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FOIA Number: 2017-1094-F
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the William J. Clinton
Presidential Library Staff.
Collection/Record Group:
Clinton Presidential Records
Subgroup/Office of Origin:
WH Task Force on Climate Change
Series/Staff Member:
Roger Ballentine; Paul Bledsoe; Julie Anderson
Subseries:
OA/ID Number:
41299
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Folder Title:
Federal Energy
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S
100
3
9
3
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
July 25, 1998
July 25, 1998
MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES
SUBJECT:
Cutting Greenhouse Gases through Energy Savings
Performance Contracts
My Administration has made addressing the threat of global
climate change one of our top environmental priorities. As the
Nation's largest consumer of the fossil fuels that scientists
believe are driving global warming, the Federal Government has a
special responsibility to lead in developing clean energy
solutions and in reducing Federal energy consumption. While
Government-wide energy saving activities over the last several
years have resulted in significant achievements, we can and
should do more.
On March 9, 1994, I issued Executive Order 12902, Energy
Efficiency and Water Conservation at Federal Facilities, which
directed all executive agencies to reduce energy consumption 30
percent below 1985 levels by the year 2005. We have made
significant strides, but in order to achieve this goal we must
make better use of a critical energy management tool. Energy
Saving Performance Contracts (ESPCs), which are authorized under
the National Energy Conservation Policy Act, as modified by the
Energy Policy Act of 1992, provide significant opportunities for
making Federal buildings more energy efficient at little or no
cost to taxpayers. Under ESPC authority, agencies can contract
with private energy service companies to retrofit Federal
buildings with no up-front payments by the Government. These
companies recover their costs from a negotiated share of the
energy cost savings, with the remaining savings being returned to
the contracting agency and to taxpayers. The Federal Government
must make more use of these highly cost-effective contracts.
I therefore direct all Federal agencies to maximize use of this
authority by the year 2000, when the authority expires. I also
2
direct the Department of Energy (DOE) to lead an interagency
effort to develop a legislative proposal extending ESPC authority
past the year 2000. As part of this effort, I direct all
agencies to identify and propose areas for expansion of ESPC
authority -- for instance, as appropriate, to some leased
buildings, mobility, and other Federal assets. In addition, I
direct agencies to propose ways to procure electricity produced
using cost-effective renewable sources.
While ESPC authority has existed for some time, I have encouraged
significant steps to streamline and promote greater use of this
tool. To this end, the DOE and the Department of Defense (DOD)
have negotiated contracts with energy service companies over most
regions of the country. These ESPCs currently allow up to $5
billion worth of projects at Federal facilities within these
regions. The DOE and the DOD anticipate that by the end of this
year they will negotiate contracts allowing an additional $2.7
billion worth of such work in specific regions. The combined
$7.7 billion provides, in effect, the total dollar amount of
retrofit projects that Federal agencies can complete at their
facilities using ESPCs. In addition, the DOE anticipates
negotiating over $1 billion for ESPCs to finance the installation
of renewable energy and other efficient technology systems in the
near future.
To further compliance with this directive, I have asked the
Office of Management and Budget to provide new guidance to
agencies that will help remove barriers and provide more
incentives for using ESPCs. This guidance will change the
budgetary treatment of these contracts to be consistent with the
unique statutory authority for ESPCs. Specifically, the full
amount of budget authority for the contract will no longer be
needed up front, but can be made available over a number of
years. In addition, this guidance will encourage agencies to
permit up to 50 percent of the energy savings from ESPCs to
remain at the facility or site where they occur. Both of these
policies will help motivate Federal energy managers to make
greater use of ESPCs and reduce agency operating costs.
To make use of this authority, Federal facilities need to contact
the DOE or the DOD to engage contractors already pre-approved to
complete ESPC work. Agencies can also consider using direct
appropriations or contract with their local utilities. I also
direct Federal agencies to maximize efforts to earn an ENERGY
STAR label, demonstrating to the public that they rank in the top
25 percent for building energy efficiency. Combining energy
savings contracting authority with utility programs and agency
funded efforts can save taxpayers as much as one billion dollars
a year in energy costs over the next 15 years, and can reduce
greenhouse gas emissions by up to 3 million metric tons of carbon
3
annually.
To ensure the full use and benefits of ESPC authority, I further
direct each executive agency to submit to me, in the next 90
days, a memorandum detailing:
1. Your agency's accomplishments in reducing energy consumption
since 1985, and your plans to reduce energy consumption 30
percent below 1985 levels by 2005, in compliance with Executive
Order 12902;
2. Your agency's plans to use ESPCs and other tools, as well as
your plans to achieve ENERGY STAR labels for your facilities, as
part of your increased attention to saving money through energy
efficiency and renewable energy;
3. Your proposals on how to expand the Federal Government's use
of these tools, for inclusion in our request to the Congress for
extending ESPC authority beyond the year 2000; and
4. Your strategy for encouraging use of ESPCs and other
financing mechanisms to install renewable energy production
systems -- such as those called for in the Million Solar Roofs
Initiative.
WILLIAM J. CLINTON
# # #
PRESIDENT CLINTON'S
TEN POINT FEDERAL ENERGY EFFICIENCY INITIATIVE
The Federal government is the nation's largest energy consumer with an annual bill of $8 billion.
Significantly reducing this cost cuts Federal spending, reduces pollution, and helps deploy energy
efficient and renewable technologies. In addition, we make our nation more secure by cutting our
reliance on foreign oil and by capturing significant cost savings at the Department of Defense --the
government's single largest energy consumer --which can be turned back into direct military
expenditures. Significant strides have already been made over the last decade, but much more
remains to be done. Today. President Clinton announced three central parts of his pledge to have the
federal government lead in energy efficient management practices.
Expand Use of Energy Savings Performance Contracts
Energy Savings Performance Contracts (ESPCs) and other tools such as agreements with utilities
use private investment capital and expertise to accomplish energy and cost saving projects in Federal
facilities. Private sector firms invest in federal energy efficiency improvements and are repaid from
the delivered cost savings. All additional savings accrue to the government.
Today. the President issued a directive to all cabinet agencies to expand the use of
these contracts by Federal agencies, and announced that the Departments of Defense
and Energy have made
of new contracting authority available. Together with
today's announcement, up to $6 billion of Federal contracting authority is available
for energy saving investments.
The President's directive sets a goal of $X billion in contracts to be signed, by the
year 2000 for a energy savings for taxpayers of $XXX million per year, and over 2.2
million tons of carbon reduction annually.
The President will ask the Cabinet for recommendations within 60 days for expanding
these waste busting tools to buildings leased by the Federal government, vehicles
and other Federal assets, and will seek Congressional support and authority to use
these tools into the 21st century.
The Federal government will seek to boost agency participation in these money
saving techniques and encourage partnerships with private sector suppliers at a
Federal Energy Efficiency Workshop and Exposition in Bellvue, Washington on
August 3-5.. Called ENERGY 98, this Workshop is expected to draw thousands of
participants.
Sustainable Design in new Federal Buildings
The Department of Defense has taken the lead in adopting "sustainable design" principles for
all its new building construction, beginning in FY 2000. Their plan will mean that new
construction at the Department of Defense will use up to50% less energy than similar
buildings, resulting in annual energy savings of over 500 billion BTUs and over $5 million.
The President announced that the Departments of Energy, Transportation, the National Park
Service, the Postal Service, the Environmental Protection Agency and the General Services
Administration, will join forces with DOD to commit that all new building construction will
be done adopting "sustainable design" principles. The President asked all other agencies to
work to incorporate these principles into their own new construction.
The Department of Defense, the federal government's largest single energy user, has
already constructed XX facilities using these principles, reaping an estimated $XX
savings in energy costs. DOD expects to build 16 million square feet of new facilities
in each of the early years of the next decade. Applying sustainable design to this
construction would save over 500 billion BTUs in annual energy costs, with an
ultimate cost savings to taxpayers of $5 billion per year.
The President directs all Federal agencies to participate in the Federal Energy Star
Buildings Program Partnership. Participating agencies commit to pursue energy-
efficient, cost-effective, environmentally beneficial building technologies and
procedures. Seven Agencies have joined, representing 91% of the total square
footage in the Federal buildings inventory.
Federal lighting purchasing and retrofit campaign
The enormous purchasing power of the federal government can not only set an important
example, but also can have a significant impact on helping drive down the per unit cost of
important energy saving equipment. Enormous energy savings, for instance, can be gained
by simply switching from inefficient incandescent bulbs to more efficient compact fluorescent
lights (CFLs). CFLs produce the same amount and quality of light, using a quarter the energy
of incandescent bulbs, and last XX as long.
The President announced that the Federal government will purchase and use
100,000(??) CFLs each year. for the next three years. This will produce an annual
cost savings in electricity costs of $XXX million, as well as a savings of XX MMT
of CO2.
The President also set a goal of replacing XX old-style florescent tubes with more
modern replacements. particularly through the use of ESPCs. This will produce a
cost-savings of $XXX million, and prevent the emission of XX MMT of CO2.
In addition to these efforts, announced today, the President said he will hold a Cabinet
meeting in the early Fall to kick off the remaining aspects of the Federal Energy Efficiency
initiative. These include:
Transportation Initiatives for Federal Vehicles: One third of Federal energy use
occurs in the transportation sector. Interagency working groups are meeting at the
President's direction to review federal energy use in this sector and to propose
innovative solutions to reduce fuel use, to encourage alternative fuel use, to
maximize use of public transit by federal employees and other issues.
Improve Federal Procurement of Energy Efficient Technologies --Looking
Beyond First Cost. Provide high-level Administration support and direction for
agencies to buy energy efficient products and services. Under current practice, many
Federal agencies buy products based on the lowest first cost, without calculating the
long-term costs associated with their use. These practices waste energy and taxpayer
dollars over time. While agencies are required to consider life-cycle costs when
undertaking large retrofits or purchasing major equipment, this financial analysis is not
always used with smaller product purchases. Efforts to change this pattern have
begun and will be encouraged by Administration officials and procurement rules.
Energy Efficient Windows -Helping Federal Agencies Stay Warm in Winter and
Cool in Summer. The Administration will support new efforts to improve the use
of energy efficient windows in Federal buildings. The new DOE/EPA
ENERGYSTAR recommendations for residential windows, as well as efforts to
include energy efficiency in Federal guide specifications for commercial scale
windows, can help Federal agencies choose the most energy efficient windows for
new construction and retrofits. By following the ENERGY STAR recommendations,
Federal agencies can significantly reduce their heating and cooling energy needs when
they purchase windows for new buildings, or replace windows during renovations of
existing buildings.
Establish Standards for Federal Purchase of Renewable Energy. Over the
course of this fiscal year, the Federal government will issue over $2.0 million in
funding for solar and other renewable technologies for use by the Federal
government. The President will direct that ESPCs for renewable technologies be
issued and used where appropriate. Also the President has asked that over the next
year, the Federal Government establish standards to ensure a percentage of electricity
used by the Federal government is generated from renewable resources. The
restructured electric marketplace gives customers, including the Federal government,
the opportunity to develop renewable energy projects and purchase green power in
meeting part of their energy needs.
Expand Federal Use of Combined Heat and Power Technologies. Combined heat
and power systems generate multiple types of power, including electricity, steam,
chilled water, and mechanized energy using the same fuel source. These systems can
provide significant energy savings as well as environmental benefits compared with
traditional power systems. This initiative will highlight the energy savings and
greenhouse gas reductions Federal agencies already contribute through use of these
technologies at many sites, demonstrate new applications and provide technical
information to encourage expanded use of these technologies.
Report Greenhouse Gas Emissions. The President has directed that each Federal
agency track and report its overall greenhouse gas emissions. As part of a process
of reviewing, consolidating and reinventing Executive Orders, a working group will
respond to the President's directive with a plan to collect this information, along
with other information essential to the Administration and Congress to enable the
assessment of progress in reducing the Federal energy bill and documenting the
Federal government contribution to reducing pollution.
Complete Federal agency audits. Federal agencies are required to audit their
facilities for energy use and potential for improvement. The President has asked that
Federal agencies accelerate completion of these audits.
PRESIDENT CLINTON:
LEADING THE FIGHT AGAINST GLOBAL WARMING
JUNE 3, 1999
President Clinton, in a Cabinet meeting today, issued an Executive Order to help meet the challenge of global
warming by dramatically improving energy efficiency in Federal buildings. By 2010, the resulting energy
savings will reduce annual greenhouse gas emissions by 2.4 million tons - the equivalent of taking 1.7 million
cars off the road - and save taxpayers over $1 billion a year. As a prime example of the savings that can be
achieved, the President also announced a major contract to retrofit over 800 buildings at five military
installations in the Washington, D.C. area, saving taxpayers over $150 million [a year].
Leading by Example. The Federal Government is the nation's largest power consumer with an annual
energy bill of over $8 billion - more than $4 billion to heat, cool and power its 500,000 buildings. Federal
agencies already have reduced energy consumption 15% per square foot below 1985 levels. Today's order
builds on that progress by:
Setting Aggressive Goals - The Order requires federal agencies to achieve by 2010:
35% greater energy efficiency in buildings relative to 1985 levels;
30% cut in greenhouse gas emissions from building-related energy use relative to 1990 levels.
Mobilizing Cutting-Edge Strategies -- The Order directs agencies to make greater use of:
Energy Saving Performance Contracts, in which private contractors make energy-saving improvements on
federal facilities at their own expense and receive a portion of the resulting savings.
Life-cycle cost analysis, so agencies see the long-term savings from energy investments;
ENERGY STAR & other energy efficient products, everything from light bulbs to boilers;
Renewable energy technologies and sources (solar, wind, geothermal, and biomass).
Strengthening Accountability -- The Order requires that annual scorecards evaluating agency progress
be submitted to the President; gives OMB, in consultation with the Department of Energy, oversight
authority, and directs agencies to appoint energy management teams to help meet the goals of the
Order.
Concrete Steps, Concrete Savings. The partnership announced today between the Department of Defense
and Viron/Pepco Energy Services - the largest energy-saving performance contract ever awarded - will cut
energy in 837 buildings at Ft. Belvoir, Ft. A.P. Hill, Ft. Meyer, Ft. McNair, and Ft. Meade. Other examples
of energy-saving actions to be accelerated under today's order include:
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Incentives For Businesses and Homeowners, Too. To help American businesses and consumers reap the
same kinds of energy and cost savings, the President today also calls on Congress to enact his proposed $3.6
billion package of tax incentives for the purchase of energy efficient homes, appliances, cars, and energy
from renewable sources.
Q.
What Does this Executive Order Do?
A.
The Executive Order signed by the President directs Federal agencies to undertake new
energy efficiency activities that will achieve real financial savings to the government and benefits
to our environment. The EO directs agencies to:
improve energy efficiency in Federal buildings by 35% over 1985 levels by 2010;
reduce greenhouse gas emissions resulting from building energy use by 30% relative to
1990 levels by 2010;
expand use of renewable energy technologies and electricity from renewable energy
sources.
Meeting these goals will reduce greenhouse gas emissions by an amount equal to [X] million
metric tons of carbon (MMTCE) - the equivalent of taking over 2 million cars off the road or
planting XX acres of trees.
The EO also provides a framework to hold agencies accountable for their progress in meeting its
goals; identifies tools through which agencies can meet the goals of the order; promotes
renewable energy technologies, such as solar, wind, geothermal, and biomass.
Q.
How is This Order Different Than Previous Orders?
A.
Unlike previous energy efficiency orders, the Executive Order that the President signed today
contains a specific carbon reduction goal. The inclusion of a carbon goal ensures that agencies
will not merely concern themselves with reducing energy use, but will also concern themselves
with reducing emissions of greenhouse gases.
The Executive Order also identifies specific tools that agencies can use to reach the goals
established by the order. Such tools include the use of alternative financing contracting
mechanisms, including Energy Savings Performance Contracts and utility energy-efficiency
service contracts; the use of ENERGY STAR® and other energy efficient products; the adoption
of facilities to meet ENERGY STAR® Building criteria for energy performance and indoor
environmental quality; the use of sustainable design principles when siting, designing, and
constructing new facilities; the use of leases that incorporate provisions that encourage energy
and water efficiency; and the use of off-grid generation systems, including solar hot water, solar
electric, solar outdoor lighting, small wind turbines, fuel cells, and other off-grid alternatives.
The Executive Order also increases public accountability by mandating the issuance of
agency scorecards that will identify those agencies that are meeting the goals of the order, and
those agencies that have fallen behind.
Finally, this Executive Order recognizes that many of the decisions that affect the
government's consumption of energy are made by individuals throughout the Federal
government - individuals who have competing responsibilities and mandates to meet. In order to
heighten their sensitivity to energy efficiency issue, this order established a mechanism for
recognizing those federal employees who demonstrate leadership in meeting the important goals
of this order.
Q.
Doesn't This Order Just Amount to a Slight (5%) Uptick in the Energy Efficiency Goal
Already Required by 12902?
A.
No. This order not only increases the energy efficiency gains that agencies must obtain by
200_, the order-also directs them to reduce their emissions of greenhouse gases within that same
time period. Moreover, we believe that it is important that the government continue to strive to
maintain its trend of increasing the energy-efficiency of its operations.
Q.
How Much Success Have You Had With the Previous Orders (like 12902)? Which
Agencies are Complying and Which Aren't?
A.
The Federal government's progress in meeting the goals established in Executive Order
12902 is mixed. While 6 major agencies are on track to meet the goals set out in the order,
several other agencies, including some of the largest consumers of energy (i.e., DOD, Postal
Service, Department of Veterans Affairs, and the General Services Administration) are not
currently making sufficient progress to meet the goal. We believe, however, that the tools
identified in the new order, and the increased level of importance attached to this issue will
enable all agencies to meet the goals in the new order.
Q.
Are you on track to meet the goals in 12902? If not, why are you proposing even
tougher goals? What makes you think you'll be able to meet them?
A.
Although certain agencies are not on track to meet the current goals, we believe that it is
important that the Federal government demonstrate leadership and commit to refocusing on
achieving this critical goal. We believe that the tools identified in the new order, and the
increased level of emphasis that agencies will place on achieving the goals of the new order will
enable all agencies to meet the goals in the new order.
Q.
Isn't a 30% reduction of greenhouse gases below 1990 levels unrealistic? How will
the government reduce by 30% when the rest of the country only has to do 7%, under
Kyoto?
A.
A 30 percent reduction in greenhouse gases below 1990 levels for the Federal
government is quite realistic. The government is already 14 percent below 1990 level because of
a combination of efficiency improvements and downsizing. We believe that further government
downsizing, combined with aggressive implementation of cost-effective efficiency improvement
measures will enable the government to meet its goal.
Q.
Isn't a 30% reduction goal for ghg a sham since you're going to get there anyway as
long as you meet the energy reduction goals already in 12902?
A.
???
Q.
What is OMB going to do in its oversight role that DOE hasn't done to assure compliance?
A.
By giving OMB the responsibility for overseeing agency compliance with the Executive
Order, we are elevating the goals and directions contained in the order to a higher level of
importance and visibility. We believe that this will make it easier for federal energy managers to
obtain the support within their agencies necessary to undertake energy-efficient projects.
Q.
Isn't this EO a paper tiger? Don't agencies have a "cost-effectiveness" out for most
everything you're asking them to do?
A.
Although agencies are not directed to implement measures that are not cost-effective, we
believe that there are numerous opportunities for energy efficient improvements throughout the
government that are also cost-effective. Further, the Executive Order identifies a suite of tools
that will allow agencies to undertake cost-effective measures that will also improve energy
efficiency. Even if agencies undertake only those measures that are cost-effective, we are
confident that the government can meet the goals set out in this order.
Q.
Isn't This Executive Order Going to Cost Agencies Money They Don't Have? Who
is Going to Finance the Higher Up-Front Costs for the Green Products You're Telling
Agencies to Buy?
A.
This Executive Order will not cost agencies money that they do not have. We believe
that the Federal government can meet the goals set out in this order by making cost effective
investments in energy efficient products and the adoption of cost effective management practices.
Some of the investments will be paid for by private energy management companies that
sign energy saving performance contracts with the Federal government. Private firms that enter
into such contracts will pay the cost of upgrades to efficient equipment and will be paid back
from the savings in energy costs over the lifetime of the equipment. We expect that agencies will
pay for other projects once they recognize the long-term benefit of making wise investments.
Q.
How Are Agencies Supposed to Afford Additional Renewable Energy When it Costs
More than Conventional Energy?
A.
Although customers currently pay a premium for renewable energy, the Federal
government believes that by increasing the demand for renewable energy, it can reduce the cost
so that it will be more affordable for all Americans.
Moreover, although power companies may currently charge more for renewable energy
than non-renewable energy, the overall costs of renewable energy may compare favorable with
non-renewables when the external costs of non-renewable energy are included in the overall
calculation. In other words, by purchasing renewable energy the government will be working to
reduce the level of power plant emissions, the level of power plant construction in our
communities, and the environmental harm caused by mining, drilling, and other methods by
which non-renewable energy sources are developed. Once all of these costs are considered, we
believe that the overall cost of renewable energy compares favorably with traditional non-
renewable energy.
Q.
What is the Point of the Agency Scorecards? Are They Going to Be Made Public?
A.
Agency scorecards will serve as a measure of compliance with the Executive Order.
They are also intended to highlight agency progressin meeting the order's goals.
By sharing its progress with the public, the Federal government will demonstrate
leadership in achieving economic savings and the reduction of greenhouse gas and other
emissions through the use of energy efficient equipment and practices throughout the economy.
DOD-Viron/Pepco Energy Saving Performance Contract
June 1999
In conjunction with the signing of a new Executive Order to promote energy efficiency, President
Clinton announced today the Pentagon's award of the Federal government's largest-ever Energy
Saving Performance Contract (ESPC), under which Viron Energy Services/Pepco Energy
Services (Viron/Pepco) will upgrade the energy performance of 837 Federal buildings at no
up-front cost to taxpayers. The 18-year service contract, covering five military installations in
each year
the Washington, DC area, will save over $150 million in energy costs, while reducing annual-
greenhouse gas emissions by an amount/equal to almost 24,000 metric tons of carbon (MTCE) -
equivalent of taking X [thousand] cars off the road.
Energy Saving Performance Contracts - Energy Savings at No Cost to Taxpayers
The new Executive Order directs Federal agencies to maximize their use of ESPCs -- innovative
financing mechanisms that mobilize private sector investment and expertise to save energy and
save money in Federal facilities. Under ESPC authority, Federal agencies hire private energy
service companies to conduct energy audits of facilities, propose energy saving retrofits, and
privately finance, install, and maintain retrofits. There are no up-front payments by the
government and contractors are paid from a share of the savings, with the remaining savings
accrue to the agency.
Real Savings and Real Environmental Benefits
The energy upgrades under the new contract will be done at five installations in the Army's
Military District of Washington - Ft. Belvoir, Ft. A.P. Hill, Ft. Meyer, Ft. McNair, and Ft. Meade.
These measures will save money and improve the environment. In particular, these measures will:
Avoid almost 24,000 MMTCE of greenhouse gas emissions annually - a 26% reduction;
Save taxpayers over $150 million in energy costs ($16 million annually OR $5 million
annually) a 17% savings; [viron/pepco - call me on this]
choose one
Reduce (annual) electricity use by 89 million kilowatt hours (kWh) of energy(annually;
Reduce fuel use by 294,000 million British Thermal Units (MMBTUs) annually; and,
Save over 50 million gallons of water annually.
Reduce pollutants that sing cause and acid rain by (150 ]metric tons annually
These improvements to buildings and equipment will support Army operations well into the next
century, without the need for additional funding, and will provide more comfortable living
conditions and improved quality of life for those who live and work at the five installations.
Energy Efficiency Measures to be Taken
Expected energy efficiency measures include:
Cooling system retrofits. Some 888 cooling units will be replaced or retrofitted, cutting energy
use in 343 buildings, reducing associated energy costs by over $1 million annually and annual
DOD-VIRON/PEPCO ENERGY SAVING PERFORMANCE CONTRACT
JUNE 1999
In conjunction with the signing of a new Executive Order to promote energy efficiency, President
Clinton announced today the Pentagon's award of the Federal government's largest-ever Energy
Saving Performance Contract (ESPC), under which Viron Energy Services/Pepco Energy
Services (Viron/Pepco) will upgrade the energy performance of 837 Federal buildings at no
up-front cost to taxpayers. The 18-year service contract, covering five military installations in
the Washington, DC area, will save over $150 million in energy costs, while reducing annual
greenhouse gas emissions by an amount equal to almost 24,000 metric tons of carbon (MTCE) -
equivalent of taking X [thousand] cars off the road.
Energy Saving Performance Contracts - Energy Savings at No Cost to Taxpayers
The new Executive Order directs Federal agencies to maximize their use of ESPCs -- innovative
financing mechanisms that mobilize private sector investment and expertise to save energy and
save money in Federal facilities. Under ESPC authority, Federal agencies hire private energy
service companies to conduct energy audits of facilities, propose energy saving retrofits, and
privately finance, install, and maintain retrofits. There are no up-front payments by the
government and contractors are paid from a share of the savings, with the remaining savings
accrue to the agency.
Real Savings and Real Environmental Benefits
The energy upgrades under the new contract will be done at five installations in the Army's
Military District of Washington - Ft. Belvoir, Ft. A.P. Hill, Ft. Meyer, Ft. McNair, and Ft. Meade.
These measures will save money and improve the environment. In particular, these measures will:
Avoid almost 24,000 MMTCE of greenhouse gas emissions annually - a 26% reduction;
Save taxpayers over $150 million in energy costs ($16 million annually OR $5 million
annually) a 17% savings; [viron/pepco - call me on this]
Reduce annual electricity use by 89 million kilowatt hours (kWh) of energy annually;
Reduce fuel use by 294,000 million British Thermal Units (MMBTUs) annually; and,
Save over 50 million gallons of water annually.
These improvements to buildings and equipment will support Army operations well into the next
century, without the need for additional funding, and will provide more comfortable living
conditions and improved quality of life for those who live and work at the five installations.
Energy Efficiency Measures to be Taken
Expected energy efficiency measures include:
Cooling system retrofits. Some 888 cooling units will be replaced or retrofitted, cutting
energy use in 343 buildings, reducing associated energy costs by over $1 million annually and
annual greenhouse gas emissions by 4,900 MTCE.
Air Handling Units. Replacement and retrofitting of air handling units in 126 buildings will
reduce annual energy consumption by 14 million kWh. This will mean annual savings of
$742,000 and 3,500 MCTE of greenhouse gas emissions avoided each year.
Lighting Retrofits or Replacement. Some 142,600 light fixtures will be replaced or
retrofitted in 714 buildings, reducing annual energy consumption by 29.8 million kWh, saving
$1.4 million annually, and reducing annual greenhouse gas emissions by 4,800 MTCE.
Central Heating Plant Upgrade. Two central steam plants will be replaced with new gas
fired boilers, reducing annual fuel use by 138,000 MMBTU, saving $655,000 annually, and
reducing annual greenhouse gas emissions by 2,900 MTCE.
Central Cooling Plant Upgrade. A new absorption chiller and chilled water distribution line
will be installed at one site, reducing annual electricity use by approximately 270,000 kWh and
saving $21,000 annually.
Water Conservation. Water consumption and waste water will be reduced in 213 buildings
through replacement existing plumbing equipment with ultra low-flow units, saving
approximately 50.5 million of gallons annually, or $195,000.
Administration Efforts to Expand ESPC Use
While ESPC authority has existed since 1992, President Clinton has taken significant steps to
streamline and promote greater use of this tool. Streamlined contracts - known as "Super
ESPCs" put in place by the DOE and DOD have accelerated large investments in energy
projects at [dozens? Hundreds?] of Federal facilities. Super ESPCs allow all agencies and
facilities to place delivery orders under an umbrella contracts, substantially reducing the lead time
to contract with an energy services company. There are two types of Super ESPCs: regional and
technology specific. Regional specific contracts cover a designated geographic area; technology
specific contracts are in effect nationwide for a particular emerging technology, such as solar
collectors.
In the last year, the Department of Energy has awarded almost $6 billion in ESPC contracting
authority to 44 private contractors to perform energy and cost saving work. Projects have been
designed and awarded that will mobilize $28.7 million of private investment to perform energy
saving work in Federal agencies. The contractors will be paid from the $62.5 million projected
savings. Well over a hundred agreements are currently under negotiation as this alternative
financing tool for energy and taxpayer savings becomes more commonly used by Federal
agencies. Other agreements are also under negotiation with utility contractors and under the
Department of Defense contracts which are also available for use by the rest of the Federal
government.
The DOD-Viron/Pepco ESPC is the largest by far of any ever awarded by the Federal government
and serves as a model for other agencies to replicate in implementing the President's new
Executive Order.
[It is estimated [BY WHOM?] that ESPCs can cut emissions by 2 million metric tons of
greenhouse gases and save taxpayers as much as $700 million a year.] [Unless there is
something very good, we should delete this sentence. Joan - I got this sentence from the
Buenos Aires fact sheet I put together on Federal energy, meaning someone at DOE cleared
on it - do you know where it's from?]
DOD's Partnership With Viron/Pepco
With the assistance of the Department of Energy's National Renewable Energy Lab, DOD sought
bids from private sector experts to provide solutions to the energy needs of the Military District of
Washington. DOD's Defense Energy Support Center chose Viron/Pepco to provide a range of
services including energy engineering, equipment installation, construction supervision, and
measurement and verification. Under the contract, all capital investments will be made within the
first three years of the contract and Viron/Pepco will be paid from a share of the verified energy
savings resulting directly from its conservation measures.
More than 2,800 buildings on the five installations were examined for possible energy
improvements. Under the contract, over 40 percent of the buildings currently in use will benefit
from one or more of the slated improvements and upgrades in the initial task order. The contract
is also structured so that either the government or Viron/Pepco can suggest additional
conservation measures for the remaining buildings.
John D. Glbson
06/02/99 09:53:10 AM
Record Type:
Record
To:
See the distribution list at the bottom of this message
cc:
Subject: new dod fact sheet
dodespc5.doc PLEASE READ ASAP -- we need clearance on this by noon. DoD -- Viron/Pepco: you
must go over each line carefully and sign off on the numbers. There are still a couple of question marks.
In particular, see numbers associated with specific ecms and the cost savings.
Message Sent To:
Todd Stern/WHO/EOP@EOP
[email protected] @ inet
Shelley N. Fidler/WHCCTF/EOP@EOP
Ronald Minsk/OPD/EOP@EOP
Martha L. Wofford/WHCCTF/EOP@EOP
Elliot J. Diringer/CEQ/EOP@EOP
Roger S. Ballentine/WHO/EOP@EOP
[email protected] @ inet
Michael L. Rodemeyer/OSTP/EOP@EOP
Joseph E. Aldy/CEA/EOP@EOP
[email protected] @ inet
[email protected] @ inet
"Blank, Bruce" <[email protected]> @ inet
"Murphy, Sharon" <[email protected]> @ inet
Laura J. Lewis/WHO/EOP@EOP
Paul D. Glastris/WHO/EOP@EOP
"Szuplat, Terry, CIV, OASD/PA" <[email protected]> @ inet
White House Climate Change Task Force
734 Jackson Place, N.W. Washington, DC 20503
FACSIMILE TRANSMISSION SHEET
To
Larry Trybus
From
Terry Sinua
John Gibson
Office
Date
Fax
Fax
395-2342
Number
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Office
Office
395-2310
Number
Number
Comments:
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6
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including this cover sheet.
IF TRANSMITTAL IS INCOMPLETE, PLEASE PHONE
White House Climate Change Task Force
734 Jackson Place, N.W. Washington, DC 20503
FACSIMILE TRANSMISSION SHEET
To
From
Office
Date
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Fax
395-2342
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Office
Office
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Comments:
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including this cover sheet.
IF TRANSMITTAL IS INCOMPLETE, PLEASE PHONE
FEDERAL LEADERSHIP ON CLIMATE CHANGE & ENERGY EFFICIENCY
JUNE 1999
President Clinton, in a Cabinet meeting today, issued an Executive Order to help meet the challenge
of global warming by dramatically improving energy efficiency in Federal buildings. By 2010, the
resulting energy savings will reduce annual greenhouse gas emissions by 2.4 million tons - the
equivalent of taking 1.7 million cars off the road - and save taxpayers over $1 billion a year. As an
example of the savings that can be achieved, the President also announced today a major contract to
retrofit 837 buildings at 5 military installations in the Washington, D.C. area, saving taxpayers over
$150 million in energy costs. [opening paragraph will be put in box]
Executive Order Sets Example For Nation
Aggressive Goals. The Federal Government is the nation's largest energy consumer with an annual
energy bill of over $8 billion. Actions to date have reduced energy consumption per square foot in
Federal buildings by 15% relative to 1985 levels. Today's order will extend this progress, requiring:
35% greater energy efficiency in Federal buildings relative to 1985 levels by 2010; and,
a 30% reduction in greenhouse gas emissions from buildings relative to 1990 levels by 2010 --
the first-ever Federal goal tied to greenhouse gas emissions.
Cutting-Edge Tools and Strategies. Today's Order directs agencies to make greater use of:
Energy Saving Performance Contracts (ESPCs) & Utility Contracts, in which contractors
are paid out of the savings resulting from energy improvements they propose and install. To date,
the Department of Energy (DOE) and the Department of Defense (DOD) have put in place over
$6 billion in ESPC contract authority (available for all agencies to use);
Life-cycle cost analysis, so agencies consider the real, long term cost of energy investments;
ENERGY STAR & other energy efficient products, everything from light bulbs to boilers;
Renewable energy technologies and sources (solar, wind, geothermal, and biomass).
Accountability. There will be close coordination among the Federal Energy Management Program,
the President's Management Council, OMB, and agencies in meeting the Order's requirement's.
Scorecards evaluating each agency's progress will be submitted annually to the President.
Examples of Real Progress
The partnership between DOD and Viron/Pepco Energy Services for building improvements is by far
the largest ESPC ever awarded. Other recent Federal actions of the type today's Order is designed
to foster and accelerate, include: [HOLD FOR INSERT - 4 bullets]
Aaa
Bbb
Ccc
Ddd
President Calls On Congress To Act
American businesses and homeowners can reap substantial by taking steps similar to the measures
called for in today's Executive Order. To spur this process, the President calls on Congress to enact
his proposed $3.6 billion package of tax incentives for consumers and businesses purchasing
energy efficient homes, appliances, cars, and energy from renewable sources.
Executive Order #XXXXX:
Greening the Government through Efficient Energy Management
DRAFT - May 28, 1999/ 2-4 pager
Saving Taxpayer Dollars while Improving the Environment
Executive Order #xxxxx continues President Clinton's drive to make the Federal government a
leader in addressing the challenge of global of climate change and managing energy use wisely.
Meeting the Order's aggressive energy efficiency goals will result in over $1 billion in annual
savings to taxpayers by 2010, expand markets for renewable technologies, reduce air pollution,
and reduce greenhouse gas emissions that contribute to global warming by an amount equal to 2.4
million metric tons of carbon - the equivalent of taking 1.7 million cars off the road.
Aggressive New Goals
The Federal government, working toward goals established under prior legislation and Executive
Orders, has already reduced its energy consumption per square foot in Federal buildings by over
15% from 1985 levels. However, tremendous energy and cost savings, as well as environmental
benefits, can still be achieved. Executive Order #xxxxx builds on the Federal government's
progress to date, extends current goals, and sets new goals for greenhouse gas reductions,
renewable energy use, and water conservation.
New Energy Efficiency Goal for Facilities
The Order requires each Federal agency to improve its energy efficiency in Federal
buildings by 35 percent relative to 1985 levels by 2010. (Current goal is 30 percent by
2005.)
New Energy Efficiency Goal for Industrial and Laboratory Facilities
The Order requires each Federal agency to improve its energy efficiency in industrial and
laboratory facilities by 25 percent by 2010. (Current goal is 20 percent by 2005.)
New Greenhouse Gas Reduction Goal
The Order requires each Federal agency to reduce greenhouse gas emissions that result
from building energy use by 30 percent relative to 1990 levels by 2010.
Expanded Use of Renewable Energy
The Order requires Federal agencies to expand their use of renewable energy technologies
and electricity from renewable energy sources, such as solar, wind, geothermal, and
biomass. Building on the President's commitment to 20,000 Federal solar energy systems
by 2010, the Order calls for new investments in renewable energy through applications of
solar, wind, geothermal, and biomass technologies at Federal facilities and through the
purchase of electricity from renewable energy sources.
Water Conservation
The Order calls for Federal agencies to improved their water efficiency, not only to reduce
water consumption, but also to reduce associated energy use. The Order requires the
Department of Energy to work with other Federal agencies to develop water consumption
baselines and then set appropriate goals for water conservation.
Fewer Exempt Facilities
Under current practice, a large number of facilities are exempt from meeting Federal
energy goals. Under this Order, all facilities are subject to these goals and requirements
unless they meet new exemption criteria to be developed by the Department of Energy. In
addition, in their Annual Report to the President, each agency must report all exempt
facilities and explain the rationale for excluding them from Federal energy goals.
Cutting-Edge Tools and Strategies
The Order calls for agencies to use a wide range of energy management tools and strategies to
fulfill the new energy efficiency, renewable energy, and greenhouse gas reduction goals.
Life-Cycle Cost Analysis
It is critical that Federal agencies recognize the importance of considering the full cost of
their investments, including energy, operation and maintenance costs, not simply the
purchase cost of projects or products. To date, agencies have generally only invested in
projects that pay for themselves within 10 years. But, if a piece of equipment has a
general working life of 25 years, then the costs over its full life must be taken into account
when making investment decisions. By taking all costs into account, agencies can save
money and energy. To that end, the Order requires agencies to consider life-cycle costs -
that is, investment costs, capital costs, installation costs, energy costs, operating costs,
maintenance costs, and disposal costs, over the life of the project or product.
Alternative Financing
Financing options, like Energy Savings Performance Contracts (ESPCs) and utility energy
efficiency service contracts, offer Federal agencies a powerful tool for leveraging private
sector financing to fund cost-saving energy improvements at no net cost to taxpayers.
Under ESPCs, private sector energy service companies finance the up-front cost of
purchasing and installing new energy efficient equipment. The Federal government uses a
portion of the savings it accrues through reduced energy bills to repay the energy service
company over the life of the contract. Contractors then receive a predetermined share of
the value of the energy savings generated by their efforts, and may be paid only if actual
savings result from the reduced energy use. All additional savings accrue to the
government. The government benefits from new equipment, reduced energy costs,
improved energy efficiency, reduced greenhouse gas emissions, and conservation of
nonrenewable fuels.
To date, the Department of Energy and Department of Defense have put into place over
$6 billion in ESPC contract authority -- available for all Federal agencies to fund energy
improvements. In addition, many of these contracts are "Super ESPCs" which rely on the
same principals as regular ESPCs but offer an umbrella contract to allow expedited
service. The Order calls for agencies to maximize their use of ESPCs and utility energy
efficiency service contracts to realize energy and cost savings.
Highly Efficient Energy Systems
This Order calls for agencies to make greater use of highly efficient energy systems,
including combined heat and power systems that use "waste" heat from industrial
processes to supply power to other needs. These types of systems can offer not only
tremendous energy and cost savings, but also significant environmental benefits.
Off-Grid Electricity Generation
This Order requires agencies to consider off-grid electricity opportunities that often
provide energy and environmental benefits, while allowing agencies to avoid the costs of
build new transmission lines or digging up existing lines. Off-grid options can be
particularly effective in remote locations, including in our National Parks. The systems
range from solar outdoor lighting to small wind turbines and fuel cells.
Sustainable Building Design
In July 1998 as part of the President's radio address on Federal energy issues, a number of
Federal agencies committed to constructing sustainably-designed buildings. This Order
requires all Federal agencies to apply sustainable design principles to the siting, design,
and construction of new facilities and thereby save energy, save taxpayer dollars, and
reduce pollution.
ENERGY STAR® and Other Energy Efficient Products
The Order calls for agencies to purchase ENERGY STAR® and other energy efficient
products. These products, ranging from compact fluorescent light bulbs to highly efficient
boilers, can save Federal agencies millions of dollars???.
Electricity from Renewable Energy and Energy Efficient Sources
Given that over 50????? percent of the Federal government's energy costs in buildings
comes from electricity, the Order requires agencies to consider the source of their
electricity and opt for cleaner, more efficient electricity generation. Specifically, the Order
calls for agencies to minimize the greenhouse gas intensity of purchased electricity. In
addition, agencies must adopt policies to increase the use of electricity from renewable
energy sources.
Greater Agency Accountability
The Order provides a framework to hold agencies accountable for their progress in Federal
energy management. The following new management strategies and reporting requirements will
help ensure that all Federal agencies manage energy use wisely and reap great benefits for the
economy and the environment for years to come.
Annual Reports to the President and Annual Score Cards
Under the Order, each Federal agency must submit an Annual Report to the President to
describe its progress in meeting the goals of this Order. In addition, the Deputy Director
for Management of the Office of Management Budget will evaluate each agency's
performance and submit agency score cards to the President. The score card evaluations
will consider agencies' progress toward the energy efficiency, renewable energy, and
greenhouse gas goals. The score cards will also take into account how effectively
agencies have used key energy management tools and strategies.
President's Management Council
The President's Management Council, which generally consists of Deputy Secretaries
from all agencies, will monitor agencies' progress on Federal energy management and
provide a high-level forum for identifying ways to accelerate improvements.
Agency Energy Teams
Each agency must form a technical energy support team within 90 days to ensure that
energy management strategies are implemented across all facilities. These energy teams
will bring together legal, procurement, and other essential agency representatives to
expedite activities that will lead to energy and cost savings.
Funding for Energy Management Activities
While smart energy management will lead to taxpayer savings in the long run, initial
agency investments are needed in order to implement energy savings performance
contracts and purchase energy efficient equipment among other cost-savings activities.
Therefore, the Order calls for agencies to consider the full range of their energy
management responsibilities and include these costs in their budget requests.
New Public/Private Advisory Committee
The Order calls for the Department of Energy to organize an advisory committee to bring
together private and public sector experts who can advise agencies on how to improve
their energy management practices. The Committee will include representatives from
energy service companies, utility companies, equipment manufacturers, and other private,
non-profit, and public sector organizations that focus on energy issues.
[email protected].
05/28/99 05:25:11 PM
Record Type:
Record
To:
John D. Gibson/WHCCTF/EOP
cc:
Subject: ESPC Material
In the last year, the Department of Energy has awarded almost $6 billion in
contracting authority to 44 private contractors to perform energy and cost
saving work. In a 12 month period, projects have been designed and awarded
that will utilize $28.7 million of private investment to perform energy saving
work in Federal agencies. The contractors will be paid from the $62.5 million
projected savings. Well over a hundred agreements are currenly under
negotitation as this alternative financing tool for energy and taxpayer savings
becomes more commonly used by Federal agencies. Other agreements are also
under negotitation with utility contractors and under the Department of Defense
contracts which are also available for use by the rest of the Federal government
What is an Energy Savings Performance Contract (ESPC)?
ESPC is a financing mechanism in which a private sector energy service company finances the
up-front cost of purchasing and installing new energy efficient equipment. The Federal
government uses a portion of the savings it accrues through reduced energy bills to repay the
energy service company over the life of the contract. Using private capital, the contractors
design, purchase, install and maintain energy efficiency improvement projects at the facility.
Contractors then receive a predetermined share of the value of the energy savings generated by
their efforts, and may be paid only if actual savings result from the reduced energy use. All
additional savings accrue to the government. The government benefits from new equipment,
reduced energy costs, improved energy efficiency, reduced greenhouse gas emissions, and
conservation of nonrenewable fuels.
Describe how the contracting authority is awarded.
DOE and DOD put regional contracts in place whereby energy service companies (ESCOs) are
pre-selected to deliver energy services. A Federal agency requiring energy services will develop
site-specific requirements and a delivery order using Super ESPC guidelines. All Federal agencies
that have government-owned facilities can use the ESPC vehicle. Agencies may select one ESCO
or request proposals from more than one ESCO without advertising the procurement. Given the
umbrella ESPCs and the streamlined process, demands on agency resources to develop and award
contracts should be greatly reduced and energy savings should be realized more quickly.
Describe the competitive process.
The process for selecting and awarding the Super ESPC contracts is competitive. Energy service
companies are given an opportunity to access the federal government energy market using
conventional procurement practices for announcing, negotiating and awarding the work. Awards
were made to multiple contractors for each of the regional Super ESPCs entered into to date.
List existing and planned authority.
Planned contracting authority through ESPCs -- including DOE regional contracts, technology
specific contracts, and DOD contracts -- totals over $9 billion. This amounts to $7.7 billion in
general ESPCs and $1.32 billion in technology-specific ESPCs.
The total contract authority of DOD ESPC contracts is $3.2 billion. The total contract authority
of DOE's regional contracts is $4.5 billion. Finally, the total contract authority of
technology-specific ESPCs is $1.32 billion.
To date, DOE has awarded four regional contracts -- with a total of $3 billion in contract
authority. The Western Region Super ESPC was awarded in May 1997 and the Southeastern
Region Super ESPC was awarded in January 1998. This month, DOE awarded the Central and
Midwest Regional Super ESPCs. Two additional contracts -- providing another $1.5
billion in contract authority -- will be awarded in the Northeast and Mid-Atlantic regions
by the end of this year.
The DOD/Army Super Regional ESPCs awarded, in a 4-state region, seven contracts in January
1997; the 46-state Super Regional ESPC awarded eleven contracts in August 1997. Together
they provide authority for $2 billion of contractor investment. In June 1998, the DOD/Navy
Caribbean Regional ESPC awarded a single ESPC contract providing authority for $22 million.
DOE plans to award two more regional contracts, valued at $1.5 billion. The DOD/Air Force
plans to award six regional ESPCs providing authority for $1.2 billion of investment in October
1998.
The six regional DOE awards plus the DOD regional awards that will be issued by
October 1998 represent about $7.7 billion of contracts with the private sector.
NOTE: For the DOE part: $4.5 billion means that half (2.25) goes toward investment. Savings
amount to 4 times the investment level(2.25) - therefore, 9 billion in savings. Half of that savings
goes to the contractor; half remains with the feds. So, $4.5 billion results in $9 billion in savings,
$4.5 of which is saved by the taxpayers.
Will it all be awarded by end of 1998?
All of the DOD and DOE regional Super ESPCs will be awarded by the end of the 1998 calendar
year. These contracts total $7.7 billion in contracting authority.
In addition, the technology specific Super ESPCs, which value over $1.3 billion, will be awarded
over the next few years. Some of these contracts have already been awarded. Almost $500
million of this contract authority will be used to finance renewable energy projects.
What is the contracting authority?
All federal agencies that have government-owned facilities have the authority to enter into ESPCs
by virtue of the authorizing legislation: P.L. 102-486, Energy Policy Act of 1992, Codified as 42
USC 8287 of NECPA for civilian agencies. DOD authorizing language is found in 10 USC 2865,
Energy Savings at Military Installations.
Does every agency and then every facility need to engage in a competitive process to choose
a contractor?
Under the Super ESPCs, agencies select contractors through a more streamlined process, given
that a smaller number of qualified suppliers and providers have already been chosen through a
competitive process. Agencies take into account the specific projects needed and can use
commercial style procedures to compare and select among qualified suppliers.
How can DOE and DOD offer a program to all other federal agencies?
The Department of Defense (DOD) and the Department of Energy (DOE) have
streamlined the contracting process by putting in place regional ESPC multiple award
contracts, that are available for use to all executive agencies and the Architect of the
Capitol. All other Congressional agencies and Judicial agencies currently do not have
the authority to enter into ESPCs such as the Government Printing Office.
Why has the program been slow to deliver?
Previously, energy conservation projects were implemented primarily through direct
appropriations. The process of implementing the same projects through ESPCs and third party
financing is relatively new and completely different.
Management and contracting, technical, legal, and financial staff must understand and familiarize
themselves with the process to carry out a successful project. DOE has provided a solution by
developing the Super ESPC vehicle that any Federal agency can use. DOE is offering workshops
that teach agencies how to use the Super ESPCs. DOE also provides technical, legal, and
contracting assistance and expertise on a reimbursable basis.
How many projects have been completed?
Since the late eighties, 61 energy savings performance contracts have been awarded. These
projects were carried out using the conventional contracting approach where each facility
undertook its own contracting.
How many projects are in the pipeline?
Thirteen projects -- that were specifically included as part of the requests for proposals for the
regional ESPCs sites -- are in the pipeline. In addition, under the Western region Super ESPC
alone, which was the first regional ESPC awarded, there are more than 60 projects under
development. The demand for projects is even greater in other regions. Although the new Super
ESPCs have only recently been awarded, demand for services is impressive and already exceeds
the number of projects implemented under conventional ESPCs since the late eighties.
Why did we pick $7.7 billion?
DOE and DOD analyzed the need for energy efficiency and renewable energy projects across all
Federal facilities. This analysis also considered the potential for funding projects through utility
contracts and appropriations. Based on this analysis, DOE and DOD calculated that $7.7 billion
in ESPC authority would be necessary for Federal agencies to reach the Federal goal of a 30
percent reduction in energy use per square foot by 2005, relative to 1985 levels.
How do we know we'll spend $7.7 billion by 2005 given our past record?
The Federal government is instituting an aggressive approach to accelerate the use of these
contracts. OMB's guidance, along with the Presidential directive, encourage agencies to actively
use the ESPCs to generate energy and cost savings at their facilities. With active agency
participation, the Federal government can implement energy improvements and use the full $7.7
billion in contract authority. As demonstrated in just the past year, Federal agencies are interested
in using the Super ESPCs to cut their costs, improve their facilities, and cut emissions. We are
fully committed to training energy and procurement managers and working at all levels of the
Federal government to make these savings a reality.
What are Super ESPCs and how did they come to be?
In order to expedite the contracting process, DOE began a process of putting regional contracts
in place that all agencies can use. These contracts, known as Super Energy Saver Performance
Contracts, allow all agencies and facilities to place delivery orders under the umbrella
contracts in order to undertake individual energy improvement projects. Super ESPCs
are similar to conventional ESPCs and use the same general contract terms and
provisions. Agencies can use Super ESPCs to purchase equipment, products, and
services that increase energy efficiency and solve environmental problems. Like
conventional ESPCs, acquiring private-sector funding is a primary feature of the Super
ESPC.
Super ESPCs differ from conventional ESPCs in two fundamental ways. First, a Super
ESPC covers a large geographic territory; a conventional ESPC is used for a specific
site. Second, Super ESPCs substantially reduce the lead time to contract with an
ESCO for energy services.
DOE has two types of Super ESPCs: regional and technology specific. Regional Super ESPCs
are designated for a certain geographic region. Technology specific Super ESPCs typically cover
the entire nation and emphasize a particular emerging technology such as solar collectors.
What does Congress have to authorize?
Current ESPC authority expires April 10, 2000. In order to continue ESPC activities, Congress
needs to extend the ESPC authority. Congress should expand ESPC authority to include water
conservation, mobility, leased federal buildings, non-federal facilities and state and local
government facilities.
How does an agency use the contracting authority?
DOD is working with its installations in the Army and Air Force to notify them of the existing and
planned authority and assist them in carrying out projects under these contracts. DOE is
informing all agencies of the new contract authority through its DOE regional support offices and
other outreach vehicles. DOE's contractors in the field are also approaching agencies to advise
them of the opportunities now available through the Super ESPCs.
Interested Federal agencies can make use of the ESPC authority by placing delivery orders that
allow the pre-selected energy service companies to carry out specific energy improvements. DOE
and DOD are working with agencies to provide them with information packages and assist them
in evaluating offers, negotiating the terms and conditions of orders, and managing the projects.
Agencies have to notify Congress if an individual project will exceed $750,000.
How will the President's announcement and OMB guidance speed up the program to this
dramatic extent.
The President's announcement and directive will highlight the Federal government's responsibility
to use energy resources wisely, cut greenhouse gas emissions, and set an example for the nation.
The OMB guidance, along with the Presidential directive, direct agencies to use ESPCs more
widely in achieving energy savings. In particular, the President's directive requests that agencies
outline their plans for using ESPCs and accomplishing the Federal goal of reducing energy
consumption 30 percent below the 1985 levels. The directive and guidance will help in
encouraging agencies to attend to this important concern and be accountable for their
involvement.
Provide a listing of current projects and those in the pipeline.
See attached.
Benefits of OMB Guidance
Agencies look to OMB as the lead authority for management and contracting policy matters.
OMB's guidance on the use of ESPCs will help clarify at all levels how to use this contracting
mechanism. OMB's efforts to simplify budgetary accounting principles with regard to agency
accounting for ESPCs will provide enormous benefits to agencies and increase their use of
ESPCs.
Executive Order #XXXXX:
Greening the Government through Efficient Energy Management
DRAFT - May 28, 1999/ 2-4 pager
Saving Taxpayer Dollars while Improving the Environment
Executive Order #xxxxx continues President Clinton's drive to make the Federal government a
leader in addressing the challenge of global of climate change and managing energy use wisely.
The Federal Government spends $8 billion on energy costs each year -- with over $4 billion for
energy expenses in its 500,000 buildings. Meeting the Order's aggressive energy efficiency goals
will result in over $1 billion in annual savings to taxpayers by 2010, expand markets for renewable
technologies, reduce air pollution, and reduce greenhouse gas emissions that contribute to global
warming by an amount equal to 2.4 million metric tons of carbon - the equivalent of taking 1.7
million cars off the road.
Aggressive New Goals
The Federal government, working toward goals established under prior legislation and Executive
Orders, has already reduced its energy consumption per square foot in Federal buildings by over
15% from 1985 levels. However, tremendous energy and cost savings, as well as environmental
benefits, can still be achieved. Executive Order #xxxxx builds on the Federal government's
progress to date, extends current goals, and sets new goals for greenhouse gas reductions,
renewable energy use, and water conservation.
New Energy Efficiency Goal for Facilities
The Order requires each Federal agency to improve its energy efficiency in Federal
buildings by 35 percent relative to 1985 levels by 2010. (Current goal is 30 percent by
2005.)
New Energy Efficiency Goal for Industrial and Laboratory Facilities
The Order requires each Federal agency to improve its energy efficiency in industrial and
laboratory facilities by 25 percent by 2010. (Current goal is 20 percent by 2005.)
New Greenhouse Gas Reduction Goal
The Order requires each Federal agency to reduce greenhouse gas emissions that result
from building energy use by 30 percent relative to 1990 levels by 2010.
Expanded Use of Renewable Energy
The Order requires Federal agencies to expand their use of renewable energy technologies
and electricity from renewable energy sources, such as solar, wind, geothermal, and
biomass. Building on the President's commitment to 20,000 Federal solar energy systems
by 2010, the Order calls for new investments in renewable energy through applications of
solar, wind, geothermal, and biomass technologies at Federal facilities and through the
purchase of electricity from renewable energy sources.
Water Conservation
The Order calls for Federal agencies to improve their water efficiency, not only to reduce
water consumption, but also to reduce associated energy use. The Order requires the
Department of Energy to work with other Federal agencies to develop water consumption
baselines and then set appropriate goals for water conservation.
Fewer Exempt Facilities
Under current practice, a large number of facilities are exempt from meeting Federal
energy goals. Under this Order, all facilities are subject to these goals and requirements
unless they meet new exemption criteria to be developed by the Department of Energy. In
addition, in their Annual Report to the President, each agency must report all exempt
facilities and explain the rationale for excluding them from Federal energy goals.
Cutting-Edge Tools and Strategies
The Order calls for agencies to use a wide range of energy management tools and strategies to
fulfill the new energy efficiency, renewable energy, and greenhouse gas reduction goals.
Life-Cycle Cost Analysis
It is critical that Federal agencies recognize the importance of considering the full cost of
their investments, including energy, operation and maintenance costs, not simply the
purchase cost of projects or products. To date, agencies have generally only invested in
projects that pay for themselves within 10 years. But, if a piece of equipment has a
general working life of 25 years, then the costs over its full life must be taken into account
when making investment decisions. By taking all costs into account, agencies can save
money and energy. To that end, the Order requires agencies to consider life-cycle costs -
that is, investment costs, capital costs, installation costs, energy costs, operating costs,
maintenance costs, and disposal costs, over the life of the project or product.
Alternative Financing
Financing options, like Energy Savings Performance Contracts (ESPCs) and utility energy
efficiency service contracts, offer Federal agencies a powerful tool for leveraging private
sector financing to fund cost-saving energy improvements at no net cost to taxpayers.
Under ESPCs, private sector energy service companies finance the up-front cost of
purchasing and installing new energy efficient equipment. The Federal government uses a
portion of the savings it accrues through reduced energy bills to repay the energy service
company over the life of the contract. Contractors then receive a predetermined share of
the value of the energy savings generated by their efforts, and may be paid only if actual
savings result from the reduced energy use. All additional savings accrue to the
government. The government benefits from new equipment, reduced energy costs,
improved energy efficiency, reduced greenhouse gas emissions, and conservation of
nonrenewable fuels.
To date, the Department of Energy and Department of Defense have put into place over
$6 billion in ESPC contract authority -- available for all Federal agencies to fund energy
improvements through expedited contracts with energy service companies. The Order
calls for agencies to maximize their use of ESPCs and utility energy efficiency service
contracts to realize energy and cost savings.
Highly Efficient Energy Systems
This Order calls for agencies to make greater use of highly efficient energy systems,
including combined heat and power systems that use "waste" heat from industrial
processes to supply power to other needs. These types of systems can offer not only
tremendous energy and cost savings, but also significant environmental benefits.
Off-Grid Electricity Generation
This Order requires agencies to consider off-grid electricity opportunities that often
provide energy and environmental benefits, while allowing agencies to avoid the costs of
build new transmission lines or digging up existing lines. Off-grid options, which range
from solar outdoor lighting to small wind turbines and fuel cells, can be particularly
effective in remote locations. The National Parks Service and the Department of Energy
recently launched the "Green Energy Parks" initiative to expand the use of energy efficient
and renewable energy systems, including off-grid generation systems, at the National
Parks and thereby reduce costs and pollution.
Sustainable Building Design
In July 1998 as part of the President's radio address on Federal energy issues, a number of
Federal agencies committed to constructing sustainably-designed buildings. This Order
requires all Federal agencies to apply sustainable design principles to the siting, design,
and construction of new facilities and thereby save energy, save taxpayer dollars, and
reduce pollution.
ENERGY STAR and Other Energy Efficient Products
The Order calls for agencies to purchase ENERGY STAR and other energy efficient
products. These products, ranging from compact fluorescent light bulbs to highly efficient
boilers, can save Federal agencies millions of dollars???.
Electricity from Renewable Energy and Energy Efficient Sources
Given that over 50????? percent of the Federal government's energy costs in buildings
comes from electricity, the Order requires agencies to consider the source of their
electricity and opt for cleaner, more efficient electricity generation. Specifically, the Order
calls for agencies to minimize the greenhouse gas intensity of purchased electricity. In
addition, agencies must adopt policies and pursue projects to increase the use of electricity
from renewable energy sources.
Greater Agency Accountability
The Order provides a framework to hold agencies accountable for their progress in Federal
energy management. The following new management strategies and reporting requirements will
help ensure that all Federal agencies manage energy use wisely and reap great benefits for the
economy and the environment for years to come.
Annual Reports to the President and Annual Score Cards
Under the Order, each Federal agency must submit an Annual Report to the President to
describe its progress in meeting the goals of this Order. In addition, the Deputy Director
for Management of the Office of Management Budget will evaluate each agency's
performance and submit agency score cards to the President. The score card evaluations
will consider agencies' progress toward the energy efficiency, renewable energy, and
greenhouse gas goals. The score cards will also take into account how effectively
agencies have used key energy management tools and strategies.
President's Management Council
The President's Management Council, which generally consists of Deputy Secretaries
from all agencies, will monitor agencies' progress on Federal energy management and
provide a high-level forum for identifying ways to accelerate improvements.
Agency Energy Teams
Each agency must form a technical energy support team within 90 days to ensure that
energy management strategies are implemented across all facilities. These energy teams
will bring together legal, procurement, and other essential agency representatives to
expedite activities that will lead to energy and cost savings.
Funding for Energy Management Activities
While smart energy management will lead to taxpayer savings in the long run, initial
agency investments are needed in order to implement energy savings performance
contracts and purchase energy efficient equipment among other cost-savings activities.
Therefore, the Order calls for agencies to consider the full range of their energy
management responsibilities and include these costs in their budget requests.
New Public/Private Advisory Committee
The Order directs for the Department of Energy to organize an advisory committee to
bring together private and public sector experts who can advise agencies on how to
improve their energy management practices. The Committee will include representatives
from energy service companies, utility companies, equipment manufacturers, and other
private, non-profit, and public sector organizations that focus on energy issues.
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9175 Guilford Road
Suite 216
Columbia Maryland 21046
Phone: 410-792-9777 Fax: 410-792-9445
Viron Energy Services
Fax
To: JOHN GiBSON
From: LARRY TRYBUS
Fax: 202-395-2342
Pages: 2
Phone:
Date: 6/1/99
Re:
CC:
Urgent
For Review
Please Comment
Please Reply
Please Recycle
Comments:
D will call with explanation of the
increase to $219 mm in savings
2nd Fat
3rd Fax - changes to ESPC
press release.
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DOD Awards Energy Saving Performance Contract
To VIRON/ PEPCO ENERGY SERVICES
JUNE 1999
In conjunction with the issuance of the Executive Order #xxxxx, the Department of Defense
(DOD) is awarding an Energy Saving Performance Contract (ESPC) to Viron Energy
/Annual
Services/Pepco Energy Services (Viron/Pepco) for building improvements throughout the U.S.
Army's Military District of Washington (MDW).
$15.945
Viron Energy Services is a subsidiary of York International Corporation (NYSE:YRK). York.
PA. and Pepco Energy Services is a subsidiary of Potomac Electric Power Co. (NYSE: POM).
Washington, DC.
21988
This contract will result in over $219 million in MDW cost savings to taxpayers - making it the
largest ESPC ever executed by a Federal agency. Over the 18 year life of the contract, it will
69
also reduce emissions of greenhouse gases that contribute to global warming by an annual
amount equal to [86,000] metric tons of carbon dioxide (MTCE) - the equivalent of taking X
million cars off the road.
150
ESPCs - Energy Savings at No Cost to Taxpayers
Executive Order #xxxxx directs Federal agencies to make greater use of ESPCs, which are
219,889
innovative financing mechanisms that leverage private sector investment and expertise to
accomplish energy and cost-saving projects in Federal facilities at no net cost to taxpayers.
68,
466
Under ESPC authority, Federal agencies contract with private energy service companies to audit
facilities, propose energy saving retrofits, and privately finance, install, and maintain retrofits.
There are no up-front payments by the government and contractors are paid from a share of the
over 150
savings, with the remaining savings returned to the taxpayers and the agency.
DOD's Partnership With Viron/Pepco
The partnership between DOD and Viron/Pepco came about through the efforts of the Defense
Logistics Agency's Defense Energy Support Center (DESC), the MDW, and its five installations
in the Washington, DC area - Ft. Belvoir, Ft. A.P. Hill, Ft. Meyer, Ft. McNair, and Ft. Meade.
Drawing on the expertise of the Department of Energy's (DOE) Energy's National Renewable
Energy Laboratory (NREL), DESC issued a commercial solicitation which encouraged private
sector experts to provide installation-wide optimum solutions to the MDW's energy needs.
Using "best value" buying techniques, DESC determined that Viron/Pepco's bid provided the
greatest overall benefits to the Government in the areas of energy engineering, equipment
installation, construction supervision, and measurement and verification. Viron, a recognized
national energy services company is teamed with Pepco Energy Services, a utility owned
regional energy services company to undertake this ESPC partnership with DOD. Under the
contract, all capital investments will be made within the first three years of the contract and
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Viron/Pepco will be paid from a share of the verified energy savings resulting directly from its
conservation measures.
Real Savings and Real Environmental Benefits
More than 2,800 buildings on the five installations were examined for possible energy
improvements. Under the contract, over 40 percent of the buildings currently in use will benefit
from one or more of the slated improvements and upgrades in the initial task order. The contract
is also structured so that either the government or Viron/Pepco can suggest additional
conservation measures for the remaining buildings. Highlights of work to be performed
include(S omit) retrofits of:
142,600 lighting fixtures;
888 cooling systems;
5 central cooling and heating systems; and,
Over 10,000 [sensors] providing inputs for over 430 energy management control systems.
These improvements to buildings and equipment will support Army operations well into the next
century (without the need for additional funding) and will provide more comfortable living
conditions and improved quality of life for those who live and work at the five installations.
They will also, of course, result in significant fiscal and environmental benefits, including:
86,000 MTCE of greenhouse gas emissions avoided annually a 26% reduction;
Over $100 million in energy savings for taxpayers (over $5.5 million annually or 17%);
Over 50 million gallons of water will be saved annually;
89 million kilowatt hours (kWh) of energy we be saved annually; and,
Over 599,000 MMBTUs will be saved annually.
Energy Conservation Measures to be Taken
Fuller descriptions of some of the more prominent (specific omit) energy conservation measures
are provided below.
Cooling System Retrofits. A total of 888 cooling units will be replaced or retrofitted, cutting
energy use in 343 buildings and reducing associated energy costs by over $1 million annually.
Air Handling Units. Replacement and retrofitting of air handling units in 126 buildings will
reduce energy consumption by 14 million kWh. This will mean annual savings $742,000 and
3,300 MCTE of greenhouse gas emissions avoided each year.
Lighting Retrofits or Replacement. Some 142,600 light fixtures will be replaced or
retrofitted in 714 buildings, reducing energy consumption by 29.8 million kWh. saving $1.4
million annually, and reducing greenhouse gas emissions by [17,800] MTCE. [Not clear
which numbers are annual and which are not.]
Water Conservation. Water consumption and waste water will be reduced in 213 buildings
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through replacement existing plumbing equipment with ultra low-flow units, saving
approximately 50.5 million of gallons annually, or $195,000.
Central Heating Plant Upgrade. Two central steam plants will be replaced with new gas
fired boilers, avoiding fuel use of 138,000 MMBTU and saving $655,000 annually.
Central Cooling Plant Upgrade. A new absorption chiller and chilled water distribution line
will be installed at one site, saving approximately 270,000 kWh and $21,000 annually.
Administration Efforts to Expand ESPC Use
While ESPC authority has existed since [1992], President Clinton has taken significant steps to
streamline and promote greater use of this tool. Streamlined contracts put in place by the DOE
and DOD have already accelerated large investments in energy projects at many Federal
facilities. In July 1998, DOE announced $1.5 billion in new ESPC contract authority, bringing
to $5 billion the total amount of ESPC authority currently available to Federal agencies. Last
year the President directed Federal agencies to develop proposals on ways in which ESPC
authority can be expanded, and Congress voted to renew existing ESPC authority through 2002.
[more complete ESPC information to be provided by Joan G.]
It is estimated that ESPCs can cut emissions by 2 MMTCE and save taxpayers as much as $700
million a year. In addition to the DOD-Viron/Pepco contract, other significant ESPCs
announced by the Federal government over the past year include: [waiting for material to be
inserted].
About Viron Energy Services
Based in Kansas City, MO. Viron Energy Services is an engineering-based energy services
company specializing in energy performance contracting and turnkey energy retrofit services.
Viron is also a DOD 46 State Super ESPC awardee. Viron is an independently operated, wholly
owned subsidiary of York International, the largest independent supplier of HVAC&R
equipment in the U.S. and a leading competitor internationally.
About Pepco Energy Services
Pepco Energy Services, the unregulated subsidiary of Potomac Electric Power Company (Pepco).
was founded in 1995 to provide comprehensive energy solutions for large energy users
throughout the Mid-Atlantic region. Pepco Energy Services offers cost savings through design.
installation, and financing of energy efficiency projects: competitively priced electric and natural
gas: operations and maintenance services; and energy information services. Customers include
government agencies, property management firms, hospitals. universities and other large energy
users.
DOD-VIRON/PEPCO ENERGY SAVING PERFORMANCE CONTRACT
PC amounted the
JUNE 1999
800
In conjunction with the President signing of a new Executive Order to promote energy
efficiency, the Pentagon'is today announcing award the Federal government's largest-ever Energy
Saving Performance Contract (ESPC), under which Viron Energy Services/Pepco Energy
Services (Viron/Pepco) will upgrade the energy performance of over 1000 Federal buildings at no
up-from cost to taxpayers. The 18-year service contract, covering five military installations in the
Washington, DC area, will save over $150 million in energy costs, while reducing greenhouse gas
emissions by an amount equal to 24,000 metric tons of carbon - equivalent of taking X
[thousand] cars off the road.
almost
tax payers
Energy Saving Performance Contracts - Energy Savings at No Cost to Taxpayers
mobilize
The new Executive Order directs Federal agencies to maximize their use of ESPCs innovative
financing mechanisms that use private sector investment and expertise to save energy and save
money in Federal facilities. Under ESPC authority, Federal agencies hire private energy service
companies to audit facilities, propose energy saving retrofits, and privately finance, install, and
maintain retrofits. There are no up-front payments by the government and contractors are paid
from a share of the savings, with the remaining savings returned to [the taxpayers and] the
agency.
conduct energy
accive to
of
Real Savings and Real Environmental Benefits
The energy upgrades under the new contract will be done at five installations in the Army's
Military District of Washington - Ft. Belvoir, Ft. A.P. Hill, Ft. Meyer, Ft. McNair, and Ft. Meade.
These measures will save money and improve the environment. In particular, these measures will:
Avoid 86,000 23,891 metric tons of greenhouse gas emissions annually - a 26% reduction;
150
Save [taxpayers] over $100 million in energy savings ($5.5 million annually) a 17% savings;
Save over 50 million gallons of water annually;
costs
over
Save 89 million kilowatt hours (kWh) of energy annually;
the
18
year
Save over 599,000 million [MBTUs] annually.
a
Reduce heating fuel use by 294 million BT Us annually
15.945
17%
These improvements to buildings and equipment will support Army operations well into the next
savings
Red
century, without the need for additional funding, and will provide more comfortable living
and
conditions and improved quality of life for those who live and work at the five installations.
electricity
Energy Efficiency Measures to be Taken
Expected energy efficiency measures include:
use
by
Cooling system retrofits. Some [888] cooling units will be replaced or retrofitted, cutting
energy use in 343 buildings and reducing associated energy costs by over $1 million annually.
and ref
am. gLi
en.by 4900 MICE
Air Handling Cannual Units. Replacement and retrofitting of air handling units in 26/buildings will
reduce(energy consumption by 14 million kWh. This will mean annual savings $742,000 and
3,300 MCTE of greenhouse gas emissions avoided each year.
5
annual
Lighting Retrofits or Replacement. Some 142,600 light fixtures will be replaced or
retrofitted in 714 buildings, reducing energy consumption by 29.8 million kWh, saving $1.4
million annually, and reducing greenhouse gas emissions by [17,800] MTCE. [Not clear which
numbers are annual and which are not.]
annual
4,800
Water Conservation. Water consumption and waste water will be reduced in 213 buildings
through replacement existing plumbing equipment with ultra low-flow units, saving
approximately 50.5 million of gallons annually, or $195,000.
Central Heating Plant Upgrade. Two central steam plants will be replaced with new gas
fired boilers, avoiding fuel use of 138,000 MMBTU R' and saving $655,000 annually. and ed. any ghy
em,
Central Cooling Plant Upgrade. A new absorption chiller and chilled water distribution line
will be installed at one site, saving approximately 270,000 kWh and $21,000 annually.
of
red. am. elec. use by
saving
2900 MTCe
Administration Efforts to Expand ESPC Use
While ESPC authority has existed since [1992], President Clinton has taken significant steps to
streamline and promote greater use of this tool. Streamlined contracts put in place by the DOE
and DOD have already accelerated large investments in energy projects at many Federal facilities.
In July 1998, DOE announced $1.5 billion in new ESPC contract authority, bringing to $5 billion
the total amount of ESPC authority currently available to Federal agencies. Last year the
President directed Federal agencies to develop proposals on ways in which ESPC authority can be
expanded, and Congress voted to renew existing ESPC authority through 2002. [more complete
ESPC information to be provided by Joan G.] [Needs to be redone. Explain Super ESPCs on
regional basis, etc.]
It is estimated [BY WHOM?] that ESPCs can cut emissions by 2 million metric tons of
greenhouse gases and save taxpayers as much as $700 million a year. [Unless there is something
very good, we should delete this sentence, In addition to the DOD-Viron/Pepco contract, other
significant ESPCs announced by the Federal government over the past year include: [waiting for
material to be inserted].
DOD's Partnership With Viron/Pepco
With the assistance of the Department of Energy's National Renewable Energy Lab, DOD sought
bids from private sector experts to provide solutions to the energy needs of the Military District of
Washington. DOD's Defense Energy Support Center chose Viron/Pepco to provide a range of
services including energy engineering, equipment installation, construction supervision, and
measurement and verification. Under the contract, all capital investments will be made within the
first three years of the contract and Viron/Pepco will be paid from a share of the verified energy
savings resulting directly from its conservation measures.
More than 2,800 buildings on the five installations were examined for possible energy
improvements. Under the contract, over 40 percent of the buildings currently in use will benefit
from one or more of the slated improvements and upgrades in the initial task order. The contract
is also structured so that either the government or Viron/Pepco can suggest additional
conservation measures for the remaining buildings.
FEDERAL LEADERSHIP ON CLIMATE CHANGE & ENERGY EFFICIENCY
JUNE 1999
President Clinton, in a Cabinet meeting today, issued an Executive Order to help meet the
challenge of global warming by dramatically improving energy efficiency in Federal buildings.
By 2010, the resulting energy savings will reduce annual greenhouse gas emissions by 2.4
million tons - the equivalent of taking 1.7 million cars off the road - and save taxpayers over
$1 billion a year. As an example of the savings that can be achieved, the President also
announced today a major contract to retrofit 837 buildings at 5 military installations in the
Washington, D.C. area, saving taxpayers over $150 million in energy costs.
Executive Order Sets Example For Nation
Aggressive Goals. The Federal Government is the nation's largest energy consumer with an annual
energy bill of over $8 billion. Actions to date have reduced energy consumption per square foot in
Federal buildings by 15% relative to 1985 levels. Today's order will extend this progress, requiring:
35% greater energy efficiency in Federal buildings relative to 1985 levels by 2010; and,
a 30% reduction in greenhouse gas emissions from buildings relative to 1990 levels by 2010 --
the first-ever Federal goal tied to greenhouse gas emissions.
Cutting-Edge Tools and Strategies. Today's Order directs agencies to make greater use of:
Energy Saving Performance Contracts (ESPCs) & Utility Contracts, in which contractors
are paid out of the savings resulting from energy improvements they propose and install. To date,
the Department of Energy (DOE) and the Department of Defense (DOD) have put in place over
$6 billion in ESPC contract authority (available for all agencies to use);
Life-cycle cost analysis, so agencies consider the real, long term cost of energy investments;
ENERGY STAR & other energy efficient products, everything from light bulbs to boilers;
Renewable energy technologies and sources (solar, wind, geothermal, and biomass).
Accountability. There will be close coordination among the Federal Energy Management Program,
the President's Management Council, OMB, and agencies in meeting the Order's requirement's.
Scorecards evaluating each agency's progress will be submitted annually to the President.
Examples of Real Progress
The partnership between DOD and Viron/Pepco Energy Services for building improvements is by far
the largest ESPC ever awarded. Other recent Federal actions of the type today's Order is designed
to foster and accelerate, include: [HOLD FOR INSERT - 4 bullets]
Aaa
Bbb
Ccc
Ddd
President Calls On Congress To Act
American businesses and homeowners can reap substantial by taking steps similar to the measures
called for in today's Executive Order. To spur this process, the President calls on Congress to enact
his proposed $3.6 billion package of tax incentives for consumers and businesses purchasing
energy efficient homes, appliances, cars, and energy from renewable sources.
and serves as a model for other agencies to replicate in implementing the President's new
Executive Order.
[It is estimated [BY WHOM?] that ESPCs can cut emissions by 2 million metric tons of
greenhouse gases and save taxpayers as much as $700 million a year.] [Unless there is
something very good, we should delete this sentence. Joan - I got this sentence from the
in
Buenos Aires fact sheet I put together on Federal energy, meaning someone at DOE cleared
on it - do you know where it's from?]
Fed. bill energy of
DOD's Partnership With Viron/Pepco
With the assistance of the Department of Energy's National Renewable Energy Lab, DOD sought
bids from private sector experts to provide solutions to the energy needs of the Military District of
Washington. DOD's Defense Energy Support Center chose Viron/Pepco to provide a range of
services including energy engineering, equipment installation, construction supervision, and
measurement and verification. Under the contract, all capital investments will be made within the
first three years of the contract and Viron/Pepco will be paid from a share of the verified energy
savings resulting directly from its conservation measures.
More than 2,800 buildings on the five installations were examined for possible energy
improvements. Under the contract, over 40 percent of the buildings currently in use will benefit
from one or more of the slated improvements and upgrades in the initial task order. The contract
is also structured so that either the government or Viron/Pepco can suggest additional
conservation measures for the remaining buildings.
Executive Order #XXXXX:
Greening the Government through Efficient Energy Management
DRAFT - May 24, 1999
Improving Federal Energy Efficiency and Reducing Greenhouse Gases
Today the President signed an Executive Order that significantly strengthens the federal
government's ability to reduce energy consumption, improve air quality, and meet the challenge
of global climate change. On October 27, 1997, the President said, "We must reinvent how the
federal government, the nation's largest energy consumer, buys and uses energy." This
Executive Order sets aggressive goals, provides essential tools, and lays a foundation for the
Federal government to lead the nation in energy efficiency.
With this Executive Order, agencies will -
improve energy efficiency in Federal buildings by 35 percent by 2010 relative to 1985 levels;
reduce greenhouse gas emissions that result from building energy use by 30 percent by
2010 relative to 1990 levels; and,
expand use of renewable energy technologies and electricity from renewable energy
sources.
Tremendous Cost, Air Quality, and other Environmental Benefits
Enhanced action on Federal energy management will translate into tremendous savings for
taxpayers and significant environmental improvements. By meeting the new goals and
commitments set forth in the Executive Order, the Federal government will save taxpayers
approximately $1 billion each year from energy efficiency in buildings alone by 2010. And,
these energy improvements will result in air quality benefits -- the equivalent of taking over 2
million cars off the road or planting XX acres of trees.
Providing Tools and Accountability to Advance Smart Federal Energy Management
The Executive Order offers a wide range of strategies and tools to assist agencies in meeting
these important goals. Most importantly, the Order calls for agencies to work closely with
private and public partners, such as energy service companies and utilities, to achieve dramatic
Federal energy and cost savings. Agencies can leverage private sector investment to fund energy
improvements and then pay back the investment with a portion of guaranteed savings.
The Order also provides a framework to hold agencies accountable for their progress in Federal
energy management. Agency performance will be evaluated in annual score cards and each
agency must submit an annual report to the President to describe their progress in meeting the
goals of this Order. The Office of Management and Budget, along with the President's
Management Council and key Federal departments, will provide the leadership and technical
assistance necessary to help agencies reap great benefits for the economy and the environment
for years to come.
Promoting the Use of Clean, Efficient, and Renewable Energy Technologies
As part of a comprehensive strategy for improved Federal energy management, the Executive
Order encourages agencies to use emerging energy management tools, including sustainable
building design, off-grid electricity generation, combined heat and power, and industrial process
improvements. Building on the President's commitment to 20,000 Federal solar energy systems
by 2010, the Executive Order calls for new investments in renewable energy through
applications of solar, wind, geothermal, and biomass technologies at Federal facilities and
through the purchase of electricity from renewable energy sources. The Order reinforces the
requirement for agencies to purchase ENERGY STAR and other highly efficient products and
thereby significantly reduce Federal energy costs. And, the Order's charge to agencies to invest
in water conservation will result not only in water savings, but lower energy costs.
Paul D. Glastris
06/02/99 08:14:03 PM
Record Type:
Record
To:
See the distribution list at the bottom of this message
cc:
Subject: draft of tomorrow's statement-comments back ASAP please
Draft 6/02/99 8:00 p.m.
Glastris
PRESIDENT WILLIAM J. CLINTON
STATEMENT AFTER CABINET MEETING
ROSE GARDEN, THE WHITE HOUSE
June 3, 1999
Acknowledgments: Sec. Shalala; Sec. Riley; Dep. Att. Gen. Holder
I have just had a very informative and productive meeting with my Cabinet. We
discussed range of issues of vital importance to the American people and to the future of our
nation. I want to highlight two of them.
First, we discussed new actions I am taking today to deal with what I called in my State
of the Union Address "our most fateful" environmental challenge: global warming. Almost
every month we see disturbing new evidence of climate change. Scientist now believe that 1998
was likely the warmest year in a millennium. Whole species of frogs are disappearing from the
cloud forests of Costa Rica because the air there is getting hotter and drier. In the Arctic, the
permafrost has started to warm and the sea ice is shrinking. These are alarming signs. Yet some
still insist that the vast majority of scientists are simply wrong and that we should do nothing,
while others call for a raft of new regulations and big energy taxes. I believe there is a third
way, a better way: invest in technologies that reduce greenhouse gases while also spurring
economic growth. Many of those technologies are on hand right now.
The federal government, as the nation's single largest consumer of power, has an
obligation to lead the way. That is why today I am directing all federal departments and
agencies to take steps that will dramatically improve the energy efficiency of federal buildings.
With new technologies and contracts with private firms, the federal government will be able to
cut its greenhouse gas emissions by 30 percent. That is the equivalent of taking 1.7 million cars
off the road. By taking these steps, we can also save taxpayers over billion dollars a year.
750 million
As a prime example of these environmental and fiscal benefits, I am also pleased to
announce that the Defense Department will award by the end of this month the largest
energy-saving contract in the history of the federal government. Under this contract, the
This innovative approach makes sense for the budget
for
the environment and for the nation.
This award will save money -- it involves no up-front payments
because the contractors will be paid from future savings, which
will amount to over $200 million.
This award will help save the environment -- the reductions in
annual greenhouse gas emissions will be as if we took 1.7
million cars off the road.
This award - as does the President's Executive Order - sets a
new standard for environmental protection.
President Clinton and Vice President Gore have worked hard
to prove that environmental protection and economic growth
need not be mutually exclusive, but can be mutually reinforcing.
The same is true with the military - we can, and we will,
protect America's environmental security while protecting our
national security.
GREENING THE GOVERNMENT EFFICIENT ENERGY MANAGEMENT
JUNE 3, 1999
The Executive Order issued by President Clinton today helps meet the challenge of global
warming by dramatically improving energy efficiency in Federal buildings. By 2010, the resulting
energy savings will reduce annual greenhouse gas emissions by 2.4 million tons - the equivalent of
taking 1.7 million cars off the road - and save taxpayers over $750 million a year. The Order will
also expand markets for renewable technologies, reduce air pollution, and serve as a powerful
example to American businesses and consumers who can reap substantial benefits from energy
improvements.
Aggressive New Goals
The Federal Government is the nation's largest energy consumer with an annual energy bill of
over $8 billion - more than $4 billion to heat, cool, and power its 500,000 buildings. Federal
agencies have already reduced energy consumption 17% per square foot relative to 1985 levels.
Today's order builds on that progress, extending current energy efficiency goals and setting new
goals for greenhouse gas reductions, renewable energy use, and water conservation.
New Energy Efficiency Goal for Facilities. The Order requires each Federal agency to
improve its energy efficiency in Federal buildings by 35 percent relative to 1985 levels by
2010. (Current goal is 30 percent by 2005.)
New Energy Efficiency Goal for Industrial and Laboratory Facilities. The Order requires
each Federal agency to improve its energy efficiency in industrial and laboratory facilities by 25
percent by 2010. (Current goal is 20 percent by 2005.)
New Greenhouse Gas Reduction Goal. The Order requires each Federal agency to reduce
greenhouse gas emissions that result from building energy use by 30 percent relative to 1990
levels by 2010. This is the Federal Government's first-ever goal tied to greenhouse gas
reductions.
Expanded Use of Renewable Energy. The Order requires Federal agencies to expand their
use of renewable energy technologies and electricity from renewable energy sources, such as
solar, wind, geothermal, and biomass. Building on the President's commitment to install
20,000 Federal solar energy systems by 2010, the Order calls for new investments in
renewable energy through applications of solar, wind, geothermal, and biomass technologies at
Federal facilities and through the purchase of electricity from renewable energy sources.
Water Conservation. The Order calls for Federal agencies to improve their water efficiency,
not only to reduce water consumption, but also to reduce associated energy use. The Order
requires the Department of Energy (DOE) to work with other Federal agencies to develop
water consumption baselines and then set appropriate goals for water conservation.
Fewer Exempt Facilities. Under current practice, a large number of facilities (accounting for
17% of building energy use) are exempt from meeting Federal energy goals. Under this Order,
all facilities are subject to these goals and requirements unless they meet new exemption
criteria to be developed by DOE. In addition, in their Annual Report to the President, each
agency must report all exempt facilities and explain the rationale for excluding them from
Federal energy goals.
Cutting-Edge Tools and Strategies
The Order calls for agencies to use a wide range of energy management tools and strategies to
fulfill the new energy efficiency, renewable energy, and greenhouse gas reduction goals.
Alternative Financing. Financing options, like Energy Savings Performance Contracts
(ESPCs) and utility energy efficiency service contracts, offer Federal agencies a powerful tool
for leveraging private sector financing to fund cost-saving energy improvements at no net cost
to taxpayers. Under ESPCs, private sector energy service companies finance the up-front cost
of purchasing and installing new energy efficient equipment. The Federal government uses a
portion of the savings it accrues through reduced energy bills to repay the energy service
company over the life of the contract. Contractors then receive a predetermined share of the
value of the energy savings generated by their efforts, and may be paid only if actual savings
result from the reduced energy use. All additional savings accrue to the government. The
government benefits from new equipment, reduced energy costs, improved energy efficiency,
reduced greenhouse gas emissions, and conservation of nonrenewable fuels.
To date, DOE and the Department of Defense have put into place over $8 billion in ESPC
contract authority -- available for all Federal agencies to fund energy improvements. In
addition, many of these contracts are "Super ESPCs" which rely on the same principals as
regular ESPCs but offer an umbrella contract to allow expedited service. The Order calls for
agencies to maximize their use of ESPCs and utility energy efficiency service contracts to
realize energy and cost savings.
Life-Cycle Cost Analysis. It is critical that Federal agencies consider the full cost of their
investments, including energy, operation and maintenance costs, not simply the purchase cost
of projects or products. To date, agencies have generally only invested in projects that pay for
themselves within 10 years. But, if a piece of equipment has a general working life of 25
years, then the costs over its full life must be taken into account when making investment
decisions. By taking all costs into account, agencies can save money and energy. To that end,
the Order requires agencies to consider life-cycle costs - that is, investment costs, capital
costs, installation costs, energy costs, operating costs, maintenance costs, and disposal costs,
over the life of the project or product.
ENERGY STAR® and Other Energy Efficient Products. The Order calls for agencies to
purchase ENERGY STAR® and other energy efficient products. These products, ranging
from compact fluorescent light bulbs to highly efficient boilers, can save Federal agencies
hundreds of millions of dollars.
Electricity from Renewable Energy and Energy Efficient Sources. Given that over
70percent of the Federal government's energy costs in buildings comes from electricity, the
Order requires agencies to consider the source of their electricity and opt for cleaner, more
efficient electricity generation. Specifically, the Order calls for agencies to minimize the
greenhouse gas intensity of purchased electricity. In addition, agencies should adopt policies
to increase the use of electricity from renewable energy sources.
Highly Efficient Energy Systems. This Order calls for agencies to make greater use of
highly efficient energy systems, including combined heat and power systems that use "waste"
heat from industrial processes to supply power to other needs. These types of systems can
offer not only tremendous energy and cost savings, but also significant environmental benefits.
Off-Grid Electricity Generation. This Order requires agencies to consider off-grid
electricity opportunities that often provide energy and environmental benefits, while allowing
agencies to avoid the costs of build new transmission lines or digging up existing lines. Off-
grid options can be particularly effective in remote locations, including in our National Parks.
The systems range from solar outdoor lighting to small wind turbines and fuel cells.
Sustainable Building Design. In July 1998, as part of the President's radio address on
Federal energy issues, a number of Federal agencies committed to constructing sustainably-
designed buildings. This Order requires all Federal agencies to apply sustainable design
principles to the siting, design, and construction of new facilities and thereby save energy, save
taxpayer dollars, and reduce pollution.
Strengthening Agency Accountability
The Order provides a framework to hold agencies accountable for their progress in Federal
energy management. The following new management strategies and reporting requirements will
help ensure that all Federal agencies manage energy use wisely and reap great benefits for the
economy and the environment for years to come.
Annual Reports to the President and Annual Score Cards. Under the Order, each Federal
agency must submit an Annual Report to the President describing its progress in meeting the
goals of the Order. In addition, the Deputy Director for Management of the Office of
Management Budget will evaluate each agency's performance and submit agency score cards
to the President. The score card evaluations will consider agencies' progress toward the
energy efficiency, renewable energy, and greenhouse gas goals. The score cards will also take
into account how effectively agencies have used key energy management tools and strategies.
President's Management Council. The President's Management Council, which generally
consists of Deputy Secretaries from all agencies, will monitor agencies' progress on Federal
energy management and provide a high-level forum for identifying ways to accelerate
improvements.
Agency Energy Teams. Each agency must form a technical energy support team within 90
days to ensure that energy management strategies are implemented across all facilities. These
energy teams will bring together legal, procurement, and other essential agency representatives
to overcome barriers to realizing energy and cost savings.
Funding for Energy Management Activities. While smart energy management will lead to
taxpayer savings in the long run, initial agency investments are needed in order to implement
energy savings performance contracts and purchase energy efficient equipment among other
cost-savings activities. Therefore, the Order calls for agencies to consider the full range of
their energy management responsibilities and include these costs in their budget requests.
New Public/Private Advisory Committee. The Order calls for DOE to organize an advisory
committee to bring together private and public sector experts who can advise agencies on how
to improve their energy management practices. The Committee will include representatives
from energy service companies, utility companies, equipment manufacturers, and other private,
non-profit, and public sector organizations that focus on energy issues.
Concrete Steps, Concrete Savings
In conjunction with the signing of a new Executive Order to promote energy efficiency, President
Clinton announced today the Pentagon's intent to award (by the end of June) the Federal
government's largest-ever Energy Saving Performance Contract (ESPC), under which Viron
Energy Services/Pepco Energy Services (Viron/Pepco) will upgrade the energy performance of
837 Federal buildings at no up-front cost to taxpayers. The 18-year service contract, covering
five military installations in the Washington, DC area, will reduce annual energy consumption by
17%, saving the Department of Defense (DOD) over $219 million in energy and related costs and
reducing annual greenhouse gas emissions by 24,000 metric tons of carbon (MTC) - equivalent of
taking over 19,000 cars off the road.
Other examples of energy-saving actions of the kind the President's Order is designed to promote
include:
Energy Efficient Procurement. The Defense Logistics Agency (DLA), which supplies
almost 20% of all light bulbs purchased by the Federal government, has teamed up with DOE
to offer half price compact florescent light bulbs (CFLs) (the bulbs that replace normal
incandescent bulbs in fixtures such as lamps).. The half price offer is open to any Federal
purchaser with a maximum purchase of 400 bulbs per order.
Last year, the DLA supplied 1.5 million of these bulbs to Federal purchasers. If they had all
been CFL's savings would have totaled $7.5 million. Just last week the DOE added CFLs to
the ENERGY STAR product rating program providing consumers with specifications for
reliable, long lived, low cost CFLs. CFLs last 800% longer than an incandescent bulb and can
last up to five years. Each bulbs saves $67 over its lifetime.
Renewable Energy Projects. Some 18 Federal agencies - including the Departments of
Agriculture, Interior, Transportation, DOD, DOE, Smithsonian Institution, the National
Science Foundation, The Environmental Protection Agency (EPA), NASA, the U.S. Postal
Service, and the Western Area Power Administration will soon -- receive a combined $1.5
million DOE funding for more than 100 cost-effective renewable energy projects at
government sites. The technologies include more than 50 new or renovated solar water
heating systems, large and small photovoltaic (solar electric or "PV") systems, PV-powered
lights and "solar walls" which preheat outside air for building heating and cooling. There are
also some wind projects and a combination PV and wind project.
Buying Renewable Power. The Environmental Protection Agency's Richmond, California
laboratory has become the first major Federal facility supplied 100% with renewable energy.
Initially, 60 percent of the power supplied will come from geothermal sources and 40 percent
will come from biomass. Eventually power will be supplied by a new landfill gas facility
expected to begin service in the fall of 1999. The General Service Administration (GSA) and
DOE provided support to EPA in this effort. This green power purchase will produce
environmental benefits equivalent to reducing over 2 million passenger car miles driven in
California each year. The purchase will prevent greenhouse gas emissions equal to [2.3 million
lbs. per year.]
Energy Star Buildings. GSA's Foley Square Federal Office Building in New York City has
been retrofitted to achieve the ENERGY STAR Building Label by EPA. The ENERGY
STAR Building Label signifies that the building is in the top 25% of similar buildings with
regard to energy efficiency. Opened in 1994, the building encompasses 1.2 million square feet
and houses offices of the Federal Bureau of Investigation, the Internal Revenue Service and
the Environmental Protection Agency. By deploying equipment and products that qualify the
building for the ENERGY STAR label, the GSA saves $1.3 million annually compared to the
cost of other similar buildings without the energy efficiency equipment or products. [do we
have a percentage?]
White House Climate Change Task Force
734 Jackson Place, N.W. Washington, DC 20503
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White House Climate Change Task Force
734 Jackson Place, N.W. Washington, DC 20503
FACSIMILE TRANSMISSION SHEET
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PRESIDENT CLINTON: LEADING THE FIGHT AGAINST GLOBAL WARMING
JUNE 3, 1999
President Clinton, in a Cabinet meeting today, issued an Executive Order to help meet the challenge
of global warming by dramatically improving energy efficiency in Federal buildings. By 2010, the
resulting energy savings will reduce annual greenhouse gas emissions by 2.4 million tons - the
equivalent of taking 1.7 million cars off the road - and save taxpayers over $750 million a year. As
a prime example of the savings that can be achieved, the President also announced a major contract
to retrofit over 800 buildings at five military installations in the Washington, D.C. area, saving some
$219 million in energy and related costs. [to be put in text box]
Leading By Example. The Federal Government is the nation's largest energy consumer with an
annual bill of over $8 billion - more than $4 billion to heat, cool, and power its 500,000 buildings.
Federal agencies have already reduced energy consumption 17% per square foot relative to 1985
levels. Today's order builds on that progress by:
Setting Aggressive Goals - the Order requires Federal agencies to achieve by 2010:
35% greater energy efficiency in buildings relative to 1985 levels; and,
30% cut in greenhouse gas emissions from building-related energy use relative to 1990.
Mobilizing Cutting-Edge Strategies -- the Order directs agencies to make greater use of:
Energy Saving Performance Contracts & Utility Contracts, in which private contractors
make energy-saving improvements on Federal facilities at their own expense and receive a
portion of the resulting savings;
Life-cycle cost analysis, so agencies see the long-term savings from energy investments;
ENERGY STAR & other energy efficient products, everything from light bulbs to boilers;
Renewable energy technologies and sources (solar, wind, geothermal, and biomass).
Strengthening Accountability - The Order requires that annual scorecards evaluating agency
progress be submitted to the President; gives OMB, in consultation with the Department of Energy
(DOE), oversight authority, and directs agencies to appoint energy management teams to help meet
the goals of the Order.
Concrete Steps, Concrete Savings. The partnership announced today between the Department of
Defense and Viron/Pepco Energy Services - the largest energy-saving performance contract ever
awarded - will cut energy use in 837 buildings at Ft. Belvoir, Ft. A.P. Hill, Ft. Meyer, Ft. McNair,
and Ft. Meade. Other examples of energy-saving actions of the kind today's Order is designed to
promote include:
The Defense Logistics Agency (DLA) and the DOE have teamed up to offer high efficiency
compact florescent light bulbs at half price to Federal purchasers;
18 Federal agencies (including the Smithsonian Institution, NASA, and the Postal Service) will
receive DOE funding for more than 100 renewable energy systems;
A New York GSA building housing the FBI and the IRS has been retrofitted to ENERGY
STAR Building standards, with an annual energy cost savings of $1.3 million.
Environmental Protection Agency's laboratory in Richmond, California has become the first
major Federal facility supplied 100% with renewable energy (geothermal and biomass);
Incentives For Businesses and Homeowners, Too. To help American businesses and consumers
reap the same kinds of energy and cost savings, the President today also calls on Congress to enact
his proposed $3.6 billion package of tax incentives for the purchase of energy efficient homes,
appliances, cars, and energy from renewable sources.
DOD-VIRON/PEPCO ENERGY SAVING PERFORMANCE CONTRACT
JUNE 1999
In conjunction with the signing of a new Executive Order to promote energy efficiency, President
Clinton announced today the Pentagon's intent to award (by the end of June) the Federal
government's largest-ever Energy Saving Performance Contract (ESPC), under which Viron
Energy Services/Pepco Energy Services (Viron/Pepco) will upgrade the energy performance of
837 Federal buildings at no up-front cost to taxpayers. The 18-year service contract, covering
five military installations in the Washington, DC area, will reduce annual energy consumption by
17%, saving the Department of Defense (DOD) over $219 million in energy and related costs and
reducing annual greenhouse gas emissions by 24,000 metric tons of carbon (MTC) - equivalent of
taking over 19,000 cars off the road.
Energy Saving Performance Contracts - Energy Savings at No Up-front Cost to Taxpayers
The new Executive Order directs Federal agencies to maximize their use of ESPCs -- innovative
financing mechanisms that mobilize private sector investment and expertise to save energy and
save money in Federal facilities. Under ESPC authority, Federal agencies hire private energy
service companies to conduct energy audits of facilities, propose energy saving retrofits, and
privately finance, install, and maintain retrofits. There are no up-front payments by the
government and contractors are paid from a share of the savings, with the remaining savings
accruing to the agency.
The DOD-Viron/Pepco ESPC is the largest by far of any ever awarded by the Federal government
and serves as a model for other agencies to replicate in implementing the President's new
Executive Order.
Real Savings and Real Environmental Benefits
Under the new contract, some $70 million in private investment will fund energy upgrades at five
installations in the Army's Military District of Washington - Ft. Belvoir, Ft. A.P. Hill, Ft. Meyer,
Ft. McNair, and Ft. Meade. These measures will save money and improve the environment. In
particular, they will:
Avoid almost 24,000 MTC of greenhouse gas emissions annually - a 26% reduction;
Save DOD a total of over $219 million in energy and related costs
Reduce annual energy costs by 17%;
Reduce annual electricity use by 89 million kilowatt hours (kWh) of energy annually;
Reduce fuel use by 294,000 million British Thermal Units (MMBTUs) annually;
Reduce pollutants that cause smog and acid rain by more than 600 metric tons annually; and,
Save over 50 million gallons of water annually.
These improvements to buildings and equipment will support Army operations well into the next
century, without the need for additional funding, and will provide more comfortable living
conditions and improved quality of life for those who live and work at the five installations.
Administration Efforts to Expand ESPC Use
While ESPC authority has existed since 1992, President Clinton has taken significant steps to
streamline and promote greater use of this tool. Streamlined contracts - known as "Super
ESPCs" -- put in place by DOE and DOD have accelerated large investments in energy projects at
hundreds of Federal facilities. Super ESPCs allow all agencies and facilities to place delivery
orders under umbrella contracts, substantially reducing the lead time to contract with an energy
services company. There are two types of Super ESPCs: regional and technology specific.
Regional specific contracts cover a designated geographic area; technology specific contracts are
in effect nationwide for a particular emerging technology, such as solar collectors.
In the last year, the DOE has awarded over $5 billion in ESPC contracting authority to 44 private
contractors to perform energy and cost saving work. Projects have been designed and awarded
that will mobilize $28.7 million of private investment to perform energy saving work in Federal
agencies. The contractors will be paid from the $62.5 million projected savings. Well over a
hundred agreements are currently under negotiation as this alternative financing tool for energy
and taxpayer savings becomes more commonly used by Federal agencies. Other agreements are
also under negotiation with utility contractors and under the DOD contracts (worth over $3
billion) which are also available for use by the rest of the Federal government.
Energy Efficiency Measures to be Taken
Expected energy efficiency measures include:
Cooling system retrofits. Some 888 cooling units will be replaced or retrofitted, cutting
energy use in 343 buildings, reducing associated energy costs by over $1 million annually and
annual greenhouse gas emissions by 4,900 MTC.
Air Handling Units. Replacement and retrofitting of air handling units in 126 buildings will
reduce annual energy consumption by 14 million kWh. This will mean annual savings of
$742,000 and 3,500 MTC of greenhouse gas emissions avoided each year.
Lighting Retrofits or Replacement. Some 142,600 light fixtures will be replaced or
retrofitted in 714 buildings, reducing annual energy consumption by 29.8 million kWh, saving
$1.4 million annually, and reducing annual greenhouse gas emissions by 4,800 MTC.
Central Heating Plant Upgrade. Two central steam plants will be replaced with new gas
fired boilers, reducing annual fuel use by 138,000 MMBTU, saving $655,000 annually, and
reducing annual greenhouse gas emissions by 2,900 MTC.
Central Cooling Plant Upgrade. A new absorption chiller and chilled water distribution line
will be installed at one site, reducing annual electricity use by approximately 270,000 kWh and
saving $21,000 annually.
Water Conservation. Water consumption and waste water will be reduced in 213 buildings
through replacement of existing plumbing equipment with ultra low-flow units, saving
approximately 50.5 million of gallons annually, or $195,000.
DOD's Partnership With Viron/Pepco
With the assistance of the Department of Energy's (DOE's) National Renewable Energy Lab,
DOD sought bids from private sector experts to provide solutions to the energy needs of the
Military District of Washington. Using full and open competition, DOD's Defense Energy
Support Center has issued a Notice of Intent to Award a contract to Viron/Pepco to provide a
range of services including energy engineering, equipment installation, construction supervision,
and measurement and verification. Under the contract, all capital investments will be made within
the first three years of the contract and Viron/Pepco will be paid from a share of the verified
energy savings resulting directly from its conservation measures.
More than 2,100 buildings on the five installations were surveyed for possible energy
improvements. Under the contract, almost 40 percent of the buildings currently in use will benefit
from one or more of the slated improvements and upgrades in the initial task order. The contract
is also structured so that either the government or Viron/Pepco can suggest additional
conservation measures for the remaining buildings.
Draft Talking Points by Secretary Cohen/Cabinet Meeting/Contract Annoucnement/3 June 1999
Thank you, President Clinton
and thank you for your
continuing leadership on this issue.
As the President noted, later this month the Department of
Defense will award a landmark Energy Saving Performance
Contract.
the area
Under the plan, over 800 buildings at 5 military installations in
Washington will be audited, assessed, and retrofitted.
Hundreds of cooling units and over 100,000 lighting
fixtures will be replaced.
This will be the largest contract of its kind ever.
Sent By: VIRON-COLUMBIA, MD;
14107929445;
Jun-1-99 3:11PM;
Page 2/3
Done DOE Howard
Subj:
Answers to questions on Viron/PEPCO ESPC
Date:
Tuesday, June 1, 1999 1:34:55 PM
To:
[email protected]
CC:
[email protected], [email protected], [email protected]
Question 1 Emission savings.
I have converted the savings previously provided for carbon dioxide (CO2) to MMTCE
Annual quantities reduced are as follows:
Carbon dioxide (CO2) total emissions = 87,602 metric tons
Carbon equivilent saved = 23,891 MMTCE
from elec : 17, 750 Metric tons Carbon eq.
Sulphur dioxide (SO2) total emissions = 121 metric tons
Sulphur equivilent saved = 61 MMTSE
Nitrous oxides (NOX) total emissions no 34 metric tons
Sulphur equivilent saved 10 MMTNE
Question 2 - 89 million kWh
a 100% efficiency
This ESPC will reduce annual electric use by 89,491,852 kWh. At 3413 btu per kWh,
this equates to 305,436 MMbtu. Heating fuel use avoided adds 294.012 MMbtu for a
total MMbtu avoided use of 599,448.
use this
nota
use these
Question 3 - The 305,000 MBtu listed
don't use
As stated above, I used the end user conversion of kWh to btu of 3,413 for these
calculations. It is my understanding that the 1.6 Ibs/kWh for this region incorporates
the total fuel consumption required to produce each kWh by the regions electric
producers. Therefore, use of a production conversion figure (10,000 or higher) would
overstate the emissions. No, it doesn't overstate emissions, because
that's how much fuel has to be burned to make 89x10⁶ KWh
question 4 - Ultimately, we question expressing energy saved
keep separate
The only reason we express energy saved as electricity and heating fuel in btu is to
permit aggregating the values together as required for reporting ECM savings under
both DOD and DOE ESPC processes. All of our calculations and basic reporting is done in
the energy source specific units.
Question 5 - Total energy savings "over 100 million..."
Answer to this question was sent earlier by L. Trybus.
Sent By: VIRON-COLUMBIA,MD;
14107929445;
Jun-1-99 3:12PM;
Page 3/3
Question 6 - What is the total number of buildings?
The total number of buildings for which we are proposing some ECM is 837. The 888
number is the quantity of cooling units to be replaced or retrofit and does not correlate
with the total number of buildings because some buildings do not have cooling units
proposed and some have multiple cooling units proposed.
I hope this answers your questions, John. The only discrepancy between the numbers on
the briefing materials you sent me on Friday and my data is that the total carbon
dioxide emissions you quoted was 86,000 metric tons whereas the actual number is
87,602. I think this is due to some slight changes that were made in the proposal
submitted on 4/19/99. The 86,000 was based on our Best and Final Proposal submitted
in November of 1998.
Terry E. Simms - Sr Project Manager
Sent By: VIRON-COLUMBIA, MD;
14107929445;
Jun-1-99 - 3:11PM;
Page 1
9175 Gullford Road
Suite 216
Columbia Maryland 21046
Phone: 410-792-9777 Fax: 410-792-9445
Viron Energy Services
Fax
To: JONN GIBSON
From: Terry SIMMS
Fax: 242-395-2342 Pages: 21 Certa
Phone:
Date: 6/1/99
Re: MDW EMISSION CC:
Urgent
For Review
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ResPonses SENT carlior
T.Simms
IIIII
Defense Energy Support Conter
FAX
DESC-A
DEFENSE ENERGY SUPPORT CENTER
FT. BELVOIR, VA
To:
Ms. Martha Walford
Fax: 202-395-2342
Pgs 9
From: Ms. Sharon Murphy
703-767-8572
FAX 703-767-8757
703
#
Bricenk
703
Sharon
767-8532
(703)
Murphy
767 8572
fax
8757
Energy Savings Performance Contracting
smundy@desc. dla.
Conserving Energy and Improving Buildings and Equipment Through Private/Public Partnering
Viron
DRAFT
Through a partnership established between the Defense Logistics Agency's Defense Energy Support Center (DESC), the
U.S. Army's Military District of Washington (MDW) and its five installations in the metropolitan Washington D.C. arca,
Terry
and the Department of Energy's National Renewable Energy Laboratory (NREL), DESC is prepared to award the largest
single Energy Savings Performance Contract (ESPC) project executed by a Federal Agency to date. Viron/Pepco Services
Sims
(Viron/Pepco) been issued a notice of intent to award and will act as the Federal Government's partner in meeting
important energy reduction goals and providing needed building and equipment upgrades without the requirement for
ph. (410)
spending additional tax dollars. It is anticipated that over the 18-year contract period, savings will exceed $100
million, a reduction of more than 17 percent in overall energy costs. Building and equipment improvements will be
792
authorized through a single contract task order, the first of its kind for a group of installations. The five participating
9777
MDW installations. Ft. Belvoir, Ft. A.P. Hill, Ft. Myer, Ft. McNair, and Ft. Meade, will reap the benefits of the cooperative
effort.
A Commitment to Work Together. DESC brought together representatives from the MDW and five of its installations in
for
a source selection process. In addition, DESC tapped into the Department of Energy's expertise by enlisting the help of
NREL. Recognizing the expertise of commercial sector energy service providers, DESC issued a commercial solicitation
which encouraged private sector experts to provide installation-wide optimum solutions to the Government's energy
conservation needs. Utilizing "best value" buying techniques, DESC, in conjunction with its Government partners,
410
determined that Viron/Pepco's offer provided the greatest overall benefits to the Government in the arcas of energy
engineering, equipment installation. construction supervision, and measurement and verification. All capital investments
7a2
will be made within the first three years of the contract and Viron/Pepco will be paid through shared savings drawn from
verifiable energy savings resulting directly from its completed Energy Conservation Measures (ECMs).
qu45
Energy Savings Performance Contract. As a result of the established partnership, the five installations included in the
partnership will have their overall energy consumption reduced by at least 23 percent in comparison to 1998 levels by
the year 2005. This translates into annual reductions of 89 million kilowatt-hours of electricity and 294,000 MMBTU in
fuel.
Environmental Benefits through Building and Equipment Upgrades. Improvements to buildings and equipment will not
only support Army operations well into the next millennium without the requirement for additional funding, it will also
bring about significant environmental benefits. Along with modernization of buildings and equipment comes a reduction
in energy usage that results in a diminishing amount of electricity required to meet demand and, therefore, a decrease in
pollurants created by utility generating facilities. Coupled with other upgrades that allow installations to greatly reduce or
eliminate their requirement to burn fossil fuels. the building and equipment upgrades received through the public/private
partnership denote good news for the environment, When compared to 1998 MDW consumption figures, there will be a
MMTCE
percent reduction in harmful carbon emissions, equal to approximately 86,000 metric tons, resulting from
reductions in installation demand and consumption as a result of the partnership. in addition, over 50 million gallons
of water will be saved annually. Old air conditioner units and heating systems will be replaced, serving the dual purpose
of reducing the waste of elecuricity and fuel while enhancing the comfort of those who work at each installation. The
replacement of outdated light fixtures with new energy efficient fixtures alone will lead to reductions in energy demand
and usage which will result in the reduction of Carbon, Sulfur, and Nitrous Oxide emissions produced by power
generating facilities by nearly 18,000 metric tons. MMJCE
Site Improvements. More than 2,800 buildings on the five installations were examined for improvements in energy
savings. Over 40 percent of buildings currently in use will benefit from one or more building and equipment the
improvements to be initiated in the initial task order. The contract is also structured in a fashion that allows either
Government or Viron/Pepco to suggest in the future additional energy conservation measures for the remaining buldings.
Those that are accepted by the installation can be completed under the same contract. As part of the initial task order,
outdated and inefficient heating, air conditioning, lighting and water fixtures will be replaced with newer energy and water
saving devices. Viron/Pepco expects to retrofit or install over 142,000 lighting fixtures, nearly 900 cooling systems, and
five central cooling and heating plants. Along with increased energy efficiency and needed building and equipment
upgrades, the MDW will atain more comfortable living conditions and improved quality of life for those who live and
work al each of the partner installations.
Itrybus
(301)
ext.13
@ viroa.com
Trybus (410) 792-
you
atend then are ESPCs
bullet
9777
BACKUP DATA
Some of the initial benefits of this partnership with Viron/Pepco Services are expected to be as
follows. The Energy Conservation Measures (ECMs) and estimated savings listed below are not
intended to be all-inclusive.
Maximizes savings to the government through a single procurement
Establishes a simplified analysis methodology for measurement and verification of ECMs
Reduces unit costs for equipment through quantity purchasing
Provides a single management organization for all five sites from conception through the life
of the contract
Further enables the Military District of Washington (MDW) to progress towards
achievement of energy conservation goals established by statute.
Provides improvements to buildings and equipment that will support Army operations well
into the next millennium
in order to attain the savings expected in this partnership the Viron/Pepco Services team expects to
retrofit:
142,600 lighting fixtures
888 cooling systems
Over 10,000 control points for over 430 energy management control systems
5 central cooling and heating plants
The overall results of these savings measures can be best highlighted in the following examples of
expected savings:
coz only?
334,304 metro, tory
89 million kilowatt hours of energy will be saved per year
of
Over 86,000 metric tons of harmful emissions will be reduced
Over 599,000 MMBTU will be saved annually (305,000 MMBTUs of electricity and
co2
294,000 MMBTUs of fuel)
Over 50 million gallons of water will be saved annually
Over $5.5 million will be saved annually in energy costs alone by the Military District of
Washington
544 502
Cooling System Retrofit Total Energy Savings This energy savings measure will replace existing air- 148
cooled reciprocating chillers; existing air-cooled condensing units; existing water-cooled centrifugal
chillers; conversion of constant flow chilled water loop to variable flow with variable frequency drives
NOX
(VFD), consolidation of multiple cooling units into integrated or multiple building cooling plant
(central cooling); and replace or retrofit existing cooling units with a geothermal loop, heat pump unit.
This ECM will cui energy usage in 343 buildings, by installing 888 cooling units, while
reducing associated energy cosis by $1.01 million annually.
Air Handling Units. Air handling unit fans, conversion of air handling systems to variable air volume
terminal dampers, and the conversion of constant volume, terminal reheat air handling systems to
variable air volume in 126 buildings will reduce electricity consumption and demand and heating fuel
use.
Total annual kWh avoided by installing this system is 14.0 million kWh. CO₂ emission
reduction is estimated to be 3,300 metric tons. Energy savings to the Government is estimated
to be over $742,000 per year.
Lighting Retrofits or Replacement. Seven hundred fourteen (714) buildings will receive a total of
142,600 new light fixtures. New or replaced fixtures will reduce electricity consumption and demand,
reducing Carbon, Sulfur, and Nitrous Oxide by 17.8K metric tons.
Total electricity usage avoided is estimated at 29.8 million kWh. The annual savings to the
Government is estimated to be $1.4 million.
Water Conservation. Water consumption and wastewater will be reduced in 213 buildings. Toilet
bowls, urinals and flushomcter valves will be replaced with ultra low-flow units. Existing faucet
aerators will be replaced with less gallon-per-minute acrators.
Annual water savings will be approximately 50.5 million gallons. Savings are approximately
$195,000 annually.
Central Heating Plant Upgrade. Two central steam plants will receive new gas fired boilers. Two
central steam plants will be completely decommissioned. New gas fired, local boilers will be installed
in each building. This will result in a net fuel use reduction across the board.
Total fuel use avoided is over 138,000 MMBTU and fuel savings will be in excess of $655,000
per year.
Central Cooling Plant Upgrade. A new absorption chiller and chilled water distribution line will be
installed at one of the sites. Installation of this ECM will reduce electricity consumption and demand.
This ECM will save approximately 270,000 kWh and $21,000 annually.
Additional Backup
Note: Energy Conservation Measures and Energy Savings reflected below are not intended to be all-
inclusive.
1. Cooling System Retrofit
Number of buildings involved
343
Number of units to be installed
888
Total Electricity and Fuel use avoided
89,984 MMBTU per year
by installing of the ECM (per year)
Total emissions reduction due to the
18,087 metric tons /year of CO2, Nox,
ECM (per year)
SO2
4,933 MTCe
Dollar savings to the Government for
$1,016,400 per year
the ECM
2. Cooling Controls
Number of buildings involved
404
Number of units to be installed
404 Systems
Effects of the ECM
This ECM will reduce cooling energy
consumption and demand, extending
cooling system life, and helping improve
indoor air quality
Total emissions reduction due to the
Over 3,325 metric tons per year of CO2,
907 MTCe
ECM (per year)
SO2, Nox
Dollar savings to the Government for
$179,953 per year
the ECM
3. Air Handling Units
Number of buildings involved
126
Number of units to be installed
685
Effects of the ECM
Reduce electricity consumption and
demand as well as heating fuel usage and
improved indoor air quality
Total emissions reduction due to the
12,969 metric tons per year of CO2, SO2
3,537 MTCe
ECM (per year)
and Nox
Dollar savings to the Government for
$742,436 per year
the ECM
4. Economizer (outdoor air) Cooling Retrofit
Number of buildings involved
23 buildings affected and 42 economizer
systems to be installed
Effects of the ECM
Reduce electricity consumption and
reduce CO2 and other related emissions.
Improve Indoor air quality and wear on
mechanical cooling systems
Total emissions reduction due to the
532 metric tons per year of CO2, SO2,
145 mice
ECM (per year)
and Nox
Dollar savings to the Government for
$18,026 per year
the ECM
5. Heating Unit Replacement and/or Retrofit
Number of units to be installed
355 units to be replaced
Number of buildings involved
258 buildings
Number of systems which will be
Two steam systems to be decommissioned
switched from central steam or hot
on Ft. Meade, and two new central plant
water loop systems
boilers to be installed on Ft Belvoir. One
additional steam boiler at Ft. Myer
Number of pipelines or traps to be
One new pipeline to be installed.
installed
Effects of the ECM
There will be a substantial reduction of
heating fuel consumption and emissions
Total emissions reduction due to the
1,430 metric tons per year of CO2, SO2,
390 mice
ECM (per year)
Nox
Dollar savings to the Government for
$191 416 per year
the ECM
6. Heating System Control Retrofit
Number of hot water and airside reset
440 systems
controls to be installed
Number of constant flow hot water
212
systems to be converting to variable
flow with VFD
Effects of the ECM
Will reduce cooling energy consumption
and demand.
Total emissions reduction due to the
5,610 metric tons per year of CO2, SO2,
ECM (per year)
Nox
-1,530 MtCe
Dollar savings to the Government for
$371,519 per year
the ECM
7. Lighting Retrofit or Replacement
Number of light fixtures to be installed
142,600
Number of buildings involved
714
Effects of the ECM
Reduce electricity consumption and
demand.
Total emissions reduction due to the
17,774 metric tons per year
ECM (per year)
4,847 MTCe
Dollar savings to the Government for
$1,376,014 per year
the ECM
8. Installation of Direct Digital Control Based Energy Management Control
Systems (EMCS)
Number of systems to be installed
434
Number of buildings involved
434
Effects of the ECM
Electrical and fuel usage will be less
Total emissions reduction due to the
15,394 metric tons per year
4198 MICE
ECM (per year)
Dollar savings to the Government for
$728,118 per year
the ECM
9. Retrofit Building Envelopes
Number of windows to be replaced
865 windows
Number of buildings in which systems
22
will be installed
Effects of the ECM
Heating and cooling loads will be reduced
as well as related energy use
Total emissions reduction due to the
612 metric tons per year of CO2, SO2,
ECM (per year)
and Nox
Dollar savings to the Government for
$45,636 per year
the ECM (per year)
10. Recapture Heating and Cooling Energy from Building Exhaust
Number of systems to be installed
6
Number of buildings involved
6
Effects of the ECM
Will reduce heating and cooling loads and
related energy usage
Total emissions reduction due to the
238 metric tons per year of CO2, SO2,
ECM (per year)
and Nox
Dollar savings to the Government for
$16,405 per year
the ECM (per year)
11. Water Conservation
Number of toilet bowls and urinals to
2,826 Toilets
be installed
299 Urinals
Number of aerator faucets to be
1,388
installed
Number of buildings involved
213
Effects of the ECM
Will reduce water consumption and
wastewater generation thus reducing costs
of water utilization throughout MDW.
Amount of water to be saved on an
50,454 million gallons of water per year
annual basis
Total emissions reduction due to the
616 metric tons of CO2, SO2, and Nox
ECM (per year)
Dollar savings to the Government for
$194,792 per year
the ECM
60'd 78101
12. Central Heating Plant Upgrade
Number of plants to be installed
4 plants involved. 2 upgrade with new
equipment and 2 decommissioned
Effects of the ECM
Eliminate #6 fuel oil usage and increase
natural gas consumption and demand
Total emissions reduction due to the
10,685 metric tons per year of CO2, SO2
2,914 MTCe
ECM (per year)
and Nox
Dollar savings to the Government for
$654,794 per year
this ECM (per year)
13. Central Cooling Plant Upgrade
Number of central cooling
1
plants involved
Number of units to be installed
1 central plant
Effects of the ECM
The Chiller will tie into existing
distribution lines and electrical interfaces
Total kWh avoided with the
269,229 kWh avoided per year
53 MTCe
ECM
Dollar savings to the
$20,746 per year
Government for the ECM
The Military District of
Washington
ESPC
Viron/Pepco
Viron/Pepco Organization
Viron Corporation and Pepco
Services Inc.
General partnership
Partnership formed May 1996
Fully staffed local offices
Combined financial backing of two multi-
billion dollar parent corporations
Combined energy project/conservation
experience of over 40 years
Viron & Pepco Corporate History
Viron Corporation
Pepco Services Inc.
Formed 1974 as an independent
A subsidiary of PEPCO formed in
energy engineering company
1995
Completed over $150 million in
PEPCO has serviced the federal
ESPCs
government for over 100 years
Became a subsidiary of York
In-depth knowledge of Washington
International in1988
metro area and federal contracting
Engineering oriented with an
PEPCO initiated DSM Programs in
extensive modeling capability
the mid-1980s
VA VISN 5 -$15 mil ESPC 5
IRS HQ - $12 million energy project
Hospitals
USPS DC/MD. $6.8 mil 220
USPS- Detroit - $9 mil -144 facilities
facilities
Fort Monmouth -$3.5 Mil Energy
DOI HQ -$2.5 Mil Chiller plant,
project
lighting DOD/Hoffman- $4 Mil
HVAC, Lighting,
Benefits of the Viron/Pepco/MDW
Partnership
Viron
Pepco
MDW
Successful
Experience
Stability
Ft Belvoir
and
MDW
and
Ft AP Hill
Depth
+
Commitment
+
Ft Myer
=
ESPC
of a Proven
of a Local
Ft McNair
National
Utility
Ft Meade
Project
ESCO
ECM Benefits
Reduced energy cost
Lower maintenance cost
Infrastructure improvement
Decreased pollution levels
Reduction in CFCs and PCBs
Better indoor air quality
Improved lighting
Improved occupant comfort and productivity
ECM Categories
1. Cooling unit retrofit
8. Energy Management
2. Cooling control retrofit
Control System
3. Air handling system
9. Building envelope
retrofit
retrofit
4. Economizer
10. Exhaust heat recovery
implementation
11. Water conservation
5. Heating unit retrofit
12. Central heating plants
6. Heating control retrofit
13. Central cooling plants
7. Lighting retrofit
14. Misc. Technologies
15. Asbestos Abatement
Capital Investment
Fort Meade -
$20.8 Million
Fort Myer -
$ 5.0 Million
Fort McNair - -
$ 5.5 Million
Fort Belvoir - -
$29.9 Million
Fort A. P. Hill -
$ 5.6 Million
Total Investment - -
$65.5 Million
Buildings included in the project - 888
MDW - ECM Summary
ECM
Capital
Number
ECM Type
Investment
1
Cooling Unit Replacement/Retrofit
$16,772,143
2
Cooling System Control Retrofit
$ 203.414
3
Airside VAV/VFD drives
$ 2,459,286
4
Economizer Implementation Retrofit
$
9,629
5
Heating Unit Replacement/Retrofit
$ 6,177,147
6
Heating System Control Retrofit
$ 977,197
7
Lighting Retrofit/Replacement
8,690,745
8
Energy Management Control System
$13,730,740
9
Building Envelope Retrofit
$ 1,170,892
10
Exhaust Heat Recovery
$ 200,054
11
Water Conservation
$ 1,750,453
12
Central heating Plant Upgrade
$ 7,342,967
13
Central Cooling Plant upgrade
$ 688,547
14
Miscellaneous Technologies
$ 3,000
15
Building Asbestos Abatement
$ 529,433
Total
$65,562,100
CO2 Mg/yr
S02 Mg/yr
Nox Mg/yr
&
Licate & & Plant Licorate for so state ECM Technical 14
MDW Emissions Savings
10 Central 11 Fart Carrital Coling
W MDW Emissions a Savings
, TRYOR'S valer recovery
5 ITMESIE effective
ECM Category
retronks 5 night Legrations control Building
a Health and Health repiscement system 3. control Energy
20.000
18.000
16.000
14.000
12.000
10.000
8.000
6.000
4.000
2.000
Teplace Coding 0 emen suiten retronk \ & NAV Econordan with
metric tonnes (Mg)
Green House Gas Reductions
Site
Electric kWh
Fuel MMBtu
TOTAL MMbtu
Fort Myer
9,745,998
17,947
51,209.69
Fort McNair
5,853,418
5,009
24,987.12
Fort AP Hill
1,648,877
8,993
14,620.12
Fort Meade
23,482,404
158,602
238,747.14
Fort Belvoir
48,761,155
103,462
269,883.62
TOTAL
89,491,852
294,012
599,448
TOTAL MDW EMISSIONS REDUCTION due to ESPC per Year
for all fuel use
Total emission
for all kWh avoided
avoided
reduction in Mg
lbs/MMBtu
CO2 Mg/yr
1.61bs/wl
64,935.29
22,667
87,602
170.0
SO2 Mg/yr
369 47.54
74
443
121
0.552817
Nox Mg/yr
173
15
19
192
34
0140
TOTAL MDW EMISSIONS REDUCTION due to ESPC over 15 life of contract
for all fuel use
Total emission
for all kWh avoided
avoided
reduction in Mg
CO2 Mg/life
974,029
340,003
1,314,032
SO2 Mg/life
713
1,106
1,819
Nox Mg/life
226
280
506
Mg = tonne, metric
Summary of Benefits
1998 TOTAL
TOTAL CO2
1998 TOTAL
1998 TOTAL
THERMAL (FUEL)
TOTAL 1998
EMISSIONS,
1998 TOTAL
1998 TOTAL
ELECTRIC
THERMAL (FUEL)
COST
ENERGY USE,
METRIC
ENERGY
KWH
COST
USE, MMBTU
($5.28/MMBTU)
MMBTU
TONS
COST
TOTAL MDW 1998 FISCAL YEAR
297,085,848
$ 22,988,755
1,540,158
$
8,129,146
2,554,112
334,304
$ 31,117,901
SAVINGS WITH ESPC
88,614,871
$
3,869,643
293,462
$
1,548,929
595,905
87,602
$ 5,418,572
SAVINGS AS PERCENT OF TOTAL
29.8%
16.8%
19.1%
19.1%
23.3%
26.2%
17.4%
Project Summary
Savings Over Project life
$224 Million
Investment in equipment
$65.5 Million
Total Annual Guaranteed Savings
$13.7 Million
Emissions Eliminated Annually
86,000 Metric Tons
MMBTU Fuel Saved Annually
294,000
kWh Electricity Saved Annually
89,000,000
Gallons water saved Annually
50,000