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NAESCO Newsletter

March 2011

Featured Articles

NAESCO Updates


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.

Association Partners Upcoming Events

 

Featured Articles

Interview with John Johnson PE, LEED AP, ConEdison Solutions' Senior Project Developer on the Evolution of the ESCO Industry
 

John Johnson, PE, LEED AP, is ConEdison Solutions' Senior Project Developer and has over 30 years' experience with educational, commercial and industrial energy project design and implementation. Mr. Johnson has managed over $100 million in energy design, engineering, and construction projects that have qualified for over $10 million in utility rebates. He has implemented woodchip boiler plants, cogeneration systems, energy management system upgrades, and industrial process improvements. He earned degrees in Mechanical Engineering and Business from the University of Illinois.

What attracted you to the ESCO Industry?
I was attracted to the great diversity of technologies and activities that energy performance contracting involves. At ConEdison Solutions, we deal with virtually every system within a building and engage in everything from brief walkthroughs to in-depth analysis of very complicated systems - like waste water treatment plants, central chillers and boilers, and industrial refrigeration systems. I also enjoy the people aspects of what I do. I enjoy helping customers solve problems and like that when they see me walk in the door, their faces light up because they know I am going to solve their problems and making them look good to management. Last, but not least, the environmental benefit of what we do is important to me and makes me feel good about what I do for a living.

How have you seen the industry change over the last 30 years?
The Internet and the wide availability of software tools have completely changed how we access information about energy-saving technologies, equipment data, weather data, and, especially, data about customers' energy management systems and equipment. When I started out, all of the information I needed to do an energy audit was on paper, so I had (still have!) masses of reference manuals and data sheets. Nevertheless, I never seemed to be able to find the one page of information that I needed. Today, no matter how obscure a piece of equipment might be, I can usually download information, performance curves, and drawings in a matter of seconds. Similarly, instead of referring to the old, blue "US Air Force Weather Data" manual for temperature bin data, for example, I can get the latest temperature data for any location in the world electronically and organize it any way I need to.

Energy management systems have also changed quite a bit in their ease of use and Internet connectivity. We can now log in to see our customers' buildings and troubleshoot problems without traveling to the site. Most of the functions the systems perform haven't changed much over the years - the best savings still come from turning off equipment and controlling temperatures and outside air quantities - and these functions were around in the 1960's. Carbon dioxide sensors are new and these have helped us gain real-time knowledge about what is going on in a building's ventilation systems.

Variable volume system and variable speed drives have become much more refined and reliable - and provide additional insights into how specific areas of the buildings are operating. None of these technology changes, however, has replaced the old-fashioned requirement that our ConEdison Solutions engineers be extraordinarily detail-oriented and wear out some shoe leather at a job site to really understand what is happening and what we can do to help customers save energy.

Given the depth of your experience in the ESCO industry, what do you think are the most promising technologies or innovations today?
Two areas come to mind - one physically oriented and one technological.

ConEdison Solutions installed woodchip boilers at two schools in Rhode Island, the first permitted in the state. They burn wood waste from local lumber mills. The cost of delivered heat from these systems is incredibly low - around the equivalent of 75 cents per gallon of fuel oil - and the economics and environmental benefits are outstanding. These boilers burn very cleanly and passed rigorous environmental tests for particulates, carbon monoxide, and many other pollutants. After a few initial glitches, the systems have been operating quietly and efficiently by local custodians for the past few years. These systems are a combination of high-tech computerized controls and low-tech material handling systems that move woodchips from bins to burners. The only "waste" product is wood ash, which schools either give to local farmers or spread on lawns. They have the greenest grass of any school in Rhode Island!

At the other end of the spectrum, I see "smart" electric meters and "data mining" as important future innovations that will increase the effectiveness of ESCOs. With access to virtually an infinite amount of information over the Internet from specific client's utility use, equipment operating conditions, temperatures, and settings available, the question is not whether information is available, but how to make it useful. Information technologies that organize this data in a meaningful way and mine it for important trends will become the wave of the future and will leverage the skills of ConEdison Solutions' engineers.

How do you think ESCOs can utilize these innovations in a way that better meets the customer's needs?
Most ConEdison Solutions customers are pretty savvy about technology, and welcome us bringing them solutions to track their buildings' energy use and correct operating problems. We have set up systems that allow facility managers - many who monitor 30 or more buildings - to use their laptops and cell phones at home to receive real-time information about their buildings and head off potential problems even before they leave for work. The key is to set up proper filtering of alarms and to organize the information in a way that makes this process easy. ConEdison Solutions' attention to detail helps us set up the systems that work for each client's individual needs and technical capabilities.

Our success in achieving persistent reduction in energy use depends on our clients being as proactive and detail-oriented as ConEdison Solutions is. Sometimes, something as simple as tracking building energy use parameters - BTUs per square foot per heating degree day, for example - will help a client immediately identify a building that has gone out of adjustment or which has had some control parameter overridden. By quickly identifying these "outlier" buildings, facility managers can initiate inquiries as to what happened to cause the change. Often, it will be a change made to the energy management system by a local operator trying to solve a problem, but does it incorrectly.

Do you think these new technologies will take the place of more standard energy savings measures?
ConEdison Solutions still installs the traditional technologies of lighting retrofits, lighting controls, variable speed drives, boilers, chillers and basic energy management systems. We are also installing many pool covers and natatorium dehumidification systems that are somewhat more "high-tech", but still save energy through basic fundamentals - avoiding evaporation of water and the subsequent need to replace and reheat it, and recovering heat from hot, humid exhaust air. We have even installed complete pool enclosures - using beautiful translucent panels throughout that let in sun all winter and open wide in the summer for an "outdoors" experience - and a high-efficiency dehumidification system. These projects were partially paid for by significant utility rebates. The facility also saved money and energy by eliminating old, inflatable pool "bubble buildings" that required significant maintenance and snow removal headaches. ConEdison Solutions rolled this project in with a number of more conventional projects to completely fund the new natatorium enclosure, including all mechanical/electrical systems, using energy savings.

Do you feel that customers are receptive to the idea of utilizing new approaches to building retrofits?
Yes - and many of them have their own pet technologies they want us to install. In one major university, a solar photovoltaic art installation was requested that takes the shape of an actual tree outfitted with movable solar panels that track the sun. This installation will be the centerpiece of the campus center. We will install a kiosk to track real-time solar output, and provide educational benefits to students about solar energy and photovoltaics.

ConEdison Solutions has also worked closely with secondary schools in the Northeast to promote energy conservation both inside and outside their schools. At Foster-Glocester, Rhode Island, for example, ConEdison Solutions donated a pick-up truck to a science teacher/environmental activist, Ross McCurdy, who had his science students retrofit the truck with a large biodiesel storage tank. Together they drove it across the United States without refueling as part of a learning experience in energy conservation. This same teacher also formed "the world's only fuel-cell-powered rock band" that plays at green energy events. Even more amazing, he supervised his students in a project that modified a classic Model T Hot Rod Coupe by removing the V-8 gas engine and installing a huge electric motor powered by a massive fuel cell.

Based on your experience, do most customers view the measurement and verification of the energy savings as a key inducement to entering into performance-based projects?
It is one of many inducements to enter into a performance contract, but is certainly one that provides some hard facts and reassurances that the savings we predict will actually occur. Getting badly needed infrastructure improvements is always a big driver for performance contracting, as is meeting governmentally mandated savings targets. Just as important as M&V, however, our customers view ConEdison Solutions' ongoing commissioning services as critical to maintaining energy savings. This is always going to be the key area where ESCOs like ConEdison Solutions shine compared with conventional design-build contractors. We are with the customer for the long haul and have a vested interest achieving energy savings day-to-day and year-to-year. That's why we have so many good references from every project we have done over the years.

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NAESCO Updates

New Members

NAESCO welcomes the following seven new members.

ESCO Israel Electricity Services - International Member - ESCO Israel, Ltd. pioneers the Energy Services market in Israel. The company specializes in the development, design, construction, financing, and operation of energy and environmental efficiency projects and performance contracting. In addition, the company operates in the electric distribution market recently privatized in Israel. ESCO Israel working with its customers to reduce operating expenses, upgrade and maintain their facilities, stabilize energy costs, improve occupancy comfort levels, increase energy reliability, and enhance the environment, has successfully built and operated several hundred of projects. ESCO Israel is owned by the members of the Recant family and the Nisko-Adrdan Group.

Kyocera Solar, Inc. - Energy Service Affiliate Member - Kyocera is one of the world's largest vertically-integrated producers and suppliers of solar energy products. Kyocera Solar, Inc. serves the widely varying needs of customers for distributed solar electricity through two major market channels. Industrial customers, such as original equipment manufacturers, government organizations, utilities, corporate clients and institutions, are served directly with fully integrated system packages. KSI also serves a global network of Authorized Distributors and Dealers with components, packaged systems, engineering, technical support, project management, sales aids and literature.

Leonard, Street and Deinard, P.A. - Associate Energy Service Affiliate Member - Leonard, Street and Deinard is a full-service law firm with offices in Minnesota and Washington, D.C. The firm acts as national construction counsel for several large clients, and also acts as primary counsel for a significant number of upper midwest-based public companies and closely held businesses that require representation in other states. For large construction clients, they serve as lead counsel on advice and litigation matters throughout the United States. Much of their work for these clients involves disputes over the performance of equipment that generates, distributes, controls and uses electricity and other forms of energy in facilities around the country. The firm regularly provides advice and representation to energy services companies on performance contracting projects.

Wipro Limited - ESCO Member - Wipro EcoEnergy is the clean tech business of Wipro Ltd. The company creates and manages sustainable energy solutions by providing intelligent, sustainable alternatives for energy generation, distribution and consumption, helping its customers reduce their energy footprint, recover avoidable energy losses in their energy deployments, and replace conventional energy with renewable energy sources. Drawing upon energy efficiency and renewable energy solutions, the company relies on analytics that manage and optimize energy yield, while at the same time improving the manageability and safety of the systems on a real time basis. They leverage their information and technological expertise to deploy a dynamic interplay of analytical insights and automated response mechanisms thereby ensuring high performance and availability.

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Upcoming Events
 

Southeast Regional Meeting
June 23, 2011
Loews Vanderbilt Hotel
Nashville, TN

Mid-Atlantic Regional Meeting
September 19, 2011
Con Edison Building
New York, NY
28th Annual Conference

2011 Annual Meeting
November 1-2, 2011
Hilton San Diego Resort & Spa
San Diego, CA

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NAESCO Advocacy Report

The full version is posted on the NAESCO Members Only Site, which can be accessed here.

At its November 2010 meeting, the NAESCO Board decided to realign NAESCO's federal advocacy work away from its strong focus in 2009 and 2010 on promoting passage of national climate and energy legislation to supporting more modest goals:

  • Supporting the acceleration of federal investment in energy efficiency through the use of the ESPC program
  • Monitoring EPA GHG rules that may promote the use of EE as a compliance mechanism
  • Monitoring the federal budget for FY11 and FY 12 to ensure budgetary support for energy efficiency policies and programs

The Board also decided to shift the bulk of the NAESCO Advocacy work in 2011 to the opportunities in the states with a particular focus on:

  • Educating the 29 new governors and their staffs about the benefits of large scale public buildings ESPC programs in meeting economic and energy consumption reduction goals;
  • Supporting existing EERS and energy efficiency programs that have established EE as the first resource in putting together an energy portfolio; and,
  • Pushing the EE program administrators for set asides and program designs that emphasize ESPC programs

As always, NAESCO continues its ongoing participation in state regulatory proceedings to ensure that existing EE programs and policies are reauthorized and, where feasible, to promote the implementation of more aggressive energy efficiency investment.

NAESCO has been active in several of the states that we selected as targets for NAESCO participation in 2011 regulatory proceedings.

  • New York - We are participating in the proceeding to authorize SBC IV, the fourth five-year statewide EE program administered by NYSERDA. We have filed two sets of comments objecting to NYSERDA's shift in emphasis from resource acquisition to R&D programs. We are also participating in a series of technical workshops and holding meetings with key PSC and NYSERDA staff.
  • New Jersey - We have submitted two rounds of comments on the transition of the NJ Clean Energy Programs and are participating in the ongoing development of the new State Energy Master Plan.
  • TVA - We submitted a comment urging that TVA emphasize energy efficiency in its new IRP, which has now been issued.
  • Texas - We are providing support to an ACEEE study of the economic potential of increasing the Texas EERS from its current level (20% of new growth) to the new Arizona level (22% of consumption in 10 years).
  • California - We submitted comments and participated in workshops on the EM&V process for custom (non-DEER) measures, which are a staple of many ESCO projects. Our comments urge the CPUC to reject the Energy Division's proposed process, which we think is unfair and unworkable. We are also participating in a broad coalition of stakeholders who oppose the Legislature's appropriation of gas energy efficiency funds into the state General Fund. We have written two rounds of letters to the Budget Conference Committee expressing our opposition to this funding grab, and now expect the issue to go to litigation, an effort which will be led by the utilities.

State ESPC Advocacy
In two major states-- California and Pennsylvania - recent developments appear to have galvanized our membership.

In California, there is a bill under consideration in the California State Senate (SB 118) that is attempting to transform ESPC project development into the traditional "bid and spec" procurement model. Senator Yee, and up-and-comer running for Mayor of San Francisco, has introduced SB 118. He sees reforming ESPC as a basic principle of good government, i.e. all public projects should be competitively bid. We are undertaking an intense lobbying effort to defeat or modify SB 118.

In Pennsylvania, we are seeing signs that the new Governor and his Administration are pulling back from strong support of the GESA (Guaranteed Energy Savings Agreement) program, under which more than $500 million of ESCO delivered projects have been developed and implemented.

In each state, we have assembled Briefing Books and are mobilizing the ESCO industry. If you want to join these efforts in Pennsylvania and/or California, please contact Don Gilligan at donaldgilligan@comcast.net.

Federal Advocacy Activities
The general consensus is that the Congress will not consider comprehensive climate and energy legislation in 2011. There is, however, significant federal action on budget and administrative issues that will impact ESCOs. NAESCO remains active on these issues. NAESCO is also part of the national coalition that is urging the Administration to use its authority in several areas to boost energy efficiency.

Federal Budget
The new Republican majority in the House is determined to significantly cut the federal budget, especially domestic discretionary programs. The FY 2011 budget passed by the House, which is now in the Senate, cuts the US DOE EERE (Energy Efficiency and Renewable Energy) budget by about $800 million. It specifically zeroes out funding for two programs - the State Energy Program and the Weatherization Assistance Program - and leaves it up to DOE to cut another $500 million from other programs. Since October 1, DOE has been operating on a Continuing Resolution, which authorizes the agency to continue its operations at the level of the FY 2010 budget, which was about $2.8 billion for EERE. Since we are already about six months into FY 2011, and EERE has presumably spent the first half of its budget, the $800 million of cuts would have to come out of remaining half ($1.4 billion) - a cut of almost 60%.

The Senate and the Administration have said they are willing to make substantial cuts. The Senate is talking about perhaps 3% across the board, rather than the elimination or decimation of a few programs. Intense negotiations are continuing. NAESCO is participating in a national coalition opposed to the budget cuts.

For FY 2012, the Administration has proposed a budget that expands efficiency programs in which ESCOs are interested, and proposes several new programs, such as the Better Buildings Initiative that would provide loan guarantees and enhanced tax credits for commercial building energy efficiency retrofits. NAESCO has met, at their request, with the DOE officials that are charged with developing the legislation that will enable the President's budget proposals. They are interested in structuring the legislation to facilitate ESCO projects, because they believe that performance contracting model is sustainable with a relatively modest amount of government assistance.

Regulatory Issues - SEC and FASB
NAESCO has also been involved in two pending regulatory changes that would significantly affect the ESCO industry if enacted in their current form. The Federal Accounting Standards Board (FASB) is proposing a new accounting treatment that would end operating leases. The Securities Exchange Commission (SEC), under what they believe is a mandate enacted in the Dodd-Frank financial reform legislation, is proposing that ESCOs be required to register as municipal securities advisors and be subject to regulatory oversight appropriate to that status. NAESCO has worked extensively with its member companies to formulate industry responses to these proposals. This remains an ongoing effort.


Industry News

New Report From LBNL Examines States' Use Of ARRA Funds
The Lawrence Berkeley National Laboratory recently released a report examining how state energy offices chose to allocate ARRA funds dedicated to energy efficiency and how those programs interacted with the existing utility customer-funded programs. The authors interviewed more than 80 representatives of State Energy Offices and regulatory commissions, program administrators, and national experts.

Key findings include:

  • Most of the states in the study developed a diverse portfolio of programs, partly in response to their unique economic and political circumstances.
  • More funds across all 50 states went to buildings energy efficiency than to renewable energy (50% vs. 31% respectively in the SEP program). Allocations varied by region (e.g., the Midwest states budgeted 48% for energy efficiency and 27% for renewable energy projects overall, with significant funding also going to manufacturing retooling for clean tech). The bulk of state-administered EECBG funds went to energy efficiency programs, concentrated in the public sector.
  • State energy offices allocated about $650M to revolving loan programs that could potentially finance $200 million in projects annually for the next 20 years or more as loans are repaid.
  • A number of state/local government grantees used ARRA funds to explore and test new energy efficiency program approaches (e.g., comprehensive residential whole house programs that served customers who heat their homes with fuel oil) and/or target under-served markets and areas (e.g., rural regions) that were not part of utility customer-funded programs. Successful program concepts could ultimately be adopted by utility program administrators.
  • Reporting of savings attribution for projects that involve both ARRA and utility customer funds has been a subject of debate. States have taken a variety of approaches, from giving full credit to utility programs, calculating proportional credit, or strict separation of savings; this issue is still unresolved in some states.

This research was funded by the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy, Weatherization and Intergovernmental Program and the Permitting, Siting and Analysis Division of the Office of Electricity Delivery and Energy Reliability. The study may be downloaded here.

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New Report Finds Energy Efficient HVAC Systems Will Receive Major Investment From The Commercial Market
According to a study by Pike Research, many building owners have begun to manage energy cost as an asset, rather than a fixed cost largely because of rising energy prices and the drive to reduce greenhouse gas (GHG) emissions associated with building operations. The report finds that the objective of most changes to HVAC systems in the next five years will be to decrease energy cost using tools like building energy management systems (BEMS), onsite ice-based thermal energy storage systems, underfloor air distribution, and chilled beams.

Pike Research forecasts the following trends in the domestic energy efficient HVAC market:

  • The market for geothermal heat pumps in commercial buildings, including equipment and installation costs, will total $13 billion between 2010 and 2015.
  • Revenue from BEMS will increase from $0.9 billion in 2010 to more than $1.3 billion by 2015.
  • Investment in underfloor air distribution will total $1.2 billion during the period from 2010 to 2015.
  • Ice-based thermal energy storage systems revenue will expand from $17 million in 2010 to more than $190 million in 2015.
  • Revenue for Western Climate Challenge-Certified Rooftop Units will reach $26 million by 2015 under a baseline scenario, with the upside opportunity of $40 million by 2015 under a more aggressive forecast scenario.

Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets. To access the report, entitled "Energy Efficient HVAC Systems" click here.

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New Report Finds Allowing Utilities To Earn More For Helping Customers To Consume Less, Benefits Both
The ability for utilities to profit from their energy efficiency programs provides strong motivation to create, support, and deliver successful programs according to a report released by the American Council for an Energy-Efficient Economy (ACEEE). ACEEE found that electric and natural gas utilities able to earn a financial return on their achievements with customer energy efficiency programs are likely to be industry leaders in terms of their financial support for customer energy efficiency programs.

Regulators and policymakers in a growing number of states have revised the traditional utility business model and adopted "shareholder incentive mechanisms" that allow utilities to earn financial rewards from successful energy efficiency programs. ACEEE's new report, "Carrots for Utilities: Providing Financial Returns for Utility Investments in Energy Efficiency", highlights 18 states that have adopted and implemented shareholder incentive policies and also highlights the elements of successful approaches.

Some of the key findings:

  • When states have set energy savings goals for utilities under a shareholder incentive structure, the utilities have thus far consistently met or exceeded them;
  • There is widespread agreement among industry experts that shareholder incentives are making efficiency programs a more attractive investment opportunity for utility decision-makers; and
  • States are rewarding utility programs that are cost-effectively producing energy savings.

According to the ACEEE, while a shareholder incentive policy does increase earnings opportunities for utility shareholders, the data to date indicates that these incentives are not excessive relative to the benefits provided by the programs. While these types of policies are very important, the report stresses that a suite of complementary policies need to be in place to properly encourage utility commitment to energy efficiency.

The full report includes detailed discussion of the trends, successes, and challenges states have faced in the implementation of shareholder incentives. To download a copy of the report, click here.

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New Report Finds Businesses Seeing Savings From Emission Reduction Programs
According to The Carbon Disclosure Project 2011 Supply Chain Report, businesses are now seeing a return on investment from embedding sustainable practices into the procurement function, indicating an emerging trend in supply chain engagement and collaboration. More than 50% of large businesses and 25% of their suppliers have seen cost savings as a result of carbon management activities.

Eighty-six percent of companies saw commercial benefits from working closely with suppliers to improve performance and mutual return on investment, up from 46% in 2009. According to the report, this jump is evidence of how sustainable procurement practices are addressing climate change and could have major impact on the supply chain, which for most companies accounts for at least 50% of carbon emissions. With more than 79% of CDP Supply Chain member businesses now employing a formal climate change strategy (up from 63 percent in 2009), there has been a parallel shift in the key business drivers for action within the supply chain, affecting how large organizations and their suppliers engage and implement carbon management processes.

Other findings:

  • More than 50% of large businesses and 25% of their suppliers have seen cost savings as a result of carbon management activities
  • More businesses are training procurement staff in this area (up to 41% from 26% in 2009) and incentivizing staff through awards and recognition (up from 11% in 2009 to 25%)
  • Employee motivation and brand management have increased in priority by around 50% of businesses; product differentiation has also become an increasingly important objective (60%).
  • The percentage of businesses which track and report supply chain emissions more than doubled to 45% in 2010
  • Carbon management criteria is increasingly part of supplier selection - up to 17% from 11% and expected to be 29% in 5 years

The report was produced by management consulting firm A.T. Kearney. Click here to download the CDP 2011 Supply Chain report.

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Benefits Of Clean Air Act Rules To Reach $2 Trillion, EPA Says
A report released by the U.S. EPA estimates that the benefits of reducing fine particle and ground level ozone pollution under the 1990 Clean Air Act amendments will reach approximately $2 trillion in 2020 while saving 230,000 people from early death in that year alone. The report studied the effects of the Clean Air Act updates on the economy, public health and the environment between 1990 and 2020.

In 2010 alone, the reductions in fine particle and ozone pollution from the 1990 Clean Air Act amendments prevented more than 160,000 cases of premature mortality, 130,000 heart attacks, 13 million lost work days and 1.7 million asthma attacks. In 2020, the study projects benefits will be even greater, preventing more than: 230,000 cases of premature mortality, 200,000 heart attacks, 17 million lost work days and 2.4 million asthma attacks

The report is the third in a series of EPA studies required under the 1990 Clean Air Act amendments that estimate the benefits and costs of the act. More information and a copy of the summary report: click here.

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Executive Survey Finds Perceptual Gap On Energy Efficiency
A global executive survey found a notable disconnect between the perspective of the CEOs and less senior managers on the topic of energy efficiency initiatives. Respondents below the CEO level were significantly more likely (60.8%) to say that their company does not do enough to integrate energy efficiency initiatives into business strategy compared with 49.3% of CEO level respondents.

Other findings from the study indicate the dilemma faced by executives in maximizing the effectiveness of their sustainability programs:

  • Firms find it difficult to assess their energy use and make progress in reducing it. Only 26% of respondents say their organization has conducted an energy audit; some 22% do no measurement at all. Although experts agree that the best efficiency strategies need to cut across functional lines, at present few companies outside the largest organizations have a chief energy officer coordinating such initiatives.
  • Firms' supply chains are too often overlooked when assessing energy efficiency initiatives. For many companies, particularly retailers and those who outsource their manufacturing, total energy consumption occurs mostly in the supply chain. Yet the survey shows that most firms tend to focus internally, with few looking outside their direct operations to their supply chain. Just 8% said energy efficiency was a priority for suppliers, and only 4% said they had worked with suppliers in this area.
  • The incentives for energy efficiency vary significantly by global region. Payback times and the price of electricity are key considerations determining the willingness to invest. In Europe the business case for saving energy is particularly clear, since taxes are applied to electricity sales. This is reflected in the survey, with more Europeans (almost 90%) than North Americans (77%) citing cost savings as the biggest benefit of energy efficiency

The survey was conducted in the fall of 2010 and included 278 senior executives, encompassing a range of industries. They were evenly represented across North America, and Asia Pacific, with slightly lower representation from Western Europe and other territories. It included firms with revenue of at least $1 billion, and 50% of the respondents had revenue less than $500 million. It can be downloaded here.

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Analysis Of 2005 Energy Policy Act Shows Legislation Transformed The Efficiency Market
According to a new report issued by the ACEEE, energy efficiency provisions in the Energy Policy Act of 2005 were largely successful in expanding markets for money-saving energy-efficient products, and in creating opportunities for continued bipartisan political action on energy efficiency in later legislation. The Energy Policy Act of 2005, signed by President George W. Bush in August of that year, included manufacturer and consumer tax incentives for energy-saving technologies, minimum efficiency standards for appliances and equipment, and a variety of other provisions to encourage energy savings. It was the first major energy legislation since 1992, and began a period of passage of proactive energy efficiency legislation from 2005 to 2010.

The report also looks at lessons learned from implementation of the 2005 bill. The most successful energy efficiency provisions had good timing, stakeholder engagement and education, and appropriate levels of funding. Other provisions, especially those with limited or nonexistent funding or, where a loophole was built into the law, did not fare as well.

The report, "Assessing the Harvest: Implementation of the Energy Efficiency Provisions in the Energy Policy Act of 2005", by the American Council for an Energy-Efficient Economy (ACEEE) can be downloaded here.

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Member Projects

Ameresco Awarded Contract By City Of Portland, ME To Increase Energy Efficiency
Ameresco, Inc. announced that it has signed an agreement with Maine's largest city to provide energy conservation measures to 45 Portland facilities including 30 municipal buildings and 15 public schools. The $9.4 million project is estimated to save the city nearly $17 million over the 15-year project term while reducing Portland's carbon footprint. The buildings, include a nursing home, the Portland Exposition Building, City Hall, Merrill Auditorium and Portland High School. The comprehensive energy audit identified a portfolio of ECMs, which include premium efficiency lighting, lighting controls, energy management control systems , boiler plant upgrades, pipe and equipment insulation, solar water heaters and solar PV systems.

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Ameresco Enters ESPC with Shenandoah, VA Public Schools
Ameresco, Inc. has entered into an energy savings performance contract with Shenandoah County Public Schools, located 90 miles west of Washington, D.C. in the northern Shenandoah valley of Virginia. As part of the contract, Ameresco will provide energy efficiency upgrades to 10 schools in Shenandoah County, as well as the school division's bus garage and maintenance shop. The $7.3 million project is expected to provide annual energy savings of $480,000 over a 16-year term. Ameresco will design and install lighting controls, water conversation and boiler replacements.

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Mississippi's Monroe County School District Selects Ameresco for ESPC
Ameresco, Inc. has signed an ESPC with Monroe County School District to complete a major energy efficiency project for six schools and facilities totaling 368,000 square feet. As part of its first K-12 project in Mississippi, Ameresco will implement measures to increase energy efficiency and upgrade important facility systems on a budget-neutral basis, which will in turn save energy, reduce costs and reduce the school district's carbon footprint. Ameresco has guaranteed $90,470 in energy savings for the first year of the twelve year program.

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APS Energy Services Installs Solar Installation at Efficiency Upgrades at Oak Creek Unified School District
APS Energy Services installed a solar installation, made up of over 790 solar laminate panels at the Oak Creek Unified School District located in Arizona. This installation will generate up to 100kW of electricity and result in an annual kilowatt hour reduction of over 155,000 kWh. The solar installation is part of a larger energy conservation project being implemented throughout the district that includes comprehensive lighting retrofits, including skylights for daylighting; replacement of HVAC units to higher efficiency alternatives; a district-wide energy management and controls system; and water conservation. This project is the most recent in a line of projects that include classroom additions, renovations and energy improvements that will total over $73 million and take place over three phases.

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Chevron Energy Solutions and Morgan Hill Unified School District Announce Completion of Solar Project to Save District Funds
Chevron Energy Solutions and Morgan Hill Unified School District located in Morgan Hill, California announced today the completion of a solar program, which provides energy savings and solar education. The program includes a 2.1 MW solar project that is expected to save more than $8 million and offset approximately 80 percent of the combined utility energy demand for two high schools. The district anticipates it will reduce its purchase of utility power and in turn, reduce carbon emissions by 1,900 metric tons.

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Chevron Energy Solutions and San Dieguito Union High School District Announce Completion of 2MW Solar Project
Chevron Energy Solutions and San Dieguito Union High School District located in San Diego, California announced today the completion of a 2MW solar project, which is expected to save the district more than $10 million in energy savings over the life of the project. The solar project is producing approximately 70 percent of the electricity required at Canyon Crest Academy and La Costa Canyon High School. By reducing its purchase of utility power, the district is reducing carbon emissions by an estimated 2,200 metric tons, equivalent to removing more than 400 cars from the road.

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Santa Monica College and Chevron Energy Solutions Announce Completion of Energy Efficiency and Solar Project
Chevron Energy Solutions and Santa Monica College located in Santa Monica, California announced its newly completed solar and energy efficiency project, which is expected to save the college more than $14 million over the life of the project. The project includes a 408-kilowatt solar system, which provides electricity through solar panels located on the top level of two parking structures that is generating power for the two garages and a significant portion of the Business Education building at Santa Monica College. The college has also improved its energy efficiency through the implementation of a campus-wide lighting retrofit, variable speed drives, new heating hot water boilers,a fire alarm system and emergency circuit upgrades all of which were part of the CES project.

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Honeywell To Implement $2.5 Million Building Improvements In Montgomery County, PA
Honeywell announced it is helping the Montgomery County Correctional Facility in Eagleville, Pa., upgrade its infrastructure, and save almost $2.5 million in estimated utility and operating costs. The $2.4-million energy conservation and building modernization program, which is supported by funding received through the American Recovery and Reinvestment Act (ARRA), will enable the 600-bed correctional facility to reduce water and energy consumption, and strengthen safety and security for staff and inmates. As part of the project, Honeywell will install a new water management system for the facility that will enable prison personnel to more effectively control water use. Honeywell will also install high-efficiency water fixtures across the facility, including new faucets and aerators in administrative areas, and toilets in prisoner cells. Additionally, Honeywell will upgrade controls in the kitchen to optimize vent hood operation and cut electricity use.

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Honeywell Awarded $213 Million Contract With The GSA
Honeywell announced the award of a $213-million contract with the U.S. General Services Administration to support the continued development of on-site utilities and energy infrastructure at the Food and Drug Administration (FDA) headquarters. The new 20-year agreement will be funded from the energy and operational savings the work produces. The project is expected to save almost 48 million kilowatt-hours of electricity per year and reduce carbon dioxide emissions by 24,000 metric tons annually. The centerpiece of the project is the construction of a central utility plant that will meet the heating, cooling and energy requirements of a 1.2-million-square-foot expansion for the FDA's Center for Biological Evaluation and Research. The new central plant will include two 7.5 megawatt (MW) dual-fuel turbine generators, a 4.5 MW natural gas turbine generator, two 2.25 MW diesel standby generators and a 5 MW steam turbine generator. It will also include three 2,500-ton chillers and a 2-million gallon thermal energy storage tank, which can act as a backup for the campus if municipal water services are temporarily lost. In total, the plant will be capable of producing up to 250,000 MW-hours of electricity each year.

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Honeywell Helps Yonkers Housing Authority Improve Facilities
Honeywell announced it has entered into an $18.8-million energy conservation and building modernization program with the Municipal Housing Authority for the City of Yonkers in New York. The stimulus-supported program will help the housing authority improve its facilities, energy efficiency and resident comfort while reducing emissions and saving an estimated $1.4 million in annual utility costs. It will also create opportunities for local subcontractors, giving the city's job market a boost. The program features a mix of conservation measures and equipment upgrades including a new geothermal heating, ventilation and air-conditioning system that will affect 19 developments and more than 2,000 apartments throughout Yonkers.

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Johnson Controls Launches Tampa Area's Largest Solar Photovoltaic Installation
Johnson Controls announced the commencement of construction for the largest solar photovoltaic installation in the Tampa, Florida, area with the Tampa Housing Authority. The 330 kW generating system will help provide clean, renewable energy to supplement the energy requirements for the JL Young elderly and disabled affordable housing development, saving the housing authority an estimated $43,000 per year in electricity costs. The $2.6 million project, funded in part by the American Recovery and Reinvestment Act (ARRA), also includes roof repairs and long-term roof warranties for all of the buildings in the development, which includes 450 housing units. Work on the project is designed to support the housing authority's commitment to creating a more sustainable future, while stimulating the local economy.

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Maryland Transit Administration Awards Pepco Energy $6.2 Million ESPC
Pepco Energy Services, Inc. has been awarded a $6.2 million, 15-year energy savings performance contract by the Maryland Transit Administration (MTA). Pepco Energy is installing energy conservation measures including lighting retrofits, occupancy sensors and daylight harvesting. Pepco Energy will also install a rooftop solar photovoltaic solar array for the Northwest Bus Division of the MTA. The comprehensive energy conservation measures will affect more than 1 million square feet, which includes MTA property and building space at various local bus, Metro subway and light rail and MARC facilities.

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Wendel Energy Services Completing Water And Wastewater Upgrades In Fallsburg, NY
Wendel Energy Services is completing construction on a performance contract for the town of Fallsburg, New York to upgrade the town's aging water and wastewater infrastructure. The project includes replacement of an aging sludge boiler, as well as lighting upgrades at two wastewater facilities. In addition, extensive improvements are being made to the town's water distribution infrastructure. The $2M Project will generate $3.6M in revenue over the 15 year term of the performance contract.

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Member News

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

Johnson Controls Executive Meets with State Governors to Encourage Support of Public, Private Sector Energy Savings Projects, Job Creation
C. David Myers, president of Johnson Controls Building Efficiency, recently met with a group of state governors attending the recent National Governors Association meeting where he said that Johnson Control’s current public sector building efficiency projects in the United States are guaranteed to save more than $4.7 billion in reduced energy, water and operational costs over the next 10 years. Myers said that in addition to the $19 billion in cost savings that Johnson Controls has already achieved for both its public and private sector customers, these projects have resulted in the reduction of more than 15 million metric tons of carbon dioxide or "greenhouse gas" emissions since 2000 - roughly the same level of emissions generated from the energy use of 1.3 million homes in one year.

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Schneider Electric Announced Formation Of A Committee Charged With Enhancing The Demand Response LEED Pilot Credit
Schneider Electric, Skipping Stone and the Demand Response Research Center at Lawrence Berkeley National Laboratory announced the formation of a committee charged with enhancing the current Demand Response LEED Pilot Credit. The team will collaborate on enhancing the credit to enable commercial building owners and LEED green building projects to earn credits in LEED for enrolling in utility or wholesale market demand response programs. The enhanced program will provide LEED projects with demand response definitions, participation options for buildings, and implementation and documentation requirement guidelines.

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Toshiba International Corporation, Announces Release of New Energy-Efficient Lamps
Toshiba International Corporation announced the release of its energy-efficient lamps primarily for commercial use. These newly updated LED lamps are designed to meet Energy Star® standards and are currently undergoing testing for final certification. The lamps include enhancements such as dimming capabilities and are now available for purchase.

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Association Partners Upcoming Events

AEE West Coast Energy Management Congress
June 15-16, 2011 - Long Beach, CA
Comprehensive information about the conference, expo, concurrent seminars, workshops and other special events, as well as registration, sponsorship and more.
Information on Exhibiting at West Coast EMC

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NALMCO Annual Convention and Trade Show
October 16-19, 2011 - The Rosen Centre, Orlando FL
The NALMCO® Annual Convention and Trade Show is a three-day event held annually in October. Anticipated attendance each year exceeds 250, with over 40 exhibitors. Participants include lighting management company owners, lighting maintenance service representatives, lighting and energy consultants, electrical contractors, energy service companies, specialty lighting distributors, utilities, other lighting-related associations and manufacturers. This educational event offers internationally recognized lighting speakers, professional development opportunities, special networking events, recreation, trade show time, and one-on-one appointment with exhibitors.

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All content Copyright 2011 The National Association of Energy Service Companies. All rights reserved. NAESCO, as sponsor and publisher, as well as the Newsletter editors cannot be held liable for changes, revisions or inaccuracies contained in the material published. For more detailed information on the products, projects, programs, services or policies covered in the NAESCO Newsletter, it is recommended that readers contact the appropriate person, company, organization, agency, or industry group.

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