1. Renewable Working Group Renewable Power Purchasesat Federal Facilities By David McAndrew Federal Energy Management Program

2. Why Purchase Renewable Power? • Demonstrates Federal Leadership • Relatively easy way to meet energy conservation and greenhouse gas goals • Preferable for agencies with limited capital budgets • Allows generation to be sited in most economical location • Helps grow market to critical size • Promotes National Energy Security • Because you have to meet you RE goal somehow

3. Federal Energy Management Goals Executive Order 13123 • Reduce energy consumption (renewable use counts) • Facility energy per square foot to be reduced by 30 percent in 2005 and 35 percent in 2010 relative to 1985 • Industrial/laboratory energy to be reduced by 20 percent in 2005 and 25 percent in 2010 relative to 1990 • Reduce greenhouse gas emissions 30 percent by 2010 compared to 1990 • Expand use of renewable energy • 2.5% of Federal facility electricity consumption by 2005

4. WHAT PURCHASES COUNT TOWARDS GOAL • E.O. 13123, Sec 710. “Renewable Energy” means energy produced by solar, wind, geothermal, and biomass. • Does not give a preference to a specific technology • Does not differentiate between types of biomass • E.O. 13123 Guidance Requirements • Contract must specify renewable purchase requirement • Excludes system supply and state RPS requirements • Purchase must come from new renewable resource • On line after 1990 • Should have consistent standard for purchases and on-site

5. Direct Assistance Individual agency initiatives Map correlating federal agencies with purchasing opportunities Guidance DESC and GSA Regional/Utility Aggregations WAPA FEMP Renewable Purchasing Program • Coordination • Federal agencies • DESC and GSA • Share experiences • Share resources • EPA GP Partnership • Free publicity • Demonstrate Leadership • Private Initiatives • Utility Green Pricing • Green-e • WRI

6. Education & Outreach Workshops Presentations Communications Material Guidebook Green Power Toolkit Annual FEMP Awards Strategy Development Making a Federal case for renewable power Product development for Federal Agencies Identifying funding opportunities FEMP Renewable Purchasing Program

7. Federal Purchasing Methods • Utility Green Pricing • Areawide Contract (AWC) Exhibit • Utility contract • “If it is a PUC approved rate then it must be just and reasonable” • Solicitation in competitive electricity market • General Services Administration (GSA) • Ken Shutika (202) 260-9713 • Defense Energy Support Center (DESC) • John Nelson 703-767-8333 • Renewable Energy Certificates Purchases • Can be a tough sell • Competitive Purchase?

8. Select Federal Renewable Power Purchase Contracts Federal Agency LocationGwhResource Utility Green Pricing 18 Agencies Denver, CO 4.1 Wind DOE -WIPP (Sandia) White Sands, NM 1.5 Wind Retail Competitive Electricity Procurements NASA Johnson Texas 10 Wind DOE, GSA, DOA, Army Washington DC 44 LFG/Wind Wholesale Competitive Electricity Procurements Edwards AFB California 133 Wind/Bio Renewable Certificate Purchases EPA CA,OH,MA,WA 21.4 Various

9. Premium Funding Sources • Direct Appropriations • Savings from competitive procurement of electricity or natural gas • Bundled into a “Best Value” electricity procurement • FAR Part 23.703(Environmentally Preferable Purchasing) can be used as justification for renewables purchase • Energy Efficiency Savings • SEPs ??

10. Renewable Power PurchasingLessons Learned • Load aggregations can lead to big purchases but: • Target big users • Don’t herd cats • Keep it simple • Utility green pricing should be a Partnerships • Consider customizing product • Be upfront and clear on sources and benefits • “So, now I understand what renewable power is, What’s this certificate thing you’re trying to sell me?” • Anything that costs less than a penny must be a good deal!!! ($0.01 X 5% of load = .0005 per kwh)

11. Assistance,Advice,Concerns • David McAndrew, FEMP HQ 202-586-7722, david.mcandrew@hq.doe.gov • Chandra Shah, National Renewable Energy Laboratory (NREL) 303-384-7557, chandra_shah@nrel.gov • Bill Golove, Lawrence Berkeley National Laboratory (LBNL) 510-486-5229, whgolove@lbl.gov