Session: Benefits of ESPC
Sprinting to the Goal Line
Cynthia A. Vallina
OMB ‐ EOP
August 9, 2016
Rhode Island Convention Center • Providence, Rhode Island
PPCC Status – July 15, 2016
President’s Performance Contracting Challenge
Goal: $4 Billion ESPC/UESC to be awarded by December 31, 2016
Status: As of July 15, 2016, agencies awarded 294 projects valued at $3.3 Billion
Sprint: $700 million still need to be awarded in next 4‐5 months to meet the goal
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Energy Exchange: Federal Sustainability for the Next Decade
Participating Agencies
• 22 agencies set targets in 2011 and again in 2014
• 11 agencies met or exceeded both targets:
DOC, DHS, DOI, GSA, NARA, NASA, OPM, SSA, State, TVA, USACE
• 5‐6 agencies appear to be on track to meet their targets by December (high chance of award)
• OMB & CEQ closely monitoring remaining agencies and offering assistance • *Seeking awards that may not have been reported through MAX Collect
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Energy Exchange: Federal Sustainability for the Next Decade
ESPC Benefits
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Allow agencies to prioritize energy efficiency (EE) investments beyond what appropriators can allocate to EE within constrained discretionary appropriations. •
Mitigate against Government loss due to guarantees that condition payments on the energy performance of the ECMs/measures installed.
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Energy savings protect against upside price shocks.
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Fixed‐price performance based contracts & essentially budget neutral investments
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Payment stream never increases, which allows for certainty of facility cost planning.
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Tools to meet efficiency and greenhouse gas targets imposed by statute and Executive Orders & bring down future energy use/costs. •
OMB Scoring Exception – First year costs then annually thereafter
Energy Exchange: Federal Sustainability for the Next Decade
Best Practices to Model
• Look for RE Opportunities
• Include Water Efficiency investments for great rates of return
• Leverage appropriations by combining with an ESPC
• New Efficient Capital Equipment vs. patching or replacing old systems
• Deep Retrofits
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Energy Exchange: Federal Sustainability for the Next Decade
Available Assistance
1. DOE FEMP (FPEs, Lab expertise & Contract Support) 2. GSA
(Deep Retrofit, PMO support)
3. USACE & DLA
(turnkey support)
4. CEQ & OMB
(policy support & answers to your questions)
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Energy Exchange: Federal Sustainability for the Next Decade
What’s Next?
• Meet the President’s Challenge • Plan for FY2017‐2018 (SSPP)
• Set targets
• Re‐fill the pipeline
• Another Challenge?
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Energy Exchange: Federal Sustainability for the Next Decade