Renewable Working Group Federal Energy Management Program Renewable Power Purchases at Federal Facilities By David Mc. Andrew Federal Energy Management Program
Why Purchase Renewable Power? Federal Energy Management Program • Demonstrates Federal Leadership • Relatively easy way to meet energy conservation and greenhouse gas goals • Preferable for agencies with limited capital budgets • Allows generation to be sited in most economical location • Helps grow market to critical size • Promotes National Energy Security • Because you have to meet you RE goal somehow
Federal Energy Management Goals Executive Order 13123 Federal Energy Management Program • Reduce energy consumption (renewable use counts) – Facility energy per square foot to be reduced by 30 percent in 2005 and 35 percent in 2010 relative to 1985 – Industrial/laboratory energy to be reduced by 20 percent in 2005 and 25 percent in 2010 relative to 1990 • Reduce greenhouse gas emissions 30 percent by 2010 compared to 1990 • Expand use of renewable energy – 2. 5% of Federal facility electricity consumption by 2005
WHAT PURCHASES COUNT TOWARDS GOAL Federal Energy Management Program § E. O. 13123, Sec 710. “Renewable Energy” means energy produced by solar, wind, geothermal, and biomass. § Does not give a preference to a specific technology § Does not differentiate between types of biomass § E. O. 13123 Guidance Requirements § Contract must specify renewable purchase requirement § Excludes system supply and state RPS requirements § Purchase must come from new renewable resource § On line after 1990 § Should have consistent standard for purchases and on-site
FEMP Renewable Purchasing Program Federal Energy Management Program • Direct Assistance • Individual agency initiatives • Map correlating federal agencies with purchasing opportunities • Guidance • DESC and GSA • Regional/Utility Aggregations • WAPA • Coordination • Federal agencies • DESC and GSA • Share experiences • Share resources • EPA GP Partnership • Free publicity • Demonstrate Leadership • Private Initiatives • Utility Green Pricing • Green-e • WRI
FEMP Renewable Purchasing Program Federal Energy Management Program • Education & Outreach – Workshops – Presentations – Communications Material • Guidebook • Green Power Toolkit – Annual FEMP Awards • Strategy Development – Making a Federal case for renewable power – Product development for Federal Agencies – Identifying funding opportunities
Federal Purchasing Methods Federal Energy Management Program – Utility Green Pricing • Areawide Contract (AWC) Exhibit • Utility contract – “If it is a PUC approved rate then it must be just and reasonable” – Solicitation in competitive electricity market • General Services Administration (GSA) – Ken Shutika (202) 260 -9713 • Defense Energy Support Center (DESC) – John Nelson 703 -767 -8333 – Renewable Energy Certificates Purchases • Can be a tough sell • Competitive Purchase?
Select Federal Renewable Power Purchase Contracts Federal Energy Management Program Federal Agency Location Gwh Resource Utility Green Pricing 18 Agencies Denver, CO 4. 1 Wind DOE -WIPP (Sandia) White Sands, NM 1. 5 Wind Retail Competitive Electricity Procurements NASA Johnson Texas 10 Wind DOE, GSA, DOA, Army Washington DC 44 LFG/Wind Wholesale Competitive Electricity Procurements Edwards AFB California 133 Wind/Bio Renewable Certificate Purchases EPA CA, OH, MA, WA 21. 4 Various
Premium Funding Sources Federal Energy Management Program • Direct Appropriations • Savings from competitive procurement of electricity or natural gas • Bundled into a “Best Value” electricity procurement – FAR Part 23. 703 (Environmentally Preferable Purchasing) can be used as justification for renewables purchase • Energy Efficiency Savings • SEPs ? ?
Renewable Power Purchasing Lessons Learned Federal Energy Management Program • Load aggregations can lead to big purchases but: – Target big users – Don’t herd cats – Keep it simple • Utility green pricing should be a Partnerships – Consider customizing product – Be upfront and clear on sources and benefits • “So, now I understand what renewable power is, What’s this certificate thing you’re trying to sell me? ” • Anything that costs less than a penny must be a good deal!!! ($0. 01 X 5% of load =. 0005 per kwh)
Assistance, Advice, Concerns Federal Energy Management Program • David Mc. Andrew, FEMP HQ 202 -586 -7722, david. mcandrew@hq. doe. gov • Chandra Shah, National Renewable Energy Laboratory (NREL) 303 -384 -7557, chandra_shah@nrel. gov • Bill Golove, Lawrence Berkeley National Laboratory (LBNL) 510 -486 -5229, whgolove@lbl. gov
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