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Fourth Quarter 2010

Featured Articles

NAESCO Updates


NAESCO Elects New Chairman and Officers

New Members

NAESCO welcomes the following new members:

Upcoming Events

Advocacy Report

Industry News

Member Projects

Member News

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


Featured Articles

Interview with Ambassador Bruce Oreck, U.S. Ambassador to Finland
 

Ambassador Bruce OreckNAESCO has had the pleasure of working with Ambassador Oreck over the last year to support his ongoing and tenacious efforts to encourage fellow Ambassadors to implement energy efficiency retrofits at their embassy compounds. NAESCO has met several times with the Ambassador and representatives from the Departments of Commerce and State to provide guidance and input. In addition, NAESCO, at the request of the Ambassador, produced a report on how ESPCs could be effectively utilitized to maximize dollar and energy savings at embassy facilities as well as on the aggregate economic impact of the investments in energy efficiency already made by ESCOs over the last quarter century. Ambassador Oreck recently visited NAESCO's offices to discuss his upcoming appearance at the NAESCO Federal Workshop on March 16th (for further information, see below) and he graciously agreed to sit down with us for the following interview.

Can you give me some background on the League of Green Embassies?
The League of Green Embassies is a global network of over fifty diplomatic missions formed to share opportunities and successes for conserving natural resources. The League of Green Embassies was started in 2006 by Ambassador Wood, the former U.S. Ambassador to Sweden, and was called the U.S League of Embassies as it consisted of only 54 U.S embassies at the time. Currently, the League has grown internationally and is now known as just the League of Green Embassies; our goal is to grow the League to include 100 embassies worldwide.

I understand you are currently leading the League - what exactly does your role entail?
My role involves working with organizations and industry groups like NAESCO to make energy savings solutions easier to implement. The League is intended to provide a platform to showcase US energy efficiency technologies and to encourage embassies to employ a wide menu of building efficiency options. We hope that a retrofitted embassy might also serve as a model for the host country of the economic and environmental benefits of energy efficiency.

Can you describe the long-term goals of the League of Green Embassies?
I think we have two key long terms goals. Goal one is providing cutting edge efficient technologies that improve the operations of U.S. embassies saving tax payer monies. Our second goal is to support an increase in market opportunities for US companies to supply innovative alternative energy and energy efficient technologies and services. The League of Green Embassies is working to encourage Ambassadors and their staffs to champion the use of energy efficiency by directly demonstrating in their embassy the economic case for energy efficiency.

Do you think ESCOs can help you reach those goals?
ESCOs provide the platform for effective solutions. ESCOs' expertise and wealth of resources allow building owners to implement solutions cost effectively and without the use of allocated capital which is generally a scarce resource.

Can you tell me about the current renovation of the U.S Embassy in Helsinki? What kind technologies are you utilizing?
We have implemented state of the art lighting systems, mechanical and controls systems, and upgraded our district heating and cooling systems. If you are willing to challenge conventional wisdom, there are many great economic opportunities available to pursue.

About Ambassador Bruce Oreck
Ambassador Bruce Oreck was sworn in as U.S. Ambassador to Finland on August 12, 2009. Ambassador Oreck obtained his Bachelor of Arts from The Johns Hopkins University, his Juris Doctorate from Louisiana State University and his Masters of Law (Taxation) from New York University. Mr. Oreck practiced law for over 25 years representing many of the largest companies in the United States. He is the author of several books on taxation and has had a successful career as a speaker and lecturer on topics ranging from taxation to the process of creative thinking. In addition to his private legal practice, Ambassador Oreck served as General Counsel and Executive Vice President for his privately held family business, the Oreck Corporation, until the sale of that business in 2003.

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NAESCO Updates

NAESCO Elects New Chairman and Slate of Officers

NAESCO membership elected a new Chairman and Officers at the NAESCO 27th Annual Meeting this past November. James J. Dixon, Vice President of Energy Services for ConEdison Solutions in Valhalla, New York, has been selected as Chairman. In addition, NAESCO named David Weiss, President and COO, Energy Services of Pepco Energy Solutions, as Vice Chairman. Michael Loth, Director - Solutions Marketing & Strategy of Johnson Controls, Inc., was elected NAESCO’s Treasurer, and Michael Kearney, Senior Director, Energy and Environmental Solutions of Siemens, was named Secretary.

As Chairman, Mr. Dixon directs the activities of NAESCO’s board of directors, oversees the organization’s committees, coordinates with NAESCO staff on advocacy issues, and helps plan national and regional industry conferences. He recently completed a two-year term as Vice-Chairman of the organization. In addition to his position with ConEdison Solutions, Mr. Dixon is an attorney and professional engineer in New York State. He is retired from the United States Army Reserve with the rank of major.

New Members

NAESCO welcomes the following seven new members.

Aireko Energy Solutions - ESCO Member -Founded in 1963 as a small general and mechanical contractor in Ponce, Puerto Rico, Aireko Energy Solutions has evolved into a integrated construction services and energy management company offering their clients a diverse range of energy efficiency and renewables energy services.

APS Energy Services - ESCO Member - Headquartered in Tempe, AZ, APS Energy Services is the full-service energy performance contracting subsidiary of Pinnacle West Capital Corporation (NYSE:PNW). APS Energy Services has engineered, constructed and provided guaranteed savings for a variety of Municipal, K-12 and Higher Education projects throughout the Southwest. APS Energy Services has offered energy efficiency services as well as operational savings performance contracting services for 11 years and is also experienced in implementing and customizing renewable energy solutions for their clients.

Carlyle Capital Markets (CCMI) - Associate Energy Affiliate Member- CCMI is a financial services company specializing in municipal leasing, project financing, and financial consulting for alternative energy projects. CCMI has provided financial consulting services for alternative energy projects since 2001. Their experience has been in wind, biomass to electricity, biogas to electricity, biochemical production, solar, and alternative fuels. Understanding the complexities of the alternative energy market, CCMI undertakes due diligence to optimize the financial structure of alternative energy projects, utilizing appropriate government programs and incentives, such as the DOE and USDA Loan Guarantee Programs and New Markets Tax Credits, to enhance project structure.

Clear Energy Contracting, LLC - ESCO Member - Clear Energy works with a broad spectrum of clients to create efficiencies in their warehouses, office buildings, factories, libraries, concert halls, retail outlets and other facilities. Headquartered in Fayetteville, Arkansas Clear Energy provides a comprehensive set of offerings that include: lighting, mechanical systems, building controls, building shell and renewable energy improvements.

Enviro-Max - Associate Energy Affiliate Member - Enviro-Max is a leading provider of comprehensive energy solutions, including engineering, design, consulting and implementation of energy-efficient projects, energy conservation, energy infrastructure outsourcing, power generation and energy supply and risk management. Enviro-Max optimizes the operation of facilities by implementing innovative technologies that will lower energy and operating costs, while improving the indoor environment.

Green Campus Partners LLC (GCP) - ESCO Member - GCP develops, finances, owns and operates energy efficiency, renewable energy and distributed generation projects serving end-use clients in specific market segments, including healthcare, higher education, government, public education and commercial/industrial. GCP's business model delivers Green Campus Solutions™ that address client key needs in realizing their sustainability goals: Energy Efficiency, Renewable Energy, Distributed Generation, Capital Raising and Consulting & Advisory services.

Novatech Energy Services Group Inc. (NovaTech ESG) - ESCO Member - For the past 15 years, NovaTech ESG has been a leader in providing energy conservation services. NovaTech ESG offers its clients innovative lighting, electrical and maintenance services such as solar energy -photovoltaic and thermal installations, lighting systems, electrical troubleshooting and repair, and project management. Headquartered in Arlington, TX. Novatech provides solutions to customers nationwide.

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Upcoming Events
 

Join us for the Sixth Annual NAESCO Federal Market Workshop!
March 16, 2011
Pepco Building
701 Ninth Street, NW
Washington, DC 20068

Who Should Attend?
Federal Energy and Facilities Managers, Federal Contracting and Procurement Officers, Federal Energy Program Managers, Federal Energy Policy Officials, ESCO Representatives, Utility Energy Efficiency Program Managers and Vendors active in the ESPC and UESC markets.

Workshop Session Highlights:

  • Assessing the Federal Commitment to ESPCs (Part I The Industry Experience)
  • Assessing the Federal Commitment to ESPCs (Part II The Federal Government's ESPC Profile)
  • Making US Embassies Energy Efficient: Leading by Example
  • HUD Works to Get its Energy Efficiency Houses in Order
  • What is the Impact of the Stimulus Money on State and Local Government Spending on Efficiency: What We Know So Far

Click here for more information!

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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.

During the past four months, NAESCO has been active in a number of new developments in federal, regional and state legislative and regulatory issues that affect the NAESCO membership. The highlights of these initiatives are summarized below. The full Work Plan is available for NAESCO Members on the Members Only website which can be accessed here.

Strategic Shift in NAESCO Advocacy Initiatives
As you are all aware, the efforts to pass comprehensive national energy and climate legislation failed in the last session of Congress. Meanwhile, energy efficiency programs at the state level, many of which are based on the Energy Efficiency Resource Standard that is the key goal for NAESCO federal advocacy efforts, continue to accelerate. In the fourth quarter of 2010, NAESCO therefore shifted its emphasis away from its focus on passage of federal energy and environmental language that actively promoted the use of ESPCs and the adoption of a federal EERS, and back to state advocacy efforts to support and grow state energy efficiency programs. This strategy was endorsed by the Board at its November meeting in Phoenix, and was refined into a Work Plan reviewed by the Board in late December.

NAESCO 2011 ADVOCACY WORK PLAN SUMMARY
The Work Plan is divided into three phases:

Ongoing Participation in State Regulatory Proceedings
This section of the work plan represents the ongoing NAESCO work of monitoring and participating in regulatory proceedings that govern utility and state-operated EE programs in the states that are most important to ESCOs. During the coming year, we anticipate that NAESCO will be concentrating its efforts in the following states:

  • New York - support renewal of the SBC program for a fourth 5-year term
  • New Jersey - provide input in the consideration and adoption of budget for 2011 EE programs + program transition rules
  • TVA - participate in the final development of the IRP process underway to include unprecedented amounts of EE
  • North Carolina - support passage of legislation to increase RES and EERS targets
  • Florida - provide input as state regulators approach completion of the EE program docket
  • Texas - support potential increase in EERS targets
  • California - provide input in the establishment of the rules (e.g., EM&V) for the 2012 EE program cycle

Preparation for ESPC Marketing Campaign in Target States
The 2010 elections have produced 29 new Governors; about 20 of whom represent a change in political parties in their respective statehouses. Each of these new Governors ran on a platform that promised job creation and economic development with no (or minimal) new state taxes. These platforms are virtually a prescription for the implementation and expansion of large-scale public building ESPC programs, which deliver energy savings, reduced environmental emissions, job creation, economic development and modernization of public facilities - all paid for from energy savings. But many of these new Governors, and their key staff, are unaware of the potential benefits of ESPC programs.

NAESCO plans to deliver a comprehensive ESPC briefing package to each new Governor during the first half of 2011. The amount of state-specific data that we hope to provide and the resultant level of effort will require support from US DOE, for which we have applied, and a continuation of NAESCO's cooperative efforts with NASEO and the ESC. Until we hear from US DOE about a firm funding commitment, we will limit our briefing efforts to a set of initial target states, which have been approved by the NAESCO Board. The target states and the rationale for their selection are listed below.

  • Pennsylvania - large EE market + new Republican Governor + defend best state buildings ESPC program ($530M to date) in the country
  • California - largest EE market + new Democratic Governor + no state buildings ESPC program
  • New Jersey - large EE market + influential Republican Governor
  • Georgia - large EE market + new Republican Governor + no state buildings ESPC program (state buildings ESPC authorized by Constitutional Amendment in November, 2010)
  • Michigan - large EE market + new Republican Governor + state buildings ESPC program just starting
  • Florida - large EE market + new Republican Governor + weak state buildings ESPC program
  • Ohio, New Mexico, Texas, Illinois, Missouri and Kansas were suggested by the Board as the next set of target states and we will endeavor to provide briefing materials as feasible subject to resource constraints.

Execution of ESPC Marketing Campaign in Target States
The final phase of the work plan will be to execute the ESPC marketing campaign by meeting with the Governors and/or their key staff in the target states to make the case for enhanced state and local government ESPC programs. NAESCO will attempt to engage the Governors in each target state as early as possible in their terms, but no later than the end of the first quarter of 2011.

The success of this marketing campaign will require the participation of the NAESCO members in the target states, similar to the effort (minus the campaign contributions) that NAESCO members made in Georgia this fall.

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Fourth Quarter State Advocacy Activities
During the fourth quarter of 2010, there were significant developments in three of NAESCO's target states - California, New York and New Jersey - which operate energy efficiency incentive programs that total more than $3.5 billion over the next few years. NAESCO is active in the proceedings in all three states to promote the interests of ESCOs and the entire NAESCO membership and support the expansion of existing EE programs.

California
Perhaps the most significant development in California in the near-term is the retirement of PUC Commissioner Dian Grueneich, who has been the lead Commissioner in the energy efficiency proceedings during the last five years. Dian had previously advocated for NAESCO and was familiar with the ESCO industry. Her replacement, and the replacement for Commissioner Bohn who is also resigning, have not been named. We are asking Governor-elect Brown to appoint new Commissioners who are knowledgeable about the energy efficiency and the ESCO industry, to minimize the learning curve that the new Commissioners will have to climb.

In the meantime, the complex California proceedings that govern the multi-billion-dollar energy efficiency programs continue, and NAESCO has been active in advocating on behalf of issues that matter most to ESCOs working in California. The key current issues are settling the results of the 2006-2008 program cycle, setting the standards for the EM&V of the 2010-2012 program cycle, and settling the level of utility earnings for both the 2006 and 2010 program cycles. NAESCO has focused its comments to date on the EM&V standards for the 2010 program cycle, particularly the issue of the custom measures (not part of the deemed savings database) that are a feature of many ESCO projects. The CPUC Energy Division has proposed a process for establishing the savings from custom measures that, in the opinion of NAESCO and other parties, is simply unworkable, and threatens to seriously affect the development of comprehensive projects. There was a CPUC Workshop on January 5 at which the Energy Division presented its revised proposed procedures for custom measures. We expect that the absence of Grueneich and Bohn and the gap in time before the appointment of the new Commissioners will affect the overall schedule of these proceedings.

New York
In late September, NYSERDA submitted a proposal to the New York Public Service Commission (PSC) for the extension of the System Benefit Charge (SBC) Program, which is due to expire on June 30, 2011. NYSERDA's proposal embodies a significant shift in the program, splitting the energy efficiency resource acquisition programs from the research and development programs. NYSERDA proposed cutting the funding for the energy efficiency programs by about $40 million per year, and making these programs subject to the same measure-based benefit/cost standards as the Energy Efficiency Portfolio Standard (EEPS) programs that are operated by the utilities. Funding for the R&D programs, renamed Technology and Market Development (TMD) is increased by the $40 million cut from the resource acquisition programs.

NAESCO, in its comments, argued against the shifting of funds from resource acquisition to TMD, and pointed out that shifting the administration of the resource acquisition programs from the SBC to the EEPS standard was unwise, given that NYSERDA's SBC programs are national models and the EEPS programs are not yet proven. NAESCO also argued for the reinstatement of a broadly representative stakeholder group to advise NYSERDA, and suggested that the TMD proposed program should be subjected to a more rigorous planning and review process.

On December 29,2010, the PSC issued a decision that continued the SBC funding at its currently level of about $180 million per year through 2016, approved the NYSERDA resource acquisition programs, and ordered the public review and planning process for the TMD programs that NAESCO suggested. NAESCO will participate in this review process with an eye toward identifying whether some shift in funding back to resource acquisition program is warranted.

New Jersey
During the fourth quarter, the New Jersey Board of Public Utilities (BPU) considered the 2011 budget of the New Jersey Clean Energy Program (CEP) and the proposal of the BPU CEP staff to transition the program from incentives to a self-sustaining and self-financing model. The budget for EE programs was left essentially untouched for 2011, and totals almost $300 million. NAESCO's comments supported the $54 million of funding for the Pay-for-Performance program that provides incentives to ESCO projects. The Transition Plan offered several alternatives for future CEP program administration. NAESCO, in its comments, supported a continuation of the BPU staff administration, unless and until the utilities are willing to take on the responsibility for meeting the state's aggressive EE goals, which would significantly increase the funding available for ESCO projects in the state.

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Fourth Quarter Federal Legislative Advocacy Activities
After the demise of any chance of passage of comprehensive federal energy and climate legislation in July, NAESCO shifted its federal advocacy work to participation in national coalitions with more limited goals.

Tax Credits
Part of the major tax bill that passed the Congress in December was a set of energy efficiency tax credits that are focused on residential retrofits and appliances. Incentives that would affect the ESCO markets were deferred for possible action in 2011. NAESCO participates in a coalition that lobbied Congress to pass these modest incentives.

Federal Loan Guarantees
NAESCO is part of a coalition that is developing a proposal to be circulated in the opening days of the 2011 session of Congress for a large-scale federal program that would guarantee loans to commercial buildings. In the current fiscal environment, the chances of enactment of this program may seem slim, but NAESCO believes that it is essential that we keep a set of aggressive energy efficiency programs in front of the new Congress.

Clean Energy Legislation
NAESCO is also participating in a coalition that is working to develop comprehensive energy legislation for the new Congress. The climate provisions that were part of the comprehensive bills in the last Congress have been eliminated, which appears to open the door for increased Republican Senate participation in the legislation, which may resemble the Clean Energy bill introduced by Senators Lugar (R-IN) and Graham (R-SC) last fall. This legislation included incentives for a range of "clean energy" technologies (EE, RE, nuclear, clean coal and advanced gas generation) that are designed to move the US to a lower carbon economy without caps on carbon emissions. Senator Shaheen (D-NH) is also working on a large-scale energy efficiency bill. At this point, we do not know if either of these efforts will yield a bill that has a realistic chance of passage. We will monitor the developments as the new Congress starts to work in early 2011 and participate as appropriate in lobbying efforts.

Federal EPA GHG Emissions Regulations
While the Congress has been unable to enact climate legislation, the US EPA, under federal court order, has promulgated national regulations to limit greenhouse gas emissions that go into effect this week. Recent news reports have noted that both Republicans and Democrats are being very circumspect in their public statements about the new EPA regulations, which are enforcement actions mandated by federal pollution legislation passed several years ago with strong bi-partisan support and confirmed by the Supreme Court in 2007. Initially the regulations will deal only with new utility and industrial plants or major facilities that are undergoing substantial renovation. But over the next few years, the regulations will gradually expand to cover most of the economy. The EPA has also acted swiftly to take over the permitting from states like Texas that refuse to enforce the new regulations. This EPA action has already been upheld by one federal court, though Texas has now filed a second lawsuit seeking to nullify the EPA takeover.

The EPA, in its policy statements and regulations, has emphasized that increased energy efficiency is the best way for facilities to comply with the regulations. We expect no dramatic short-term boost to the ESCO industry from the regulations, but if the sky doesn't fall on the economy in the next two years, the country will have made a policy shift that will provide massive long-term stimulus to the ESCO industry. NAESCO is active in national coalitions that are developing policy proposals that will make maximum use of this stimulus.

Federal EPA PCB Regulations
NAESCO recently met with the Administrator and senior staff of US EPA Region 2, who wanted to alert NAESCO and its members to recent EPA research and imminent regulations on PCBs in schools, and to ask ESCOs to help remedy the situation as part of their project development efforts. Essentially what the EPA has found is that the level of PCBs in the ambient air of many older buildings, including school buildings, exceeds the EPA recommended levels. The PCBs in the air apparently come from old fluorescent ballasts and caulking compounds. In two New York City schools, EPA determined that the retrofitting of fluorescent lighting systems brought the PCBs within acceptable limits. The EPA also told NAESCO that the parents of schoolchildren are becoming aware of this potential hazard, and have initiated several lawsuits to force the retrofit of school buildings. The regulations have now been issued and can be found here. The EPA press release announcing the regulations can be found on the NAESCO website. NAESCO expects that these regulations may provide another stimulus for schools across the country to proceed with ESCO projects.

SEE Action Network
NAESCO is also participating in the State Energy Efficiency Action Network (SEE Action) that has been convened by US DOE and US EPA to promote the implementation of state policies that procure "all cost-effective energy efficiency.” NAESCO is a member of the SEE Action Executive Group, as well as the Working Groups dealing with Finance, EM&V and Utility Motivation. The short-term goal of SEE Action is to identify five states that are likely to adopt aggressive energy efficiency policies and supply those states with the expert resources they need to move ahead. The schedule is for SEE Action to issue a number of policy blueprints during the first half of 2011. We will circulate these blueprints to NAESCO members when they become available.

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Industry News

RGGI States Net $48.2M From Auction of CO2 Permits
The Regional Greenhouse Gas Initiative (RGGI) - a ten state greenhouse gas (GHG) cap-and-trade program in the Northeast and Mid-Atlantic - auctioned permits for nearly 25 million tons of carbon dioxide in early December to electricity generators, netting $48.2 million dollars for the six states participating in this quarter's sale. Money generated from RGGI auctions is used to fund energy efficiency programs, among other energy related initiatives, in the ten member states. Currently, total regional CO2 emissions have decreased substantially and are actually below the capped level. As a result, 2009 GHG emissions in the Northeast and Mid-Atlantic were 33% below 2005 levels. A New York State Energy Research and Development Authority (NYSERDA) report attributes much of this decrease to weather and the economic downturn, but also cites increased efficiency measures in the region as well as moves by electricity providers to increasingly use natural gas. The consulting firm ICF International projects that the region's emissions will remain below the cap set by RGGI through 2030. RGGI is the first mandatory, market-based effort in the nation to reduce greenhouse gas emissions.

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Nearly 80 Percent of Federal Agency Purchasing Decision Makers Say Energy Efficiency Among Most Effective Ways to Meet Energy Needs, Reduce Costs, Lower Greenhouse Gas Emissions
According to a new poll, seventy-nine percent of U.S. federal government leaders charged with making recommendations or final decisions on agency purchasing believe that energy efficiency is among the most effective ways to meet energy needs, reduce energy costs and lower greenhouse gas emissions. The independent survey of 201 government leaders asked participants to rate the importance of energy efficiency within their agencies, rate the agencies' ability to comply with federal energy efficiency requirements, identify obstacles to that compliance and identify attitudes towards energy efficiency within the agency. The poll, also found that:

  • Two-thirds (total of 66 percent) of the decision makers see either cost savings (36 percent) or environmental benefits (30 percent) as the major driver of their agencies' energy efficiency efforts.
  • Approximately two-thirds (64 percent) of these federal agency decision makers believe that the current national economic environment and potential tightening of their agency's budget might have an impact on their ability to pursue energy efficiency projects. A third (32 percent) think the biggest obstacle to achieving their agency's federally mandated energy efficiency goals is a lack of funding.
  • Roughly two-thirds (65 percent) of decision makers believe their agency has a culture that encourages energy efficiency practices throughout all levels and across all departments; and about half (49 percent) report that the significance of energy efficiency in their operations has increased in the last two years.

The Zogby International poll was sponsored by the Alliance to Save Energy and NAESCO member Schneider Electric. For more information, click here.

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New Report Examines Programs Aimed At Changing Behavior Related to Energy
According to a new report from ACEEE, motivating customers and organizations to change their behavior can lead to significant energy savings. The report profiles a variety of programs that spur individuals and organizations to save energy by changing behavior in their homes, businesses, and plants. This report features profiles of 10 large, recent programs that have met a broad range of efficiency targets; from 2 to 20 percent of participants' energy use using a variety of approaches. The programs cover three sectors: industry, buildings and utilities, and transportation. The profiles describe some common program designs and recommend ways to align them with social science research. Making energy use visible, setting measurable goals, marketing relevant benefits, leveraging social norms and networks, promoting competitions and goal setting, and speaking to non-economic motivations all appear to increase energy savings.

Social science-based programs that seek to reduce customer energy use are attracting increased interest as governments, industries, and the public expand their energy efficiency efforts to accomplish environmental, economic, organizational, and personal goals. Key factors for success from these leading case studies include making energy use "visible" to customers, setting measurable goals, providing incentives and instructions for action, and providing feedback on progress towards customer goals.

The report, Visible and Concrete Savings: Case Studies of Effective Behavioral Approaches to Improving Customer Energy Efficiency, can be accessed here.

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Energy Efficiency Not Necessarily Low-Hanging Fruit, Warns Report
According to a report by the World Economic Forum, energy efficiency may not be quite the ‘low-hanging fruit' politicians promise because of the substantial gap between policy and implementation. The report states that energy efficiency could achieve 57% of the carbon abatement required on a global scale by 2030 and make substantial savings on the estimated $26 trillion needed to meet projected energy demand between now and then. But it warns that despite commitments to energy efficiency, both market and institutional failures are limiting its success.

The major challenges identified by the report that need to be overcome include access to capital for energy efficiency projects, a regulatory structure that provides less incentive for investment in energy efficiency, the absence of uniform measuring and reporting, a lack of skills and supply chains to deliver energy efficiency measures and no international standards for products.

The World Economic Forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas. The report, Energy Efficiency: Accelerating the Agenda, was developed in partnership with consultants Accenture and can be accessed here.

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DOE Launches New Energy Efficiency And Renewable Energy Advisory Committee
DOE launched its Energy Efficiency and Renewable Energy Advisory Committee (ERAC) on November 12. The new federal advisory committee reports directly to U.S. Secretary of Energy Steven Chu with advice on the Office of Energy Efficiency and Renewable Energy (EERE) portfolio. The 19 members of the committee have experience in a variety of sectors, including academia, technology development, project finance, economic development, and utilities, but the preponderance of the members are drawn from academia..

The ERAC will periodically review EERE's portfolio and will advise the Secretary on the completion of long-range plans, priorities, and strategies; program funding; and any issues of specific concern expressed by the Secretary or the Assistant Secretary for EERE. The committee is expected to meet twice a year, with meetings open to the public. The committee was established in accordance with the Federal Advisory Committee Act. DOE expects to organize various subcommittees under ERAC.

For a full list of members, see the DOE press release.

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IBM and Infineon Designing Chips For Zero-Watt PCs
A number of chip manufacturers and European research institutions have banded together to redesign microprocessors so that they consume less energy when in use, and leak less energy when in stand-by mode. Called Steeper, the research project aims to eliminate processor power consumption almost entirely when chips are in stand-by mode, as well as cut power usage by 10 times when in use. The three-year project will explore an alternative design to the standard designs used to build virtually all commercially available computer chips today. Unnecessary power consumption when in standby mode is of particular concern to the EU. Even when processors are in stand-by mode, they can still consume small amounts of power. The EU has estimated that devices in standby mode already account for about 10 percent of all energy use within homes and offices. The researchers hope the new design will allow for closing the transistor gate more tightly, thereby cutting power leakage, as well as require less voltage to open and close the gate. Specifically, the researchers want to reduce the chip operating voltage to 0.5 volt, or about an order-of-magnitude lower than today's processors.

The Swiss University Ecole Polytechnique Federale de Lausanneis coordinating the project, and IBM's Zurich research lab, Infineon Technologies and Global Foundries are contributing expertise, as are six European research institutions. The European Union's European Commission Seventh Framework Program is providing the funding. For more information about IBM's Zurich research lab, click here.

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New Report Examines Commercial Energy Efficiency Market
The Progressive Policy Institute recently released a policy memo that outlines the job creating potential of commercial building retrofits. The private construction industry, which has been slow to recover from the recession with one out of every four construction workers unemployed, would be buoyed by further investment in commercial retrofits, the report states. Over the next decade, the market potential for commercial building retrofits is projected to be $18 billion annually. Therefore, according to the report, the expansion of this market would create badly needed jobs for once of the worst hit industries.

Additionally, the memo examines the industry's major market and capitol barriers. The memo cites financing costs as one of the most significant obstacles. In order to overcome this barrier, according to the memo, innovative financing mechanisms are needed to encourage saving outcomes which are in the interest of the both the property owner and renter. Additional obstacles include a lack of incentive for utilities to invest in energy efficiency and ineffective efficiency labeling of commercial buildings.

To download a copy of the memo, Efficiency Boom: How Commercial Retrofits Can Power America's Economic Recovery, click here.

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Member Projects

AECOM Awarded $28-million Task Order For Water Reuse, Environmental Conservation Project Based In Amman, Jordan
AECOM Technology Corporation announced that it has been selected for a task order under the U.S. Agency for International Development's (USAID) Global Architecture Engineering Infrastructure Indefinite Quantity Contract. The $28-million, five-year task order pertains to USAID's Water Reuse and Environmental Conservation Project based in Amman, Jordan. Under the agreement, AECOM will work with USAID to increase industrial wastewater reuse, reduce energy consumption, improve regulatory enforcement, expand knowledge sharing, and reduce industrial pollution in the region.

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San Francisco Housing Authority Awards A New Energy Performance Contract To Ameresco
Ameresco, Inc. announced the start of an Energy Performance Contract for the SFHA. Over a 20-year period, the $30 million comprehensive energy and water conservation project is expected to deliver annual savings of approximately $3.5 million. Earlier this year, Ameresco and the SFHA signed an $11.7 million contract for related energy infrastructure improvements funded through the American Recovery and Reinvestment Act. The project will reach 37 developments and over 5,000 units throughout SFHA, and is expected to save the Authority over $60 million during the 20-year contract term. SFHA's housing sites will benefit from the new energy savings program, which includes such energy saving measures as new lighting upgrades, plumbing fixtures, boilers, water heaters, furnaces, decentralized heating fixtures, cogeneration, improved energy management systems and building ventilation, as well as new windows at some sites. Construction is expected to begin in January, 2011, and to be completed within two years.

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Ameresco Helps Greenville, South Carolina Go Green
Ameresco, Inc. has entered into a long-term Energy Savings Performance Contract with the City of Greenville, South Carolina. Ameresco developed and is now beginning the installation of a series of system upgrades that will save the City an estimated $330,000 annually over a 15-year term while reducing Greenville's carbon footprint. As part of its initial ground work for this project with the City, Ameresco evaluated and analyzed more than 36 municipal facilities for HVAC and lighting efficiencies as well as water conservation measures. Facilities that are part of Ameresco's ESPC include the Greenville Zoo, the Carolina First Center, and numerous administration office buildings. Construction is now underway.

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Chevron Energy Solutions and Huntington Beach City School District Solar and Energy Efficiency Project to Save District $15 Million
Chevron Energy Solutions and the Huntington Beach City School District announced the groundbreaking for an energy efficiency and solar project, which is expected to save the district more than $15 million over the life of the project. The project is the first energy efficiency and solar project at an elementary school district in Orange County. Chevron Energy Solutions designed and engineered the 615-kilowatt solar system and will install, operate, maintain and guarantee the system's performance, which is expected to meet more than 30 percent of the district's demand for electricity. The company is also implementing energy efficiency improvements through lighting system upgrades and through upgrades to heating, ventilation and air conditioning systems. The energy efficiency improvements are expected to reduce the district's annual energy consumption by nearly 30 percent and provide other benefits including improved lighting quality and aesthetics, reduced maintenance costs and consistent indoor climate quality. Through energy efficiency improvements and solar power generation, Huntington Beach City School District is reducing its purchase of utility power and in turn, reducing carbon emissions by more than 1,200 tons metric tons, equivalent to removing nearly 250 cars from the road or planting more than 270 acres of trees. The project is expected to be completed in 2011.

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Santa Monica College and Chevron Energy Solutions Announce Completion of Energy Efficiency and Solar Project
Chevron Energy Solutions and Santa Monica College recently held a dedication ceremony for its newly completed solar and energy efficiency project, which is expected to save the college more than $14 million over the life of the project. The project includes a 408-kilowatt solar system, which provides electricity through solar panels located on the top level of two parking structures that is generating power for the two garages and a significant portion of the Business Education Building at Santa Monica College. Chevron Energy Solutions designed, engineered, installed and operates the solar system and maintains and guarantees the system's performance. Santa Monica College has also improved its energy efficiency through a campus-wide lighting retrofit, variable speed drives, new heating hot water boilers, fire alarm system and emergency circuit upgrades that were also implemented by Chevron Energy Solutions. Through the energy efficiency improvements and use of solar, Santa Monica College is reducing its purchase of utility power, which is expected to reduce carbon emissions by more than 1,500 metric tons, equivalent to preserving 13 acres of forest from deforestation each year. The project is paid for exclusively by energy savings on utility bills. The $3.6 million project generates approximately 50,660 kilowatt hours each month and is saving the college about $8,100 per month.

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Chevron Energy Solutions Announces Solar and Energy Efficiency Projects In Orange County
Chevron Energy Solutions announced three solar and energy efficiency projects in Orange County, Calif. The projects are expected to save the City of Brea and two school districts more than $40 million over the life of the projects through energy efficiency improvements and the installation of more than 3 MW of solar power generation. By reducing the purchase of utility power, these three projects are expected to reduce carbon emissions by more than 88,000 metric tons, equivalent to the carbon sequestered by more than 18,500 acres of trees.

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New Jersey Housing Authorities Working With Constellation Energy To Improve Energy And Water Efficiency
Constellation Energy announced the completion of an energy and water efficiency project for the Asbury Park Housing Authority in Asbury Park, New Jersey. The initiative is one of six efficiency improvement programs developed by Constellation Energy for housing authorities throughout New Jersey. By implementing a number of energy and water conservation measures, the Asbury Park Housing Authority and other New Jersey housing authorities, including Irvington, Long Branch, East Orange and Trenton were able to realize a combined $2.5 million in estimated savings on annual utility costs. Constellation Energy is currently developing a performance contract with the Newark Public Housing Authority that, when implemented, will result in an expected $50 million in energy and water cost savings over the contract term. Constellation works with more than 40 housing authorities throughout the U.S. For the Asbury Park Housing Authority, Constellation Energy installed high efficiency lighting, including smart sensors to control lighting in common areas, and updated kitchen appliances that utilize less electricity and natural gas. Water conservation measures included low flow water fixtures in kitchens and bathrooms. Building envelope improvements, such as installation of Low-E coated windows, were implemented to reduce heating and cooling waste. A range of heating system upgrades were made to better regulate temperatures and generate heat more efficiently.

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Energy Solutions Professionals Works with Kansas University To Save $2 Million A Year
Facing rising energy bills, Kansas University sought Energy Solutions Professionals to help improve the efficiency of the campus. As a result, Energy Solutions Professionals is currently working on implementing $26 million worth of energy-efficiency improvements that should save the school about $2 million a year. During the next 15 years, KU will use its energy savings to pay back the cost of the projects. Some improvements include replacing urinals, toilets and faucets to conserve water, replacing the lighting and updating equipment in the university's steam plant. About $14 million of the work that the company has pledged to do will be at the university's lab buildings which traditionally cost three to four times more to operate than administrative or academic buildings. The company's goal is to lower energy use in the lab buildings so they are only twice as expensive.

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Consolidated Edison and NYSERDA Offer Program to Help Data Centers Reduce Energy Usage And Control Costs
Consolidated Edison Company of New York, the regulated utility, and the New York State Energy Research and Development Authority (NYSERDA) launched a new partnership to help data centers in New York City and Westchester County reduce their energy usage, save on operating costs and cut greenhouse gas emissions through more efficient use of electricity. New York State contains the second highest concentration of data centers in the country which are intensive consumers of energy. With many data centers reaching capacity within their existing footprints, businesses are faced with either optimizing their operations or designing and building newer, more efficient facilities. Under the new joint initiative, Con Edison and NYSERDA will work together to provide data centers in the Con Edison service territory with targeted technical assistance as well as $10 million in financial incentives tailored to support energy efficiency initiatives; the goal is to reduce energy costs by at least $8 million and achieving more than 55,000 MWh in annual energy savings.

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NYSERDA To Help Reduce Energy Costs and Greenhouse Gas Emissions At Plattsburgh International Airport
Plattsburgh New York International Airport began construction on the first of two solar heating system projects to be funded through the federal American Recovery and Reinvestment Act. The two systems, which will heat two hangars and an industrial facility, will reduce the airport's utility costs by $40,000 annually. In total, the airport was awarded more than $620,000 from NYSERDA on projects that will heat nearly 111,000 square feet of space using a 20,840 square feet solar wall. The wall will help the airport control its costs and minimize greenhouse gas emissions. The project being constructed now is a 4,000 square feet solar wall, called a Trombe wall, that heats indoor air using solar energy and fans pull the heated air into the building. Supported by $120,000 of federal funding, the airport's solar heating project is one of seven energy conservation and renewable energy projects in Clinton County (NY) receiving more than $1.1 million in federal ARRA support to help local governments and educational institutions reduce annual energy costs by hundreds of thousands of dollars. The funds also support two energy conservation studies that will help to identify additional projects where greater energy efficiencies and cost-savings can be achieved.

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Johnson Controls Signs Historic Contract For The Expansion Of Makkah's Holy Mosque in Saudi Arabia
Johnson Controls announced the signing of a contract for the expansion of the Makkah's Holy Mosque in Saudi Arabia. The contract will provide an integrated building management system including state-of-the-art heating, ventilation and air conditioning for the largest-ever expansion of the Holy Mosque. Built in the 7th Century, the mosque has been modified, rebuilt and expanded on a regular basis ever since. As a result of this most recent expansion, which began in 1982, the Holy Mosque can accommodate more than one million worshippers during the holy month of Ramadan and during the annual Hajj pilgrimage.

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Paul Smith's College Taps Johnson Controls To Implement Sustainability Initiatives
Paul Smith's College and Johnson Controls announced the launch of an energy conservation program across the campus. The program is expected to reduce greenhouse gas emissions from buildings on campus by 22 percent, or more than 1,000 tons of carbon dioxide, while advancing the college's commitment toward achieving carbon neutrality. The energy savings program includes building and lighting retrofits, weatherization measures and the installation of an integrated building management system, which is expected to save the school more than $4.6 million in energy costs over the next 15 years. The projected reductions are equivalent to saving more than 2,300 barrels of oil each year.

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Johnson Controls To Install Photovoltaic Arrays At 73 Utah Schools
Johnson Controls announced it has completed a solar installation at Salt Lake City School District's Hillside Middle School, the first of many schools participating in Utah State Energy Program's new Solar for Schools program. Solar for Schools is a statewide energy education initiative created to help Utah students learn the value of renewable energy technology first hand. The Utah State Energy Program selected Johnson Controls to oversee the design and installation of 73 solar photovoltaic arrays at schools throughout the state, with at least one array in each of the state's 41 districts. Johnson Controls will install 5kW PV systems as a part of the Solar for Schools program. The program is funded by a $3 million grant from the U.S. Department of Energy through the American Recovery and Reinvestment Act.

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Pepco Energy Selected by Cumberland County (PA) Housing Authority to Implement an ESPC
Pepco Energy Services, Inc. has been chosen by the Cumberland County Housing Authority in Carlisle, Pennsylvania, to implement a comprehensive energy savings performance contract. The $1.9 million contract calls on Pepco Energy to install numerous energy conservation measures in the housing authority's public family and elderly housing units. These measures will significantly improve the energy efficiency of the housing authority's facilities, and will affect a total of 30 buildings over the 15-year contract term. Services provided will include improvements to building envelopes as well as the installation of energy-efficient lighting, temperature-limiting thermostats, domestic hot water systems, high-efficiency boilers, hot water piping insulation, Energy Star® refrigerators and attic insulation. The Cumberland County Housing Authority will reduce energy expenses by more than $2.7 million over the contract term and these savings will be used to fund the energy conservation measures. The project will also reduce carbon dioxide emissions by more than 300 metric tons per year.

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Pepco Energy Awarded $3.9 Million Landfill Gas-to-Energy Project by Howard County, MD
Pepco Energy Services, Inc. has been chosen by Howard County, Maryland, to implement a design/build construction contract at the Alpha Ridge Landfill, located near Baltimore. The $3.9 million contract calls on Pepco Energy to design and build a new 1 MW landfill gas to energy generating plant at the Alpha Ridge Landfill. Methane gas, which is currently burned in a flare at the landfill, will now be used as fuel for a reciprocating engine and generator to produce 1 MW of electric power. The completed project will export electric power to the local utility grid and provide power for electric vehicles used at the landfill.

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Siemens Partners with Nashville Housing Agency to Improve Efficiency
The Nashville, Tennessee Metropolitan Development and Housing Agency operates more than 5,500 units of affordable public housing from which Siemens has identified more than $12 million in infrastructure improvements. The projects were leveraged in a successful application for ARRA grants and, with Siemens' assistance, the agency received more than $5.5 million for additional renewable and infrastructure improvements. The projects will pay for themselves through the more than $1.65 million in annual energy savings that Siemens guarantees. The following are among the most significant projects recently completed or currently underway:

  • Implementation of a state-of-the-art water conservation program
  • Upgrades to high-efficiency variant refrigerant volume heat pumps, instantaneous domestic hot water heating systems and lighting systems
  • Installation of 280 photovoltaic panels on two MDHA high-rise properties: 280 solar panels on Parthenon Towers and 300 more at the agency's Madison high-rise property

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Siemens Wins 38.5 Million GSA Task Order Award For Building Energy Efficiency Projects Across the Southwest
Siemens Government Services, Inc. (SGS), an integrator of Siemens' products, services and solutions to the federal government, announced that it recently received a $38.5 million task order award from the General Services Administration to implement energy efficiency improvements to 39 federal government facilities across the Greater Southwest Region (Region 7). The Department of Energy Energy Savings Performance Contracts will be managed and delivered from SGS through Siemens Industry, Inc.'s Building Technologies Division. During the 26-month implementation period, Siemens will implement renewable energy and building automation systems including solar photovoltaic generating technologies and sophisticated heating, ventilation and air conditioning, advanced irrigation and lighting control systems. Water-conserving plumbing and energy-efficient lighting fixtures, heating and cooling system upgrades and building envelope improvements such as thermal pane windows and insulation will also be installed during the construction phase. When the construction phase is complete (projected October, 2012), the project's comprehensive list of improvements are expected to yield the equivalent of $1.7 million in guaranteed energy savings in the program's first year, an amount projected to increase to an aggregate $2.6 million annually under the savings performance targets set by the individual performance contracts in Region 7.

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Wendel Energy Services Assists Town of Babylon (NY) with Energy Efficiency and Reduced Carbon Footprint
Wendel Energy Services has just completed an Energy Savings Performance Contract for the Town of Babylon, New York. The $3 million project will save over $4.6 million in energy costs for the town. In addition, the environmental benefits will reduce green house gas emissions by over 28 million pounds of carbon dioxide. A primary benefit to the town will be the completion of necessary capital improvements for the community without increasing their budget. Some of the key areas of focus for the project are a DDC Energy Management System, High Efficiency Lighting & Controls, Street Lighting Upgrades and Building Envelope Improvements. In addition to the creation of a turn-key project for the town, Wendel assisted the town in obtaining nearly $100,000 in incentives. The project is an integral part of Babylon's sustainability efforts to create a greener community.

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Member News

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

AECOM Completes Acquisition Of RSW Inc.
AECOM Technology Corporation announced that it has completed its acquisition of RSW Inc., an international engineering firm based in Montreal, Quebec, Canada. RSW is a 550-employee, leading service provider to clients in key end markets, including hydro power and transmission and distribution, which will bolster the company's already strong portfolio of services, particularly in its global energy business.

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Chevron Energy Solutions Receives Highest Level of Recognition from OSHA's Voluntary Protection Program
Chevron Energy Solutions announced that its operation of the Central Utility Plant at Fort Detrick has earned Star Status from the Occupational Safety and Health Administration's (OSHA) Voluntary Protection Program (VPP). The Star VPP is OSHA's prestigious safety and health certification that recognizes employers and workers in private industry and federal agencies who have implemented exemplary occupational safety and health management systems and maintain injury and illness rates below national Bureau of Labor Statistics averages for their respective industries. Chevron Energy Solutions designed, constructed, operates and maintains the Central Utility Plant for Keenan Fort Detrick Energy LLC to support the U.S. Army Garrison and National Interagency Biodefense campus (NIBC) at Fort Detrick, located in Frederick, Md.

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Onset Announces Energy Monitoring Training Course
Onset announced a new four hour online professional training course on Data Loggers for Performance Monitoring. Presented by Mark Stetz, P.E. of Stetz Consulting, LLC, participants will learn how to identify necessary variables to measure for specific applications, deploy data loggers, and interpret collected data to understand building system behavior and identify problems. Four GBCI (Green Building Certificate Institute) CE hours will be awarded upon completion of the course. The online course will be held in two, 2-hour sessions on January 25th and 27th, 2011. To learn more or register, please click here.

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Solutia's Performance Films Segment Receives Grant to Invest in Energy-Efficient Building Technologies
Solutia Inc. announced that its Performance Films segment was recently awarded a $356,000 American Recovery and Reinvestment Act (ARRA) grant, entitled "Recovery Act: Advanced Energy Efficient Building Technologies,” from the U.S. Department of Energy. The awarded funds have been earmarked for the continued research, development and commercialization of high-performance, energy-efficient retrofit window film technology for residential and commercial buildings. This technology involves new film coatings and techniques designed to improve energy efficiency in every climate zone, specifically films with low emissivity (low-e) properties, a measurement indicating a window's ability to minimize far-infrared heat transmissions, which produces significant improvement in a window's insulating properties, potentially resulting in both winter and summer energy savings. Solutia is a market leader in the development of these films under the EnerLogic™ trademark. Solutia announced as well that it has released a white paper with details regarding EnerLogic™ window film, a window film technology for residential and commercial buildings which can be found at www.enerlogicfilm.com.

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