ESPC ENABLE Program Overview Solutions Showcase Successful Small Projects using ESPC ENABLE ESPC ENABLE Program Overview Mike Holda & Bob Slattery LBNL & ORNL August 13, 2015

Session Agenda DOE FEMP Forest Service Project Experience ESPC ENABLE Overview ESPC ENABLE Process ENABLE Program Status Forest Service Project Experience SoCal Regional California – 11 National Forests Deschutes-Ochoco NF ABM Project Experience Laughlin AFB US Embassy Belize US Embassy Cyprus

Energy Services Company (ESCO) ESPC Review: What are they? Contracts that allow agencies to do energy projects with minimal up-front capital cost and no special appropriations from Congress. Arranges project financing Guarantees cost savings sufficient to cover project costs Energy Services Company (ESCO) Pays ESCO over term of contract from guaranteed cost savings Agency

ESPC Review: Budget Neutral Reallocate the Government’s Utility Bill  Stop paying for waste and pollution  Start paying for efficiency  $ for Energy + Related Operations & Maintenance $ for Energy + O&M Savings Excess Savings Payments to ESCO Before ESPC Performance Period After ESPC Term

ESPC ENABLE: Program Review Guaranteed savings and no up-front costs for smaller facilities or projects Standardized and streamlined process to quickly award projects and realize savings using GSA Schedule 84, SIN 246-53 Targets straight-forward ECMs including lighting upgrades, water conservation, basic HVAC controls, HVAC equipment, and solar PV. FEMP-provided tools and templates assist agencies and ESCOs with project development and contracting tasks. Prescribed basic measurement and verification (M&V) for each ECM.

ESPC ENABLE: ECM Summary Included Not Included Lighting Lamps, Ballasts, Fixtures Controls: Occupancy, Day lighting (on/off, dimming) Solar Lighting (off-grid installations allowed) Water Sanitary plumbing fixtures: sinks, toilets, urinals, showers Irrigation Leak repair Domestic/commercial hot water heaters Water based appliances: dishwasher, ice machine, clothes washer, etc. Heating/Cooling system improvements (cooling towers, once through cooling, condensate reclaim) HVAC Controls Whole building control strategies including: Time/Temperature Set-back Demand/Night Ventilation Advanced Controls 1: Energy Management Control Systems (EMCS) / Building Automation Systems (BAS) HVAC Equipment Basic whole building/system one-for-one replacement 2 of: Window AC units / Electric Baseboard heat Split AC/Furnace Heat Pumps Packaged Terminal Air Conditioner (PTAC) Packaged Single Zone Air Conditioner (PSZ) Roof Top Units (RTU) Single building Boiler/Chiller Central Boiler/Chiller Plants Retro-commissioning based activities Non-building related heating/cooling/ventilation Solar PV Ground, Roof, Parking Canopy mount Fixed and Tracking Arrays Grid Tied and Off-grid Solar Thermal (Hot Water) Hybrid PV/Hot water systems

Quick Comparison of Project Funding Options DOE ESPCs ESPC ENABLE UESCs Contract type TOs under DOE IDIQ GSA Schedule 84 (SIN246-53) GSA Area-wide contracts; Basic ordering agreements Private-sector partner ESCO ESCOs on GSA Schedule 84 (SIN246-53) Serving utility company Eligible facilities Federally owned worldwide Federally owned facilities Where government pays utility bill; where offered/authorized Project size $2 million or larger < $2M; bldgs <200K sq ft and site bundling are anticipated Any ECMs Unlimited Lighting, water, basic HVAC controls, HVAC equipment, and solar PV Savings guarantees and M&V Required Required; simplified M&V Negotiable; performance assurance required for annual scoring O & M ESCO responsible; tasking negotiable Government is responsible; ESCO provides training Negotiable

ESPC ENABLE: Process Cycle Phase 1 Acquisition Planning (1-2 weeks) Phase 2 ESCO Selection (3 weeks) Phase 3 Investment Grade Audit and Award (5 weeks) Phase 4 Installation (8 weeks) Phase 5 Performance Period (<10 years) Projects awarded in 12-16 weeks. Energy/cost savings in 6-8 months.

ESPC ENABLE Process, Acquisition Planning Activities: Estimated timeline - 1-2 Weeks Essential members of the acquisition team are identified Agency hosts kickoff meeting with acquisition team members Agency develops an Acquisition Plan* Agency develops the Request for Quotation/Notice of Opportunity* Agency develops Source Selection Plan prior to receipt of Expression of Interest *Indicates FEMP-provided template Acquisition Planning

ESPC ENABLE Process, ESCO Selection Activities: Estimated timeline - 3 Weeks Request for Quotation/Notice of Opportunity is released Agency prepares Scope of Work (SOW)* ESCOs express interest* Agency evaluates responses based on best value criteria outlined in the RFQ/NOO* Agency notifies unsuccessful offerors* and issues the notice of intent to award (NOITA)* ESCO Selection *Indicates FEMP-provided/required template

ESPC ENABLE Process, Investment Grade Audit to Award Activities: Estimated timeline - 5 Weeks Agency hosts Investment Grade Audit (IGA) kickoff meeting ESCO performs IGA using FEMP-provided survey tools* ESCO submits final proposal*, final negotiations occur Agency awards task order *Indicates FEMP-provided template IGA and Award

ENABLE IGA Tool Overview EnergyPlus Building Simulation Software ENABLE IGA TOOL Water HVAC Lighting HVAC Solar PVWatts NREL web service Solar PV outputs IGA Summary Report Energy and Cost Savings Tables (M&V Plan) Financial TO Schedule #4 (TO-4) ECM Equipment Summaries

IGA/Award: Final Proposal Once the agency reviews the Summary IGA Report, they will request that the ESCO prepare the FP. The FP should adhere to the requirements established in the NOO and the agency’s SOW. The ESCO’s Proposal will consist of the following: A Project Overview A Price Proposal (TO Financial Schedules) A Technical Proposal ECM descriptions Measurement and Verification Plan Management approach Once negotiations complete, agency CO will notify ESCO to solicit financing offers

ESPC ENABLE Process, Installation and Acceptance Activities: Estimated timeline – 8 Weeks Installation Commissioning* Measurement and Verification (M&V)* Agency Acceptance* * Indicates FEMP provided plan templates and report outlines

ESPC ENABLE Process, Performance Period An annual M&V audit is performed to verify the achievement of annual cost savings performance guarantees provided by the ESCO ESCO or agency must perform annual M&V audit Equipment inspections are performed as prescribed in the M&V plan to verify savings achievement Primarily Option A An annual M&V Report* is generated by the ESCO and submitted to the agency * Indicates FEMP provided report outline Performance Period

ESPC ENABLE: Getting a Project Started Verify project sites and scope Confirm site leadership buy-in Commence acquisition planning Populate Notice of Opportunity/RFQ Identify and finalize core team members Schedule project kick-off meeting

ESPC ENABLE: Program Status as of August 2015 Updates in the Program 20 qualified ESCOs under GSA Schedule 84 Nine Small Business vendors IGA tool being converted to web environment 3 awards to date Project Status Multiple projects underway ($18M Pipeline) Project scopes range from one to multiple ECMs Efforts are leading to other performance contracting projects (IDIQ, Schedule 84, UESC)

ESPC ENABLE: Agencies and Projects Agencies Developing Projects DHS: ICE, CBP DOD: USAF DOS GSA USDA: USFS 3 awards 8 under development Acquisition Planning ESCO Selection IGA & Award Installation & Acceptance Performance Period

FEMP Federal Project Executives (FPEs) – Covering ESPCs and All AFOs – Northeast Tom Hattery Northeast Region plus State Dept. 202-256-5986 thomas.hattery@ ee.doe.gov WestMidwest Scott Wolf Western Region including N. Marianas, Palau, Guam, American Samoa; plus East, South, and Central Asia; the Pacific; and Near East 360-866-9163 wolfsc@ornl.gov SoutheastMidwest Doug Culbreth Southeast Region plus Europe and Western Hemisphere 919-870-0051 culbrethcd@ornl.gov Ira Birnbaum FEMP ENABLE Lead 202-287-1869 Ira.Birnbaum@ee.doe.gov http://energy.gov/eere/femp/espc-enable

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