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As a Energy Services Marketing Society division member, we welcome you to the summer issue of this year's Energy Services Marketing Institute newsletter. In this issue, our columnist Jim Waltz discusses the "dark side" of performance contracting. You can also read about energy efficiency in the petroleum industry, new rules in the federal government in regards to climate risks, and incentives, financing and energy saving stories for businesses, cities, and schools.
The Little-Known "Dark Side" of Performance Contracting
By James P. Waltz, P.E., C.E.M., F.A.C.F.E.
While it has carried many names over the past few decades, such as "energy services", "demand side management", and "performance contracting", the process of implementing energy conservation and energy cost management programs on a turnkey basis, generally including financing and a guarantee, is what we today call Performance Contracting. It has gained more popularity and seems to be particularly bolstered by the latest wave (one of many over the years) of interest of electric utilities and Federal agencies. When done properly, as explained in our AEE Seminar entitled "Management, Measurement, and Verification of Performance Contracts" and in Chapter 2 of the Fairmont Press book of the same title, performance contracting has the ability to integrate financial, engineering, construction, operations, and maintenance services in a way that often produces spectacular results which could not be achieved by any other means. Continue reading.
Energy Efficiency Alone is not Enough
40 years ago, in response to energy crises, energy efficiency measures were introduced to mitigate petroleum production shortages and associated skyrocketing fuel costs. Since then, the U.S. has continued to make significant improvements in energy productivity. After the oil shocks of 1973 and 1979 the need for these significantly accelerated improvements brought to the nation's attention our vulnerability to energy supply disruptions. Continue Reading.
Paper presented at the West Coast Energy Management Congress
Federal Sector Metering & Energy Data Management
To make informed operations and investment decisions within the Federal government increased use of energy interval meter data and improved data management systems are needed. The Federal government experiences challenges collecting, managing, and analyzing energy data consistently across its assets. As a result, it has been difficult for Federal agencies to use energy data to identify energy efficiency opportunities. Access to quality energy data, easy to use data analysis tools, trained personnel, and energy informed and action-oriented culture, and investment resources are key to improved operations and reduction in energy use and cost. The new Federal metering guidance requires agencies to submit updated metering plans. The agency metering plans will include a prioritized list of existing and planned meters, descriptions of agency energy management systems, and a summary of the current challenges and barriers to installing meters and effectively using the metered data. This paper provides an overview of the Federal sector metering efforts, challenges, and future direction. Read on (PDF).
Paper presented at the West Coast Energy Management Congress
Proposed Rule Requires Federal Government Contractors, Vendors to Disclose Climate Risks
A new rule proposed by the Obama administration requires vendors and contractors selling goods and services to the federal government to disclose their greenhouse gas (GHG) emissions and climate-related risk data. The rule seeks to drive greater disclosure of the federal government's supply chain, which reportedly exceeds $400 billion per year. The federal government's top 100 contractors in 2015 include a number of energy sector heavyweights including Lockheed Martin, Bechtel, Honeywell International, General Electric, and Booz Allen Hamilton. A number of these firms already disclose their climate change risks. Read on.
Ontario Investing $900M in Affordable Housing
Ontario will invest $900 million during the next four years in retrofits of affordable housing apartments. The funding is from the proceedings from cap and trade. The Climate Change Action Plan will feature investments of as much as $500 million in energy efficient windows, insulation and other items. The goal is to reduce emissions and save money. Another $400 million will be invested in an incentive program offering rebates and grants for boiler replacements, lighting retrofits and other projects.
The Cloud: A Moonshot that is Paying Off for Cities & Businesses
Last June, Kansas City struck up a nearly $16 million partnership with Cisco Systems and Sprint to help make the city a lot smarter by tapping into digital technologies to improve such vital city services as energy, water, and transportation. It's all tied to the cloud, so the city can better control traffic, avoid jams and limit emissions. They can also optimize their municipally-owned grids, making room for more green energy. As for businesses, they can make smarter decisions, allowing them to know where to allocate scarce resources. Read on.
$859M Savings on Water, Energy Available with Performance Contracting
Western states' public schools and governments can save $859 million annually by using performance contracting to implement water management and energy conservation measures, according to a market study by Western Resource Advocates and McKinstry. The report shows how government and school facilities would save more than 6 million megawatts of electricity, 4 million cubic feet of natural gas, and 40,000 acre feet of water a year by implementing conservation measures using the performance contracting approach. The states analyzed in this report are Arizona, California, Colorado, New Mexico, Nevada, Utah and Wyoming. Read on
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