agricultural
customers are reauthorized for the four-year period beginning
Jan. 1, 2012 and ending Dec. 31, 2015.
The total annual targets for electric programs equal 1.3
million MWh for 2012, enough to meet the electricity needs of
approximately 200,000 homes. The total 2012 electric program
budget is $368 million. The EEPS electric programs are on a
trajectory to achieve the Commission's goal, established in
2008, of reducing electricity use by 11.2 million MWh by the end
of 2015, enough to meet the electricity needs of approximately
1.73 million homes.
Meanwhile, the total 2012 targets for gas programs equal 3.4
million dekatherms, enough to meet the natural gas usage of
approximately 411,000 homes each year. The total 2012 budget for
gas programs is $154.4 million.
As part of its decision to approve funding for the EEPS
programs, the Commission decided to increase funding for
low-income natural gas programs administered by NYSERDA by $18.7
million, meaning that some $75 million annually will now be
directed toward low-income electric and natural gas programs
statewide.
In addition to reauthorizing programs, the Commission said it
will begin a process of considering whether the incentives
utilities' receive to participate in the EEPS initiative need to
be revised.
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New Study Finds
Emerging Technologies Increase Consumer Choice And Improve
Performance
A new study by the American Council for an
Energy-Efficient Economy (ACEEE) finds that new energy-efficient
water heating technologies and practices can save residential
and commercial buildings on average 37% more energy than
conventional technologies. These energy savings could be worth
nearly $18 billion.
Water heating is typically the second largest use of energy
in residential buildings, following space heating and cooling.
The study surveys and examines a suite of sixteen products and
services ranging from heat pumps (50-55% savings) and high
efficiency gas water heaters (30-39% savings) to best
maintenance practices for multifamily buildings (25% savings).
To read the report, Emerging Hot Water Technologies and
Practices for Energy Efficiency as of 2011,
click here.
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Study Shows Codes Really Can Improve
Energy Efficiency
A recent study by the Climate Policy
Initiative (CPI) finds that homes built when state energy codes
were in effect are, on average, 10% more energy efficient,
derive a greater share of their energy from natural gas and, on
a per-house basis, average 16% lower greenhouse gas emissions
than homes built in locations where there was no energy code. In
2008, that per-house reduction in emissions reduced overall
residential building emissions by about 1.8%, the study found.
Forty of the 50 states have adopted residential building
energy code, in most cases a version of the International Energy
Conservation Code, which is revised every three years. Some
states, notably California, Florida, Oregon, and Washington,
have adopted more-stringent standards.
Click here for the full report.
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Pew Study Finds Department of
Defense Accelerates Clean Energy Innovation
The U.S.
Department of Defense (DoD) is accelerating clean energy
innovations in an effort to reduce risks to America's military,
enhance energy security and save money, according to a report
released by The Pew Charitable Trusts. The study finds that DoD
clean energy investments increased 300 percent between 2006 and
2009, from $400 million to $1.2 billion, and are projected to
eclipse $10 billion annually by 2030.
The study finds that since 1985, DoD has reduced its facility
energy consumption by more than 30 percent. By insulating 9
million square feet of base structures in Iraq and Afghanistan,
energy consumption has been reduced by 77,000 gallons a day.
Another initiative is the Army's "net zero" program, which aims
to have each of six installations produce as much as they
consume in energy, water or waste by 2020, and two other
installations, Fort Bliss in Texas and Fort Carson in Colorado,
will become net zero in all three areas.
DoD has 450 ongoing renewable energy projects producing or
procuring 9.6 percent of its energy from clean sources in fiscal
2010. Renewable energy spending by the department is projected
to reach $3 billion by 2015 and $10 billion by 2030.
To access the report entitled From Barracks to the
Battlefield: Clean Energy Innovation and America's Armed Forces,
click here.
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Member Projects
Building Controls & Services, Inc. (BCS)
Helps Millcreek Community Increase Energy Efficiency
Millcreek Community Hospital has recently completed the
implementation of $2.3 million in facility enhancements designed to
improve operations, comfort, and energy efficiency in the hospital's
Peach Street facility. Building Controls & Services, Inc. (BCS)
is completing the work under an Energy Efficiency Upgrade Project
approved by the hospital's Board of Directors and partially funded
with $ 250,000 received under the Pennsylvania Conservation Works
Grant Program. BCS is projecting that the hospital will reduce its
utility costs by $179,000 annually once the implementation of the
improvements is completed. BCS will replace older mechanical
equipment and inefficient lighting, and install a specialized
control system to reduce energy consumption associated with the
hospital's heating and air conditioning systems.
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Building Controls & Services, Inc.
(BCS) Partners With Wattsburg Area School District To Reduce
Energy Use
The Wattsburg Area School District recently
completed the implementation of $1.6 million in facility
enhancements in the district's three facilities. Building
Controls & Services, Inc. (BCS) completed the work under a
Guaranteed Savings Performance Contract with the district. BCS
is guaranteeing that the district will reduce its utility costs
by almost $142,000 annually with the implementation of the
improvements. The district's facilities total more than 315,000
square feet and are situated on a rural campus of approximately
96 acres. BCS will replace antiquated boilers and inefficient
lighting, upgrade controls and recommission existing controls,
and upgrade mechanical systems including installation of
variable speed motor drives on fans and pumps as well as
reconditioning of unit ventilators. BCS will also install a
specialized control system to reduce energy consumption
associated with the district's numerous personal computers.
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Bellevue Union School District And
Chevron Energy Solutions Announce Solar Project Expected to Save
District $3.3 Million
Bellevue Union School District and
Chevron Energy Solutions announced the completion of a
618-kilowatt solar power generating system expected to save the
district more than $3.3 million over the life of the project.
The California school district is guaranteed to save more than
$750,000 in the first five years. The system is installed at
four elementary school campuses and reduces the district's
electrical utility costs by more than 80 percent. By reducing
its purchase of utility power, the district is reducing its
annual carbon emissions by 407 metric tons, equivalent to the
carbon sequestered by 87 acres of pine forest. Chevron Energy
Solutions designed, engineered and constructed the project and
will operate and maintain the solar system's performance for 10
years.
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Energi Participates In The PACE
Commercial Consortium Initiatives In Sacramento And Miami - Dade
County
Energi, a Massachusetts based Industrial
Reinsurance Company, has announced its participation in the PACE
Commercial Consortium (PCC). The consortium was put together by
the Carbon War Room, a nonprofit environmental group based in
Washington set up by Richard Branson, the British entrepreneur
and billionaire. The consortium is led by a company called
Ygrene Energy Fund of Santa Rosa, CA, which has already won an
exclusive contract to manage a retrofit program for a half-dozen
communities in the Miami area and is in the late stages of
completing a contract with Sacramento. Short-term loans provided
by Barclays Capital will be used to pay for the upgrades.
Contractors will offer a warranty that the utility savings they
have promised will actually materialize, and Energi will back up
that warranty. Those insurance contracts, in turn, will be
backed by Hannover Re, one of the world's largest reinsurance
companies. Experts assert the Miami - Dade County funding can
generate up to $1.8 billion in economic activity. The Consortium
sees the potential for an initial $100 million market in the
city of Sacramento, California to stimulate an additional $530
million in economic activity. The Consortium believes these
combined programs could stimulate $2.3 billion of economic
activity and more than 17,000 jobs.
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Honeywell To Reduce Energy Costs
At Alger County Facilities
Honeywell announced a
building modernization program to upgrade infrastructure across
three Alger County facilities in Munising, MI and save more than
$114,000 in annual utility and operating costs for the county.
The energy retrofit initiative, backed by guaranteed savings
through a 15-year, $1.4 million performance contract with
Honeywell, will include a variety of energy efficiency and
building system upgrades at the Alger County court house,
sheriff's office and emergency medical services building. As
part of the project, Honeywell will make improvements to HVAC
systems, including replacement of decades-old duct work and
installation of a new Honeywell ComfortPoint building control
system, which will centralize energy management across all three
facilities for greater temperature control. The company will
also install energy-efficient lighting, upgrade plumbing
fixtures to improve water conservation, make building envelope
improvements to reduce loss of treated air, and install a new
fire alarm system. All building upgrades are expected to be
complete by spring 2012.
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Honeywell Helps City Of
Huntington Reduce Energy Use
Honeywell announced
that the City of Huntington, WV has awarded the company a
$2.4-million energy conservation and building modernization
program that will decrease energy consumption and utility
expenses at the targeted facilities by an estimated 25 percent.
Funded through a 15-year performance contract, the program
includes a variety of facility and infrastructure upgrades that
are expected to cut almost $200,000 in annual energy and
operating costs.
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NORESCO To Upgrade University of
Massachusetts Dartmouth Facilities
NORESCO has
secured a $33.9 million guaranteed energy savings agreement with
the Commonwealth of Massachusetts Division of Capital Asset
Management and Maintenance (DCAM) for work at the University of
Massachusetts Dartmouth (UMD). The project includes installation
and performance term services, and according to DCAM, is the
largest initiative of its type ever executed by the
organization. Phase 1 contains 18 energy conservation measures
to address energy and water savings opportunities and critical
HVAC infrastructure improvements. Phase 2 contains the largest
and most complex energy conservation measure - a new gas turbine
combined heat and power system to replace UMD's old, inefficient
heating plant boilers. Both phases will receive substantial
financial incentives from the local public utility company. The
remainder will be paid from savings generated by the energy
conservation and facility modernization measures over a 20-year
period.
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NORESCO To Improve Buildings For
Alabama Department of Corrections
NORESCO has
increased its energy savings performance contract with the
Alabama Department of Corrections (ADOC) to include two new
phases of work totaling an additional $22.4 million investment.
Energy conservation measures at ADOC facilities in Phases 2 and
3 of the project are funded by excess guaranteed savings from
the original phase of work and incremental guaranteed savings
over the life of the 20-year contract. Phase 2 features
improvements that include HVAC upgrades, new domestic hot water
systems and new roofs at selected locations. Phase 3 centers on
improvements to buildings on the Wetumpka campus that ADOC
previously acquired from the Alabama Board of Pardons and
Parole, which will serve as a minimum security facility for
women. The Phase 3 project will decentralize heating and cooling
systems, improve water conservation and upgrade lighting. The
original $27.2 million contract between ADOC and NORESCO
included more than $11 million in funding from the American
Recovery and Reinvestment Act of 2009 (ARRA) through the Alabama
Department of Economic and Community Affairs. Key energy
conservation measures included central plant upgrades,
mechanical upgrades, lighting upgrades and water conservation
improvements.
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Pepco Energy Implements $34.9 Million
Final Project Phase For Prince George's County Public Schools
Pepco Energy Services, Inc. is currently implementing the
final phase of its $77 million energy savings performance
contract for Prince George's County Maryland Public Schools,
which was first awarded in 2007. This fourth phase will produce
$34.9 million in energy infrastructure improvements for 103
school facilities, generating approximately $3.4 million in
energy savings per year. This final project phase will continue
to allow Pepco Energy to help provide Prince George's County
Public Schools with greater cost and energy savings through
lighting upgrades, building automation controls systems and
integrated energy management solutions, which will result in a
better learning and work environment for students and employees.
This fourth phase will reduce annual emissions by close to
14,800 metric tons, increasing the school system's total
emissions reductions to nearly 20,300 metric tons per year. The
overall project will be completed in 2012. Additional energy
conservation measures include the installation of
energy-efficient heating and cooling systems, steam trap
replacements, energy-efficient transformers, domestic hot water
systems and a photovoltaic solar project.
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Siemens To Deliver Energy Efficiency
Makeover To DeSoto County, Mississippi
Siemens
Industry, Inc. announced that work under a recently-signed
$6.2 million performance contract for energy efficiency
improvements to 27 DeSoto County, MS facilities should reduce
the county's annual utility consumption 33 percent. Over the
15-year contract period, work by Siemens should reduce
electricity consumption by county buildings by 37 million kWh.
Identified as the largest municipal performance contract of its
kind in the state, Siemens teamed up with officials to secure $1
million in ARRA grant funding which the county leveraged to
self-finance the overall project. Siemens, serving as the
design/build general contractor, is managing the overall project
employing a local engineering firm and several local contractors
and suppliers to implement the energy saving improvements to the
county buildings. Among the array of energy and operational
saving improvements implemented will be a new chilled water
plant to supply chilled water to the jail, courthouse, and
administration buildings. The project's energy and resource
savings will yield the annual equivalent of $323,927 in avoided
utility and operational costs.
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Wendel Energy Services Awarded
Performance Contract For Genesee County, New York
Wendel Energy Services will soon start construction on a
Genesee County project that will provide facility improvements
across 10 facilities addressing energy conservation measures
including energy efficient lighting & lighting controls, high
efficiency boiler upgrades and variable speed drives. Acting as
the county's Grant Administrator, Wendel was able to assist the
county in obtaining more than $420,000 in ARRA Funding. Genesee
County will save over $320,000 in energy and operational savings
over the term of the project and reduce their carbon footprint
by more than 264,000 pounds.
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Wendel Energy Services Helps City of
Geneva Schools Become More Efficient
Wendel Energy
Services recently entered into a performance contract with
the City of Geneva, New York schools. The district wide project
will provide facility improvements at their two elementary
schools, middle school, and high school. Facility improvements
will include energy efficient lighting & lighting controls,
building management system upgrades, automated pool cover,
burner management controls and building envelope improvements.
The project will save the district nearly $2.4 Million over the
project term and reduce carbon emissions by 1.2 million pounds
annually.
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Member News
Ameresco, Inc. Acquires APS Energy
Services
Ameresco, Inc acquired NAESCO member APS
Energy Services Company, Inc. from Pinnacle West Capital
Corporation. APS Energy Services, headquartered in Tempe, AZ, is a
full-service company that provides integrated energy efficiency and
renewable energy solutions for a variety of institutional customers,
including state and local governments, school districts and
universities. With the acquisition of APS Energy Services, Ameresco
strengthens its presence in the Southwest.
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Fulham Launches FREELITE Brand Exit
Signage
The new Fulham FREELITE™ line of
photoluminescent exit signs requires no electrical power for
operation other than the normal building ambient light. FREELITE
technology absorbs light during the day, then the
self-illuminating, non-radioactive, tritium-free, fully
recyclable materials in the signs shine bright when the lights
go off. The company states that in addition to no power required
for operation, they also eliminate costly testing/maintenance,
are extremely easy to install and are not apt to fail in loss of
power situations. More information about FreeLite is available
at fulham.com.
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Dan Svejnar Joins Green Campus
Partners, LLC
Green Campus Partners, LLC is
pleased to announce that Dan Svejnar, formerly Managing Director
at Luminous Power Group has joined the company as Senior Vice
President, Project Development. At GCP, Svejnar will lead a
project development team focused on originating project
development opportunities and making principal investments in
cost-effective and practical energy projects in the Northeastern
region of the United States.
Focused for the last nine year on project and structured
finance, he was most recently based in Prague, Czech Republic,
where he founded Luminous Power Group, a solar project
investment group focused on assets in late stage development or
operations in the Central and Eastern European markets. At GCP,
Dan will lead a project development team focused on originating
project development opportunities and making principal
investments in cost-effective and practical energy projects in
the Northeastern region of the United States.
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