FEMP Biomass Super ESPC Program Presentation to the Renewable Energy Working Group September 10, 2002 Christopher Abbuehl US DOE – PRO

AGENDA –Overview of FEMP Super ESPC Program –Overview of BAMF Tech-Specific Contract –BAMF Contractors & Projects

FEMP Objectives F Reduce building energy use 35% by 2010  Reduce greenhouse gas emissions 30% below 1990 levels by 2010 F Use innovative financing & contract mechanisms F Demonstrate energy technology (showcases)

Executive Order F Section 402: Financing Mechanisms Ü Agencies shall maximize their use of available alternative financing mechanisms, including Energy Savings Performance Contracting.

Executive Order Developing and Promoting Biobased Products and Bioenergy Seeks to stimulate the creation and early adoption of technologies needed to make bioenergy cost-competitive in large markets.

FEMP Alternative Financing Program Energy Savings Performance Contracting (ESPC) is a contracting method whereby the contractor incurs the cost of implementing energy savings measures and is paid from a share of any energy and energy-related savings directly resulting from implementation of such measures during the term of the contract.

$ Basic Concept of ESPC Financing UtilityBill UtilityBill UtilityBill ContractorPayment Govt.Share Govt. Share EnergyCost Saving s Before ESPC Contract During ESPC Contract After ESPC Contract

Key Elements of Super ESPC’s F No capital appropriations required F Energy savings guarantee by ESCO insures system performance F No further competition or solicitations required F FEMP provides technical & contract support

Types of DOE Super ESPC’s F Regionals F COR in each regional office F Contract oversight in Golden, CO F Tech Specific F Solar PV & Solar Parabolic F Ground source heat pump F Biomass & Alternative Methane Fuels

BAMF Tech Specific Super ESPC Assist Federal Facilities in acquiring energy management services to reduce energy consumption and/or energy costs (including related operations and maintenance costs) by using a biomass or alternate methane fuel (BAMF systems) and to implement other energy conservation measures (ECMs).

BAMF Resources Biomass fuels include: dedicated energy crops and trees, agricultural food and feed crop residues, aquatic plants, wood and wood residues, animal wastes, and other waste materials. Alternate methane fuels include landfill methane, wastewater treatment digester gas and coalbed methane.

BAMF Technologies BAMF systems in a variety of applications such as: direct combustion (steam boiler technologies) co-firing (coal & wood) gasification (wood, crops, sludge, animal wastes) gas turbines (including micro-turbines) reciprocating engines fuel cells All conventional energy conservation measures

BAMF Resource Assessments Software programs that match information on federal facilities with specific BAMF resources: Landfills (within 5 miles) Wastewater treatment plants (within 5 miles) Wood waste from 10 or more sources (within 50 miles

BAMF Contractors ESCO’s Awarded IDIQ Contracts Constellation Energy Source DTE Biomass Energy, Inc. Energy Systems Group Exelon Services Federal Group Trigen Development Corporation