GSA Region 2 marks Earth Day with millions in taxpayer savings
NEW YORK -- The Northeast and Caribbean Region of the U.S. General Services Administration celebrated Earth Day with two ceremonial check presentations representing over $2.5 million dollars in taxpayer savings and revenue from energy conservation efforts.
“I was extremely impressed with what our energy partners have accomplished in some of our buildings,” said Regional Administrator John A. Sarcone III, GSA’s Northeast and Caribbean Region. “Public and private sector relationships like the ones we are celebrating here today between GSA, Trane, NuEnergen, EnerNOC, and Con Edison help our green energy projects to pay for themselves — thus making “sustainability” sustainable from a business and industry perspective.”
GSA Region 2 made history this year by earning $2.2 million in rebate revenue, almost double the estimated $1.2 million originally anticipated, as a result of executing projects through the Department of Energy’s energy savings performance contract. Representatives from Trane and Con Edison presented Sarcone and Region 2 employees with a ceremonial check in the amount of $2,233,859 to signify revenue earned for installing energy efficient equipment that will lead to cost savings in GSA owned and operated buildings.
“Trane has been on a journey with Region 2 to make improvements to your buildings to make them more comfortable and better for the environment. It’s the best example of teamwork and partnering I’ve been involved in,” said Scott Lewin, general manager of Comprehensive Energy Solutions, Public Sector for Trane.
GSA Region 2 generates revenue for taxpayers through demand response programs in New York and New Jersey. In these programs, GSA voluntarily sheds load during peak demand periods, usually in the summer, and receives money for upholding its commitments to shed load whether or not called upon by the power grid operators and utilities.
Representatives from NuEnergen, the region’s partner in demand response, presented a ceremonial check April 26 to represent the $429,430.54 in revenue that GSA earned in the past year under the demand response program.
“GSA Region 2 is the leader across the entire GSA in terms of initiative and activity,” said Brett Wu, senior client service manager, NuEnergen.
When GSA began its partnership with NuEnergen in 2010, GSA had one building participating in the reduction of about 100 kilowatt hours of energy. Seven years later, the participation has expanded to 17 buildings and a commitment to reducing 9,000 kilowatt hours of energy, Wu said.
“Region 2 is, far and away, you earn more demand response revenue, and hopefully you’ll continue to do so in the years to come,” Wu said.
EnerNOC, GSA’s energy power procurement partner, reported annual savings estimated at over $2.5 million each year compared with the previous year, and a total of $10 million over the 48-month term.
“By bringing federal agencies together, we’re leveraging a great amount of spending which makes the procurement events more competitive,” said Jon Harvey, EnerNOC.
A reverse auction platform process encourages energy vendors to submit their lowest bids over the internet, which enables GSA to get the most competitive pricing.
“GSA Region 2 was first to adopt it. As soon as they pioneered the adoption, others followed,” Harvey said.
- Under an energy savings performance contract, Trane installed 98 energy conservation measures, such as controls, lighting, and chiller plants throughout fully occupied buildings on projects worth more than $114 million over the 18-year contract term.
- Annual cost savings for energy savings performance contracts are estimated to be over $2.5 million more than the previous year and over $10 million in the total contract term.
- Since Region 2 began participating in demand response in fiscal year 2011, it has earned $2.3 million in total revenue.
- Last summer alone, Region 2 earned $375,000 in demand response revenue, achieving another annual record.
"We want to make sure buildings become more efficient, that they’re comfortable, and we’re really excited for what we’ve done so far and looking forward to the future," said Caitlin Prager, commercial and industrial energy efficiency program manager for ConEdison.
To learn more about the GSA Region 2’s energy savings performance contracts and demand response program, visit go.usa.gov/xQK2T and go.usa.gov/xQK2j.