Deb Vasquez UESCs Utility Energy Services Contracts National

Deb Vasquez UESCs Utility Energy Services Contracts National Renewable Energy Laboratory September 24, 2014 WAPA Tribal Webinar Series DOE Office of Indian Energy Policy and Programs DOE Office of Energy Efficiency and Renewable Energy Tribal Energy Program Western Area Power Administration

Discussion Points • • • 2 UESC Definition Benefits of UESCs UESC Authority Tribal Applications GSA directive 4800. 2 H Methods for contracting Active utilities UESC resources Contacts

Utility Energy Services Contracts (UESC) Definition – A contract that allows utilities to provide their Federal customers with energy and water efficiency improvements and demand-reduction services. – The utility provides a comprehensive service including analysis, design, and installation and may include financing when requested. 1 Megawatt of Solar PV at NREL’s National Wind Technology Site NREL Photo #19794 Access to GSA services by Tribal Governments will be discussed 3 3

Why Utilities Offer UESCs? Manage load by lowering demand • Delay or eliminate need for new generation • Meet state energy and renewable energy portfolio standards • Exemplary customer service – helping agencies meet their energy goals • 4 1. 10 Megawatt Solar PV Array at the San Jose International Airport. Meets 20% of the facility’s energy need

Why Agencies Choose UESCs § § § 5 Flexible Funding: Financing and/or appropriations Bundle longer and shorter payback measures Utilities are an established source: No need for full and open competition Use a trusted serving utility (utility partner) who is familiar with your facility energy needs Take advantage of a utility's expertise To include operations and maintenance (O&M), measurement and verification (M&V), and performance assurance

Utility Energy Services Contracts (UESC) Authority: The Energy Policy Act of 1992 (EPAct), P. L. 102 -486 42 USC 8256 Section 546 (c ) Utility Incentive Programs (1) Agencies are authorized and encouraged to participate in programs to increase energy efficiency and for water conservation or the management of electricity demand conducted by gas, water, or electric utilities and generally available to customers of such utilities. (2) Each agency may accept any financial incentive, goods, and services generally available from any such utility, to increase energy efficiency or to conserve water or manage electricity demand. (3) Each agency is encouraged to enter into negotiations with electric, water, and gas utilities to design cost-effective demand management and conservation incentive programs to address the unique needs of facilities utilized by each agency. 6

Tribal UESC Applications • Utilities can work with Tribes to provide comprehensive services including analysis, design, and installation and financing. – There are no restrictions for offing incentives to tribal customers as long as tribes pay into the utility energy efficiency rider (residential and commercial). – Utilities can utilize FEMP resources when partnering with Tribes. – Utilities are not blocked (by the PUC) to provide rebates, incentives, UESC to their tribal customers 7

Eligibility to Use GSA Sources of Supply and Services GSA Order ADM 4800. 2 H*, 7. Eligible activities d. Other organizations authorized under the authority of 40 USC §§ 501 -502 (5) Tribes and Tribal Organizations, and (6) Use of certain Federal Supply Schedules by state and local governments. … State or local government, defined at 40 U. S. C. § 502(c)(3), includes any state, local, regional, or tribal government, or any instrumentality thereof…, participation by a firm that sells to the Federal Government through its Federal Supply Schedule contract shall be voluntary with respect to a sale to the state or local government under that contract. (a) Cooperative Purchasing. Pursuant to 40 U. S. C. § 502(c), the Administrator may provide for the use … Schedule 84 for supplies and services … It will be the Tribal Government’s decision, the above appears to describe that Tribes can use the Areawide Contract (AWC) for utility service including energy management services (UESC) or Schedule 84 for ESPC/ENABLE [(SIN) is 246 -53 http: //energy. gov/eere/femp/espc-enable] * http: //www. gsa. gov/portal/content/104212 8

Methods for Contracting a UESC 1. U. S. GSA Areawide Contract (AWC) – placed between GSA and the Utility for ordering utility services. The majority of AWCs include an Exhibit for Energy Management Services to be used to establish a bilateral agreement between the ordering agency and the serving utility 2. Basic Ordering Agreement (BOA) - placed between the agency and the serving utility and establishes general terms and conditions for future contracts. 3. Stand Alone Contract - placed between the agency and serving utility for a single energy management services contract Model Agreement – used as a template for establishing the terms and conditions of a single UESC project or a master agreement for future UESC projects. 9

Areawide Public Utility Contract (AWC) • Between the US GSA and the franchised utility provider. GSA Utility Areawide Contract http: //gsa. gov/portal/content/184627 Agency • GSA incorporates energy management services as authorized by 42 USC 8256 in areawide contracts for utility service. – Article 18. Utility Energy Service Contracts – describes the conditions for energy management services – Exhibit, “Authorization for Energy Management Services” 10 Utility Model Agreement TO

UESC for Tribes 1 determine the contracting Task order process under an existing AWC st method currently being used between the tribe and the utility [The utility can provide a UESC w/ or w/o an AWC as long as the PUC and tribal policy don’t prohibit it; an AWC makes the process easier per FAR Part 41] nd determine if the serving 2 electric and/or natural gas utility is interested in providing an energy conservation project. 3 rd the Tribe and Utility will establish site specific terms & conditions for energy management services task orders; [The model agreement is 95% of T&C] 4 th the Tribe and Utility establish an agreement for energy management services, e. g. , Finally, a task order is used to exhibit “B” award the contract 11 [Typically a comprehensive energy and water conservation project • Energy assessment, ECM design, demand response, performance assurance • Installation of ECMs GSA Utility Areawide Contract Tribe Utility Authorization for Energy Management Services Model agreement & Exhibit “B” TO TO TO

Electric Utilities Actively Offering UESC Programs White areas are potential areas for UESC growth. 12

Natural Gas Utilities Actively Offering UESC Programs Not all inclusive 13

FEMP Announcement: Newest Utilities Offering UESC 14 • Dominion Virginia Power: Contact Jarryd Coates jarryd. a. coates@dom. com • Duke Energy: Contact Bill Flye bill. flye@duke-energy. com • Piedmont Natural Gas: Contact David Nestor david. nestor@piedmontng. com • CPS Energy: Contact Karma Nilsson klnilsson@cpsenergy. com

DOE Federal Energy Management Program Mission FEMP provides services, tools, and expertise to help Federal agencies achieve their energy, greenhouse gas, water, and sustainability goals http: //energy. gov/eere/femp/federal-energy-management-program 15 15

UESC Resources • FEMP UESC website: http: //energy. gov/eere/femp/utility-energy-service-contracts – Enabling Documents – contains legislation, legal opinions, agency guidance and other information http: //energy. gov/eere/femp/downloads/utility-energy-services-contracts-enablingdocuments-may-2009 – UESC Guide – a resource for contracting officers http: //energy. gov/eere/femp/downloads/utility-energy-services-contracts-guide-0 • GSA Guidance – Federal Acquisition Regulations (FAR) Part 41 – Procuring Energy Management Services using an Areawide Contract http: //www. gsa. gov/graphics/pbs/procuring_energy_R 2 H 915_0 Z 5 RDZ-i 34 K-p. R. pdf 16

UESC Resources • UESC On-Demand, Webinar, and in-person Training http: //apps 1. eere. energy. gov/femp/training/ • Advanced UESC Workshop November 3 -4, 2014 Cape Canaveral, Florida (In conjunction with FUPWG) http: //apps 1. eere. energy. gov/femp/training/course_detail_live. cfm? Course. Date. Id=2628 • Federal Utility Partnership Working Group (FUPWG) November 5 -6, 2014 Cape Canaveral, Florida Hosted by Florida Power & Light http: //apps 1. eere. energy. gov/femp/training/course_detail_live. cfm/Course. Date. Id=3622 17

With Thanks Deb Vasquez (presenting) National Renewable Energy Laboratory 303. 384. 7548 deb. vasquez@nrel. gov David Mc. Andrew DOE/FEMP 202. 586. 7722 david. mcandrew@hq. doe. gov Karen Thomas NREL 202. 488. 2223 karen. thomas@nrel. gov Linda Collins GSA 202. 208. 9881 lindal. collins@gsa. gov 18