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NAESCO Newsletter

Second Quarter 2010

Featured Articles

  • Interview with Ogi Kavazovic of OPOWER

NAESCO Updates


Advocacy

  • NAESCO 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:

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For a full list of all NAESCO Member News, please click here.


Featured Articles

Interview with Ogi Kavazovic of OPOWER
 

Ogi Kavazovic, Senior Director of Marketing and Strategy for OPOWER is responsible for developing and coordinating the company's overall marketing approach.

Can you give me some background on OPOWER?
OPOWER is energy efficiency and Smart Grid software company that helps utilities meet their efficiency goals through customer engagement. Using behavioral science and data analytics, the OPOWER platform enables utilities to connect with their customers in a highly targeted fashion, motivating reductions in energy use and increased utility program participation.

At the Energy Efficiency Global Forum & Exposition, Adam Laskey, President and Founder of OPOWER indicated that OPOWER's advanced customer engagement products are motivating customers to make behavioral changes in regards to energy efficiency; does OPOWER have data to support this assertion?
Yes we do. We brought to life this concept of behavior based energy efficiency. We have found a way to message and measure people's energy usage which is a tremendous development. In terms of our ability to change behavior, we have abundant evidence. We have 15 live contracts right now and every month we measure the impact of that program. Before we deploy our Home Energy Reporting program in a new region, we randomly divide households into two groups with statistically equivalent demographic profiles and past consumption patterns. Both groups are exposed to the same local weather, energy prices, and economic environment. The only statistically meaningful difference between the groups is that the test group receives Home Energy Reports while the control group does not. We use baseline data to identify a test and control group with statistically equivalent usage patterns and histories. We then measure program impact against a group of nonparticipating homes to control for external factors that affect energy use. Finally, we measure energy use across thousands of households, over different lengths of time, to increase the statistical precision of our results. The data shows a 2-3% reduction in energy use among the customers receiving energy reports.

Has OPOWER seen an increase of energy efficiency retrofits among your customer base?
Specifically with retrofits, we don't have hard data but we hope to soon. We drive changes in behavior; one is the daily habit kind like changing your thermostat setting etc. The second phase of changes involves taking the people that have been diligent in reducing their energy to participate in utility programs and get energy audits. We have hard data that we have driven up program participation in utility programs by 30%.

Looking through your web site, it appears your products are geared more towards homeowners-does your customer base include buildings as well? Do you see OPOWER expanding their presence in that market?
Currently we are focused on the residential market and small businesses. In doing so we have been able to engage millions of people and change the way they use energy.

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NAESCO Updates

Advocacy

 
During the first five months of 2010, NAESCO concentrated its advocacy efforts on federal government energy efficiency initiatives, the emerging federal climate and energy legislation, and on the development of two major proposals to US DOE that, if funded, would significantly enhance the growth of the ESCO industry.

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. To date, the implementation of ARRA by the US Department of Energy (DOE) is lagging. DOE reports that it has paid out about 12% ($4 billion of the authorized $32.7 billion) of its ARRA funding. The "authorized" figure does not include the Loan Guarantee program, another $4 billion. (www.energy.gov/recovery/) Drilling down further to the programs that are administered by the Office of Energy Efficiency and Renewable Energy (EERE), the figures are $16.8 billion authorized and $1.5 billion spent (about 9%).

NAESCO recently presented a webinar on the ARRA funding for energy efficiency. The webinar recording can be found on the NAESCO website.

NAESCO ARRA Advocacy Activities
NAESCO has been working with the National Save Energy Coalition, which 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 also served as part of a small "SWAT Team" convened by US DOE to address the implementation of revolving loan funds and other financing 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 assembled guidance documents and best practices program guides that are 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 loan 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.

NAESCO is also part of a consortium that submitted proposals to US DOE in the competitive EECBG program described above. We won one of the proposals - in the Southeast - and are now waiting for the program sponsors to conclude their contract negotiations with US DOE and start program implementation. NAESCO's role will be to accelerate the use of ESPC in the region through a series of training sessions for public officials and potential ESPC customers.

The Jobs Bill
The Congress is now working on a set of smaller stimulus bills, which are currently called the Jobs Bills. There is a lot of maneuvering about the composition of the bills, which include extensions of tax credits (such as energy efficiency for new home construction) as well as the extension of unemployment benefits. 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 sell insulation and equipment to homeowners are supporters. Home STAR passed the House in early May as an authorization bill (no funding). It has been reintroduced in the Senate by a bi-partisan coalition. 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. That bill has now been introduced in the House. Both Home STAR and Building STAR are confronting a major issue, which in Washington jargon is called the "pay-fors," as in where does the $12 billion funding required by the two bills come from? The latest news is that the Home STAR bill may be attached to a pending "Small Business" legislative package, on the grounds that most of the contractors that implement residential energy efficiency projects are very small businesses.

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) a year ago on a very close vote. The Senate has been considering its version of comprehensive energy and climate legislation for about eighteen months. The first component, the American Clean Energy Leadership Act (S. 1462, or ACELA), passed the Senate Energy and Natural Resources Committee last June with bi-partisan support. 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 or the Kerry-Boxer Bill) in late September 2009 and passed the bill out of Committee without debate because the Republican members of the Committee boycotted the Committee meetings.

Shortly after the Committee action on the Kerry-Boxer Bill, Senator Kerry announced that he would work with Senator Graham (R-SC) and Senator Lieberman (I-CT) to draft a compromise bill that can draw broad bi-partisan support. After some months of work, Senator Graham dropped his sponsorship because of a dispute with Senate leadership over the legislative calendar and because the Gulf oil spill makes the enactment this year of enhanced off-shore drilling provisions, a major part of the compromise crafted by Senator Graham, highly unlikely. In mid-May 2010 Senators Kerry and Lieberman circulated draft bill language, but have not introduced a bill. The Kerry-Lieberman draft picks up several of the key concepts of the CLEAR bill (described below). A summary of the draft language is contained in the National Save Energy Coalition Webinar in which NAESCO was a presenter.

Senators Cantwell (D-WA) and Collins (R-ME) introduced a third bill in late December 2009. Their bill, which is entitled Carbon Limits and Energy for American Renewal (CLEAR) has many of the same GHG reduction goals as the Waxman-Markey 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. CLEAR would also restrict the market for allowance trading to about 3,000 entities that actually are subject to carbon regulation, eliminating what some observers feel would be a wildly speculative allowance trading market. It is interesting to note that the CLEAR bill is less than 40 pages long, whereas both the ACES and the Kerry-Lieberman bills are well over 1,000 pages long.

Click here to view the video that Senator Cantwell presented at last week's caucus of Democratic Senators.

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 a date certain 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 eventually enacted. Since the energy efficiency provisions in the ACES and ACELA RES mandates are actually lower than the Business-as-Usual case (because twenty-two states now have higher EERS mandates for their utilities), we are asking the Senate to enact a minimum 10% standalone EERS, independent of whatever they may decide to do with an RES. 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 creation potential of energy efficiency. A recent report from Georgia Tech and Duke Universities documents the fact that even in the South, the fastest-growing region of the country; an aggressive energy efficiency program can eliminate the need for new power plants for about the next twenty years. See the NAESCO website for a copy of the study.

NAESCO has recently introduced a new version of an EERS, which we are calling NEER, which is much more aggressive in pursuit of energy efficiency resources. NEER would require that 60% of all new electric system capacity be energy efficiency. We believe that NEER solves one of the energy and climate change major policy dilemmas - how to pay for the transformation of our energy system to a portfolio of Clean Energy resources. As documented in the recent McKinsey studies, the $680 billion of net benefits produced by a massive national investment in energy efficiency can cover the cost of the Clean Energy portfolio for at least the first decade of carbon reduction.

GHG Reduction Policy - Allowances vs. Rebates
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 the National Save Energy Coalition (NSEC), which is concentrating on communicating the job creation and economic development benefits of EE to the Congress and the public. NSEC is organizing a grassroots campaign of hundreds of energy efficiency and renewable energy providers 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. NSEC holds monthly webinars on the status of federal legislation. NAESCO is a presenter in all of these webinars.

Stalemate in the Senate
During the first three weeks of June, the leadership in the Senate attempted without much success to assemble "hybrid" energy and climate legislation that could be brought to the Senate floor for debate in mid-July. A ‘hybrid" bill would attempt to combine the best features of the various bills that have been developed during the past 18 months.

On June 10, Majority Leader Reid (D-NV) convened the Chairs of the Senate Committees that have jurisdiction over the various components of a comprehensive energy and climate bill to see if there is consensus about a bill that could muster the 60 votes necessary to stop a Republican filibuster and then pass the Senate. Apparently there was no consensus.

Also on June 10, Senator Murkowski (R-AK), the ranking Republican on the Senate Energy Committee brought a motion to the Senate floor to revoke the EPA's statutory to regulate CO2 as a pollutant. That motion was defeated, so the EPA is moving ahead with its plans to impose CO2 emissions regulations on power plants starting in January 2011. That keeps the pressure on the Senate to do something, or else concede the formulation of national policy to the EPA bureaucracy.

On June 15, President Obama, in his Oval Office address, tried to breath new life into the climate and energy legislation. Using the BP oil spill in the gulf as a take-off point, he urged the Congress to set a new national energy policy that weans the country from its dependence on petroleum.

On June 17, Majority Leader Reid convened the entire Senate Democratic caucus to determine if there is a consensus about how to advance energy and climate legislation. Senators Kerry (D-MA) and Lieberman (I-CT) presented their discussion draft bill, Senator Bingaman (D-NM) presented the ACELA bill that passed the energy committee with bi-partisan support a year ago, and Senator Cantwell (D-WA) presented the CLEAR bill that she and Senator Collins (R-ME) introduced last December. The Caucus apparently ran out of time to discuss the various bills and will re-convene on June 24. In the meantime, Senate leaders from both parties will meet with President Obama on June 23 to discuss the prospects for an energy and climate bill.

While the Democrats were trying to develop their consensus, Senators Graham (R-SC) and Lugar (R-IN) introduced what they are calling a Practical Energy Plan. Senator Graham had previously been part of the Kerry-Graham-Lieberman effort to write a consensus bill, but pulled out after the BP oil spill made it unlikely that a comprehensive bill that included expanded offshore drilling would pass. Senator Lugar, whose principal concern seems to be that the US is increasingly vulnerable because of its dependence on foreign oil supplies, had introduced a discussion paper last winter. Their bill features modest federal funding ($2 billion revolving loan fund) for EE retrofits of homes and buildings, substantial funding for the retirement of the dirtiest coal plants, and what they call a Diverse Energy Standard (as opposed to an RES or EERS), which requires that utilities acquire an increasing percentage of their supply (50% by 2050) from EE, RE, nuclear, clean coal, natural gas, etc.

Despite the lack of consensus among Democrats about how to move forward, and the seemingly intractable opposition of many Republicans to any far-ranging legislation {Representative Barton (R-TX) even objected to President Obama's demand that BP set aside a $20B fund to pay the costs of its oil spill}, Majority Leader Reid continues to say that the Senate will take up debate on an energy bill on July 12, when Congress returns from its July 4 recess. It appears that Senator Reid may lead with ACELA, which has bi-partisan support and perhaps the best chance of garnering 60 votes, and then permit a smorgasbord of potential amendments once the bill is in debate.

The NEER Standard
The apparent stalemate in the Senate on climate and energy legislation has created an opening for NAESCO to advance its NEER (National Energy Efficiency Resource) Standard, which would require that all utilities procure a minimum of 60% of new capacity from energy efficiency. NAESCO has received favorable response to NEER from a half dozen Senate offices and we are working to rally the energy and climate advocacy community in Washington behind the concept, which we think is a simple and workable approach to the stalemate.

NEER would enable the country to meet its initial CO2 target at a negative net cost, because energy efficiency more than pays for itself from energy savings while delivering CO2 reductions as a no-cost side benefit. NEER would also generate significant net benefits - about $680 billion according to estimates by McKinsey - that would help pay for the costs of a portfolio of clean energy generation including renewables, nuclear, and coal with carbon sequestration.

See the next article, which introduces the NEER Standard and its benefits.

Analyses of the American Power Act (Kerry-Lieberman)
Last week, while the Senate Democrats were working to reach a consensus on the elements of climate and energy legislation, several organizations released their analyses of the potential environmental and economic effects of the American Power Act (APA), the leading contender to be the climate component of a comprehensive bill.

  • The EPA analysis shows modest costs to households of $79-146 per year during the next two decades.
  • The ClimateWorks analysis, using a model developed by McKinsey, shows that households would save about $35 per year, the economy would grow by 440,00 jobs in the next decade and 540,000 between 2020 and 2030, GDP growth would average 2.3% through 2020 and CO2 emissions would be reduced by about 45% (compared to business-as-usual) by 2030.
  • The Peterson Institute analysis shows a net gain of 203,000 jobs in the years 2011-2030, with an increase in household costs of $75/year from 2011 to 2020 and a decrease in household costs of $144/year from 2021 to 2030.

The ACEEE analysis of APA shows household savings of $256/year in 2030, a decrease of 60,000 jobs in 2020 and an increase of 166,000 jobs in 2030. ACEEE also looked at two other scenarios that include much more EE than APA. Their "Expanded" scenario, which approximates the NEER Standard, would expand employment by about 373,000 jobs by 2020 and almost 700,000 jobs in 2030, and would yield household savings of about $81/year in 2020 and $673/year in 2030.

US DOE Proposals
In late April, US DOE announced the availability of $28 million in competitive grants for state energy offices through a Funding Opportunity Announcement (FOA). DOE is soliciting proposals for programs that will be sustainable and will dramatically change the market for whole building retrofits in commercial (including MUSH market) and residential buildings. DOE specifically calls out Energy Savings Performance Contracting (ESPC) as an example of a sustainable program. NAESCO has worked to assemble two major proposals.

The first proposal is from a group of seven states (NC, SC, GA, MS, AZ, NV and UT) that want to use DOE grants to substantially ramp up their public buildings ESPC programs. NAESCO has teamed on this proposal with NASEO and the ESC to offer the states a combination of training, Best Practices ESPC processes and documents, supplemental funding for staff positions (from DOE) and hands-on assistance in developing and implementing large projects. The seven states own or lease a total of about 300 million square feet of public buildings, which represents a $1.5-$2 billion market for ESPC projects that can be accelerated with grant funding from US DOE.

The second proposal is from NYSERDA, the New York energy office, which wants to promote ESPC in Class A office buildings in New York City. This market segment is a very rich target, but ESCOs have had very little success in the segment to date. NAESCO and NYSERDA believe that a combination of factors may allow us to develop a successful new ESCO business model for this sector. These factors include a new law that mandates the benchmarking of all large (>50,000 SF) commercial buildings and the public disclosure of those benchmarks; energy audits with public disclosure of the results for those buildings; a large turnover of commercial leases which were made during the building boom of the late 1990s; and, the pending refinancing of a large portion of the commercial building portfolio, with the opportunity to include energy efficiency upgrades in the new building mortgages. The project strategy is to recruit interested ESCOs to work with the 20 major commercial real estate (CRE) owners, and to use the DOE grant to develop marketing approaches, business models and targeted incentives that ESCOs cannot afford to develop on their own. We believe that this project, if successful, can be replicated in the commercial building market across the country, opening up a major market for ESCOs.

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REGIONAL

The most important regional initiative that NAESCO is working on is in the Northeast: the Regional Greenhouse Gas Initiative (RGGI).

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, presented to the Advisory Committee in January, is reduced to about $301 million because of 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 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.

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STATES

The news from the states is a mixture of encouraging developments and significant challenges. 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, 2009 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. Meanwhile, the utilities and other stakeholders continue to wrestle with the final evaluation of the 2006-2008 programs, which will determine the incentive compensation paid to the utilities for program management. Because of the difficulty of agreeing on this evaluation, the CPUC has opened a new proceeding to develop a new EM&V system for the next program cycle, which begins in 2013. NAESCO is a party to this proceeding, and will participate in the development of the new system.

Texas
The PUCT is considering a rule change that would significantly increase the goals for energy efficiency and demand reduction programs. NAESCO submitted comments in late March urging the PUCT to increase the goals and to change the basis of the goals from the current formula (percentage of load growth) to a percentage of consumption. The new basis would eliminate the volatility in the current system, in which goals and utility funding has been cut by the dramatic drop in load growth during the recession.

Massachusetts
The state is approximately doubling its energy efficiency programs, pursuant to the 2008 Green Communities Act. Utilities have filed implementation plans. NAESCO is working with the state Division of Capital Asset Management (DCAM) and the Division of Energy Resources to stream line the ESPC project development process and to revise the standard ESPC contract to maximize ESCO participation in Green Communities and ARRA program implementation.

New York
The Energy Efficiency Performance Standard (EEPS) programs, which approximately triples EE funding to about $922 million in the 2010-2011 program cycle and puts utilities back into EE program administration, are now beginning implementation. The PSC approved a total of 90 programs, 60 of which are in operation, with 23 producing savings. The balance of the programs are starting up this quarter. NAESCO is participating in the Evaluation Advisory Group, the successor to the SBC Advisory Group, which is setting program EM&V standards and protocols. Later in the year, the PSC will consider the renewal of the Energy $mart program, the main NYSERDA program that has now been operating for a decade.

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. 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. The utility programs are ramping up, and the legislature is considering a bill that would expand the utility RES, which includes energy efficiency.

Illinois
The expanded Illinois utility EE programs will start their third year of implementation in mid-June, with substantially increased budgets. 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 in commercial buildings. The issue faced by the Illinois program administrators is the issue NAESCO is trying to address through the NYSERDA proposal to US DOE described above: how do we develop an ESPC program model that delivers whole building retrofits in the commercial real estate market.

Michigan, Ohio, Indiana
These three Midwestern states have begun aggressive utility energy efficiency programs that illustrate the deficiencies of the proposed EERS provisions in the pending federal energy and climate legislation. Instead of the proposed 4-8% federal EERS, for example, Michigan is mandating a 10% EERS by 2020 and Ohio is mandating a 22% EERS by 2025.

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New Members

NAESCO welcomes the following new members.

Deltek - Deltek is a leading provider of enterprise software solutions designed specifically for project-focused businesses such as ESCOs. For more than two decades their software applications have enabled organizations to automate mission-critical business processes around the engagement, execution and delivery of projects. Deltek provides software solutions that help companies meet federal & state compliance requirements, segregate funding sources, and increase profitability on commercial and public sector projects. Deltek has a complete suite of software solutions to support each phase of the project lifecycle including financial management, project accounting, project management, human resources, operations, business development and business intelligence/reporting.

Energy Solutions Professionals - Energy Solutions Professionals (ESP) is a Kansas-owned and based, full-service energy solutions provider that addresses all aspects of client energy use through the Energy Efficiency Triad, an approach that encompasses energy supply, facilities/systems, and human behavior. We remain product, vendor and commodity independent, and maintain streamlined operations in an effort to provide exceptional, cost-effective, value oriented services.

Madico Inc. - Madico Inc has been developing innovative materials for more than a century. Madico's cornerstone products consist of a suite of window films designed to conserve energy, and provide protection and comfort in virtually any application - view control, commercial and residential energy control, safety and security, and automotive. The company's award winning specialty film products have been proven to increase protection and energy generation in the emerging renewable energy sectors. Madico's corporate headquarters and manufacturing complex are located in Woburn, Massachusetts.

San Antonio River Authority - The San Antonio River Authority (SARA) plans, manages and implements water-related programs and projects within the San Antonio River Basin. The State of Texas empowered SARA to preserve, protect and manage the resources and the ecology of the San Antonio River and its tributaries.

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Upcoming Events
 

Southeast Regional Meeting
September 23, 2010
Westin Hotel, Charlotte, NC

Improving Your RFP Evaluation Scores Webinar Series
Webinar #1: July 21, 2010, 2:30pm EST
Webinar #2: July 23, 2010, 11:00am EST
Webinar #3: July 26, 2010, 2:30pm EST

NAESCO's 27th Annual Conference
November 9-10, 2010
Arizona Biltmore Hotel, Phoenix, AZ
To exhibit or sponsor, click here.

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Industry News

Report Finds ESCO Industry Growing During Downturn In Economy
The U.S. ESCO industry grew at about 7% per year from 2006 to 2008, reaching total annual revenues of about $4.1 billion in 2008, according to a recently released report from Lawrence Berkeley National Laboratory (LBNL) and NAESCO. Looking ahead, the report authors estimate that the ESCO industry annual revenues will reach $7.1-7.3 billion in 2011, representing an average annual growth rate of 26% per year between 2009 and 2011 as federal, state and local government performance contracting programs continue to escalate ESCO market growth.

The report shows that ESCOs continue to thrive in the public/institutional market in the U.S., which accounted for 84% of ESCO revenues ($3.4 billion) in 2008. This represents a slight percentage increase from 2006 when 80% of ESCO revenues ($2.9 billion) were projects in public/institutional market sector.

The report, entitled "A Survey of the U.S. ESCO Industry: Market Growth and Development from 2008 to 2011" is based on a sample of 44 ESCOs. It examined current revenues by market segment, contract type and technology; anticipated revenues in the next three years; and, factors influencing trends in industry costs and savings. Authors of the report were LBNL researchers Andrew Satchwell, Charles Goldman and Peter Larsen, as well as NAESCO President Donald Gilligan and Executive Director Terry E. Singer. The study was funded by the U.S. Department of Energy. Click here to download a copy of the report.

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New Report Finds Enhancing Energy Efficiency Provisions in Pending Energy & Climate Legislation Will Create Jobs, Save Consumers Money & Reduce Fossil Fuel Dependence
A report released by the American Council for an Energy-Efficient Economy (ACEEE) shows that the Kerry-Lieberman American Power Act (APA) and the Senate Energy Committee's American Clean Energy Leadership Act (ACELA) could benefit from even stronger energy efficiency measures to create additional American jobs and consumer savings. The report shows that by enhancing the energy efficiency provisions in the legislation, the number of jobs created could nearly triple, energy savings could quadruple, and consumer savings could increase by about $200 per household per year. The analysis found that by 2030, enhancing the energy efficiency provisions in the two pieces of legislation would increase direct energy savings from energy efficiency provisions from 5% to 16%, drive up the number of new jobs created from just over 100,000 to about 360,000, and increase annual consumer energy bill savings from $256 to $448 per household. ACEEE's enhanced efficiency case included six changes to APA and ACELA:

  • Establishing a 10% Energy Efficiency Resource Standard (EERS), either separate from, or combined with, a Renewable Energy Standard (RES).
  • Devoting one-third of electric and natural gas utility allowances to energy efficiency.
  • Establishing industrial energy efficiency program funding at 0.25% of emissions allowances until 2030; and the establishment of a Revolving Loan Fund with 1/3 of the Energy-Intensive, Trade-Exposed Industries (EITE) allocations.
  • Continuing to provide emissions allowances for state energy efficiency and renewable energy programs through 2030, and increasing the percentage of emissions allowances to 6%.
  • Increasing energy savings in the transportation sector by targeting Highway Trust Funds and Transportation Investment grants in APA so that they achieve greenhouse gas reductions.
  • Closing a loophole in APA's Clean Vehicle Technology Fund that lowers the bar for diesel vehicles to qualify and including only vehicles that exceed federal fuel economy standards by at least 25 percent.

The full report, The American Power Act and Enhanced Energy Efficiency Provisions: Impacts on the U.S. Economy, is available for free download.

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DOE Announces Award Of Four New Projects for Energy Efficiency, Renewable Energy, And Water Conservation Upgrades At Federal Facilities
The U.S. Department of Energy announced four new agreements valued at a total of $52.5 million under its Energy Savings Performance Contracts (ESPC). Award recipients include Honeywell ($9.8 million), Schneider Electric ($17.9 million) and Johnson Controls who received two contracts ($17.9 million & $ 7.2 million). The new "task orders" will result in energy-saving upgrades at the Bureau of Land Management, National Wildlife Center, and two General Services Administration facilities.

The four new awards are for improvements to federal facilities which include installation of renewable energy systems; improvements to heating, ventilating and air conditioning systems; upgrades to lighting, boilers and chillers, and water and sewer systems; installation of building automation systems; and appliance energy-use reduction. Annual energy savings for these projects is projected to be in excess of 2,460,000 million BTU: enough energy to power 63,000 homes for a year. There are an additional 35 ESPC projects currently under development.

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A New Report Shows A Possible Clean Energy Future For U.S. Based on Aggressive EE Investments Even Without Legislation
According to a new report, the United States could move to a dramatically cleaner and healthier approach to meeting its electrical power needs. The report, prepared by Synapse Energy Economics Inc., outlines a "Transition Scenario" that would step up energy efficiency and the use of clean, renewable energy, allowing the country to retire all coal-fired power plants and over a quarter of existing nuclear reactors. The overall cost of the plan would involve initial costs over a business as usual scenario, but result in savings by 2040, according to the report.

Among the report's scenarios, aggressive investments in more efficient technologies in every sector could reduce electricity use by 15% from today's requirements or over 40% from a business as usual scenario. The U.S. could feasibly retire the entire fleet of coal-fired plants and build no new coal-fired generation. Tens of billions could be saved in avoided pollution control costs at the coal-fired plants retired between 2010 and 2020. At the same time, the U.S. could retire 28% of the nation's nuclear capacity. The scenario would cost an estimated $10 billion per year more than the current estimated cost in 2020, but it would save $5 billion annually by 2040 and $13 billion annually by 2050. For a typical residential consumer purchasing about 900 kWh per month, the 2020 cost increase would amount to about $2.20 per month. By 2040, the same customer would be saving about $1.50 per month and nearly $4.00 per month by 2050.

To download a copy of the report, entitled "Beyond Business as Usual: Investigating a Future without Coal and Nuclear Power in the U.S.", click here.

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Lawrence Berkeley National Laboratory Issues Measurement and Verification Study
The Lawrence Berkeley National Laboratory (LBNL), in collaboration with Itron and Schiller Consulting, has issued a new study focusing on evaluation, measurement, and verification (EM&V) issues relating to estimating savings and impacts of energy efficiency programs funded with ratepayer monies. The report identifies six EM&V issue categories that are important to address in order to improve EM&V practices and methods: Consistency in reported savings or load impacts; Measurement methods used to estimate net savings; Quality control and accuracy; Allocation of evaluation resources; Independence of program evaluators; and Integration of load impact results from energy efficiency programs into utility planning and forecasting.

The report offers the following recommendations for activities that can be undertaken to address the EM&V issues identified in this report:

  • Develop or enhance methods for estimating total program savings that includes both near term effects of equipment installation and longer-term behavioral impacts;
  • Develop and share best practices guides and case studies on a number of specific EM&V topics and disseminate information through webinars and regional seminars with state, utility, regulator staff and industry;
  • Develop accessible regional and/or national databases of standardized ex-ante savings estimates for energy efficiency measures;
  • Design and implement a national, searchable data base that provides access to energy efficiency evaluation plans and studies in various states;
  • Develop a short program savings reporting format (i.e. one page) for all states and regions to use in reporting program savings and seek voluntary adoption by region(s) via regional workshops or other strategies; and
  • Develop a glossary of standardized EM&V and measure, program, or portfolio terms for voluntary use by all states and seek voluntary adoption by region(s) through regional workshops or other strategies.

The report entitled, "Review of Evaluation, Measurement and Verification Approaches Used to Estimate the Load Impacts and Effectiveness of Energy Efficiency Programs," was funded by the U.S. Department of Energy's Office of Electricity Delivery and Energy Reliability (OE), Permitting, Siting, and Analysis Division. The report may be downloaded here.

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Report Signals Rebound in Energy Efficiency Spending
The recently released report, "Energy Efficiency Indicator (EEI)", published by Johnson Controls found that energy efficiency projects are on the rise. The EEI report surveyed more than 1,400 executives and managers in North America who are responsible for making investments and managing energy in commercial buildings. Despite limited capital, 60 percent said they were planning operating expenditures in efficiency programs over the next year, up from 55 percent in 2009.

Other highlights from the survey found:

  • Energy cost savings continues to be the most important factor for efficiency upgrades, with 97 percent of respondents reporting that they considered cost savings to be significant.
  • Fourteen percent of respondents said they had a publicly stated greenhouse gas reduction goal.
  • Seventy-five percent of those surveyed still think some sort of carbon legislation is likely in the next year in the U.S.
  • Nearly 50 percent require a less-than-three-year payback for energy efficiency projects.
  • Forty percent of those surveyed don't know or have not yet prioritized their strategies for reducing their organization's greenhouse gas emissions.
  • Energy efficiency in buildings was by far the top strategy to reduce carbon emissions.
  • One-third of respondents are aiming for green building certification for new construction projects.
  • Retrofitting lighting systems was the most popular efficiency measure.
  • The second most popular efficiency measure was educating employees.
  • Capital was the largest barrier to implementing energy efficiency programs

A copy of the Energy Efficiency Indicator, can be downloaded by clicking here.

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The UN Foundation Releases Report Indentifying Clean Energy Best Practices
The UN Foundation recently released a report entitled The Compendium of Best Practices, which highlights 20 successful US best practices to deploy energy efficiency and renewable energy. The practices are grouped into five broad areas: local policies, rules and regulations, approaches to financing renewable energy and energy efficiency projects, practices addressing utility regulation and transmission issues, state and local efforts to lead by example in their own operations, and three example of exemplary low-carbon cities: San Francisco, Austin and Seattle.

The report finds that state, provincial, and local governments have great influence in the global effort to address climate change by transforming the way energy is traditionally produced and consumed. By adopting innovative energy efficiency and renewable energy practices, these governments are working to support the industries that will reduce greenhouse gas emissions via reduced demand for fossil fuel derived energy, and at the same time are reducing energy costs and boosting local and regional economies.

All initiatives are highlighted for their success in creating favorable market conditions for energy efficiency and renewable energy, as well as for their replicability, relative ease of implementation, measured energy savings, ability to offset the need for conventional energy, cost effectiveness, greenhouse gas emissions reduction, and job creation. The full report can be downloaded for free by clicking here.

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IFMA Partners Released Study With Today's Facility Manager Analyzing Facility Management Staffing Trends
The International Facility Management Association (IFMA) and "Today's Facility Manager" have jointly released a new study which provides an overview of staffing issues within the facility management profession. Among the study's findings:

  • The majority of facility managers work in a service industry, followed by institutional and manufacturing settings;
  • More than half of facility managers manage multiple buildings in multiple sites, and many manage a combination of owned and leased space;
  • The majority of companies handle facility planning, project management, moves/additions/changes, space planning, and operations and maintenance in house;
  • Services most often handled by a third-party provider are janitorial, roads and grounds, construction, food services and security;
  • An average of 59.3 total staff work within each company's facilities department, including professional staff, skilled trade and non-skilled workers;
  • In the past year, facility managers report an annual pay increase of 2 percent for professionals, skilled trade and non-skilled workers; and four out of 10 respondents report that their total space managed has increased over the past year, indicating that facility managers are doing more with less staff.

The report is based on a survey of IFMA members and "Today's Facility Manager" readers. The survey assessed staffing levels for professional, skilled trade and non-skilled facility manager positions; measured total staffing levels; and identified factors that drive staffing such as industry sector, size and type of space managed, outsourcing practices, employee turnover and location. Study respondents include 1,414 FM professionals working in 134,900 locations/unique buildings, managing 9.91 billion square feet of space.

The study, entitled the "Facility Management Staffing Report", can be accessed by clicking here.

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Member Projects

Boston Housing Authority Partners With Ameresco To Complete $63 Million PHA Project
The Boston Housing Authority has partnered with Ameresco to implement $63 million in energy efficiency improvements. Ameresco will engineer, design, and implement water and energy conservation measures in approximately 4,300 apartments at 13 public housing developments throughout the city. The project will save the BHA more than $56 million in energy costs over the next 20-years, will result in hiring approximately 600 local union workers to implement the efficient measures, and reduce carbon dioxide emissions by 13,000 tons annually. Efficiency measures will include replacing water closets, showerheads and faucet aerators, installing energy efficient lighting, converting electric heat to gas, upgrading or replacing old central heating plants and installing co-generation and Photovoltaic Electric systems, Energy Star rated fiberglass windows, high reflective "cool" roof membranes and healthy apartment improvements. An extensive resident education, training, and employment program will complement and reinforce the program over the life of the project.

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Chevron Energy Solutions To Build 3.7MW Solar Project For CA High School District
Chevron Energy Solutions and East Side Union High School District in San Jose, California announced the start of construction on a 3.7-megawatt solar project that is expected to provide more than $1.5 million in budget relief to the district's general fund in the first year and $7.6 million over five years. It is anticipated that the project will reduce the district's electric utility costs by 30 percent and deliver $36 million in savings over the life of the project. The solar panels at six school sites will generate enough power to light more than 250,000 average-sized compact fluorescent light bulbs. The district will also reduce its purchase of utility power through this project, which is expected to reduce carbon emissions by more than 3,100 metric tons per year, equivalent to planting more than 980 acres of trees. Chevron Energy Solutions, will design, build, operate, maintain, measure and guarantee the solar energy system's performance for the district. The project will also help stimulate the local Silicon Valley economy by hiring more than 100 local union contractors.

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Chevron Energy Solutions and Marine Corps Logistics Base Albany Announce First Navy Landfill Gas Project
Chevron Energy Solutions and the Marine Corps Logistics Base (MCLB) Albany announced the start of construction for the Department of Navy's first landfill gas cogeneration project. The project will produce 1.9 megawatts of renewable electric power and steam by burning landfill gas collected from a nearby landfill. Chevron Energy Solutions will also complete industrial lighting retrofits in 82 buildings and expand the existing energy management control system. When combined with the cogeneration project, these measures will reduce the base's purchase of utility power and reduce MCLB's carbon emissions by 19,300 tons annually, equivalent to removing 16,000 cars from the road. The new facility will house a dual-fuel engine generator, a stack heat recovery steam generator and two dual-fuel boilers. The primary equipment can operate on landfill gas or natural gas, which provides energy security benefits. MCLB's use of renewable power will increase to 19 percent, which exceeds the EPAct of 2005 and Energy Independence and Security Act of 2007 mandate of 7.5 percent renewable power use by 2013. Chevron Energy Solutions and MCLB will share in the operation of the generator and steam-producing equipment. Through an Energy Savings Performance Contract (ESPC), Chevron Energy Solutions arranged the financing for the project, which is repaid through the energy costs avoided. The company also guarantees system performance for 22 years.

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Constellation Energy Partners With McCormick & Company, Inc. To Develop New Solar Power System
Constellation Energy and McCormick & Company, Inc. announced an agreement to develop a new 1.8-megawatt (DC) solar photovoltaic power system at the McCormick Distribution Center in Belcamp, Md. This will be the largest single rooftop solar installation in Maryland. Construction has been scheduled to begin in late June with estimated completion by the close of 2010. Constellation Energy will finance the project, including design and construction of the installation, and then own and maintain the solar power system for a period of 20 years. McCormick purchases energy produced by the solar installations hosted at its facilities. Constellation Energy expects McCormick to save an estimated $3.4 million in electricity costs over the term of the agreement. The McCormick Distribution Center solar project is currently designed to utilize 8,372 crystalline photovoltaic solar panels on the facility's 363,000 square foot rooftop. The system is expected annually to generate power equivalent to the amount of electricity used by 195 homes in a year.

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Control Technology Solutions Awarded Rantoul City Schools Project
Working together with Control Technology Solutions (CTS), the Rantoul City School District 137 is implementing green technologies that will result in more than $134,000 in energy savings in the first year alone. All five Rantoul campuses will benefit from a closed loop ground source geothermal HVAC system that will replace outdated and ineffective radiation units, ventilators, cabinet heaters, and window AC units. In total, 330 wells approximately 300 feet deep each will be drilled to affect geothermal heating and cooling, and an automated system will adjust building temperatures. CO2 sensors will control dampers that ventilate fresh air to classrooms. In addition, each school will receive additional upgrades, including new electrical systems, new energy efficient lighting, drop ceilings, and single pane window replacements which utilize low-E technology.

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Energy Systems Group Implements Permanent Energy Conservation Initiatives on the Kentucky Capitol Campus
Energy Systems Group is implementing energy efficiency retrofits at the Executive Mansion, the State Capitol building, the Capitol Annex and the boiler and chiller plants, both located behind the Annex. The upgrades are estimated to save more than $251,000 annually in energy and operational expenses and will reduce energy consumption by 22 percent. The project will cost $2.6 million and will be repaid entirely by the savings realized through the 24 percent reduction in utility costs. Energy Systems Group will perform the work through an Energy Savings Performance Contract with the Finance and Administration Cabinet. The energy conservation projects on the buildings of the Capitol campus include lighting upgrades; water conservation measures; vending machine controllers; chiller plant optimization; chemical-free water treatments at the chiller plant; replacement of steam traps; improvements in the air pressure of the mansion; automation systems in the Annex; and electrical transformer replacement.

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Grant Capital Management, Inc. Announces $53 Million Energy Performance Contract Lease-financing for the Housing Authority of Baltimore City
Grant Capital Management announced a $53 Million / 23-year Energy Performance Contract lease financing for the Housing Authority of Baltimore City (HABC). HABC will enter into a Lease Purchase Agreement to finance the purchase and installation of energy conservation measures in order to save energy costs and upgrade certain equipment. HABC, the fifth largest public housing authority in the country serving approximately 23,000 households throughout the city of Baltimore, is estimated to achieve more than $87 million in savings over a 20 year period.

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Buffalo Public Schools Joins With Johnson Controls To Modernize School District
The Buffalo School District entered into a 20-year multi-phase performance contract with Johnson Controls designed to generate $56 million in positive cash flow for the duration of the contract as a result of a broad range of improvements to generate energy and operational savings. To help the district pursue its sustainability goals, Johnson Controls collaborated with design engineers on the renovation of one of Buffalo's elementary schools which, as a result, achieved Silver point accumulation under the U.S Green Building Council's Leadership in Energy and Environmental Design (LEED) program. Under the terms of a service agreement that is associated with the performance contracts, Johnson Controls supports all the equipment and controls that were installed. At the same time, the district wanted to be self-sufficient with regard to operating and maintaining its facilities, so Johnson Controls developed and implemented training programs for its staff.

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Wilson County, TN Partners With Johnson Controls To Launch Energy Savings Program
Wilson County Schools, located in Lebanon, Tennessee, is embarking on a comprehensive energy savings program with Johnson Controls to address facility enhancements, including implementation of building technology upgrades and energy conservation measures which is expected to save the district more than $14 million in energy costs over 15 years. Facility improvements include the installation of more than 700 heating, ventilation and air conditioning systems in all buildings, and a geothermal heating system at Carroll-Oakland Elementary School. Rain sensor technology will be installed at the athletic fields of five schools to monitor irrigation needs. Additional water conservation measures include the installation of an irrigation well to supply water to the athletic fields, reducing the dependence on municipal water for field maintenance. Infrastructure improvements include the installation of a centralized building management system that will provide facility managers with remote monitoring capabilities and the ability to adjust temperature systems via an Internet connection. Lighting upgrades across all 20 facilities include the addition of more than 1,400 occupancy sensors and upgrades to more than 400 exterior lighting fixtures, as well as the comprehensive lighting retrofitting of four gymnasiums.

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NORESCO to Implement $7 Million in Energy Upgrades at Fort Worth Naval Air Station
NORESCO will partner with Naval Facilities Engineering Command Southeast to implement an energy savings performance contract at the Naval Air Station Fort Worth Joint Reserve Base. The project includes more than $7 million in facility infrastructure upgrades and affects more than 20 base facilities. The energy infrastructure upgrades to be installed by NORESCO will pay for themselves through more than $14 million in reduced energy, electric demand and operational costs over the 15-year project term. Upon completion of construction, facilities upgraded by the project are expected to consume 34 percent less energy. Carbon dioxide emissions are projected to decline by 4,100 metric tons each year, equivalent to removing approximately 800 cars from the road annually. Upgrades will be made to equipment and controls used for heating, ventilation and air conditioning and lighting. Specialized capacitor banks will be installed to improve the base's power distribution system and avoid penalties by the local utility. A 10-kW solar photovoltaic array will power lighting circuits and demonstrate the base's commitment to renewable energy.

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National Grid and NYSERDA Announce Joint Initiative to Help Hospitals Reduce Energy Usage
National Grid and the New York State Energy Research and Development Authority (NYSERDA) launched "Energy Efficiency For Health," a new partnership to help National Grid's hospital customers across New York State reduce their energy usage, save on operating costs and cut greenhouse gas emissions through more efficient use of electricity and natural gas. Under the new initiative, National Grid and NYSERDA will work together to provide hospitals with individualized and targeted technical assistance as well as up to $10 million in funding for energy efficiency initiatives that will generate as much as $5 million in annual energy savings. Energy savings support will be offered for lighting, heating, cooling, insulation, retrocommissioning, data center operations, and other energy-intensive operations.

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Trane Installs Upgrades At CA School District
Trane recently installed $8.63 million in upgrades in the Mesa County School District.which are anticipated to save the district more than $617,000 in annual energy costs, nearly 5.6 million kWh of electricity, and over 100,000 therms of natural gas annually. This is equivalent to the carbon that would be offset by 115,000 tree seedlings grown for 10 years. The renovations are also expected to save an additional $390,000 in operations and maintenance costs over the next five years. Improvements included replacing lighting throughout the district with high efficiency systems that require less energy while providing better illumination. These lighting improvements saved the district over $1.1 million through XCEL demand side management rebates. Other improvements included replacing aging electric ovens with high efficiency natural gas ovens and installing a building automation system to enhance and maintain comfort. Upgrades also featured boiler and HVAC retrofits to provide reliable and efficient heating/ventilation and to improve air quality in the classrooms. The district plans to launch a third phase of energy efficiency improvements with additional solar photovoltaic and water conservation projects currently in design. These forthcoming upgrades will be funded through the Governor's Energy Office with ARRA funds and through $2 million in low-interest Qualified Energy Conservations Bonds.

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Trane Completes $2.1 Million Energy and Infrastructure Improvements at Tonganoxie Unified School District
Trane recently completed a $2.1 million energy and infrastructure improvement at Tonganoxie Unified School District (USD) 464 . The completed infrastructure upgrades are expected to save $217,000 a year in operations, maintenance and utilities costs. Upgrades were needed throughout district buildings to improve thermal, visual and acoustic comfort, indoor air quality and aging infrastructure while reducing energy, operational and maintenance expenses. Improvements to the elementary school, the middle school and the district's two high schools as well as to an automated bus route optimization program were completed in August 2009. In addition, the district worked with Trane to engage students in making the elementary schools more energy efficient. The curriculum features in-depth lessons, including a school building energy audit and an assessment of the building's environmental impact.

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Wendel Energy Services Awarded NY Dormitory Authority Project
Under its Energy Performance Contract with the Dormitory Authority of the State of New York (DASNY), Wendel Energy Services was selected to perform an architectural-engineering study to assess building envelope and energy-related improvements to various buildings throughout the City University of New York's Queens College Campus. The project is being managed by Wendel's northeast regional office in Long Island, NY. One of the buildings identified as having potential for significant energy-saving upgrades was Kiely Hall, a 40 year old, thirteen-story, 230,000 square foot building comprised of administrative offices and classrooms. From a building envelope standpoint, the windows and roof needed radical replacement and/or repair. In addition, most of the mechanical systems and ancillary equipment were original and in poor working condition. Wendel Energy Services recommendations included a total refurbishment of both building envelope and all mechanical subsystems. Currently, Wendel Energy Services has completed the feasibility study for this $20 million dollar project and is entering the design phase.

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Wendel Energy Services Completes Energy Efficiency Upgrades For The City of Olean, NY
Wendel Energy Services recently completed energy efficiency upgrades for the city of Olean, N.Y. that will realize annual cost benefits of over $700,000. The project implemented facility and water system improvements as part of a $5.6M project that utilized energy and operational savings to offset project costs. In less than one year, Wendel Energy Services successfully replaced over 6,000 residential and commercial water meters to increase water and sewer revenues, and installed an AMR system which improved reading efficiency. The operational savings realized by the water system upgrades enabled the city to implement additional improvements such as pump replacements and controls upgrades at several pump stations, and HVAC, lighting and building envelope improvements at all of the city's facilities. Wendel Energy Services assisted the city in obtaining over $300,000 in energy incentives through NYSERDA programs.

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Member News

For a full list of all NAESCO Member News and Projects, please click here.

AECOM Acquires INOCSA Ingenieria, S.L.
AECOM Technology Corporation announced that it has acquired INOCSA Ingenieria, S.L. (INOCSA), a professional technical services firm with headquarters in Madrid, Spain. INOCSA also has offices in the countries of Romania and Bosnia and a total of approximately 550 employees providing services to public and private clients. Its services include architecture, design, engineering, program management and urban planning.

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Con Edison Solutions Receives "Green Business Award" From Johnson Country
ConEdison Solutions has won a "Green Business Award" from Johnson County in Kansas in recognition of its achievements in promoting sustainability and environmental responsibility at its Overland Park, Kansas office. ConEdison Solutions, whose national headquarters is located in Valhalla, NY, was honored for implementing an extensive recycling initiative that reduced the volume of its solid waste shipped to landfills by 73 percent. ConEdison Solutions also enacted a green purchasing policy and instituted a green cleaning and pest control program.

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Onset Announces Wireless Sensors for Energy and Environmental Monitoring
Onset recently announced the HOBO® ZW Series, a family of wireless data nodes for centralized monitoring of energy use and environmental conditions in buildings. HOBO ZW Series data nodes reduce the cost and complexity of data collection by measuring, recording and transmitting real-time energy use and environmental data to a central PC. Different from traditional data loggers, HOBO data nodes work together in a self-healing wireless network to transmit logged data to a PC at regular intervals. This eliminates the need of having to spend time retrieving collected data from individual data loggers deployed throughout a facility. The wireless nodes can measure temperature, relatively humidity, kilowatt hours, CO2, AC voltage, amps, gauge pressure, and a variety of other parameters.

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