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August 2013

NAESCO Updates

Featured Article

Industry News

Member Projects

Member News

People in the News

NAESCO Updates

Upcoming Events

Registration Now Open for the NAESCO 30th Annual Conference & Vendor Showcase, November 12-14, 2013, Orlando Hilton, Orlando, FL

NAESCO is pleased to announce that registration is now open for NAESCO's 30Th Annual Conference & Vendor Showcase, Charting the Future Course of Energy Efficiency.

Terry E. Singer, Executive Director of NAESCO said "We are pleased to host the 30th Annual Conference & Vendor Showcase in Orlando this year and celebrate three decades of industry accomplishments. The NAESCO Annual Conference will be the perfect blend of content and networking opportunities for our attendees and exhibitors. We have a comprehensive and diverse group of speakers and presenters, who will provide insight on the challenges and opportunities to be seized as we contemplate the future course of energy efficiency. As always, our exhibitors will share with conference attendees the latest advances in technology and innovation from the leading companies in the energy efficiency market."

Annual Conference attendees are leading providers in the energy efficiency marketplace, existing and potential customers, policy makers, and energy efficiency thought leaders in the academic and NGO communities. Exhibitors represent companies that are active manufacturers/distributors/ suppliers/sub-contractors of a broad range of goods and services to energy service companies and their end-user clients in both the public and private sectors.

Vendor Showcase exhibitors now receive two full registrations with their exhibit space rental.

Click here to learn more about the 30th Annual NAESCO Conference & Vendor Showcase

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NAESCO Hosts Vibrant Midwest Regional Meeting in Chicago
A diverse group of leaders from the energy efficiency industry gathered in Chicago on June 6th for NAESCO's Midwest Regional Meeting, hearing presentations related to the theme: Disagreements Over the Direction of Future Energy Policies Heat Up: Can Competing Economic Interest be Resolved? The one-day regional meeting was co-hosted by the US EPA Regional 5 at the Ralph Metcalfe Federal Building in downtown Chicago. While the event was billed as a Midwest Regional, some of the nearly 100 attendees came from as Colorado, Florida, Texas, and Puerto Rico. Presentations ranged in scope from the City of Chicago's green building and energy efficiency initiatives to the political fights over the Energy Efficiency Portfolio Standard to the effects of energy efficiency on the future revenue streams of large electric utilities. Donald Gilligan, President of NAESCO, said "The one-day format for the regional meeting really focuses the agenda, while networking opportunities were provided over breakfast and lunch. I'm pleased to see that NAESCO's regional meetings are increasingly drawing attendees from all over the country."

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Rexel Energy Solutions to Sponsor Main Conference Reception at NAESCO 30th Annual Conference & Vendor Showcase
Rexel Energy Solutions, formerly Munro Distributing, has become a Platinum Conference Sponsor for the NAESCO 30th Annual Conference and Vendor Showcase in Orlando. They will host the Main Conference Reception, on Wednesday, November 13the, a key social and networking event. Tom Base, NAESCO's Director of Communications and Membership said "We are very pleased to have this Platinum Conference Sponsorship from Rexel. The generosity of all of NAESCO's sponsors allows us to host a quality Annual Conference, while keeping registration rates reasonable."

Click Here to explore Sponsorship, Advertising, and Exhibiting Opportunities at the NAESCO Annual Conference & Vendor Showcase

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NAESCO Advocacy Report

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

NAESCO's advocacy work in 2013 is building on the work undertaken in 2012 and continues to be a mix of the following:

  • ensuring the continued funding and political support for key federal, state and utility-administered ESPC programs,
  • advocating for utility and state energy efficiency incentives that enhance ESCO projects in states with major ESCO markets, and
  • promoting the adoption and use of state and utility energy savings monitoring and verification (M&V) rules and protocols that are workable and that recognize the full value that customers realize from ESCO projects.

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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.

Banc of America Public Capital Corporation, Energy Services is a part of Banc of America Public Capital Corp (BAPCC), a wholly-owned subsidiary of Bank of America N.A., Energy Services supplies financing for a wide range of energy efficiency and renewable energy assets that deliver to client needs in municipal, federal, education, institutions, and healthcare markets. The team works directly with established contractors and Energy Services Companies (ESCOs) to provide financing for projects ranging in size from $2MM to $100MM or more for multi-project master facilities.

Building IQ is a leading energy management software company whose mission is to redefine the way energy is managed in commercial buildings. BuildingIQ's suite of software offerings are based on unique, patent pending Predictive Energy Optimization technology. These offerings reduce peak and ongoing energy cost and consumption, helping facility owners, managers and occupants get more value out of their existing HVAC energy systems. Supported by tier 1 leaders including Aster Capital (backed by Schneider Electric, Alstom and Solvay), the Venture Capital unit of Siemens Financial Services (SFS VC) and Paladin Capital, BuildingIQ has commercialized building control systems, modeling, and comfort research developed by the world leading experts at the Energy Division of the Commonwealth Scientific and Industrial Research Organization (CSIRO), Australia's national research organization.

Walker Reid Strategies specializes exclusively in EPAct 2005 179D Tax Deduction Certifications. Walker Reid's mission is to accelerate ROI, lower tax basis, and improve cash flow by providing EPAct 2005 179D certifications for our clients that exceed the IRS guidelines. We are a Licensed Engineering Firm with Professional Engineers, LEED Accredited Professionals and Commercial Energy Raters on staff.

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Accreditation Congratulations!

Eaton Energy Solutions has been re-accredited as an ESCO
Energy Controls is now newly accredited as an ESCO
Pepco Energy Services has been re-accredited as an ESP
Siemens Industry, Inc., Building Technologies Division has been re-accredited as an ESP

Click Here for Information about the NAESCO Accreditation Program

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Featured Article

Interview With Peter Larsen of the Lawrence Berkley National Labs on New Study, "Current Size and Remaining Market Potential of the U.S. Energy Service Company Industry"

1) The ESCO industry has grown steadily through the recession that decimated the US construction industry. Can you speculate about the factors that are driving this growth?
"The ESCO industry has experienced fairly steady growth since the 1990s, and despite the recession, continued to grow about 9 percent per year from 2009 to 2011. Many public and institutional customers, which traditionally represent the largest market share for the industry, are facing significant financial challenges including reduced operating budgets. Performance contracting has been an attractive option for these types of customers. ESPCs allow them to simultaneously reduce their energy costs, avoid pollution, and address deferred maintenance issues without requiring a lot of upfront capital."

2) The report indicates a range of projected revenues for the ESCO industry in 2020, from approximately doubling today's revenues to approximately tripling. What factors will push the growth from the low to the high end of the projection range?
"It is possible that the industry could grow 8 to12 percent annually depending on a number of scenarios−potentially achieving revenues of more than $15 billion in 2020. There are a number of factors that could impact future revenue, including clean energy and infrastructure modernization policies as well as expansion of ESCO services that take advantage of emerging opportunities. For example, adoption of new protocols for the measurement and quantification of project non-energy benefits could lead to even greater customer demand for the services that ESCOs provide. I also believe that increased transparency on past project performance will lead to additional demand from new customers who may have been skeptical in the past about the success rate of these types of contracts."

3) The mix of technologies installed by ESCOs seems to be shifting away from distributed generation and combined heat and power. Can you speculate about why we are seeing this shift?
"A few years ago, we found evidence that onsite generation and renewable energy projects were becoming more prevalent in the U.S. ESCO industry. Our most recent study uncovered a reversing trend. Onsite generation and renewable projects generated about 20% of ESCO industry revenue in 2008, but this share had declined to only about 9% of total revenue in 2011 and revenues from these technologies declined in absolute terms as well (e.g. $798M in 2008 to $380M in 2011). We suspect that there were several factors that explain this. First, there has been a proliferation of companies that specialize in renewable generation installations and these companies may be gaining market share against ESCOs. Second, ESCOs do not typically specialize in the manufacture of onsite renewables, which may place them at a disadvantage compared to solar companies that are vertically integrated. Third, incentives to install onsite renewable electricity systems have decreased over the last several years and state renewable energy credit (SREC) prices declined dramatically in many states. Lower renewable energy credit prices may make implementing solar projects less attractive to some ESCOs as well as their customers."

4) This report is the latest in a continuing series of LBNL reports on the ESCO industry, based on data reported to LBNL in the NAESCO accreditation process and periodic LBNL/NAESCO surveys of the ESCO industry. What is the next step in the evolution of the NAESCO and LBNL documentation of the technologies and economics of the ESCO industry?
"I believe that we are at a crossroads in the evolution of this industry. ESCOs, customers, and policymakers are asking for information about the past performance of successful projects. For example, industry stakeholders want to know more about typical savings, investment levels, measures installed, and the potential for creating (or saving) jobs. For these reasons, we are partnering with several offices in the Department of Energy, national laboratories, and representatives from government agencies to develop a secure, online system to collect and disseminate project information in an aggregated form. At the same time, it is extremely important to protect ESCOs' proprietary business information. We are working closely with NAESCO—and its members—to learn more about what types of data are both sensitive and difficult to report to government agencies. The name of this online system is called e-ProjectBuilder and we anticipate that it will be fully operational in late Spring 2014."

Click Here for a Full Copy of the LBNL Study

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Industry News

NAESCO Members Gather In Washington DC for 179D Deduction Advocacy Day Fly-In
Representatives from eight NAESCO member companies are participated in a "Lobbying Day" on Capitol Hill on July 16th. The central message that the NAESCO members and our Advocacy team of VanNessFeldman and Prime Policy conveyed to Congressional members and staff is that the 179D deduction is a valuable tool and should be extended beyond its current December 31, 2013 expiration date in order to continue the energy efficiency gains and energy savings that have been realized since enactment of the original provision.

ESCOs have employed the 179D deduction in hundreds of energy efficiency retrofit projects implemented since the provision was first enacted in 2005. The NAESCO team will stress that utilizing the 179D deduction for an energy efficiency project creates additional economic value for building owners and has contributed to the increased use of energy efficient building design strategies resulting in the retrofit of energy inefficient aging buildings, many with significant deferred maintenance problems. In addition, the deduction addresses a flaw in the tax code. Tax law allows businesses to deduct energy bills as ordinary operating expenses but prior to 179D, energy efficiency retrofits were depreciated over a longer period of time as capital expenses. The 179D deduction aligns the tax code by allowing for accelerated depreciation of EE investment. The team will point out during the meetings that the 179D deduction rewards achievement of significant energy savings and places a premium on implementation of more sophisticated technologies. The incentive supports the modernization of aging U.S. building stock and enhances the overall performance of our nation's building infrastructure. Another key benefit provided by the availability of the Section 179D tax deduction are the creation of more jobs in the construction, engineering, manufacturing and design sectors. Extending and enhancing the Section 179D deduction would improve the usefulness of the deduction and lead to more than 77,000 new jobs being created in the construction, engineering, manufacturing and energy services sectors alone, according to a 2011 analysis performed by the University of Massachusetts, Amherst.

While the number one priority is to assure extension of the 179D deduction, NAESCO will also encourage Congress to consider the inclusion of a number of reforms to Section 179D. These reforms include (1) increasing the scope of eligible projects, (2) increasing the dollar amount of the credit, and (3) providing greater flexibility in its qualifying parameters. NAESCO believes that these reforms, were they to be adopted, would significantly advance the national pursuit of energy efficiency and provide additional incentives to these critical energy investments.

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Johnson Controls Institute for Building Efficiency Releases 2013 Global Energy Efficiency Indicator Survey
The recently released 2013 Energy Efficiency Indicator survey indicates that organizations with publicly stated energy reduction goals:

  • Implemented 50% more efficiency and renewable energy measures than organizations without goals;
  • Planning to increase investments in energy efficiency in the next year more than 2.7 times than other organizations;
  • Adopted more energy management practices (such as frequently collecting and analyzing energy usage data);
  • Indicated they see brand value, property value and other co-benefits as drivers for efficiency and renewable energy beyond the energy costs savings; and
  • Two-thirds of organizations with public or internal energy reduction goals reported planning to pursue green certification or net zero buildings in the future.

Conducted annually by the Johnson Controls Institute for Building Efficiency since 2006, this year's 3,000 respondents come from ten countries and a variety of commercial, industrial and institutional facilities such as hospitals, schools, and government buildings.

Click Here for a full copy of the 2013 Global Energy Efficiency Indicator Survey

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New LBNL Database Evaluates Costs and Benefits of Energy Efficiency Projects to Identify Building Performance Levels
A new DOE funded Building Performance Database of building features and energy use data is under development to help building managers, owners, real-estate investors and lenders evaluate the financial results of energy-efficiency investment projects and identify high- and low-performing buildings. According to Staff Scientist Paul Mathew at Lawrence Berkeley National Laboratory (LBNL) who is leading the effort in conjunction with the DOE Office of Energy Efficiency and Renewable Energy, the investment community will be able to use the BPD to help quantitatively distinguish between the expected returns from projects, and their performance risk. Investors will have the information they need to diversify the risk in their portfolios by investing a range of buildings and energy performance project types.

LBNLis partnering with Building Energy Inc. a company which specializes in software solutions to integrate disparate building energy use and characteristics datasets. "The real-estate investment community, building managers and owners asked the Department of Energy for a tool to help them better evaluate the financial costs and benefits of energy-efficiency projects in buildings, to help them guide investment decisions. DOE responded by establishing the Buildings Performance Database, which we are developing under their direction," Mathew says.

The database contains real performance data from more than 60,000 buildings across the U.S. from public and private datasets—not modeled data. BPD currently contains basic building data, such as gross floor area, years built and hours occupied, as well as energy performance metrics, including energy-use intensity (for example, kilowatt-hours per square foot), source and site energy consumption, and electricity and fuel consumption. The data has been stripped of identifying characteristics, such as street addresses, to preserve business confidential information, to encourage as many private sources to contribute to BPD as possible.

"Development of the BPD is ongoing," Mathew adds. "More types of information, such as building assets and equipment, and metered interval data from utilities, will become available as the BPD grows." BPD also has a tool to make using the dataset easy, with more features planned for future releases. The data explorer feature allows users to compare the energy use of their own buildings to a set of BPD buildings they can choose by such parameters as building type, floor area, age, and occupancy, and by system features such as lighting and HVAC. The tool allows users to create graphs comparing the energy use of their buildings to the building peer group the user has created. The latest release of the tool includes a retrofit analysis feature, which compares the energy use of buildings with different technologies. The tool provides users with the probability of achieving different levels of energy savings for retrofits. The database features an application programming interface (API) that allows external software developers to access the data and incorporate analytical results into their own tools.

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Member Projects

Ameresco Partners With Brockton (MA) Housing Authority
announced it has begun work on a $5.7 million energy performance contract with the Brockton Housing Authority, Brockton, MA. The project will provide energy efficient upgrades to more than 1,200 units in seven developments, and is expected to save the Authority more than $400,000 annually.

With construction expected to be completed this year, the project scope includes lighting efficiency improvements, upgraded apartment temperature controls, water conservation measures, energy efficient refrigerators, and new energy efficient windows and sliding doors at the Authority's Campello high-rise development.

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Montana School District Partners with Ameresco on an ESPC
Ameresco announced that it has begun work on an ESPC with Kalispell School District #5, Kalispell, MT. Ameresco will install over $3.29 million of energy efficiency improvements at 12 school buildings. The energy efficiency improvements are expected to save the District an estimated $140,569 annually while also addressing critical infrastructure needs.

"One of Kalispell's oldest schools has been looking for a way to pay for upgrades to its heating and cooling system and increase its energy efficiency, but not impact our taxpayers," said Superintendent Darlene Shottle. "Flathead High School was of particular concern with classrooms either too warm, too cold, or water leaking in through the roof. We had to look at more innovative ways to try to do some of the building upgrades that needed to be done. Ameresco was able to make these improvements with this budget neutral approach."

Prior to beginning work on the ESPC, Ameresco performed a full investment grade audit to identify areas where energy savings measures could be implemented throughout the District's buildings and facilities to create a plan for the design and implementation of project renovations. With construction expected to be completed by the end of this year, the majority of the work is concentrated around the HVAC infrastructure. The project scope also includes interior, exterior, and lighting control upgrades, water efficiency retrofits, building envelope improvements, boiler replacement, variable air volume conversion, variable speed pumping, temperature control systems upgrades, custom bus engine heater control system implementation, domestic hot water heater replacement, and rooftop and HVAC system replacement.

In addition to the ESPC, this project is also being funded through a roughly $1 million Montana Quality Schools Grant for energy saving infrastructure upgrades at Flathead High School. The project is expected to reduce the District's annual carbon footprint with 1,212,248 kWh in electric savings, 56,079 therms in natural gas savings, and 1,526,600 gallons of water saved annually.

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Alpena County in Northern Michigan Selects Ameresco for Energy Efficiency and Infrastructure Upgrades
announced today that it has begun work on a $1.6 million Energy Savings Performance Contract (ESPC) with Alpena County in northeastern Michigan. Expected to be completed by the end of the year, it is projected that the ESPC will save the County more than $100,000 in annual energy and operational savings through numerous energy efficiency and critical infrastructure improvements throughout County-owned buildings and facilities.

"Our partnership with Ameresco will enable us to improve the energy efficiency of our buildings and repay the investment with the guaranteed savings provided through the energy savings performance contract," said Commissioner Lyle VanWormer, Chair of Finance Committee, Alpena County. "Faced with a strained annual budget, this was the perfect solution. The ESPC model allows us to bond the project, complete the necessary infrastructures upgrades and avoid future capital costs."

Prior to beginning work on the ESPC, Ameresco performed a full investment grade audit to identify areas where energy savings measures could be implemented throughout the County's buildings and facilities. The wide-ranging ESPC will involve the implementation of several energy conservation measures in multiple facilities including the Northern Lights Arena, jail, courthouse, pool, County fairgrounds, airport, annex and Michigan Department of Correction offices. The upgrades across County buildings will include new lighting, building envelope and weatherization improvements, water conservation measures, HVAC building automation expansions and mechanical improvements.

"We are proud to partner with Alpena County to support their efforts to improve their infrastructure and become more energy efficient," said Louis P. Maltezos, Executive Vice President, Ameresco. "The ESPC model is a very effective tool for county and municipal governments to upgrade aging equipment and avoid equipment failure without asking taxpayers for additional funding. All the upgrades for this project with Alpena County will be paid through energy, operational and maintenance savings, and we have engaged local labor and subcontractors whenever possible to help support the local economy."

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Knoxville, TN, Convention Center Earns LEED Silver Certification
Ameresco commended its customer, Knoxville Convention Center, on earning the prestigious LEED Silver Certification for Existing Buildings by the U.S. Green Building Council (USGBC) for the facility's sustainable operational policies. "We commend the City of Knoxville and the Knoxville Convention Center for their commitment to environmental stewardship and leadership in sustainability," said David J. Anderson, Executive Vice President, Ameresco. "Ameresco is proud to be a valued partner, and we congratulate the Knoxville Convention Center for earning the prestigious LEED Silver certification, and demonstrating their vision to the municipal community."

In order to achieve LEED Certification for Existing Buildings, the Convention Center was scored in accordance with rigorous guidelines set forth by the USGBC. The Convention Center verified that Ameresco installed a 120-kilowatt rooftop solar photovoltaic system as part of a comprehensive energy efficiency project. In addition to the solar installation, the facility added new energy efficient boilers, a 30-ton air cooled chiller, window film, a new domestic hot water system and lighting systems to reduce the center's carbon footprint and make the building more sustainable.

"The Convention Center is committed to being a facility that takes the environmental impact of its operations seriously, and our sustainable practices are intricately woven into our everyday operations," said General Manager Mary Bogert. "This certification demonstrates this commitment. We are grateful to the City of Knoxville for placing high value on sustainability and to the City of Knoxville Department of Sustainability and its energy contractor, Ameresco, for partnering with our staff to help achieve this goal."

"I applaud the staff of the Knoxville Convention Center on their commitment to sustainability and congratulate them on this award," said Knoxville Mayor Madeline Rogero. "Their commitment furthers the City of Knoxville's focus on sustainability and renewable resources. Recently, we were proud to place the largest solar panel installation on any City-owned facility on the roof of the Convention Center to provide clean, renewable energy to the region."

In 2010, Ameresco and the city of Knoxville embarked upon a $13.8 million Energy Savings Performance Contract (ESPC) that implemented improvements at 104 buildings, 40 ballparks and fields, and three golf courses. These improvements are now delivering $1.1 million in annual energy savings for the City. Energy conservation measures included new lighting systems to provide effective lighting control and uniform lighting, solar hot water system, HVAC improvements including a variable air volume conversion, water conservation, irrigation solutions for ball field and golf courses, pool covers, new steam boilers, and a city-wide energy management system (EMS) for remote monitoring, controlling, and troubleshooting of the HVAC systems.

Ameresco has a long history of partnering with counties, schools, municipalities and commercial entities to improve energy infrastructure and install renewable energy technologies. Their pioneering of the ESPC financing model has made the budget-neutral solution an increasingly popular option for customers across North America, which enables budget-neutral energy efficiency upgrades by guaranteeing a minimum level of energy savings over the term of the contract. Ameresco coordinates the upfront project costs and the City repays that investment with their energy savings over time.

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Honeywell Contracts With Huntington (WV) Housing Authority
Honeywell announced an energy retrofit project that will save the Huntington West Virginia Housing Authority more than $340,000 in annual energy and operating costs. The initiative will improve building comfort and energy efficiency in more than 900 public housing units in 13 complexes for the Huntington West Virginia Housing Authority and includes building upgrades and conservation measures that will cut energy use at each complex.

The housing authority will finance the building improvements through a 15-year, $3.7 million energy savings performance contract with Honeywell. "Maintaining our complexes is always a top priority, but it has become increasingly difficult to fund necessary improvements in light of tightening budgets," said William Dotson, executive director of Huntington West Virginia Housing Authority. "Our retrofit project with Honeywell will allow us to address maintenance and conservation needs risk-free with measures that will not only improve comfort but help us save money, too."

As part of the retrofit work, Honeywell will install more energy-efficient lighting, furnaces and hot water heaters, implement water-saving measures such as low-flow toilets and faucets, and update wall insulation to minimize air infiltration at each of the 13 housing complexes.

In addition to saving money and improving comfort, the building improvements will also cut the housing authority's annual greenhouse gas emissions by 1,081 metric tons – equivalent to removing 226 vehicles from the road.

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Chevron Energy Solutions Helping City of Lemoore (CA) Save Nearly $45 Million
The city of Lemoore, CA, and Chevron Energy Solutions are starting construction of an expansive solar installation to power domestic water wells, a wastewater treatment plant, the Cinnamon Municipal Complex, Police Department, and several other facilities throughout the city. It is expected to generate 3.1 megawatts of electricity and reduce purchases from the electric utility by close to 100 percent for most of the facilities. Over the life of the project, and after paying all its costs, the city of Lemoore is expected to save close to $45 million.

To design, engineer, build, and operate and maintain the solar installation, the city of Lemoore chose Chevron Energy Solutions, its third project for the city in the past 5 years.

It is expected the project will be completed in May, 2014.

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Live Oak School District (CA) and Chevron Energy Solutions Dedicate New Solar Installation to Long-Time Sustainability Champion Barney Bricmont
The Live Oak School District, Santa Cruz, CA,will celebrate completion of solar power installations and lighting efficiency upgrades at its six schools by dedicating a solar-shaded garden bench to the late Bernard "Barney" Bricmont, former member of the Live Oak School District Board and long-time supporter of solar and sustainability projects in the district.

The solar installation is expected to generate 416-kilowatts of electricity and, together with a set of energy efficiency measures, reduce the district's annual electricity use by over 80%, and save almost $2.5 million over the life of the project. Chevron Energy Solutions was selected by the district to design and build the solar power system, and maintain and guarantee its performance.

The late Barney Bricmont served on the Live Oak School District Board for more than three decades. He was well known and respected in the community as a tireless advocate for both student achievement and environmental sustainability. He was an early and effective champion in Santa Cruz County for organic farming and renewable energy. The bench that will be dedicated in his honor will sit next to a school garden and in the shade of a solar canopy.

"We thought this would be the best way to celebrate and honor Barney's legacy," said Larry Perlin, president of the Live Oak School District Board. "This project meant so much to him."

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Climatec Saves Scottsdale Unified School District (AZ) Over $1 million Annually Through Energy Retrofits
Climatec Building Technologies Group saves Scottsdale, AZ, Unified School District (SUSD) over $1 million annually through energy saving technology. SUSD has been saving on energy costs over the last three years due to equipment upgrades and the increased use of solar energy. As one of the first districts in the state to implement a comprehensive energy management plan, the district has seen an annual savings of over $1 million. This result has exceeded the guaranteed energy total by 168%. The district expects to continue to realize these energy savings wells into the future.

For the past 100 years, SUSD has been on the leading edge of education in Arizona while placing a high value on energy efficiency and reducing their carbon footprint. In order to meet energy savings goals, SUSD built a lasting relationship with Climatec through multiple phases of energy performance contracting. With limits on general fund dollars, Climatec identified key sites with inefficient lighting, antiquated HVAC units, and little to no control over its heating and cooling schedules. With utility bills & electrical costs higher than ever and an ever-diminishing O&M budget, the district was in desperate need of a solution.

Starting small with controls, lighting, and HVAC upgrades at one site, SUSD quickly realized significant savings potential. Climatec has since completed two additional phases covering a total of 12 schools. Energy conservation measures include a new, fully-integrated Alerton energy control system, new high-efficiency HVAC systems, central plant upgrades, comprehensive lighting retrofits with controls & occupancy sensor integration, vending machine power management, dashboard web interface integration, and solar PPA. Climatec helped secure a
$1.2 million ARRA grant, substantial utility rebates, QSCB financing, and a 10-year municipal lease for the balance of the project.

SUSD is now considered an energy efficiency leader in Arizona education. With over 12 million kWh saved to date, SUSD is using 25% less electricity than before.

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JCI Reports That Empire State Building's Energy Savings Beat Savings Forecasts
Johnson Controls landmark project retrofit cut $2.4 million off the famed spire's energy bills, earned LEED Gold certification, and yielded upscale new tenants. Five years after the Empire State Building began an ambitious $550 million retrofit designed in part to make the famous spire more energy efficient, the savings are already beating expectations. A report from Johnson Controls, one of the partners on the retrofit project, shows that the art-deco landmark saved $2.3 million last year on its energy costs and $2.4 million in 2011, beating projected savings by 4% and 5%.

The upgrades, which included installing new lighting and windows, modernizing boilers, and insulating radiators, earned the building LEED Gold certification in 2011. Once the building is fully retrofitted, which will happen within four years, the upgrades are expected to save $4.4 million annually in energy costs, or about 38% of the building's current bill.

The building's new green credentials have helped boost occupancy rates, attracting tenants like LinkedIn, Coty Inc, and Shutterstock. "The energy efficiency was a huge component of our success in repositioning the building," said Anthony Malkin, president of Malkin Properties, which manages the building. He added that energy efficiency, which translates into lower operating expenses, is a boon to both the owner and the tenants. "There's a savings in cost to the buildings and to our tenants," said Mr. Malkin. "We make it possible for our tenants to improve their bottom line."

Victor Olgyay, a principal with Colorado-based Rocky Mountain Institute, another partner on this project, said the high visibility of the Empire State Building should help motivate other commercial landlords to invest in similar energy-saving upgrades.

"Deep retrofits yield significant energy cost savings but their benefits don't stop there," said Mr. Olgyay in an email. "A growing body of evidence shows that super-efficient buildings boast higher occupancy rates, increased rental and sales prices, better employee retention and decreased risk."

Malkin Properties has also made energy retrofits to 13 other commercial buildings in the New York metropolitan area. If other commercial buildings follow suit, it could mean a big dent in the city's energy use. Buildings account for 80% of New York's carbon emissions, according to PlaNYC. If others followed the Empire State's example those annual emissions could be cut by 4 million tons.

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Siemens To Build Largest Federal Wind Farm For National Nuclear Security Administration (NNSA)
The National Nuclear Security Administration (NNSA) has awarded a contract to Siemens Government Technologies, Inc. (Siemens) to construct the federal government's largest wind farm. The Pantex wind farm is expected to save an average of $2.9 million annually over the 20-year contract term. The installation will consist of five 2.3 megawatt turbines located on 1,500 acres of government-owned property east of the Pantex plant in Amarillo.

Using an Energy Savings Performance Contract, Siemens will provide a turnkey wind farm system that includes a multi-year service, maintenance and warranty agreement. The cost of the project will be funded by the energy savings guaranteed by Siemens and will enable Pantex to meet President Obama's directive for agencies to meet federal energy mandates as well as supporting the Department of Energy's renewable energy goals.

The wind farm is expected to generate roughly 47 million kilowatt hours of clean energy annually, which is more than 60 percent of the electricity required annually for the Pantex facility. This is enough electricity to power nearly 3,500 homes and will reduce CO2 emissions by over 35,000 metric tons per year, which equates to removing over 7,200 cars from the road each year or planting over 850,000 trees.

The NNSA was established by Congress in 2000 as a separately organized agency within the U.S. Department of Energy, responsible for the management and security of the nation's nuclear weapons, nuclear nonproliferation and naval reactor programs.

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COUNTRY Financial Increases Energy and Operational Efficiency Via Contract With Trane
Trane has completed systems and services upgrades at the five-story, suburban St. Paul, MN., office of COUNTRY Financial. Trane's upgrades have reduced energy costs and increased energy and operational efficiency. COUNTRY provides financial products and services, serving about 1 million households and businesses throughout the United States. The retrofits are part of an ongoing plan to reduce energy costs while improving facility operations. COUNTRY leaders expect the upgrades completed so far to save the company more than 8 percent in annual energy costs. Launched in September 2010, the improvements have also delivered expected operational efficiencies, reducing the number of heating, ventilation and air conditioning (HVAC) service calls by 25 percent.

The phased-in approach undertaken by COUNTRY Financial leaders enabled them to optimize building performance, including functions at their critical 24/7 data center, even while reducing facilities staff. Improvements in earlier phases delivered some savings, while providing tools and data to drive later initiatives.

Initial improvements included a Trane Tracer™ building automation system (BAS), designed to capture key building operating parameters. The control system has become a communications hub used to implement intelligent building services that allow maintenance staff to optimize building performance by obtaining automated real-time reporting on systems performance. The Tracer BAS enables alarm monitoring for their 24/7 data center. Data generated enables staff to more easily maintain building performance and address any minor challenges before they become larger issues.

"We took a phased in, thoughtful approach to improvements that have enabled us to realize savings through each stage of building upgrades," said Randy Hagerty, manager of property and facilities for COUNTRY. "We're pleased that the reduction in service calls has already shown a significant return on investment, demonstrating improved building performance even during limited staff times."

The improvements represent a major step in transforming the COUNTRY Financial building into a high performance building that links to its business mission. High performance buildings take a whole building approach to performance while creating spaces that are reliable, safe, healthy, comfortable and efficient. The multi-tenant building, which houses more than 500 occupants, includes office space, a cafeteria, an exercise room and the 24/7 data center.

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Trane Continues Efficiency Upgrades at Landmark McGladrey Plaza Building in Downtown Minneapolis
Located at Eighth Street and Nicollet Mall in downtown Minneapolis, the 419,000-square-foot McGladrey Plaza building has been owned by United Properties since 1994. McGladrey Plaza was built in 1968 and underwent a sweeping renovation in 1996 that earned it "Best Remodeled Building of the Year" awards from the National Association of Industrial & Office Properties and the Minnesota Shopping Center Association. The building is managed by Cushman & Wakefield®/NorthMarq, the largest commercial real estate firm in the upper Midwest, which manages more than 50 million square feet of retail, industrial and office assets.

McGladrey Plaza has been a service contract customer with Trane® for more than 15 years and is currently using Trane Tracer Summit™ Controls to operate the building. When it came time to upgrade the energy performance of the building, leaders at McGladrey Plaza turned to Trane for help.

The building owners wanted to look at a comprehensive solution that used innovative technology to ensure tenants were happy and had a comfortable, reliable working environment. The Trane team worked with the owner to better understand the future needs of the facility and identify available options to plan for reliable operation for decades to come.

The owners selected an option that would minimize the risk of not being able to provide cooling by keeping redundancy in each of the chiller plants. The selected, highly efficient solution reduces energy consumption and carbon dioxide emissions equivalent to removing 81 cars from the road each year.

To keep all of the solutions working correctly, Trane will support McGladrey Plaza with a 10-year chiller select service agreement which includes predictive maintenance, overhauls and Trane R'newal™ Service programs on all four chillers. Trane R'newal™ Service programs are comprehensive services that ensure the performance of the chillers and can extend the useful life of the equipment. These services bring existing units to the same level of reliability and current technology as offered by a new Trane chiller.

The leaders at McGladrey Plaza wanted to upgrade the building's cooling system equipment to improve performance, ensure the cooling plants were operating as efficiently as possible, and reduce the risk of critical system failure. They also wanted to create a safer working environment by upgrading the life safety equipment in the mechanical rooms.

McGladrey Plaza asked Trane to conduct a preliminary analysis of the existing cooling system performance, as well as the building's future cooling and maintenance needs. Trane used this information to create recommendations for potential upgrade options that would improve building performance while supporting the building owner's business mission of creating a comfortable and productive working environment.

Trane provided a detailed analysis of the cost versus savings for selected options to help leaders at McGladrey Plaza make a solid business case for needed upgrades. Trane also provided a summary of the total investment and a project timeline that included completing all of the upgrades during the non-cooling season.

Replacing the 43-year old Trane Centrifugal chillers and cooling towers had its share of challenges, and the plan put together had many critical timing components to be considered. The project needed to be completed during the winter to minimize the impact on the tenants and their businesses, leaving a short window of opportunity for the new equipment to be installed.

The equipment on the roof and penthouse required several blocks of Nicollet Mall to be shut down over a weekend in order to safely set up for crane operations. The challenge of shutting down a busy downtown street was only part of the logistical considerations Trane had to manage, as the crane could only be operated at that height with a wind speed of less than 11 mph. The ability that the Trane team had to be flexible and mobilize a team on short notice was key to the project's success.

The biggest challenge with the lower chiller plant was having access for bringing the new chillers into the building. Because of constraints with the design of the building, Trane had to completely disassemble the chillers, including splitting the tube shells, to make the pieces small enough to get through doorways and down stairwells. Upon completion of mobilizing the equipment, the Trane technicians reassembled the chillers.

During the initial analysis of the plant operation it was determined that McGladrey Plaza had an opportunity to leverage their Trane control system to get additional savings and better system operation by implementing Variable Primary Flow programming. Pressure independent valves were installed to control the flow of chilled water and the capabilities were programmed into the control system.

Trane replaced the four existing centrifugal chillers in the building's west tower, as well as the chilled water condenser water pumps and the cooling towers located on the roof of the building. Trane also installed pressure independent valves to allow for variable primary flow operation. To address safety concerns, Trane upgraded the mechanical room ventilation system to meet ASHRAE 15 requirements.

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Trane Completes Retrofit for Savannah-Chatham County (GA) Public School System
Leaders at Savannah-Chatham County Public School System (SCCPSS) recently completed infrastructure upgrades anticipated to save more than $1.2 million in annual utility and operational costs. The upgrades were completed in July in more than 26 school buildings throughout the district. The improvements replaced aging systems to help create a healthy and comfortable learning environment for the district's students, and a comfortable and productive workplace for teachers and staff. SCCPSS leaders funded the upgrades with a performance contract which allowed the district to use future energy and operational savings to finance the infrastructure improvements up front.

"We're pleased that we could improve the learning and working environment throughout the district by increasing energy efficiency and sustainability, said Mike Coon, senior director of maintenance and operations for SCCPSS. "It's even better that we could fund the improved learning and teaching environment through energy savings, allowing us to maximize funds in a way that is most supportive of the district's educational goals," said Coon.

"We are proud of the accomplishments of Savannah-Chatham County Public Schools," said David Freedman, executive director of USGBC Georgia Chapter.

The upgrades represent a major step in transforming district facilities into high performance buildings that tie to its educational mission. High performance buildings take a whole building approach to performance while creating spaces that are reliable, safe, healthy, comfortable and efficient.

Prior to selecting improvements, SCCPSS leaders completed a detailed energy audit of district buildings to identify the infrastructure system upgrades that best met their energy conservation goals. Based on the results of this evaluation, SCCPSS chose to upgrade the heating, ventilation and air (HVAC) systems in 21 district buildings, lighting systems in 26 buildings, and building automation systems in 26 facilities.

The new HVAC and building automation systems upgrades enable the school district to provide a more productive learning environment by better controlling classroom temperature and humidity and indoor air quality. The energy efficient lighting upgrades significantly improve lighting throughout classrooms in the district.

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Member News

Ameresco Acquires ESP and Expands Enterprise Energy Management Services for Multi-National Customers
announced that it has acquired ESP, an energy management consulting company consisting of The Energy Services Partnership and ESP Response, located in Castleford, United Kingdom. With this acquisition, Ameresco adds a local presence in the UK, expertise and seasoned energy industry professionals to support multi-national Enterprise Energy Management customers.

In the United Kingdom, ESP is a leading provider of innovative energy management solutions, including energy supply, invoice management and demand response services for commercial, industrial, manufacturing and utility customers Like Ameresco, ESP is also supplier independent.

"ESP is an exciting addition to the Ameresco family and will expand our enterprise energy management services to help support our multi-national customers that have additional requirements in the United Kingdom," said George P. Sakellaris, President and Chief Executive Officer, Ameresco. "With this acquisition, we add local expertise to our EEM team and extend Ameresco's energy supply and information services for our commercial, industrial and manufacturing customers with offices and requirements outside of North America."

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DOE Selects Eaton for Research Grant to Develop Next Generation of Energy Efficient Lighting
Diversified industrial manufacturer Eaton today announced that it has received a $2.4 million research grant from the U.S. Department of Energy (DOE) to explore the development of energy efficient lighting products. Eaton's research, slated for completion in 2015, will aim to improve the manufacturing speed of light-emitting diode (LED) fixtures by three times over the typical rate, reduce LED light engine costs by five times and reduce assembly costs by approximately 50 percent.

"This partnership with industry to produce affordable, efficient lighting will save consumers money and create American jobs," said Energy Secretary Ernest Moniz in a news release issued by the DOE. "It's another example of how energy efficiency is a win-win proposition for our economy."

In comparison to conventional lighting, LED lighting is six to seven times more efficient and can last up to 25 times longer. The Eaton project is part of the DOE's broader effort to facilitate research in the LED lighting sector to reduce the cost and improve long-lasting quality and performance to make LEDs the preferred choice in energy-efficient lighting.

"LED is currently more costly than traditional lighting," said Mark Eubanks, president, Eaton's Cooper Lighting Division. "Eaton is focused on innovation that will simplify the design and manufacturing process to maintain high quality and lower costs for consumers."

The grant was awarded to Eaton as part of larger $10 million DOE initiative. Work on the project will be conducted at Eaton's Research and Technology Center in Menomonee Falls, Wis. and by Eaton's Cooper Lighting R&D Center in Peachtree City, Ga.

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Energi Shares Best Practices for Hydraulic Fracturing with Environmental Council of the States (ECOS)
participated in the Environmental Council of the States' (ECOS) "The Path to New Energy: Hydraulic Fracturing in Focus" conference, an open dialogue on the benefits and risks of hydraulic fracturing aimed at advancing safe and secure production from unconventional resources. As part of a panel on the benefits of voluntary safety measures, Energi shared best practices for protecting water resources, production well completion, wastewater management and well closure. Energi showed how these practices could increase the viability of hydraulic fracturing, to attendees including state environmental regulators, federal governmental agencies and nonprofits, as well as business and industry officials.

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Toshiba Acquires Assets of Eletta Technology
Toshiba International Corporation (TIC) has announced that a binding agreement is in place to acquire all assets and intellectual property from Elettra Technology Inc. (ETI), a manufacturer of custom electrical industrial motors based in Hamilton, Ontario, Canada. With assets including those from former Westinghouse Motor Company Canada Ltd., the acquisition is a strategic move for TIC to add its strength in the electric motor marketplace and support the growth of TIC's industrial and infrastructure business.

The new company will be named Toshiba Industrial Products Canada (TIPCA), pending approval, and will continue to operate with the same employees that are currently staffed by ETI. TIPCA will relocate manufacturing to a recently renovated facility in Hamilton with added space and crane capacity. TIPCA's assets will provide TIC with the ability to manufacture larger motors and motors that fill complex and special application requirements, which will further enhance TIC's business portfolio of large electric motors in the Canadian and global marketplace. The integration of the two companies will take place over the next few months.

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Toshiba Completes Expansion of its Control Plant in Texas
Toshiba International Corporation recently completed an expansion of its control plant located in Houston, Texas. The expansion provides an additional 107,000 square feet of manufacturing and office space and is scheduled to commence production in the new space by fall 2013.

The approximately $20 million capital investment will meet the need to double the capacity of its medium voltage adjustable speed drive product line, which has seen substantial growth over the last two years. The expansion will allow TIC to reduce lead times to better serve its customers in key markets including Oil & Gas and Mining. Additionally, the plant will also be positioned to satisfy the growth in other key product areas including low voltage adjustable speed drives, motor starters, and rail transit control systems.

"The expansion will bring an additional 100 jobs to the Houston area, adding to the large employee growth TIC has had in the last two years. The 55-acre Houston facility has undergone three expansions in the last five years, as TIC continues to build its North American infrastructure and support the needs of its customers.

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People in the News

Fulcrum Group Names David F. Bomke as Assistant Vice President of Operations
The Fulcrum Group is pleased to announce the addition of David F. Bomke as the Assistant Vice President of Operations. His primary role is to act as a representative of the organization to several key clients as well as serve as an employee advocate.

Currently, Mr. Bomke serves on the New York City Energy Policy Task Force, the Energy Committees of the New York Building Congress and the Building Owners and Managers Association of Greater New York, the Building Performance Laboratory, and the Advisory Board of the Greater New York Construction Users Council. He also serves on the board of the Manhattan Chamber of Commerce, where he currently holds the position of Vice President of Diversity. Statewide, he has previously served on the Systems Benefits Charge Advisory Board and the Appliance Standards Review Committee of the New York State Energy Research Development Authority and currently serves on the New York State Evaluation Advisory Group.

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