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At least 37 records · Page 2

ESPC ESA Training Series: Photovoltaic (PV) Project Considerations

This training covers technical, economic and other photovoltaic (PV) project considerations. Technical topics include cost-effectiveness, resilience, cybersecurity, and electrical considerations. In addition, other topics, such as compatibility with agency mission, site plans, coordination with the serving utility, the National Environmental Policy Act, and agency approval requirements. Considerations specific to third-party owned/third-party financed PV projects are also covered, as well as available resources and templates for project development. The training also includes a recap of the first session in the Energy Savings Performance Contracts Energy Sales Agreements (ESPC ESA) Webinar Series.

37 INORGANIC, ORGANIC, PHYSICAL, AND ANALYTICAL CH↗

Analysis of Ground Source Heat Pump ECMs: Implemented Under DOE ESPC IDIQ Contract

Several federal performance and decarbonization objectives are driving the U.S. government to transition to net-zero emissions across the federal building portfolio. The overarching purpose of this Federal Energy Management Program (FEMP)-Geothermal Technologies Office (GTO) work is to support federal facilities in accomplishing the administration’s federal building decarbonization goals. Creating awareness of existing geothermal (or ground-source) heat pump (GHP) systems deployed on federal property, implemented using performance contracts and evaluating the energy and environmental impacts of these systems, this work will assist federal facilities in considering inclusion of GHP technology energy conservation measures (ECMs) in future performance contracting project awards. This report summarizes analyses of data from GHP ECMs installed under the DOE ESPC IDIQ contract across various climate areas and geographic locations, agencies, and building use types. Through the analysis of proposed GHP ECMs and understanding key metrics on implemented GHP systems in a variety of applications, FEMP and GTO can further support federal agencies in meeting decarbonization and net-zero building goals by evaluating and incorporating GHP systems into performance contracts and communicate the benefits of this technology.

15 GEOTHERMAL ENERGY↗

Leveraging Energy Sales Agreements (ESA) Under ESPC ENABLE and DOE's IDIQ Contract

There is an increasing interest in solar photovoltaics, battery energy storage systems, and geothermal heat pumps to help meet decarbonization and resilience goals. However, facility managers may not know that energy sales agreement (ESA) contracting can be an effective, efficient, and lower cost way to procure and install these projects. FEMP, national labs, and agency partners will discuss best practices and examples that attendees may be able to leverage at their own sites.

DOE FEMP↗

How To Determine and Verify Operations and Maintenance Savings in Energy Savings Performance Contracts

Operations and maintenance (O&M) savings frequently occur in energy savings performance contracts (ESPCs). During FY 2022, 37% of reported annual cost savings for projects awarded under the U.S. Department of Energy (DOE) ESPC indefinite delivery indefinite quantity (IDIQ) contracts and in the performance period were due to O&M or other energy- and/or water-related cost savings, with the balance (63%) from utility cost savings (i.e., energy or water cost savings). Sometimes the energy- and water-related cost savings are acknowledged and included in payments within ESPCs; other times, for various reasons, they are not. As presented in this guide, FEMP recommends including energy- and water-related cost savings that are O&M (including related repair and replacement) savings in the financial aspects of an ESPC, to the extent such savings can be documented. Inclusion of these savings will help augment project scopes and/or lower interest costs (by shortening financing terms). However, there is a burden of proof as to what constitutes acceptability in O&M savings that needs to be carefully considered and documented in individual projects. Beyond promoting a key tenet used in U.S. federal performance contracting—that savings must be from actual budgets and therefore based on the level of O&M that is actually occurring, not what should have been performed—FEMP also recommends good practice in establishing and documenting O&M baselines, formulating the rationale for baseline adjustments during the performance period, and conducting ongoing verification activities. This document concludes with five examples of how O&M savings may be handled, in situations ranging from the partial displacement of O&M contracts to consolidation and “virtualization” of servers in data centers. A key theme that permeates this guide is the importance of thoroughly documenting all conditions and assumptions used in the development of and accounting for O&M costs and savings throughout the ESPC life cycle, from baseline-setting to measurement and verification (M&V) of the savings during each year of the performance period. Doing so not only prevents internal claims of non-performance (especially in the case of staff turnover during the contract term), but also simplifies ordering agency and energy service company (ESCO) response in the event of scrutiny from oversight organizations, such as government audits. While this guide focuses on federal ESPCs, it may also be applicable when O&M savings are included in utility energy service contracts (UESCs) and non-federal ESPCs.

Voss, Phil↗

Energy Savings Performance Contract Energy Sales Agreements

An energy savings performance contract energy sales agreement - referred to as an ESPC ESA or ESPC with an ESA - is a project structure that uses the multiyear ESPC authority to implement distributed energy projects on federal buildings or land. The distributed energy project implemented under an ESPC ESA is referred to as an ESA energy conservation measure, or ESA ECM.

ENERGY PLANNING, POLICY, AND ECONOMY↗

Energy Savings Performance Contracting for Small Projects

Energy Savings Performance Contracting (ESPC) is a budget-neutral approach to make building improvements that reduce energy and water use and increase operational efficiency. ESPC can help public-sector planners use tomorrow’s energy savings to fund today's facility and infrastructure upgrades. This resource highlights strategies and case studies for implementing ESPC in smaller towns, rural counties, and small school districts to complete energy upgrades and maximize energy and cost savings.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Procurement Options for Low Temperature Geothermal Technologies at Federal Facilities

Federal agencies are moving towards more efficient and resilient facilities by increasingly implementing energy projects in an effort to meet federally mandated goals, agency needs, and administration priorities. Low temperature geothermal technologies, which include geothermal heat pumps (GHP) and district heating systems, can contribute to meeting these goals. These technologies provide facilities with heating and cooling while reducing facility energy use and improving resilience. However, in order to implement these solutions, federal facilities must identify and execute a strategy for the procurement of these technologies. Federal facilities have successfully completed energy efficiency projects using a variety of procurement options. The purpose of this document is to provide federal agencies with a comprehensive overview of the procurement options available for low temperature geothermal technologies and other energy efficiency projects. The procurement options discussed include third-party financing mechanisms such as energy saving performance contracts (ESPCs), ESPC energy sales agreements (ESPC ESAs), and utility energy service contracts (UESCs), as well as dedicated funds in the form of federal grants and appropriated funds.

15 GEOTHERMAL ENERGY↗

Recognizing and Assigning Risks and Responsibilities Using the Risk, Responsibility, and Performance (RRP) Matrix

The Risk, Responsibility, and Performance Matrix (RRP Matrix) is the energy savings performance contract (ESPC) document that focuses on 16 areas of risks and responsibilities in an ESPC project. The RRP Matrix summarizes and documents the contractor (energy service company, i.e., ESCO) and ordering agency’s agreements about allocating risks and responsibilities – to the ESCO, to the ordering agency, or shared. Ordering agencies and ESCOs should be mindful, however, that the ESCO remains responsible for achieving energy savings guaranteed under the ESPC, notwithstanding the allocations of risks, responsibilities, and performance.

Walker, Christine↗

An Ally in Your Corner: Benefits of Using Owner's Representatives

This short guide provides prospective ESPC customers with key considerations for retaining an owner's representative ("owner’s rep"), specifically regarding recommended areas of competency and qualifications. It also provides a summary of resources to help with finding or soliciting owner's rep services. This information may also be valuable for ESPC program administrators considering how to promote the use of owner’s reps for projects in their state.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Analyzing the Impact of CryoSat-2 Ice Thickness Initialization on Seasonal Arctic Sea Ice Prediction

Twin 5-month seasonal forecast experiments are performed to predict the September 2018 minimum ice extent using the fully coupled Navy Earth System Prediction Capability (ESPC). In the control run, ensemble forecasts are initialized from the operational US Navy Global Ocean Forecasting System (GOFS) 3.1 for the ocean and sea ice but do not assimilate ice thickness data. Another set of forecasts are initialized from the same GOFS 3.1 fields but with sea ice thickness derived from CryoSat-2 (CS2). The Navy ESPC ensemble mean September 2018 minimum sea ice extent initialized with GOFS 3.1 ice thickness was over-predicted by 0.68 M sq.km (5.27 M sq.km) versus the ensemble set of forecasts initialized with CS2 ice thickness that had an error of 0.40 M sq.km (4.99 M sq.km), a 56% reduction in error. The September mean Integrated Ice Edge Error (IIEE) shows a 19% improvement for the entire Arctic with the CS2 data versus the control run. Comparison against Upward Looking Sonar (ULS) ice thickness in the Beaufort Sea reveals a lower bias and RMSE with the CS2 forecasts at all three moorings. Ice concentration at these locations is also improved, but neither set of experiments show ice free conditions as observed at moorings A and D.

time-lagged ensembles↗

Federal Energy Savings Performance Contracts Frequently Asked Questions on the Scope of 42 U.S.C. § 8287 et. seq.

The U.S. Department of Energy's Federal Energy Management Program (FEMP) is issuing this document to provide clarifications and guidance on issues commonly raised regarding the scope of 42 U.S.C. § 8287 et seq. This document is intended to supplement FEMP's extensive collection of materials that are available to assist federal agencies execute successful energy savings performance contracting (ESPC) projects.

42 U.S.C. § 8287 et. seq.↗

Supplement to M&V Guidelines: Measurement and Verification for Performance-Based Contracts Version 4.0

Measurement and verification (M&V) are key to determining and confirming the continued operation of, and savings associated with, performance-based contracts. The Federal Energy Management Program (FEMP) updates these guidelines to reflect the evolution of M&V to incorporate industry best practices and ensure that savings from these performance-based projects are properly planned, communicated, and realized. FEMP released M&V Guidelines: Measurement and Verification for Federal Energy Projects Version 3.0 in 2008. This document was developed with input from industry-government working groups, previous M&V guideline authors, and national laboratory subject matter experts. The document provided the methods and guidelines, with a focus on federal energy savings performance contracts (ESPCs). When FEMP released M&V Guidelines: Measurement and Verification for Performance-Based Contracts Version 4.0 in 2015, FEMP expanded the intended audience to include anyone (energy managers, procurement officers, and contractors) involved in implementing performance-based contracts. The streamlined M&V Guidelines Version 4.0 provided the procedures and guidelines needed to quantify savings resulting from installing energy-efficient equipment, water conservation, improved operation and maintenance (O&M), renewable energy, and cogeneration projects with a performance-based contract; however, it removed some of the associated details on topics such as developing regression models and sampling plans. The details and information provided in M&V Guidelines v. 3.0 are still pertinent to M&V for performance-based contracts. The objective is to keep FEMP M&V version 4.0 condensed, providing the reference document for specifying M&V methods and procedures and a resource for developing project-specific M&V plans; this supplement provides additional details. The content of this supplement has been updated to include pertinent revisions between M&V version 3.0 and M&V version 4.0 by providing details and updating the content to ensure relevancy.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Internal Financing for Carbon Reduction Projects

This fact sheet summarizes 6 common internal financing modes and provides examples for each: Capital Expenditure/Operating Outlay, Self-Funded Energy Performance Contracts (ESPC), Carbon Fee Funds, Green Bonds, Green Revolving Funds, and Capital Investment Funds.

financing, carbon reduction, carbon emissions, ESP↗

Best Practices for Smart Grid-Interactive Efficient Building Ready Performance Contracts

Grid-interactive efficient building (GEB) measures reduce costs and optimize energy use for additional grid services by coordinating building energy loads and providing continuous demand management. Incorporating GEB energy conservation measures (ECMs) in performance contracts is reliant upon multiple factors. These factors include site selection with utility tariffs and incentives favorable to GEB, the identification of GEB as a priority in the initial stages of the contracting process, integration of GEB within comprehensive performance contracts with multiple other ECMs, and careful consideration of GEB measurement and verification (M&V) for energy savings performance contracts (ESPCs) and performance assurance for utility energy service contracts (UESCs).

building energy loads↗

Analysis of Integrated Vapor Transport Biases

Abstract High-fidelity analyses and forecasts of integrated vapor transport (VT) are central to the study of Earth’s hydrological cycle as well as high-impact phenomena such as monsoons and atmospheric rivers. The impact of the in-line analysis correction-based additive inflation (ACAI) on IVT biases and forecast errors is examined within the Navy Earth System Prediction Capability (Navy ESPC) global coupled system. The ACAI technique uses atmospheric analysis corrections from the data assimilation system to approximate model bias and as a representation of stochastic model error to simultaneously reduce systematic and random errors and improve ensemble performance. ACAI reduces the global average magnitude of the 7- and 14-day IVT bias by 16%–17% during Northern Hemisphere summer, reaching 70% reductions in some tropical regions. The global average IVT bias reduction is similar to the bias reduction for low-level wind speed bias and considerably smaller than the bias reduction in total precipitable water. The localized regions where ACAI increases IVT bias occur where the control IVT biases change sign and structure with increasing forecast lead time, such as the South Asian monsoon region. Substituting analyzed wind or moisture fields for the forecast fields when calculating the forecast IVT confirms that, on average, wind errors dominate the IVT error calculation in the tropics, although wind and moisture error contributions are comparable in the extratropics. The existence of regions where using either analyzed winds or analyzed moisture increases IVT bias or mean absolute error reveals areas with compensating errors.

Reynolds, Carolyn A.↗

Financing Microgrids in the Federal Sector

Recent high-impact events such as hurricanes and wildfires highlight the need for energy system resilience. One potential impact of these events is the loss of utility grid power to federal sites, negatively affecting the ability to carry out their missions. Depending on the need to sustain critical functions, it may be important to continue operations during an outage of the electric grid, or at least have power restored quickly after the event. One approach to addressing this need is through a microgrid. Microgrids can provide a more reliable solution than the traditional approach of using a backup generator at individual buildings. A microgrid can enhance a site’s electrical power system during normal operations, as well as provide reliable backup power to critical loads when electric utility power is interrupted. Many times, certain components of a microgrid (and potentially the entire system) can be justified economically and paid for out of energy savings or avoided costs. In cases where savings can cover the project costs, one of several privately financed procurement mechanisms may be used to implement the project. Procurement options available to all federal agencies include utility energy services contracts (UESC), energy savings performance contracts (ESPC), and utility services contracts (USC); other mechanisms such as a power purchase agreement (PPA), enhanced use lease (EUL), and utility privatization (UP) may also be useful to agencies that have the authority to use them. Implementing a microgrid in a comprehensive effort that also includes energy efficiency can provide an important savings component, while reducing power requirements for critical loads, thus reducing the cost of the microgrid and associated distributed energy resources (DER). However, it can be difficult to achieve enough savings and avoided costs to cover the entire microgrid system, so leveraging these avoided costs in combination with appropriated funds may be necessary to implement the full project. When a site is deciding if a microgrid is the best solution, activities early in the process include identifying critical loads and existing DERs, conversations with the local electric utility, and implementation options that work best for the agency and site. This paper explores procurement options and agreements that may be useful to federal agencies interested in implementing microgrids at their sites. Microgrid complexities, implementation considerations, and suggestions to get started are also discussed. This information will be most useful to agencies when they are exploring electric energy system resilience options and/or considering different procurement options to meet their needs.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Guidance and Recommendations for Streamlining Reporting for Federal Energy and Water Efficiency Projects

Federal agencies are required to report on their progress in meeting various energy and water management requirements. These reporting requirements encompass energy and water projects at federal facilities, including projects that are alternatively financed, e.g., conducted through energy savings performance contracts (ESPCs) or utility energy service contracts (UESCs). The purpose of this guidance is to provide recommendations to streamline federal agency reporting. The guidance recommends the use of eProject Builder (ePB), a project development and archiving tool for energy projects. ePB carries additional value in its simplification of federal agency reporting by dovetailing with the Federal Energy Management Program’s (FEMP’s) EISA 432 Compliance Tracking System (CTS).

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗