Federal Energy Management Program Renewable Working Group Renewable Power Purchases at Federal Facilities By David McAndrew Federal Energy Management Program

Why Purchase Renewable Power? Demonstrates Federal Leadership Relatively easy way to meet energy conservation and greenhouse gas goals Preferable for agencies with limited capital budgets Allows generation to be sited in most economical location Helps grow market to critical size Promotes National Energy Security Because you have to meet you RE goal somehow

Federal Energy Management Program Federal Energy Management Goals Executive Order Reduce energy consumption (renewable use counts) –Facility energy per square foot to be reduced by 30 percent in 2005 and 35 percent in 2010 relative to 1985 –Industrial/laboratory energy to be reduced by 20 percent in 2005 and 25 percent in 2010 relative to 1990 Reduce greenhouse gas emissions 30 percent by 2010 compared to 1990 Expand use of renewable energy –2.5% of Federal facility electricity consumption by 2005

Federal Energy Management Program WHAT PURCHASES COUNT TOWARDS GOAL  E.O , Sec 710. “Renewable Energy” means energy produced by solar, wind, geothermal, and biomass.  Does not give a preference to a specific technology  Does not differentiate between types of biomass  E.O Guidance Requirements  Contract must specify renewable purchase requirement  Excludes system supply and state RPS requirements  Purchase must come from new renewable resource  On line after 1990  Should have consistent standard for purchases and on-site

Federal Energy Management Program FEMP Renewable Purchasing Program Direct Assistance Individual agency initiatives Map correlating federal agencies with purchasing opportunities Guidance DESC and GSA Regional/Utility Aggregations WAPA Coordination Federal agencies DESC and GSA Share experiences Share resources EPA GP Partnership Free publicity Demonstrate Leadership Private Initiatives Utility Green Pricing Green-e WRI

Federal Energy Management Program FEMP Renewable Purchasing Program Education & Outreach –Workshops –Presentations –Communications Material Guidebook Green Power Toolkit –Annual FEMP Awards Strategy Development –Making a Federal case for renewable power –Product development for Federal Agencies –Identifying funding opportunities

Federal Energy Management Program Federal Purchasing Methods –Utility Green Pricing Areawide Contract (AWC) Exhibit Utility contract –“If it is a PUC approved rate then it must be just and reasonable” –Solicitation in competitive electricity market General Services Administration (GSA) –Ken Shutika (202) Defense Energy Support Center (DESC) –John Nelson –Renewable Energy Certificates Purchases Can be a tough sell Competitive Purchase?

Federal Energy Management Program Select Federal Renewable Power Purchase Contracts Federal AgencyLocation Gwh Resource Utility Green Pricing 18 AgenciesDenver, CO4.1 Wind DOE -WIPP(Sandia)White Sands, NM1.5 Wind Retail Competitive Electricity Procurements NASA Johnson Texas 10 Wind DOE, GSA, DOA, ArmyWashington DC 44 LFG/Wind Wholesale Competitive Electricity Procurements Edwards AFBCalifornia133 Wind/Bio Renewable Certificate Purchases EPACA,OH,MA,WA21.4 Various

Federal Energy Management Program Premium Funding Sources Direct Appropriations Savings from competitive procurement of electricity or natural gas Bundled into a “Best Value” electricity procurement –FAR Part (Environmentally Preferable Purchasing) can be used as justification for renewables purchase Energy Efficiency Savings SEPs ??

Federal Energy Management Program Renewable Power Purchasing Lessons Learned Load aggregations can lead to big purchases but: –Target big users –Don’t herd cats –Keep it simple Utility green pricing should be a Partnerships –Consider customizing product –Be upfront and clear on sources and benefits “ So, now I understand what renewable power is, What’s this certificate thing you’re trying to sell me?” Anything that costs less than a penny must be a good deal!!! ($0.01 X 5% of load =.0005 per kwh)

Federal Energy Management Program Assistance,Advice,Concerns David McAndrew, FEMP HQ , Chandra Shah, National Renewable Energy Laboratory (NREL) , Bill Golove, Lawrence Berkeley National Laboratory (LBNL) ,