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ESPC Net-Zero Challenge

204/21/23

Overview

• President’s Performance Contract Challenge

• Background on GSA• Energy Mandates• American Recovery and Reinvestment

Act• Deep Retrofits• GSA ESPC Net Zero Renovation Challenge• What’s Next?

304/21/23

Progress Targets & Milestone Targets• To track Agency progress, CEQ/FEMP has developed Milestone

Targets and Progress Targets– Milestone Targets are major project development milestones. If an

agency fails to get 100% of its total project investment by the milestone target date, a “ ” is earned on its Progress Report.

– Progress Targets track agency progress: if an agency’s project investment amount is not 25, 50, or 75 percent of its Milestone Target by the prescribed dates, it earns a “ ”.

Target Dates →

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Commitment Met 75 100

Agency Plans made 50 75 75 100

NOO Released 50 75 75 75 100

Service Provider Selected 25 25 50 50 50 75 75 75 100

NOITA Issued 0 25 25 25 50 50 50 75 75 75 100

IGA Submitted 0 0 0 0 25 25 25 50 50 50 75 75 75 100

Awarded 0 0 0 0 0 0 0 0 25 25 25 50 50 50 75 75 75 100

Total agency project investment should equal 100% of its

commitment in the Development Stage at the Milestone Target

Date. To demonstrate adequate progress,

25%, 50%, and 75% of the agency's total

project investment should be attained by the prescribed dates.

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Milestone Targets

Progress Targets

404/21/23

Agency Progress Report Agency: Agency AProgress toward the investment of $2 billion by December 31, 2013 Commitment: $95,000,000

Source Date: May 15, 2012

Target Milestones

Est. Investment

Value (millions USD)

% of Commitment

Target(As of

5/15/12)Score Comments

Project InitiationAgency has identified projects with investment values equal to or above its commitment by May 15, 2012

84.96 89% 100% Project investment total below commitment.

Planning Agency has developed acquisition plans and target dates by July 15, 2012

71.35 75% 75%

Notice Of OpportunityAgency has released all Notices of Opportunity by August 15, 2012

56.35 59% 75%

Vendor SelectionAgency has selected service providers by December 15, 2012

51.35 54% 25%

Intent to AwardAgency has issued Notices of Intent to Award by February 15, 2013

48.50 51% 25%

Facility AuditAgency has received an Investment Grade Audit

22.50 24% 0%

AwardAgency has awarded project

7.40 8% 0%

Legend: Meeting all target metrics Below 25%, 50% or 75% Progress Targets Missed Milestone Target No target metric at this stage

$0

$5

$10

$15

$20

$25

$30

Nostart/No

data

AcquisitionPlan Done

ReleasedNOO

ESCOSelected

PAdeveloped

NOITAIssued

IGASubmitt ed

Final Prop.Submitt ed

AwardedProj

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Agency A Investment Distribution Across Stages Project Investment by Contract Vehicle

Investment Gap

DOE ESPC

ACOE ESPC

UESC

Other

Explanation of Progress Report Milestone Targets occur when 100% of committed project investment is at a milestone stage by the due date

Milestone Targets occur when 100% of committed project investment is at a milestone stage by the due date

Project Development Milestones

Project Development Milestones

Progress Targets measure total committed in progressively higher 25%, 50%, and 75% levels as the due date approaches

Progress Targets measure total committed in progressively higher 25%, 50%, and 75% levels as the due date approaches

An agency will earn a red dot if they miss a Milestone Target

An agency will earn a red dot if they miss a Milestone Target

As of May 15, 2012, only one Milestone has been reached. The next is due July 15, 2012

As of May 15, 2012, only one Milestone has been reached. The next is due July 15, 2012

An agency will earn a yellow dot if they miss a Progress Target

An agency will earn a yellow dot if they miss a Progress Target

A grey dot indicates no Milestone or Progress Targets are due.

A grey dot indicates no Milestone or Progress Targets are due.

This chart breaks down total project investment by contract vehicle used. The “Investment Gap” is the difference between agency commitment and total current project investment.

This chart breaks down total project investment by contract vehicle used. The “Investment Gap” is the difference between agency commitment and total current project investment.

This chart shows the distribution of the agency’s current project investment among project development stages as reported in OMB Max. “No start/no data” is the amount of project investment either not started or lacking data.

This chart shows the distribution of the agency’s current project investment among project development stages as reported in OMB Max. “No start/no data” is the amount of project investment either not started or lacking data.

504/21/23

• FEMP• GSA• Resources available to each of your

sites: FFS, PFs, GFO contracting mentors, contracting support from DLA, Huntsville, private contractors. Extensive training and technical information on the web.

• An extensive ESCO network .

Resources

604/21/23

• Most large and medium sites will be well served through the standard ESPC and UESC offerings.

• Small sites should explore FEMP’s newest program option: ESPC ENABLE.

• Pilot program designed to make projects at small sites cost effective for agencies and ESCOs.

• Projects will be executed through GSA Schedule 84, using a new set of automated and standardized tools and contract templates.

• FEMP has identified five agencies to partner with to establish agency specific approaches to implementing ESPC ENABLE projects.

Program Options: A new option for many small sites

704/21/23

• May 15: $ Projects ≥ $ Commitment?• July 15: Acquisition Plans Complete;

Projects’ Timelines Established• August 15: Notices of Opportunities

Issued• Federal Environmental Executive will

follow up with agencies not meeting these milestones to identify strategies /actions to meet the milestones.

Near Term Deliverables

804/21/23

Background on GSAGSA consists of:Public Buildings Service (PBS)Federal Acquisition Service (FAS)Office of Governmentwide Policy (OGP)other staff offices

9,624 buildings in 11 regions 1,530 owned and 8,094 leased (2010)370.2 million rentable square feet, or 34.4 million square

meters

Landlord for 400 federal agencies, bureaus and commissions with space for over 1,000,000 tenants

GSA Energy Profile• Currently

represents 9.3% of civilian agency energy usage, 3.7% of Federal total

• Has achieved ~16% in energy reduction from 2003 baseline (source: FY2010 OMB Scorecard on Sustainability/Energy)

1004/21/23

GSA Office of Federal High Performance Green Buildings

1104/21/23

Sustainability & Regulations Laws▪ National Environmental Policy Act, 1969

▪ Clean Air Act, 1970; amended 1990

▪ Energy Policy and Conservation Act, 1975

▪ Resource Conservation & Recovery Act, 1976;

amended 1994

▪ National Energy Conservation Policy Act, 1978

▪ Energy Policy Acts, 1992, 2005

▪ Energy Independence and Security Act, 2007

Executive Orders▪ 13101 Greening the Government through Waste Prevention, Recycling & Federal

Acquisition

▪ 13123 Greening the Government through Efficient Energy Management

▪ 13134 Developing & Promoting Biobased Products and BioEnergy

▪ 13148 Greening the Government through Leadership in Environmental Management

▪ 13327 Federal Real Property Asset Management

▪ 13423 Strengthening Federal Environmental, Energy, and Transportation Management

▪ 13514 Federal Leadership in Environmental, Energy, and Economic Performance

American Recovery and Reinvestment Act (ARRA)

13

• The combined Recovery Act portfolio of Major Modernization and Limited Scope projects will be 30% more energy efficient than the CBECS2 national average.• Recovery Act projects are expected to reduce energy consumption by 18% across 447 buildings (for Major Modernization, Limited Scope, and Small Projects).• Average annual cost savings is an estimated $44.4M per year.

Recovery Act Portfolio Energy Use Reduction

2 Commercial Building Energy Consumption Survey (CBECS) national average energy intensity = 90 kBtu/sq. ftPBS 2003 and 2009 baseline energy intensity on Recovery Act projects from GSA's Energy Usage Analysis System (EUAS)

A deep retrofit is a modernization that is anticipated to achieve an energy reduction of at least 50%.

Of the 45 Recovery Act modernization projects, six are anticipated to reduce overall energy consumption by at least 50%. Five of the deep retrofits are projected to reduce overall energy consumption from 53%-68%.Five of the deep retrofit modernizations are utilizing renewable energy technologies to reduce overall energy consumption.An additional twelve limited scope and modernization projects anticipate achieving an energy reduction between 40% and 50%. All Recovery Act buildings undergoing Major Modernization projects are expected to achieve enough gains in energy efficiency to meet EISA 2007 requirements.

Recovery Act Deep Retrofits

Recovery Act Case Study

• Net-zero energy target• Platinum LEED rating goal• Historic Building• 123 kW PV array to produce

170,000 kWh a year (greater than 50% of the building’s historical annual electricity use)

• Ground source heat pumps• ECMs: lighting control and

monitoring, demand controlled ventilation, plug load management measures, thermally improved building envelope.

• Building physics analysis used

CO, Grand Junction Wayne N. Aspinall Federal Building & US Courthouse

1604/21/23

Approach to Net ZeroRecommended Approach

Source: RMI

1704/21/23

“Deep Energy” Retrofit

• Process Differentiators– Building Owner Involvement– Integrative Design– Advanced Auditing, Modelling, LCCA– Ongoing M&V– Occupant Engagement

• Results:– Larger Energy Savings– Improved Project Economics

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Energy Savings Performance Contract (ESPC)

PAYMENTSTO

UTILITYPROVIDERS

Zero or positive net impact on existing budgets.

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Timing is Key to Profitable Deep Retrofits

• Planned Capital Improvement• Major Occupancy Change• Major System Replacement• Upgrades to Meet Code• Fixing an “Energy Hog”

2004/21/23

GSA Use of ESPCs

• $440M invested in ESPC since 1999

• Renewed GSA interest and investment in ESPC ($262M in FY10-11)

GSA proposes to employ a Net Zero ESPC Challenge as a tool to further accelerate the use of ESPC’s by the GSA regions in addressing energy reduction goals

2104/21/23

ECMs in ESPCs

2204/21/23

Background

• October 20, 2011 Administrator Johnson’s Announcement: GSA Challenges Private Sector to Reduce Energy Use at Federal Buildings

• October 27-28, 2011 ESPC Charrette• December 2, 2012 Presidential Memorandum

– $2 billion in performance-based contracts within 24 months

– Report planned implementation schedule by 1/31/2012

– Issue NOO in March, 2012

2304/21/23

GSA Challenge Goals• Demonstrate best practices for maximizing

overall ESPC project energy savings; • Advance progress toward EISA goals;• Accelerate deployment of underutilized and

renewable technologies;• Further expose GSA regions to DOE ESPC IDIQ

contract process and resulting improvements in ESCO selection;

• Identify and understand processes necessary to get to net zero energy;

• Identify structural, contractual and technical impediments.

2404/21/23

GSA Challenge Framework• Site Selection: GSA selected 30-35 buildings for

competition across multiple regions• Award Process: Buildings to be awarded with DOE’s

streamlined competition process• Recognition: Projects to be evaluated by a panel of

independent experts to identify and recognize exceptional performance in a number of technical categories

1. absolute energy savings of pre-retrofit energy use

2. progress towards Federal Government goals for energy, water, fossil fuel, renewable energy, and sustainability

3. financial and technical creativity

4. ability to extend best practices to other Federal

buildings.

2504/21/23

ESPC Charrette

1. Analysis and Integrated Design2. Project Economics3. Delivery Process4. Occupant Behavior5. M & V

2604/21/23

Analysis and Integrated Design

Deep savings may not be cost effective over contract term

Lack of information on existing buildings Typical ESPC process looks at individual

ECMs High risk to

guarantee

deep savings

2704/21/23

1. Analysis and Integrated DesignBarriers Solution

1. Deep savings may not be cost effective over contract term (No $ available from agencies)

Identify funds available through coordination between energy managers, master planning and capital improvement

Find solutions to channel saved space into funding for Deep Retrofits

Bulk purchasing Phased implementation of ECMs

2. Lack of info on existing buildings (metered/utility data)

GSA needs to store and categorize reports/data into centralized searchable database

3. Typical ESPC process looks at individual ECMs

Process needs to value bundles of integrated measures

4. Laws tell you to save energy, ESPC process demands $ savings

Disconnect must be reconciled

5. High risk to guarantee deep savings (ability to model new technologies)

ESCO engineers have experience and judgment needed

Tools need to keep up with new technologies

6. No way to take credit for ‘other’ savings (O&M, increased productivity, etc.)

GSA needs to develop a standard way to assign value for these things

2804/21/23

Project Economics

High financing costsIntegration with planned

improvement projectsInclusion of avoided future costs in

ESPC including capital and maintenance

Contract duration limits longer payback measures

ESPC Delivery Process

Months

1 2 3 4 5 76 8 9 10

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28 days 15 132 days 30 days

14 45 days105 days

Months

Best-Expedited Schedule

Longer Schedule

Project planning (28-63 days) Work w/FFS Form Acq. Team Request PF

Prelim. Assessment — ESCO selection (132-246 days) Notice of Opp. Select ESCO Evaluate PA Send NOIA

TO-RFP (15-35 days)

IGA & Final Proposal (105 – 150 days)

Site/Agency Review (30 days)

GFO Review (14 days)

Final Reviews, Negotiations, and Award (45-55 days)

Project planning

TO-RFP

Final nego’s & award

PA – ESCO selection IGA & FP

IGA & Final Proposal Site/Agency Review

GFO

63 days 35 246 days

30 days

14 55 days150 days 19.5mos.

12.1 mos.

29Source: DOE/FEMP

3004/21/23

Occupant Behavior

Difficult to quantify energy/cost savings

Limited good examples of “Behavior ECMs”

Hard to incentivize all occupants ESCOs have no control over

occupants

3104/21/23

Measurement & Verification

• Uncertainty/variability of how building isoperated after installation

• Cost, level of effort, and complexity for whole building M&V

• Consistency across GSA offices, agencies and regions

• Improved baseline performance data

3204/21/23

Additional Improvement Opportunities

• Improve the ESPC award and M&V process • Treat O&M as ECM and have ESCO provide

that service • Allow avoided future replacement costs• Share risk • Accept occupant behavior energy use

reduction • Support multi-building projects • Improve building energy data base lining• Renegotiate FEMP contract terms

3304/21/23

High Priority Solutions

• Reduce time to contract award• Redefine eligible savings• Share risk• Combine funding• Multi-building projects, bundling• Consider occupant behavior

programs

ESPC Challenge Buildings

• 30-35 Buildings• 18 million sqft• 100,000 –

800,000 sqft• $150-250 million

potential project size

• $7 million annual savings potential

And The Elephant in the Room

We Need To Use Less:

Square Feet

Broad Range of Opportunities and Challenges

- 1975 Federal Building- Never Upgraded

Plan:- Updating Cutting Edge ‘Green’ Design- $133 M from Recovery Act- Full Building Modernization- High Aims for Sustainability and Curb Appeal- Construction procurement underway

Portland, OR

E X A M P L E: A R R A P R O J E C T

EGWW—Shading Reed Construction

Washington, D.C.

- Historic 1917 Building- Last Upgraded in 1935

Plan:- Modernization with Infill- $161 M from Recovery

Act, as Phase I- Must Redesign for

Energy Goals

Broad Range of Opportunities and Challenges

T H E E X T R E M E C H A L L E N G E

Renderings

What’s Really Happening in the Office?

Autur and Murmane, 2003

4104/21/23

Questions?

Kinga Porstkinga.porst@gsa.govKevin Kampschroer

kevin.kampschroer@gsa.govSharon Conger

sharon.conger@gsa.govFEMP: Dr. Timothy Unruh Timothy.Unruh@ee.doe.gov

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