1. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Slide 1 FEDERAL ENVIRONMENTAL SYMPOSIUM (West) – 6/3/09 The Bonneville Power Administration Utility Energy Services Program for Federal Agencies: History and Successes Frank Brown BPA Energy Efficiency Federal Sector Lead

2. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Slide 2 FEDERAL ENVIRONMENTAL SYMPOSIUM (West) – 6/3/09 What is BPA? A Unique Federal Agency  Part of the U.S. Department of Energy – One of four federal power marketing administrations  BPA is Self-Funded and Non-Appropriated - provides Financial & Contracting Flexibility  Ratepayer funding brings Efficiency, Cost Control, Accountability & a Customer Focus  Markets Power from 31 federal hydro projects in the Columbia River Basin, one nonfederal nuclear plant and several other small nonfederal (mostly wind) power plants. – Wholesales firm power to 150 utilities and federal agencies (also sells surplus power to an additional >100 utilities and power marketers) – Sells 35% of NW firm power, owns 75% of the high-voltage transmission in its service territory – Firm power service territory includes Idaho, Oregon, Washington, Western Montana, and small parts of N California, N Nevada, N Utah, and NW Wyoming. – $3.5 Billion Annual Revenue, $17 Billion in Assets, an Operating Utility, Businesslike, but Not for Profit  Being another Government entity facilitates simple, efficient “Fed-to-Fed” transactions  Being a regulated operating electric utility facilitates Federal agency to utility energy services contracts

3. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Slide 3 FEDERAL ENVIRONMENTAL SYMPOSIUM (West) – 6/3/09 Why Energy Efficiency? Benefits to BPA and the Region’s Utilities and Ratepayers  Limits BPA’s reliance on power from nuclear, coal-fired and natural gas fueled power plants, purchased on the open power market to meet its loads.  Energy Efficiency is BPA’s least cost resource, keeping rates lower than if other sources of new power supply were used.  Per the Northwest Power Act, BPA must meet the energy efficiency targets outlined in the Northwest Power and Conservation Council’s Power Plan.  Helps reduce its load; the extra power generated by the Federal Columbia River Power System can be profitably sold in Nevada, Arizona and California, which helps keep rates lower for BPA Pacific Northwest ratepayers. Benefits to other Federal Agencies and the Energy Efficiency Industry  Reduces Federal agency energy, utility bill, operations and maintenance costs, improves facilities and agency infrastructure, improves safety and productivity, and helps agencies meet their energy efficiency and renewable energy goals.  Helps “Grow the Pie” for private sector energy efficiency businesses, creating jobs, and contributing to an improved local economy.

4. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Slide 4 FEDERAL ENVIRONMENTAL SYMPOSIUM (West) – 6/3/09 History of the Federal Program  Technical support started in June 1995. Despite a power supply surplus at BPA in the late 1990’s which ended the BPA utility programs, the Federal Program continued to operate, but on a 100% reimbursable basis.  Between 1995-2000, the Federal Program was offered nationwide and overseas at State Dept. facilities, providing technical, engineering, project development and implementation, and financing support to any agency seeking assistance with an energy efficiency or renewable project.  In 1995, 1996 & 1997, agencies mostly ordered energy audits or metering support, performed by BPA engineers.  In 1998, the Federal Program started to do full turnkey jobs – designing, procuring & implementing projects on behalf of other federal agencies – BPA started to share reimbursements with BPA private contractors.  The Federal Program completed its first Third Party Project Financing in January 1998.

5. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Slide 5 FEDERAL ENVIRONMENTAL SYMPOSIUM (West) – 6/3/09 History of the Federal Program, cont.  In 2001, the Federal Program began to focus on energy efficiency projects within the Pacific Northwest and BPA’s service territory. At this time the Federal Program began to work on a non-reimbursable basis, offering incentives for kWh/year produced in the BPA service territory, for projects which reduced BPA loads.  In 2001, BPA estimated that its Federal Program was the fifth largest utility implemented federal agency energy efficiency program, nationwide. From 2001-2006, about half of the Program was implemented in the Pacific Northwest, and about half on a fully reimbursable basis in the western states where BPA sold surplus power.  In 2007, the Federal Program shifted to 100% in-region (Pacific Northwest) projects, closing out the remaining out-of-region projects.  Starting in 2008, the Federal Program began implementing energy efficiency projects at BPA owned facilities, in addition to the facilities of about 20 other agencies.

6. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Slide 6 FEDERAL ENVIRONMENTAL SYMPOSIUM (West) – 6/3/09 Milestones  In March 2006, BPA achieved a cumulative savings of more than 100,000,000 first year kwh in the Pacific Northwest, through Federal projects funded, supported, and/or implemented by BPA.  In February 2007, the Federal Program passed the $100 million mark in terms of the costs of Federal Program projects completed for agencies in the region and in the southwestern states. Today, the $150 million threshold of projects completed for other agencies is being approached. – Includes about $27 million in BPA rebates and incentives for Pacific Northwest Federal agency electric energy savings projects, – and $123 million in agency funds provided to the Federal Program to meet cost- sharing requirements or for projects that BPA implemented on a fully reimbursable basis (in region and out of region), – BPA also facilitated an additional $125 million of third-party financing for agencies in the region, the western states, and in other parts of the nation.  And just this April, BPA passed the 200,000,000 first year kwh/year savings mark from its Pacific Northwest Federal Program completed projects. This is like adding a new small dam to the Federal Columbia River Power System!

7. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Slide 7 FEDERAL ENVIRONMENTAL SYMPOSIUM (West) – 6/3/09 Savings and Cost of In Region Projects FYkWh/Year SavingsaMWBPA $ SpentAgency $ Spent 200110,703.6001.22$243,755$930,000 200227,310,4003.12$1,361,192$4,100,000 200321,504,3002.45$2,467,266$3,725,000 200415,785,9001.81$1,580,799$2,950,000 200516,584,1411.89$882,550$5,095,000 200632,045,0133.66$1,438,500$8,800,000 200725,908,4302.96$1,952,510$4,697,515 200835,669,4884.07$8,302,814$7,193,797 200923,114,2252.64$8,266,542$4,549,761 Total208,625,49723.82$26,495928$42,041,073

8. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Slide 8 FEDERAL ENVIRONMENTAL SYMPOSIUM (West) – 6/3/09 Agencies worked with  Air Force, Fairchild, McChord, Edwards, Vandenberg, and Vance AFBs  Army, Aberdeen Proving Ground, Fort Lewis, Fort Riley, Fort Irwin, and Presidio of Monterey  Army Corps of Engineers, NW Division, ERDC, CERL  Bonneville Power Administration, EF&W and Transmission Groups  Bureau of Land Management  Bureau of Reclamation, PNW and Mid-Pacific Regions  Coast Guard, 13 th and 17 th Districts  DOE, Albany Research Center, Western & Midwest Regional Energy Efficiency Offices, Office of Science/PNNL, DOE – Oak Ridge, DOE – Richland, and DOE – Idaho  Federal Aviation Administration  Fish and Wildlife Service, Pacific Region  Food & Drug Administration Geological Survey, Western and Central Regions GSA, Pacific Rim, Northwest Arctic, Great Lakes, Rocky Mountain and Heartland Regions, HQ Indian Health Service  NOAA WASC and MASC  National Park Service, Pacific West and Intermountain Regions  Navy, SW Division, Navy Region NW, NBK Bases Bangor, Bremerton, Everett, Keyport, Whidbey NAS, SWFPAC, IMF, FISC, & Puget Sound Naval Shipyard, Fallon NAS, and Post Graduate School  Postal Service, Western Region  State Department  Immigration & Customs Enforcement  USDA Agricultural Research Service, NRCS, Farm Service Agency  USDA Forest Service, PNW and Northern Regions

9. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Slide 9 FEDERAL ENVIRONMENTAL SYMPOSIUM (West) – 6/3/09 Types of projects  Lighting – Drop Shipments of CFLs and replacement lamps – LED, Cold Cathode, High Intensity Discharge, custom solutions, daylighting – Whole building lighting redesign and retrofit  HVAC – Chiller and Boiler Improvements and Replacements – Industrial compressed air system improvements – Controls, VFDs and scheduling, pumps, motors, and fans  Energy Management Control Systems – Design and system programming, tune-ups, re-commissioning – Metering – Troubleshooting and system repairs  Renewables & Alternative FuelsIrrigation Systems – Ground & Water Source Heat Pumps- Pump replacements & repairs – PV and Solar-electric systems- Canal improvements – Small Wind Power systems- Computerized water management

10. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Slide 10 FEDERAL ENVIRONMENTAL SYMPOSIUM (West) – 6/3/09 Services provided  Project Development and Design – Engineering support for project cost & feasibility evaluation – Energy Auditing for systems, buildings or whole sites – Engineering design, modeling, assessments, surveys, and project definition  Financing – Third Party Financing agreements – BPA (and other local utility) Energy Efficiency incentives (where available)  Project Implementation – Project Implementation & Construction Management Support – Subcontractors available through pre-competed BPA contracts – Bulk material purchases  Measurement and Verification (planning and implementation) – Metering Systems – Engineering support for complex M&V

11. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Slide 11 FEDERAL ENVIRONMENTAL SYMPOSIUM (West) – 6/3/09 The Federal Program Today  Working with more than a dozen Pacific Northwest agencies.  More than 320 projects under development or implementation, which could produce an estimated 117,000,000 first year kWh/year savings, as well as natural gas and water savings.  BPA is managing more than $40 million of agency funds, and over $25 million in approved BPA incentives for those projects.  Offers project development, financing and implementation services to federal agencies within the Pacific Northwest at a fully reimbursable level (all fuels), and provides incentives for kWh savings produced in its service territory.  Works with dozens of subcontractors throughout the region to develop and implement energy efficiency opportunities and projects, and helps to champion the energy efficiency cause nationwide through utility and energy efficiency organizations.

12. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Slide 12 FEDERAL ENVIRONMENTAL SYMPOSIUM (West) – 6/3/09 Active projects AgencyNumber of ProjectsAgencyNumber of Projects Air Force10F&WS3 Army24GSA12 Army Corps of Engineers5Navy60 BPA102NPS7 BOR59USFS3 DOE34USDA2 Reported As of 5/30/09Estimated for Rest of FY 09 Projects Completed45 ~ 130 kWh/year saved 23,114,225~ 53,000,000 Agency Cost$8,266,542~ $18,200,000 BPA Cost$4,549,761~ $ 18,800,000

13. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Slide 13 FEDERAL ENVIRONMENTAL SYMPOSIUM (West) – 6/3/09 Services Provided Today  Audit and engineering support for project design, analysis and evaluation. – Provided by BPA Engineers or third party subcontractors  Project implementation, including turnkey project delivery and cradle to the grave administrative and project management support. – Access to dozens of BPA subcontracts through BPA contracts. – Bulk purchasing through BPA pre-competed/negotiated prices.  Third party financing facilitation.  Incentive/rebates for electrical energy savings produced in BPA’s service territory.

14. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Slide 14 FEDERAL ENVIRONMENTAL SYMPOSIUM (West) – 6/3/09 How to work with BPA  BPA receives project orders through site specific, regional and national Basic Ordering Agreements, Memorandums of Agreement, Utility Energy Services Contracts, Intradepartmental Purchase Requests, Intergovernmental contracts, and Interagency Agreements.  Civilian agencies often access BPA using Interagency Agreements as a federal agency providing utility services under FAR 41 and the Economy Act.  DOD installations usually access BPA as an operating electric utility under 10 USC 2913(b), (c), and (d) using an Utility Energy Services Contract.  Civilian agencies and DOD installations may also use 42 USC 8256(c) to access BPA using Utility Energy Services Contracts.

15. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Slide 15 FEDERAL ENVIRONMENTAL SYMPOSIUM (West) – 6/3/09 Recovery Act Funds  Under certain circumstances, BPA may accept Recovery Act funds from agencies to implement energy efficiency and renewable energy projects.  BPA must be accessed as an operating electric utility contractor to the agency, not as part of a federal agency to federal agency relationship. (This is a common relationship with many agencies – so often, this is not an obstacle.)  In addition, the agency must hold the funds while BPA implements the project (Recovery Act funds cannot be advanced to BPA), with BPA getting reimbursed only upon project completion and acceptance by the agency. (This is also a common relationship with several agencies, so this also may not be a problem for agencies.)

16. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Slide 16 FEDERAL ENVIRONMENTAL SYMPOSIUM (West) – 6/3/09 Contact Information Frank Brown Federal Sector Lead and Program Manager Federal Agency Energy Efficiency Program Bonneville Power Administration Phone: (206) 220-6774 Email: febrown@bpa.gov