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Policy Priorities

Federal - 1st Quarter 2008

Passage of the Energy Independence and Security Act of 2007 has significantly strengthened the ESPC program reach. Most obviously, it deletes the sunset provision and permanently authorizes the program which is a major achievement. The new law permits financing flexibility by allowing the use of appropriated funds to be combined with financing thereby leveraging the scope of ESPC projects. The law also prohibits agencies from establishing agency-wide or project specific policies to limit the project tenure to less than the maximum 25 year term. The law allows agencies to retain 100% of the energy savings on site which is another significant and very positive change.

There are also several very positive developments to report at DOE. As part of its efforts to reduce the contracting time frame, DOE has created a Center of Excellence to be located in Golden, Colorado which is intended to provide federal contracting staff with additional resources throughout the ESPC evaluation and selection process. In addition, DOE staff working with the DOE Office of the General Counsel has been working aggressively to streamline the ESPC timeline by tightening up the internal review process.

A new DOE effort to accelerate ESPC use by federal agencies is being undertaken under the DOE TEAM Initiative announced by Secretary of Energy Bodman in August. Under the TEAM Initiative, DOE has committed that by 2008, DOE sites will have in place plans to reduce energy intensity by 30%; reduce water consumption by 16%; install advanced meters throughout the site monitoring electric, thermal and water consumption; install on-site renewable energy (electric and thermal); install state-of-the art sustainable building components in at least 15% of site buildings; develop a pollution prevention assessment and plan; and develop both an operations and maintenance protocol and a monitoring and verification protocol.

Other Highlights of 2007 NAESCO Federal Advocacy Activities

• Participated in national coalition that is promoting national RPS/EPS legislation, which was passed by the House but eliminated from consideration in the final version of the energy bill that was signed into law. NAESCO intends to continue to work in 2008 with interested parties to promote an EPS which it believes would be a major stimulant for dramatically accelerating the creation of energy efficiency resources.
• Testified before Senate Committee on Environment and Public Works about energy efficiency and green jobs.