Energy Contract Saves Navy in Hawaii Money, Megawatt Hours

Story Number: NNS100205-07Release Date: 2/5/2010 1:06:00 PM
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By Krista Stehn, Naval Facilities Engineering Command Hawaii Energy Team Public Affairs

PEARL HARBOR (NNS) -- The Navy held an important kickoff meeting Feb. 3 at Navy Region Hawaii for an $8.1 million Energy Savings Performance Contract (ESPC) awarded in late December 2009 to NORESCO LLC.

The contract is expected to save the Navy at Pearl Harbor 1,521 megawatt hours of electricity and $430,000 annually. It will help Navy Region Hawaii achieve 2.2 million pounds per year reduction in carbon dioxide and a .72 percent annual reduction in energy consumption.

"ESPC projects, like this one, are instrumental in helping federal agencies meet stringent energy reduction requirements," said Captain Bret Muilenburg, regional engineer, Navy Region Hawaii and commanding officer, Naval Facilities Engineering Command (NAVFAC) Hawaii.

"This unique win-win ESPC vehicle enables us to leverage 3rd party financing, which helps Navy Region Hawaii reach its energy goals, reduce Navy utility costs, and provide valuable jobs to our local economy."

The ESPC encompasses three energy conservation measures at Pearl Harbor Naval Shipyard, Naval Station Pearl Harbor Wahiawa Annex, and Pacific Missile Range Facility, Kauai.

The first component of the project involves lighting upgrades replacing less efficient T12 and T8 light bulbs with high efficiency bulbs. The second and third energy conservation measures involve air conditioning upgrades.

Constant-volume-air conditioning systems will be retrofitted to deliver variable-air-volume cooling with the installation of variable frequency drives, dampers and controls. In addition, thermostat controls will be installed that provide start/stop and temperature reset functions allowing air conditioning savings during unoccupied hours.

"The ESPC with NORESCO LLC allows Navy Region Hawaii to improve the efficiency of several buildings guaranteeing energy savings," said Muilenburg. "Reduced utility costs have a significant impact on the Navy, ultimately increasing the availability of scarce resources for military missions."

Energy policy and legislation mandate federal agencies to reduce energy consumption by three percent annually, as well as decrease greenhouse gas emissions. These strict federal requirements, along with budget constraints, have required many agencies like Navy Region Hawaii to explore alternative methods of financing energy projects such as ESPC.

An ESPC is a contractual partnership between a federal agency and an energy services company (ESCO). It is a tool that can be used by federal agencies to implement energy projects for facilities without providing the upfront capital costs.

As part of the contract, the ESCO performs a comprehensive energy audit identifying energy conservation measures. They then pay the upfront costs for identified energy conservation measures. The customer, in this case Navy Region Hawaii, repays the ESCO from project's cost savings.

Anticipated start up of the project will occur in the next several months. NORESCO LLC is expected to complete the project in the summer of 2011.

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