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NAESCO Newsletter

February 2012

NAESCO Updates

Featured Articles

Industry News

Member Projects

Member News


NAESCO Updates

Upcoming NAESCO Events
 

NAESCO Federal Market Workshop
March 22, 2012
Pepco Building, Washington, DC

Midwest Regional Meeting
June 7, 2012
Pfister Hotel, Milwaukee, WI

NAESCO's 29th Annual Conference
November 7-9, 2012
Roosevelt Hotel, New Orleans, LA

2012 Sponsor Prospectus

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NAESCO Advocacy Report

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

In 2012, NAESCO is continuing to concentrate its advocacy work at the state and regional level; because it appears that federal legislation and policy initiatives will be circumscribed by the demands of the national election.

  • Congressional Republicans will be reluctant to approve any of President Obama's major energy or environmental proposals (or even infrastructure proposals for rebuilding roads and schools) for fear that any legislative victories will boost his re-election campaign.
  • Democrats and Republicans are deadlocked in a philosophical battle about how to reform the federal budget and tax system, and neither side seems likely to make a significant concession any time soon.
  • The philosophical battle between the supporters of the coal economy and the supporters of the green economy continues to escalate, with neither side gaining a clear upper hand and an ability to move its agenda.
  • The momentum for energy efficiency and renewables that was established by the 2009 stimulus bill is winding down. The grants have been spent; the tax credits are expiring; the loan guarantees are mired in controversy.
  • Energy legislation that has been introduced, even bills with bipartisan sponsorship, are judged by most observers to be unlikely to move this year, but rather are seen as placeholders for the new Congress that will convene in 2013. Each of these bills is designed to deal with a few elements of the energy and climate bills that were debated in 2009, because legislation that would set establish a comprehensive new national energy policy is considered unachievable.

NAESCO, and the other national organizations that advocate for energy efficiency are therefore concentrating on a few areas where we think the Administration can act on its own. These include:

  • The implementation of the $2 billion two-year acceleration of the federal ESPC program;
  • The design and implementation of the initial pilot Deep Retrofit programs proposed by the Army and the GSA; and,
  • The promulgation of IRS rules that will provide guidance to state and local governments for the use of the remaining $2.4 billion of Qualified Energy Conservation Bonds (QECBs).

We will, of course, continue to monitor the progress of the budget battles, tax credit legislation and energy policy legislation and be prepared to advocate for the industry when it appears to be worthwhile, but most of our efforts will be in the states.

State Issues
We think that 2012 will be a pivotal year for ESPC programs. Many NAESCO members have seen the recent Pike Associates report that predicts the rapid growth of the ESCO industry during this decade. We know the potential is tremendous, but we need to resolve some nagging structural issues that hold back the industry. These issues are coming to a head in several states, as described below. NAESCO is addressing the issues working with active state committees of ESCO members that identify the key business and policy issues that need to be directly addressed and work together to develop and implement solutions.

ESPC Doesn't Work - Pennsylvania Department of General Services
During 2011, Pennsylvania dismantled what was arguably the most successful state buildings ESPC program in the country, the Guaranteed Energy Savings Agreement (GESA) program. The state Department of General Services (DGS) took the position that the hundreds of millions of dollars of projects delivered by GESA did not work, and proposed that GESA be replaced with a relatively small-scale program that closely resembles traditional public construction spec-and-bid. NAESCO worked with ESCOs and with other Pennsylvania energy efficiency organizations to determine what led to the DGS position. We were told that DGS was undertaking a thorough audit of GESA, and that we would be able to see the results of the audit. We have received no results after repeated requests, so it now appears that there was no real audit, and that the DGS proposals are based on a profound misunderstanding of a single ESPC project. We submitted comments urging DGS to reconsider its position, placed an op-ed piece emphasizing the successful results of the GESA program in the newspaper covering the state capital, and are working with the ESCO industry and interested third parties like Penn Future to accelerate the use of GESA, rather than kill it. Our key message is that ESCO projects have provided good and much needed jobs and the reconstitution and acceleration of the GESA program can help revitalize the Pennsylvania economy. We are now working with our ESCO members to take our message directly to the Governor.

Utility Incentives Should be Phased Out - California PUC
During 2012, California is re-examining the basis of its utility energy efficiency programs. Because California has long been a national leader in energy efficiency, spending about $1 billion a year, and because it is the first state whose official energy policy is that energy efficiency is the first resource, we think it is very important that the new generation of California programs, which will start in 2015, be done right. NAESCO has revived its California Committee that has identified several key issues on which NAESCO should be focusing its attention in 2012, including:

  • The importance of incentives, which should be based on acquiring all energy efficiency that is less expensive than energy supply, not on theories about how markets should be transformed, or how building codes and appliance, equipment and industry standards will obviate the need for incentives.
  • The need for a new generation of EM&V that is streamlined, based on project-level (not measure-level) savings, and that contributes to the continuous improvement of programs, rather than the continuous wrangling about the appropriate metrics by which to measure program results which has characterized California for the past few years and threatens to spread to other states.
  • New financing mechanisms, such as On-bill Financing (utilities finance projects) or On-bill Recovery (third parties finance projects and collect payments through the utility bill) that expand the scope of projects and the participation of customers in comprehensive projects, rather than limit projects to short-payback, cream-skimming measures.

NAESCO will focus on these issues, and others that arise during the planning process and will continue to work with its California Committee to set priorities in the California proceedings this year.

ESCOs and Utilities Can Accelerate ESPC Programs - New York
ESCOs and the New York Power Authority (NYPA), the state's largest utility, have had an uneasy relationship for most of the last two decades. NYPA has delivered more than a billion dollars of projects for public customers, and has subcontracted project implementation work to NAESCO member companies, but has also competed with ESCOs for ESPC projects delivered to public customers. New York Governor Cuomo has now charged NYPA with dramatically expanding its programs to accelerate the implementation of energy efficiency in New York public facilities, and NYPA has realized that they must add new programs, including an aggressive ESPC program, to meet this mandate. NAESCO first proposed in 2003 that NYPA stop competing with ESCOs for ESPC projects, but instead play a FEMP-type role, assisting public customers, particularly state agencies like SUNY, CUNY, the MTA and the Port Authority, to implement ESCO-developed and ESCO-delivered ESPC projects. NYPA now appears ready to embrace this new role, and NAESCO is working to help NYPA locate the resources it needs to launch its new program. We believe that a successful NYPA/ESCO program could be a replicable model for other large utilities and regional power authorities like TVA and BPA.

States Can Launch New Large-Scale ESPC Programs - Georgia
In 2010, the ESCO industry worked together to pass a constitutional amendment in Georgia to permit performance contracting in state facilities. Georgia has a large potential market that can be developed quickly because so many ESCOs are already doing business in the state. The implementation of the now-legal state buildings ESPC programs has been delayed, however, by what NAESCO believes is excessive caution on the part of the state's legal team. ESCOs are frustrated by the slow pace, because they have invested significant resources to build a business infrastructure in Georgia and need to see some return on that investment. NAESCO is monitoring the situation, and working with both the state and its consultants to try to break this logjam and accelerate the launch of the program.

Improve State ESPC Programs - North Carolina, Ohio and Michigan
Many states that have had ESPC programs for years, even decades, need to significantly boost program volume if the ESCO industry is to meet its growth potential. NAESCO is working with member ESCOs in several states to identify and remove the barriers to rapid growth. These barriers include unclear state ESPC enabling legislation (Michigan), underestimating the competitive value of an RFQ for the selection of a project ESCO (North Carolina) and trying to make ESPC projects function like traditional spec-and-bid projects (Ohio). In each state, NAESCO has established a state committee of ESCOs, and is working with the committee to develop and implement a strategy to overcome the barriers. We believe that the solutions we develop in these initial states will be replicable in other states that face the same issues.

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New Members

New NAESCO Members' Statements of Introduction

Climatec BTG - ESCO Member - Since 1975, Climatec has been one of the Southwest's leading providers of advanced building technologies for a wide variety of industries and buildings. Our broad set of offerings allows us to be a single source integrator of critical building systems. We provide safer, more comfortable and more efficient building environments through innovative HVAC solutions, building technology solutions, security solutions, energy services and ongoing service. More information can be found at www.climatec.com.

Concord Energy Strategies - Associate Energy Affiliate Member - Concord Energy Strategies is America's leading Section 179D energy study provider. Section 179D was enacted as part of the EPAct of 2005, allowing for up to a $1.80 per square foot federal tax deduction for commercial/municipal projects put in service or retrofitted since January 1, 2006. Designers/ESCOS are eligible for this federal tax deduction on municipal projects put in service since January 1, 2006.

To qualify for this deduction, the IRS requires an independent third party energy tax study. Concord Energy Strategies provides the services needed to receive the energy efficient building deduction. Concord Energy Strategies plans to play an active role in NAESCO's federal advocacy efforts focusing on energy legislation pertaining to tax issues that impact the ESCO market. Concord Energy Strategies, LLC will be present at the Federal Market Workshop, Midwest Regional Meeting, and has plans to once again become a sponsor at the Annual Conference. We are also proud to be a part of the NAESCO webinar series.

EMCOR Energy Services - Energy Service Affiliate Member - A Fortune 500 company with estimated 2011 revenues of $5.5B, EMCOR Group, Inc. (NYSE: EME) is a leader in mechanical and electrical construction, energy infrastructure, and facilities services . A provider of critical infrastructure systems, EMCOR gives life to new structures and sustains life in existing facilities by its planning, installing, operating, maintaining and protecting the sophisticated and dynamic systems that create facility environments such as electrical, mechanical, lighting, air conditioning, heating, security, fire protection, and power generation systems-- in virtually every sector of the economy and for a diverse range of businesses, organizations and government.

EMCOR represents a combination of broad reach with local execution, combining the strength of an industry leader with the knowledge and care of 170 locations. The 26,000 skilled employees of EMCOR have made the company in the eyes of leading business publications, amongst the "World's Most Admired" and "Best Managed". EMCOR's diversity, in terms of the services it provides, the industries it serves and the geography it spans, has enabled it to create a stable platform for sustained results. Art Strenkert, President of EMCOR Energy Services, plans to play and active role in NAESCO.

Navitas - ESCO Member - is a facility services company specializing in a wide range of energy-efficiency and resource conservation solutions. We focus on identifying and implementing conservation strategies that will improve the quality of financial and facility assets for public and private sector clients. We do this by providing a broad range of high performance facility solutions that will provide value for the life of a facility.

Navitas originated from Smith & Boucher which started as an engineering company over 40 years ago. Always focused on energy, engineering and construction. Smith & Boucher is the same engineering firm that Energy Masters grew out of in the 80's to later be bought by Northern States Power.

At Navitas, our people have a long history of helping clients with facility challenges and the technical, operational, financial, and energy components that drive them. Our experience in dealing with energy, engineering and construction services over gives us the expertise to take the many facets of high performance building solutions and deliver them as individual services or as a bundle through either Design-Build construction or Energy Performance Contracting to meet our clients' needs.

As new members, Navitas associates Koby Kampschroeder, Director of Business Development, and Chris Albright, Director of Engineering, are excited to become involved in NAESCO activities and its opportunities.

Smardt Chiller Group Inc. - International Member - is a Montreal based technology developer and manufacturer which reports that it fills the number 5 slot in world chiller markets behind Trane, Carrier, York and McQuay. Smardt is the world's largest vendor of oil-free centrifugal chillers, with water cooled machines from 60 TR to 1200 TR, air cooled from 60 TR to 600 TR, compact modular and split machines from 60 TR to 600 TR, condenserless from 60 TR to 900 TR and evaporatively cooled chillers from 60 TR to 400 TR.

All Smardt chillers offer AHRI-certified performance, which excels at part load, at IPLV and in lifecycle cost analyses. Smardt's Kiltech affiliate offers CPECS energy optimization packages which can drive whole-plant energy-consumption IPLV's to below .4 kW/TR. Quebec's mammoth FTQ pension fund is a major minority shareholder, although the majority of the group's operations are offshore. In addition to its R&D and manufacturing base in Montreal, Smardt has factories in Plattsburgh, NY; Stuttgart, Germany; Melbourne, Australia and Guangzhou, China. There are over 3000 operating Smardt chiller installations across the world, all backed up by factory-trained computer-literate service mechanics.

Willdan Energy Solutions - ESCO Member - is a major business segment under the corporate umbrella of Willdan Group Inc (NASDAQ: WLDN). Founded over 45 years ago, Willdan Group, Inc., delivers professional, technical and comprehensive engineering solutions servicing state public agencies, state public utilities, federal installations and federal institutions.

Willdan Energy Solutions delivers engineering development and deployment for energy efficiency & water conservation audits, construction & project management, facilities commissioning, and innovative sustainable power strategies that optimize facility energy performance.

We are an approved energy services and energy management solutions provider on the GSA Facilities Maintenance and Management - Schedule 03FAC (contract GS-21f-0055V). More information on Willdan Energy Solutions can be found at www.willdan.com/energy/

Bob Shaw, Vice President of Federal Business Energy Services, intends to take part in NAESCO's Federal Regulatory & Energy Policy development and is interested in participating in the State Energy Efficiency Action Project.

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Featured Articles

2013 Energy Budget: What It Means for You

Below is a breakdown of the 2013 energy budget provided by the White House. Also included is a link to video of Secretary Chu 2013 Energy Budget Stakeholder Meeting.

On February 13, Secretary Chu detailed President Barack Obama's fiscal year 2013 budget, which includes a $27.2 billion request for the Energy Department which is a 3.2% increase from the previous year. The Secretary emphasized the President's commitment to an all-of-the-above energy strategy that includes critical investments in innovation, in job-creating clean energy technologies, and in our national security. The budget proposal includes an 80 percent increase in money to promote energy efficiency in commercial buildings and industries and $310 million for the Solar Shot Initiative to make solar cost competitive by the end of the decade. The budget request reflects the President's statement in his recent State of the Union Address to Congress that if the country were to waste less energy, "America will have less pollution, more manufacturing, and more jobs for construction workers who need them."

"The United States is competing in a global race for the clean energy jobs of the future," said Secretary Chu. "The choice we face as a nation is simple: do we want the clean energy technologies of tomorrow to be invented in America by American innovators, made by American workers and sold around the world, or do we want to concede those jobs to our competitors? We can and must compete for those jobs. This budget request includes responsible investments in an American economy that is built to last."

Specifically the President's FY 2013 budget request for the Department of Energy:

  • Invests in cross-cutting research to lead in the research, development, deployment and production of clean energy technologies;
  • Promotes efforts to make solar power affordable for all Americans by reducing the cost of solar energy by 75 percent and making it cost competitive without subsidies by the end of the decade;
  • Continues the Obama Administration's efforts to reduce our dependence on oil by one-third by 2025;
  • Supports groundbreaking basic science, research and innovation to solve our energy challenges and ensure that the United States remains at the forefront of science and technology;
  • Strengthens national security by reducing nuclear dangers and maintaining a safe, secure and effective nuclear deterrent; and
  • Advances responsible environmental management by cleaning up the legacy from the Manhattan Project and the Cold War.

The budget request for fiscal year 2013 also highlights the steps the Department continues to take to improve its management and operations, and reduce costs. Some examples include:

  • Eliminating 4.6 million gross square feet of excess real property, over 3 million sq. feet more than the FY 2011 target, which will avoid future operations and maintenance costs;
  • Reducing its time-to-hire new employees by 45 percent; andReducing, consolidating or moving 40 percent of its websites to the Energy.gov platform to increase communication and transparency, and streamline website infrastructure processes, which will save more than $10 million a year.

Please click here for the video of 2013 Energy Budget Stakeholder Meeting.

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Industry News

New Report Finds Revenues for U.S. Energy Service Companies to Reach $13 Billion by 2020
A new report by Pike Research finds that the ESCO market for energy efficiency project installations and services exceeded $5.1 billion in 2011. Driven by public policies that encourage a greater emphasis on energy efficiency to reduce costs and improve operations, this market is expected to continue to grow faster than the domestic economy and reach $16 billion in sales by 2020, the report contends. Under a more aggressive scenario, the ESCO market could reach $16 billion by 2020, Pike forecasts.

The majority of ESCO work is conducted for the municipal, universities, schools, and hospitals (MUSH) market which represents about 73% of all ESCO activity. However, the federal market has been highly active in recent years, driven by a presidential executive order that mandates that all federal agencies must achieve a 30% reduction in energy use by 2015, plus spending authorized by the American Recovery and Reinvestment Act of 2009 (ARRA). While the full impact of this economic stimulus spending has yet to be realized, ARRA has directed billions of dollars into energy efficiency projects at all levels of government and to all geographic regions of the nation. At the same time, project sizes are increasing as clients look for more comprehensive technologies and designs to address their energy consumption. Of particular significance for ESCOs is President Obama's 2009 executive order, which mandates that all federal agencies must achieve a 30% reduction in energy use by 2015.

Pike Research's report, "The U.S. Energy Service Company Market", describes the continuing evolution of the ESCO market, detailing drivers and barriers to deeper penetration of energy efficiency in the U.S. economy. An Executive Summary of the report is available for free download on the firm's website.

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New Report Finds Mixed Results On the State Of Green Business
GreenBiz recently unveiled its State of Green Business 2012 report. The report goes into great detail about the current climate for business sustainability and outlines some emerging green business trends. The report found that companies continue to make, meet and even exceed their sustainability goals and invest in clean energy.

However, the report also finds that carbon and other toxic emissions continue to climb worldwide, despite efforts to curtail them. Additionally, electronic waste continues to pile up in landfills.

Other Findings Include:

  • Clean-tech venture capital investments dropped by one-third in 2011 over 2010.
  • Prices of solar panels are falling, installations going up.
  • Clean energy patents grew by 24% in 2011, up to 2,331.
  • Energy use per dollar of U.S. gross domestic product rose by 4.5% in 2010 – the first increase in more than half a century of declines – according to U.S. Energy Information Administration data which can be attributed to fewer companies making energy-efficiency improvements due to the economy.
  • 2.44 million tons of electronics were discarded in 2010, and only about 25% of that was recycled.
  • The number of building owners pursuing LEED in 2011 dropped slightly from 2010.

You can download a copy of the report here.

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WH Report Says Green Energy Loans Could Cost Government Less Than Expected
According to an independent review, the government could lose nearly $3 billion on Energy Department loans for green energy programs which is far less than the $10 billion Congress set aside for the high-risk program. The White House ordered the review after criticism of a $528 million loan to Solyndra Inc., a California solar company that went bankrupt. The report, says that about one-third of the money allocated, $8.3 billion, had been spent as of Nov. 28, 2011.

The review, led by former Treasury Department official Herb Allison, looked at 30 loans or loan guarantees totaling $23.8 billion that were offered to green energy companies and auto makers such as Ford and Nissan. The review did not involve Solyndra or Beacon Power Corp., a Massachusetts energy storage company that also went bankrupt after receiving a federal loan. The government has lost $567 million from those two loans so far, although officials said this week they could recover as much as $28 million from the sale of Beacon to a private equity firm.

The government could reduce its losses from the loan program if it withholds money from companies that fail to meet certain benchmarks, the report said. The comment echoes criticism by some Republicans in Congress who say the Obama administration should have cut off money to Solyndra far sooner than it did.

The report recommends several steps the Energy Department can take to improve the loan program, including creation of a chief risk officer to monitor all of the agency's loans. The risk management unit should be separate from the loan program office and should report directly to senior DOE managers, the report says.

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Reports Finds Renewable Energy Deals Hit Record High
A new report from PriceWaterHouse Coopers finds global renewable energy deals climbed 40 percent to a record high of $53.5 billion last year from $38.2 billion in 2010, as solar, wind and energy efficiency overtook hydropower as the main deal drivers for the first time.

Historically, hydro power has dominated renewables deal flow, but deals worth $1 billion or more in wind, solar, biomass and energy efficiency have outnumbered hydro by seven to one, the report said. Solar and energy efficiency deals accounted for 79 percent of the $15.3 billion rise in the total value of renewables deals. One in three deals last year was solar and the overall deal value for the solar sector was up 56 percent to $15.8 billion from $10.2 billion in 2010. Falling solar prices are making solar power more economic and closer to grid parity in some markets.

Global clean energy investment hit a record $260 billion in 2011, which was mainly driven by a solar boom, the report state. But renewable energy, excluding hydropower, will account for just 5 percent of the world's total energy production by 2030.

The report, Renewables Deals: 2012 Outlook and 2011 Review, can be downloaded here.

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Report Finds Apartment Building Owners, Residents Could Save Up To $3.4 Billion Annually with Energy Efficiency Improvements
Energy efficiency upgrades in multifamily buildings could save building owners and residents up to $3.4 billion nationwide, according to a report released recently by CNT Energy and the American Council for an Energy-Efficient Economy (ACEEE). The report finds that energy use in multifamily buildings can be reduced substantially, and cost-effective upgrades can result in utility cost savings of 15 to 30 percent in buildings with five or more residential units. The key to unlocking the savings, the report finds, is for energy utilities and apartment building owners to work together more closely to develop effective energy efficiency policies.

Despite the many benefits of energy efficiency upgrades, many building owners often have difficulty finding technical assistance, financing, or qualified contractors to upgrade their buildings, the report states. Better coordination between apartment building owners and energy utilities could address that, according to the report's analysis. The study finds that there is a vast, largely untapped opportunity to engage utilities in providing effective energy efficiency programs that target the multifamily sector. The study examines utilities' involvement in energy efficiency efforts across the country and identifies strategies that the multifamily building community can use to work together for improved efficiency.

The report identifies regions where the multifamily sector could see particularly dramatic benefits from improvements in energy efficiency policy. These include Florida, Illinois, Texas, and the District of Columbia; regions that have a substantial number of multifamily buildings and energy policies that leave significant room for improvement.

The full report, Engaging as Partners in Energy Efficiency: Multifamily Housing and Utilities, is available online.

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EU Clean Energy Sector Passes 1 Million Jobs
Clean energy jobs in the EU have now passed the 1 million milestone. According to a report, out by the European Commission, 1.14 million people were working in the clean energy sector in 2010, after a 25% increase in jobs in that sector that year (compared to 2009).

In addition to the big jobs increase in 2010, clean energy revenue increased 15% that year, reaching €127 billion ($167 billion).

The top green jobs providers by country were:

  1. Germany: 361,360 jobs (especially in the solar PV sector, but also in the wind and solid biomass sectors)
  2. France: 174,735 jobs (largely in the solid biomass and solar PV sectors)
  3. Italy: 108,150 jobs (mostly in solar PV and wind)
  4. Spain: 98,300 (mostly in wind, biofuels, and solar PV)
  5. Sweden: 54,780 (mostly in solid biomass)

The report, entitled The State of Renewable Energies in Europe, can be downloaded here.

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Member Projects

Ameresco And Manchester Housing And Redevelopment Authority Execute $3.5 Million Energy Performance Contract
Ameresco, Inc. announced the execution of a $3.5 million energy performance contract with the Manchester Housing and Redevelopment Authority (MHRA). The project will provide water and energy efficiency upgrades to more than 1,100 MHRA housing units, and is expected to save over $8.5 million for the Authority over the 20 year contract term. The $3.5 million scope includes water and lighting efficiency upgrades, upgraded apartment temperature controls, building weatherization, cogeneration at one of MHRA's high rise developments, and mechanical system upgrades for space heat at several other sites. The U.S. Department of Housing and Urban Development (HUD) energy performance contract program provides incentives to public housing authorities across the country to implement energy and water savings improvements to their housing units.

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DOER And State Officials Join Ameresco And Town Of Natick To Commemorate The Installation Of Solar Panels
Ameresco, Inc. joined with state, town and school officials to recognize the completion of the first two phases of a $6.05 million multi-phase solar initiative in Natick, Massachusetts. During the ribbon-cutting ceremony, Ameresco unveiled a solar kiosk at the Wilson Middle School. Similar installations are also underway at the Kennedy Middle School, Bennett-Hemenway Elementary School, the new Natick High School, Memorial Elementary School and the new Natick Community Senior Center. As part of the project's first two phases, Natick is expected to offset the schools' energy use by 46 percent by switching to clean, renewable energy. Additionally, funds in the amount of $74,000 from the Massachusetts Department of Energy Resources (DOER) were used to help defray the cost of the installation on the Kennedy Middle School roof.

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Fall River Mayor Flanagan and Ameresco Mark Completion of Solar Panel Installations
Ameresco, Inc. with Fall River Mayor Will Flanagan to recognize the completion of the first phase of a multi-phase energy efficiency initiative and renewable energy project. During a ribbon-cutting ceremony, attendees gathered at Frank M. Silvia Elementary School to view the recently installed solar photovoltaic (PV) electricity generating system. Similar systems have been installed on two other Fall River schools and outside of the City's water treatment plant. During the event, the Mayor also highlighted the completion of the first phase of a comprehensive Energy Savings Performance Contract (ESPC), expected to save the City more than $2.7 million in energy savings over the life of the contract. The contract work also is expected to reduce Fall River's carbon footprint by 25.8 million pounds of carbon dioxide over the contract term. The ESPC incorporated a $650,000 federal grant, and will include the installation of more than 3,400 energy efficient light fixtures in two City schools.

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Chevron Energy Solutions Helps Jurupa Unified School District To Save $34 Million Through Largest K-12 Solar And Energy Efficiency Program in Riverside County
Jurupa (CA) Unified School District and Chevron Energy Solutions are embarking on a 2.7 megawatt solar and energy efficiency project to save the district $34 million. The project will add solar photovoltaic panels mounted on parking shade structures at nine campuses; replace 400 air conditioning units, most of them more than 20 years old; and upgrade more than 21,000 lighting fixtures. Through the project, the district is expected to cut its electrical utility usage by 42 percent and its carbon emissions by more than 4,500 metric tons, which equates to taking 882 cars off the road. Chevron Energy Solutions will design and engineer the project, and will install, operate, maintain and guarantee energy-saving performance. The company will also implement efficiency improvements designed to provide better lighting quality and aesthetics, cut maintenance costs and improve the educational environment. Chevron will also provide professional development for teachers, curriculum materials and hands-on experiments aligned with state educational standards to help create a living laboratory that promotes environmental awareness and energy consciousness.

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Chevron Energy Solutions Helps City of Dinuba To Go Solar Cutting Electricity Costs At Wastewater Treatment Plant
The city of Dinuba (CA), Chevron Energy Solutions and Tioga Energy announced the completion of a 1.15 megawatt solar electric system that will reduce energy costs for operations at the city's largest energy consumer: its wastewater treatment plant. The ground-mounted racking system of 4,704 photovoltaic modules sits atop a capped landfill near the plant on hundreds of large concrete slabs, each weighing more than 3,000 pounds. The project is expected to cut the city of Dinuba's electrical utility usage at the site by 70 percent. Chevron Energy Solutions designed and engineered the project, and provided construction services for installation.

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Chevron Energy Solutions and Oak Grove School District Celebrate Completion of Solar Photovoltaic System, Saving More Than $13 Million
The Oak Grove, California School District and Chevron Energy Solutions are celebrating the completion of a state-of-the art solar photovoltaic system to save the district more than $13 million in energy costs over the life of the project. Installed at four schools and the district office, the 1.8 megawatt solar photovoltaic system created more than 25 local union construction jobs and will generate up to 90 percent of the electricity demand at the five sites, enough energy to power more than 160 homes. By greatly reducing its utility costs, the district is able to invest the savings back into the classroom, improving student learning and augmenting critical education initiatives. In addition to saving millions of taxpayers' dollars for the district, the solar photovoltaic system, comprised of parking canopies and shade structures, will offset the annual production of 1,377 metric tons of greenhouse gas emissions, the environmental equivalent of planting more than 220 football fields of pine forests.

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Energy Solutions Professionals Works With Pittsburg State University To Track Utility Costs
Energy Solutions Professionals announced that they are currently in the process of installing 147 utility submeters at Pittsburg State University. The submeters will allow the University to track electric, gas, steam and water use in every building in real time. The $750,000 project is being funded by a grant provided under the American Reinvestment and Recovery Act. The meters will record and transmit real-time data to an on-campus server, and the information will be used to monitor, track, and analyze campus utility use in order to identify and quantify energy conservation efforts on campus. All data can be viewed instantaneously as well as logged and trended for historical comparisons and analysis. Additionally, several kiosks will be installed around campus that will allow students an interactive experience with access to all of the real-time data, information and results for each building, as well as sustainability messaging and information. The submetering project is just the latest of Pittsburg State's many efforts recently to become a more energy efficient and sustainable campus. In 2011, the University completed over $4.7 million in energy-efficient improvements to 28 buildings on campus, with the largest portion devoted to a new geothermal heating/cooling system that serves McPherson Hall and Timmons Chapel, improving both energy efficiency and occupant comfort within the buildings.

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Green Campus Partners To Develop and Construct New Combined Heat & Power Plant for St. Barnabas Health Care Network In The Central Bronx
Green Campus Partners, LLC ("GCP") has entered into a Development Agreement with St. Barnabas Hospital and St. Barnabas Rehabilitation and Continuing Care Center. Under the innovative agreement, GCP will develop, construct, own and operate a highly efficient 1.2MW Combined Heat and Power plant to serve the thermal energy and electricity needs of the St. Barnabas campus in the Bronx, NY. The new CHP Plant will replace the Hospital's existing oil-fired boiler plant, which is far past its useful life and badly in need of replacement. The new plant will provide all of the heating and cooling needs of the Hospital and Continuing Care Center, as well a significant portion of their electricity needs. Green Campus Partners will fund the development and construction of the CHP plant and enter into 20-year Utility Services Agreements with the Hospital and Continuing Care Center. Under this agreement, the Hospital and Continuing Care Center will purchase lower cost electricity and steam from the plant to serve their heating, cooling, and electrical needs, while reducing their current utility costs by approximately $2 million per year.

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Virginia Department of Military Affairs Selects Schneider Electric For Energy Savings Project
Schneider Electric announced it has been selected for installation of an $11.2 million energy savings performance contracting project for the Virginia Department of Military Affairs. Scheduled for completion in December 2012, the project consists of comprehensive energy retrofits at nine facilities, totaling 382,881 square feet of facility space. Following completion, the project will generate energy savings of 39 percent annually, a reduction in energy use of over 1.5 million kilowatts of electricity, savings that equate to taking 112 cars off the road or reducing greenhouse gas emissions by 522 tons annually. The ESPC with Schneider Electric is part of a broader energy initiative the Virginia Department of Military Affairs is implementing to improve operations in its facilities and drive energy efficiency. In total, the Virginia Department of Military Affairs is making $24 million worth of energy-related upgrades as a result of a mixture of funding mechanisms including energy savings performance contracting. As part of the ESPC, Schneider Electric is implementing a smart building automation system with DDC controls for real-time, remote monitoring and management of energy use; comprehensive lighting retrofits to improve the light quality, brightness and efficiency; mechanical upgrades including a geothermal system; water conservation measures; PC power management; and advanced electric meters. The project is being funded by leveraging a combination of state ($1,779,680) and federal ($9,427,004) maintenance reserve funds.

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United States Coast Guard Embarks On Milestone Renewable Energy Project With Schneider Electric
Schneider Electric announced it is implementing a comprehensive $50 million energy savings performance contract project for the United States Coast Guard (USCG) in Puerto Rico. The project will improve operations for on-base personnel and mitigate maintenance and design burdens, meet renewable energy mandates without direct capital costs and stabilize energy costs and security in 960,000 square feet of USCG facilities including Rio Bayamon housing, Air Station Borinquen and Air Station Borinquen housing. The project will install 2.89 megawatts of photovoltaic panels on renovated Coast Guard rooftops over a 13-month period. Schneider Electric is constructing 300 solar photovoltaic (PV) systems on the facilities resulting in guaranteed production of more than 4 million kilowatt-hours per year. The photovoltaic electricity production, combined with new cool roofs that will reduce the annual cooling load of the buildings by 3.9 billion British thermal units, will result in an overall reduction of utility-purchased electricity by an estimated 40 percent. The USCG project is the first of its kind to combine the Renewable Energy Services Agreement (RESA) financing structure within an ESPC financing vehicle, thus maximizing the incentives and overall value to USGC and enabling extension of the renewable energy financing term beyond 10 years. Funding the investment relied upon a U.S. Department of the Treasury grant.

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Trane Completes Infrastructure Upgrades At Central Montcalm (MI) Public School District Expected to Reduce Annual Energy Costs by 20 Percent
Trane recently completed infrastructure improvements in the Central Montcalm Public School District that will reduce the district's energy costs by 20 percent. District leaders expect that the high efficiency upgrades, which were completed in four district buildings, will save more than $68,000 in annual energy and operational costs. In 2011, the district also received a $61,000 rebate for completing the improvements from Consumers Energy, which provides electric and natural gas service to nearly 6.5 million of Michigan's 10 million residents. The $911,264 project was started in June 2010 and completed in December 2011. The improvements at Central Montcalm Public School District were funded with a performance contract. Trane replaced the 45-year-old boiler in the High School/Middle School with two energy-efficient condensing boilers which will match heating capacity to building needs, saving significant natural gas costs, especially when full boiler capacity is not needed. Lighting retrofits included installation of energy-efficient fluorescent lamps and fixtures with occupancy sensors in gymnasiums, classrooms and common area hallways. Heating and ventilation systems were enhanced to provide heated and fresh air only to currently occupied areas of the building, reducing costs previously spent supplying unoccupied spaces. Upgraded building control systems now enable easier programming when changes are needed. Trane also installed a roof-mounted wind turbine and solar panels which generate enough electricity to offset the cost of lighting the football stadium during the fall season. Leaders also added the Trane Green Dashboard which tracks electricity use in each of the district's school buildings.

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Infrastructure System Improvements Implemented by Trane At Central Piedmont (NC) Community College Expected To Reduce Energy Usage By 20 Percent
Trane recently implemented high-efficiency energy improvements through a performance contract at Central Piedmont Community College (CPCC), North Carolina's largest community college, that are expected to reduce energy usage at least 20 percent annually. The $3.6-million project, which was completed in September, included energy efficient lighting and water upgrades. The heating, ventilation and air conditioning system upgrades included the expansion of the campus building automation system, the installation of direct digital controls, as well as the addition of variable frequency drives for more energy and operational efficiency. Tertiary hot water and chilled water pumping systems, which pump only to necessary levels when needed, were added to the central utility plant to make the Central Campus buildings more efficient. The team also outlined a delayed capital master plan to extend chilled water and hot water lines across the campus to connect the new systems to the older original campus buildings. CPCC captured significant cost savings by leveraging construction activities on the improvements. Initially, trenching was designed to handle two, small chilled water lines. Through project coordination, the work was expanded to a full utility trench and now includes two, large chilled water lines, two hot water lines, as well as the fiber-optic cable network. The anticipated savings on future construction costs are expected to be nearly $1.2 million. Additionally, lighting improvements completed as part of the project are generating rebates from the local utility.

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Wendel Energy Services Helps Orleans County Save Over $1.2M Through An ESPC
Wendel Energy Services, LLC is assisting Orleans County, New York to install improvements through an ESPC. The $1.6 million project will save the County over $1.2 million in energy, operations and maintenance costs over the next 15 years. Key aspects of the county-wide project include: extensive improvements to the Jail which will extend the life of the facility by 25 years or more, boiler and domestic water heating equipment upgrades, energy management system upgrades, high efficiency lighting retrofits, and laundry system improvements. In addition to the financial benefits of the project, the County will reduce their overall carbon footprint by over 8,600,000 pounds of Carbon Dioxide (CO2) annually.

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Member News

FMI Capital Advisors Served As the Exclusive Financial Advisor To Pace Global Energy Services As They Were Acquired By Siemens Industry, Inc.
FMI Capital Advisors served as the exclusive financial advisor to Pace Global in its acquisition by Siemens Industry Inc. Pace Global supports Siemens' strategic commitment to enhance enterprise value for its global clients by truly optimizing energy and resource efficiency. Pace Global has a 36-year history providing energy services to a global portfolio of clients. The company manages more than $5 billion in energy spending for 200 clients around the world, oversees risk portfolio valued at approximately $10 billion and supports development, acquisition and financing of over $100 billion of energy assets.

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OSRAM SYLVANIA Strengthens Position In Two Key Growth Markets
OSRAM has signed an agreement with Townsend Ventures, LLC to increase its stake in Encelium Technologies from 15 percent to 100 percent. This move will enhance the company's position in two key global growth markets, LED based technologies and Light Management Systems (LMS). Encelium, headquartered in Teaneck, N.J., is a leading software technology development company concentrating in advanced lighting control and energy management systems for commercial and industrial buildings. Encelium's expertise and distribution network will extend the already deep OSRAM and OSRAM SYLVANIA reach into the energy efficiency business and position the company for further LED expansion. After closing, Encelium will become part of the OSRAM General Lighting – LMS organization. LMS is a key growth market as lighting controls support the transition of standard lighting products to networked, intelligent and value-added solutions.

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Department Of Energy Announce Philips Lighting North America As Winner of L Prize Competition
The U.S. Department of Energy announced that Philips Lighting North America has won the 60-watt replacement bulb category of the Bright Tomorrow Lighting Prize (L Prize) competition. The Department of Energy's L Prize challenged the lighting industry to develop high performance, energy-saving replacements for conventional light bulbs that will save American consumers and businesses money. If every 60-watt incandescent bulb in the U.S. were replaced with the 10-watt L Prize winner, the nation would save about 35 terawatt-hours of electricity or $3.9 billion in one year and avoid 20 million metric tons of carbon emissions. Submitted in 2009, the Philips LED bulb successfully completed 18 months of demanding field, lab, and product testing to meet the rigorous requirements of the L Prize competition. Launched in 2008, the Energy Department's L Prize competition targets the 60-watt bulb because it is one of the most widely used types of light bulbs by consumers, representing roughly half of the domestic incandescent light bulb market. The winning Philips product excelled through rigorous short-term and long-term performance testing carried out by independent laboratories and field assessments conducted with utilities and other partners. The product also performed well through a series of stress tests, in which the product was subjected to extreme conditions such as high and low temperatures, humidity, vibration, high and low voltage, and various electrical waveform distortions. The Philips L Prize winning product was also required to have a useful lifetime of more than 25,000 hours, compared with 1,000 to 3,000 hours for the products these highly efficient bulbs are intended to replace. The product uses solid-state lighting technology, which utilizes light-emitting diodes (LEDs) instead of electrical filaments, plasma, or gas, and has the potential to use far less energy than other lighting technologies. As the winner, Philips will receive a $10 million cash prize as well as L Prize partner promotions and incentives.

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Last Year Precision P2 Paragon [P2] Products Saved $68-million And Reduced CO2 Output By 900-million Pounds
Precision P2 Paragon [P2] announced that the products it shipped in 2011 will save U.S. facilities over $68- million a year through estimated energy savings of over 681-million kWh. This translates into energy sufficient to power more than 24,000 U.S. homes for a year, an estimated 934-million pound reduction in carbon dioxide emissions, and the rough equivalence of taking 144,308 cars off the road for a year. While environmentally friendly business practices are often viewed as an added cost for businesses, energy efficient lighting is one area where cost savings and environmental benefits are an inseparable combination. The company estimates its products have saved 23 billion kWh of electricity since 1992 or the equivalent of preserving over 183,000 acres of forest from destruction.

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Solutia Launches Industry-Changing EnerLogic® 70 Low-E Window Film
Solutia Inc announced the addition of EnerLogic® 70 low-e window film to its award-winning EnerLogic window film series for commercial and residential applications. Developed as part of Solutia's ongoing commitment to energy efficiency, the EnerLogic window film series features a patent-pending, low-e coating that effectively transforms the insulating power of single-pane windows into double-pane and double-pane windows into triple-pane for year-round energy savings. Building on the success of EnerLogic 35, launched in 2010, EnerLogic 70 is the next generation of EnerLogic glass insulation technology that combines industry-leading low-e performance with a virtually invisible appearance. With EnerLogic 70 low-e window film, heat from the summer sun is reflected away from windows, easing the stress on air conditioners. In winter, radiant heat from a home's heating system is directed back into the room, decreasing energy use, improving comfort and reducing energy bills during both seasons.

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Toshiba Enters LED Lighting Fixture Market
Toshiba International Corporation announced that it is launching energy-efficient, long-lasting LED luminaires for roadway, area, and high- and low-bay lighting applications. Conventional High Intensity Discharge (HID) lighting, such as high-pressure sodium or metal halide, requires frequent maintenance and high wattage usage. In contrast, Toshiba's LED luminaires have a rated life of 60,000 hours or 12 to 14 years, six times as long as metal-halide and twice as long as high pressure sodium products. As a result, the company reports that the LED luminaires provide one of the lowest life cycle costs of any lighting technology. Toshiba entered into an agreement with San Antonio, Texas-based GreenStar Products, Inc. to produce the LED luminaires, and Toshiba is now marketing, selling and distributing these products in the United States, Canada and the Caribbean. The roadway and area lighting can be pole- or wall-mounted and accommodate a 50-degree tilt to meet lighting demands in a variety of applications. The high- and low-bay lighting can be mounted to a ceiling or canopy. These lighting systems produce both square and oblong beam patterns and are best suited for warehouse, cold storage, gymnasium, under-bridge, and parking garage lighting. The innovative product designs for these LED luminaires include advanced photometric controls that deliver superior light distribution and greater uniformity than conventional HID lighting. They are also available in a broad range of outputs, providing the ability to specify the appropriate light level for every application. In addition to reduced energy consumption and long product life, these luminaires contain no mercury or lead, making them an attractive environmentally friendly lighting solution.

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Trane Recognizes World's First International Carbon Neutral Convention Centre
With "Energy Efficiency Leader Award"

The Convention Centre Dublin (The CCD), recognized as the first international carbon neutral convention centre, features a sustainable thermal ice-storage system that is reducing building cooling costs by an estimated 17 percent. The Centre, which was opened in September 2010, features high-efficiency infrastructure systems, including the thermal ice-storage solution. These systems were selected specifically to help meet sustainability objectives and to create a reliable, comfortable and productive environment for occupants. In recognition of The CCD's commitment to optimized building performance and sustainability, Trane is presenting the organization with its "Energy Efficiency Leader Award." The CCD is the first convention centre in the world to receive this award.

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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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