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NAESCO Newsletter

April 2012

NAESCO Updates

Featured Articles

  • Utility Energy Efficiency Programs in the Midwest
    Interview with Charley Budd, Principal and Daniel S. Waintroob, Principal/Team Leader of DNV KEMA Energy & Sustainability who on behalf of KEMA are responsible for administering utility efficiency programs in the Mid-West. Mr. Budd will be a panelist at our upcoming Midwestern Workshop in June 7 in Milwaukee, Wisconsin.

Industry News

Member Projects

Member News


NAESCO Updates

Upcoming NAESCO Events

MARK YOUR CALENDARS NOW AND REGISTER EARLY!

NAESCO Webinar Series
A New Generation of Financing Enhancements to Support Energy Efficiency Investment
Wednesday, May 2, 2012 - 2:00 pm EDT
Wednesday, May 16, 2012 - 2:00 pm EDT

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 and Exhibition Prospectus

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NAESCO Spring 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. The energy policy deadlock in Washington continues, as the 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.

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 continue to 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, with the most recent developments highlighted in italics 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 working 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.

We have recently learned that a major revision of the proposed new GESA rules may be in the works, and the Working Group of Pennsylvania ESCOs is considering whether to delay further action until we see these revisions.

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.

In late March, the CPUC issued a Proposed Decision (PD) for the two-year Transition Period (2013 and 2014). NAESCO and many other parties were surprised that the PD did not outline the program we expected, which was the continuation of most of the programs in the portfolio and a focus on a few major issues that must be resolved to set the 2015 programs on a firm foundation. Instead the PD is a 450-page document that contains a number of major contradictions and attempts to micromanage virtually all of the major aspects of all of the programs. NAESCO as well as other parties submitted comments asking the CPUC to issue an Alternate Decision that is appropriate to a Transition Period, and we are waiting for a decision in the case.

ESCOs and Utilities Can Accelerate ESPC Programs - New York
ESCOs and the New York Power Authority (NYPA), the states largest utility, have had somewhat of 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.

NYPA has recently provided a notice to NAESCO of a pending RFQ for ESCOs interested in participating in its new programs. The notice is posted in the "Members Only" section of the NAESCO website. NYPA expects to issue the RFQ in mid-May.

NAESCO and a number of ESCOs also had a successful meeting with the New York City Energy Efficiency Corporation (NYCEEC) in mid-March. The NYCEEC explained its financing program, and answered questions from the ESCOs, who are now following up with one-on-one meetings with NYCEEC to discuss financing of specific ESCO projects.

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-legally authorized 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.

Georgia recently announced the results of its RFQ for the pre-qualification of ESCOs. Fifteen ESCOs - thirteen NAESCO members - are qualified to participate in the program. Unfortunately, the Georgia Environmental Finance Authority (GEFA) has announced that the program will start extremely slowly, with one mid-sized prison project developed in 2012 and approved for financing in mid-2013. NAESCO is working to support its members in Georgia to make the case to GEFA and the Governor's Office that the GEFA program should be accelerated.

Pushback Against ESPC from A/E Firms and Contractors
The latest attempt to modify ESPC programs so that they resemble traditional public construction spec-and-bid projects is in Illinois. NAESCO helped to defeat similar legislation in California and Maine last year. The Illinois legislation began with a simple piece of legislation, supported by several ESCOs, to extend the maximum term for state building ESPC projects from ten years to twenty years. This legislation was then modified into House (HB5503) and Senate (SB3802) versions that contain provisions that undermine ESPC projects, including: eliminating measures with paybacks under five years; requiring that A/E services be bid rather than subcontracted by ESCOs; requiring that ESCOs bid out subcontractor installation work and submit pricing with their RFP responses (before the project scope is finalized); and, requiring that ESCOs post bonds for the project guaranteed savings for the full term of the project (such bonds do not exist in the commercial market). ESCO is working with a group of ESCOs to modify SB3802 to conform to the enabling legislation that works very well in the K-12, local government and university markets. The sponsor of HB5503 has removed the House bill from the legislative calendar.

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:

  • Improving state ESPC enabling legislation (e.g., Michigan) that does not clearly empower state and local government managers to undertake ESPC projects and that provides clear guidance about streamlining project processes, such as RFQ selection of project ESCOs and the use of third-party project financing.
  • Educating state officials (e.g., North Carolina), such as the Attorney General and/or the State Treasurer, about the competitive value of an RFQ, rather than an RFP for a fully priced project, for the selection of a project ESCO.
  • Educating state officials who are trying to make ESPC projects function like traditional spec-and-bid projects (e.g., Ohio) that the purpose of ESPC is to provide a more cost-effective alternative to spec-and-bid.

In each state, NAESCO has established a state committee of ESCOs, and is working with the respective 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

NAESCO is pleased to welcome the following new members and to include their "Statements of Introduction" about their organization.

Cooper Lighting - Affiliate Member - Cooper Lighting, headquartered in Peachtree City, Georgia, is a leading manufacturer of track and recessed lighting in North America and one of the largest fixture manufacturers of LED, fluorescent, H.I.D., exit and emergency, vandal-resistant, landscape and complex environment lighting. Cooper Lighting is comprised of 20 strong brands with twelve manufacturing facilities throughout the U.S., Canada and Mexico.

The mission of Cooper Lighting is to be the leading provider of innovative, high-quality lighting fixtures and related products to worldwide commercial, industrial, residential and utility markets. Cooper Lighting has a total commitment to a Customer First attitude and to being consistently superior to competitors in fulfilling customer needs. Cooper Lighting is also committed to growing profitably and to the opportunity for all employees to contribute, grow, have fun and take pride in their work.

Munro Distributing Company - Affiliate Member - Munro Distributing Company is a forward-thinking purveyor of electrical, conservation and renewable energy solutions. For six decades and three generations, we have leveraged our expertise, buying power and value-add philosophy to deliver exceptional products and services to our National Account, Contractor, ESCO and Utility patrons nationwide. Headquartered in Massachusetts, Munro also has locations in Rhode Island, New York, New Jersey, and California.

Munro Distributing is comprised of six divisions: Energy Efficiency, Renewable Energy, Electrical Products, Power Distribution & Commercial Lighting, Mechanical Energy, and Life Safety. Munro has provided energy efficiency solutions for thousands of projects, including some of the nation's largest LEED initiatives. We have also supplied 500,000 square feet of residential, commercial and municipal rooftops with solar arrays. For more information, please visit www.munrodistributing.com.

Fox Rothschild LLP - Associate Affiliate Member - Fox Rothschild LLP is a national law firm with more than 500 attorneys practicing in 16 offices coast to coast. Attorneys in Fox's Government Contracts & Procurement Group regularly provide strategic counsel and representation to clients involved in the bidding and fulfillment of government contracts at all levels, including contractors who specialize in energy savings performance contracting. We work closely with clients throughout the process to help minimize risk and maximize growth - from initial review of procurement documents through to source selection, contract performance and negotiations, or through protest and litigation, if such disputes cannot be avoided. Partner Tamara McNulty, tmcnulty@foxrothschild.com and Government Contracts & Procurement Chair Reggie Jones, rjones@foxrothschild.com are based in the firm's Washington, D.C. office and look forward to becoming involved with NAESCO. More information about Fox Rothschild can be found at www.foxrothschild.com.

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Featured Articles

Utility Energy Efficiency Programs in the Midwest

Interview with Charley Budd, Principal and Daniel S. Waintroob , Principal/Team Leader of DNV KEMA Energy & Sustainability who are responsible on behalf of KEMA for administering utility efficiency programs in the Mid-West. Mr. Budd will be a panelist at our upcoming Midwestern Workshop in June 7 in Milwaukee, Wisconsin.

Can you please describe what utility programs that you manage in the Mid-West?
Currently we manage C/I programs for ComEd (C/I customers only - government agencies are with DCEO) in IL, Consumers Energy and DTE in MI, AEP Ohio, Indiana, Michigan and Kentucky Power.

Of the programs you manage, do you find there are certain elements that work better than others?
All programs have certain core offerings-- Prescriptive and Custom Incentives - most offer New Construction and there is the ability for very large customers in Ohio and Michigan to "self-direct" . We also managea number of pilots in such areas as continuous improvement, data center management, RC x and technical assistance. A common and critical element in our Prescriptive and Custom programs is a close link to trade allies, i.e. enablers such as equipment dealers, distributors and installers. These groups embed the utility-offered incentives into their sales presentations and proposed project economics to improve the financial attractiveness to prospective customers. In addition, these valuable market actors are trained and familiar with applications and documentation required by the utility programs, and most assist or completely manage the application process on behalf of their customers.

Do you feel that utilities are appropriately rewarded in the rate-making process to invest in energy efficiency?
"Appropriate" is a loaded word - however, the utilities that engage us are sincerely oriented to meeting or somewhat exceeding their legislated goals and offering their customers a high quality program that meets the customer's needs as well.

Have ESCO capabilities been successfully integrated in the existing utility energy efficiency programs?
For a variety of reasons, ESCOs' activities with our programs have varied and I suspect there are missed opportunities from both perspectives.

ESCOs should seek to engage the DSM program administrator early in the project to help select the options that provide the best incentives. Also, all of our programs have periodic "trade ally" meetings to discuss the programs and provide updates. ESCOs should seek to participate in these as well.

Do you feel that utility programs are designed to meet energy efficiency resource acquisition goals or more in response to social and political objectives?
The utilities for whom we work are highly focused on the resource acquisition as they have substantive goals in GWH hour savings and strong incentives (positive and negative) for meeting these goals. Of course, there are other considerations as well - but, in the current world of DSM - meeting energy savings goals are key. Utilities are typically goal driven in their DSM initiatives, and most are based on specific goals set forth in their respective state legislation. Legislation in some states include penalties for not achieving energy savings goals.

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Industry News

Study Finds States And Utilities Leading On Industrial Energy Efficiency Programs
States and utilities invested over $811 million in industrial energy efficiency programs in 2010, far exceeding the spending by the federal government and other national-level programs. Nationwide, all industrial energy efficiency programs spent well over $1.1 billion in 2010, according to a new report, Money Well Spent: Industrial Energy Efficiency Program Spending in 2010, released by the American Council for an Energy-Efficient Economy (ACEEE).

The report details a first-time ever estimate of total industrial energy efficiency deployment and technical assistance at the federal, state, and utility levels. States and utilities were responsible for about two-thirds of all industrial energy efficiency program spending in 2010. Industrial energy efficiency program spending varied considerably from state to state. New York ranked first in overall industrial program spending, bolstered by strong utility spending and the significant impacts of the programs run by the New York State Energy Research and Development Authority (NYSERDA). The next five biggest spenders on industrial energy efficiency were California, Pennsylvania, Washington, Massachusetts, and Oregon.

Industrial energy efficiency program spending in 2010 was enhanced by spending at the state level as part of the American Recovery and Reinvestment Act of 2009 (ARRA), or stimulus. ACEEE's study estimated that ARRA funding to industrial energy efficiency efforts accounted for about $228 million or 20% of the total in 2010. These funds helped to encourage the establishment of new industrial energy efficiency programs around the country, including financing and technical assistance programs that have helped jump-start a cleaner and more energy-efficient economic recovery.

To read the report, click here.

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Army Makes Huge Investments In ESPC
At the NAESCO Federal Workshop on March 22, Deputy Assistant Secretary of the Army for Energy and Sustainability Richard Kidd IV, announced that the Army is likely to executive $800 million in performance contracts over the next two years, more than double the amount that was asked of the Army as part of President Obama's December 2, 2011 Presidential Memorandum. Once executed, these new projects will raise the total level of Army investments made through performance contracting to almost $2.5 billion, all at no additional expense to the taxpayer.

Last year, President Obama directed the federal government to enter into at least $2 billion worth of performance-based contracts over the next two years to be satisfied through either Energy Savings Performance Contracts or Utility Energy Services Contracts.

Since the inception of ESPCs and UESCs, the private sector has invested $1.03 billion in the execution of 157 different Army ESPCs, and $522 million in the execution of 351 Army UESCs. These past investments have resulted in cost avoidance to the Army of $148 million and an energy savings of 7.986 trillion British thermal units (Btu). This energy savings equates to some 2,650 rail-cars of coal, at 140 tons per car.

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Study Finds $1 Trillion Market Opportunity In Building Retrofits
A new study finds that in the United States alone, more than $279 billion could be newly invested across the residential, commercial, and institutional market segments yielding more than $1 trillion of energy savings over 10 years, equivalent to savings of approximately 30% of the domestic annual electricity costs.

The paper, published by DB Climate Change Advisors (DBCCA) and The Rockefeller Foundation, claims that if all of these retrofits were undertaken, more than 3.3 million cumulative job years of employment could be created. These jobs would include a range of skill qualifications, and would be geographically diverse across the United States. Additionally, if all of these retrofits were successfully undertaken, it would reduce U.S. emissions by nearly 10 percent.

With respect to creating a favorable policy environment for overall market development, the study suggests that policymakers consider the following:

  1. Mandates that set comprehensive energy efficiency standards.
  2. Disclosure and benchmarking laws, such as those implemented in New York City or voluntary systems such as proposed by Greenprint.
  3. Government can lead by example by using its existing assets (e.g. GSA properties) to test emerging financing models and prove out different approaches, as it did with the LEED standards. Subsidies, incentives and guarantees to reduce any risk associated with energy efficiency investments.

The paper, entitled, "United States Building Energy Efficiency Retrofits: Market Sizing and Financing Models," can be downloaded by clicking on the title.

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Study Finds Global Clean Energy Investment A Record $263 Billion In 2011
Global clean energy finance and investment grew to $263 billion in 2011, a 6.5 percent increase over the previous year, according to new research released by The Pew Charitable Trusts. Among "Group of Twenty" (G-20) nations, the United States reclaimed the top spot from China, which has led the global clean energy race since 2009. Germany, Italy, the United Kingdom, and India were also among the nations that most successfully attracted private investments last year.

Key report findings include:

  • Led by 42 percent growth in the United States and 15 percent in Brazil, clean energy investment in the Americas region grew by more than 21 percent to $63.1 billion, faster than any other region.
  • The clean energy sector in the Asia/Oceania region increased more than 10 percent to $75 billion. Relatively flat investment in China was mitigated by sharp gains in India, Japan, and Indonesia, which were among the fastest-growing clean energy markets in the world.
  • The United States remains the leader in venture capital financing, an important measure of energy innovation, attracting $6 billion, or 70 percent of the G-20 total. Germany and China were distant followers, with $635 million and $458 million, respectively, in venture capital investments.The clean energy sector in the European region grew by a modest 4 percent but remains the leading destination for such investment, at $99.3 billion. Significant investment growth in Italy, the United Kingdom, and Spain helped to offset declines in other European Union member states. Germany and Italy continue to lead the world in deployment of small, distributed solar photovoltaic power installations, accounting for more than 50 percent of worldwide solar capacity additions, and 38 percent of G-20 solar technology investments.

To download the report, Who's Winning the Clean Energy Race?, please click on the title.

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Study Finds U.S. Industrial Companies Must Embrace Energy Management To Remain Competitive
Industrial and manufacturing companies in the United States use close to one-third of all the energy consumed in the country on an annual basis. According to a recent report from Pike Research, U.S. industries must take additional measures to ensure they remain cost-competitive on a global scale, and the efficient use of energy is one area that U.S. industrial companies can improve upon to accomplish that. Facing high price volatility and global competition for market share, companies must realize that energy and sustainability issues are a critical requirement for their competitiveness, the report states.

Pike Research posits that this realization will lead to significant growth in industrial energy management software and services through the remainder of this decade.They project that the U.S. market for industrial energy management software and services will rise from $960 million in 2011 to $5.6 billion by 2020, a compound annual growth rate of 21.6%.

Pike Research's report, "Energy Management Systems for Industrial Markets", examines energy management software and services market trends, industrial capital expenditures, risk appetite characteristics for implementing energy management initiatives, and market forecasts and growth prospects in the United States for the period from 2011 through 2020. Click on the title to read the report in its entirety.

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Study Finds Huge Savings On Heating & Cooling Possible With Efficiency Controls
According to a recent report by the Department of Energy's Pacific Northwest National Laboratory, U.S. commercial building owners could save an average of 38 percent on their heating and cooling bills if they installed a handful of energy efficiency controls that make their heating, ventilation and air conditioning systems more energy efficient. The estimated savings depend on local climate and energy prices and range from a whopping 67 percent cost savings in San Francisco to a still-substantial 28 percent in Seattle.

The report examines options for improving the efficiency of packaged HVACs, which combine compressors, fans and heat exchangers into one unit. Packaged HVACs regulate temperatures inside more than 60 percent of the commercial building floor space in the United States, where commercial buildings consume as much energy as about 90 million typical American homes each year. The report suggests that about 35 percent of that energy is used by HVAC systems, which are often poorly maintained or ignored, causing them to run inefficiently.

The report examined four different control methods to implement in conjunction with existing rooftop packaged HVACs:

  • Air-side economizers use cool outside air to chill the building instead of creating cool air with the HVAC compressor. Some building codes already require cooling systems to include these, unlike the three other controls examined by the PNNL team.
  • Supply fan speed controls slow or speed up the ventilation fan that circulates the building's air based on whether or not a desired temperature or amount of fresh air has been reached instead of continually running the fan at full speed.
  • Cooling capacity controls run the HVAC compressor at different speeds based on need. Demand-controlled ventilation slows or speeds up fans and air intake based on carbon dioxide levels inside the building instead of running ventilation fans at a constant rate.

You can download the report here.

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Member Projects

Ameresco Announces Work On Energy Efficiency Project At Nevada's Fourth Largest School District
Ameresco, Inc. recently announced its new ESPC with Lyon County School District (LCSD) in western Nevada. The $3.6 million ESPC is expected to save the state's fourth largest school district over $345,000 annually for 15 years. The comprehensive energy efficiency project comprises infrastructure upgrades to 19 schools and 4 administrative buildings representing over 1.2 million square feet of facilities. LCSD serves the entire county with schools in the communities of Dayton, Fernley, Silver Springs, Smith Valley and Yerington. There are eight elementary schools, five middle schools, four high schools, one K-12 school and the Western Nevada Regional Youth Center. LCSD will repay the up-front costs with a portion of their projected annual savings over the contract's 15 years. Energy efficiency measures scheduled for completion by October 2012 include lighting systems, vending machine controls, computer power management, trash compactors, demand controlled ventilation and programmable thermostats. The upgrades are expected to cut LCSD's operations and maintenance costs by nearly $25,000 by retrofitting light installations district wide. In addition, making these energy efficiency upgrades also allows the district to capture $77,000 in rebates from the local natural gas and electric utility companies.

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Ameresco To Start Implementation Of Energy Efficiency Measures At McAllen Independent School District in Texas
Ameresco, Inc. recently announced that it has signed an ESPC with the McAllen Independent School District (McAllen ISD), one of the largest districts in the Rio Grande Valley. Ameresco has begun construction on energy efficiency measures at 39 facilities district wide in McAllen, Texas. Once complete, the measures are expected to save McAllen ISD more than $1.2 million annually over the term of the contract. Ameresco's ESPC was able to stretch McAllen ISD's dollars into more than $16 million of infrastructure renewal. A few of the upgrades and energy efficiency measures that Ameresco will begin to implement this month including retrofiting 39,958 light fixtures, installing 4,494 automatic lighting controls, replacing 1,003 sink aerators with low flow aerators, installing power management scripts for 10,000 computers, installing 121 internet-enabled programmable thermostats in portable buildings, installing 16 air curtains for kitchen backdoors, replacing failing roofs at four schools, replacing 118 split system heating and air conditioning units, and replacing five chillers

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Building Controls & Services, Inc. Helps New York School District to Reduce Energy Use
The Randolph Central School District in Randolph, New York recently completed the implementation of over $900,000 in facility enhancements which will reduce annual utility costs by nearly $100,000. Building Controls & Services, Inc. (BCS) completed the work under an Energy Performance Contract and is guaranteeing the savings for the district. BCS also worked with the district and the New York State Research and Development Authority to obtain almost $300,000 in stimulus funding for the project. Under the project, BCS installed new high efficiency interior and exterior lighting, upgraded motors with variable frequency drives, expanded the existing automated control system, and retro-commissioned the district's mechanical systems.

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Building Controls & Services, Inc. Completes Comprehensive Guaranteed Energy Savings Project At Slippery Rock University.
Slippery Rock University in Pennsylvania recently completed the implementation of nearly $5 million in facility enhancements in 10 of its campus buildings. Building Controls & Services, Inc. partnered with the University on this Guaranteed Energy Savings Agreement (GESA) project which will result in annual utility cost savings of more than $240,000. The project scope included water conservation measures, upgraded/expanded direct digital controls, new high efficiency lighting, and multiple mechanical system upgrades.

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Building Controls & Services, Inc. Assists The Ft. LeBoeuf Area School District In Pennsylvania To Reduce Energy Use
The Fort LeBoeuf School District in Waterford, Pennsylvania has selected Building Controls & Services, Inc. (BCS) to implement a $1.2M Guaranteed Energy Savings Agreement (GESA) project in four of the district's facilities. When completed, the project will yield guaranteed annual energy savings of more than $90,000. The project scope includes interior and exterior lighting upgrades, HVAC system upgrades, control system upgrades, and domestic hot water system upgrades.

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Energy Solutions Professionals Partners With Pittsburg State University To Gain New Insight on Utility Costs
Energy Solutions Professionals announced that they are currently in the process of installing 147 utility submeters at Pittsburg State University in Kansas. 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 (ARRA). 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.

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Chevron Energy Solutions Works With Huntington Beach City School District To Save More Than $15 Million With Solar Upgrades
Huntington Beach City School District and Chevron Energy Solutions recently announced the completion of a 592-kilowatt solar electric system that will reduce energy costs for operations at nine elementary school sites in Huntington Beach, saving the District more than $15 million over the life of the project. Coupled with a comprehensive energy education curriculum, the program is designed to inspire students to learn about clean energy technologies and concepts. The new system is part of a project that adds solar photovoltaic panels mounted on shade structures to five campuses, upgrades interior lighting at nine campuses, and replaces rooftop cooling/heating unit at two campuses, including upgraded controls. The project is expected to cut the Huntington Beach City School District's electrical utility usage by 30 percent. It is the first energy efficiency and solar project at an elementary school district in Orange County. Chevron Energy Solutions designed and engineered the solar system, provided the installation, and will perform operation and maintenance services, as well as guaranteeing the system's performance, which is expected to meet more than 30 percent of the District's demand for electricity. The company also implemented the energy efficiency improvements to campus heating, ventilation and air conditioning (HVAC) and lighting systems, which are expected to reduce the District's annual energy consumption and provide other benefits, including improved lighting quality.

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Union City And Chevron Energy Solutions Celebrate Completion Of Energy Efficiency Projects Financed By $7 Million in Anticipated Savings
Mayor Mark Green and the City Council of Union City, California joined Chevron Energy Solutions to announce the completion of infrastructure upgrades that will dramatically reduce Union City's future energy and maintenance costs. The project was launched in 2010 and by utilizing anticipated savings in energy and maintenance costs as well as a Federal Energy Efficiency Conservation Block Grant to finance the project, Union City expects to generate a net savings over the project's 15-year lifespan. In total, the projects include replacing 4,500 streetlights to save energy and improve lighting, a roof structural upgrade to City Hall to improve earthquake safety, and new roof covering and HVAC systems at multiple City facilities.

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Chevron Energy Solutions Helps Rootstown, Ohio Local School District To Save More Than $1 Million
Rootstown Local School District, Ohio and Chevron Energy Solutions recently announced the completion of a collaborative energy conservation project that will reduce energy costs for operations at its three schools in Rootstown, which could save the District more than $1 million over the life of the project. The new project includes district-wide lighting system upgrades; a boiler replacement at Rootstown Middle School; a building automation system retrofit at all facilities; and replacement of the gymnasium bleachers at Rootstown High School in time for the first home basketball game. The project is expected to cut the district's utility usage by 23 percent and provide other benefits, including an improved learning environment, improved lighting quality and aesthetics, reduced maintenance costs and consistent indoor climate quality. Chevron Energy Solutions designed and engineered the facility improvements under an Ohio HB-264 project. Through the energy efficiency improvements, Rootstown Local School District is reducing its purchase of electricity and natural gas and, in turn, reducing carbon emissions by more than 319 metric tons, equivalent to planting more than 69 acres of trees.

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Honeywell and Hawaiian Electric Enter Into Demand Response Pilot Program
Honeywell has entered into a pilot program with Hawaiian Electric Co. in Honolulu to demonstrate how demand response technology can help integrate more intermittent renewable energy to the electric grid. During the two-year pilot, the utility will connect with commercial and industrial customers to temporarily reduce the need for electricity - critical to maintaining grid reliability as Hawaii reduces fossil fuel dependence.

Hawaiian Electric will conduct a test of "fast demand response" (Fast DR) technology, which gives the utility and facilities the tools to reduce demand within 10 minutes of notification of a pending imbalance between supply and demand. Companies receive an incentive to participate and when Fast DR events are triggered they receive an additional per-kilowatt-hour incentive credit. The pilot will validate the technical design and tariffs for a full-scale demand response program to support Hawaii's renewable energy goals.

The pilot will help Hawaiian Electric create direct connections to loads at commercial and industrial facilities. For the first phase, Honeywell will work with Hawaiian Electric to enroll and connect customers to a regional operating center. If demand outpaces supply, Hawaiian Electric will trigger a notice for customers to reduce demand within 10 minutes, providing more than 6 megawatts of semi-automated load control when the program is fully subscribed. A second phase will feature the use of automated demand response tools from Honeywell, including Akuacom and Tridium technologies.

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Pepco Energy Services Selected By DC Water To Build And Operate A $170 million CHP Plant At The World's Largest Advanced Wastewater Treatment Plant
Pepco Energy Services, Inc., and DC Water have signed an agreement for Pepco Energy Services to design, build and operate a Combined Heat and Power plant at DC Water's Blue Plains Advanced Wastewater Treatment Plant (AWTP). The Blue Plains AWTP serves approximately 725 square miles of DC, Maryland and Virginia and has a capacity of 370 million gallons per day. The 153 acre plant is the largest advanced wastewater treatment facility in the world. Pepco Energy Services will design and build the CHP project for $81 million, and it will be the first in North America to use biogas from an AWTP facility. The CHP project will produce at least 14 MW of electric power that will supply the Blue Plains facility with nearly 30 percent of the AWTP's average power demand. This is equal to the electricity required to power more than 8,000 homes. In addition to designing and building the CHP plant, Pepco Energy Services will provide on-site operations and maintenance services valued at more than $89 million over the 15-year contract term. The overall project is valued at approximately $170 million. The new CHP plant will be an integral part of DC Water's new thermal hydrolysis and anaerobic digestion project, which will be the largest in the world. The thermal hydrolysis process uses high-pressure steam from the CHP plant to increase the rate of biogas production and neutralize contaminants in waste streams. The CHP plant will also include three Solar Mercury 50 low-nitrogen oxide gas turbines, digester gas cleaning and compression equipment, heat recovery steam generators, duct burners, a backup boiler, electrical equipment needed to operate in parallel with the utility grid and ancillary systems, including water treatment and process control systems. Overall, the CHP facility will reduce DC Water's greenhouse gas emissions by approximately 40 percent, as well as reduce the risk of increased disposal costs and provide a hedge against increases in future power costs.

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Pepco Energy Services Selected For $5.3 Million Energy Savings Performance Contract At Virginia Tech
Pepco Energy Services, Inc. has been selected to implement a comprehensive energy savings performance contract project for Virginia Polytechnic Institute and State University in Blacksburg, Virginia. Pepco Energy will install more than $5.3 million in new energy conservation measures for five buildings on the university campus which comprise nearly 561,000 square feet academic, athletic and student dining areas. Phase One of the project will include lighting retrofits, HVAC controls upgrades, water conservation measures, variable frequency drives, kitchen ventilation upgrades, cooling tower retrofits, building envelope sealing, and steam system repairs. Following the approval of Virginia Tech's Climate Action Commitment Resolution in 2009, the accompanying Sustainability Plan established a key action item to develop a ‘campus demand side and load management program' involving energy savings performance contracting. The new and improved energy infrastructure should reduce energy consumption by more than 10 percent in the respective buildings and lower carbon dioxide emissions by approximately 4,200 metric tons. Over the 11-year performance period, Virginia Tech expects to save more than $8.4 million.

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Pepco Energy Services Awarded $11 Million Energy Savings Performance Contract By The Virginia Department Of Military Affairs
Pepco Energy Services, has been chosen to implement a comprehensive energy savings performance contract project for the Virginia Department of Military Affairs. The $11 million contract calls on Pepco Energy Services to install new direct digital controls, energy-efficient boilers and geothermal heating and cooling systems, as well as implement water conservation measures for Army National Guard Armories throughout Virginia. Pepco Energy Services will also provide much needed infrastructure improvements for the facilities, many of which have roofs that are leaking. The project will impact 58 facilities, including 24 Army National Guard Armories. Over the 15-year contract term, the Virginia Department of Military Affairs will save more than $15.8 million, a total sum that includes maintenance savings. The project will reduce carbon emissions for the Virginia Department of Military Affairs by approximately 720 metric tons and will reduce energy use by more than 15 percent each year.

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Marshall County, Tennessee and Siemens Building Technologies Undertake $3 Million ESPC
In March 2009, Marshall County Tennessee school administration officials had Siemens Building Technologies perform a preliminary analysis to better understand the energy and water consumption characteristics of their school and administrative facilities. Ultimately, a comprehensive energy audit led school administrators to sign a $3 million energy savings performance contract that in its construction phase put local contractors back to work and is now saving the county more than $227,000 in equivalent annual energy costs. In May 2011, Siemens began the construction phase of the project using local and regional contractors to complete HVAC and lighting system upgrades and other improvements to the county's 10 schools and administrative building. As a result, facility improvements have generated significant annual energy savings including reduction of electricity consumption by 845,308 kWh,water conservation of 2,139,655 gallons, 2,812 therms of natural gas, 418 therms of natural gas per boiler per school per year, and CO2 emissions cut by 249,751 pounds.

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Clayton County Infrastructure Improvements Implented By Trane Will Save $820,000 In Phase I
Energy saving upgrades completed by Trane in seven Clayton County, Georgia buildings last year are positively impacting the county budget in excess of $820,000 following project completion and the first year of operation. This total includes $220,000 of energy savings during project construction and $600,000 of savings reported during the first year's measurement and verification program. The completed improvements represent phase one of a county-wide improvement effort. Phase two, scheduled for completion in May, will focus on improvements in gas collection and destruction at the county landfill.

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Leaders At Three Rivers Community Schools in Michigan Anticipate Infrastructure Upgrades Implemented By Trane Will Reduce Energy Costs More Than 30 Percent
Trane recently completed infrastructure upgrades at Michigan's Three Rivers Community Schools that will cut energy costs by more than 30 percent and save more than $197,000 in annual energy and operational costs. The upgrades were launched in July 2010 and completed in December 2011 to reduce costs while improving the learning environment within classrooms and increasing sustainability district-wide.

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Rock Creek Unified School District 323 in Kansas Partners With Trane To Upgrade Infrastructure
Education leaders at Rock Creek Unified School District (USD) 323 in Kansas expect Trane's recently completed energy efficiency upgrades to save the district nearly $154,000 a year while enhancing the teaching and learning environment. The improvements at Rock Creek USD 323 were funded with a performance contract which included lighting upgrades in classrooms and hallways in all district buildings,high efficiency heating, ventilation and air conditioning systems,automated controls to maximize efficiency of both the lighting and the HVAC and the plumbing was updated with low-flow fixtures. Improvements in the Junior/Senior High School building also included replacing an end-of-life air-cooled chiller and replacing the original pneumatic controls with a direct digital control system which manages all HVAC systems in the building.

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Wendel Energy Services Helps Town Of Hamburg, New York Become More Efficient
Wendel Energy Services is assisting the town of Hamburg, New York in their efforts to become more energy efficient through an Energy Performance Contract combined with funding provided by the American Recovery and Reinvestment Act - Energy Efficiency Conservation Block Grant Program. The town-wide project will provide facility improvements at the Town Hall, Ice Arena, Buildings and Grounds, Highway Department as well as several other town buildings. Facility improvements will include energy efficient lighting & lighting controls, building management system upgrades, and building envelope improvements. A key area of focus will be improvements at the Ice Arena which will include a low emissivity ceiling as well as water treatment system improvements. The project is expected to save the town over $900,000 over a 20 year period and will reduce carbon emissions by 313,631 pounds annually.

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Member News

Pepco Energy Services Wins Maryland Quality Initiative's 2012 Green Sustainability Environmental Award of Excellence
Pepco Energy Services, Inc., and the Maryland Aviation Administration were honored with the Maryland Quality Initiative's 2012 Green Sustainability Environmental Award of Excellence on February 2nd. The award was bestowed in recognition of recent solar energy improvements at BWI - Thurgood Marshall International Airport. As part of the overall energy savings and renewable energy performance contract project, a 505 kW solar photovoltaic system was installed on the Daily Garage at BWI Marshall Airport. With 47 rows of 12 PV panels on each of the four parking bays, the solar system produces more than 619,000 kWh of electricity each year for the facility. The renewable energy produced through the solar canopy reduces the airport's annual carbon footprint by approximately 380 metric tons, thereby assisting the state of Maryland in meeting its "going green" goal. In addition, the solar canopy provides for covered parking spaces on the top level of the garage. The solar portion of the overall project was funded through the EmPOWER Clean Energy Communities grant program, through which the Maryland Aviation Administration received a $500,000 Project Sunburst solar grant from the Maryland Energy Administration. The $20.9 million project called on Pepco Energy Services to design and implement a total of 13 energy conservation measures to improve the overall energy efficiency of more than 30 airport buildings, including the main terminal, which covers more than 9 million square feet. The project saves the Maryland Aviation Administration approximately $2 million each year in energy costs.

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Siemens Acquires Pace Global Energy Services
Siemens Industry, Inc. recently announced it has completed the acquisition of Pace Global Energy Services, LLC in Fairfax, Va. The acquisition of 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 a risk portfolio valued at approximately $10 billion, and supports the development, acquisition, and financing of over $100 billion of energy assets worldwide. Pace Global combines in-depth industry knowledge with commercial, technical, financial, and regulatory expertise to help organizations maximize enterprise value and manage risk in today's complex energy and environmental markets. Pace Global will integrate within the Siemens Building Technologies division, but will continue to operate as a separate operating unit.

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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.

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