FEMP Biomass Super ESPC Program

Presentation to theRenewable Energy Working Group

September 10, 2002

Christopher AbbuehlUS DOE – PRO

AGENDA

– Overview of FEMP Super ESPC Program

– Overview of BAMF Tech-Specific Contract

– BAMF Contractors & Projects

FEMP Objectives Reduce building energy use 35% by 2010

Reduce greenhouse gas emissions 30% below 1990 levels by 2010

Use innovative financing & contract mechanisms

Demonstrate energy technology (showcases)

Executive Order 13123

Section 402: Financing MechanismsSection 402: Financing Mechanisms

Agencies shall maximize their use of available alternative financing mechanisms, including Energy Savings Performance Contracting.

Executive Order 13134

Developing and Promoting Biobased Products and Bioenergy

Seeks to stimulate the creation and early adoption of technologies needed to make bioenergy cost-competitive in large markets.

FEMP Alternative Financing Program

Energy Savings Performance Contracting Energy Savings Performance Contracting (ESPC) is a contracting method whereby (ESPC) is a contracting method whereby the contractor incurs the cost of the contractor incurs the cost of implementing energy savings measures implementing energy savings measures and is paid from a share of any energy and is paid from a share of any energy and energy-related savings directly and energy-related savings directly resulting from implementation of such resulting from implementation of such measures during the term of the contract.measures during the term of the contract.

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Basic Concept of ESPC FinancingBasic Concept of ESPC Financing

Utility Utility BillBill

Utility Utility BillBill

Utility Utility BillBill

ContractorContractorPaymentPayment

Govt.Govt.ShareShare

Govt. Govt. ShareShare EnergyEnergy

Cost Cost SavingSaving

ss

Before ESPCBefore ESPCContractContract

During ESPCDuring ESPCContractContract

After ESPC After ESPC ContractContract

Key Elements of Super ESPC’s

No capital appropriations requiredNo capital appropriations required

Energy savings guarantee by ESCO Energy savings guarantee by ESCO insures system performanceinsures system performance

No further competition or solicitations No further competition or solicitations requiredrequired

FEMP provides technical & contract FEMP provides technical & contract supportsupport

Types of DOE Super ESPC’s Regionals Regionals

COR in each regional officeCOR in each regional office

Contract oversight in Golden, COContract oversight in Golden, CO

Tech SpecificTech Specific

Solar PV & Solar Parabolic Solar PV & Solar Parabolic

Ground source heat pumpGround source heat pump

Biomass & Alternative Methane FuelsBiomass & Alternative Methane Fuels

BAMF Tech Specific Super ESPC

Assist Federal Facilities in acquiring energy management services to reduce energy consumption and/or energy costs (including related operations and maintenance costs) by using a biomass or alternate methane fuel (BAMF systems) and to implement other energy conservation measures (ECMs).

BAMF Resources

Biomass fuels include: dedicated energy crops and trees, agricultural food and feed crop residues, aquatic plants, wood and wood residues, animal wastes, and other waste materials.

Alternate methane fuels include landfill methane, wastewater treatment digester gas and coalbed methane.

BAMF TechnologiesBAMF systems in a variety of applications

such as:• direct combustion (steam boiler

technologies)• co-firing (coal & wood)• gasification (wood, crops, sludge,

animal wastes)• gas turbines (including micro-

turbines) • reciprocating engines• fuel cells

All conventional energy conservation measures

BAMF Resource AssessmentsSoftware programs that match information on

federal facilities with specific BAMF resources:

• Landfills (within 5 miles)• Wastewater treatment plants (within 5

miles)• Wood waste from 10 or more sources

(within 50 miles

BAMF Contractors

ESCO’s Awarded IDIQ Contracts

• Constellation Energy Source• DTE Biomass Energy, Inc.• Energy Systems Group• Exelon Services Federal Group• Trigen Development Corporation