NAESCO Newsletter
First Quarter 2010
Advocacy
- NAESCO Advocacy Report
NAESCO’s advocacy work continues to expand to ensure that the
growing number of energy efficiency initiatives across the
country are cost-effective, sustainable, and offer new
opportunities for ESCOs and other NAESCO members.
New Members
NAESCO welcomes the following new members:
Upcoming Events
For a full list of all NAESCO Member News,
please
click here.
Featured Articles
Interview with Greg Kats of Good
Energies
Greg Kats is a Managing Director of Good Energies, a leading
global investor in renewable energy and energy efficiency industries
with $6 billion under management. He leads Good Energies investments
in energy efficiency and green buildings. Mr. Kats is a founder of
newsourcebank – the first U.S. green bank, and he is a founder of
the American Council on Renewable Energy. Recently, Mr. Kats
authored Greening Our Built World which evaluates the cost
effectiveness of “green community development” and presents the
results of the first-ever survey of green buildings constructed by
faith-based organizations.
What motivated you to write
Greening Our Built World?
We are going through the beginnings of a green revolution that will
involve large scale projects designing and retrofitting buildings.
The purpose of this book was to explore whether green building was a
niche industry or if it would go mainstream. Additionally, I wanted
to explore its cost effectiveness. After receiving detailed
information on 170 green buildings, I think we have a definitive
answer that on average green buildings have high energy savings and
reduced risks. The high profiles of the book’s sponsors, the
American Council on Renewable Energy, the American Institute of
Architects, the American Public Health Association, BOMA
International, Enterprise Community Partners, the Federation of
American Scientists, the National Association of Realtors, The
National Association of State Energy Officials, the Real Estate
Roundtable, the U.S. Green Building Council, and the World Green
Building Council, demonstrate that the book’s analysis is mainstream
and driven by private interests. Lastly, buildings are where we
spend the majority of our time so it’s important that we are using
energy effectively there.
How big of a role do you think
energy efficiency plays in the green economy?
Energy efficiency is by far the single most important piece of a
green economy and the single most important attribute of green
building. The US is the Saudi Arabia of energy efficiency; we can
cost effectively reduce energy 50% in buildings and in the future,
we can gut it by 70%. Greening is a cost effective means of
achieving deep energy efficiency gains for both older and new
buildings. Of the 170 green buildings we looked at, 18 buildings had
energy efficiency retrofits, those buildings on average had about an
80% cut in their carbon emissions. Data shows you can have deep
reductions in energy use through energy efficiency and renewable and
cost effectively reduce energy by 50%. The technologies we are
investing in at Good Energies, get to zero net energy for most
buildings in 5 years.
In Greening Our Built World,
you outline the employment benefits offered by green building; are
there any technologies or investments that you feel could create
more green jobs?
Green buildings typically divert 80-90 percent of waste through
separation, recycle, reuse compared to 30 percent through non green
buildings. Diverting waste results in twice as many jobs as opposed
to going to the dump because diverting waste is more labor
intensive. Energy efficiency is also an important security issue in
both the military and the economic sense of the word. Investments in
energy efficiency make cities more competitive. Wasteful practices
results in cities being less competitive.
What role do you see the ESCO
community playing in the “green” economy?
ESCOs are the most important institutions driving energy efficiency.
They have deep skill sets and a strong emphasis on measurement and
verification. They continue to expand technologies they use to
deliver results for their clients including onsite generation.
Are there any emerging green
technologies that you feel offer great potential?
There are several new technologies that offer great potential:
daylight harvesting, which uses daylighting first and artificial
lighting only when you need it. High performance glass gives you
enormous control over lighting quality. Ground source heat pumps use
the earth's temperature to provide heating, cooling, and hot water.
Ice storage allows you to operate your air conditioner at nighttime
to get substantial electricity reductions. Distributive storage uses
wind to displace peak load energy. Alert me, allows me to manage and
monitor energy use in my building from around the world.
What are your thoughts on the
current state of climate legislation?
It’s an uphill battle, the science is overwhelmingly clear. It’s
unfortunate it’s become a partisan issue especially because the
Republican Party has a long tradition of environmental protection,
Teddy Roosevelt, Richard Nixon, George H. Bush were all
environmental leaders. It’s depressing to see much of the party in
denial of the science. It is also counter productive, pessimists and
climate deniers think Americans lack the skills and innovation to
achieve improvements and reduce waste. As a venture capitalist, I am
very optimistic about America’s technical capability. I am also
optimistic that the average American can reduce energy waste and
America’s ability to capture a big part of the global industry.
Those who deny climate change are doing a disservice to our
competiveness.
How great of an impact do you feel
this Administration’s investments in efficiency and renewable energy
will have on the market itself?
Large, there has been a lot more investments in efficiency. People
know that people are serious about reducing energy waste and saving
tax payer dollars. They understand that the DOE is committed to
economic competitiveness and energy performance by building strong
US manufacturing capabilities around clean energy technologies that
could rapidly expand US employment and US exports.
Greening Our Built World was published by Island Press and
is available for purchase on their website which can be accessed
here.
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NAESCO Updates
Advocacy
During the fourth quarter of 2009 and the beginning of 2010,
NAESCO concentrated its advocacy efforts on federal government
energy efficiency initiatives and on several states that are
implementing new energy efficiency programs or which have
significant ESPC program issues.
FEDERAL
At the federal level we have been working on the issues
surrounding the implementation of the American Recovery and
Reinvestment Act, the inclusion of new funding for energy
efficiency in the upcoming Jobs Bill and the development of energy
and climate legislation.
American Recovery and Reinvestment Act (ARRA)
The ARRA, better known as the stimulus bill, appropriated more than
$20 billion for energy efficiency and renewable energy programs, as
well as another $20 billion of potential tax credits. The $20
billion of appropriations is supposed to be spent very quickly, with
all funds contractually obligated in the next two years. To date,
the implementation of ARRA by the US Department of Energy (DOE) is
lagging. DOE reports that it has paid out about 6.5% ($2.1 billion
of the authorized $32.7 billion) of its ARRA funding. The
“authorized” figure does not include the Loan Guarantee program,
another $4 billion. (www.energy.gov/recovery/)
Drilling down further to the programs that are administered by the
Office of Energy Efficiency and Renewable Energy (EERE), the figures
are $16.8 billion authorized and $687 million spent (about 4%).
NAESCO recently distributed a detailed report on the status of ARRA
funding and the barriers to ARRA expenditures, which is available on
the
NAESCO website.
NAESCO ARRA Advocacy Activities
NAESCO has been working with the National Save Energy Coalition,
which consists of hundreds of environmental, and energy efficiency
groups, industry trade associations and major companies to try to
accelerate the implementation of the ARRA programs. The Coalition is
in regular contact with White House and US DOE officials to push the
resolution of the issues that are holding up the expenditure of SEP
and EECBG grant funds.
NAESCO is also part of a small “SWAT Team” convened by US DOE to
address the implementation of revolving loan funds and other finance
plans that are elements of many SEP and EECBG plans. According to
DOE, approximately $1 billion of the available grant funds will be
devoted to revolving loan funds, most of which will be administered
by government agencies with little or no relevant experience. The
SWAT Team is assembling guidance documents and best practices
program guides that are distributed to the grantees through the US
DOE website and a series of webinars that are scheduled on a weekly
basis. One of the two major focuses of the SWAT Team is to ensure
that the loans funds will able to work efficiently with public
building ESPC projects. NAESCO is concentrating its work in this
area. The documents and downloadable versions of the past webinars
are available on the
US DOE website.
NAESCO is also part of a consortium that submitted proposals to
US DOE in the competitive EECBG program described above. NAESCO’s
role in the consortium will be to ensure the public building ESPC
programs are a major element of the proposed programs, and to
provide training to local government officials that will implement
the ESPC programs. The consortium anticipates submitting four
different proposals from four regional groups of communities –
Southeast, Midwest, California and Northeast.
To multiply our resources for this effort, NAESCO, in
collaboration with the Energy Services Coalition and NASEO,
submitted a proposal to US DOE for a grant to provide training and
technical assistance to states and local governments that will be
implementing ESPC programs as part of their SEP and EECBG plans.
This unsolicited proposal has now been superseded by a DOE
solicitation for technical assistance that is being run by the Oak
Ridge National Laboratory. NAESCO has received word that it is part
of the winning bid for Task 3, Financing Programs.
The Jobs Bill
The Congress is now working to assemble a set of smaller stimulus
bills, which are currently called the Jobs Bill, to be considered in
March. There is a lot of maneuvering about the composition of the
bills, which will apparently include extensions of tax credits (such
as energy efficiency new home construction). One component of the
bill will apparently be a residential program called Home STAR,
which has been dubbed “Cash for Caulkers.” President Obama has
embraced the program concept for its populist appeal (every voter
can participate). Manufacturers and big box stores that sell
insulation and equipment to homeowners are supporters. NAESCO has
been working with two national coalitions to ensure that companion
legislation called Building STAR will provide rebate and enhanced
tax incentives for the commercial and industrial sectors. We now
understand that Senator Merkley (D-OR) as a separate bill will
introduce Building STAR. NAESCO has drafted and circulated to key
Congressional staffers a measure that provides a dedicated funding
stream to the MUSH markets, because we believe that these markets
have special characteristics that require dedicated legislation.
This proposal has foundered because of the slow pace of ARRA
implementation. There is also now some talk in the advocacy
community that some of the energy provisions of the energy and
climate legislation (see below) may be included in the Jobs Bill.
Federal Energy and Climate Legislation
The third major federal initiative combines two initiatives that had
previously been separate: national energy efficiency and renewable
energy resource standards (EERS and RES) and a national greenhouse
gas emissions reductions policy (GHG). The House of Representatives
passed the American Clean Energy and Security Act of 2009 (ACES) on
a very close vote in late June. The Senate is now considering its
own version of the bill, which is being assembled in separate bills
being considered by the six Senate Committees that have asserted
jurisdiction of parts of the legislation (e.g., Energy and Natural
Resources, Environment and Public Works, etc.). The first of these
bills, the American Clean Energy Leadership Act (S. 1462, or ACELA),
passed the Senate Energy and Natural Resources Committee on June
17th by a vote of 15 to 8. ACELA contains no climate change or
cap-and-trade provisions, because they are under the jurisdiction of
the Environment and Public Works Committee. Senator Boxer (Chair of
EPW) and Senator Kerry released their draft bill, the Clean Energy
Jobs and American Power Act (CEJAPA or the Kerry-Boxer Bill) in late
September and passed the bill out of Committee without debate
because the Republican members of the Committee boycotted the
Committee meetings.
Shortly after the Committee action on the Kerry-Boxer Bill,
Senator Kerry announced that he would work with Senator Graham
(R-SC) and Senator Lieberman (I-CT) to draft a compromise bill that
can draw broad bi-partisan support. The Senators issued an outline
of their bill before the UN Climate Conference in Copenhagen, but to
date there is no flesh on the skeleton. We are now hearing that a
bill may be ready by April.
Senators Cantwell (D-WA) and Collins (R-ME) introduced a third
bill in late December in late December. Their bill, which is
entitled Carbon Limits and Energy for American Renewal (CLEAR) has
many of the same GHG reduction goals as the Waxman-Market and
Kerry-Boxer bills, but has a much simpler enforcement mechanism.
Instead of the elaborate emissions allocations formulas in
Waxman-Markey and Kerry-Boxer, the Cantwell-Collins bill would
auction all allowances. About 75% of the auction proceeds would be
returned to consumers as rebates, with the remaining 25% retained by
the Federal government for deficit reduction.
Energy Efficiency Policy - RES and EERS
Both ACES and ACELA mandate a number of national energy efficiency
programs, including a Renewable Electricity Standard (RES). This
means that utilities must by a date certain procure a mandated
percentage of their energy from renewable sources. ACES mandates 20%
by 2020; ACELA mandates 15% by 2021. In both bills approximately one
quarter of the mandate can be met with energy efficiency. This is
commonly known as an Energy Efficiency Resource Standard or EERS.
NAESCO is part of a national coalition that is exclusively
focused on making a standalone EERS a major provision of the
legislation. Twenty-two states now have EERS mandates for their
utilities. We are asking the Senate to enact a minimum 10%
standalone EERS, independent of whatever they may decide to do with
and RES. Senator Schumer (D-NY) has said that he will sponsor the
10% EERS. NAESCO Chairman Adam Procell has tried to recruit other
Senators as sponsors, by asking Senator Hagan (D-NC) to sign onto
the EERS. NAESCO will be approaching other companies to lobby their
home state Senators in support of a stand alone EERS.
It is important to note that the argument for a strong national
EERS is supported by a virtual blizzard of research reports that
document the economic development and job creations of energy
efficiency.
GHG Reduction or Climate Change Policy
The GHG provisions of the legislation involve the establishment of a
national carbon cap-and-trade system, in which the federal
government issues a limited number of carbon emission allowances (in
effect permits to emit CO2). The number of allowances is reduced
each year to reach the target level of emissions in a future year.
The first major debate is about how the initial allowances will
be distributed. The Obama administration has proposed that all
allowances be auctioned. Industries (including utilities) that emit
large amounts of CO2 have argued that forcing them to purchase
allowances at auction will deal the economy a body blow, by
increasing the cost of energy, and so they should be granted
allowances at no cost.
The second major debate is about the use of the proceeds from the
allowance auctions. NAESCO and the national coalition are urging
that a substantial portion of the proceeds be invested in energy
efficiency programs, because EE programs produce CO2 emissions at a
negative net cost. Consumer groups and advocates for low-income
ratepayers insist that most of the proceeds should be rebated to
ratepayers. Advocates for utilities and energy intensive industries
would like to see a substantial portion of the proceeds used to help
them defray the cost of implementing emissions reduction
technologies.
The coalitions that include NAESCO are arguing that cap-and-trade
is important because it produces the revenues that can finance
large-scale national EE programs. We are urging that the legislation
mandate that substantial portions of the allowances be used to
finance EE programs.
Media and Messaging
NAESCO is part of the National Save Energy Coalition (NSEC), which
is concentrating on communicating the job creation and economic
development benefits of EE to the Congress and the public. NSEC is
organizing a grassroots campaign of hundreds of energy efficiency
and renewable energy providers to counter the huge national media
campaign, financed by energy producers and utilities that is
delivering the message that climate change legislation will cripple
the national economy. NAESCO believes that by participating in this
national communications effort we can also help to realize our own
communications goals – to build the national reputation of the ESCO
industry. NSEC holds monthly webinars on the status of federal
legislation. NAESCO is a presenter in all of these webinars.
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REGIONAL
The most important regional initiative that NAESCO is working on
is in the Northeast: the Regional Greenhouse Gas Initiative (RGGI).
RGGI
RGGI is a prototype of a national carbon cap-and-trade program that
encompasses nine Northeastern states that auction carbon emissions
allowances and invest the auction proceeds in energy efficiency
programs. These RGGI-financed programs are complementary to the
substantial utility and state-administered EE programs in each of
the RGGI states. NAESCO was appointed to the Advisory Committee for
the New York program (approximately 34% of the total RGGI program)
that advises NYSERDA, the program administrator on the composition
of the RGGI program portfolio. So we are getting useful early
experience with the issues that will affect the investment of the
proceeds of a national cap-and-trade program.
NYSERDA’s initial program plan, approved last year, budgeted
about $525 million over three years. The draft revised program plan
budget, presented to the Advisory Committee today, is reduced to
about $301 million by two factors. The first is that because of the
recession the value of the allowances has dropped significantly,
from $3/tonne to $1.86/tonne. The second is that the Governor and
the Legislature have appropriated $90 million from the RGGI proceeds
to help balance the state budget. Lessons learned are that the
auction proceeds may be volatile during the early years and that the
proceeds are always subject to diversion from energy programs to
other government programs.
On top of these two major adjustments on the revenue side, the
Legislature passed Green New York legislation, which mandates that
about $125 million of the $301 million be spent on residential and
small commercial building EE programs and workforce training. NAESCO
and other members of the Advisory Committee questioned whether this
money could actually be spent effectively, since it is additional to
substantial sums from EECBG, WAP, the NYSERDA and utility
ratepayer-funded programs, and the Home STAR provisions of the
pending Jobs Bill. The answer to our questions was that the Green
Buildings spending mandate is absolute and not subject to NYSERDA’s
judgment as program managers. The lesson learned is that mandates
for the expenditure of auction proceeds or emissions allocations do
not optimize the use of those funds.
To accommodate the Green New York mandate, NYSERDA is proposing
to eliminate a program that NAESCO believes is at the core of the
RGGI concept – a program that solicits competitive bids for
innovative carbon emissions reductions – and to reduce funding for
commercial and industrial building programs. The rationale for
reducing the C/I programs is that that the ARRA SEP funding, which
was not anticipated when the original program plan was approved, is
supplying more money for MUSH market buildings than the RGGI budget
reduction. The elimination of the competitive bidding program is
apparently a trade-off to allow the continuation of several R&D
programs (carbon sequestration and smart grid). It is not clear to
NAESCO, and to other Advisory Committee members, that the research
programs are meaningful, in light of the billions that are being
spent on R&D in these areas across the country. The Advisory
Committee discussion indicated that these research programs are
politically untouchable, despite their questionable value.
NAESCO will now work with other members of the Advisory Committee
to attempt to restore funding to these programs.
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STATES
Perhaps the most exciting development at the state level is the
flurry of activity related to the receipt and dissemination of the
federal ARRA funding, which will invest about $11 billion in state
and local government EE programs in the next two years. But while
the states and local governments are working on their ARRA
implementation plans, a number of states are instituting or
expanding ratepayer-funded EE programs. Some states in which NAESCO
has been working are highlighted below.
California
On September 24, 2009 the California Public Utilities Commission
approved about $3.1 billion for energy efficiency programs in the
2010-2012 program cycle. This is a major re-affirmation of the
importance of energy efficiency to the future of California’s
struggling economy. During the months that preceded the Commission’s
decision, NAESCO filed two rounds of comments stressing the need for
timely Commission action and full funding of current programs until
the new programs start in the first quarter of 2010. NAESCO is now
working to digest the massive EM&V reports that evaluate the results
of the 2006 cycle of programs. These will guide the structure of
future program cycles and influence the national standards for
utility program EM&V.
Texas
The PUCT is considering a rule change that would significantly
increase the goals for energy efficiency and demand reduction
programs. NAESCO is participating in the proceeding that will
involve at least two rounds of comments.
Massachusetts
The state is approximately doubling its energy efficiency programs,
pursuant to the 2008 Green Communities Act. Utilities have filed
implementation plans. NAESCO is participating in a statewide
coalition of energy and environmental groups, and is co-sponsoring,
with the state Division of Capital Asset Management (DCAM) and the
Division of Energy Resources, a series of meetings and workshops
about how to maximize ESCO participation in Green Communities and
ARRA program implementation.
New York
The Energy Efficiency Performance Standard (EEPS) proceeding, which
approximately triples EE funding and puts utilities back into EE
program administration, is now beginning full implementation. NAESCO
is participating in the Evaluation Advisory Group, the successor to
the SBC Advisory Group, which is setting program EM&V standards and
protocols. Later in the year, the PSC will consider the renewal of
the Energy $mart program, the main NYSERDA program that has now been
operating for a decade.
New Jersey
NAESCO is monitoring the development of Governor Christie’s first
state budget, because rumors are that it will propose deep cuts in
the state’s large Clean Energy (ratepayer financed EE) program.
NAESCO is also gathering together a group of ESCOs to begin an
effort to reform the state’s performance contracting law to
facilitate ESPC projects.
Pennsylvania
The utilities will begin large EE programs (called Act 129 programs)
with aggressive savings goals in early 2010. The utilities filed
their program plans in mid 2009. Hearings on the plans were held
during the summer. The Pennsylvania Public Utilities Commission
(PAPUC) issued its decisions in mid-October. NAESCO filed comments
that urged the PAPUC to address the Act 129 mandate that at least
10% of program savings come from government and non-profit customers
by ordering the utilities to use their program funds to supplement
and expand the very successful Guaranteed Energy Savings Agreement
(GESA) program. The PAPUC rejected this suggestion, as it rejected
most of the program suggestions made by various parties, and
approved the utility plans without much modification. Rather than
establish a separate delivery channel for government customers, the
PAPUC decided to accept the utility approach of offering the same
incentives to government customers but to differentiate the
marketing to those customers. So ESCOs in Pennsylvania will have to
piece together the rebates offered for various ECMs, along with the
custom rebates, to make the best package for their customers.
North Carolina and South Carolina
Utility regulatory commissions in both states have ordered the
states’ major electric utilities – Duke and Progress Energy -- to
implement large new energy efficiency programs. Both state
commissions have rejected Duke’s program compensation proposal,
called Save-a-Watt, as advocated by NAESCO and a coalition of energy
and environmental groups. In December, the North Carolina Commission
approved a settlement negotiated by the coalition that preserves the
innovative aspect of the Save-a-Watt compensation plan (allowing
utilities to collect a fraction of the avoided cost of power the EE
programs replace) while reducing and capping the compensation at a
reasonable level.
Florida
NAESCO continues to monitor the proceedings to update utility energy
conservation goals based on current cost-effectiveness standards.
The analysis of the potential market for energy efficiency submitted
by the utilities does not seem credible. In contrast to the targets
that have been set by other states, which typically range from 1-2%
incremental savings per year, the Florida utilities are proposing
targets of less than 1% cumulative through 2020. NAESCO is working
with regional environmental and energy organizations to see how we
might assist them in making the case for more aggressive EE
programs. The talking point used by the interveners is that the
utilities and the PSC staff seem to think that a 2-3% rate increase
to fund EE programs is intolerable while a 30% rate increase to fund
new nuclear plants is reasonable. In December, the Florida
Commission ordered the utilities to resubmit their plans with more
aggressive goals.
Georgia
NAESCO is working with ESCOs and energy efficiency organizations to
enact legislation and a constitutional amendment to facilitate
performance contracting in Georgia. At present, the Georgia state
constitution does not permit the state to enter into a standard type
of performance contract for state facilities. Legislation that would
provide a limited performance contracting capability appeared on
track to pass the legislature last year, but was sidetracked on the
final day of the legislative session. The legislation is on the
docket again this year, and passage is expected. In the meantime, we
are working on drafting a constitutional amendment that would permit
a standard performance contracting program for state facilities. The
amendment would have to pass both houses of the legislature by
two-thirds votes and then be approved by the voters at a regular
state election. An amendment may be a long shot this year, given the
growing concern among voters about government debt at all levels –
national state and local.
Louisiana
NAESCO continues to support ESCOs working in Louisiana who are
working to resolve the ongoing issues around the monitoring and
verification of O&M savings in ESPC contracts. It now appears that
there may be another attempt in the legislature to eliminate or
severely restrict performance contracting. A similar attempt about
five years ago failed because of a coordinated effort by ESCOs
assisted by NAESCO. We are working again with ESCOs and their
consultants to try to make sure that any new legislation facilitates
rather than hinders performance contracting.
Arkansas
The Arkansas Public Service commission is beginning the process of
establishing a comprehensive portfolio of utility energy efficiency
programs. NAESCO will monitor the proceeding, submit comments and
work with energy efficiency and environmental groups to ensure that
the new programs offer opportunities for ESCOs and performance
contracting.
Illinois
The expanded Illinois utility EE programs started their second year
of implementation, with approximately double their first-year
budgets, in mid-June. NAESCO is working with the program managers
for the Commonwealth Edison program to set up meetings with ESCOs to
encourage the development of more comprehensive projects.
Michigan
The electric utilities have filed new energy efficiency program
plans. NAESCO is monitoring the development of those plans, and has
held a series of meetings with officials of the state Department of
Energy, Labor and Economic Growth (DELEG) and the state Department
of Management and Budget (DMB) about implementing a major state and
local government ESPC program with a major portion of its ARRA
funding.
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New Members
NAESCO welcomes the following new members.
Alumen8 – Alumen8 is a design
manufacturer of energy efficient, state-of-the-art, fluorescent
lighting fixtures and retrofit conversion kits.
Donnelly Sustainable Energy Services
- Donnelly Sustainable Energy Services is an independent, energy
services and energy consulting company that provides total turnkey
energy services to our clients. Donnelly Sustainable Energy Services
provides services that include energy master plans, utility bill
consulting, LEED consulting, feasibility studies for all types of
energy consuming/energy saving equipment, preparation and
administration of bid specifications, turnkey installation of all
types of energy conservation measures, financial analyses including
energy efficient tax strategies, rebate administration, energy
service agreements, and project financing options.
Thunderbird Mountain Facilities
Performance Services - Thunderbird Mountain Facilities
Performance Services is a team of professionals with a combined
experience level of 100 years servicing Arizona Facilities,
specializing in Educational Facilities.
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Upcoming Events
NAESCO's
Fifth Annual Federal Market Workshop
March 19, 2010
Pepco Building, 701 Ninth St., NW Washington, D.C. 20068
The fifth annual NAESCO Federal Workshop is a forum for public and
private sector representatives to discuss the emerging opportunities
in the federal marketplace. President Obama has indentified
investment in energy efficiency as one of the key ways to revitalize
the U.S. economy and put the country on a path to sustainable
prosperity. Through aggressive federal energy mandates, the Obama
administration has already started working toward a clean energy
future that will create millions of jobs while cutting our imports
of foreign oil. These mandates requires all federal buildings to cut
their energy use drastically and very quickly these government
entities will be looking for cost effective ways to reduce their
carbon footprint. This workshop will focus on how the energy
efficiency marketplace can leverage these unique opportunities by
participating in a dialogue with the public sector concerning the
value of ESCO projects, the fastest, cleanest and cheapest way to
reduce energy use.
To register, please
click here.Back to Top
Industry News
New Survey Finds Venture
Capitalists Investing In Green Technologies
According to a recent survey by the firm KPMG LLP, venture
capitalists may be moving away from investments in businesses that
produce electricity with wind or solar power, in favor of companies
that specialize in energy storage and conservation. The survey found
67 percent of respondents indicating that they expect venture
investment in start-up and growth companies to increase in 2010 from
2009 levels, a drastic shift from a similar survey last year, when
23 percent predicted an increase. The green-tech sector will be
particularly attractive to investors this year, according to the
survey. 77 percent of respondents said venture investment in green
technology will increase in 2010 compared with 2009, including 15
percent who project investment to jump by more than 20 percent. Of
the respondents, 38 percent said that the energy storage and
efficiency sector will see the most investment, up from 33 percent
in the 2009 survey. Meanwhile, 30 percent expect renewable energy to
get the most investment money in the next two years, a drop of six
percentage points compared with last year’s survey.
KPMG LLP is a global network of professional services firms
providing Audit, Tax and Advisory services. The survey, which polled
200 venture capitalists, investors, entrepreneurs, and bankers, will
be released at the upcoming “Going Green East” conference in Boston.
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Study Finds Energy Management Systems Market is
Still Only 14% Penetrated
A new study released by Pike Research finds that Energy Management
Systems (EMS) are being increasingly utilized by commercial building
property managers to help optimize energy consumption. According to
the report, automation and control capabilities enabled by EMS are
most frequently focused on heating, cooling, ventilation, and
lighting, which together account for approximately 57% of energy
consumed in commercial buildings. However the report finds that
despite the strong return on investment for EMS deployments, just
14% of the market potential is being realized.
The study contends that there are ample opportunities for growth as
new companies focused on the space emerge, and longstanding IT
companies and building management system companies gravitate to this
growing market. Pike Research forecasts that all of these factors
will help drive the commercial building energy efficiency market to
over $6.3 billion by 2020.
Pike Research is a market research and consulting firm that provides
in-depth analysis of global clean technology markets. An Executive
Summary of the report, entitled “Energy Management Systems for
Commercial Buildings” is available for free download on the firm’s
website.
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New Report Details Consumer
Savings from Energy Efficiency
The Consumer Federation of America recently released a report
stating that consumers in all 50 states can save money on home
energy bills if strong national energy efficiency policies are
enacted. The report found that even if all the costs of investing in
energy efficiency fell directly on households, on average, the
households would save money in all states, with a low of about $106
saved per year to a high of $460 saved per year. Additionally, the
report found that energy efficiency could lead to a 20 to 30 percent
reduction in energy use from utilities.
The report concluded that strong federal energy efficiency policies
that promote investments in efficient lighting, windows, home
heating and cooling systems effectively reduce home electricity and
natural gas bill by hundreds of dollars a year in every state. The
detailed state-by-state savings show that efficiency can create
jobs, reduce energy waste and reduce the overall cost of climate and
energy legislation for consumers.
The Consumer Federation of America is an advocacy, research,
education and service organization. To download a free copy of this
report, entitled “Building on the Success of Energy Efficiency
Programs to Ensure an Affordable Energy Future”,
click here.
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Obama Budget A Step In The Right
Direction For Energy Data
A new report issued by the ACEEE documents current gaps in federal
data collection and outlines a path forward beginning with
recommendations for appropriators in 2011 fiscal year. All levels of
government and many types of businesses rely upon accurate energy
efficiency analyses in order to shape policy and outline business
growth plans. Dependable analyses are grounded in good energy and
market data, much of which has historically been collected by the
Energy Information Administration (EIA) and other governmental data
agencies. The President’s 2011 budget request provides for a
long-overdue increase in funds for the EIA, an independent research
agency within the U.S. Department of Energy responsible for
collecting information about end-use consumption, energy efficiency
programs, and energy resources. This budget increase of $18 million
above the previous year’s budget of $110 million represents a good
trend towards better data collection but, as the report
demonstrates, funding for energy data collection should see
sustained increases in the years ahead. Similarly, the report points
out the need for expanded funding by other federal data collection
entities such as the Census Bureau and the Federal Highway
Administration.
Recently, the importance of accurate energy use data has grown due
to increased interest in using energy efficiency policies to promote
job creation using funding from the American Recovery and
Reinvestment Act of 2009 and potential funding in pending jobs
and climate legislation. In order to accurately quantify the energy
and financial impacts of these policies, reliable metrics must be
employed, and these require good data.
The full report, “Where Has All the Data Gone?” is available
for free download
here.
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Report Supports Expansion of
Mechanical Insulation
The National Insulation Association released a report promoting the
implementation of a comprehensive mechanical insulation and upgrade
program in the commercial and industrial market segments. Based on
more than 700 industrial energy assessments, the report contends
that the implementation of such a program would result in $4.8
billion in energy savings, 43 million metrics tons of GHG emissions
and the generation of 89,000 jobs.
According to the report, insulating 45 linear feet of 8 inch
insulation equates to $13,600 per year in energy savings. If the
facility lasts for more than 20 years, the total energy savings
would be $272,000. The report contends that this work can be
completed by one worker within a single day. These savings are
equivalent to removing 12 card per year from the highway.
The National Insulation Association (NIA) is a trade association
representing the mechanical and specialty insulation industry. You
can access the report, “Mechanical Insulation Maintenance and
Upgrade: Annual Impact”,
here.
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EIA Energy Outlook Projects Reduced Oil and
Natural Gas Imports
The U.S. Energy Information Administration (EIA) recently released
their “Annual Outlook” which presents updated projections for U.S.
energy consumption and production through 2035. Among the report’s
findings was that there will be moderate energy consumption growth
and greater use of renewables. This means that the total primary
energy consumption will grow by 14 percent between 2008 and 2035, as
the fossil fuel share of total U.S. energy consumption falls from 84
percent to 78 percent. The report predicted that total U.S.
consumption of liquid fuels, including both fossil liquids and
biofuels, grows from 19 million barrels per day in 2008 to 22
million barrels per day in 2035. Biofuels account for all of the
growth, as consumption of petroleum-based liquids is essentially
flat. As a result, reliance on imported oil declines significantly
over the next 25 years.
Additional report findings contend that total electricity
consumption, including both purchases from electric power producers
and on-site generation, grows by 1 percent per year over the
projection period, from 3,873 billion kilowatthours in 2008 to 5,021
billion kilowatthours in 2035. Natural gas and renewable power
plants account for the majority of electricity generating capacity
additions. The natural gas share falls slightly due to the
completion of coal plants under construction, and the addition of
new renewable capacity. However, by 2035 the share of generation
from natural gas again increases to 21 percent. Renewable generation
shows the strongest growth between now and 2035, spurred by
incentive programs in more than half the States. The renewable share
of generation grows from 9 percent of generation in 2008 to 17
percent of generation in 2035.
The report concludes that existing policies that stress energy
efficiency and alternative fuels, together with higher energy
prices, will curb energy consumption growth and shift the energy mix
toward renewable fuels. However, assuming no new policies, fossil
fuels would still provide about 78 percent of all the energy used in
2035.
The Energy Information Administration provides policy-neutral data,
forecasts, and analyses to promote sound policy making, efficient
markets, and public understanding regarding energy and its
interaction with the economy and the environment. To access the
early release of the report,
click here.
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Study Says Undersea Release of Methane Is
Under Way
Researchers at the University of Alaska, Fairbanks released a study
contending that global warming is unlocking vast stores of the
greenhouse gas methane that are frozen into the Arctic permafrost,
setting off potentially significant increases in global warming.
According to the report, this change is under way in the East
Siberian Arctic Shelf, west of the Bering Strait.
The report states that atmospheric concentrations of methane have
more than doubled since pre-industrial times. Most of it comes from
human activities including energy production, cattle raising and the
cultivation of rice. But about 40 percent is natural, including the
decomposition of organic materials in wetlands and frozen wetlands
like permafrost. Peat land that flooded as sea levels rose after the
last ice age, is degrading in part because runoff from rivers that
feed the Arctic Ocean is warmer than in the past. The report
estimates that annual methane emissions from the East Siberian
Arctic Shelf total about 1.1 million tons. According to the report,
sea methane ordinarily undergoes oxidation as it rises to the
surface, where it is released as carbon dioxide. But because water
over the shelf is at most about 50 meters deep, the gas bubbles to
the surface there as methane. As a result, atmospheric levels of
methane over the Arctic are 1.85 parts per million, almost three
times as high as the global average of 0.6 or 0.7 parts per million.
Concentrations over the shelf are 2 parts per million or higher.
The study, entitled “Arctic Seabed Methane Stores Destabilizing,
Venting” was produced by the International Arctic Research Center
(IARC) at the University of Alaska Fairbanks. The center was
established as a cooperative research institute supported by both
the U.S. and Japanese governments. To download a free copy of the
study,
click here.
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Department of Energy Launches Website
Highlighting Efficiency Projects
The U.S. Department of Energy’s Office of Energy Efficiency and
Renewable Energy has launched a new website to promote the
widespread benefits of energy efficiency. Called Energy Empowers,
this compellation of human interest stories and project summaries
shows how federal, state and local governments are putting the
Recovery Act's clean energy funds to work. Energy Empowers
highlights stories from the clean energy economy. This blog and
multimedia site seeks to put a human face to the people, places,
technologies and developments that will impact our energy future and
economy, showing everyone that these advancements are real, growing
and becoming part of our communities around the United States. The
DOE is encouraging everyone working in the energy space to visit and
share their own success stories. These stories can include DOE and
ARRA projects, as well as stories about communities, private
citizens and businesses taking the initiative in building America
towards a clean energy future.
To submit your own story,
click here.
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Hospital Study Puts Price Tag on
California's Pollution
A new study released by Rand Corp attempts to put a price tag on the
state's polluted air. According to the study, California's air
pollution led to nearly $200 million in hospital spending over a
three-year period because of asthma, pneumonia and other
pollution-triggered ailments. The study focused on pollution from
ozone, most commonly derived from automobile tailpipe emissions, and
fine particulate matter, such as soot from fireplaces and
wood-burning stoves. The study analyzed records from hospitals and
air quality agencies from 2005 to 2007. As many as 30,000 people
statewide sought relief in emergency rooms because of air pollution
during that period, the report states.
Rand researchers say their study for the first time breaks down who
paid the bills. Medicare and Medi-Cal paid two-thirds of the costs
associated with poor air quality, according to the study. Commercial
insurers and other private sources footed the rest of the bill.
Among private insurers, Kaiser Foundation Health Plans accounted for
$30 million of the $193 million spent during the three-year study
period. More than two-fifths of the expenses were concentrated in
Los Angeles County, with the rest mostly concentrated along the
state's inner valleys, from Kern to Sacramento counties, where
illness-causing particulates are more likely to linger. The report
contends that hospital costs are just a fraction of the hundreds of
millions of dollars spent each year on pollution-related medical
care.
The RAND Corporation is a non-profit think tank helping to improve
policy and decision making through objective research and analysis.
The study, The Impact of Air Quality on Hospital Spending, can be
downloaded for free
here.
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Member Projects
Ameresco Awarded Portsmouth Naval
Shipyard Contract
Ameresco was awarded a contract to implement two energy
conservation measures at Portsmouth Naval Shipyard under the
Department of Energy’s Mid-Atlantic Region Super Energy Savings
Performance Contract. The ECMs consist of compressed air system
retrofits including two new air compressors and controls
optimization, and condensate system repairs including condensate
piping and pump stations. The project will save $8.5 million in
energy and utility costs.
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Ameresco to Implement Energy
Efficiency Upgrades at the National Archives
Ameresco was awarded the contract to implement energy
conservation measures at the National Archives and Records
Administration (NARA) Archives I flagship facility. This is
Ameresco’s first project awarded under the new DOE ESPC contract.
The ECMs include cogeneration, new high-efficiency boilers, water
conservation measures, direct digital controls (DDC) optimization,
high efficiency lighting and controls, and building envelope
improvements. The project will save over $6.9 million in energy and
utility costs.
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Ameresco Awarded Contract by
Department of Energy
Ameresco was awarded a contract to implement five energy
conservation measures at FCI Jesup under the Department of Energy’s
Southeast Region Super Energy Savings Performance Contract. ECMs
include lighting system improvements, water and wastewater
conservation, site wide utility metering, HVAC system improvements,
controls system improvements, heating system improvements, and
process improvements. Additionally, the renewable energy ECM
provides for the installation of a biomass-fired heating system to
produce steam for the Institution’s heating, domestic hot water, and
process loads using the existing steam distribution system. The
project will save over $27.7 million in energy and utility costs.
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Constellation Energy Project Named
Best In New England by Association of Energy Engineers
Constellation Energy’s recently completed retrofit of Bristol
Community College was named “Best in New England” by the Association
of Energy Engineers. Efficiency upgrades included retrofit lighting
and lighting controls, energy efficient motors, EMS upgrades, water
conservation measures, Vending Machine Controls, Window Film, Boiler
Improvements, Power Factor Correction and Photovoltaics. The project
is projected is expected to save the college $441,791 annually.
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Johnson Controls Helps Rome, NY
Improve Energy Efficiency with Upgrades Citywide
The city of Rome, N.Y., selected Johnson Controls to provide
energy efficient upgrades to multiple facilities throughout the
city, including the installation of a state-of-the-art aeration
system at its wastewater treatment plant. The improvements are part
of a 15-year performance contract with Johnson Controls, which is
expected to save the city more than $8.5 million in energy costs.
The city has already realized more than $246,000 in savings during
the construction period, which was completed in October 2009. The
energy program upgrades include the installation of an energy
efficient diffused aeration system at the wastewater treatment
plant, replacing a 30-year-old mechanical system that was
inefficient in handling increased demand for waste treatment.
Additional improvements include the installation of variable speed
drives on low-lift pumps at the Water Filtration Plant, advanced
data tracking management tools and lighting retrofits, designed to
improve overall energy efficiency while saving taxpayer dollars.
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Honeywell Completes Stimulus Backed
Solar Project for the City of Wilmington
Honeywell announced it has installed the first of two solar
photovoltaic arrays for the city of Wilmington, Del. The solar
installations, which will consist of almost 3,400 panels, are part
of a broader $14.5-million energy retrofit and renewable energy
program that will decrease utility costs and greenhouse gas
emissions tied to city-owned facilities and infrastructure. The
energy improvements will reduce electricity consumption by an
estimated 2.8-million kilowatt-hours per year. The program will also
decrease carbon dioxide emissions by nearly 4.4-million pounds each
year. The city will pay for the entire program from the energy
savings the upgrades produce. Honeywell guarantees approximately
$1.14 million in savings per year under a 20-year performance
contract.
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NORESCO to Implement $34 Million in
Energy Upgrades on Capitol Hill
The Office of the Architect of the Capitol awarded an energy savings
performance contract to NORESCO for work in the office
buildings of the U.S. House of Representatives. The project includes
$34 million in facility infrastructure upgrades in the Rayburn,
Longworth, Cannon, and Ford House Office Buildings, and the House
Page Dormitory. The infrastructure upgrades will pay for themselves
through more than $67 million in reduced energy and water
consumption costs over the project term. After completion of
construction, the House Office Buildings are expected to reduce
energy consumption by 23 percent and total water consumption by 32
percent.
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Atlantic Cape Signs Agreement With Pepco
Energy Services For Solar Photovoltaic Project
Atlantic Cape Community College will enter into a Power Purchase
Agreement with Pepco Energy Services, Inc., for a solar
photovoltaic power project at the college's Mays Landing and Cape
May County campuses. Pepco Energy will design, own and operate one
of the largest land-based solar systems in New Jersey. If completed
today, the installation would rank as the largest single community
college solar installation in the nation. Atlantic Cape chose Pepco
Energy Services to develop a 2.3 megawatt solar electric generating
system for its campuses. The solar photovoltaic system will generate
up to 48 percent of Atlantic Cape's total annual electric
consumption, at a set rate, independent of market rates. By entering
into the agreement, Atlantic Cape will realize savings of $220,000
the first year and up to $6.8 million over the 20-year life of the
contract. The electricity generated per year will be equivalent to
the amount needed to power approximately 220 homes.
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Department of Energy Awards Contract to
SAIC
Science Applications International Corporation (SAIC)
announced it has been awarded a prime, follow-on contract by the
Department of Energy to provide technical, managerial and project
support services to the U.S. Energy Information Administration
(EIA). The multiple award, indefinite-delivery/indefinite-quantity
contract has a five year base period of performance and a contract
ceiling of $288 million for the three awardees. Under the contract,
SAIC will continue to support the EIA in areas including energy
analysis and econometric modeling; statistical analysis; survey
operations; and web and data system/software design and development.
SAIC may provide deliverables including issue and trend analyses,
energy and climate change technology surveys, facilities capital and
operation and maintenance cost assessments, and historical trends
analysis, as well as web and data system prototypes. SAIC will also
help EIA develop, manage, operate, and maintain comprehensive energy
data collection programs and systems; and maintain domestic and
international energy models for forecasting as required.
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Schneider Electric Implements Energy
Efficiency Upgrades at Kansas School District
Hoisington Unified School District 431 in Hoisington, Kansas, is
completing $1.39 million in facility enhancements designed to
improve operations, comfort and efficiency at the district's six
facilities. Schneider Electric will complete the work as a
performance contract with the district. Schneider Electric
guarantees that USD 431 will reduce its utility costs by almost
$68,000 annually once the implementation of the improvements is
completed. Schneider Electric will replace antiquated lighting
systems with new energy-efficient lamps and ballasts that also
provide improved illumination. Existing building controls will be
re-commissioned and a new BMS will be installed where there is none.
The new, unified system will provide consistent control throughout
the district for improved efficiency and comfort. Mechanical
equipment replacements include new rooftop equipment at two of the
buildings, as well as electrical system upgrades at one of the
elementary schools.
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Omak School District Awards ESPC to
Schneider Electric
The Omak School District in Omak, Wash., is implementing an energy
saving performance contract with Schneider Electric. The
$600,000 project, funded with a combination of district capital,
utility incentives and reallocated savings, will reduce the
district's energy costs by 15 percent. Schneider Electric
anticipates completing the project by April of 2010. Schneider
Electric estimates that the Omak School District will reduce its
carbon emissions by 136 tons annually when the performance contract
is completed. This is equivalent to planting 5,458 trees, removing
29 cars from the roads, or making 18 households carbon neutral.
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Trane Implementing Infrastructure
Upgrades In Clayton County Expected to Save Nearly $575,000 Annually
Clayton County in conjunction with Trane will soon undertake
infrastructure upgrades to its buildings anticipated to improve its
annual budget by nearly $575,000. The county expects the renovations
to save $361,000 in annual utility costs and to generate $213,000 in
annual carbon credit revenues. The upgrades are scheduled for seven
county facilities and the county landfill. The $5.5 million in
renovations will include replacing or redesigning heating,
ventilation and air conditioning systems to increase temperature
control, reduce energy consumption and decrease operating costs at
the Department of Family and Children Services complex, Annex III,
the County Archives building, the justice complex and the Clayton
Center behavioral health buildings.
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Eastern Aroostook Regional School Unit 39
Partners with Trane and Launches Energy Upgrades
Administrators at the newly formed Eastern Aroostook Regional School
Unit 3939along with Trane are poised to launch $2.8 million
in energy-saving infrastructure upgrades expected to save more than
$250,000 annually, improve the learning and teaching environment and
reduce dependence on oil as an energy source. The district also
expects to save more than 84,000 KWh of energy and 71,000 gallons of
fuel by completing the improvements at the Caribou High School and
Caribou Technology Center. Scheduled for completion in October 2010,
the upgrades will reduce energy costs, replace aging equipment and
improve indoor air quality. The majority of the savings for the
project will be driven by a new biomass boiler plant, which depends
on low-cost wood chips instead of fuel oil.
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Member News
For a full list of all NAESCO Member News and Projects,
please
click here.
Almeco Group Together With The Atlanta
Based International Facility Announce The Formation of ALMECO USA,
Inc.
Located in Atlanta, GA, ALMECO USA can now provide customers
with immediate access to the full VEGA 95% & VEGA 98% product lines
as well as a variety of Enhanced, Standard, Semi-Specular and 92%
High Reflective White painted Aluminum for energy savings
technologies. In addition to the broadest range of lighting &
architectural aluminum products, ALMECO USA will represent
Almeco-Tinox Gmbh, carrying Tinox Energy & Vega Energy products for
the Solar industry.
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Comfort Systems USA Energy
Services Receives Qualifications for the Department of Energy’s
Qualified List of Energy Service Companies and GSA Schedule
Comfort Systems USA Energy Services has received
qualification for the United States Department of Energy’s Qualified
List of Energy Services companies. The company has also been awarded
a General Services Administration (GSA) contract number and
inclusion on GSA’s schedule 03FAC Facilities Maintenance and
Management. Government agencies can now use the GSA Advantage online
ordering and shopping website to take advantage of Comfort Systems
USA Energy Services’ energy efficiency solutions including energy
audits, building commissioning, energy program support services, and
energy management planning and strategies.
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State-of-the-Art Emissions
Scrubbers at Constellation Energy's Brandon Shores Power Plant
Commence Commercial Operation
Constellation Energy announced that its flue gas
desulfurization or "scrubber" project at its Brandon Shores Power
Plant in Anne Arundel County, Md., has begun commercial operation,
making Brandon Shores one of the cleanest-burning power plants of
its kind in the nation. This nearly $1 billion investment is one
component of a clean air program which will ensure Constellation
Energy's coal-fired power plants will meet all emissions
requirements of the Maryland's Healthy Air Act, which was signed
into law in 2006. Constellation Energy's investment in this
environmental upgrade will reduce the coal-fired power plant's
sulfur dioxide (SO2) emissions by an estimated 95 percent and
existing mercury emissions by 90 percent.
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FMI Capital Advisors Advises Cogent Energy,
Inc in Its Sale to EnerNOC
FMI Capital Advisors announced it has advised Cogent Energy,
Inc. of Concord, CA, on its sale to EnerNOC. Cogent Energy is a
monitoring-based commissioning energy consulting, and energy
engineering firm delivering comprehensive energy efficiency and
on-site generation solutions to government, educational,
institutional and private facilities owners.
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Justin Testa Joins Onset as New President
Onset announced that Justin Testa has been hired as the company’s
new president. Most recently, Mr. Testa served as the executive vice
president and business unit manager for Cognex Corporation, where he
was responsible for the development and execution of a business
strategy designed to accelerate the company's growth and market
position of its core machine vision business with revenue exceeding
$100 million.
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