Phoenix Convention Center Phoenix, Arizona Introduction to UESC Webinar Project Financing UESC...
-
Upload
cleopatra-melton -
Category
Documents
-
view
222 -
download
2
Transcript of Phoenix Convention Center Phoenix, Arizona Introduction to UESC Webinar Project Financing UESC...
Phoenix Convention Center • Phoenix, Arizona
Introduction to UESC Webinar
Project Financing UESC Basics: Project Financing Through your Utility
Julia KelleyOak Ridge National Laboratory
August 11, 2015
Energy Exchange: Federal Sustainability for the Next Decade2
DOE Federal Energy Management Program
Mission
The U.S. Department of Energy's Federal Energy Management Program (FEMP) works with key individuals to accomplish energy change within organizations by bringing expertise from all levels of project and policy implementation to enable Federal agencies to meet energy-related goals and provide energy leadership to the country.
Energy Exchange: Federal Sustainability for the Next Decade3
UESC Presentation Agenda
• Basics• Authorizing Legislation• Contracting Overview• UESC Process• UESC Resources
Presentation Agenda
Energy Exchange: Federal Sustainability for the Next Decade4
What are UESCs?
Contracts that allow utilities to provide Federal agency sites in their service territory with comprehensive energy and water efficiency
improvements and demand-reduction services.
• Assesses the opportunities• Provides financing through a third party• Purchases the equipment and gets it installed• Assures equipment performance and standards of service
• Pays utility over term of contract from cost savings achievedAgency
A UESC is a Partnership
Utility
Energy Exchange: Federal Sustainability for the Next Decade5
0102030405060708090
100
Pre-construction Payment Period End of Contract Term
Thou
sand
s
Project Re-payment w/ Financing
Cost of Energy Cost of Project & Financing Residual Savings
Project Re-Payment with Financing
Energy Exchange: Federal Sustainability for the Next Decade6
Funding Strategy
UESC projects can be funded through appropriations and financing
Any combination of appropriations and financing is allowed.
100% Financing
100% Appropriations
42 USC 8253 (EISA of 2007) reinforces funding flexibility
Energy Exchange: Federal Sustainability for the Next Decade7
Benefits of doing UESC projects
For the Utility Company:
• Increased incentive program impact and participation
• Reduce need for new generation
• Improve reliability through improved customer load profiles
• Assist federal customer goals
• Meet Public Utility Commission Requirements
• Provide exemplary customer service
For the Federal Agency:
• Meet energy and greenhouse gas mandated goals
• Meet water efficiency goals
• Obtain low cost financing for projects
• Work with knowledgeable trusted professional energy partner
• Make energy cost savings infrastructure improvements
• Replace outdated energy-consuming equipment
• Limited source or sole-source contracts
Energy Exchange: Federal Sustainability for the Next Decade8
• A UESC can be any size
• A UESC can include energy, water and renewable energy measures
• A UESC can include commissioning
• UESCs may not be available to all facilities
• Utility may be new to this type of contracting
• Contract process and documents arenot prescribed
• Contract term
Considerations
Energy Exchange: Federal Sustainability for the Next Decade9
Utility Energy Savings
UESCs Are Utility Incentives – They Vary by Utility
42 USC 8256 (EPAct 1992) authorizes the
use of utility incentives
TECHNICAL
Audits
Feasibility Studies
Engineering & Design
Installation
Performance Assurance
Training
O&M Services
Project Management
FINANCIAL
Rebates/Incentives
Project Financing
Energy Exchange: Federal Sustainability for the Next Decade10
EPACT 1992: Codified as 42 USC 8256; L.G. 102-486
Section 546(c) Utility Incentive Programs: Agencies
• Are authorized and encouraged to participate in utility programs generally available to customers
• May accept utility financial incentives, goods, and services generally available to customers
• Are encouraged to enter into negotiations with utilities to design cost effective programs to address unique needsof facilities used by the agency
All Federal Agencies
UESC Authorizing Legislation & Regulations
Energy Exchange: Federal Sustainability for the Next Decade11
10 USC 2913 Energy Savings Contracts and Utilities
Title 10: Armed Forces; Chapter 173• Encourages participation in gas or electric utility programs for the
management of energy demand or for energy conservation
• Accept financial incentives, goods and services generally available from the utility
• Direct negotiation with energy savings contractors selected competitively and approved by the utility
• Repay with funds available for the purchase of utility services
DOD Agencies
UESC Authorizing Legislation & Regulations
Energy Exchange: Federal Sustainability for the Next Decade12
Agencies within the franchised service territory may order Energy Management Services for DSM and improved efficiency
• A UESC Task Order is placed underthe AWC
• TOs for UESCs may have terms upto 25 years: GSA Legal Opinion (but agencies can differ on this)
OPTIONALMaster Agreement(Contract Terms &
Conditions)
GSA Utility
Areawide Contract
Agency Utility
Task Order
Where an AWC Exists
Energy Exchange: Federal Sustainability for the Next Decade13
GSA Energy Conservation Measure (ECM) Criteria
1. The ECMs must reduce energy or water consumption or demand;
2. The ECMs must be directly related to energy or water use or demand reduction;
3. The majority of the work must be for 1. or 2.; and,
4. The ECMs must be an improvement to real property(land, buildings and anything attached and integrated, not personal property)
Energy Exchange: Federal Sustainability for the Next Decade14
Agencies can place a Separate Contract for Energy Management Services,when no AWC is available
Separate Contract/Master Agreement
(Contract Terms & Conditions)
Utility
UESCTaskOrder
Agency
Where an AWC Does Not Exist
Energy Exchange: Federal Sustainability for the Next Decade15
UESC With a Basic Ordering Agreement (BOA)
• When an AWC does not exist or when an Agency’s Policy requires the use of a BOA
• When there is potential for more than one UESC Task Orders
FAR Part 16.703UESCTaskOrder
UESCTaskOrder
Agency Utility
Basic Ordering Agreement
UESCTaskOrder
Utility Energy Services – Contracting Vehicles Overview
Energy Exchange: Federal Sustainability for the Next Decade16
UESC Task Order (TO) Award Process
Overarching Documents
TO Award for UESCStep1: Acquisition Planning through Utility Selection
Step 2: Project Development
Implementing the TOStep 3: Design and Installation
Step 4: Post-Acceptance
Area-wide contract Master Agreement (Optional)
Agency developed initial SOW
Acquisition strategy / planning
Draft initial J&A
Survey interest of eligible
utilities
Provide fair consideration to
interested utilities
Agency selects utility and notifies
all utilities of selection
EMSA for PA & FS
Utility conducts / Agency supports and evaluates PA
Utility conducts / Agency supports and evaluates FS
Agency requests firm-fixed price
for D&I
Finalize J&A
Award D&I TO
Report project to FEMP &
GSA
Utility submits design; agency
reviews/approves
Utility installs ECMs / Agency monitors
Utility performs / Agency receives O&M training,
commissioning, etc.
Utility proves ECMs performance
Agency accepts projects
Invoices and Payments Ongoing performance assurance and annual savings verification Close out contract at end of term
Energy Exchange: Federal Sustainability for the Next Decade17
Preparation 3-7 months
• Pre-work• Site Needs• Funding• Training• Initial Contract Document
Project Development to Award 3-10 months
Identify ECMsProposalFinal Contract Documents
Installation and Post Installation6 months to several years
• Installation and Performance• Post Installation
UESCProcess
UESC Process
Energy Exchange: Federal Sustainability for the Next Decade18
The minimal performance assurance plan recommended by the Federal Energy Management Program for alternatively financed UESC energy conservation measures is:
• Establish baseline pre-installation
• Start-up performance verification (based on measured date) prior to acceptance
• Performance verification at the end of the warranty period (based on measured data)
• Operations and maintenance training (required in the more common instance where the agency continues to operate and maintain installed equipment)
• Provision of continuing training throughout the contract period as specified in the contract as determined by the needs of the facility
• Periodic inspections and verification of appropriate O&M performance
• Performance discrepancy resolution
http://www1.eere.energy.gov/femp/pdfs/41898.pdf
UESC Performance Assurance Plan
Energy Exchange: Federal Sustainability for the Next Decade19
• Types of contracts• Laws and regulations• Technology resources• Case Studies• Training Opportunities
Utility Energy Service Contracts Guide: A Resource for Contracting Officers Working on UESC Projects
http://energy.gov/eere/femp/utility-energy-service-contracts
FEMP UESC Website
Energy Exchange: Federal Sustainability for the Next Decade20
• Federal Utility Partnership Working Group (FUPWG) Seminar– Establishes partnerships and facilitates communications among
Federal agencies and utilities– Develops strategies to streamline sound projects– Next meeting: Tues-Wed Nov. 3 & 4, 2015 Houston, TX
• Energy Lawyers & Contracting Officers Working Group meeting Nov. 4 • UESC live classroom workshop Nov. 5-6
http://energy.gov/eere/femp/federal-utility-partnership-working-group
Getting Started – Partnering Avenues
Energy Exchange: Federal Sustainability for the Next Decade21
• Monthly live webinars:
• Intro to UESC – August 26
• Placing UESC Task Orders Under the GSA Areawide – Sept. 16
• FEMP On Demand Training
• Customized webinars/ Classroom training– November 5-6 in Houston
https://www4.eere.energy.gov/femp/training/
Additional Training Opportunities
Energy Exchange: Federal Sustainability for the Next Decade22
Direct Project Support• Guide agency teams through the
UESC process• Assist development of contract
documents and provide document templates
• Technical review of audits, feasibility studies, and proposals
• In-depth technical support• Build partnerships and facilitate
relationships
DOE FEMP Sponsored Project Support
Energy Exchange: Federal Sustainability for the Next Decade23
Utility Program Lead
David McAndrew
DOE EERE FEMP
202-586-7722
Webinar Instructor
Julia Kelley
Oak Ridge National Laboratory
865- 574-1013
Contacts