UPDATE ON RENEWABLE POWER PURCHASING David Mc Andrew

UPDATE ON RENEWABLE POWER PURCHASING David Mc. Andrew, FEMP + Mike Santoro, AFCESA

Presentation Overview • • Dyess AFB Purchase Air Force Congressionally Directed Purchases DOD Texas purchase Other Activity WAPA Initiative Other Utility Initiatives EPA Green Power Partnership Update Feedback Other Issues?

Dyess AFB Purchase • Largest facility in nation to receive 100% renewable electricity. • Contract basics – – – Modification to existing competitively awarded contract Last two years of 3 year contract 80, 000 kwh per year 100% wind energy. $0. 019/kwh premium but rate is still below utility default rate All 19 Air Combat Command bases have met 2. 5% goal through purchase Significant progress on energy efficiency goals and green house gas goals through purchase. • Base champion was key to making it happen – Truly believes in need for Federal Government Leadership – Pushed as cost effective way to meet ACC EO goals

Congressionally Directed Purchases • Congress Earmarked $500 k in FY 02 for AF RE purchases • Strings Attached – Had to be wind energy – Some had to be in spent North Dakota – Base had to commit to an additional 4 years • Selection based on availability, price and location • 8 bases selected in 7 states • 23, 400 MWH annually with premiums from $0. 01 to $0. 03

Bases Selected Cannon AFB, NM Ellsworth AFB, SD Fairchild AFB, WA Grand Forks AFB, ND Lackland AFB, TX Minot AFB, ND Schriever AFB, CO F. E. Warren AFB, WY 1, 800 MWH 1, 2, 200 MWH 7, 800 MWH 1, 800 MWH 4, 000 MWH 1, 800 MWH 1, 2, 200 MWH

DESC’s Texas Solicitation • DESC’s second round in Texas market • BP Amoco selected as “best value offer” • 7 major DOD facilities (4 Navy 3 Air Force) – Facilities bought 5 -10% renewable – 29, 500 MWH per year • Picking green was made easy – Air Force had requested renewable pricing – Pricing was key to success

DESC Texas Pricing Example Camp Tumbleweed Prices in $ per kwh Term 1 Year 0% Renewables $0. 04305 5% $0. 04385 10% $0. 04465 2 Year $0. 04205 $0. 04285 $0. 04365 • Buying 5% renewables cost only $0. 0008 per Kwh • Buying 5% for 2 years cost less than 0% for 1 year • $0. 0008 for 5% is equivalent to $0. 016 per kwh but it sure seems a lot cheaper.

Other Recent Activity • World Bank – Purchased by GSA Energy Center – 5. 5 million k. Wh from Pepco Energy Services • NPS – Arches and Canyonlands – 12, 000 k. Wh/year from Pacifi. Corp Blue Sky Wind Program • In progress – EPA Houston 100% renewable power (RFP issued March 25) – Other planned EPA 100% purchases – Fort Meade, MD; Narragansett, RI; Research Triangle Park, NC

Who is Buying Renewable Power? Gwh /Year

What Was Counted • Purchases we know about • Contract specifies renewable energy • Solar, Wind, Geothermal and Biomass – including Municipal Solid Waste • Excludes – Power generated to meet state RPS requirements – Power delivered as part of “normal” system or utility supply. – Power generated from facilities built before 1990 – Hydropower

WAPA Initiative • Collaborative effort between – WAPA – FEMP – Key agencies (DOD, DOE, NASA, BIA) • Initial Focus on Existing Federal Customers • Three Products Anticipated • Renewable Power • Supplemental Renewable Energy • Renewable Energy Certificates (Green Tags)

• Recent Activities – FEMP provided seed money to WAPA – Western has been working with FEMP to develop a Marketing Brochure and Marketing Plan – Planning calls with Federal Agencies • Next Steps – Direct Contact with Existing Federal Customers – In response to level of interest, develop RFP • Bob Fullerton WAPA (720) 962 -7079

Other Opportunities • Austin Energy • Randy Jones (303) 275 -4814, Chandra Shah (303) 384 -7557 • Seattle City Light + PSE • Arun Jhaveri (206) 553 -2152 • SMUD • Bill Golove (510) 486 -5229 • TVA • Dwight Bailey (404) 562 -0564 • DESC Solicitations • John Nelson (703) 767 -8153 • GSA Solicitations (New Jersey, D. C. , Michigan) • Ken Shutika (202) 260 -9713

EPA Green Power Partnership • Developed in response to a recommendation in the President’s energy plan • Voluntary program to encourage and recognize green power purchasers • DOE and EPA are Founding Partners • Mission – Standardize green power procurement as part of best practice environmental management • Current Status – 110 Partners with a combined total commitment to over 675, 000 megawatt hours of green power annually

EPA GPP Guidelines • Eligible renewable resources – Solar, wind, geothermal, biogas, biomass, and small hydro – Green-e regional eligible resource standards – Percentage must come from new resources* • Can count – Grid-based green power – Renewable energy certificates – On-site power generation • Membership can be based on – A single facility – An operating unit – All facilities within a utility service territory, state, or entire organization

EPA GPP Purchase Requirements Leadership Circle Requires 4 times standard commitment

Current Federal Partners • U. S. Environmental Protection Agency • U. S. Department of Energy – – – Forrestal Headquarters Building, Washington, DC Golden Field Office, Golden, CO Denver Regional Office, Denver, CO National Renewable Energy Laboratory facilities, Golden, CO Facilities in Germantown, MD • U. S. Department of Interior – National Park Service, Independence National Park, Philadelphia, PA • U. S. Department of Agriculture, Headquarters Building, Washington, DC • U. S. Army, Walter Reed Medical Center, Washington, DC • U. S. Air Force, Dyess Air Force Base, Texas • U. S. General Services Administration – Binghampton Federal Building, Utica, NY – Pirnie Federal Building, Utica, NY

How Do You Sign UP? • Make Green Power Partnership commitment – Contact Pam Mendelson: pam. mendelson@ee. doe. gov, 303 -275 -4819 – Additional information at www. epa. gov/greenpower • Receive recognition – – – Partnership website Press releases Press events Logo usage Awards

Comment? Questions? Other Topics? Thanks David Mc. Andrew 202 586 -7722