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NAESCO Newsletter

July 2012

Featured Articles

NAESCO Updates

Industry News

Member Projects

Member News

Featured Articles

NAESCO Issues Position Paper Urging Passage of Shaheen-Portman and Bass-Matheson Bills

In conjunction with Association and individual member company lobbying, NAESCO has released a position paper urging lawmakers to bring to the floor and enact the Shaheen-Portman and Bass-Matheson legislation currently awaiting a vote in the Senate and House respectively. NAESCO is also in the process of placing an Op-ED in the national media which argues that these bills have wide bi-partisan support and passage of the pro energy efficiency legislation should not be swept up in the politics of the presidential campaign and put on the legislative shelf. A copy of the position paper can be found here.

NAESCO Position Paper on Shaheen-Portman and Bass-Matheson
NAESCO urges the Congress to enact two bills -- Senate bill, S 1000 (Shaheen-Portman) and House bill, HR 4017 (Bass-Matheson) -- that have broad bi-partisan sponsorship and that would enable the nation to take several small steps toward increased energy efficiency. There is little controversy about the substance of the bills, and most of the provisions of the bills seek to actually implement policies that are already mandated by law. However, neither the Senate nor the House is likely to act on the proposed legislation because both Republicans and Democrats are worried about how their votes might be positioned in terms of the politics of the presidential campaign.

Both bills are based on the recognition that no form of energy the country uses in the future -- coal, nuclear, natural gas, oil, solar, wind or biomass -- will be cheap enough to use as wastefully as we use energy today. The bills mandate that the government truly leads by example and eliminates the waste of energy in government buildings. Conservatives like these provisions because energy efficiency retrofits of the over 500,000 buildings owned and or operated by the federal government simply stop the waste of energy and reduce utility costs to boot. Liberals like these provisions because the more efficient use of energy reduces the use of the fossil fuels currently being used to provide electric power thereby reducing greenhouse gas emissions. Both conservatives and liberals like the provisions because they create jobs -- about 150,000 good jobs -- across the country.

Let's take a quick look at the provisions.

Section 101: Utilizing Energy Savings Performance Contracts
The Bass-Matheson bill would require that the federal government utilize private investment to meet the energy efficiency requirements of the Energy Independence and Security Act of 2007 (EISA), amending National Energy Conservation Policy Act (NECPA). The logic behind this requirement is that performance contracts allow the government to cut energy waste without using appropriated funds, by re-purposing the money currently spent on wasted energy into a project financing payment stream. Since the federal government can finance projects today at historically low rates, this seems to be a good fiscal policy.

Section 102: Demand Response Programs
The Bass-Matheson bill would require that federal government facilities participate in the demand response programs operated by utilities or electric system operators (ISOs and RTOs). Participation in these demand response programs would reduce the electric bills of the federal facilities, and lower the electric bills of all the electricity customers, by reducing the need for the utilities to generate or buy very expensive power to serve peak loads. Tens of thousands of privately owned buildings are participating in demand response programs across the country. The federal government should also participate?

Section 103: Federal Data Center Consolidation
The Bass-Matheson bill would require federal agencies to consolidate data centers on a rapid timetable in order to save energy in unnecessary computer equipment and in the space conditioning of unnecessary computer space. Again, private industry is doing this as fast as it can and the government should too.

Section 104: Adoption of Personal Computer Power Savings Techniques by Federal Agencies
Both the Bass-Matheson and the Shaheen-Portman bills would require federal agencies to develop and implement standards for the energy-efficient operation of computer systems.

Section 105: Best Practices for Advanced Metering
Both the Bass-Matheson and the Shaheen-Portman bills would require federal agencies to develop best practice programs for the installation of advanced energy metering and automated building control systems that were mandated by federal law almost a decade ago. It has been a business mantra for decades that you can't manage what you can't measure. Private building owners know that some of the most cost-effective energy efficiency improvements, which often have paybacks of 1-2 years, are in control systems.

Section 106: Federal Energy Management and Data Collection Standard
Both the Bass-Matheson and the Shaheen-Portman bills would require federal agencies to use a web-based system to benchmark and track the energy performance of their buildings. These systems have been used in private industry for fifteen years or more, and are now being implemented in a number of states across the country.

Section 201: Loan Program for Energy Efficiency Upgrades to Existing Buildings
Both the Bass-Matheson and the Shaheen-Portman bills would establish a loan guarantee fund for existing buildings of all types. The risk profile for these loan guarantees are not in the same realm as the widely-publicized loans to Solyndra and other solar energy manufacturers: they are not bets on breakthrough technologies. Instead, these new loan programs would provide credit enhancements or portfolio loss guarantees to help home and building owners finance basic energy efficiency improvements in today's credit-constrained environment. Unlike Solyndra, private lenders would take the risk for 90% of more of the value of the loans.

Section 202: Coordination of Research and Development of Energy-Efficient Technologies for Industry
Both the Bass-Matheson and the Shaheen-Portman bills would require US DOE to coordinate the activities of its various offices and programs that are researching and promoting the implementation of industrial energy-efficient technologies. This seems to be a non-controversial provision.

Section 203: Combined Heat and Power and Waste Heat Recovery
The Bass-Matheson bill would mandate US DOE to develop a plan to double the use of combined heat and power (CHP) and waste heat recovery in the US by 2020 and document progress toward the goal. These technologies provide significant energy savings and no-cost emissions reductions (because these reductions are a byproduct of increased efficiency) which can boost the competitiveness of American businesses.

Jobs, Increased Income, Emissions Reductions, Increased Competitiveness, etc.
In addition to reducing the waste of energy and taxpayer dollars in federal facilities, the Bass-Matheson and Shaheen-Portman bills will help to revitalize the US economy in several ways:

  • An assessment conducted by the American Council for an Energy-Efficient Economy (ACEEE) estimates that the Shaheen-Portman bill would provide more than $20 billion in net energy savings to American households and businesses from 2012 -- 2030, and support a net increase of 159,000 jobs in 2030;
  • ACEEE's analysis also indicated that the legislation would cut the amount of carbon dioxide emitted in the U.S. by 108 million metric tons in 2030, which would be the equivalent of taking more than 23 million cars off the road. These emissions reductions are a no-cost side benefit of cutting energy waste; and
  • The energy efficiency initiatives contained in the bill would help facilitate the manufacture and deployment of energy efficiency technologies at home rather than abroad, and pay for themselves through energy savings relatively quickly.

NAESCO Communication Initiatives Highlight Industry Achievements

NAESCO Communication Initiatives Promote ESCO Industry Accomplishments
NAESCO communication initiatives focus on increasing the public awareness of the ESCO industry and promoting the acceleration of the use of energy efficiency through performance contracting as an essential element of national energy policy. In addition to working with traditional media outlets, NAESCO is now using social media as another channel to build awareness of the industry and its key role in generating and delivering energy efficiency resources.

NAESCO Opinion Pieces have been picked up recently by the Miami Herald, Reuters, the AP, Fix Business & Yahoo Finance in addition to numerous trade publications and blogs. Please click here to access our news section on the NAESCO website. On May 29, NAESCO Chairman Jim Dixon appeared on behalf of NAESCO and the industry on E&E TV which is the video production division of Environment & Energy Publishing (E&E) which is a leading source for comprehensive, daily coverage of environmental and energy policy and markets. E&ETV features the program OnPoint, a daily interview format that focuses on delivering thought-leading discussions with policy makers, authors and other key people involved with energy and environmental policy. You can access the Jim Dixon interview video here.

NAESCO is also expanding its presence on social media outlets like Facebook, twitter and LinkedIn. If you have not done so already, please follow us at NAESCO_DC. We update both accounts often and believe that these tools are helpful in increasing the visibility of the industry and serve as a source of up to date information about energy efficiency and the ESCO marketplace.

NAESCO is also focusing on raising the industry profile before end users and is currently co-producing an article with Kevin A. Goldstein, Vice President, HVS Sustainability Services on the potential for increased performance contracting within the hospitality industry. The article is being written for the hotel owner & manager audience and is intended to provide a brief overview of the ESCO industry and highlights how ESCO delivered energy efficiency projects can directly benefit the hospitality sector.

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NAESCO Updates

New Members

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

Crestron - Associate Energy Service Affiliate Member - Crestron products are integrated by Design™ to deliver complete building technology solutions. Crestron solutions enable organizations to globally monitor, manage, and control AV, energy, voice & data, lighting, security, room scheduling, and HVAC on a single platform from a centralized dashboard.

Mitsubishi Electric Cooling & Heating - Energy Service Affiliate Member - A division of Mitsubishi Electric & Electronics USA, Inc., Mitsubishi Electric Cooling & Heating is headquartered in Suwanee, Ga. For more than 30 years, Mitsubishi Electric has been a leading marketer of innovative air-conditioning and heating technologies. The company's products include both residential and commercial comfort systems. The company states that according to multiple independent studies, their residential split-ductless systems are ranked as the number one brand of ductless. Mitsubishi Electric offers an industry-leading number of ENERGY STAR® and Federal Tax Credit systems. CITY MULTI® Variable Refrigerant Flow (VRF) zoning systems represent innovative technologies developed as perfect commercial and industrial building solutions. VRF provides zoning advantages for all building sizes to ensure total personalized comfort and efficient operation in each zone.

Tremco - Energy Service Affiliate Member - Since 1928, Tremco Incorporated has been a leading innovator and provider of roofing and weatherproofing solutions. Tremco states that it offers the most comprehensive roofing and weatherproofing solutions for new construction, roofing maintenance, replacement solutions, restoration and repair services, and roofing materials in the industry. Tremco delivers long-term performance to building owners and facility managers for roofing and building assets by caring and managing the life cycle of the entire building envelope through Tremco and its subsidiary, Weatherproofing Technologies, Inc.

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Upcoming NAESCO Events


2012 NAESCO's 29th Annual Conference
November 7-9, 2012
Roosevelt Hotel, New Orleans, LA
NAESCO's 29th Annual Conference will be held November 7-9, 2012 at the Roosevelt Hotel in New Orleans.

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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.

Federal Advocacy Activities
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, which President Obama announced in December, 2011. The federal agencies have announced their commitments to meeting the $2 billion and NAESCO is working under a FEMP subcontract to help FEMP identify and address the barriers to project development and implementation. NAESCO is also working with the FPCC to address the issue of the proposed US DOE rule on the enforcement of EISA 2007 Section 433 (fossil fuel reduction in federal facilities) to ensure that this rule does not interfere with the accomplishment of the $2 billion goal. NAESCO has submitted comments to US DOE expressing our concern on this issue.
  • The design and implementation of the initial pilot Deep Retrofit programs proposed by the Army and the GSA. NAESCO is working under a subcontract to assist FEMP in the implementation of the initial deep retrofits in GSA buildings by producing a series of reports that provide feedback and suggestions from ESCOs about the program.
  • 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). In late June, the White House finally announced the issuance of the guidance which allows qualified state, tribal and local governments to borrow money to fund energy conservation projects. Such public entities can use the bonds to reach the goals in the Better Buildings Challenge, which aims to make U.S. commercial buildings 20 percent more energy efficient by 2020. The new bond guidance aims to clear up confusion over criteria on what constitutes a 20 percent energy reduction in publicly owned buildings. About $2 billion in bond authority remains available to public entities to help them meet their goals.

We, of course, continue to monitor the progress of the budget battles, tax credit legislation and energy policy legislation and are prepared to advocate for the industry when it appears to be worthwhile. NAESCO is active in several national coalitions, and has signed onto numerous letters to Congress on various subjects. We are currently struggling to get S1000, the Shaheen-Portman bill, scheduled for floor debate and a vote. S1000 is a bipartisan energy efficiency bill that was approved by the Senate Energy and Natural Resources Committee on an 18-3 vote. Unfortunately, the Senate leadership continues to wrangle about bringing the bill to the floor, debating how many floor amendments will be permitted, and how many of these need to be germane to the substance of the bill.

It now appears that there may be a flurry of activity in a Lame Duck session after the November elections, because the automatic budget cuts approved in the national debt extension agreement last year will kick in on January 1. Governor Romney and some Republican Senators and Congressman are already proposing that the Department of Defense be exempted from cuts, which would mean that the civilian agencies have to absorb the whole burden. If that happens, the cuts at US DOE might grow from the expected level of 7-8% to closer to 15%. We have seen a sample of what these cuts might look like for programs that affect ESCOs in the House FY 2013 budget; for example, the FEMP program would be cut by 40%, the State Energy Program by 50%, and the Weatherization program by about 67%.

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 continue to hold back the industry's ability to expand its overall size and market impact. These issues are coming to a head in several states, with the most recent developments highlighted in italics below. NAESCO is addressing the issues through its work with active state committees of ESCO members that identify the key business and policy issues that need to be directly addressed and our joint efforts with our membership 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 is in the works, and NAESCO has written a letter, co-signed by several ESCOs, asking for a meeting with the DGS official that is apparently re-drafting the rules. We have received no response to our request, and ESCO lobbyists are following up to see if we can arrange a meeting.

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 conform to the process we expected based on previous comments by CPUC Commissioners and staff. Instead of the continuation of most of the programs in the portfolio and a focus on resolution of a few major issues in order to set the 2015 programs on a firm foundation, 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. Like many other parties to the proceedings, NAESCO submitted comments asking the CPUC to issue a significantly more circumscribed Alternate Decision that is appropriate to what is, in effect, a Transition Period, and we are waiting for a decision in the case.

In early May the CPUC issued its Decision on the Bridge Period programs, which substantially confirmed its Proposed Decision, but allows the utilities to propose alternate programs that they think will work better than the CPUC-mandated programs. NAESCO worked with the utilities to coordinate the development of an alternate program proposal for the Custom Projects program, which we think is the most important program for non-residential ESCOs.

ESCOs and Utilities Can Accelerate ESPC Programs -- New York
The New York Power Authority (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 to NAESCO its RFQ for ESCOs interested in participating in its new programs. The notice is posted in the "Members Only" section of the NAESCO website.

NAESCO and a number of our member 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-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.

Georgia recently announced the results of its RFQ for the pre-qualification of ESCOs. Fifteen ESCOs -- thirteen of which are NAESCO members -- have been 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. NAESCO provided information on the programs in Kansas and Pennsylvania, which we think are potential models for Georgia, as well as an analysis of why the programs in Texas, Illinois and North Carolina (which the Governor's office asked about) may not be good models for Georgia to emulate. Texas and North Carolina, though they now have large programs, experienced the kind of slow startup that Georgia hopes to avoid, because both states were subject to very strict state-controlled pilot project funding in their early years.

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).

Earlier in the spring, NAESCO worked 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. As a result of the outreach by NAESCO and its ESCO members, the sponsor of HB5503 removed the House version of the bill from the legislative calendar, and the bill appears to be dead for this year. In a move that may be confusing to ESCOS that monitor state legislation, we heard that SB3802 was being revived, but it turns out, according to ESCOs lobbyists, that the new version of SB3802 will be used as a shell for legislation unrelated to the ESCO business.

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. NAESCO has corresponded with the Chair of the Michigan House Energy Committee about pending legislation and has been introduced to the Governor's energy advisor. We intend to try to get the Governor to make the expansion of ESPC one of the elements of his upcoming energy policy speech, which is now planned for September.
  • 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. NAESCO is working as part of a coalition of state and national organizations to capitalize on Governor Kasich's support of energy efficiency. We have recently teamed up with the Ohio chapter of the Advanced Energy Economy (the successor to the national Clean Economy Network) and the national Energy Future Coalition, to make a combined approach to the Kasich Administration.

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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Industry News

Study Finds US Energy Use To Slow, Get Cleaner
Energy use in the U.S. is expected to grow less than one percent per year through 2035 and the U.S. will become less dependent on foreign energy sources according to the Energy Information Administration Annual Energy Outlook. The report projects energy production and consumption through 2035 and finds that efficiency programs inspired by environmental concerns and recent energy price spikes have led to lower energy consumption.

The study predicts that overall U.S. energy consumption will grow at 0.3 percent per year on average between now and 2035. This is because economic and population growth are both expected to be slower than in the past, while state and federal efficiency programs are encouraging conservation.

Additionally, renewable energy will be used to generate 15 percent of the nation's electricity by 2035, up from 10 percent now. The nation's emissions of carbon dioxide will remain below their 2005 levels through 2035, a result of low energy demand and the increased use of natural gas.

To access the report, click here.

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UN Study Foresees Net Gain Of Millions Of Jobs Through Greener Policies Worldwide
Some 15 million to 60 million jobs could be created worldwide over the next two decades if nations took better care of the planet, according to a U.N. study. The study acknowledges that some jobs would inevitably be lost by switching to a "greener" economy as older technologies give way to the new.

But the heads of the U.N.'s International Labor Organization and the U.N. Environment Program emphasized that net gains of 0.5 percent to 2 percent in total global employment are possible, mainly through more renewable and efficient energy usage. Most of the net employment gains are expected in agriculture, forestry, fishing, energy, manufacturing, recycling, building and transportation, and some 1.5 billion people are seen as being affected by the transition.

In the European Union, the study says, already nearly 15 million people work in jobs that either directly or indirectly help to protect biological diversity and rehabilitate natural resources and forests.

To access the full study, click here.

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GSA Study Shows Green Building Initiative's Rating System Aligns Better Than LEED With Federal Building Sustainability Requirements
A study released recently by the U.S. General Services Administration shows that Green Globes®, exclusively offered in the United States by the Green Building Initiative (GBI), aligns with more of the federal sustainability requirements than any other green building rating system for new construction including LEED.

The GSA study evaluated and compared 180 third-party green building certification systems for new construction, taking into account criteria outlined in the Guiding Principles for Federal Leadership in High Performance and Sustainable Buildings. The GSA commissioned the study in accordance with requirements set forth in the Energy Independence and Security Act of 2007 Section 436(h) to identify tools that could help federal agencies comply with the requirements mandated in Executive Order 13514 issued in 2009.

The Guiding Principles employ integrated design, energy performance optimization, water protection and conservation, enhancement of the indoor environment, and the reduction of material impacts as best practices to achieve federal sustainability goals. View the GSA study.

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Study Finds Energy Efficiency Gains Traction In Lagging States
According to a new report, energy efficiency is gaining momentum in states traditionally ranked near the bottom of the American Council for Energy-Efficient Economy's (ACEEE) annual State Energy Efficiency Scorecard. While these states must address numerous barriers to energy efficiency, a real window of opportunity exists to move efficiency forward.

Despite their low rankings in the Scorecard, each of the states examined in the report have successfully improved their energy efficiency in at least some way. Oklahoma Governor Mary Fallin recently signed into law energy efficiency legislation that directs all state agencies and higher education institutions to achieve at least 20 percent improvement in energy efficiency by 2020. In addition to Oklahoma, Alabama and South Carolina recently passed statewide building energy codes to ensure new homes and buildings are built to save energy from the start. A number of states, notably Kansas, have solid programs in place to plan and finance energy efficiency improvements in state government facilities.

The report finds that a number of the state actions can advance energy efficiency and do not require major government spending or regulatory action. Like Oklahoma, states can "lead by example" by advancing energy efficiency projects in government facilities as well as at universities and schools using energy savings performance contracting. States can also adopt and enforce building energy codes, implement utility-sector energy efficiency programs where such programs cost less than building new power plants, and support deployment of combined heat and power projects.

To view the report entitled Opportunity Knocks: Examining Low-Ranking States in the State Energy Efficiency Scorecard, click here.

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Study Finds Americans Willing To Pay More For Clean Energy
A new study in the journal Nature Climate Change finds that the average American would be willing to pay slightly more for clean energy in support of government initiatives to promote low-carbon electricity generation. The study authors cite a national survey conducted last year by researchers from Yale and Harvard which found that Americans, on average, would be willing to pay $162 more per year for their electricity bills as part of a policy requiring 80 percent of energy come from green sources by 2035.

However, that willingness varies greatly depending on political affiliation, age, and geographic region, according to the study. For instance, support was significantly lower among Republicans, independents, and those with no party affiliation — by 25, 13, and 25 percentage points, respectively. Also, according to the analysis, researchers found that the additional cost per household for clean energy would have to fall below $59 per year to enable legislation to pass the current U.S. Senate, and drop below $48 per year to be enacted by the U.S. House of Representatives.

To access the report, click here.

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Corporations Invest In Energy Efficiency Amid Financial Concerns
Nearly three-quarters of corporations see energy costs rising over the next five years, and almost four in 10 expect increases of at least 15 percent, according to a new survey. Interviewing 100 companies with revenues of $1 billion or more, the Ernst & Young surveyors sought to understand global corporate energy spending, efficiency measures, renewable integration and self-generating energy strategies. According to the report, energy efficiency remains a leading strategy with a variety of technologies deployed including energy demand management (47 percent), building energy management systems (20 percent), energy-efficiency lighting (18 percent) and building automation (18 percent).

Some 68 percent of respondents purchase electricity generated from renewable sources. While only a handful of respondents reported renewable energy accounting for more than five percent of their companies' total energy portfolio, survey projects that one-third will increase that share over the next five years.

To access the survey, click here.

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Over The Past Decade, Lighting Became More Efficient Across All Sectors
The Department of Energy recently released a study of the 2010 lighting market, finding that lighting across all sectors has become much more energy efficient since their 2001 study.
Since DOE's previous market characterization in 2001, the commercial sector made the most improvement in efficiency. Rather than switching between lighting types, the commercial sector switched out larger-diameter T12 linear fluorescent lamps and replaced them with smaller-diameter T8 and T5 lamps. In 2010, DOE estimated that the commercial sector accounted for half of all lighting energy consumption. The residential sector was estimated at 25%; industrial, 8%; and outdoor, 17%.

The residential sector remained the least energy efficient of the sectors, primarily due to the continuing use of incandescent lamps which provided half of the sector's light output. Residential lighting is expected to become more efficient as new standards mandated by law go into effect. While the new standards do not specifically prohibit any bulb type, they do limit wattages for certain lumen ranges, and conventional incandescent bulbs exceed these minimum wattage levels.

To access the full report, click here.

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Member Projects

Ameresco Expands Presence in South Florida with Miami-Dade Public Housing and Community Development Energy Performance Contract
Ameresco announced it has been awarded an energy performance contract with Miami-Dade County through the Public Housing and Community Development Department (MDPHCD). Ameresco will perform a comprehensive facility-wide audit of energy and water usage and then provide recommendations on how to reduce the $8.6 million that MDPHCD currently spends on energy and water utilities annually in Public Housing. This project comes on the heels of a energy infrastructure project with the City of Miami Beach, and further expands Ameresco's role in South Florida. MDPHCD operates over 9,200 units of conventional public housing at several sites throughout the Miami-Dade County area. Ameresco was selected in response to a public RFP and will be completing over the next few months, an energy and water consumption audit with recommendations for conservation improvements. Upon approval by the County and the U.S. Department of Housing and Urban Development, Ameresco will manage the design and implementation of the retrofit installations.

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South San Francisco Unified School District and Chevron Energy Solutions Activate the Largest K-12 Solar and Energy Efficiency Program in San Mateo County
The South San Francisco Unified School District and Chevron Energy Solutions activated the largest K-12 solar and energy efficiency program in San Mateo County. The project has provided nearly 100 local green jobs and is expected to reduce the district's utility costs by $20 million over the next 25 years. The project is anchored by solar panel arrays at 15 elementary, middle, and high school sites throughout the district. In total, the systems are expected to produce 1.68 megawatts of electricity, directly offsetting much of the district's energy needs at each site. The project was funded through Measure J, a local bond measure approved by voters in November 2010 that raised $162 million specifically to improve school infrastructure and enhance the student learning environment. Through the use of solar energy, the district expects to cut its annual total electrical usage in half and reduce its carbon emissions by more than 1,500 metric tons, equivalent to the carbon sequestered by 330 acres of pine trees. Chevron Energy Solutions designed and engineered the project while also installing, operating, maintaining, and guaranteeing the solar systems' performance for 20 years. The company has also implemented energy efficiency improvements in the district's lighting, irrigation, heating, ventilation and air conditioning systems, which are expected to provide better lighting quality and aesthetics, lower maintenance costs and improved indoor climate. Chevron will also provide professional development for teachers, curriculum materials and hands-on experiments aligned with state standards to help create a living laboratory that promotes environmental awareness and energy consciousness.

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City of Gonzales and Chevron Energy Solutions Announce Public-Private Partnership To Generate $4.7 Million in Energy Savings
The city of Gonzales, California announced the creation of a new public-private partnership aimed at significantly reducing the city's energy and maintenance costs through public infrastructure improvements designed to reduce the city's utility and maintenance costs. Improvements include upgrading all city-owned streetlights, constructing two solar installations to produce 462 kW of power, and upgrading the city's water pumping station to help conserve water and electricity and enable the city to pump water at optimal times, when energy costs are lower. The work is expected to reduce greenhouse gas emissions and create a more sustainable public utility model that can be replicated by other communities. The city of Gonzales worked with Chevron Energy Solutions to develop, design and construct the project. The solar project was financed by a municipal lease arranged by Rabobank, N.A. and booked through its affiliate De Lage Landen Financial Services.

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San Lorenzo Unified School District and Chevron Energy Solutions Announce Completion of Solar Energy Project
The San Lorenzo Unified School District, California in conjunction with Chevron Energy Solutions announced the completion of its first solar energy system, which will significantly reduce the district's future energy costs. Over the lifespan of the project, the district anticipates generating $4.5 million in savings to the district's general fund, where it can then be used to strengthen the district's academic performance and enhance student achievement. The project is being financed through Measure O, a general obligation bond passed by voters in November 2008 in order to continue the renovation and modernization of the schools in the San Lorenzo Unified School District. Solar canopies have been constructed at various campuses throughout the district, as well as at the district's bus depot where they will not only generate solar energy but will also provide shade to the district's fleet. In total, the solar canopies are expected to generate 1,021 kW of clean energy, reducing the district's utility costs.

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Energy Systems Group Partners With State of Michigan to Save Over $30 Million Through Facilities Improvements
Building improvements and efficiency measures to reduce operating costs are nearly complete at the Parnall Correctional Facility as a result of the energy savings performance contract awarded to Energy Systems Group last year. ESG has announced that the comprehensive energy infrastructure improvements, lighting retrofits, heating and cooling system upgrades, and water conservation measures implemented at the Parnall Correctional Facility will result in total life cycle savings of over $30 million. As a result of this innovative partnership, Parnall's utility costs will be reduced by about 40 percent and water consumption costs will be reduced by more than $2 million, over the 10-year term of the ESPC contract. ESG guarantees the savings will meet annual payments to cover the $12.89 million project costs. This project has also created jobs employing more than 48,760 man hours for skilled construction workers.

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Energy Systems Group Partnering With DeKalb Renewable Fuels Facility in Georgia Saves County $3 Million and Improves Air Quality
Once it is fully operational, the DeKalb County Renewable Natural Gas facility will have the environmental equivalent of taking 30,000 cars off the road every year. It will reduce carbon dioxide emissions by 17,000 tons each year, or what goes into the atmosphere from 17 million gallons of gasoline. DeKalb County Chief Executive Officer Burrell Ellis, in conjunction with Energy Systems Group and the Clean Cities Atlanta Petroleum Reduction Program, officially opened the new renewable energy facility at the Seminole Road Landfill to begin the test phase of operations. The renewable energy facility is also a first in the nation; while there are landfills that make RNG for pipeline injection, this is the first landfill in the U.S. that will simultaneously provide Landfill Gas to produce Compressed Natural Gas for vehicles and Renewable Natural Gas for high-BTU gas for pipeline injection. Furthermore, the county will have the capacity to process more landfill gas than any other county in Georgia.

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Energy Systems Group Initiates Updates To Dairyland Farm Anaerobic Digestion Facility
Energy Systems Group partnered with Dairyland Farm Anaerobic Digestion Facility to make the facility more energy efficient. Dairyland Farms, located in New Franken, Wisconsin, is a third generation family farm with approximately 3,500 milking heads. Now fully operational, the Dairyland Farms anaerobic digester has the capacity to generate 1.2 MW of power, enough to power approximately 1,200 homes each year. Anaerobic digester systems reduce greenhouse gas emissions (methane), limit odor from manure storage and application, allow for methane capture and use, and effectively separate manure into usable, valuable byproducts.

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ESCO Israel to Reduce Energy Consumption in the Wingate Sports Village by 40%
Israel's National Center of Physical Education and Sport, the Wingate Institute, signed an ESCO agreement to reduce energy consumption with ESCO Israel in which the company would reduce energy consumption in the Olympic pools, the gyms, the classrooms and the administrative offices. As part of the agreement, ESCO Israel will replace the old air conditioners with more advanced Inventor models, as well as the lighting system and the water heating systems, in addition to installing smart controls that will reduce unnecessary energy consumption by 40%. ESCO Israel will also streamline energy usage of the new Olympic pool at Wingate Institute. According to the company, this is the first model of its kind in Israel where the ESCO project is being implemented on a facility whose construction has not yet been completed.

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Pepco Energy Services Partners with Delaware Technical Community College to Reduce Energy Consumption for Four Campuses
Pepco Energy Services, Inc. has partnered with the Delaware Technical Community College to implement a comprehensive energy savings contract project that will positively impact 19 buildings. Pepco Energy Services is installing more than $7 million in energy conservation measures on the college's Wilmington, Stanton, Terry and Owens campuses, retrofitting over 1 million square feet of building space. Such measures include the conversion of constant volume air-handling units to variable air volume units to provide superior space conditioning and improved occupant comfort for the Owens campus; the installation of an irrigation system for the Stanton campus sports fields allowing students to practice and compete on quality playing surfaces and the installation of new chillers to replace the multiple, problematic direct expansion units for the Terry campus. The majority of the project is financed by an energy efficiency tax-exempt bond issued by the Delaware Sustainable Energy Utility (SEU). Over the 15-year contract term, the college will save more than $9 million in energy costs. Additionally, the project will reduce annual energy consumption by approximately 21 percent for the Wilmington and Stanton campuses, 16 percent for the Terry campus, and 8 percent for the Owens campus while decreasing annual carbon dioxide emissions by more than 2,700 metric tons across all four campuses.

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Pepco Energy Services Selected by DC Water To Build And Operate a $170 million CHP Plant
Pepco Energy Services, Inc. and DC Water have signed an agreement valued at approximately $170 million 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. The 153 acre plant is the largest advanced wastewater treatment facility in the world serving approximately 725 square miles of DC, Maryland and Virginia drawing upon its capacity of 370 million gallons per day. Pepco Energy Services will design and build the CHP project for $81 million, and Pepco Energy Services states that the project 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 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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Siemens Upgrades Energy Efficiency at Colorado State Veterans Center
In 2006, the Colorado Department of Human Services, which owns and operates the Colorado State Veterans Center at Homelake, partnered with Siemens Industry, Inc., to make significant improvements to the 48 domiciliary cottages and bring the historical homes into the 21st century in terms of energy efficiency and comfort. As part of a larger guaranteed performance-based solution, Siemens has helped Homelake achieve the LEED for Homes™ Platinum certification for all 48 residences. Through the partnership with Siemens and its dedicated multi-family housing group, Homelake established the following objectives for the domiciliary project: create healthy, comfortable living environments for veterans who live at Homelake; renovate 24 historical domiciliary duplex cottages (48 residences) with current building technologies; improve the energy and resource efficiency of all cottages to reduce costs and environmental impact; and achieve LEED Gold targets for municipal buildings in the state of Colorado.

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Siemens Partners with Marshall County Schools to Upgrade Facilities
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. Fifty miles south of Nashville, Marshall County, encompassing four towns (Lewisburg, Chapel Hill, Cornersville and Petersburg), is known for producing more state governors than any other county in Tennessee. 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 energy savings including: electricity consumption reduction of 845,308 kWh annually; water conservation of 2,139,655 gallons per year; 2,812 therms of natural gas per year; 418 therms of natural gas per boiler per school per year; CO2 emissions cut by 249,751 pounds per year. To achieve these results, more efficient control and monitor HVAC and other energy-intensive building systems were installed in most of the schools. Local contractors installed lighting improvements to all 11 school buildings exchanging existing fixtures with lower-wattage rated fixtures and occupancy sensors. Water-conserving plumbing fixture upgrades reduced maintenance and water use. Additionally, the existing domestic hot water boilers at two schools were replaced with new high-efficiency boilers. Other improvements included installing new, water conserving dishwashers in three schools, and new thermal-pane windows at one school.

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Toshiba Collaborates with Stratford, Ontario to Replace Street Lights with LED Fixtures in Support of Smart Community Initiative
Toshiba International Corporation announced its collaboration with the city of Stratford, Ontario, to initiate a pilot project to evaluate replacing existing streetlights (potentially as many as 4,000 units) with energy-efficient Toshiba LED fixtures and assist with the city's smart community initiatives. This public-private collaboration helped earn Stratford the title of "Top Seven Intelligent Communities for 2012" by the Intelligent Community Forum a New York-based think tank dedicated to studying the use of information and communications technology to create the community of the 21st Century. Toshiba's LED roadway and area lighting fixtures are a direct replacement for conventional high intensity discharge lighting, such as high-pressure sodium or metal halide, which requires frequent maintenance and high-energy consumption. In contrast, Toshiba's LED fixtures 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 of installing the innovative fixtures, Stratford stands to save up to 30% in energy consumption for street lighting, as compared to their currently installed conventional HID luminaires.

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Wendel Energy Services Partners with Upstate Medical University to Implement Turn-Key Energy Projects
Wendel Energy Services is assisting the Upstate Medical University in Syracuse, New York to perform facility improvements which reduce energy costs as well as support both the University's Capital Improvement Program and Climate Action Plan. The university is one of 127 academic medical centers in the United States and has a campus in downtown Syracuse with approximately 2 million square feet. Many of the university's buildings are over 40 years old. The $11.7M multi-phased project will save approximately $12.8M in energy, operations and maintenance costs over the next 15 years. In support of the Climate Action Plan, the project will reduce the university's overall carbon footprint by over 3.9 million pounds annually or the equivalent of planting 87,000 trees. Key elements of the energy efficiency project include the following energy conservation measures currently being implemented, or, designed by, Wendel: LED parking garage lighting with day-lighting controls; replacement of 3-pipe cooling/heating water distribution system and associated equipment which includes free cooling off condenser water loop; run around coil heat recovery system; replacement of liquid ring medical air and vacuum systems with air-cooled package screw compressors; chiller replacements and chiller upgrades with variable frequency drives; HVAC controls upgrades demand controlled ventilation; motors and VFDs on pumps and fans; steam trap replacements Boiler Burner Combustion Controls; automatic Pool Covers; and electric and steam sub-metering.

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Member News

Crestron Provides Energy Management of Every Light Source In The Building With Newly Introduced Dali Ballasts
Crestron recently announced that its new DALI Ballasts, the latest addition to its fully-integrated lighting control solutions, are now available. Crestron Green Light® DALI Ballasts (GLB-DALI) provide architects, designers, engineers and building owners with incredible flexibility in building and lighting design, both in new construction and in retrofits. Crestron ballasts are also ideal as an OEM product for lighting fixture manufacturers who wish to offer built-in high-performance DALI ballasts with their fixtures. Creston cites its unique optional built-in power metering feature which power metering models track real-time energy usage of each load and provide essential statistics to help manage and control utility costs. Integrated with Fusion EM™ Energy Management Software, the building owner can track energy usage and immediately implement controls to eliminate waste. From virtually anywhere, managers can monitor and manage energy consumption across the facility or the enterprise from a single view on a computer or mobile device. Crestron DALI ballasts drive multiple lamp wattages in one unit, which makes lighting design easier and less expensive. With support for one, two, and three lamps, the ballasts support dimming a wide range of linear fluorescent lamps from 1-100%. Twelve different models are available to power a variety of T8, T5, and T5HO lamp types from 14 watts to 58 watts. Operable between 120 and 277 Volts (universal voltage), Crestron DALI ballasts can be used in any part of the world. Design, configuration and lowering energy costs are even easier when using Crestron DALI controllers. While up to 64 ballasts can be daisy chained on a single DALI channel, facility managers can control up to 128 DALI ballasts using one Crestron DIN-DALI-2 Two Channel DALI Interface.

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Fulham Expands Offering of Standard Induction Conversion Kits
Three varieties of Fulham High Horse brand standard induction conversion kits are now available for various fixture types in order to save approximately 50%+ energy, increase lamp life up to 5x compared with HID, and reduce maintenance costs. High-bay kits include the generator, lamp, hardware and installation instructions. All are thermally tested and warranted for use with 16" and 22"/25" acrylic refractors. Gas Station Canopy Kits have been successfully engineered and tested as standard lighting alternatives for use with common mounting types: enclosure, top of fixture and surface 2′x2′ box. These kits make it easy to retrofit existing fixtures with minimal installation time. Finally, billboard conversion kits allow common billboard fixtures to be converted to induction easily and quickly for savings of between 50-70%.

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Honeywell Forms Smart Grid Solutions Business to Address Growing Energy Demand
Honeywell announced the formation of Smart Grid Solutions, a global enterprise that centralizes the company's existing smart grid resources and expertise to respond to the growing needs of both energy providers and users. Part of Honeywell's Building Solutions business unit, Smart Grid Solutions will bring innovative offerings to market faster, and deliver end-to-end programs that connect utilities and their customers to solve a variety of energy challenges, such as relieving stress and congestion on aging electrical infrastructure, leveraging intermittent renewable resources, and better managing the increased demand for energy, which is expected to grow 40 percent by 2035. The creation of Smart Grid Solutions is a strategic reflection of the anticipated rise in worldwide energy consumption and the corresponding need for demand-side-management services. China, for example, is expected to spend RMB$1.5 trillion on its energy infrastructure during the 12th Five-Year Guideline period ending in 2015, with the long-term goal of having a dynamic smart grid throughout the country by 2020.

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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. 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 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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Philips to Launch New AirFlux LED Portfolio
Philips' new LED retrofit lamps portfolio will feature a unique technology referred to as "AirFlux". Unlike its past portfolio, known for its die cast steel frame which helped to dissipate heat from the LED lamp, AirFlux utilizes a sleek new design to help channel the air flowing through the lamp, which in turn takes advantage of natural thermal dynamics to passively cool the lamp without a large, distracting heat sink. While removing the heat sink has the primary benefit of superior heat dissipation, Philips was also able to reduce the weight of the lamp by nearly 30% without compromising on performance, while continuing to enjoy the advantage LED has over conventional lighting technology. Not only is the internal makeup of the product different, but also the overall design of the lamp. Through vigorous market research, Philips has changed the exterior design of the new portfolio to all white, featuring a more seamless integration with fixtures as one of the drivers for the change. The LED lamp types that will utilize this technology include their PAR and BR portfolios, all designed to meet or exceed Energy Star criteria.

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