Phoenix Convention Center Phoenix, Arizona GSA’s Actions under the PPCC GSA’s Pipeline Session 1, Track 5Meeting the PPCC Sharon Conger Public Building Service GSA [August 11, 2015]

Energy Exchange : Federal Sustainability for the Next Decade GSA’s Deep Retrofit Concept Held a Charrette with all ESCOs and GSA internal stakeholders to discuss if Deep Retrofits were Possible in ESPCs Open, collaborative and non-competitive environment to identify barriers and solutions to “raise the bar” on the level of savings an ESPC can provide to government agencies. Requested out of the box thinking.

Energy Exchange : Federal Sustainability for the Next Decade Presidential Memo  Presidential Memorandum -- Implementation of Energy Savings Projects and Performance-Based Contracting for energy savings – Issued December 2,  The Federal Government shall enter into a minimum of $2 billion in performance-based contracts in Federal building energy efficiency within 24 months from the date of this memorandum.  GSA’s commitment is $175 million in improvements  FEMP suggestion:  Program 25% more task order value than your Agency’s commitment.

Energy Exchange : Federal Sustainability for the Next Decade GSA’s Actions to meet the PPCC  Created a PMO to: Provide Consistent Guidance and Capture Best Practices Provide Subject Matter Experts to support regions during ESPC development Centralized Contracting and Executive Project Management for NDER Provides quality assurance to regional ESPC contracting Develop system to ensure essential EPSC administration during contract performance period Project Executive for the NDER program task orders  PMO membership includes Portfolio, budget, finance, energy team, contracting, and regional representatives and subject matter experts.  Additionally, one legal counsel for programmatic issues was assigned.

Energy Exchange : Federal Sustainability for the Next Decade GSA’s Approach All 11 of GSA’s regions were required to have an ESPC project to help GSA meet it’s goal They could do their own project or participate in NDER 8 Regions choose to participated in NDER 17 potential task orders were started under the NDER NOO All projects had the goal of December 30, 2013 awards or earlier.

Energy Exchange : Federal Sustainability for the Next Decade GSA National Deep Energy Retrofit Challenge (NDER) Goals Demonstrate best practices for maximizing overall ESPC project energy savings; Advance progress toward EISA goals; Accelerate deployment of underutilized and renewable technologies; Further expose GSA regions to DOE ESPC IDIQ contract process and resulting improvements in ESCO selection; Identify and understand processes necessary to get to deeper energy retrofits or net zero energy; Identify structural, contractual and technical impediments.

Energy Exchange : Federal Sustainability for the Next Decade RESULTS How did we do? Awarded $191M in improvement value task orders. Average DOE IDIQ task order energy savings: 18% Average Non-NDER GSA task order energy savings: 12% Average NDER task order energy savings: 38% 96 percent of the PMO-managed contracts (measured by contract value) actually got awarded, compared to only 19 percent (2 task orders) of the non-PMO-managed contracts. None of the Regionally managed UESC projects were awarded.

Energy Exchange : Federal Sustainability for the Next Decade Commissioner’s Memo based upon PPCC Phase 1 Results In order to stretch the limited funds we have, beginning FY15, we will not fund any renovation projects from direct appropriated funds, if they can be accomplished with an ESPC. We intend to use ESPCs and Utility Energy Services Contracts (UESCs) to get the maximum possible improvement to each building as long as it can be amortized over the 25-year potential term of these contracts. Toward that end, we will combine energy conservation measures (ECMs), so that measures with a short payback offset those with a longer payback in order to fully optimize the 25-year potential authority. The Council on Environmental Quality and the Office of Management and Budget expect GSA to set an ambitious goal for round two of the President’s ESPC challenge. We believe that DOE’s formula-based figure ($169.5M) is a good target: although it will require a significant effort, it is achievable if GSA applies the lessons learned from round one. Toward that end, PBS will keep the PMO in operation and to have it provide centralized program management for all ESPC contracts (i.e., Regions would not be able to opt out). The Regions would carry out the project management as they did for the NDER program.

Energy Exchange : Federal Sustainability for the Next Decade PPCC Phase 2 Continuation of all Projects that did not award in PPCC Phase 1 Analyzed buildings with highest EUI by region and provided recommendations for inclusion in Phase 2 Allowed Regions to submit any projects they wanted for consideration. Current program has a total of 65 buildings covering over 37M Square Feet

Energy Exchange : Federal Sustainability for the Next Decade How GSA built a pipeline of 150% of our Commitment Level 1. Engaged the ESCO community 2. Centralized PMO for program guidance 3. Showed NDER Success 4. Upper Management Support

Energy Exchange : Federal Sustainability for the Next Decade For More Details: Come see us at : – Session 2 Track 1 Session – GSA’s NDER Program: Doubling the Energy Savings from Financed Projects