1. Phoenix Convention Center Phoenix, Arizona Combined Heat and Power for Federal Facilities and the U.S. DOE CHP Technical Assistance Partnerships Track 6: Integrated EnergySession: CHP Making a Comeback Tom Broderick U.S. DOE Southwest CHP Technical Assistance Partnership August 11, 2015

2. Energy Exchange : Federal Sustainability for the Next Decade U.S. DOE CHP Technical Assistance Partnerships

3. Energy Exchange : Federal Sustainability for the Next Decade 3 CHP Technical Assistance Partnerships  Technical Assistance Providing technical assistance to end-users and stakeholders to help them consider CHP, waste heat to power, and/or district energy with CHP in their facility and to help them through the development process from initial CHP screening to installation.  Education and Outreach Providing information on the energy and non-energy benefits and applications of CHP to state and local policy makers, regulators, end users, trade associations, and others.  Market Opportunity Analysis Supporting analyses of CHP market opportunities in diverse markets including industrial, federal, institutional, and commercial sectors

4. Energy Exchange : Federal Sustainability for the Next Decade Where is the Remaining Potential for CHP? Source: ICF internal estimates (2014)

5. Energy Exchange : Federal Sustainability for the Next Decade CHP Technical Potential in Federal Facilities Source: ICF CHP Technical Potential Estimates, 2013

6. Energy Exchange : Federal Sustainability for the Next Decade o Department of Defense (Air Force, Army, Coast Guard, Marines, Navy) o Department of Agriculture (USDA) o Department of Energy (DOE) o Department of Health and Human Services (HHS) o Department of Housing and Urban Development (HUD) o Department of Justice (DOJ), including the Bureau of Prisons (BOP) o Department of Veterans Affairs (VA) o General Services Administration (GSA) o National Aeronautics and Space Administration (NASA) o US Postal Service (USPS) Facility types include large campuses, hospitals/medical centers, laboratories/research buildings, industrial, offices, data centers 6 Agencies with CHP Systems

7. Energy Exchange : Federal Sustainability for the Next Decade 7 Benefits of CHP for Federal Facilities Attain energy efficiency goals Environmental sustainability Emissions reduction goals Net zero Energy security/resiliency

8. Energy Exchange : Federal Sustainability for the Next Decade o Large Complex Projects — Agency familiarity with traditional ECMs o Longer Development Cycle o Measuring “Savings” for ESPC/UESC (vs. just selling power) — Baseline – establishing amount and cost of displaced energy — Not straightforward – multiple inputs/outputs/assumptions — Need to calculate “Net Reduction” Increase in natural gas consumption for CHP Reduction in electricity purchased Reduction in natural gas for existing boiler o O&M by existing plant personnel —ESPC requires guaranteed performance 8 Federal CHP Market Challenges

9. Energy Exchange : Federal Sustainability for the Next Decade CHP for Critical Infrastructure 9

10. Energy Exchange : Federal Sustainability for the Next Decade CHP and Critical Infrastructure “Critical infrastructure” refers to those assets, systems, and networks that, if incapacitated, would have a substantial negative impact on national security, national economic security, or national public health and safety.” Patriot Act of 2001 Sec. 1016 (e) Critical Infrastructure CHP Applications: o Military and national security o Hospitals and healthcare centers o Water and wastewater treatment plants o Police, fire, and public safety o Centers of refuge (often schools or universities) o Food distribution facilities o Telecom and data centers

11. Energy Exchange : Federal Sustainability for the Next Decade o A key principle of disaster preparedness: ability to maintain operation despite a devastating event o CHP ( if properly configured ): – Offers the opportunity to improve critical infrastructure resiliency – Can continue to operate, providing uninterrupted supply of electricity and heating/cooling – Can be more reliable than backup generators 11 Critical Infrastructure Resiliency

12. Energy Exchange : Federal Sustainability for the Next Decade Combined Heat and Power: Enabling Resilient Energy Infrastructure for Critical Facilities 12 Read More: Oak Ridge National Laboratory March 2013 https://www1.eere.energy.gov/manufacturing/distributed energy/pdfs/chp_critical_facilities.pdf Guide to Using Combined Heat and Power for Enhancing Reliability and Resiliency in Buildings DOE and EPA September 2013 http://www.southwestchptap.org/Data/publication s/chp_for_reliability_guidance.pdf

13. Energy Exchange : Federal Sustainability for the Next Decade How to Implement a CHP Project with the Help of the CHP TAP 13

14. Energy Exchange : Federal Sustainability for the Next Decade CHP TAP Technical Assistance Screening and Preliminary Analysis Feasibility Analysis Investment Grade Analysis Procurement, Operations, Maintenance, Commissioning Uses available site info. Estimates savings, installation costs, simple paybacks, equipment sizing and type Quick screening questions with spreadsheet payback calculator (Free) 3rd Party review of engineering analysis. Review equipment sizing and choices Review specifications and bids, limited operational analysis

15. Energy Exchange : Federal Sustainability for the Next Decade Federal CHP Project Finance Options Direct Development Federal Construction Acquisition Military Construction(MILC ON) Facility Sustainment Restoration and Modernization (FSRM) External Capital Energy Savings Performance Contacts (ESPC) Utility Energy Service Contracts (UESCs) Power Purchase Agreements (PPAs) Enhanced-Use Leases (EULs)

16. Energy Exchange : Federal Sustainability for the Next Decade o Evaluate CHP as an energy efficiency strategy to help meet energy and emissions reduction goals o Consider CHP as a key resource to meet renewable energy portfolio targets or goals o Examine new facility and facility modernization planning policies for proper evaluation of CHP options o Review critical infrastructure and energy resiliency needs and role of CHP with district energy and microgrids o Partner with DOE / CHP TAPs on an agency-wide CHP market assessment to identify cost-effective projects 16 Five Ways to Advance CHP Development Opportunities

17. Energy Exchange : Federal Sustainability for the Next Decade 17 President’s Executive Order 13624: 40 GW of new CHP by 2020 Achieving this goal would: – Increase total CHP capacity in the U.S. by 50 percent – Save $10 billion a year in energy costs – Save one quadrillion Btus of energy – equivalent to 1% of all U.S. energy use – Reduce emissions by 150 million metric tons of CO 2 annually — equivalent to 25 million cars – Result in $40-$80 billion in new capital investment in manufacturing and other U.S. facilities Source: DOE/EPA, CHP: A Clean Energy Solution, August, 2012, www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_clean_energy_solution.pdf

18. Energy Exchange : Federal Sustainability for the Next Decade 18 CHP Energy and CO 2 Savings Potential Source: DOE/EPA, CHP: A Clean Energy Solution, August, 2012, www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_clean_energy_solution.pdf

19. Energy Exchange : Federal Sustainability for the Next Decade Recommended CHP Resources and Tools 19

20. Energy Exchange : Federal Sustainability for the Next Decade A Few of our Favorite Resources and Tools 1. Good Primer Report 2. DOE/EPA Catalog of CHP Technologies (updated 2014) http://energy.gov/sites/prod/files/2013/11/f4/ chp_clean_energy_solution.pdf http://www.epa.gov/chp/technologies.html

21. Energy Exchange : Federal Sustainability for the Next Decade 3. Project Profile Database (150+ CHP case studies, searchable by state, sector, technology, etc.) www.southwestchptap.org/profiles (scroll down) 4. DOE CHP Installation Database (List of all known CHP systems in U.S.) https://doe.icfwebservices.com/chpdb/ A Few of our Favorite Resources and Tools (cont’d)

22. Energy Exchange : Federal Sustainability for the Next Decade 6. Community Energy: Planning, Development, and Delivery A Few of our Favorite Resources and Tools (cont’d) 5. DOE Database of Incentives & Policies (DSIRE) www.dsireusa.org http://www.southwestchptap.org/Data/publications /USCommunityEnergyGuidehi.pdf

23. Energy Exchange : Federal Sustainability for the Next Decade 23 A Few of our Favorite Resources and Tools (cont’d) 7. And of course… Free CHP Screening and Other Technical Assistance from the CHP TAP http://energy.gov/eere/amo/chp-technical-assistance-partnerships-chp-taps

24. Energy Exchange : Federal Sustainability for the Next Decade o Contact us or your regional CHP TAP for assistance if you… – would like a free CHP screening to determine if there is an opportunity for CHP at your site – already have an existing CHP plant and are interested in expanding it 24 Next Steps

25. Energy Exchange : Federal Sustainability for the Next Decade 25 Thank You o Contact info: o Other contacts: Christine Brinker, Director U.S. DOE Southwest CHP TAP cbrinker@swenergy.org 720-939-8333 southwestCHPTAP.org Tom Broderick U.S. DOE Southwest CHP TAP tbroderick@swenergy.org 928-527-8036 southwestCHPTAP.org Claudia Tighe, US DOE CHP Deployment Manager, claudia.tighe@ee.doe.gov, 202-287-1899. claudia.tighe@ee.doe.govClaudia Tighe, US DOE CHP Deployment Manager, claudia.tighe@ee.doe.gov, 202-287-1899. claudia.tighe@ee.doe.gov Claudia Tighe US DOE CHP Deployment Manager claudia.tighe@ee.doe.gov 202-287-1899