1. Phoenix Convention Center Phoenix, Arizona Solution Showcase GSA’s NDER Program: Doubling the Energy Savings from Financed Projects Kevin Vaughn Schneider Electric [August 11, 2015] Almeric Christian Federal Building, St Croix, U.S. Virgin Islands 100% Net Zero Energy Use and Energy Savings Performance Contracting (ESPC)

2. Energy Exchange : Federal Sustainability for the Next Decade 2 Topics To Be Discussed GSA Support for ESPC Case Study Lessons Learned

3. Energy Exchange : Federal Sustainability for the Next Decade 3 Benefits of ESPC Increased quality and value through: Private-sector expertise in energy efficiency, renewable energy, water conservation, and reduced greenhouse gas (GHG) emissions Built-in incentives for ESCOs to provide high-quality equipment, timely services, and thorough project commissioning Infrastructure improvements that pay for themselves over time Flexible, practical contract and procurement processes from FEMP that ensure each agency achieves its energy-related goals with: Best practices developed over nearly 15 years and hundreds of projects Templates, schedules, contract review tools, and other resources Life-of-contract (LOC) support. Smart program management that: Guarantees energy and related operation and maintenance cost savings Enhances the ability to plan and budget energy, operation, and maintenance accounts Minimizes vulnerability to budget impacts due to volatile energy prices, weather, and equipment failure.

4. Energy Exchange : Federal Sustainability for the Next Decade 4 GSA’s Recent Use of ESPCs National Deep Energy Retrofit Program (NDER)- 2012 Program Management Office (PMO) stood up to standardize and centralize ESPC award process. PMO established a timeline for award process and provided guidance to regional offices Ten ESPC TOs awarded with total value of $172 million investment and $10.8 million guaranteed annual savings 38% average annual energy reduction PMO achieved significant reduction in project cycle time from 20.9 months to 15.9 months (from ESCO selection to TO award) National Deep Energy Retrofit Program (NDER)- 2012 Program Management Office (PMO) to standardize and centralize ESPC award process. PMO established a timeline for award process and provided guidance to regional offices Ten ESPC TOs awarded with total value of $172 million investment and $10.8 million guaranteed annual savings 38% average annual energy reduction PMO achieved significant reduction in project cycle time from 20.9 months to 15.9 months (from ESCO selection to TO award)

5. Energy Exchange : Federal Sustainability for the Next Decade 5 GSA’s Recent Use of ESPCs National Deep Energy Retrofit Program (NDER)- 2012 Almeric Christian Federal Building

6. Energy Exchange : Federal Sustainability for the Next Decade 6 Almeric Christian Federal Building GSA Region 2 Schneider Electric selected in 2012, through NDER, to implement ESPC TO awarded September, 2013 Construction completed September, 2014 Project parameters $6.4 million investment $0.5 million/year guaranteed savings 19 year finance term

7. Energy Exchange : Federal Sustainability for the Next Decade 7 Key Facts Building Characteristics: Location: St. Croix, Virgin Islands Floor Area: 57,872 ft 2 Original Construction: 1989 Tenant: Federal Courts Baseline EUI: 57 kBtu/ft 2 Local Utility Rate: $0.52/kWh Project Details: Project Duration: Approx 24 months, 12 each for development & construction Investment Value: $6.4 million Projected Energy Reduction: 100% Projected Savings: $500,000/year Contract Term: 19 years

8. Energy Exchange : Federal Sustainability for the Next Decade 8 Technical Specifications Key ECMs – Building Automation System – Lighting upgrades – Chiller and AHU upgrades Renewables – 462 kW ground-mounted solar PV M&V – Option B: PV system – Option C: all other ECMs

9. Energy Exchange : Federal Sustainability for the Next Decade 9 Scope 670kW PV system New Chillers New substation New air handling units New building automation system (BAS) Lighting upgrade Window film Old Substation Old Chillers New Chiller

10. Energy Exchange : Federal Sustainability for the Next Decade 10 Benefits of the ESPC 100% reduction in grid supplied electricity Stable utility rates Improved lighting and comfort conditions for the tenants New equipment reduces O&M expense Risk of substation failure is eliminated New Chillers New Substation

11. Energy Exchange : Federal Sustainability for the Next Decade Note use of GSA meters to validate utility meters 11 Performance to Date

12. Energy Exchange : Federal Sustainability for the Next Decade 12 Lessons Learned Start security clearance process as early as possible Integrate GSA construction inspector as early as possible Tenant engagement is critical Successful ESPCs are a partnership Communication, communication, communication

13. Energy Exchange : Federal Sustainability for the Next Decade 13 Keys to Success Well-structured communication plan Building tenant buy-in Proactively addressed tenant concerns Consideration of unique project characteristics Utility rates Security requirements Information collection and dissemination processes could be improved More existing asset data needed Standardized central location for all project information

14. Energy Exchange : Federal Sustainability for the Next Decade Questions 14