Phoenix Convention Center Phoenix, Arizona Retained Energy Savings: A Success Story Track 1 Retained Energy Savings: Putting It into Practice Don JUHASZ, P.E. CEM Defense Logistics Agency, Department of Defense August 12, 2015

Retaining and Using Energy Savings Topics Purpose Governance Program Value Methods of Calculations Fund Usage

Energy Exchange : Federal Sustainability for the Next Decade Briefing Overview Purpose of the DLA Retained Savings Instruction Is to provide DLA policy and procedures for: 1)Identifying and using savings, rebates, and incentive from energy and utility conservation efforts 2)Retention of payments or savings/cost avoidance within financial accounts that are to remain available until expended 3

Energy Exchange : Federal Sustainability for the Next Decade Program Authorization (Governance) Title 10 USC § 2912, Availability and Use of Energy Cost Savings Amount of the funds equal to the amount of energy cost savings realized, shall remain available for obligation until expended, without additional authorization or appropriation. (1) One-half of the amount shall be used for the implementation of additional energy conservation and energy security measures at buildings, facilities, or installations of the Department of Defense or related to vehicles and equipment of the Department, which are designated, in accordance with regulations prescribed by the Secretary of Defense, by the head of the department, agency, or instrumentality that realized the savings. (2) One-half of the amount shall be used at the installation at which the savings were realized, as determined by the commanding officer of such installation consistent with applicable law and regulations, for— (A) improvements to existing military family housing units; (B) any unspecified minor construction project that will enhance the quality of life of personnel; or (C) any morale, welfare, or recreation facility or service. DoD R - Implementing Instructions 4

Energy Exchange : Federal Sustainability for the Next Decade Value of the program The value of the program is… 1.Reward sites that have successful energy conservation programs 2.Develops a method to fund special energy projects that will increase the effectiveness of the site energy conservation program 3.Keeps the money available, so we can combine into a larger project, and we do not have to make poor decisions driven by “use or lose the money” timeframes 5

Energy Exchange : Federal Sustainability for the Next Decade Savings Calculation (part 1) First determine these factors… 6 Savings equals…annual amount saved, adjusted for weather, adjusted for base square footage changes, with a deduction for ESPC or UESC debt repayment.

Energy Exchange : Federal Sustainability for the Next Decade Savings Calculations (part 2) Then place the factors into this equation… 7

Energy Exchange : Federal Sustainability for the Next Decade What did you consume in BTUs adjusted up or down from an average year based on weather changes and the square footage of your inventory. Takes into consideration your monthly base consumption amounts that are not weather dependent (the adjusted amounts are seasonal BTUs above monthly base consumption amounts). Final dollar amounts of retained savings are the negative BTUs differences multiplied by the adjusted utility commodity costs. 8 In Simple English

Energy Exchange : Federal Sustainability for the Next Decade Half of all monies (retained savings and utility incentives) are earmarked for the installation – Use of these funds is authorized by the Site Director or Base Commander – The funds are held at HQ DLA and sent to the installations in their quarterly funding allocations The other half of the monies are held at HQ and are distributed by the DLA Energy Manager, who often funnels the money back to the earning location How do you get the funds? 9

Energy Exchange : Federal Sustainability for the Next Decade What can you do with the funds? Of the base controlled 50%, funds can be used for: – Quality of Life improvements – Energy reduction incentive awards – Energy savings/cost avoidance minor construction projects – Morale support projects DLA at Susquehanna used their funds to build a solar domestic water heating system, upgrade the base bowling alley, and install point-of-use heaters controlled by motion detectors in warehouses that are kept at minimal temperatures DLA at Columbus used its funds to buy a boiler, install a VFD fan controller, buy J6 materials to support the EMCS and meter projects, and “seed money” to fund an energy survey. 10

Energy Exchange : Federal Sustainability for the Next Decade QUESTIONS Don JUHASZ, P.E. CEM Defense Logistics Agency, Department of Defense