1. Purchasing Renewable Power/RECs in the Federal Sector Federal Environmental Symposium May 4, 2006 Chandra Shah, NREL 303-384-7557, chandra_shah@nrel.gov

2. Overview Federal Renewable Requirements & Guidance Renewable Options Federal Procurement Agencies Renewable Purchase Considerations Current Federal Activity Selling the Idea -Why are Renewables Important?

3. 3  EPACT 05, Section 203 - 3% in FY07-09, 5% in FY10-FY12, 7.5% in FY13 & each fiscal year thereafter.  Renewable Definition - solar, wind, biomass*, landfill gas, ocean (including tidal, wave, current, and thermal), geothermal, municipal solid waste, or new hydroelectric generation capacity achieved from increased efficiency or additions of new capacity at an existing hydroelectric project  Renewable energy amount shall be doubled if the renewable energy is produced on-site, on federal lands or on Native American land & used at a Federal facility  Renewable goal guidance status (See FEMP web site http://www.eere.energy.gov/femp/technologies/renewable_workinggroup.cfm) *There is a detailed biomass definition in the law Federal Renewable Goal

4. Technologies Renewable Pwr/RECs Solar Thermal Wind Biomass GSHP PV Federal Renewable Use Renewable Power/RECs Ground Source Heat Pump Biomass Thermal Photovoltaics (PV) Wind Solar Thermal TOTAL *2.5% = 1395 GWh Renewable Power/RECs Ground Source Heat Pump Biomass Thermal Photovoltaics (PV) Wind Solar Thermal TOTAL *2.5% = 1395 GWh 2246179108341810259522461791083418102595GWhGWhGWhGWhGWhGWhGWh*GWhGWhGWhGWhGWhGWhGWh*

5. Who is Buying Renewable Power/RECs? (As of Sept 2005)

6.  Renewable Energy Certificates (“Green Tags”)  Competitive Electricity Markets  Utility Green Pricing Program –Best programs are those that exempt renewable customers from fuel cost adjustments (ex. Austin Energy) Renewable Purchasing Options

7. Renewable Energy Certificates (RECs) Also referred to as Green Tags, Tradable Renewable Certificates, Green Energy Certificates/Credits, etc An alternative renewable purchase method that is flexible and available anywhere A renewable facility produces two distinct products, that can be unbundled and sold separately: –Generic electricity (sold into the local grid) –RECs (the environmental and other renewable attributes) Utility provider and bill does not change Can be sold at retail or wholesale level

8. REC Diagram Renewable energy generation Electricity Environmental and other renewable attributes “Renewable Power” “Renewable Energy Certificates”

11. Defense Energy Support Center (DESC) –John Nelson (703) 767-8523, Andrea Kincaid (703) 767-8669 General Services Administration (GSA) –Ken Shutika (202) 260-9713 GSA Supply Schedule – Kathy Sewell (253) 931-7992 Western Area Power Administration (Western) –Theresa Williams (720) 962-7170 Federal Renewable Power/REC Procurement Contacts

12. Renewable Product Type Purchase Amount Contract Length Renewable Type Location of Renewable Resources Renewable On-Line Date (Definition of “New”) Emissions Credit/Allowance Ownership Third Party Verification/Annual Audit Evaluation Criteria (Best Value vs. Low Price) Considerations

13.  FY05 Buys - 560 GWh for Air Force Air Combat Command (ACC) and Air Education and Training Command (AETC), Dyess AFB, EPA, GSA regional REC buys, NASA Johnson Space Center, DOE headquarters, national buys for DOC, VA, DHS and IRS  Western Area Power Administration REC Procurement - Fort Carson and various DOE laboratories/sites, including NREL (enabled DOE to meet their Secretarial renewables goal of 3% by 2005)  Current/Upcoming Activity – NIH, USPS, Western REC buy, GSA wind purchase in Texas, exploring other renewable power purchases to stabilize electricity costs Renewable Activity

14. Target the decision-makers Find allies in other parts of your organization Link to agency mission if possible Funding sources – budget request (per EO 13123 Section 301), energy efficiency savings (per EO 13123 Section 404c), year-end funding, state renewable funds (Database of State Incentives for Renewable Energy (DSIRE) at http://www.dsireusa.org) Regulations - FAR Part 23.2 (Energy and Water Efficiency and Renewable Energy) & 23.7 (Contracting for Environmentally Preferable Products and Services) Selling the Idea Why are Renewables Important?

15. Be prepared with a variety of selling points –Manage exposure to rising/volatile energy prices –Meet federal EPACT 05 RE requirement and EO13123 greenhouse gas emission goals –Meet other organization goals –LEED Certification –Reduce dependence on fossil fuel imports – “homegrown” energy instead –Fuel diversity –Economic development –Market transformation –Lead by example –Improve community relations –Strengthen employee morale –Positive media exposure & possible awards –Demonstrate environmental stewardship –Reduced water use

16. Beth Shearer, former FEMP Director, Felicia Marcus (EPA Regional Administrator), Linda Davis (SMUD), Rosemary Corbin (Richmond Mayor ) EPA Richmond, CA Press Conference (7/23/99)

17. Participating Agencies with former Department of Energy Secretary Bill Richardson and group of children Colorado Wind Purchase Initiative Press Conference (4/27/00)

18. Army and Other Renewable Purchasers Community Energy/Washington Gas Energy Services Press Conference (9/30/02)

21. 2002 U.S. Generation Mix Resource Mix% Coal50% Natural Gas18% Nuclear 20% Hydro 7% Oil 2.5% Renewables 2.4% Source: EIA Electric Power Annual 2002, Table 1.1 “Net Generation by Energy Source –Total (All Sectors)”

22. Natural Gas Prices

23. Source: Nobel laureate, Richard Smalley

24. Renewable Contacts & Web Sites FEMP HQDavid McAndrew 202-586-7722 david.mcandrew@hq.doe.gov FEMP HQ Anne Crawley 202-586-1505anne.crawley@ee.doe.gov NRELChandra Shah 303-384-7557chandra_shah@nrel.gov LBNLBill Golove510-486-5229whgolove@lbl.gov PNNLMike Warwick503-417-7555mike.warwick@pnl.gov FEMP Renewables - http://www.eere.energy.gov/femp/technologies/renewable_energy.cfm EPACT 2005 - http://energy.senate.gov/public/_files/ConferenceReport0.pdf Green Power Network - http://www.eere.energy.gov/greenpower/index.shtml