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NAESCO Newsletter

October 2012

NAESCO Updates

Featured Articles

Industry News

Member Projects

Member News


NAESCO Updates

Upcoming NAESCO Events

MARK YOUR CALENDARS NOW AND REGISTER EARLY!

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 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 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 target and NAESCO is working under a FEMP subcontract to help FEMP identify and address the barriers to project development and implementation.
  • 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 program has advanced through  initial RFQ process, in which eight ESCOs were selected to develop PAs for about 30 buildings, which are due in late September and early October.
  • 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 that 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. According to the White House press release, about $2 billion in bond authority remains available to public entities to help them meet their goals.
  • The SEC has announced that it is postponing the issuance of the final rule on the registration of Municipal Financial Advisors until September 2013. NAESCO has been lobbying the SEC and the Congress to have ESCOs excluded from registration since the temporary rule was promulgated in 2010. We recently participated in an intense effort to educate House members on the issues in an attempt to get the exclusion included in HR 2827, bi-partisan legislation with 38 co-sponsors that is attempting to correct by legislation some of the problems with the SEC temporary rule. The bill was enacted by the House but is not expected to clear the Senate this Congressional session. As it is currently drafted, even if the bill were to pass the Senate, the ESCO industry would still be looking to the SEC for specific language exempting the industry from the reach of the rule.

Federal Energy Policy Legislation
While there has been no movement on federal energy policy and tax legislation over the summer, and none appears to be in the cards for the balance of this year, NAESCO is active in several national coalitions that are working with members of Congress to tee up key legislative initiatives for inclusion in a 2013 bill, including:

  • HR4107 (Bass-Matheson) would mandate that the federal government lead by example in making its energy use more efficient, emphasizing the use of ESPC to meet federal energy savings goals. HR4107 also includes a loan fund for existing commercial buildings and a mandate that US DOE develop a plan for doubling the use of CHP by 2020.
  • S 1000 (Shaheen-Portman), which was approved in a bi-partisan 18-3 vote early in the session, also emphasizes federal government EE programs, without the explicit promotion of ESPC and the loan program for existing buildings. A stripped-down version of S 1000 was passed unanimously on the last day of the Senate session as an amendment to HR 4850. The amendment dropped language that would have boosted energy efficiency requirements in national building codes for new homes and commercial buildings as well a provisions to expand Energy Department loan guarantees to efficiency retrofits and a loan program that would have employed states to encourage efficiency upgrades in the manufacturing sector.
  • S3591 (Snowe), the Commercial Buildings Modernization Act was introduced in mid-September and would update the Section 179(d) tax credits to address the current state of the real estate market, and emphasize retrofits rather than new construction. The bill would institute a higher sliding scale credit, from $1/SF for a 20% reduction to $4.00 per SF for a 50% reduction, and liberalize the ability of the building owner to allocate credits to project participants such as architects, ESCOs, and financiers.
  • Markey-Welch (amendment to HR3409), which was introduced in mid-September and would amend the "no more Solyndras" bill to mandate a combined national RPS and EERS.
  • Kerry-Schumer-Franken, the Energy Savings Act (ESA), which would mandate a national EERS and will be introduced in early 2013.
  • HOMES Act (McKinley-Welch), which is essentially a re-working of the HomeSTAR bill that would boost residential energy efficiency and which almost passed last year.

Federal Energy Budget
The federal government avoided a repeat of last year's budget-debt limit showdown by passing a Continuing Resolution (CR) that funds federal agencies through the first half of FY13 (March 31, 2013). The CR, however, is not resulting in a business-as-usual continuation of federal spending at the same rate as FY12, because of the significant differences between the House and Senate version of the FY13 budget (a CR mandates maximum spending at the lower of the two) and the pending automatic budget sequestrations that are scheduled to take effect on January 1, 2013. In response to this uncertainty, the Office of Management and Budget (OMB) has recently issued guidance that instructs federal agencies to only spend 28% of their FY12 budgets (rather than the 50% that one might expect) during the first half of FY13. We expect that this guidance will impose significant cuts on programs that are of interest to ESCOs, such as the State Energy Program (SEP), which has a 50% cut in the House budget.

State Issues

Developments in several states during the last few months indicate that state energy laws and policies continue to have more direct effect on the ESCO industry than national policies.

Michigan - New ESPC Legislation
HB 5727, which was introduced last year, is moving rapidly through the legislature in the final days of the 2012 session. The bill is similar to legislation in a number of other states that seeks to encourage state and local government agencies to use ESPC by defining the measures that can be included in a project, extending the maximum term of the project to 15 years, appointing a state "champion" agency (Department of Technology, Management and Budget), and authorizing DTMB to create a pre-qualified list of ESCOs and a set of standardized ESPC program processes and documents. NAESCO organized a group of ESCOs to review the pending legislation, testified before the House Energy and Technology Committee, and worked with ESCOs and the Governor's office to finalize the bill language. In addition, NAESCO has submitted to the Governor's Office a Briefing Book on the potential for ESPC in Michigan public facilities (more than $1 billion of potential projects). We anticipate that an ESPC option will be included in Governor Snyder's new energy policy that will be announced this fall.

New York - New NYPA Program
As part of Governor Cuomo's program to boost energy efficiency in New York, the New York Power Authority has initiated a new program to finance $450 million of energy efficiency projects in the next four years. This announcement is the vindication of about a decade of work by NAESCO and member ESCOs to convince NYPA to run programs that work with ESCOs, rather than compete with ESCOs.

Ohio - Ready for ESPC Initiative
In 2012, the Ohio legislature enacted SB 315, which was a key piece of Governor Kasich's state energy policy. SB 315 re-affirms the state's commitment to aggressive energy efficiency goals, and includes CHP as an allowable technology. NAESCO plans to build on this success to persuade the Governor to re-organize the state's ESPC programs, which have significant potential in both state and local government facilities. We have convened a working group of interested ESCOs and are working with the Ohio chapter of the Advanced Energy Economy (AEE) and the Energy Future Coalition to formulate the most effective approach to the Governor in the fall.

Pennsylvania - Still No New GESA Program
In early 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. In response to the objections of NAESCO, its member ESCOs, and a number of other parties, DGS withdrew this proposal and presented a concept for another way to operate the program to a group of ESCOs in late August. In the opinion of NAESCO and the ESCOs present at the meeting, this second proposal is even less workable than the first. NAESCO is in the process of formulating a response to the DGS proposal.

Utility Incentives Should be Phased Out - California PUC
In early July, the four California IOUs filed their program plans for the 2013-2014 Transition Period. In mid-July, several non-utility parties, which are Regional Energy Networks (RENs) or Community Choice Aggregators (CCAs) filed their program plans, which were specifically solicited by the CPUC. NAESCO reviewed all of these program plans and filed comments, which urged the CPUC not to allow the IOUs to cut their program budgets, and urged the Commission to hold the REN and CCA proposals to the same rigorous standards for cost-effectiveness as the IOUs. The REN proposals as filed did not contain the kind of cost effectiveness analyses required of utilities. In response to the comments of NASESCO and other parties, the CPUC ordered the utilities and the other parties to file extensive supplements to their proposals in late August, and allowed parties to file two additional rounds of comments.

One element of the IOU program proposals that is mandated by the CPUC is a new set of financing programs that must total a minimum of $200 million of utility funding, money that would be diverted from other programs. NAESCO has supported the utilities' protests that this mandate is too much, too fast, and argues that the utilities should instead operate pilot financing programs during the Transition Period and plan to scale up the successful pilots during the full program cycle that begins in 2014. The CPUC rejected these protests and ordered the utilities to hire a finance program consultant to help the utilities assemble a program proposal in six weeks. NAESCO has reviewed the preliminary program proposals, participated in webinars, and talked directly with the consultant in an attempt to understand the outlines of the proposal. In NAESCO's opinion, what has been developed to date is a good start, but is nowhere near ready to manage and effectively distribute a $200 million budget to third parties that can deliver energy savings.

Additionally, the CPUC is pushing ahead with separate elements of the proceeding that are examining the standards of program cost effectiveness, the approach to program EM&V, the proper structure for utility program administration incentives (for both the 2010-2012 and Transition Period programs) and other critical program elements. NAESCO is participating in all of these proceeding elements, and will file comments as appropriate.

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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.

ABM Energy - ESCO Member - With over 100 years of facility solutions experience, ABM continues to serve thousands of clients across the U.S. and in over 20 international locations. ABM offers electrical service, electrical testing, energy EV charging stations, home energy solutions, HVAC & Mechanical integrated facility solutions, janitorial landscape & grounds maintenance and repair, parking and transportation security, threat reduction services , and clinical engineering. ABM is one of the largest facility management services providers in the U.S. We offer state-of-the-art, dependable building maintenance services cost effectively. Our substantial base of long-term clients demonstrates the importance that we place on building enduring relationships.

Thermolite - Associate Affiliate Member - Thermolite designs, builds and installs energy and security window systems in existing buildings. Our window system is placed on the inside creating an insulated glass unit with the original glass and window frame. We work with the federal, commercial and military markets and have typical savings of 25% total energy consumption 40% peak load reduction and have ROIs less than 5 years on energy window system retrofits and less than 10 years on blast window retrofits.

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NAESCO and HVS Consulting Examine the Energy Efficiency Market Potential of Hospitality Industry

For the past few months, NAESCO has been working with HVS consulting, a hotel consulting and valuation firm, to publish a white paper examining the potential market for ESCOs within the hospitality industry. A number of factors are coming increasingly into play that can encourage hotel owners to consider investment into energy efficiency at their properties. These motivating factors include increasing commodity costs, investor sentiment (especially for publicly-traded companies such as REITs), and the potential to secure large corporate customers by demonstrating a tangible commitment to sustainable operation. The improving U.S. economy should also be helpful in encouraging hotel owners to reconsider "back of the house" projects that may have been deferred in recent years due to tight operating conditions.

Additionally, most of the major hotel brands and management companies are placing an increased emphasis on sustainable operations as a component of their core brand values - which should elevate the importance of energy efficiency significantly over the next decade. Hotel owners and operators who have taken a detailed, substantive look at their properties' energy efficiency have a distinct operating advantage, as well as the potential for higher property valuations via the capitalized savings of energy efficiency projects. All of these factors together indicate a potentially viable market for ESCOs within the hospitality community - and HVS and NAESCO are delighted to collaborate on an introductory article that begins to explore this potential.

The article should be published shortly. If you are a NAESCO member and have a hotel case study you would like included in the final version of the article, please email Meghan Cieslak, Meghan@naesco.org.

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Featured Articles

Where the Candidates Stand on Energy Policies

As we head closer to the elections, let's take a closer look on where each of the candidates stand in terms of their energy policies. Both candidates have advocated for a reduction in foreign oil imports and for an expansion of U.S. energy production in order to boost the economy and create new jobs. They also agree that increasing energy independence is critical to national security. Neither candidate, however, has emphasized efficiency as the least expensive and most reliable energy resource we have.

Below is a summary chart highlighting some of the key energy positions of Governor Romney and President Obama. Obama says he favors an "all of the above" strategy and wants to further reduce U.S. reliance on foreign oil. Romney says he would aim for "North American energy independence," leaning heavily on increased fossil fuel imports from Canada, policies to support higher levels of U.S. fossil fuel output, and reducing environmental regulations on the development and use of fossil fuels.

Energy Efficiency

Obama Romney
The ARRA(stimulus) legislation funded billions in energy conservation measures for buildings.
 
The Environmental Protection Agency and Department of Transportation have developed new fuel standards for automobiles, including a 54.5 miles-per-gallon standard for the nation's auto fleet by 2025.
 
In March, Obama announced $1 billion in tax credits and grants for alternative-energy cars and trucks. High-speed rail corridors are underway in a $10 billion plan to boost transportation infrastructure and efficiency.
Romney opposed ARRA. Romney's energy plan does not mention energy conservation or efficiency, nor climate change or global warming.
 
Romney opposes new fuel efficiency standards.
 
Romney has not addressed in detail his position regarding alternative energy vehicles and high-speed rail corridors.

 
Renewable Energy

Obama Romney
Obama supports tax credits that were originated in the Bush administration and that help wind and solar industries and says that wind and solar generation have doubled during his administration.
 
The ARRA legislation contained substantial loan guarantees for wind and solar technologies, and the administration continues to support such guarantees as a necessary element of new energy technology development.
 
Obama wants to maintain incentives for renewable energy; wind and solar-powered generation has doubled in size during his administration.
Romney has said he will not renew the solar and wind tax credits when they expire.
 
Romney does not support federal loan guarantees (except for nuclear power) as he believes the government should not be picking winners and losers.
 
Under Romney's plan, wind energy would get the same fast-track permitting that other energy sources do. But Romney would let the production tax credit (PTC), which was created during the previous Bush administration and extended under Obama, expire at the end of this year.
 
Romney supports the existing Renewable Fuel Standard that subsidizes development of advanced biofuels.

 
Coal Power

Obama Romney
For the first two years of his administration, President Obama pushed for "cap and trade" legislation to limit greenhouse-gas emissions.
 
The administration, under a series of court orders, moved to enforce provisions of the bipartisan 1992 Clean Air Act that were, after a grace period, intended to clean up old and inefficient coal plants.
 
Under Obama, the EPA issued the nation's first standards limiting mercury emissions and other toxins from coal-fired power plants. It has also taken steps to begin regulating carbon dioxide emissions.
 Obama's website cites its "10-year goal to develop and deploy cost-effective clean coal technology, and to put online several commercial demonstration projects within four years." ARRA funded 22 carbon capture and sequestration research projects
Romney opposes "cap and trade" legislation and is publicly undecided about whether global warming is a genuine threat.
 
Under Romney, coal production would get a boost from revision of the historically Bipartisan Clean Air Act. Originally enacted under President Nixon, the proposed change would strip the Environmental Protection Agency of the power to regulate carbon dioxide, a greenhouse gas that the Supreme Court has ruled part of the agency's Clean Air Act mandate.

 
Oil and Gas Development

Obama Romney
Obama says that his policies have resulted in the highest US oil production in 8 years and the lowest US dependence on foreign oil in the last 16 years.
 
Obama recently announced he will open more than 75 percent of potential offshore oil and gas reserves to development.
 
With regard to the Keystone XL oil pipeline planned from Canada to Texas, the Obama administration halted the plan on Jan. 18, 2012. The White House blamed a congressional deadline that it said made it impossible to adequately assess environmental and other concerns, such as the fact that the proposed route of the pipeline through Nebraska was opposed by the state's Republican Governor. In March, Obama approved the southern half of the pipeline. The northern half of the pipeline is being redesigned with a new route through Nebraska.
Romney proposes taking away responsibility from the Interior Department to lease and issue permits for drilling on federal lands and waters.
 
Romney would give that power to states, which he says will issue permits more efficiently and quickly. The Romney plan believes that doing so would vastly boost US oil and gas exploration both onshore and off. Romney's plan would permit drilling wherever, they believe, it can be done safely. This includes the Gulf of Mexico, Atlantic and Pacific Outer Continental Shelves, Western lands, the Arctic National Wildlife Refuge in Alaska, and the Alaska coast. Offshore leasing would open new zones off the coasts of Virginia and the Carolinas to start – and then expand.
 
For the Keystone XL pipeline, Romney has said he will approve it "on Day 1" of his presidency.

 
Hydraulic Fracturing, or 'Fracking'

Obama Romney
Obama's position is that federal fracking regulations are compatible with increasing oil and gas production while preserving the environment. U.S. production of natural gas is at an all-time high. Romney's position is that federal fracking regulations are onerous and should be eased or eliminated.

 
Nuclear Power

Obama Romney
Obama authorized the Department of Energy to issue about $54 billion of federal loan guarantees for nuclear-power development, and is negotiating about $10 billion of contracts with nuclear plant developers in Georgia and South Carolina. In February, the Nuclear Regulatory Commission approved two new reactors at the Vogtle Electric Generating Plant in Georgia, the first such construction approvals in three decades. Romney says he would streamline federal oversight from the Nuclear Regulatory Commission to ensure that licensing decisions for reactors that are on or adjacent to approved sites, and that use approved designs, are completed within two years. He would also expand NRC capabilities for approving additional new nuclear reactor designs. Romney supports federal loan guarantees for nuclear power.

 
To read Romney's official energy plan, click here. To read President Obama's energy plan, click here.

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Industry News

Obama Order Targets Industrial Efficiency, Emissions
President Barack Obama issued an executive order on August 30th that would increase the number of cogeneration plants in the U.S. by 50 percent by 2020, a move that would boost U.S. industrial energy efficiency and slash carbon emissions by 150 million tons per year. The measure aims to accelerate investments to help manufacturers expand their use of combined heat and power (CHP) facilities, which generate thermal and generating power in a single process.

The White House said increased investments in the industrial sector, which accounts for over 30 percent of energy consumed in the U.S., would improve its competitiveness, lower energy costs and reduce heat trapping emissions. The U.S. currently has an installed capacity of 82 gigawatts of CHP, with 87 percent of those in manufacturing plants, according to the Environmental Protection Agency.

Installing the administration's goal of an additional 40 gigawatts would save one Quadrillion Btus of energy and reduce over 150 million metric tons of carbon dioxide emissions annually, the agency said. The addition of the new capacity would save energy users $10 billion a year compared to their existing energy sources and would also result in $40-80 billion in new capital investment in manufacturing.

The order directs the Departments of Energy, Commerce, and Agriculture, and the Environmental Protection Agency, in coordination with a number of White House advisory groups, to coordinate their policies to encourage investment in industrial efficiency. The order also directs the federal agencies to help states to use CHP to achieve their national ambient air quality standards, and provide incentives through their regulations to help boost the technology.

Click here to access a copy of the order.

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Survey Finds Executive Focusing on Energy Efficiency
The Carbon Disclosure Project (CDP)'s annual survey showed big U.S.-listed companies making progress in disclosure and in their carbon emission reduction goals, even as lawmakers hesitate to regulate. Its 2012 survey showed a growing number of top-tier executives and company boards of the 500 top publicly traded U.S. companies were directly overseeing their firms' climate change strategies.

Of the S&P 500, 338 firms participated in this year's survey by the CDP, which provides a system for companies and cities to measure and disclose environmental information. Companies that ranked highly for their climate disclosures in the CDP's index were Microsoft Corp, United Parcel Service, Hess Corp, Pepco Holdings and Sempra Energy Utilities.

Eighty-one percent of reporting companies identified physical risk from climate change, with 37 percent considering the risks "a real and present danger" - up from 10 percent in 2010. Of the survey's respondents, 92 percent reported that their company's board or high-level executive had oversight over climate strategies, up six percentage points from 2011. Eighty-three percent of those respondents said that climate change had been factored into corporate risk management strategies compared to 75 percent (254) the previous year.

You can access the report here.

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Energy Efficiency Looks Beyond The Natural Gas Boom
The recent boom in shale gas production and the subsequent decrease in the price of natural gas have left some wondering what the role for energy efficiency will be in the future. As a new ACEEE white paper explains, energy efficiency measures are still cost-effective in any foreseeable natural gas price environment. The report stresses that states should deploy cost-effective and readily available energy efficiency measures now to help provide long-term stability to the electric and natural gas markets and ensure that natural gas resources are used as efficiently as possible.

Historically, the natural gas market has experienced booms and busts where prices ranged from $2 to $16 per million British thermal units (MMBtu). Last winter, the United States entered a boom period driven by unseasonably warm weather and an explosion of domestic shale gas production and prices at historic lows—under $2 per MMBtu. Looking forward, consulting firm ICF forecasts that prices will not remain at the current low levels. ICF estimates a steady increase in the price of natural gas to more than $4 per MMBtu by the end of 2012. Over the long term ICF forecasts that prices will increase as demand accelerates, bringing the price closer to $7 per MMBtu ($2010). The current wellhead price of gas is currently around $3 per MMBtu, up from $1.89 in April of this year.

The low prices have called into question the cost-effectiveness of energy efficiency programs, particularly those targeted at saving natural gas directly. However, despite the low natural gas prices, energy efficiency is still the lowest cost new energy resource compared to new electricity generation resources of any fuel type, the report finds. In addition, natural gas prices only affect retail electricity prices minimally because generation costs are just a small portion of the total electricity price. The average retail electricity prices are expected to remain relatively stable through 2030 while the natural gas prices are expected to rise. This means that electricity efficiency measures will not be greatly affected by natural gas prices, and the vast majority of measures remain cost-effective. Since both wellhead and retail prices are unlikely to stay low, utilities should look toward the long-term benefits of efficiency and continue supporting programs that reduce customer energy consumption, the report finds.

The report finds energy efficiency can significantly cut into the demand for natural gas in the power sector and lessen the need for construction of new natural gas power plants. New natural gas power plants require a large upfront investment and take time to come online; costs are transferred to ratepayers. Since energy efficiency is still the most cost-effective resource compared to new combined-cycle natural gas plants, energy efficiency should be deployed by states as the first measure to prevent costly construction of new natural gas plants thereby saving ratepayers money. And while natural gas is a less dirty fossil fuel with nearly half the emissions compared to coal, natural gas still emits pollutants. Energy efficiency is a zero emission energy resource. You can access the report here.

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New Survey Finds Northwest Efficiency On The Rise
With the help of electric cooperatives and other utilities, the Pacific Northwest set a record for annual energy-efficiency improvements in 2011, according to a new survey. The region developed 277 megawatts of additional energy efficiency, enough to power nearly 190,000 homes and offset about half the generation of a new power plant. Utilities, energy trusts and other agencies invested about $420 million in efficiency in 2011, according to the council, which is required by Congress to put together a power plan for the region. That's about 8 percent of total national spending on energy efficiency for a region that holds about 5 percent of the population, the council added.

While residential lighting upgrades have been a major source of savings in recent years, 2011 saw more advances in commercial buildings and industrial facilities. The council estimated that efficiency upgrades saved ratepayers about $3.1 billion last year because less electricity had to be generated.

The council warned that efficiency savings could slow in 2012 and beyond because of federal budget cuts and the elimination of some state tax incentives. To access the report, click here.

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IG Report Finds DOE Energy Conservation Efforts Falling Short
The Department of Energy missed out on saving more than $6 million by failing to implement certain energy-efficiency measures, according to a recent report. The DOE Inspector General audit of five Energy-managed sites found more could be done to inspect building heating and lighting operations and update meters to monitor electricity use. It said DOE "had not always pursued readily available, low-cost energy saving opportunities" and that taking "more aggressive energy conservation" steps could have saved $6.6 million.

The DOE IG said the conservation shortcomings were a symptom of a lack of resources to perform evaluations, billing practices that did not reward energy efficiency and failure to prioritize "low- and no-cost, quick payback measures," according to the report.

The report surveyed energy conservation techniques at Los Alamos, Oakridge, Sandia and Brookhaven national laboratories, as well as the Y-12 National Security Complex. It is part of a series of audits on DOE's energy conservation efforts that are intended to identify progress in meeting the goal of reducing the department's energy consumption by 30 percent by fiscal 2015. Previous inspector general reports revealed similar results and noted DOE's efforts were falling short. Those reports indicated more could be done to reduce building temperatures, upgrade lighting and instill more energy-efficiency measures in information technology.

You can access the audit here.

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Study Finds Informed Consumers Use Less Energy
The average "uninformed" consumer will reduce the amount of energy they use at home by less than 7% when the price of electricity rises. By contrast, the average "informed" consumer will reduce his or her energy usage at home by more than twice that amount, according to a new study by economists at the University of California, Davis.

The report is the result of empirical research on how residential electricity customers responded when they were given access to real-time information on electricity usage and prices. The authors found that most people make rational economic choices if they have the wherewithal to do so.

Unlike traditional energy efficiency programs, information-based behavioral strategies rely more on the social, psychological and political dynamics that drive people's decision-making process to reduce energy usage than technology or standards. Energy management programs allow consumers to change energy consumption patterns by providing consumers with more detailed and timely information regarding energy usage patterns. Several utilities are conducting pilot programs that use Home Area Networks (HAN), the household-facing layer of technology, to provide customers with real-time information on electricity usage and prices.

The report, entitled "Use," can be downloaded here.

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Member Projects

Ameresco Partners With Michigan's Ovid-Elsie Area Schools On Major Energy Efficiency Project
Ameresco, Inc. announced the start of major work in its Energy Savings Performance Contract with Ovid-Elsie area schools in central Michigan. The $1.1 million fifteen year ESPC is expected to save the schools more than $85,000 annually, and includes facility improvement upgrades to four schools and the administration building. The upgrades in this project will include a comprehensive lighting program, an energy management system, mechanical and HVAC replacements, building improvements, water conservation upgrades and a new ceiling grid.

Financing was provided through the use of Qualified Zone Academy Bonds, which provides the schools with a near-zero percent interest rate.

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Ameresco Completes $ 1.2 Million Energy Efficiency Project For Large Northern Ohio School District
Ameresco, Inc. announced the completion of construction of an Energy Savings Performance Contract with Ohio's Cloverleaf School District. The $1.2 million project, which included energy efficient infrastructure upgrades at four facilities, is expected to help the district save over $102,000 in energy and operational costs annually for the duration of the 15 year contract. The ESPC focused on reducing the overall electrical and natural gas usage of the district through the installation of energy efficient technologies including occupancy sensing light switches; lighting upgrades; building automation system upgrades and expansion; domestic hot water boiler replacements; heating hot water boiler replacements; and high efficiency boilers at all HVAC demand levels. Ameresco will operate and monitor the measures over the life of the contract.

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Kings County Teams with Chevron Energy Solutions To Cut Utility Costs, Save $12 Million
Kings County, California and Chevron Energy Solutions announced completion of a transformative solar and energy efficiency program expected to reduce energy costs at 23 sites within the county. The program added solar photovoltaic panels mounted on parking shade structures at the county Government Center and Hanford Library, replaced Data Center and Health Administration air conditioning units, upgraded irrigation systems at three locations, and retrofitted lighting fixtures with energy-efficient lamps and ballasts at 21 sites. The program is expected to cut Kings County's electrical utility purchases by 12 percent at its Government Center and 67 percent at Hanford Library; and reduce carbon emissions by more than 670 metric tons, equal to removing about 131 cars from the road. This work marks the third phase of a sustainability program that Kings County embarked on with Chevron Energy Solutions in 2004. In phase one, Chevron Energy Solutions installed 10 microturbines, of 60 kilowatts each, to generate power onsite from natural gas at the County Government Center, along with a 175-ton chiller running on the waste heat from the microturbines. Phase one also included installing energy-efficient roofs on four buildings at the Government Center and an energy-efficient chiller at Hanford Library. Phase two, in 2008, included an 1,100-ton central cooling and heating plant, thermal energy storage system, new energy management system and energy-efficient lighting for the Government Center. The three phases combined are expected to save the county $12 million over the life of the program at multiple county facilities. Chevron Energy Solutions designed, engineered and installed the solar system, and will perform operation and maintenance services. The company also implemented energy efficiency improvements to county heating, ventilation and air conditioning and lighting systems.

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City Of Concord Joins Chevron Energy Solutions To Achieve Greater Sustainability And Generate $18 Million In Expected Taxpayer Savings
The city of Concord, California and Chevron Energy Solutions joined with dignitaries and residents from throughout the region to celebrate completion of a solar and energy efficiency program expected to save taxpayers $18 million. The celebration included a ceremonial flipping of the switch at the centerpiece of the program: a 200 kW photovoltaic solar installation adjacent to the city's community pool, where solar panels are expected to generate enough electricity to offset 70 percent of the pool's energy demand and earn the city more than $450,000 in state and utility incentives. In all, the city of Concord's program includes 14 projects that reduce energy and maintenance costs. Projects include upgrades to street and park lighting, retrofitting the boiler and pump at the community pool, and replacing outdated air conditioners at city facilities. This program is part of the city's larger focus on creating a more sustainable community, both environmentally and fiscally.

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Energy Solutions Professionals Partners With Benedictine College To Evaluate Energy Efficiency Options
Benedictine College recently announced the kickoff of a three month in-depth evaluation that will identify potential energy-saving solutions that can be implemented across its Kansas campus. The evaluations will cover all 24 buildings that comprise over 660,000 square feet of space. Benedictine is teaming with Energy Solutions Professionals, LLC to conduct the energy audit based on a preliminary analysis they conducted earlier this year in conjunction with specific needs identified by the college.

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LED Roadway Lighting Ltd. To Convert Public Lighting In The Dominican Republic To LED
LED Roadway Lighting Ltd. announced a contract for the supply of 8,000 energy efficient LED street lighting luminaires in the Dominican Republic. Corporación Dominicana de Empresas Eléctricas Estatales (CDEEE), the Dominican Republic's state power holding company, began converting its public lighting to energy-saving light-emitting diode (LED) technology in July of this year. Installation is currently underway on major avenues and streets in Santo Domingo and other major urban centers. The CDEEE's purchase of energy-saving LED luminaires is one of a series of recent investments designed to increase energy efficiency and reduce the burden on the national energy system. CDEEE selected LRL as the supplier after an international competitive bidding process and an extensive technology evaluation involving several international manufacturers. The LED luminaires are expected to provide energy savings of more than 50% when compared to the existing high-pressure sodium luminaires and a useful life of 20 years.

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Lime Energy Completes Large Scale Municipal Efficiency Projects In Pennsylvania
Lime Energy Co. announced the completion of the Allegheny County Energy Program for Municipalities. Lime Energy conducted general grade audits of 104 (81%) of the 129 municipal facilities in Allegheny County, Pennsylvania. Following a review of the audit findings and an analysis of projected municipal contributions and estimated rebates available from their respective energy service providers , 75 of the 129 municipalities passed resolutions to participate by electing to have their facilities' retrofitted with energy conservation measures. The retrofit effort encompassed the installation of multiple energy conservation measures including lighting retrofits, automatic control installations, domestic water upgrades, hot water tank retrofits and building envelope enhancements. As a result of the improvements where Lime Energy installed over 16,000 individual energy conservation measures, the county will save about 2.3 million kilowatt hours of electricity and 30,000 gallons of water annually, reducing its utility bills by over $300,000 per year. The project was funded in part by a $2 million Energy Efficiency and Conservation Block Grant (EECBG), managed by the U.S. Department of Energy, and a $400,000 grant from the R.K. Mellon Foundation. The county allocated these funds to make energy efficiency upgrades in municipality-owned buildings. In addition to the grants, the local energy service providers, Duquesne Light and West Penn Power, offered rebate incentives for the lighting phase to further offset retrofit project costs and reduce the local share from a given municipality.

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Bedford County And Schools Choose NORESCO For $7.9 Million Energy Infrastructure Project In Virginia
NORESCO has secured a $7.9 million fifteen year term guaranteed energy savings agreement with Bedford County and Bedford County Public Schools in Virginia. The aggregated project includes improvements to lighting, energy management and HVAC systems, water conservation, installation of new windows, and weatherization of the envelope. Construction began at the end of April 2012, and completion is forecasted for October 2013.

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Performance-Based Contracting from NORESCO Part of a Comprehensive Conservation Program In Reading, MA
Working with NORESCO, the town of Reading , Massachusetts identified opportunities for system upgrades, new equipment installation and numerous energy-efficiency initiatives at all of its municipal buildings, the police and fire station, senior center, library and schools. The $5.5 million in improvements have already yielded significant reductions in energy and water consumption across 15 municipal buildings, including eight schools. NORESCO's plan for the town included upgrading existing building systems, such as boilers and chillers, installing new systems for solar hot water, upgrading to energy-efficient lighting, adding state-of-the-art occupancy sensors in all buildings, implementing low-flow or low-flush devices and improving weatherization. The project also added a comprehensive web-based control system that allows the town to centrally manage building systems. In just a year, the energy-efficiency improvements alone have saved Reading more than $340,000 in verified annual energy consumption costs and reduced emissions by roughly 1,300 tons of carbon dioxide, 3.5 tons of sulfur oxides and 2.0 tons of nitrogen oxides. While the majority of the project is funded from reductions in energy and water consumption, grants and incentives from the local municipal electric utility and National Grid and funds from the American Recovery & Reinvestment Act through the Department of Energy Resources enabled the deployment of an even greater array of measures than what would have been otherwise possible.

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NORESCO To Implement Energy Savings Performance Contract For U.S. Department Of Veterans Affairs In Los Angeles
NORESCO is partnering with the U.S. Department of Veterans Affairs to implement $15 million in self-funding facility upgrades in the greater Los Angeles area. As the VA's first energy savings performance contract under the Department of Energy's newest ESPC Indefinite Delivery Indefinite Quantity contract, the project will improve energy infrastructure at three Greater Los Angeles Healthcare System centers that are part of the VA's Desert Pacific Healthcare network. GLA's service area includes 1.4 million veterans, many of whom receive services through the centers that will be improved under this ESPC. During its first year, the project is expected to produce nearly $1 million in energy savings for the VA. NORESCO guarantees energy reductions of more than $24 million over the life of the performance contract. After the energy conservation measures are implemented, energy consumption for the specific systems and equipment upgraded or replaced is expected to decline by 25 percent compared to baseline consumption. The project is also expected to reduce carbon dioxide emissions by more than 4,000 metric tons. All three centers will benefit from improved light quality, better reliability and reduced maintenance costs after lighting equipment is upgraded to high-efficiency lamps and ballasts. About two-thirds of the project's energy savings will come from improving heating, ventilation and air conditioning efficiency. The project will convert variable air volume boxes from pneumatic controls to direct digital controls integrated to an energy management and control system. Along with new, more efficient rooftop HVAC equipment for selected buildings, the new systems will also provide VA facilities enhanced control of the indoor environment. Other controls improvements, including better scheduling of decentralized HVAC equipment, will deliver additional savings.

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Pepco Energy Services Partners With Mineral Wells Independent School District In TX To Reduce Energy Use by 8.5%
Pepco Energy Services, Inc. and the Mineral Wells Independent School District have developed a $1.2 million energy savings project that will increase the efficiency of heating, ventilation and air conditioning equipment at both the Houston and Travis Elementary schools. Through the Texas State Energy Conservation Office's Cool Schools Grant Program, Mineral Wells ISD received the funds to replace dated HVAC equipment with new and more efficient equipment. Under the agreement terms, Pepco Energy Services will upgrade Travis Elementary School and Houston Elementary School's HVAC infrastructure by replacing the inefficient 21-year-old rooftop units with new, high-efficiency rooftop units - nearly doubling the efficiency over the existing units. As a result of the project, Mineral Wells ISD will lower its electrical costs by approximately $10,300 per year and its electrical energy consumption by 8.5 percent, creating a more comfortable and energy-efficient environment for students, staff, and faculty. The project will also result in energy savings of more than 74,000 kWh per year and a reduction of 44.5 metric tons of carbon dioxide emissions per year. Construction for this contract will begin the first week of August 2012 and is due to be substantially complete prior to the start of classes on August 27th. Pepco Energy Services has completed similar projects at Prince George's County Public Schools, Prince William County Public Schools, and Norfolk Country Public Schools.

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Siemens Awarded $9.3M Energy Savings Contract With Bay City, Texas
Bay City, Texas has awarded Siemens a $9.3 million energy savings performance contract expected to reduce electricity consumption by nearly 30 percent and water use by more than 70 percent over 15 years. The energy savings performance contract, which will be financed and guaranteed by Siemens' buildings technologies division, will focus on Bay City's wastewater and potable water supply systems, water meters, municipal lighting and supporting information technology. Once the project is completed, the energy savings guaranteed by the performance contract will yield about $700,000 in equivalent energy expensive reductions every year for the duration of the contract. Energy efficiency upgrades and infrastructure retrofits will cover 26 city facilities, including an aging wastewater treatment plant. Siemens will replace blower motors and aeration equipment, in a move expected to reduce the treatment plant's energy use. A new supervisory control and data acquisition system will allow city workers to remotely monitor and control lift station pumps. Other upgrades include the installation of a non-potable water source that will allow the city to save more than 16 million gallons of drinking water annually by reusing water from the wastewater treatment plant for the facility's operational needs.

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Wendel Energy Services Helps The City of Geneva Schools Become More Efficient
Wendel Energy Services is assisting the city of Geneva, New York Schools in their efforts to become more energy efficient through an Energy Performance Contract. The district wide project will provide facility improvements at the city's two elementary schools, middle school, and high school. Facility improvements will include energy efficient lighting and lighting controls, building management system upgrades, installation of an automated pool cover, burner management controls and building envelope improvements. The project will save the District nearly $2.4 million over the project term and reduce carbon emissions by 1.2 million pounds annually.

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Wendel Energy Services Assists Genesee County, New York To Upgrade Efficiency
Wendel Energy Services is entering construction on a performance contract for Genesee County New York. The county-wide project will provide facility improvements across 10 facilities addressing energy conservation measures including energy efficient lighting & lighting controls, high efficiency boiler upgrades and variable speed drives. Acting as the county's grant administrator, Wendel was able to assist the County in obtaining more than $420,000 in ARRA Funding. Genesee County will save over $320,000 in energy and operational savings over the term of the project and reduce their carbon footprint by more than 264,000 pounds.

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Member News

Ameresco Exemplifies Commitment To Landfill Gas Utilization
The Solid Waste Association of North America (SWANA), has announced that Ameresco, Inc. was awarded the SWANA Silver Excellence Award in Landfill Gas Utilization. The Excellence Award was awarded to Ameresco for the success of its Santa Clara, California All Purpose Landfill Gas to Energy Facility. With a partnership beginning in 2006, Ameresco designed, built, and now owns and operates the new LFGTE plant that provides clean electricity to Silicon Valley Power customers through an innovative clean gas turbine technology.

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Johnson County Green Business Awards: ConEdison Solutions Honored with Emerald Level Recognition
ConEdison Solutions was honored with the Johnson County Green Business Award at the Board of County Commissioners Green Business Awards meeting in Johnson County, Kansas on July 19, 2012. The awards recognize county businesses who are leading the way to reduce waste and conserve natural resources. ConEdison Solutions won the highest level of honors for diverting 68 percent of their annual waste through recycling which resulted in waste disposal cost savings of $1,500 per year.

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Member Attorney Speaks at Workshop On False Claims Act
Ranked as a leading construction attorney by Chambers USA, Tamara M. McNulty, partner in the Washington, DC office of Fox Rothschild LLP, spoke at the American Bar Association Forum on the Construction Industry on" What Every Construction Counsel Needs to Know About the Dangers of the False Claims Act." McNulty has extensive knowledge of green building practices and is LEED AP certified.

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Fulham Launches Contractor-Friendly "Room Solution" for Lighting Control
Fulham has announced the launch of its Fulham® HorseSense™ Lighting Control System as a "Room Solution" that reduces energy usage by up to 70% while delivering highly customized and individually dimmable scene selection. HorseSense provides easy, quick installation of intelligent sensors, switches, interconnect hardware and ballasts without the need for commissioning. The plug-and-play systems use ballasts that are factory-addressed, and the system does not require fixture or lamp changes. This lighting control system can be used across multiple lighting technologies, including fluorescent and LED. It is ideally suited for interior building workspaces, spaces with varied work hours where occupancy sensor utilization could be beneficial, schools, and much more. The Room Solution is also scalable to include larger areas, with the addition of a controller and software which introduces daylighting capabilities.

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Energy Project Finance Expert Joins Growing Green Campus Partners Team
Edison, New Jersey based energy project developer and financial solutions provider Green Campus Partners, LLC announced that Dan Svejnar, formerly Managing Director at Luminous Power Group, has joined the company as Senior Vice President, Project Development. Most recently based in Prague, Czech Republic, Svejnar founded Luminous Power Group, a solar project investment group focused on assets in late stage development or operations in the Central and Eastern European markets. Prior to forming Luminous Power Group, Dan worked for HSH Nordbank and Fortis Capital in New York where he specialized in renewable energy project finance and executed a variety of structured transactions including direct equity investments in development teams, development/mezzanine debt, senior construction and term loans as well as tax equity investments including single investor leases and partnership flip structures.

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OSRAM SYLVANIA Introduces A New Offering Of 2'x 2' Recessed LED Luminaires
OSRAM SYLVANIA has introduced a new offering of 2'x 2' recessed LED luminaires designed to deliver high quality, efficient light for a variety of commercial interior applications. They offer a choice of energy-saving options for traditional fluorescent 2x2s while delivering comparable or superior light quality. The OSRAM RLC22 architectural recessed 2x2 LED luminaires feature high performance of over 85 lumens per watt and a unique styling in the form of a round aperture, offering a pleasing aesthetic alternative to the "checkerboard" ceiling pattern created by standard recessed square fluorescent troffers. The luminaries' diffuser is slightly recessed, producing a comfortable, non-glaring light, while delivering the right amount of illumination on work surfaces and walls. The innovative light engine is based on the OSRAM SYLVANIA Distributed Array LED platform, delivering excellent color consistency with a life rating @ 50,000 hours (L85). The long luminaire life and highly efficient LEDs provides the potential for energy savings and reduced maintenance costs when compared with comparable fluorescent systems. A 0-10V dimmable power supply comes standard with the RLC22 luminaire allowing for a continuous dimming range from 100-10%. The OSRAM LED 2'x2' Retrofit Kit simply and quickly turns existing fluorescent recessed lensed and parabolic troffers into energy efficient, long life LED luminaires. Perfect to replace up to 3 lamp 2'x2' long twin tube fluorescent fixtures, the kit provides a premium aesthetic with up to 40 percent energy savings. The LED 2x2 Retrofit Kit is designed to provide wide light distribution for an improved visual environment. The kit is UL1598 classified and installs quickly and easily from below the ceiling plenum. The LED 2x2 retrofit kit has a 50,000 (L70) life rating and includes a 0-10V dimmable power supply allowing for a continuous dimming range from 100- 10%. Utilizing state of the art LED technology and power supplies, the OSRAM 2x2 LED luminaires offer a variety of options designed to replace fluorescent systems while providing comparable or improved light quality. Continuous dimming capability facilitates compliance with applicable energy codes and offers the potential for even greater energy savings. The environmentally-preferable fixtures are also mercury and lead-free.

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

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