>> THANKS FOR JOINING OUR SESSION. THANKS TO THE ORGANIZERS FOR THE OPPORTUNITY TO PRESENT THIS WORK. OUR PRESENTATION TODAY IS RECENT ASSESSMENT OF 75 SOLAR PHOTOVOLTAIC SYSTEMS. I'M NICHOLE LIEBOV, I LEAD THE DISTRIBUTED ENERGY PROGRAM AT THE DEPARTMENT OF ENERGY FEDERAL ENERGY MANAGEMENT PROGRAM, FEMP, JOINED BY MY COLLEAGUES JAL DESAI AND ANDY WALKER. I'D LIKE TO TAKE A QUICK MOMENT TO THANK THE AGENCY -- AND SUBAGENCY STAFF WHO PARTICIPATED IN THIS EFFORT, ESPECIALLY OUR POINT OF CONTACT AT EACH OF THE 75 SITES. I WOULD ALSO LIKE TO ACKNOWLEDGE SUPPORT OF SEVERAL COLLEAGUES INCLUDING RACH AL SHEPARD, GERALD ROBINSON AND ELIZABETH. BEFORE WE GET INTO THE PERFORMANCE ASSESSMENTS AND METHODOLOGY BEHIND, WE WANTED TO PROVIDE SOME BACKGROUND ON THE SCALE OF THE OVERRAL FEDERAL VOLTAIC LANDSCAPE. WE HAVE ANALYZED DATA FROM ADOS -- ACROSS THE FEDERAL GOVERNMENT BY AGENCY AND YEAR PLACED IN SERVICE USING DATA FROM FISCAL YEAR 2020, COMPLIANCE TRACKING SYSTEM, CTS. AS YOU CAN SEE FROM THE CHARTS, THE FEDERAL GOVERNMENT HAS OVER 3,000 PV SYSTEMS WITH MAJORITY FROM THE DEPARTMENTS OF DEFENSE AND INTERIOR WITH GOOD REPRESENTATION FROM A VARIETY OF OTHER AGENCIES AS WELL. ON THE PIECHART ON THE RIGHT YOU CAN SEE 300 SYSTEMS SINCE 2017, MANY MORE THAN 10 YEARS OLD. MORE THAN 900 SYSTEMS INSTALLED BEFORE 2002, SO VERY BROAD PORTFOLIO DEMONSTRATES TO ENSURE LONGEVITY. NEXT SLIDE PLEASE. PERFORMANCE ASSESSMENTS WERE CONDUCTED FOR SEVERAL KEY PURPOSES, FIRST WE WANTED TO IDENTIFY THE PERFORMANCE POTENTIAL OF THE ASSETS IN ORDER TO UNDERSTAND HOW THEIR PERFORMANCE COMPARED TO THE PREDICTED OR MODELED PERFORMANCE. WE ALSO SOUGHT TO PROVIDE AGENCIES WITH INFORMATION FOR EACH SITE IN ORDER TO IMPROVE THEIR OPERATIONS AND MAINTENANCE BY LEVERAGING, THE RESULTS ARE ALSO INTENDED TO HELP INFORM BOTH FUTURE DESIGN DECISIONS AND FEASIBILITY STUDIES. DESIGN WILL TAKE THE FORM OF OPTIMIZING THE INVERTER TO ARRAY SIZE AND TAKING STEPS TO PREVENT PARTICULAR MODES OF FAILURE. FOR FEASIBILITY STUDIES INFORMATION HOW AN ACTUAL SYSTEM PERFORMS CAN BE USED TO CALCULATE LIFE CYCLE COST. NEXT SLIDE PLEASE. HERE WE'VE PROVIDED OVERVIEW OF OUR SAMPLE OF 75 SYSTEMS, ANALYZED FROM 16 AGENCIES AND SUBAGENCIES. YOU CAN SEE FROM THE TABLE WE HAD A WIDE RANGE OF SYSTEM SIZES FROM ONE KW TO 4 MEGAWATTS, WHILE THE AVERAGE WAS SLIGHTLY OVER 400 KILOWATTS INCLUDING SYSTEMS GOVERNMENT OWNED AND THIRD-PARTY OWNED, DOMESTIC AND INTERNATIONAL LOCATIONS. AND SITES PROVIDED PRODUCTION DATA FOR THESE ANALYSES. WHILE THE MAJORITY OF THE SITES WERE ABLE TO PROVIDE DAILY INTERVAL DATA FOR THEIR SYSTEMS PRODUCTION, SOME WERE LIMITED TO WEEKLY OR MONTHLY DATA. LATER ON IN THE PRESENTATION WE'LL DISCUSS HOW THIS VARIATION AFFECTS KEY PERFORMANCE INDICATOR. WITH THAT I'LL TURN IT OVER TO JAL. THANK YOU. >> HELLO, EVERYONE. IN THIS CHART BASICALLY, THIS FLOWCHART SHOWS HOW EACH OF THE PV PERFORMANCE EVALUATIONS WERE PERFORMED. SO REQUEST THE AGENCY, SOMEONE FROM THE AGENCY, STAFF MEMBER, WOULD SEND THE PRODUCTION METER OR ACTUAL PV PRODUCTION DATA. AND THE OVERALL IDEA IS TO COMPARE THE MEASURED PRODUCTION, ACTUAL PRODUCTION, THE MODEL PRODUCTION THROUGH SIMULATION. SO ONCE WE GET THE PRODUCTION DATA THROUGH THE PRODUCTION METER IT CAN BE 15 MINUTES, 30 MINUTES INTERVAL DATA, HOURLY, WEEKLY, OR MONTHLY. SO, ALONG WITH THAT WE WOULD REQUEST SYSTEM DESCRIPTION INFORMATION AS WELL SUCH AS WHAT IS THE SYSTEM, THE LOCATION, THE PANEL, AS WELL AS ALL OF THE AS-BUILT DRAWINGS. SO ONCE WE GET THIS INFORMATION FROM THE SITE, THEN WE WOULD ACCESS THE HISTORIC SOLAR RADIATION AND TEMPERATURE THROUGH NATIONAL SOLAR RADIATION DATABASE, OR THE WEATHER COMPANY, SUBSIDIARY OF IBM. THE SYSTEM DESCRIPTION WITH THE WEATHER DATA WE WOULD INPUT THAT IN SAM, A SYSTEM MODEL TO CALCULATE MODELED PRODUCTION AND THEN COMPARE THE ACTUAL OR MEASURED PRODUCTION FROM THE SITE THAT THEY HAD SHARED WITH US, WHAT IS THE MODELED PRODUCTION AND WE WOULD REPORT OUT AND GENERATE A REPORT. NEXT SLIDE PLEASE. SO, THIS IS AN EXAMPLE OF THE PV PERFORMANCE REPORT. FIRST AS YOU CAN SEE ON THE LEFT-HAND SIDE, WE TALK ABOUT THE PV SYSTEM DESCRIPTION, MOST OF THIS INFORMATION IS PROVIDED BY THE SITE AND WHICH GETS INPUTTED IN THE SAM. IF THE PV SYSTEM IS A LABEL, WE PUT THAT IN THE REPORT, IF THERE ARE ASSUMPTIONS DURING THE MODELING WE WOULD STATE THAT. THEN WE WOULD REPORT OUT THE SYSTEM PERFORMANCE. SO BASICALLY WE WOULD REPORT OUT THREE KEY PERFORMANCE INDICATORS WHICH ANDY WALKER WILL TALK ABOUT LATER IN THE PRESENTATION. WE REPORT PERFORMANCE RATIO, AVAILABILITY, ENERGY RATIO, AND THEN WE ALSO SHARE THE RESOURCES WHICH MIGHT BE HELPFUL FOR THE SITE. NEXT SLIDE PLEASE. SO I WOULD LIKE TO HIGHLIGHT ONE OF THE CASE STUDIES, MICKEY LELAND, DEMONSTRATING IMPACT OF ANALYSIS AND MONITORING. YOU CAN SEE ON THE LEFT-HAND SIDE THIS FIGURE SHOWS THE SYSTEM PERFORMANCE AT THE SITE. SO THE GRAPH SHOWS THE TOTAL MEASURED PRODUCTION, DARKER SHADE, COMPARED TO THE TOTAL DAILY MODEL ESTIMATE WHICH IS IN LIGHTER SHADE ACROSS FIVE YEARS AND TWO MONTHS OF THE PRODUCTION. SO, AS YOU CAN SEE IN THE GRAPH, THE PV PRODUCTION DATA INDICATED A DIP IN PRODUCTION AROUND AUGUST 2018, WHICH WAS ATTRIBUTED TO A PROBLEM WITH AN INVERTER. GSA, GENERAL SERVICE ADMINISTRATION STAFF WORKED WITH THEIR CONTRACTOR TO IDENTIFIED SPECIFIC ISSUE, AND AFTER THE REPAIR WAS MADE IN AUGUST 2019 THE PV PRODUCTION RETURNED TO EXPECTED LEVEL AS YOU CAN SEE. AND THEN AS I MENTIONED WE REPORT OUT THREE KEY PERFORMANCE INDICATOR METRICS, SO AVAILABILITY, PERFORMANCE RATIO, ENERGY RATIO. FOR THIS SITE AVAILABILITY WAS 94%, ENERGY RATIO AROUND 80%. MY COLLEAGUE ANDY WALKER IS GOING TO TALK ABOUT THIS PERFORMANCE INDICATORS. >> THANK YOU, NICHOLE, FOR THE INTRODUCTION. THANKS, JAL, FOR DESCRIBING THE METHOD. EACH FEDERAL AGENCY THAT PARTICIPATED WITH US RECEIVED THE REPORT THAT JAL DESCRIBED ON THEIR INDIVIDUAL SYSTEM BUT WE AGGREGATED THE RESULTS TO GIVE A PICTURE OF WHAT THE WHOLE SAMPLE OF 75 LOOKS LIKE. AND THE KEY PERFORMANCE INDICATORS THAT WE REFERRED TO ARE AVAILABILIT AND PERFORMANCE RATIO. AVAILABILITY IS THE UPTIME MINUS THE -- I'M SORRY, UPTIME DIVIDED BY TOTAL TIME, OR TOTAL TIME MINUS DOWN TIME MEASURED DIVIDED BY TOTAL TIME. THERE'S AN IEC STANDARD 630019 THAT SHOWS AVAILABILITY, DIVIDED INTO INFORMATION CATEGORIES, SO A PLANT CAN BE NON-OPERATIVE OR OPERATIVE, IF IT'S OPERATIVE IT COULD BE OUT OF SERVICE BECAUSE THERE'S NO SUNLIGHT OR BECAUSE THE GRID IS DOWN. IF IT'S IN SERVICE, IT COULD BE AT FULL CAPABILITY OR PARTIAL CAPABILITY. IF IT'S AT PARTIAL CAPABILITY COULD BE PERMANENTLY DERATED, OR TEMPORARILY DEGRADED. BUT IN TERMS OF WHETHER THE PLANT IS OPERATIVE OR NON-OPERATIVE, WE DEFINE DOWN TIME AS A MEASURED PRODUCTION LESS THAN 5% OF THE MODEL PRODUCTION. SO, IF IT'S NOT PRODUCING AT LEAST 5% OF MODEL PRODUCTION WE COUNT THAT AS DOWN TIME. AND THE INTERVAL WOULD BE 15 MINUTES OR ONE HOUR OR ONE DAY OR ONE MONTH, BUT WHEN WE GET UP INTO THE LONGER TIME INTERVALS, IT MAKES OUR CALCULATION OF AVAILABILITY LESS ACCURATE THAN IF WE HAD THE 15 MINUTE OR ONE HOUR DATA BECAUSE THE SYSTEM WOULD HAVE TO BE DOWN LESS THAN 5% OF ITS EXPECTED OUTPUT FOR THE WHOLE MONTH FOR THAT WHOLE MONTH TO BE COUNTED AS DOWN TIME. AND SO HERE'S THE RESULTS OF THE 75 SYSTEMS WITH REGARDS TO THIS PERFORMANCE METRIC OF AVAILABILITY. THE AVERAGE WAS 95% BUT THE MEDIAN WAS 98%. WHEN WE SEE A DIFFERENCE BETWEEN THE AVERAGE AND THE MEDIAN IT MEANS THAT AN OUTLIER IS HAVING A BIG EFFECT. AND HERE WE CAN SEE ONE OF THE 75 PLANTS WAS REALLY LOW AT 31 TO 33% AVAILABILITY, BUT, YOU KNOW, I THINK THE TAKEAWAY MESSAGE FROM THIS IS THAT FEDERAL AGENCIES ARE ACTUALLY DOING A PRETTY GOOD JOB OF KEEPING THEIR PLANTS UP AND RUNNING WITH AN AVERAGE AVAILABILITY OF ABOUT 95%, IT'S ABOUT EQUIVALENT TO A BENCHMARK EXPECTATION FOR AVAILABILITY. AND THEN THE SECOND PERFORMANCE INDICATOR THAT WE LOOK AT IS PERFORMANCE RATIO. AND THAT IS THAT WHEN THE PLANT IS UP AND RUNNING, IT COULD BE AT PARTIAL CAPABILITY, SO THERE MIGHT BE A MEASURED PRODUCTION WHICH IS LESS THAN THE MODELED PRODUCTION WHEN THE PLANT IS UP AND RUNNING, SO THE MEASURED PRODUCTION COMES FROM THE PRODUCTION METER IN 15 MINUTE, HOURLY, DAILY, MONTHLY INTERVALS, WHATEVER DATA IS AVAILABLE. SIMILARLY THERE'S IE C STANDARD DEFINING PERFORMANCE RATIO, USING THE COMPUTER MODEL THAT PREDICTS PERFORMANCE BASED ON THE SYSTEM DESCRIPTION AND COINCIDENT CLIMATE DATA AT JAL DESCRIBED, CALCULATED WHEN THE SYSTEM IS AVAILABLE. SO THESE ARE THE TWO STANDARD PERFORMANCE METRICS THAT YOU'LL FIND IN THE STANDARDS, AVAILABILITY AND PERFORMANCE RATIO. WE ALSO INVENTED A THIRD ONE CALLED ENERGY RATIO WHICH COMBINES THE EFFECTS AND IT'S THE TOTAL ENERGY MEASURED PRODUCTION DIVIDED BY THE TOTAL ENERGY MODELED PRODUCTION, WHICH INCLUDES BOTH EFFECTS OF AVAILABILITY AND PERFORMANCE RATIO LESS THAN 1. IN TERMS OF PERFORMANCE RATIO, WE FOUND WHEN THE SYSTEMS ARE UP AND RUNNING, THEY ARE DELIVERING AN AVERAGE OF ABOUT 79% OF THE MODEL, AND THIS IS VERY CLOSE TO THE MEDIAN WHICH SHOWS THAT THERE'S A SYMMETRICAL DISTRIBUTION THERE. NOTICE THERE ARE A COUPLE SYSTEMS, THREE SYSTEMS, PROVIDING 100% OF THEIR MODELED OUTPUT. SO IT'S PROOF IT CAN BE DONE BUT THERE'S OFTEN MODULES THAT ARE OUT, MODULE STRINGS ARE OUT, FUSES ARE BLOWN, A LOT OF LITTLE REASONS THAT CAN COMBINE TO MAKE THE MEASURED OUTPUT LESS THAN THE MODEL OUTPUT. SO ONE OF THESE WAS AS LOW AS 46%. IF YOU SEE A PERFORMANCE RATIO GREATER THAN 100%, IT JUST MEANS THAT THE EFFICIENCY FACTORS THAT WE INCLUDED IN OUR MODEL WERE A LITTLE BIT PESSIMISTIC AND THE SYSTEM WAS ACTUALLY PERFORMING BETTER THAN THE MODEL EXPECTED. SO, WHEN THE PLANT WAS UP AND RUNNING, IT WAS PROVIDING ABOUT 79% OF WHAT ITS MODEL EXPECTATION WAS. THEN REMEMBER WE INVENTED THAT THIRD METRIC WHICH COMBINES THE EFFECT OF DOWN TIME AND PERFORMANCE RATIO LESS THAN 1, IN THIS ENERGY RATIO, AND THE AVERAGE ENERGY RATIO OF MEASURED PRODUCTION TO MODELED PRODUCTION WAS 75%. SO THIS METRIC COMBINES EFFECT OF DOWN TIME AND PERFORMANCE RATIO. SO, THIS CHART SUMMARIZES ALL THOSE RESULTS FROM THE PREVIOUS THREE SLIDES. WE CAN SEE THAT IN TERMS OF AVAILABILITY AND PERFORMANCE RATIO THERE'S AT LEAST A COUPLE SYSTEMS WHICH ARE 100%, SO IT'S PERFORMING AS THE MODEL HAD PREDICTED. SO, THE MEASURED AVAILABILITY OF 95% IS PROBABLY EQUIVALENT TO WHAT AN EXPECTED BENCHMARK SHOULD BE. THE PLANT MIGHT BE EXPECTED TO BE DOWN 5% OF THE TIME FOR EITHER PLANNED OR UNPLANNED MAINTENANCE. PERFORMEDDANCE RATIO OF 79% IS SOMEWHAT LESS THAN WHAT WE MIGHT CONSIDER A BENCHMARK OF 85%. AND THIS IS ASSEMBLED FROM EXAMINING OTHER STUDIES OF LARGER NUMBERS OF NON-FEDERAL PV SYSTEMS. AND SO ENERGY RATIO OF 75%, YEAH, THE SYSTEMS ARE UP AND RUNNING, MAJORITY OF THE TIME WHEN THEY ARE UP AND RUNNING THEY ARE PROVIDING THE MAJORITY OF THE ENERGY THAT WAS DELIVERED. SO THEY ARE DELIVERING PREPONDERANCE OF THEIR EXPECTED ENERGY PRODUCTION. BUT IT ALSO DEMONSTRATES OR INDICATES SOME ROOM FOR IMPROVEMENT, IF WE COULD GET THAT PERFORMANCE RATIO UP FROM 79% TO MORE COMMON BENCHMARK VALUE OF 85%. SO ONE OF THE IMPLICATIONS OF THESE KIND OF RESULTS IS AS NICHOLE STARTED OUT WITH IN THE DESIGN AND FEASIBILITY STUDIES, SO ONE OF THE DESIGN PARAMETERS FOR A PV PLANT IS HOW MUCH PV ARRAY WHICH PRODUCES DIRECT CURRENT DO YOU FEED INTO AN INVERTER WHICH CONVERTS THAT INTO AC CURRENT, AND THERE'S ALSO A TRANSFORMER AND AC POWER LINE OUT OF THE FACILITY, WHICH DETERMINE THE SIZE OF THE AC SIDE OF THE PLANT. SO HOW BIG SHOULD THE DC SIDE OF THE PLANT BE COMPARED TO THE AC SIDE OF THE PLANT? AND A LOT OF TIMES DESIGNERS JUST ASSUME THE PERFORMANCE RATIO IS GOING TO BE ONE AND THEY COME UP WITH AN OPTIMAL DC TO AC RATIO OF 1.3. BUT IF WE ANTICIPATE THE PERFORMANCE RATIO IS GOING TO BE LESS THAN 1, IT INDICATES THAT WE SHOULD BUILD THE DC SIDE OF THE PLANT BIGGER THAN THE AC SIDE OF THE PLANT TO -- IN RECOGNITION OF UNDERPERFORMANCE. IF PERFORMANCE RATIO GOES DOWN BY 10% TO 0.9, THE OPTIMAL SIZE OF THE DC PLANT RELATIVE TO THE AC PLANT GOES UP TO 1.45, AND IS THE PERFORMANCE RATIO OF THE PV ARRAY GOES DOWN YOU CAN SEE THE RATIO EVEN GOES UP. SO IT'S INDICATING THAT IF WE ANTICIPATE SOME UNDERPERFORMANCE WE WOULD OVERBUILD THE DC SIDE OF THE PLANT IN THE DESIGN. AND THEN THE RIGHT-HAND SIDE OF THIS CHART SHOWS EFFECT ON LEVELLIZED COST OF ENERGY, SO THERE'S A TYPICAL EXAMPLE HERE OF 100-KILOWATT ROOFTOP SYSTEM DESCRIBED IN THE REFERENCE, AND IF I ASSUME THE PERFORMANCE RATIO AND AVAILABILITY ARE BOTH 100% I COULD CALCULATE LCEO OF 6.9 CENTS. IF I CONSIDER BENCHMARK PERFORMANCE RATIO .85, AVAILABILITY OF .95 IT GOES UP, IF I USE THE NUMBERS FROM OUR STATISTICS OF THIS FEMP SURVEY .78 AND AVAILABILITY OF .95 I GET LCOE OF .92. SO IT MAKES SENSE TO ANTICIPATE AT LEAST SOME LEVEL OF UNDERPERFORMANCE BEYOND 100% THAT YOU MIGHT EXPECT. I'D LIKE TO POINT OUT LIMITATIONS OF WHAT WE'VE DONE WITH THIS PERFORMANCE ASSESSMENT. THERE'S SOME GAPS IN THE DATA, GAPS IN TIME SERIES PERFORMANCE DATA, IN THOSE CASES WE NEGLECTED THOSE GAPS. THE SAMPLE WAS NOT RANDOM EYE SELECTED. WE ASKED AGENCIES TO VOLUNTEER FOR THE STUDY AND IF YOU THINK ABOUT IT, AN AGENCY IS PROBABLY MORE LIKELY TO PARTICIPATE IN THE STUDY IF THEY DON'T ALREADY HAVE EYES ON THE SYSTEM PERFORMANCE. AND IN THOSE CASES WE ARE PROBABLY LIKELY TO FIND MORE UNDERPERFORMANCE, THAN A RANDOM SAMPLE. WITH 75 SYSTEMS WE CALCULATED RELATIVE ERROR TO BE UNDER 10%. IF WE CALCULATE THE SOURCES OF UNCERTAINTY IN THE CLIMATE DATA IN THE MODELING WE COME UP WITH ABOUT A PLUS OR MINUS 10% IN THE CALCULATION OF THE PERFORMANCE RATIO, SO THAT IS A LENS THESE RESULTS HAVE TO BE VIEWED THROUGH THAT THEY ARE ON THE ORDER OF PLUS OR MINUS 10%. AND REMAINDER OF THE SLIDE IS SOME OF THE SPECIFICS ABOUT THE UNCERTAINTY AND RADIATION AND CALCULATIONS, EVEN THE PRODUCTION METERING INVOLVED UNCERTAINTY. ARRAYS NOT EVALUATED THROUGH ROUTINE O & M PROGRAM SUFFER UNDERPERFORMANCE, AND MIGHT BE OFFLINE ALTOGETHER IN EXTREME CASES. UNADDRESSED PROBLEMS COULD AFFECT PAYBACK OF A PROJECT BUT ALSO INTRODUCE SAFETY CONCERNS. A LOT OF TIMES POWER METERS AND WEATHER STATIONS ARE NOT REPORTING OUT DUE TO UNRELIABLE INTERNET CONNECTIVITY, SOMETIMES THEY HAVE BEEN SHUT OFF FOR CYBERSECURITY REASONS. SOMETIMES THEY HAVE BEEN DISALLOWED TO USE THE FEDERAL SITE NETWORK. SOMETIMES THERE'S ERRORS OR OMISSIONS IN THE PROGRAMMING OF THE BUILDING ENERGY MANAGEMENT SYSTEM, IF THAT'S BEING USED TO MONITOR THE SYSTEM. AND ANOTHER THING IS IF THE MONITORING IS PROVIDED BY A THIRD PARTY PLATFORM SOMETIMES THE LOG-IN CREDENTIALS FOR THOSE PLATFORMS GET LOST AS STAFF CHANGES. IT'S ALSO A LINK -- IT'S OFTEN A LENGTHY PROCESS TO ALLOCATE FUNDS FOR DIAGNOSIS AND REPAIR SO SOMETIMES WHEN SOMETHING GOES DOWN IT LOSES SEVERAL MONTHS' WORD OF PRODUCTION -- WORTH OF PRODUCTION. AFTER REPAIRS THERE'S A RETURN TO EXPECTED GENERATION. THERE'S DIFFERENT WAYS O&M IS PROVIDED BY ON-SITE FEDERAL STAFF BASE OPERATING CONTRACTORS, INSTALLING CONTRACTORS, INVERTER COMPANIES AND SOLAR COMPANIES, MIGHT BE OTHER SOLAR COMPANIES IN THE AREA PROVIDING OPERATION AND MAINTENANCE. SO ALL CAN BE EFFECTIVE BUT SOMETIMES IT LEADS TO DISCONNECTED SUCCESSION OF SERVICES TO KEEP PLANTS RUNNING PROPERLY. FOR SMALL SYSTEMS UNDERPERFORMING IT CAN BE DIFFICULT TO MAKE FINANCIAL JUSTIFICATION FOR O & M CONTRACT BECAUSE THE SYSTEM IS SMALL AND SAVINGS PER SYSTEM ARE SMALL. SO, SOME THINGS THAT AGENCIES CAN DO TO CHECK THE OPERATIONAL INDICATORS OFTEN. IT MIGHT BE A PRODUCTION METER, MIGHT BE JUST A DISPLAY ON THE FACE PLATE OF THE INVERTER, SO CHECK THAT FOR PRODUCTION, MAYBE NOT ON A DAILY BASIS BUT FREQUENT BASIS AND ERROR MESSAGES THAT ARE DISPLAYED THERE. CONSIDER A SUBSCRIPTION TO A MONITORING SERVICE WHICH CAN REPORT ON THE ENERGY DELIVERY AND KEY PERFORMANCE METRICS BASICALLY PROVIDING THE SAME KIND OF ANALYSIS WE HAVE HERE, AND SEND NOTIFICATIONS TO STAFF WHEN PROBLEMS ARE DETECTED. IF YOU HAVE SMALL SYSTEMS CONSIDER BUNDLING THEM TOGETHER, FOR MORE EFFICIENT MANAGEMENT OF CONTRACTED O&M SERVICES, DELIVERY OF PREVENTIVE O&M SERVICES. IF YOU BROUGHT 10 OR 12 SYSTEMS UPPED ONE MAINTENANCE OPERATION IT MIGHT BE MORE EFFICIENT. DEVELOP A BUDGET THAT INCLUDES CONTACT INFORMATION, PLANT OPERATOR AND OWNER, ALSO EMERGENCY RESPONDERS LIKE FIRE DEPARTMENT. INCLUDE AS BUILD, TROUBLESHOOTING GUIDE, INVENTORY OF PARTS, SOURCES OF REPLACEMENT PARTS, THESE ARE THE -- THIS IS A CHECKLIST OF WHAT YOU WOULD EXPECT TO SEE IN AN O&M PLAN. PLAN TODAY FOR HOW TO FUND REPAIRS, TALK TO THE BUDGET PERCENT NOLE AVOID LONG DELAYS IN FUNDING REPAIRS. THEY ARE OFTEN UNANTICIPATED, LIKE A RAINY DAY FUND OR SINKING FUND THAT CAN FUND REPAIRS OR AT LEAST KNOW WHAT THE MECHANISM BY WHICH YOU WOULD REQUEST RAPID TURNAROUND FUNDING, PLAN FOR BIG TICKET ITEMS WITH A SHORTER LIFESPAN. CONSIDER CONTRACTING O&M TO LOCAL SERVICE PROVIDERS OR BASE OPERATING CONTRACTOR AND TO HELP WITH THIS, FEMP OFFERS A SAMPLE TEMPLATE TO ADAPT AND CUSTOMIZE. ALSO, CONSIDER PERFORMANCE CONTRACTS AS A WAY TO DELIVER O& M, SO PERFORMANCE CONTRACTS MEANS A CONTRACTEDDOR DELIVERS O&M AND AGENCY WOULD PAY ON CENTS PER KILOWATT HOUR BASIS. EXTENSION OF ESPC ESA WOULD BE AN EXAMPLE HOW TO DELIVER O&M TO A PROJECT. NOW I'LL TURN IT BACK TO NICHOLE TO RAMP UP WITH RESOURCES FEMP OFFERS TO HELP WITH O AND M OF PV SYSTEMS. >> THANK YOU, ANDY. HERE ON THE SLIDE WE HAVE SEVERAL DIFFERENT ON-DEMAND TRAININGS AVAILABLE THROUGH FEMP. HOSTED ON THE BUILDING DESIGN WEBSITE. IF YOU PREVIOUSLY ATTENDED FEMP TRAINING THESE ARE THERE. O&M BEST PRACTICES FOR SMALL SCALE SYSTEMS AND OPTIMAL PV SYSTEM PERFORMANCE AND FOUR-PART SERIES FROM LAST SUMMER WITH FOCUS TOPIC AREAS ON ACQUISITION, O&M, PREVENTING AND RECOVERING FROM DAMAGE. NEXT SLIDE PLEASE. SO THIS SLIDE HAS A BROADER OVERVIEW OF DIFFERENT REFERENCES AND PUBLICATIONS RELATED TO OPERATIONS AND MAINTENANCE FOR PV, SOME WHICH WERE MENTIONED IN THE PRESENTATION EARLIER TODAY. WE'RE RUNNING TOWARD THE END OF TIME SO WE'LL PAUSE FOR QUESTIONS. THANK YOU FOR ATTENDING AND FOR ANY QUESTIONS YOU MAY HAVE ALREADY SUBMITTED. THANK YOU VERY MUCH. >> THIS IS JOAN HUGHES, MODERATING. I DON'T SEE ANY QUESTIONS SO FAR. >> OKAY. THANK YOU. ANDY, WOULD YOU LIKE TO ADD ANYTHING WHILE WE'RE WAITING FOR QUESTIONS TO COME IN? >> JUST POINT OUT THE FIRST LINK ON THIS RESOURCES SLIDE IS KIND OF FEDERAL ENERGY MANAGEMENT PROGRAMS LANDING PAGE FOR A LOT OF THESE O&M RESOURCES. >> I'D ENCOURAGE EVERYBODY INTERESTED TO CHECK OUT THAT FIRST LINK, OPTIMIZING SOLAR FOR LONGEVITY, A ONE-STOP SHOP FOR RESOURCES LISTED HERE. >> THAT'S A GREAT POINT. THANK YOU, ANDY. >> I WANT TO NOTE I HEAR AN OPEN MIC, IF YOU CAN MUTE YOUR MICS PLEASE. IF YOU'RE NOT SPEAKING. THANK YOU. >> THERE WAS A QUESTION DURING THE PLENARY ABOUT RECYCLING OF PHOTOVOLTAIC MODULES, WE THINK WE FALL UNDER THE SAME RECYCLING REQUIREMENTS AS COMPUTER MONITORS AND THINGS LIKES THAT. ONE OF THESE PUBLICATIONS ABOUT HALFWAY DOWN THE PAGE, BEST PRACTICES AT THE END OF PV PERFORMANCE PERIOD, IS KIND OF A GUIDE. IT'S NOT ABOUT RECYCLING BUT TALKS ABOUT NEED TO RECYCLE, AND RECYCLING IS AVAILABLE FOR BOTH PV MODULES AND INVERTERS, ALONG WITH THE STEEL AND ALUMINUM AND EVEN CONCRETE. PROPER RECYCLING OF PHOTOVOLTAIC MODULES CURRENTLY COMES AS A COST AND WE HOPE IT COMES DOWN AS THAT INDUSTRY MATURES. >> THANKS, ANDY. >> ON THAT OPTIMIZING SOLE LONGEVITY WE HAVE RESOURCES THAT MIGHT BE OF INTEREST TO FEDERAL STAKEHOLDERS IN TERMS OF PLANNING A NEW PROJECT AND FOR EXISTING PROJECTS INCLUDING INTERCONNECTION CHECK LIST IF YOU'RE LOOKING TO DEVELOP A NEW PROJECT, TECHNICAL SPECIFICATIONS, YOU CAN REQUEST THOSE THROUGH OUR TECHNICAL SYSTEMS PORTAL. IF THERE ARE ANY QUESTIONS THAT YOU OR YOUR SITE HAVE ABOUT DISTRIBUTED ENERGY SYSTEMS WE WOULD ENCOURAGE YOU TO REACH OUT. AS YOU SEE A QUESTION IN THE CHAT NOW, DO ANY OF YOUR ANALYSES INCLUDE OPTIMIZING LIFE CYCLE DISCHARGE OF LITHIUM ION BATTERIES? >> YEAH, CAN I FIELD THAT ONE, NICHOLE? >> PLEASE. >> YEAH, I WOULD REFER YOU TO THERE'S SOFTWARE, RENEWABLE ENERGY OPTIMIZATION, REOPT.NREL.GOV IS THE WEBSITE. I THINK THAT SOFTWARE IS DEVELOPED TO TRY TO ANSWER THAT QUESTION, GIVEN THE SOLAR RESOURCES, UTILITY RATE STRUCTURE, THE DEMAND AT THE SITE SHOULD I BE CHARGING OR DISCHARGING MY BATTERY RIGHT NOW? SO THAT SOFTWARE IS DESIGNED TO OPTIMIZE THE DISPATCH OF THE BATTERY, AND IT HAS TO BE INFORMED BY A BATTERY LIFETIME CALCULATION AS WELL BECAUSE THE MORE I EXERCISE THE BATTERY, THE SOONER IT NEEDS TO BE REPLACED. SO I THINK THE REOPT SOFTWARE IS DESIGNED TO ANSWER THE QUESTION. >> THIS IS DIANA HIRSCHFELD. THANK YOU FOR YOUR PRESENTATION AND JOAN FOR KICKING THIS OFF. I'M ALSO MODERATING WITH JOAN. SORRY FOR MY DELAY EARLIER. I THINK WE NEED TO WRAP UP AND MOVE ON. WE HAVE SO MANY PRESENTATIONS TODAY. IF YOU HAVE FURTHER QUESTIONS PLEASE REACH OUT AND WE CAN GET THOSE ANSWERED. AND WITH THAT WE WILL MOVE ALONG TO OUR NEXT PRESENTATION WHO IS DUSTIN MAD IN, ENERGY MANAGER AT THE ALASKA NATIVE TRIBAL HEALTH CONSORTIUM, RURAL ENERGY PROGRAM. DUSTIN, YOU'RE ON MUTE. >> CAN YOU HEAR ME NOW? >> YES. >> I'M DUSTIN MADDEN. FIRST I WANT TO GIVE A QUICK OVERVIEW OF WHAT I'M GOING TO TALK ABOUT TODAY, STARTING OFF TALKING ABOUT OUR ORGANIZATION, AND I'M GOING TO DESCRIBE RURAL WATER AND SEWER SYSTEMS HERE IN ALASKA AND SOME OF THE CHALLENGES THEY FACE. IN PARTICULAR, ENERGY AND AFFORDABILITY CHALLENGES A LOT OF THESE SYSTEMS FACE. I'LL TALK ABOUT THE RURAL ENERGY PROGRAM I MANAGE, AND HOW WE'RE DEVELOPING CLEAN ENERGY SOLUTIONS TO TRY TO MEET THESE CHALLENGES, AND I WANT TO DIVE INTO TWO CASE STUDIES, FEDERAL ENERGY AND WATER MANAGEMENT AWARD THIS YEAR, AND TWO RURAL COMMUNITIES AMBLER AND CHEVAK. SO, THE ALASKA NATIVE TRIBAL HEALTH CONSORTIUM IS A NON-PROFIT TRIBAL HEALTH ORGANIZATION, REPRESENTING 229 FEDERALLY RECOGNIZED TRIBES IN ALASKA. SO WE'RE BOTH OWNED BY ALASKA NATIVE PEOPLE AND WE SERVE ALASKA NATIVE PEOPLE, AND OUR LEADERSHIP COMES FROM THE REGIONAL HEALTH ORGANIZATIONS THROUGHOUT ALASKA THAT PROVIDE SERVICES TO ALASKA NATIVE PEOPLE. WE'RE NOT A FEDERAL AGENCY. WE ARE A TRIBAL ORGANIZATION. THROUGH THE INDIAN SELF-DETERMINATION ACT WE HAVE DEVELOPED A COMPACT AGREEMENT WITH THE INDIAN HEALTH SERVICE TO BASICALLY ADMINISTER THE PROGRAMS THAT THE INDIAN HEALTH SERVICE PREVIOUSLY ADMINISTERED HERE IN ALASKA. THOSE INCLUDE PROVIDING HEALTH SERVICES TO ALASKA NATIVE PEOPLE AND ALSO PROVIDING PUBLIC HEALTH INFRASTRUCTURE NECESSARY FOR PEOPLE TO BE HEALTHY SO PARTICULARLY A LOT OF WATER AND SEWER SYSTEMS. SO, I SHOULD GIVE A LITTLE BIT OF BACKGROUND ABOUT MYSELF BECAUSE I'M GOING TO BE TALKING ABOUT RURAL ALASKAN COMMUNITIES, ALASKA NATIVE PEOPLE, I GREW UP IN RURAL ALASKA COMMUNITY, NOME, REMOTE COMMUNITY, NO ROADS LEADING IN OR OUT, YOU HAVE TO FLY TO GET THERE. AND MY MOM'S SIDE OF THE FAMILY IS ORIGINALLY FROM THIS REGION, I'M PART NUPAK WITH HER FAMILY, FROM THE TINY VILLAGE OF WALES, AND ON THE OTHER SIDE PART PENNSYLVANIA REDNECK. AND SO I JUST SAY THIS SO THAT YOU ALL KNOW THAT I'M INTIMATELY FAMILIAR AND HAVE LIVED WITH THE CHALLENGES A LOT OF RURAL COMMUNITIES FACE, ALSO I'M REALLY COMMITTED TO BEING PART OF THE SOLUTION TO TRY TO OVERCOME SOME OF THE ENERGY CHALLENGES AND FEEL REALLY LUCKY THAT I'M ABLE TO, YEAH, I'M ABLE TO BE PART OF THIS. SO, OUR VISION AS AN ORGANIZATION IS THAT ALASKA NATIVE PEOPLE ARE THE HEALTHIEST PEOPLE IN THE WORLD. THAT'S OUR ULTIMATE GOAL. I'M GOING TO WALK THROUGH AND SHOW HOW THAT END GOAL HAS LED US TO IMPLEMENTING CLEAN ENERGY SOLUTIONS TO SUPPORT THIS GOAL, IT COMES DOWN TO THESE WATER AND SEWER SYSTEMS BECAUSE IN ALASKA WE STILL HAVE A NUMBER OF COMMUNITIES THAT HAVE NO PIPED WATER AND SEWER SERVICE. THERE'S 32 UNSERVED COMMUNITIES, A LOT OF COMMUNITIES THAT DO HAVE PIPED WATER AND SEWER SERVICE THEY ARE DIFFICULT TO OPERATE AND MAINTAIN IN THESE ARCTIC AND EXTREME ENVIRONMENTS, SO THEY GET FROZEN OR DAMAGED, LEADING TO BOIL WATER NOTICES. SO OUR GOAL IS TO KEEP PEOPLE HEALTHY. WE NEED CLEAN WATER FOR THAT, FOR SURE. AND IMPORTANTLY YOU NEED SUFFICIENT QUANTITIES OF CLEAN WATER. CDC RESEARCH FOUND IN COMMUNITIES WITHOUT PIPED WATER AND SEWER SERVICE IN ALASKA WERE CONSUMING 2.5 GALLONS A DAY, BELOW REFUGEE STATUS. THEY WERE NOT GETTING SUFFICIENT QUANTITIES OF WATER. OTHER RESEARCH IN THE FIELD LOOKED AT THESE COMMUNITIES SPECIFICALLY AND FOUND MUCH HIGHER RATES OF RESPIRATORY INFECTIONS AND SKIN INFECTIONS. SOBERING STATISTICS OUT OF THE RESEARCH 1 OUT OF 3 INFANTS WILL BE HOSPITALIZED WITH RESPIRATORY INFECTION IN THEIR FIRST YEAR OF LIFE IN COMMUNITIES THAT DON'T HAVE PIPED WATER AND SEWER SERVICE. SO THAT'S THE REAL HEALTH IMPACT THAT WE'RE TRYING TO MITIGATE, TRYING TO FIGURE OUT HOW CAN WE MAKE SURE THAT COMMUNITIES CAN BE SERVED WITH ADEQUATE QUANTITIES OF WATER AND ADEQUATE QUANTITIES OF WATER THEY CAN AFFORD. SO, IN ORDER TO KIND OF UNDERSTAND THE ENVIRONMENT WE'RE WORKING IN I'M GOING TO TALK ABOUT WHAT IT MEANS TO WORK IN RURAL ALASKA BECAUSE IT'S A PRETTY LOGISTICALLY CHALLENGING PLACE FOR A LOT OF REASONS. SO NUMBER ONE, THE COMMUNITIES WE'RE WORKING IN ARE GENERALLY EXTREMELY REMOTE. VERY, VERY, VERY FEW OF THEM CAN BE REACHED BY ROAD. ALMOST ALL OF THEM REQUIRE AT LEAST ONE PLANE FLIGHT, MOST ACTUALLY REQUIRE TWO PLANES FLIGHTS, FLYING TO A RURAL HUB AND GET ON A SMALL 6 OR 8-SEATER PLAIN TO GET TO THE COMMUNITY WE'RE WORKING IN, MAKING IT EXPENSIVE TO GET MATERIALS IN, DIFFICULT TO GET SPECIALIZED LABOR IN THE COMMUNITIES. ALSO MAKES IT VERY EXPENSIVE FOR THE ENERGY ITSELF BECAUSE TYPICALLY MOST OF THESE COMMUNITIES ARE RUNNING OFF OF DIESEL OIL AND SO THAT HAS TO BE SHIPPED IN TO A COMMUNITY IN SOME WAY SO ENERGY COSTS ARE EXTREMELY HIGH. THESE ARE ALSO TINY COMMUNITIES. SCALE IS QUITE SMALL. MOST OF THE COMMUNITIES ARE UNDER A THOUSAND PEOPLE, WHICH MAKES IT DIFFICULT FOR THERE TO BE SUFFICIENT ECONOMIES OF SCALE, ESPECIALLY USER BASED TO MAINTAIN A COMPLEX SEWER SYSTEM AND DIFFICULT TO BE ABLE TO DEVELOP THE KIND OF VERY SPECIALIZED SORT OF SKILLS YOU WOULD NEED TO BE ABLE TO OPERATE IN SOME OF THESE SYSTEMS. OBVIOUSLY WE'RE TALKING ABOUT ALASKA HERE. WE'RE TALKING ABOUT EXTREMELY COLD CLIMATES. SO THIS HAS A LOT OF IMPACT, ONE IT PUTS THESE SYSTEMS AT RISK FOR FREEZING, APPARENTLY OFTEN. IT'S PRETTY LOW TOLERANCE ENVIRONMENT. BUT ALSO BECAUSE MOST OF THESE COMMUNITIES THAT WE'RE WORKING IN, MANY AT LEAST, ARE ON PERMAFROST SOILS, AND YOU CAN'T PUT ANYTHING THAT IS HEATED DIRECTLY ON PERMAFROST SOILS, OTHERWISE YOU MELT IT AND THEN YOU'LL HAVE SETTLING AND YOUR INFRASTRUCTURE WILL COME TO PIECES, ALL OF THESE WATER AND SEWER SYSTEMS IN REMOTE ARCTIC COMMUNITIES HAVE TO BE BUILT ABOVE GROUND, SO THAT IS A SIGNIFICANT CHALLENGE THESE SYSTEMS FACE. FINALLY, SO RURAL ALASKA NATIVE COMMUNITIES OFTEN HAVE A LOT OF STRENGTHS, THEY OFTEN HAVE A STRONG CULTURE, VERY STRONG SUBSISTENCE ECONOMY, WITH MOST PEOPLE GETTING THEIR FOOD FROM HUNTING AND FISHING, MUCH IN THE SAME WAY THAT'S BEEN DONE FOR 10,000+ YEARS, THEY OFTEN HAVE STRONG SUBSISTENCE ECONOMIES AND MANY ALSO HAVE GOOD CASH ECONOMIES BUT THERE ARE QUITE A FEW COMMUNITIES THAT HAVE LIMITED CASH ECONOMIES. SO, I WANT TO DIG MORE INTO THE IMPACTS OF THE COLD CLIMATE ON THESE REMOTE WATER AND SEWER SYSTEMS. YOU CAN SEE HERE THIS PICTURE ON THE RIGHT SHOWS WATER AND SEWER IN ST. MICHAEL, NORTHWEST ALASKA. WE'VE GOT WATER THAT YOU'RE PIPING ABOVE GROUND SO YOU DON'T YOU CAN IMAGINE YOU'RE IN ALASKA, IT'S COLD. YOU'VE GOT WATER ABOVE GROUND, IF YOU DON'T DO ANYTHING TO IT IT WILL FREEZE. YOU CAN SEE WE'VE GOT AN H ON THESE DIAGRAMS, ADDING HEAT, IN ALASKA THAT MEANS THROUGH A BOILER, VERY EXPENSIVE. YOU HAVE TO CONSTANTLY CIRCULATE THE WATER, SO THAT IT DOESN'T FREEZE. SO SYSTEMS ARE VULNERABLE, IF HEATING SYSTEMS AREN'T FUNCTIONING THEY CAN QUICKLY FREEZE AND ARE ENERGY INTENSIVE TO OPERATE. AND THAT ENERGY INTENSITY MEANS THAT IT'S QUITE EXPENSIVE. THESE SYSTEMS CAN ACCOUNT FOR UP TO A THIRD OF THE TOTAL COMMUNITY ENERGY COSTS, JUST FOR WATER AND SEWER. AND TO GIVE PERSPECTIVE, RECENT RESEARCH FROM UNIVERSITY OF ALASKA, ENERGY COSTS ARE BETWEEN 70 AND 300 TIMES HIGHER ON A PER CAPITA BASIS THAN ENERGY COSTS FOR WATER AND SEWER NATIONALLY. SO IT'S A SIGNIFICANT INCREASE BURDEN TO THESE COMMUNITIES. RESEARCH THAT WE DID INTERNALLY LOOKING AT ENERGY COSTS AS PERCENTAGE OF HOUSEHOLD INCOME IN CRUCIAL COMMUNITIES FOUND IT'S ALSO A BURDEN ON LOCAL FAMILIES. ON AVERAGE DEPENDING ON SYSTEM TYPE AND PARTICULAR COMMUNITY JUST THE ENERGY COSTS FOR THESE WATER AND SEWER SYSTEMS EQUIVALENT TO BETWEEN 4 AND 7% OF MEDIAN HOUSEHOLD INCOME, SO PRETTY SIGNIFICANT BURDEN ON THE COMMUNITIES. AND A SIGNIFICANT COST FOR COMMUNITIES TO AFFORD THIS WATER AND SEWER, ESSENTIAL SERVICES NEEDED FOR HEALTH. THE ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION RANKS ABILITY OF COMMUNITIES TO AFFORD WATER AND SEWER RATES AND MORE THAN HALF OF RURAL ALASKAN COMMUNITIES ARE CONSIDERED TO HAVE A HIGH COST BURDEN FROM WATER AND SEWER BILLS, THE PROBLEM WITH THIS -- MANY PROBLEMS WITH THIS, BUT REALLY PUTS COMMUNITIES IN THE TOUGH PLACE, A LOT OF CITY AND TRIBAL ADMINISTRATORS SEE THAT MANY FAMILIES CAN'T AFFORD THE WATER AND SEWER BILLS, THEY ARE PUT IN THE PLACE OF HAVING TO TURN OFF THE WATER AND SEWER KNOWING THE IMPACTS THAT IT WILL HAVE ON THE FAMILY AND AGAIN IN THE SMALL COMMUNITIES IT'S A TOUGH DECISION BECAUSE CERTAINLY YOUR NEIGHBOR BUT ALSO LIKELY A RELATIVE, AUNT OR UNCLE WHOSE WATER YOU'RE SHUTTING OFF. THAT'S OPTION A, BAD. OPTION B, EQUALLY BAD, YOU DON'T COLLECT WATER AND SEWER RATES AS WATER AND SEWER FEES AND DON'T HAVE THE MONEY AS A COMMUNITY TO AFFORD THESE REALLY EXPENSIVE OPERATIONS AND MAINTENANCE COSTS PARTICULARLY IN THE ENERGY COSTS, WHICH THEN JEOPARDIZES BILLIONS OF DOLLARS OF INFRASTRUCTURE INVESTMENT THAT'S HAPPENED OVER THE PAST THREE OR FOUR DECADES. IN RESPONSE, CONSORTIUM SAW THE VISION THAT ALASKA NATIVE PEOPLE ARE THE HEALTHIEST PEOPLE IN THE WORLD, YOU NEED WATER AND SEWER. ENERGY COSTS ARE JEOPARDIZING OUR ABILITY TO PROVIDE THIS CLEAN WATER AND SEWER AND SO WE STARTED THE RULE ENERGY PROGRAM OVER A DECADE AGO. AND HAVE DONE CLEAN ENERGY PROJECTS, 86 COMMUNITIES THROUGHOUT ALASKA, WE ESTIMATE ANNUAL SAVINGS TO THESE COMMUNITIES IS $3.4 MILLION, ESPECIALLY FOR MANY PLACES, A LARGE UNIVERSITY CAMPUS MAY NOT SEEM LIKE A HUGE AMOUNT BUT SIGNIFICANT BENEFIT, MAKES THE SYSTEMS WAY MORE AFFORDABLE. BECAUSE THERE'S A SMALL POPULATION AT EACH OF THEM $4.3 MILLION EQUATES TO ABOUT $560 ANNUALLY PER FAMILY, IN EACH OF THESE 86 SMALL COMMUNITIES, MAKING WATER AND SEWER SIGNIFICANTLY LESS EXPENSIVE FOR THEM. WE'VE DONE THIS THROUGH A VARIETY OF PROJECTS. ENERGY EFFICIENCY IS THE LOW-HANGING FRUIT, MOST COST EFFECTIVE WAY TO REDUCE ENERGY COSTS. HEAT RECOVERY FROM DIESEL-FIRED POWER PLANTS HAS BEEN ANOTHER PROJECT THAT WE'VE PURSUED FOR THE LARGE SAVINGS. WE'VE ALSO LOOKED AT BIOMASS DISTRICT HEATING SYSTEMS IN PART BECAUSE IT HELPS KEEP MONEY IN THE LOCAL ECONOMY, CREATING JOBS. WE'VE ALSO DONE SOLAR PV SYSTEMS, RENEWABLES, HYDRO, LOOKED AT LOTS OF WAYS TO REDUCE ENERGY COSTS OF RURAL COMMUNITIES SPECIFICALLY FOR THE WATER AND SEWER SYSTEMS. NOW I WANT TO GO INTO A COUPLE DIFFERENT CASE STUDIES OF RECENT PROJECTS. ONE IN THE COMMUNITY OF AMBLER WHICH IS IN NORTHWEST ALASKA, OFF THE COAST AS YOU CAN SEE, A SMALL COMMUNITY, POPULATION 260, SMALL INUPIAQ COMMUNITY, HIGH ENERGY COSTS BECAUSE IT'S REMOTE AND REQUIRES A BARGE SHIP FUEL UPRIVER THROUGH A RELATIVELY SMALL RIVER, COST OF GETTING FUEL TO THE COMMUNITY IS HIGH SO THE COST OF PRODUCING ELECTRICITY IS ALSO HIGH. 69 CENTS A KILOWATT HOUR. WITH RECENT OIL PRICE SHOCKS RESIDENTIAL HEATING OIL PRICE IS $12.36 A GALLON, WHICH YOU CAN IMAGINE IS A SIGNIFICANT BURDEN ON THE LOCAL COMMUNITY. WE'RE TALKING ABOUT ARCTIC ALASKA, VERY COLD ENVIRONMENT. MEASURING HOW MUCH YOU HAVE TO HEAT, AMBLER HAS 16,000, SIGNIFICANTLY MORE THAN D.C. ON THE EAST COAST, SO MUCH HIGHER HEATING LOAD FOR THAT COMMUNITY. WHEN WE'RE TALKING ABOUT BIOMASS SYSTEMS, PRIMARILY WE'RE TALKING ABOUT BOILERS WE THINK ARE THE SOLUTION FOR RURAL ALASKA, IN PART BECAUSE THEY ARE RELATIVELY LOW MAINTENANCE, AND THEY ARE SORT OF A TECHNOLOGY THAT PEOPLE ARE USED TO, SORT OF TRADITIONAL TO CUT WOOD FOR HEAT. AND, AGAIN, THERE'S THIS BENEFIT OF INSTEAD OF PAYING FOR EXPENSIVE FUEL FROM OUTSIDE YOU'RE PAYING FOR PEOPLE LOCALLY TO CUT THE WOOD, SPLIT IT, STACK IT, AND THEN REGULARLY STOKE THESE SYSTEMS. SO NOT ONLY DOES IT SAVE MONEY BECAUSE IT'S LESS EXPENSIVE THAN HEATING OIL AND MONEY STAYS IN THE COMMUNITY AND CIRCULATES THROUGH THE ECONOMY, A GOOD SOLUTION FOR A LOT OF DIFFERENT REASONS, IN THESE SMALL COMMUNITIES. THESE SYSTEMS, A GLORIFIED WOOD STOVE WRAPPED IN A WATER JACKET, LOW EMISSION, HIGH EFFICIENCY, VERY HIGH HEAT, AND ALSO HAS SECONDARY GASIFICATION CHANGER, THE SYSTEM IS ABLE TO HAVE MUCH HIGHER EFFICIENCIES THAN A NORMAL AT-HOME WOOD STOVE. THE ONE DOWN SIDE OF THESE SYSTEMS, WE BUILD THIS INTO A DISTRICT HEATING SYSTEM, AND BECAUSE IT WINDS UP BEING AN AFTERTHOUGHT THERE'S ADDED EXPENSE IN COMPLEXITY WHEN YOU HAVE TO INTEGRATE, LOTS OF EXISTING HEATING SYSTEMS, SOME EASY, SOME MORE DIFFICULT TO DO. ANYTIME WE'RE LOOKING AT A BIOMASS PACKAGE NUMBER ONE IS WOOD RESOURCE STUDY TO ENSURE THERE'S SUFFICIENT AMOUNT OF TIMBER IN THE AREA, AND IN A LOT OF COMMUNITIES THIS IS DEFINITELY THE CASE. VERY TINY COMMUNITIES, AND REMOTE PLACES IN ALASKA, HUGE AMOUNTS OF LAND AROUND THEM. A BIG JOKE IN ALASKA IS, YOU KNOW, IF YOU CUT ALASKA IN HALF, TEXAS WOULD BECOME THE THIRD LARGEST STATE. A LOT OF THESE PLACES DOZENS OF MILES AROUND THERE'S NO ONE ELSE, OFTEN A BIG TIMBER RESOURCE, MORE DIFFICULTY IS FIGURING OUT HOW TO ACCESS THAT RESOURCE. IN AMBLER, THE BEST WAY TO HARVEST THE WOOD IS VIA SNOWMOBILE WHICH WE CALL SNOW MACHINES HERE IN ALASKA SO RIGHT NOW IS THE BEST TIME FOR PEOPLE IN AMBLER TO HARVEST WOOD. TEMPERATURES ARE SLIGHTLY WARMER, STILL THE GROUND IS COVERED WITH SNOW EVERYWHERE SO THEY ARE ABLE TO DRIVE OUT ON THE SNOWMOBILE, HARVEST WOOD, AND SLED IT TO THE COMMUNITY. ONE INNOVATION WE'RE PROUD OF WE DESIGNED IT TO BE MODULAR SO BASICALLY IT'S KIND OF A BIOMASS DISTRICT HEATING SYSTEM IN A BOX. AND SO IT FITS INTO THE SHIPPING CONTAINER, IS ABLE TO BE CONSTRUCTED PRIMARILY IN URBAN ALASKA, AND WE THINK THIS IS A REALLY GOOD REASON FOR -- A REALLY GOOD IDEA FOR A COUPLE REASONS. THE BIGGEST ONE BEING THAT RURAL ALASKA HAS A VERY SHORT CONSTRUCTION SEASON. BY THE TIME THE RIVERS ARE ICE FREE AND WE'RE ABLE TO GET A BARGE INTO THESE PLACES THERE'S OFTEN ONLY THREE OR FOUR MONTHS BEFORE THE GROUND WILL BE FROZEN AGAIN. SO THIS ALLOWS US TO EXPAND CONSTRUCTION SEASON, DO A LOT OF COMPLEX WORK HERE IN ANCHORAGE OVER THE WINTER AND SHIP IT OUT FIRST THING ON THE BARGE IN THE SUMMER, SO IT HELPS EXTEND CONSTRUCTION SEASON, MAKES THE PROJECT RESILIENT AND IN PARTICULAR DURING COVID THIS REALLY HELPED US BECAUSE IT ALLOWED US TO KIND OF FOLLOWING STRICT SAFETY PROTOCOLS BUILD IN ANCHORAGE WITHOUT HAVING TO SEND PEOPLE TO THE COMMUNITY. YOU CAN IMAGINE PARTICULARLY BEFORE VACCINES WERE READILY AVAILABLE, WE DON'T WANT TO BRING CASE NUMBER ONE OUT TO ONE OF THESE REMOTE COMMUNITIES BECAUSE THE PEOPLE ARE TWO PLANE FLIGHTS FROM REAL HOSPITAL CARE. SO WE WERE REALLY HAPPY WITH OUR DECISION TO MAKE THIS SYSTEM MODULAR IN PART BECAUSE IT HELPED US BUILD IT HERE AND REDUCE THE AMOUNT OF RISK WE HAVE BY BRINGING THIS TO THE COMMUNITY DURING TIMES OF COVID. THEN WE SENT OUT SHIPPING CONTAINERS, LOCAL LABOR PRIMARILY WAS ABLE TO BUILD A PAD, BUILD FOUNDATION, ABLE TO PLOP THAT SHIPPING CONTAINER ON THE FOUNDATION AND BUILD A ROOF OVERHEAD FOR WOOD STORAGE AND FINALLY START TO BUILD AND CONNECT THE DISTRICT HEATING SYSTEM, PIPING THAT WILL PIPE THE HEAT FROM THESE BIOMASS BOILER SYSTEMS TO WASHETERIA AND COMMUNITY BUILDINGS TO REDUCE ENERGY COSTS. OVERALL WE'RE HAPPY WITH THE PROJECT. IT KEEPS MONEY IN THE COMMUNITY, LOCAL JOBS FOR WOOD HARVESTING AND OPERATION OF THE SYSTEM. IT'S GOING TO REDUCE COST OF WATER AND SEWER. IT'S PRETTY EASY TO COME IN BELOW $12.36 A GALLON HEATING OIL AS THE OTHER OPTION AND INCREASES RESILIENCY OF THE SYSTEM BY ADDING ANOTHER FULLY REDUNDANT CLEAN ENERGY HEATING SYSTEM NOW, YOU KNOW, IF THE MAIN HEATING SYSTEM FAILS, OLD BOILERS AREN'T WORKING, YOU HAVE THIS BACKUP SYSTEM SO YOUR WATER AND SEWER SYSTEM WILL NOT FREEZE. SO THAT'S ONE OF OUR CASE STUDIES HERE. NEXT COMMUNITY CASE STUDY I WANT TO TALK ABOUT IS CHEVAK, A CUPIK COMMUNITY, WESTERN ALASKA, A THOUSAND PEOPLE, A LITTLE MORE ACCESSIBLE BY LARGE SO FUEL PRICES TEND TO BE A LITTLE BIT LESS EXPENSIVE THAN AMBLER BUT STILL NOT CHEAT, 51 CENTS A KILOWATT HOUR IS NOT CHEAP, NOR IS $5.10 A GALLON HEATING OIL, AND THESE ARE OLD PRICES. A LITTLE FARTHER SOUTH, NOT AS INTENSELY COLD MEASURED BY HEATING DEGREE DAYS BUT STILL SIGNIFICANTLY MORE THAN ALL PLACES IN THE LOWER 48. THIS HEAT RECOVERY SYSTEM ESSENTIALLY IS RECOVERING WASTE HEAT FROM THE DIESEL GENERATORS AT THE POWER PLANT, GENERATORS ALWAYS HAVE TO BE COOLED, BEFORE WE CAME IN THEY WERE RADIATING THEIR HEAT TO THE OUTSIDE, WASTING IT. WE COME IN AND INSTALL A SYSTEM THAT CAPTURES THAT WASTE HEAT, PUMPS THROUGH A HEAT EXCHANGER THAT TIES INTO A DISTRICT HEATING LOOP THAT CAN KEEP THE PUMPHOUSE, WATER STRONGER TANK ABOVE-GROUND WATER CIRCULATION LOOP TO PROVIDE HEAT TO THE WATER AND IN SOME CASES, IN THIS CASE WE ADDED ONE OR TWO OTHER COMMUNITY BUILDINGS NEARBY TO PIPE THAT HEAT TO. THE RESULT IS SIGNIFICANT SAVINGS TO THE COMMUNITY, WE'RE TALKING IN A COMMUNITY THIS SMALL, 15,000-GALLON FUEL OIL HEATER, PRETTY LARGE. AND SIGNIFICANT IMPACT ON THE COMMUNITY. SO JUST TO GIVE BACKGROUND BEFORE WE CAME INTO THIS COMMUNITY OF CHEVAK, THE CITY WAS STRUGGLING WITH DEBT, DIDN'T HAVE ANY MONEY IN RESERVE FOR PARTS AND REPAIRS, FOR SANITATION SYSTEM. SYSTEM WAS DEFINITELY HIGH RISK OF DEGRADING QUICKLY. WE CAME IN, INSTALLED THE HEAT RECOVERY PROJECT, WE ALSO DID A COUPLE OTHER PROJECTS, SIMILAR TIME FRAME I GUESS, ENERGY EFFICIENCY RETROFIT, PROVIDED TRAINING TO LOCAL OPERATORS TO MORE EFFICIENTLY MANAGE THE ENERGY CONSUMPTION OF THAT PLANT. AND WE ALSO INTEGRATED A DISPATCHABLE ELECTRIC BOILER SYSTEM TO PROVIDE ADDITIONAL HEAT. WITH ALL THESE MEASURES COMBINED THE COMMUNITY IS NOW DOING MUCH BETTER. THEY HAVE SIGNIFICANT RESERVES FOR OPERATIONS AND MAINTENANCE SO IF WE HAVE SERIOUS MAINTENANCE NEEDS THEY CAN NOW AFFORD THAT AND KEEP THIS CLEAN WATER FLOWING TO COMMUNITIES. AND THEY WERE ABLE TO SIGNIFICANTLY REDUCE RATES TO LOCAL FAMILIES AT THE SAME TIME, CUTTING THEM BY ABOUT HALF. SO $80 A MONTH, THAT'S ALMOST $1,000 PER YEAR PER FAMILY, A REALLY BIG WIN, HIGHLIGHTING CLEAN ENERGY PROJECTS SUPPORTING OUR HEALTH GOALS. THAT'S ULTIMATELY WHAT WE'RE TRYING TO DO WITH THIS RURAL ENERGY PROGRAM, MAKE SURE THAT WE CAN LOWER THE COSTS OF PROVIDING CLEAN WATER AND HEALTHY WASTE WATER SERVICES, AND WITH THOSE SYSTEMS MORE RESILIENT BY HAVING THAT FULLY REDUNDANT SECOND HEATING SYSTEM TO REDUCE RISK OF FREEZE-UP BY HAVING ENOUGH NUMBER FOR OPERATIONS AND MAINTENANCE, REDUCING COSTS, LASTING LONGER, FEWER TIMES THE COMMUNITY IS ON A BOIL-WATER NOTICE AND HELPS MITIGATE VOLATILE OIL PRICES WE'RE SEEING BECAUSE THESE COMMUNITIES ARE REMOTE, THEY ARE PRETTY DEPENDENT UPON GLOBAL OIL PRICES, RIGHT NOW SPIKED SIGNIFICANTLY AND RIGHT NOW THE COMMUNITIES ARE SUFFERING. HAVING SYSTEMS LIKE BIOMASS OR HEAT RECOVERY SYSTEMS, USING LOCAL SUPPLY OR WASTE HEAT WILL MITIGATE OIL PRICES IN THESE COMMUNITIES AND IT HELPS TOWARDS ENSURING THESE SYSTEMS OPERATE AND ARE ABLE TO PROVIDE CLEAN WATER AND HEALTHY WASTEWATER TO OUR COMMUNITIES. WITH THAT, WE'VE GOT A FEW MINUTES LEFT BUT I WANT TO THANK YOU FOR INVITING ME AND ASK IF THERE ARE QUESTIONS OR COMMENTS. >> I'M POSTING POSTING QUESTIONS IN THE CHAT. >> WE HAVE ONE MINUTE SO WE MIGHT HAVE TO GATHER THESE QUESTIONS AND GET THEM DO YOU LATER, DUSTIN. BUT MAYBE THE FIRST ONE, AN INTERESTING QUESTION, ABOUT THE CO2 EMISSIONS. WHAT KIND OF CO2 EMISSIONS ARE YOU SEEING ON THE BOILER? >> ON THE BIOMASS BOILER? >> YEAH, THE CORDWOOD BOILER. >> YEAH, GOOD QUESTION. WE HAVEN'T REALLY DONE A DETAILED ANALYSIS OF THE CO2 MISSIONS, YEAH, THERE ARE CO2 EMISSIONS. I DON'T KNOW HOW THAT WORKS OUT RELATIVE TO FUEL OIL-FIRED BOILER. I GUESS I WOULD SAY IT'S AT LEAST NOT GOING TO BE WORSE SINCE THESE ARE HIGH EFFICIENCY WOOD-FIRED BOILERS, MOST ARE SIGNIFICANTLY LESS EMISSION. >> ALL RIGHT. OKAY. SO, THERE IS A QUESTION ABOUT HOW THIS THE SLIDES WILL BE DISTRIBUTED. THE PRESENTATIONS, MANY OF THE PRESENTATIONS, IF IT'S APPROVED BY THE ORGANIZATIONS, WILL BE POSTED ON FED CENTER SO YOU'LL BE ABLE TO HAVE ACCESS TO THOSE LATER. >> STAINABILITY PROJECT MANAGER, DOE ARGONNE LABOR TO, AND KERRI HARTUNG, WITH THAT I WILL TURN I WILL TURN IT RIGHT OVER. ON MY END YOUR VOLUME IS QUITE LOW. I'M NOT SURE -- >> CAN YOU HEAR ME? >> THAT'S BETTER NOW. >> OKAY, GREAT. I'M GOING TO GO AHEAD AND START. GOOD AFTERNOON, EVERYBODY. I'M JOFREY QUINTANAR, STRATEGIC PLAN PROJECT MANAGER AT ARGONNE NATIONAL LAB, ONE OF 17 NATIONAL LABS SUPPORTED BY THE U.S. DEPARTMENT OF ENERGY, ARGONNE IS A MULTI-DISCIPLINARY LAB WITH BROAD CAPABILITIES, SUCH AS DISCOVERY SCIENCE, ENGINEERING, COMPUTATION ANALYSIS, AND OPERATION OF SCIENTIFIC USER FACILITIES. WE HAVE AROUND 1700 ACRES CAMPUS, 5.3 MILLION SQUARE FEET OF REAL ESTATE, 162 BUILDINGS, ROUGHLY 43 TO 45 YEARS OLD IN AVERAGE, OVER 3200 EMPLOYEES, 200 FACILITY USERS, IT'S A LARGE CAMPUS AND WE ARE OPERATED BY THE UNIVERSITY OF CHICAGO ARGON, CONTINUING THE RELATIONSHIP WITH THE WORLD WAR II MANHATTAN PROJECT BEFORE OUR FOUNDING IN 1946 AS ONE OF THE NATION'S FIRST NATIONAL LABORATORIES. SO IN THIS PRESENTATION I WILL GIVE YOU AN OVERVIEW OF OUR WORK, ACHIEVING ZERO CARBON EMISSIONS AND SOME OF THE TOOLS FOR ACHIEVING NET ZERO CARBON WAS DESIGNED TO MEET FEDERAL AND DOE GOALS, SPECIFICALLY EXECUTIVE ORDER 14008, TACKLING CLIMATE CRISIS AT HOME AND ABROAD, EXECUTIVE ORDER 14067, CATALYZING AMERICAN CLEAN ENERGY INDUSTRIES AND JOBS THROUGH FEDERAL SUSTAINABILITY. THE OFFICE OF ASSET MANAGEMENT AND OFFICE OF SUSTAINABLE ENVIRONMENTAL STEWARDSHIP WILL WORK TO IDENTIFY ALL DOE DIRECTIVES A APPROPRIATE FOR INCORPORATING CLIMATE ACTION AND WILL WORK TO INCORPORATE BY DECEMBER 2022. OKAY. SO OUR SUSTAINABILITY TEAM STARTED TO DEVELOP OUR ROAD MAPS SINCE THE EXECUTIVE ORDER 14008 WAS ISSUED IN EARLY 2021. WE STARTED BY ESTABLISHING BASELINE EMISSIONS AND DID A GAP ANALYSIS AND HIGH LEVEL OF APPROACH FOR DECARBONIZATION. SOON AFTER WITH COLLABORATION OF SUBJECT MATTER EXPERTS AND CONSULTANTS, WE DEVELOPED DIGITAL TWIN WHERE WE IDENTIFIED DIFFERENT MEASURES TO HELP US ACHIEVE DECARBONIZATION GOALS AND MODEL DIFFERENT STRATEGIES. AND BY THE END OF THE FISCAL YEAR WE SUMMARIZE OUR FINDINGS AND OUR RECOMMENDATIONS AND PRESENTED THEM TO OUR LAB LEADERSHIP. SO, OUR BASELINE WAS DEVELOPED USING 2020 EMISSIONS, FOR ARGONNE MAJORITY OF OUR EMISSIONS COME FROM SCOPE 1 AND SCOPE 2, TOTAL AROUND 178,784 METRIC TONS OF CO2, AND ON SCOPE 3 WITH THE 14,540 METRIC TONS OF CO2. SCOPE 1 EMISSIONS ARE GREENHOUSE GAS EMISSIONS FROM SOURCES THAT ARE OWNED OR CONTROLLED BY THE LABORATORY SUCH AS OUR FLEET, OUR STATIONARY SOURCES LIKE OUR CENTRAL BOILERHOUSE THAT USES NATURAL GAS TO GENERATE SITE-WIDE STEAM AND ALSO OUR COMBINED HEAT AND POWER PLANT. WE ALSO HAVE A WASTEWATER TREATMENT PLANT. SCOPE 2 EMISSIONS FROM THE OFFSITE GENERATION OF ELECTRICITY AND SCOPE 3 EMISSIONS FROM SOURCES NOT OWNED BY THE LABORATORY BUT RELATED TO AGENCY ACTIVITIES LIKE BUSINESS, AIR, CAR TRAVEL AND EMPLOYEE COMMUTING. OKAY, SO BREAKING DOWN OUR EMISSIONS FURTHER, THE CHART ON THE SCREEN SHOWS SCOPE 1 AND SCOPE 2 ON THE LEFT, AND AS YOU CAN SEE ELECTRICITY IS THE LARGEST CONTRIBUTOR. AND ON THE RIGHT SIDE YOU CAN SEE SCOPE 3 EMISSIONS. THESE VALUES, IT'S IMPORTANT TO NOTE, ARE FROM FY 2020, SO COMMUTING HERE IS REDUCED AS A RESULT OF COVID. THIS DATA IS AROUND A QUARTER OF PRE-COVID VALUES. SO, BECAUSE THE MAJORITY OF OUR EMISSIONS ARE FROM THE SCOPE 1 AND SCOPE 2, I SHOWED IN THE PREVIOUS SLIDE, ALL THE EMISSIONS ASSOCIATED WITH OUR FACILITY ENERGY, WE INITIALLY FOCUSED ON THOSE EMISSIONS TO CREATE A STRATEGY TO ACHIEVE THE DOE GOALS. SO FOR THIS WE DEVELOPED COMPUTER MODEL OF OUR CAMPUS USING A COMPUTER TOOL CREATED BY ONE OF OUR CONSULTANTS AND THIS IS WHAT WE CALL OUR DIGITAL TWIN. AND THE DIGITAL TWIN'S CONFIGURATION, MODEL CONFIGURATION, SHOWN ON YOUR SCREEN RIGHT NOW. AND INCORPORATE A SIGNIFICANT AMOUNT OF DATA ON THE BUILDING SYSTEM'S ENERGY USES, AMONGST OTHER FACTORS, MODEL CALIBRATED TO PROVIDE CURRENT FACILITY ENERGY USE, AND THEN WITH INPUT FROM STAKEHOLDERS, SUBJECT MATTER EXPERTS, CONSULTANTS, WE ADDED PROPOSED ENERGY AND CARBON REDUCTION MEASURES BETWEEN NOW AND 2050 AND REVIEWED THE RESULTS FOR THE OUTPUT. SO, I GUESS IT'S IMPORTANT TO KNOW THIS IS AN ITERATIVE PROCESS. SO WE SELECT THE COMBINATION OF MEASURES THAT WILL HELP US ACCOMPLISH THE DOE AND FEDERAL TARGETS, AND REQUIRES OF COURSE PLANNING AND BUY-IN FROM STAKEHOLDERS ACROSS THE LAB. OKAY. SO THE CHART SHOWS OUR EMISSIONS ALONG THE Y-AXIS, AND THE PERIOD BETWEEN 20 AND 25 ALONG THE X-AXIS. NOW, AS YOU CAN SEE PEAK RISES IN 2022 DUE TO AURORA, OUR SUPERCOMPUTER COMING ONLINE LATER IN THE YEAR. WE'RE EFFECTIVELY DOUBLING OUR CITED ELECTRICITY LOAD. PREVIOUSLY WE HAVE REDUCED EMISSIONS BY 40% WHEN COMPARED TO OUR 2008 BASELINE SHOWN IN THE RED LINE HERE. AND BUT WITH AURORA OUR TOTAL SITE OPERATION EMISSIONS WILL ERODE ALL OUR PAST SAVINGS, AND IT'S JUST SOMETHING WE'RE GOING TO HAVE TO ADDRESS. NOW, SINCE WE STARTED DEVELOPING DECARBONIZATION ROADMAP, ILLINOIS PASSED A CLIMATE CRITICAL JOBS ACT, AND IT'S A VERY AMBITIOUS STATE-LEVEL ENERGY POLICY AMONGST OTHER MEASURES IT WILL SECURE CARBON-FREE POWER BY 2030, 100% BY 2050 ARE CAN . THE BUSINESS AS USUAL IS SOLID LINE ON TOP. WITH NO ADDITIONAL INVESTMENTS. THE GREEN ARROWS SHOW GAP IN DOE REQUIREMENTS VERSUS BUSINESS AS USUAL. SO, MULTI-LAYER DECARBONIZATION STRATEGY IS FOCUSED ON ELIMINATING THAT GAP. OKAY. SO I'M GOING TO GIVE YOU SOME HIGHLIGHTS OF OUR CURRENT STRATEGY FOR ACHIEVING THESE GOALS. FIRST LET'S TALK ABOUT THE DEMAND SIDE STRATEGIES THAT WERE SELECTED. THESE STRATEGIES FOCUS ON ACTIVITIES THAT RESULT IN EFFICIENT USE OF ENERGY AT THE POINT OF FINAL VIEW SO BASICALLY OUR CAMPUS. AND THE RECOMMENDED STRATEGIES INCLUDE ENERGY EFFICIENCY IN EXISTING BUILDINGS, CLIMATE READY NEW CONSTRUCTION, DATA CENTER EFFICIENCY AND HOT WATER HEATING AND DISTRIBUTION AND WASTE HEAT RECOVERY. BASED ON PRELIMINARY CALCULATIONS AND ANALYSIS, THIS IS THE IMPACT OF SOME OF OUR STRATEGIES, THE ONES WE PROPOSE. SO AROUND 70% OF NATURAL GAS REDUCTION BY INCORPORATING HEAT RECOVERY SYSTEMS, AROUND 40% ENERGY SAVINGS FOR NEW CONSTRUCTION WITH SUSTAINABLE DESIGN MEASURES, AND AROUND 10% REDUCTION FROM REALISTIC DATA CENTER ENERGY EFFICIENCY STRATEGIES. AMONGST OTHER MEASURES WE'RE ALSO PROPOSING TO PERFORM A DEEP ENERGY RETROFIT, SEVEN FACILITIES WITH GREAT SAVINGS OPPORTUNITIES, AND STANDARD MEASURES ALL THE BUILDINGS ACROSS THE LAB. ONE THING I DO WANT TO POINT OUT THOUGH IS THAT THE HOT WATER HEATER DISTRIBUTION WITH WASTE HEAT RECOVERY COMBINED STRATEGIES IS ONE APPROACH. WE LOOKED FOR DECARBONIZING OUR HEATING SYSTEM. AS WE OPTIMIZE THE STRATEGY WE WILL CONTINUE TO EVALUATE THE COST AND BENEFITS COMPARED WITH RETAINING OUR STEAM SYSTEM, BUT REDUCING OUR LOAD AND ELECTRIFYING THE BOILERS. SO OUR ROAD MAP ALSO INCLUDES SUPPLY SIDE STRATEGIES FOCUSING ON REDUCTION OF FOSSIL FUELS, SOME RECOMMENDED STRATEGIES INCLUDE ON-SITE SOLAR HEAT INSTALLATION, GREEN POWER PURCHASE, THE GRID BECOMING LOWER CARBON OVER TIME BENEFITS. WE ACTUALLY COMPLETED A MASTER PLAN FOR SOLAR PV IN INSTALLATION AND IDENTIFIED EIGHT LOCATIONS. THIS MAKES UP A SMALL PORTION OF OUR ENERGY NEEDS. AND CAN REALLY BE REPLACED WITH CURRENTLY DOE'S GOALS IS FOR 100% RENEWABLE ENERGY BY 2035 WHICH IS MORE AGGRESSIVE THAN THE FEDERAL GOAL OF CARBON POLLUTION FREE ELECTRICITY, AS A RESULT WE ANTICIPATE SIGNIFICANT AMOUNT OF RENEWABLE ENERGY PURCHASES TO MEET THE GOAL. AND AFTER IMPLEMENTING ALL THE TECHNICALLY VIABLE SOLUTIONS TODAY WE PROJECT THAT WITH OUR DIGITAL, ADDITIONAL 6.5% OF CARBON EMISSIONS ARE GOING TO HAVE TO BE ADDRESSED WITH CARBON OFFSET OR OTHER NOVEL APPROACHES OR EMERGING TECHNOLOGIES. NOW ON THE SCREEN YOU CAN SEE A GRAPH THAT SHOWS OVERALL CONTRIBUTION OF EACH OF THE STRATEGIES WE HAVE IDENTIFIED, AND, AGAIN, BUSINESS AS USUAL SCENARIO DEPICTED WITH SOLID BLACK LINE. AND THE BLACK DASHED LINE REPRESENTS NET EMISSIONS AFTER THE IMPLEMENTATION OF DECARBONIZATION STRATEGY. ONE GOAL WAS TO AIM FOR SELECTING TECHNOLOGIES VIABLE TODAY BUT WITH DIGITAL TWIN MODEL WE WILL BE ABLE TO TRACK PROGRESS OVER TIME, ADJUST OUR ACTIVITIES AND INVESTMENTS IF NEEDED. I THINK I MENTIONED THIS BEFORE BUT THIS IS AN ITERATIVE APPROACH. AND AS NEW TECHNOLOGIES BECOME VIABLE OR MATURE FOR IMPLEMENTATION WE CAN CONSIDER THEM IN OUR MODEL. FOR EXAMPLE, HERE YOU CAN SEE DARK PURPOSE THE SLICE, THAT'S THE CONTRIBUTION FROM DECARBONIZING OUR HEATING SYSTEM. AGAIN, WE CONTINUE TO EVALUATE DIFFERENT OPTIONS AND CAN UPDATE OUR PROJECTIONS IF ANOTHER STRATEGY BECOMES FAVORABLE. I DO WANT TO POINT OUT THAT CURRENTLY THE LARGEST CONTRIBUTOR TO THE REDUCTION STRATEGY AND ENERGY EFFICIENCY MEASURES IN BUILDINGS WHICH WILL PROVIDE BOTH CARBON REDUCTION AND ENERGY SAVINGS, ALSO I WANT TO MENTION I SAID BEFORE, YOU KNOW, GREEN POWER PURCHASING WILL NEED TO INCREASE OVER TIME TO MEET DOE GOALS. AND THAT GAP IS INDICATED WITH THE RED ARROW. ALL RIGHT. SO IN THIS GRAPH IF YOU FOLLOW THE DASHED LINE YOU CAN SEE HOW WITH OUR STRATEGY WE WILL BE ABLE TO REDUCE EMISSIONS FROM ELECTRICITY AND NATURAL GAS USE TO MEET THE 2050 TARGET, AND, AGAIN, THE BLACK LINE, THE SOLID BLACK LINE IS OUR BUSINESS AS USUAL. BUT NOW WITH THE GREENING OF THE GRID, AND YELLOW SHADING REPRESENTS PROJECTED REDUCED NATURAL GAS EMISSIONS, AND BLUE SHADING IS PROJECTED PRODUCED ELECTRICITY EMISSIONS. SO, AGAIN, THE ADDITIONAL 6.5% OF CARBON EMISSIONS WILL HAVE TO BE ADDRESSED WITH CARBON OFFSETS OR OTHER APPROACHES OR EMERGING TECHNOLOGIES. SO OUR NEXT STEP IS GOING TO BE TO OPTIMIZE THE STRATEGIES AND DEVELOP A FUNDING AND IMPLEMENTATION PLAN. THE GRAPH ON YOUR SCREEN GIVES AN IDEA OF RELATIVE EFFORT WE WILL FOCUS ON FOR EACH OF THESE STRATEGIES UNTIL 2050. YOU WILL ALSO NOTE THAT THE GRAPH STARTS AT 2010, AND THAT IS TO ACKNOWLEDGE THAT WE ACTUALLY HERE IN ARGONNE HAVE BEEN ALREADY INVESTING IN A SUSTAINABLE CAMPUS FOR MORE THAN A DECADE, AND HAVE MADE SIGNIFICANT PROGRESS. SOME ACTIVITIES WILL REQUIRE AS YOU CAN SEE STEADY LEVEL OF EFFORT OVER THE PLANNING HORIZON SUCH AS FACILITY RETROFITS AND COMMISSIONING. SO WHAT ARE OUR NEXT STEPS? WELL, WE'RE GOING TO BE WORKING AND WE ARE WORKING ON EXPANDING OUTREACH ACTIVITIES TO OBTAIN BUY-IN FROM ALL STAKEHOLDERS ACROSS THE LAB, FOR EXAMPLE ESTABLISHING DIFFERENT WORKING GROUPS, BUILDING ON SUSTAINABILITY FRAMEWORK PROGRAM TO ENGAGE WITH NEW STAKEHOLDERS INCLUDING PROGRAMMATIC SUBJECT MATTER EXPERTS AND OTHER PARTNERS. WE ALSO ARE CONNECTING TO THE ARGONNE ANNUAL ACHIEVEMENT AWARD FOR ENERGY DECARBONIZATION AND WORKING ON A STRATEGIC PLAN AND WE ALREADY BEGAN TO DEVELOP IT TO MEET THESE NEW REQUIREMENTS AND WILL BE OF COURSE LEVERAGING OUR DIGITAL TOOLS AND OTHER TOOLS FOR THE PROCUREMENT AREAS ALONG THE WAY. ON THE COMMUNICATION SIDE, WE ARE INCREASING SIGNIFICANTLY OUR OUTREACH TO BOTH OUR EMPLOYEES INTERNALLY AND BEYOND OUR CAMPUS. AND REALLY IT'S JUST WE'RE DEALING WITH VERY BOLD GOALS WITH AGGRESSIVE NEAR-TERM TARGETS, 50% REDUCTION BY 2032 WILL REQUIRE AN ALL-DOE APPROACH AND WE REALLY NEED TO INCORPORATE INTO OUR LONG-TERM PLANS AND INCREASE DRAMATICALLY SHORT-TERM EFFORTS TO MEET THEM. THIS IS ONE OF THE REASONS WHY WE ACTUALLY DEVELOPED ARGONNE 2050 VISION, AND INCLUDES A ROADMAP FOR THE PHYSICAL CAMPUS OF THE FUTURE AND ZERO ENVIRONMENTAL IMPACT IS ALREADY NAMED IN THE LONG-TERM VISION. NOW, BY LEVERAGING OUR DECARBONIZATION ROADMAP OR INITIAL PROJECTS IN THE 10-YEAR HORIZON ARE ALREADY INCORPORATED INTO OUR ANNUAL PLAN. THAT'S IT FOR MY PRESENTATION. ON BEHALF OF MY BOSS, KATHLEEN HURLEY, THE SUSTAINABLE PROJECT MANAGER, AND THE REST OF THE TEAM WORKING ON OUR DECARBONIZATION STRATEGY, I JUST WANT TO THANK YOU FOR YOUR ATTENTION TODAY. THAT'S IT. I. >> I HAVE A QUESTION, JOFREY. CAN YOU ELABORATE MORE ON YOUR ENERGY EFFICIENCY PROJECTS, DO YOU HAVE IT, YOU KNOW, A BACKLOG OF PROJECTS OR ARE YOU GOING TO BE DOING SOME MORE EVALUATIONS TO DETERMINE SOME PRISONS? -- PRONGS? PROJECTS? ARE YOU LOOKING AT PERFORMANCE CONTRACTING? IF YOU COULD ELABORATE MORE ON THAT. >> IT'S ALL OF THE ABOVE ACTUALLY. I MEAN, WE'RE ALSO -- OUR SUSTAINABILITY PROGRAM WE HAVE SMART LABS PROGRAM, YOU WOULD SAY, WHERE WE, YOU KNOW, GOING INTO DIFFERENT BUILDINGS AND THROUGH FULL RETROFITTING PROJECTS AND LOOKED AT ALSO LAB VENTILATION, FOR EXAMPLE, AND WE LOOKED AT SOMETIMES, YOU KNOW, BUILDING ENVELOPE, SO THROUGH THE SMART LABS PROGRAM WE ARE ACTIVELY WORKING ON IMPROVING ENERGY EFFICIENCY ON CAMPUS, BUT THROUGH THAT PROCESS, THAT'S WHERE WE IDENTIFY AT LEAST SEVEN FACILITIES WHERE WE CAN ACTUALLY GO, YOU KNOW, ABOVE AND BEYOND THAT AND DO WHAT WE CALL I GUESS DEEP RETRO COMMISSIONING, AND LABORATORY BUILDINGS ARE ENERGY HOGS, AND THERE'S JUST A LOT OF OPPORTUNITY FOR US TO REALLY IMPROVE THE OVERALL ENERGY EFFICIENCY AND ALSO REDUCE OUR DEFERRED MAINTENANCE, ON SOME BUILDINGS IT'S SIGNIFICANT. AGAIN, THE WAY WE ARE SELECTING THESE PROJECTS IS GOING TO BE IN LINE WITH OUR DECARBONIZATION EFFORTS, AND THAT'S WHY HAVING THIS DIGITAL TWIN IS GOING TO HELP US TO LOOK AT THE ONGOING WORK AND COMMON PROJECTS AND THEN EVERY YEAR CAN VALIDATE, YOU KNOW, ARE WE ACTUALLY GOING IN THE RIGHT DIRECTION, ARE WE SELECTING THE RIGHT PROJECTS THAT CAN TAKE US TO WHERE WE NEED TO BE GOING IN ORDER TO MEET DECARBONIZATION GOALS. IT'S ALL-HANDS APPROACH. I DON'T KNOW IF -- KERRY HASN'T PRESENTED, I DON'T KNOW IF YOU HAVE ANY THOUGHTS ON THAT? >> WE DO HAVE ANOTHER QUESTION TOO. >> OH, OKAY. >> SO WE HAVE A GREAT PRESENTATION FEEDBACK AND CURIOUS ABOUT HOW THE DIGITAL TWIN WAS CREATED. >> WE'RE WORKING WITH ACOM, I'M SURE WE CAN SHARE THE CONTACT INFORMATION IF YOU'D LIKE. BUT IT'S A LARGE FIRM. AND WE ENGAGED WITH THEM EARLY ON. WE INTERVIEWED MULTIPLE FIRMS TO SEE WHICH ONE COULD BE BETTER SUITED TO HELP US DEVELOP THIS DECARBONIZATION STRATEGY, AND IT'S VERY COMPLEX, NOT JUST TECHNICALLY, BUT ALSO POLITICALLY, RIGHT? BECAUSE YOU ARE DEALING WITH LARGE INSTITUTION WITH A LOT OF GROUPS IN A METRICS ORGANIZATION, SO IT'S COMPLICATED TO ALIGN EVERYBODY'S VISIONS AND GOALS AND TARGET OF THAT TOWARDS A SPECIFIC CAUSE. IT'S VERY COMPLICATED SO YOU NEED A STRONG -- A FIRM WITH A STRONG TECHNICAL BACKGROUND. AND THEY HAVE BEEN DOING THIS WORK FOR CITIES AND MUNICIPALITIES, AND THEY ALREADY HAD DEVELOPED THESE PLATFORMS, IT'S CALLED VOCERA I THINK, THEY ALREADY HAD A PLATFORM DEVELOPED SO WE JUST MET OVER A PERIOD OF MONTHS, AND STARTED POPULATING THE INFORMATION IN THE MODEL. YOU KNOW, UNTIL WE WERE ABLE TO START, YOU KNOW, COMING UP WITH DIFFERENT, AGAIN, ALL HIGH LEVEL STRATEGIES AND SEE WHICH ONES WOULD BE ABLE TO TAKE US TO WHERE WE NEED TO GO TOWARDS ACHIEVING OUR GOALS. SO, AGAIN, YOU KNOW, IT'S A PROPRIETARY TOOL, WHICH IS A FEATURE I DON'T NECESSARILY LIKE, BUT IT'S FINE. YOU KNOW, IT'S A COMPLEX MODEL. AND, YOU KNOW, I JUST NEED TO FIND A GOOD PARTNER I GUESS, YOU KNOW, WELL IF YOU'RE LOOKING FOR A FIRM TO HELP YOU WITH THIS PROCESS, YOU NEED TO LOOK FOR A GOOD PARTNER TO ESTABLISH A LONG-TERM RELATIONSHIP. AND THAT'S KIND OF WHAT WE DID WITH ACOM FOR THIS PROJECT. >> GREAT. WE HAVE A COUPLE OTHER QUESTIONS. IN REGARDS TO YOUR DISCUSSION ON GREEN POWER PROCUREMENT, ARE YOU SPECIFICALLY -- WHAT STRATEGIES DOES THIS INCLUDE, REC PURCHASES, GREEN POWER UTILITY PURCHASES, COMBINATION? >> MAINLY RECS. LIKE I SAID, I THINK THIS IS -- WE REALLY NEED TO THINK ABOUT ALL THE OPPORTUNITIES AND ALL THE OPTIONS, AND SEE WHAT OTHER LABS, YOU KNOW, DOE LABS ARE DOING AND WORK TOGETHER TO FIND -- TO USE THAT AS A LEVERAGE TO FIND THE BEST ALTERNATIVE FOR US. IT HAS TO BE AN ALL-HANDS APPROACH, THE CHALLENGE IS MASSIVE ESPECIALLY FOR LARGE CAMPUSES WITH SOME AGING FACILITIES. YOU KNOW, IT'S A COMPREHENSIVE HOLISTIC APPROACH THAT IS REQUIRED. >> RIGHT. THERE'S ANOTHER QUESTION ABOUT, YOU KNOW, USING YOUR 2020 BASELINE EMISSIONS. AND USING THOSE FOR YOUR REDUCTIONS GOING FORWARD DUE TO THE PANDEMIC. YOU KNOW, THAT BEING A CHALLENGE TO USE THAT AS A BASELINE, UNLESS THE LAB PLANS TO CONTINUE WITH THE SAME LEVEL OF ON-SITE/OFF-SITE WORK. HOW ARE YOU THINKING TO ADJUST FOR THAT? >> WELL, I THINK -- LET ME GO BACK TO THE -- I THINK WE ALREADY COMPENSATED FOR THAT. BUT IT'S A GOOD QUESTION. IF YOU LIKE, I CAN LOOK FOR MORE INFORMATION AND I CAN GET BACK TO YOU OR THE PERSON THAT ASKED THE QUESTION BUT I THINK WE ALREADY COMPENSATED FOR THAT. >> OKAY, GREAT. >> CAN YOU SHARE MY E-MAIL IF YOU LIKE WITH THE GROUP. >> OKAY. ALL RIGHT. WELL, LOOKS LIKE THAT'S ALL THE QUESTIONS FOR YOU RIGHT NOW. I THINK WE CAN GO FORWARD WITH KERRI'S PRESENTATION AND IF SOMEONE HAS ANOTHER QUESTION WE CAN ADDRESS THAT AT THAT TIME. >> OKAY, GREAT. THANK YOU. >> GOOD AFTERNOON. ARE YOU SEEING A FULL SCREEN PRESENTATION? >> YES, WE ARE. THANK YOU. >> ALL RIGHT. FANTASTIC. I'M KERRI HARTUNG, WITH THE NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH SCIENCES, AND I AM HERE TO DESCRIBE WHAT WE REFER TO AS THE RENEWABLE RESILIENT NIEHS INITIATIVE. WE CONSIDER THAT OUR PATH TO NET-ZERO ENERGY AND FURTHER ON TO CARBON NEUTRALITY. I WANTED TO GIVE YOU FAMILIARITY WITH WHO WE ARE AS AN ENTITY. NIEHS IS ONE OF THE 27 INSTITUTES AND CENTERS THAT COMPRISE THE NATIONAL INSTITUTES OF HEALTH. AND OUR MISSION IS TO DISCOVER HOW THE ENVIRONMENT AFFECTS PEOPLE, SO THAT WE CAN PROMOTE HEALTHIER LIVES. AND WE'RE LOCATED IN RESEARCH TRIANGLE PARK, WHICH IS NEAR DURHAM, NORTH CAROLINA. AND AS YOU CAN SEE HERE ARE HIGHLIGHTS OF OUR PROPERTY. WE'RE A JOINT CAMPUS, A CENTRAL UTILITY PLANT AT NIEHS IS RESPONSIBLE FOR OVERSEEING AND OPERATING, WE HAVE A MEMORANDUM OF UNDERSTANDING BETWEEN THE TWO ENTITIES FOR THAT. WE SHARE A CAMPUS AND WHEN IT COMES TO NIEHS IN PARTICULAR YOU'VE GOT FACTS THAT GIVE YOU SCALE AND SENSE OF WHAT OUR FOOTPRINT LOOKS LIKE IN TERMS OF SQUARE FOOTAGE AND PERSONNEL. THE BULK OF OUR RESEARCH CAMPUS IS ABOUT 40 YEARS OLD, ONE NEWER ADDITION BUT THAT SPEAKS TO THE AGE OF WHO WE ARE. WHAT YOU DON'T SEE ON THIS FRAGMENT IS OUR NET-ZERO ENERGY WAREHOUSE, AND THAT IS PART OF OUR OPERATION BUT SLIGHTLY OFF CAMPUS. AND WE DO USE LEASED SPACE WITH A SMALL FLEET OF ELECTRIC VEHICLES TO GIVE A SENSE OF HOW WE TAKE CARE OF TRANSPORTATION. NEXT HERE IS PERSPECTIVE ON OUR ENERGY USE. SO, WE SHOW FY 19 IS A BASELINE, AND AS A PRIOR QUESTION WAS INQUIRING, WHAT'S THE PERSPECTIVE PRE-VERSUS POST-PANDEMIC, THIS IS OUR LAST DATASET PRE-PANDEMIC. AND OUR COLLECTIVE ENERGY ACROSS ALL ENERGY TYPES WAS A LITTLE OVER 74,000-MEGAWATT HOURS THAT YEAR. YOU CAN SEE FROM DOUGHNUT CHART IT'S PREDOMINANTLY NATURAL GAS FOLLOWED CLOSELY BY ELECTRIC, IF WE'RE HAVING A PARTICULARLY COLD YEAR WE MAY GO INTO CURTAILMENT AND WE'LL SEE A GREATER PROPORTION OF EMISSIONS RELATED TO FUEL OIL, BUT THIS IS A PRETTY TYPICAL YEAR. FOR PERSPECTIVE THE MAP AT THE LEFT, NIEHS IN THE BOTTOM RIGHT CORNER IN YELLOW, AND OUR ENERGY IS SIMILAR TO A LITTLE OVER 2800 AVERAGE U.S. HOUSEHOLDS. WE SHARE THAT INTERNALLY WITH OUR LEADERSHIP TO GIVE THEM PERSPECTIVE ON WHAT IT MEANS TO POWER OUR FACILITIES. SO WE DO HAVE ON-SITE SOLAR IN THREE LOCATIONS, TOTAL CAPACITY 120 KILOWATTS, OUR LARGEST ARRAY AND SMALL CLUSTERS ON THE MAIN RESEARCH BUILDING, RALL BUILDING, B MODULE, AND ONE OF OUR ENGINEERING SUPPORT BUILDINGS, BUILDING 102. SOMETHING THAT WE'RE PARTICULARLY PROUD OF, AGAIN, NET-ZERO ENERGY WAREHOUSE, IT IS THE FIRST OF ITS KIND WITHIN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES, SOME FANTASTIC CERTIFICATIONS TO GO WITH IT. NET METERED OPERATION, SINCE IT BEGAN IN 2018 UNTIL 2021 OUR EXCESS ENERGY THAT'S EXPORTED BACK TO THE GRID WOULD BE ENOUGH TO POWER APPROXIMATELY FOUR U.S. HOUSEHOLDS OVER THAT TIME SPAN. SO IN THE CONTEXT OF NIEHS BEING A LEADER IN THE FIELD OF ENVIRONMENTAL HEALTH SCIENCE AND PARTICULAR CLIMATE AND HEALTH AS WELL, AND WE HAVE A NET-ZERO ENERGY WAREHOUSE AND KNOW WHAT THAT MEANS, WE KNOW HOW THAT LOOKS, TO OPERATE AND PREPARE, THAT PROMPTED THE CONVERSATION, CAN WE UNITE THOSE CONCEPTS FURTHER AND EXPAND OUR NET-ZERO ENERGY OPERATION TO THE REST OF THE CAMPUS? IS THAT FEASIBLE? JUST TO GIVE A SNEAK PEEK, THE ANSWER IS YES. BUT WE KNOW WE'RE GOING TO NEED RENEWABLE ENERGY CERTIFICATES TO BE PART OF THE SOLUTION. SO, AS A BRIEF REFRESHER OR PRIMER, WHAT IS NET-ZERO ENERGY? SIMPLEST PRESENTATION, IT'S A BALANCING SUCH THAT IF WE'RE GOING TO BE BRINGING IN ENERGY FROM THE GRID OUTSIDE OUR FACILITY WE WANT TO MAKE SURE THAT WE WOULD EXPORT THE SAME AMOUNT IN EXCESS RENEWABLE ON-SITE ENERGY. AGAIN, SIMPLEST TERMS. HOWEVER, WE ARE A RESEARCH FACILITY. AND BY DEFINITION, WE ARE ENERGY INTENSIVE. WE HAVE 24/7 OPERATION, HAVE TO SUPPORT ANALYTICAL EQUIPMENT AROUND THE CLOCK, LARGE FOOTPRINT IN TERMS OF SQUARE FOOTAGE. SO THAT BEING SAID, IT'S NOT AN EASY FEAT TO BE A PURE NET-ZERO ENERGY FACILITY, SO THAT'S WHERE RENEWABLE ENERGY CERTIFICATES COME IN. IF YOU CAN'T EXPORT AN EQUAL AMOUNT OR GREATER RENEWABLE ENERGY THAT'S GENERATED ON SITE, TO OFFSET INNING PURPOSE ENERGY YOU'LL USE RECs TO RETURN TO THE BALANCE. THE TRADITIONAL APPROACH FOCUS FIRST AND FOREMOST ON REDUCING YOUR ENERGY USAGE. WHERE CAN YOU CONSERVE AND WHAT ENERGY DO YOU STILL NEED TO USE, WHERE CAN IT BE MOST EFFICIENT? THEN PROCEED TO GENERATING AS MUCH RENEWABLE ENERGY ON-SITE AS YOU CAN. YOU HAVE EXCESS, SHARE BACK TO THE GRID. HOWEVER, IF YOU DON'T, OR DON'T HAVE ENOUGH EXCESS YOU FILL THE GAP WITH RENEWABLE ENERGY CERTIFICATES. SOMETHING WE LEARNED AS WE WERE DEVELOPING THIS INITIATIVE IS THAT REC IS NOT A CONCEPT THAT A LOT OF PEOPLE REALLY UNDERSTAND, WHO AREN'T IN THIS FIELD, WHO DON'T SPECIALIZE IN ENERGY ISSUES AND SUSTAINABILITY ISSUES. SO THE TERM MAY BE SOMEWHAT FAMILIAR BUT WHAT IT MEANS MAY NOT BE. THAT'S AN IMPORTANT DISCOVERY AS WE WERE PREPARING TO WORK WITH OUR LEADERSHIP SO THEY COULD UNDERSTAND WHAT THE VALUE OF THIS PROPOSITION WAS, A NET-ZERO ENERGY ENERGY CAMPUS OR NET-ZERO ENERGY REC CAMPUS. I HIGHLY RECOMMEND IF YOU WANT TO WORK WITH YOUR COLLEAGUES, IN YOUR COMMUNITY, STAKEHOLDERS WITHIN YOUR ORGANIZATION, THERE'S A GREAT VIDEO THAT EPA PREPARED, RECs GREENING POWER -- MAKING GREEN POWER POSSIBLE, FIND IT ON YouTube, YOU NEED TO SEARCH UNDER EPA RECs, IT'S YOUR TOP HIT, 3 1/2 MINUTES BUT DOES A FANTASTIC JOB EXPLAINING WHAT IS A REC BECAUSE REALLY THINK IT'S A CONCEPTIONALLY NEW WAY OF THINKING OR STRUGGLE FOR SOME FOLKS TO APPRECIATE THE ENVIRONMENTAL ATTRIBUTE OF GREEN ENERGY CAN BE A SEPARATE THING FROM THE ENERGY ITSELF. AND THAT WAS AN IMPORTANT PART OF WORKING WITH PEOPLE, UNDERSTANDING WHEN WE BUY RECs WHAT ARE WE GETTING FOR THAT. OF COURSE AS WE SPOKE EARLIER TO ENERGY CONSERVATION MEASURES WE THOUGHT, ALL RIGHT, WE KNOW WHAT THIS LOOKS LIKE, GENERATE ON-SITE, USE RECs IN COMBINATION. WE WORKED WITH A THIRD PARTY CONSULTANT ON A FEASIBILITY STUDY. THIS SLIDE OUTLINES WHAT THE PREMISE OF THE STUDY WAS. SO WE USED THAT FY 19 ENERGY BASELINE AS OUR STARTING POINT. WE EXCLUDED EPA FROM THE DATASET BECAUSE AT THIS POINT WE WANTED TO FOCUS WHAT WE HAVE STRICT CONTROL OVER IN OUR USAGE. WE ALSO EXCLUDED OFFSITE ENERGY LEASED SPACE. MAINLY BECAUSE WE ARE HOPING THAT WE WILL HAVE A NEW CLINICAL AND COMPUTATIONAL SCIENCE BUILDING AND WANT TO EXCLUDE LEASE FACILITY BECAUSE THAT WOULD BE IN A SENSE DOUBLING AND INCLUDE PROJECTIONS FOR THE NEW BUILDING WHICH WE ARE DESIGNING TO BE A NET-ZERO ENERGY BUILDING. WE ALSO SET OUR RETURN ON INVESTMENT FOR 12 PROJECTS TO 20 YEARS, THOSE SYSTEMS WOULD HAVE A 20-YEAR LIFESPAN, THE PROJECTS IN PARTICULAR WERE SUGGESTED BY OUR FACILITIES PARTNERS, HERE ON CAMPUS, THESE ARE PROJECTS THAT THEY HAVE BEEN CONSIDERING IN THE PAST AND WERE INTERESTED IN SEEING PERHAPS WITH A FURTHER STUDY WHAT THAT MIGHT LOOK LIKE ON ENERGY SAVINGS AND RETURNS. WE WERE ALSO FOCUSING FOR SIMPLICITY ON ADDITIONAL ON-SITE SOLAR, CERTAINLY NOT THE ONLY OPPORTUNITY TO CONSIDER WHEN IT COMES TO RENEWABLE ENERGY BUT WANTED TO LIMIT TO THIS AT THIS BEGINNING POINT OF THE FEASIBILITY STUDY. WHERE WOULD RECs FIT? WE HAD A GUT FEELING THEY WOULD. THE QUESTION WAS HOW MANY. WE'RE KEEN TO UNDERSTAND WHERE MIGHT UTILITY SCALE BATTERY ENERGY STORAGE SYSTEM FIT INTO THE CONCEPT, BECAUSE ULTIMATELY THIS IS AN R 2 OR R SQUARED IDEA, RESILIENT AND RENEWABLE ENERGY. WE WANTED TO HAVE THAT ADDED CAPACITY IF THERE WERE ISSUES WITH UTILITY GRID ACCESS OR STORMS OR WHAT NOT AS WELL AS NOW WE HAVE THE ELEMENTS OF 1407 TALKING ABOUT 24/7 CLEAN POLLUTION-FREE ENERGY, THAT WOULD BE PART OF THAT. HERE IS SOME HIGHLIGHTS OF WHAT SOME OF OUR ENERGY CONSERVATION MEASURES WERE THAT WERE EVALUATED. WE'VE GOT TRANSFORMERS THAT COULD STAND TO BE MORE ENERGY EFFICIENT. WE HAVE FIXED VOLUME FUME HOODS AT THE INSTITUTE. FUME HOODS ARE SIGNIFICANT ENERGY USER. SO WE KNEW THERE COULD BE AN OPPORTUNITY, CERTAINLY TO SAVE ENERGY, BUT THE QUESTION WOULD IT BE A PAYBACK, REASONABLE? AND THEN LOOKING AT A COUPLE DIFFERENT OPPORTUNITIES ON SETTING OUR VENTILATION SYSTEMS DIFFERENTLY FOR NIGHTS, HOLIDAYS, WEEKENDS, TO BE AT DIFFERENT SET POINTS THAT WOULD RECOGNIZE WE HAVE A LOWER POPULATION ON CAMPUS DURING THOSE TIMES. AND THEN SAME WITH AIR FLOW, AND STILL OF COURSE WE HAVE TO REMAIN WITHIN OUR DESIGN GUIDELINES FOR THE NIH AND FOR OPERATING A BIOMEDICAL RESEARCH FACILITY SAFELY, BUT WE SUSPECTED WE WOULD HAVE OPPORTUNITY FOR IMPROVEMENT. WHAT DID WE FIND OUT? THIS GIVES A SENSE OF, AGAIN, THIS IS A FEASIBILITY STUDY, SO THE QUESTION, IS IT POSSIBLE NOT NECESSARILY THIS IS THE ROADMAP OR THE ONLY WHICH BUT -- BUT THIS IS WHAT WE FOUND. ENERGY CONSERVATION MEASURES WOULD BE A SIGNIFICANT OPPORTUNITY BASED SIMPLY ON 12 PROJECTS THAT MET POSITIVE RETURN. WE ALSO HAVE OPPORTUNITY FOR ADDITIONAL SOLAR ON CAMPUS BUT ITS CONTRIBUTION WOULD LIKELY BE LESS, JUST BASED ON PARAMETERS THAT WERE EVALUATED. AND RECs WOULD BE REQUIRED. AS YOU CAN SEE HERE, IT'S A SIGNIFICANT CONTRIBUTION. AT THE TIME OF THE STUDY THE BATTERY ENERGY STORAGE WOULD OFFER AS WE WERE INTERESTED IN INCREASED RESILIENCY BUT IT WAS JUST BORDERLINE ON PAYBACK. WE EXPECT THAT WILL IMPROVE AS BATTERY TECHNOLOGY AND SYSTEM COSTS HAVE BEEN IMPROVING RAPIDLY, RECENTLY. AND WE ALSO RECOGNIZE THAT WHILE THE FOCUS OF WHERE WE WERE STARTING WAS NET-ZERO ENERGY APPROACH THIS WOULD ALSO LEAD US ON PATH TO DECARBONIZATION, THIS WORK BEGAN BEFORE EXECUTIVE ORDER 14057 WAS PUBLISHED SO WE HAD A SENSE THIS IS WHERE THINGS WERE HEADED, WE WANTED TO GET ON THAT PATH. WHAT DID THAT END UP DOING FOR US, THE FEASIBILITY STUDY? IT HELPED ENFORCE THE VISION. WE'RE ON GLOBAL LEAD OTHER ENVIRONMENTAL HEALTH RESEARCH PARTICULARLY CLIMATE AND HEALTH. WE ALSO WANT TO BE A LEADER IN CLIMATE ACTION. WE WANT THOSE TWO THINGS TO WORK TOGETHER. WE WANT TO, QUOTE, WALK THE TALK. WITH THAT IN MIND THERE WAS THE INITIATIVE, THAT'S WHAT CAME FROM THE FEASIBILITY STUDY. WE WANT TO LEAD BY EXAMPLE AND TAKE THE FIRST STEP TOWARD CARBON NEUTRALITY. SIMILAR TO JOFREY AND ARGONNE, THEY HAVE BEEN A LONGSTANDING PROPONENT OF GREEN OPERATIONS, AS HAVE WE. BUT NOW WE'RE MOVING FORWARD ON THE TIME SCALE AND AS OF FISCAL YEAR 2021 WE'VE ACHIEVED NET-ZERO ENERGY REC STATUS. WHAT WE SEE COMING NEXT IS WHAT WE THINK OF AS OPTIMIZED VERSION. SO THAT'S WHEN YOU'VE HAD THE VALUE OF IMPLEMENTING YOUR ENERGY CONSERVATION MEASURES, THAT'S WHEN YOU HAVE INCREASED YOUR ON-SITE RENEWABLE GENERATION. AND THEN YOU'VE MADE YOUR OPERATION AS OPTIMIZED AS WE SEE THE TECHNOLOGY CAN SUPPORT IN A FINANCIALLY RESPONSIBLE AND ACHIEVABLE WAY. WHAT COMES NEXT? THAT'S WHERE CARBON NEUTRALITY IS ENTERING IN. YOU GET CARBON BENEFITS THE MORE YOU INCREASE RELIANCE AND GO TO RENEWABLE ENERGY. WE HAVE MEDICAL PATHOLOGICAL WASTE INCINERATOR FOR WASTE MANAGEMENT AND DISPOSAL THAT'S NOT PART OF A NET-ZERO ENERGY APPROACH BUT DOES MATTER WITH CARBON NEUTRALITY. THERE WAS LEADERSHIP, DO WE GO TOWARDS EFFICIENCY EMPHASIS, ADD ADDITIONAL SYSTEMS ON CAMPUS FOR RENEWABLE ENERGY, DO WE DO THOSE THINGS FIRST. AS WE GET TO THE TALE END WE ADD RECs OR START THE RECs PROCESS NOW? AND WE REFER TO THAT AS FLIPPING THE SCRIPT. DO WE GO FULL NET-ZERO ENERGY REC FROM THE GET-GO? HAVE THAT AS BRIDGING TOOL? USE THAT TO REDUCE OUR IMPACTS AS WE DO OUR OTHER INITIATIVES? SO THAT IS ULTIMATELY WHERE WE LANDED. YOU CAN SEE THE POINTS AS TO WHAT DROVE TO US THAT CONCLUSION WE WANTED TO ACT IN FULL REC CAPACITY FROM THE START. WE FELT IT ALIGNS WITH IMPORTANCE OF OUR MISSION. REALLY DISPLAYS WHAT WE FEEL IS URGENCY ON PRESENTING A LEADERSHIP STANCE. IT HELPS SIGNAL THE MARKET. I WOULD SAY THE MARKET HAS BEEN PLENTY SIGNALED, SIGNIFICANT INCREASE IN RECs DURING THE TIME WE WERE WORKING WITH LEADERSHIP TO PROMOTE THIS CONCEPT. AND REALLY, AGAIN, LAYING THE GROUND WORK FOR CARBON NEUTRALITY AND THE FUTURE WE WANT TO SEE HERE. SO THIS IS JUST A BRIEF ILLUSTRATION OF WHAT TRADITIONAL NET-ZERO ENERGY REC WOULD LOOK LIKE. OVER TIME YOU START WITH HIGH RELIANCE ON GRID ENERGY. WE HAVE A SMALL OUTPUT NOW BUT WITH TIME INCREASE ON-SITE RENEWABLE, BECOME MORE EFFICIENT AND ULTIMATELY REACH OPTIMIZATION POINT. TO MAKE THAT POSSIBLE, WORKING WITH YOUR UTILITY, WE'RE ACTUALLY IN THE PROCESS OF DOING THAT NOW, I'LL TALK ABOUT THAT MORE IN A MINUTE. AND PROCURE YOUR RECs AT THE END. WELL, IN THE APPROACH WE'VE DECIDED TO ACT ON TODAY IT LOOKS MORE LIKE THIS. SO WE'VE GOT A MATCHING AMOUNT OF RECs FOR OUR GRID ENERGY USE, FOR STATIONARY SOURCES. THAT BEGAN IN FY 21 THANKS TO A PARTNERSHIP BETWEEN OURSELVES AND OUR NIH LEADERSHIP IN BETHESDA. SO WE SUPPORT EACH OTHER IN THAT REGARD. NIH HAS BEEN PROCURING RECs FOR SOME TIME AS PART OF REQUIREMENTS GRANTED US THOSE RECs FOR FY 21 AND WE MADE UP THE DIFFERENCE, WE SEE THAT CONTINUING INTO FY 22, FLYING SOLO THEN. AS THAT HAS TAKEN PLACE IN THE BACKGROUND WE'RE DEVELOPING DETAILED PLANS HOW TO GO ABOUT ADDING MORE RENEWABLE ENERGY, BECOMING MORE EFFICIENT, THOSE 12 ENERGY CONSERVATION MEASURES THAT I MENTIONED TO START WERE ONLY THE BEGINNING SO WE'RE IN ACTIVE -- ACTIVELY WORKING WITH OUR PROVIDER, DUKE ENERGY, ON A UESC AND THEY HAVE TAKEN SEED IDEAS, INITIAL CONSERVATION MEASURES, WE'VE GIVEN THEM PLENTY MORE TO THINK ABOUT, THEY ARE COMING UP WITH THEIR OWN AS WELL. AND AS THOSE THINGS PRESENT AS APPROPRIATE RETURN ON INVESTMENT, VALUES AND GAINS WE'RE LOOKING FOR, OVER TIME THOSE GO ON. THOSE BECOME LIVE. AND WE WILL BE REDUCING OUR NEED FOR RECs IN THE PROCESS. HERE'S A SNEAK PEEK ABOUT WHAT COMES NEXT WITH CARBON NEUTRALITY. WE'VE GOT A SPLIT HERE WHERE WE'VE GOT FROM AN ENERGY PERSPECTIVE THIS IS A FAST FORWARD, YOU SAW FY 19 BASELINE, WHAT YOU SEE IN THIS SLIDE NOW, FY 20. AND WE'VE GOT A GREATER DEPENDENCE CURRENTLY ON FOSSIL FUEL THAN ON ELECTRICITY. HOWEVER, WE'VE GOT MORE EMISSIONS AT PRESENT COMING FROM ELECTRICITY THAN WE DO FROM FOSSIL FUEL. SO THAT'S REALLY OUR STARTING POINT. AND THAT'S SOMETHING TO BE MINDFUL OF BECAUSE TIMING IS IMPORTANT. AND AS WE MOVE TOWARDS CARBON NEUTRALITY, WHEN TO BRING PROJECTS ONLINE AND EXECUTE, IN THE BEGINNING UNTIL WE REACH INFLECTION POINT FOR OUR GRID WITH OUR PROVIDER DUKE ENERGY UNTIL WE HIT 2033 WE'RE ACTUALLY MORE CARBON EFFICIENT, QUOTE/UNQUOTE, HAVE A LOWER CARBON FOOTPRINT USING OUR NATURAL GAS FUEL AS OUR MAIN RESOURCE FOR CENTRAL UTILITY PLANT. THEN FROM 2033 FORWARD WE START TO SEE SHIFT WITH ADDITIONAL GREENING OF THE GRID FOR ELECTRIFICATION BECOMING THE MORE PREDOMINANT WAY TO HAVE A LOWER CARBON IMPACT. SO, THESE ARE OUR STARTING POINTS, KEY FACTORS WE'RE CONSIDERING, IN THE MIX OF HAVING CARBON NEUTRALITY ASSESSMENT PREPARED TO GET BIG PICTURE IDEAS. NOT AS DETAILED AS FEASIBILITY STUDY WAS FOR NET ZERO EMISSION BUT GETTING US CONCEPTUALLY PREPARED AS WE LOOK AT THE FUTURE FOR THINGS WE'LL NEED TO DO ON CAMPUS AND WANT TO DO ON CAMPUS WITH DIFFERENT KINDS OF OPERATIONS. WITH THAT, WHAT COMES NEXT? SO, YOU'VE GOT HIGHLIGHTS HERE. WE'LL BE GETTING IN THIS FISCAL YEAR PRELIMINARY ASSESSMENT FROM UESC PARTNER, COMPLETING NEUTRALITY ASSESSMENT, PUT ON REQUEST SIX ADDITIONAL ELECTRIC VEHICLES, WE CAN LEASE FROM GSA OH SO AS LEASES EXPIRE WE'LL REQUEST THESE. REQUEST FY23 AND BEYOND THAT'S WHEN WE'LL HAVE THE RESULTS OF OUR PRELIMINARY ASSESSMENT, LESS THAN COMPELLING KEY DATA TO WORK WITH, WE'LL NEED TO BE PARTNERING WITH EPA BECAUSE WE ARE A CENTRAL UTILITY PLANT THAT'S JOINTLY SHARED SO THAT WE BOTH KNOW WHAT WE'RE UP TO ON EACH OTHER'S SIDES. AND THEN FROM THERE WE'LL BE LOOKING TO SEE WHAT'S GOING TO MAKE THE MOST SENSE IN ENERGY EFFICIENCY, ON-SITE RENEWABLES, BATTERY STORAGE, ALL THE GOOD THINGS THAT LEAD TO DECARBONIZATION AND WE'VE BEEN ACTIVELY STUDYING THIS YEAR HOW WE WANT TO EXPAND OUR ELECTRIC VEHICLE CHARGING STATION NETWORK, AND WE LOOK TO 23 AS LIKELY THE YEAR WE'LL START TO ACTUALLY BREAK GROUND AND INSTALL MORE STATIONS TO SUPPORT THE VEHICLES WE HAVE COMING. HERE IS MY CONTACT INFORMATION. I'D BE HAPPY TO FIELD QUESTIONS IF PEOPLE HAVE THEM AFTER TODAY. THIS GIVES MY E-MAIL AND PHONE. THAT WILL CONCLUDE MY SET. >> WHILE WE'RE WAITING FOR QUESTIONS TO COME IN, KERRI, I WAS CURIOUS WHAT KIND OF INVESTMENT ARE YOU MAKING IN THE RECs? I'VE NOTICED I BELIEVE THE COST OF RECs IS INCREASING. AND WHAT HAVE YOU BEEN SEEING? >> YEAH, SO YES, WE SAW PROPORTION.MENT, HISTORICALLY SOLAR RECs WERE $1.50 A MEGAWATT HOUR, LITERALLY AS WE WERE PREPARING FOR SENIOR LEVEL CONVERSATIONS LOCALLY WE GET OUR RECs THROUGH DLA, DEFENSE LOGISTIC AGENCY AS OUR BROKER AND GOT FEEDBACK FROM DLA WE WOULD BE LOOKING AT QUITE A RANGE, DEPENDING ON WHAT YOU WANT TO PROCURE. SO, NIH HAS -- MEETS REQUIREMENTS THROUGH RECs, GOES THE ROUTE OF BIOMASS COMBUSTION. WHEN WE PARTNERED WITH THEM WE FILLED IN THE GAP WITH GREEN E CERTIFIED WIND AND SOLAR, AND THOSE WERE $5 AND $6, UP FROM $1.50, NOW TO $5 AND $6, I'VE BEEN HEARING THROUGH EPA'S GREEN POWER PARTNERSHIP THINGS MAY BE HEADING IN THE DIRECTION OF $8 A MEGAWATT HOUR SO IT'S GOING TO BE INTERESTING TO FOLLOW THAT TRAJECTORY. >> YEAH, FOR SURE. AND JOFREY, YOU'RE STILL ON THE LINE. THERE WAS A QUESTION THAT HAD COME UP BEFORE YOU HAD A CHANCE TO ANSWER. DID YOU HAVE A ROUGH COST ESTIMATE DONE WITH THE ROADMAP TO UNDERSTAND YOUR SCALE OF INVESTMENT THAT WAS REQUIRED? >> SO, A COST ESTIMATE TO I GUESS MODERNIZE OUR INFRASTRUCTURE AND DETERMINE THE LEVEL OF INVESTMENT NEEDED TO MEET THE GOALS OR JUST THE ESTIMATE, JUST FOR THE STUDY? I WANT TO MAKE SURE I UNDERSTAND. >> THE QUESTION DID NOT SPECIFY. JUST ASKING WAS THERE ROUGH COST ESTIMATE DONE WITH THE ROADMAP TO UNDERSTAND THE SCALE OF INVESTMENT REQUIRED. >> OKAY. YES, I'M HESITANT TO GIVE THE ANSWER BECAUSE WE WERE STILL WORKING ON REALLY DEFINING THE DIFFERENT STRATEGIES WE'RE GOING TO PURSUE. AND WE NEED TO DO LIKE A CASH FLOW ASSESSMENT OR, YOU KNOW, PERIOD OF YEARS, AND BUT THE INITIAL AMOUNT WAS SIGNIFICANT, BUT IT'S NOT THE WHOLE PICTURE. YOU KNOW, I WOULD NOT BE COMFORTABLE JUST GIVING YOU A LUMP SUM NUMBER. >> OKAY, RIGHT. >> YEAH. BUT, YOU KNOW, I CAN CHECK WITH MY BOSS AND SEE IF WE COULD -- IF THERE'S SOMETHING WE COULD SHARE ABOUT THAT ONCE OUR PLAN IS ACTUALLY FINALIZED. THAT NUMBER IS GOING TO VARY SIGNIFICANTLY FROM CAMPUS TO CAMPUS. IT'S USUALLY SITE SPECIFIC AS WELL. BUT IT'S SIGNIFICANT. >> RIGHT. OKAY. AND THEN KERRI, ARE YOU SEEING THE CHAT? >> YEAH, I DO, THANKS. SO, THIS ACTUALLY PREDATES MY ROLE WITH THE INSTITUTE AS TO WHEN THAT NET-ZERO ENERGY WAREHOUSE IS BEING DESIGNED AND IMPROVED. >> I'M SORRY, KERRI, THE VIEWERS CANNOT SEE THE CHAT SO WE NEED TO REITERATE THE QUESTION. >> OH, THANK YOU. I'M HAPPY TO READ IT IF THAT WOULD HELP. >> SURE, SURE. >> THE QUESTION THAT WE RECEIVED IS, WHAT ARE SOME BEST PRACTICES YOU CAN SHARE FROM THE NET-ZERO ENERGY WAREHOUSE PROCESS TO HELP OTHER AGENCIES SUCCESSFULLY PROPOSE AND GET TO YES ABOUT NET-ZERO ENERGY ENERGY WITH THEIR MANAGEMENT REPRESENTATIVES? AND SO AS I WAS STARTING WITH, I WAS NOT PRESENT FOR THE INs AND OUTs OF ALL OF THAT BUT I HAVE HEARD THAT WAS NOT THE ORIGINAL DESIGN FOR THE FACILITY. THE NET-ZERO ENERGY WAREHOUSE WAS ORIGINALLY GOING TO BE A WAREHOUSE THAT WOULD MEET EFFICIENT DESIGN BUILDING GUIDES AS REQUIRED FOR CONSTRUCTION WITHIN THE FEDERAL WORLD BUT NOT NECESSARILY NET-ZERO ENERGY, THAT WAS SOMETHING OUR PRIOR EXECUTIVE OFFICER WHO IS NOW SINCE RETIRED CHAMPIONED, CHRIS LONG, IF THERE'S ANYBODY IN THE DIGITAL ROOM THAT KNEW CHRIS. HE WORKED ACTIVELY WITH LOCAL LEADERSHIP AND FACILITIES, FACILITIES FOLKS ARE HERE LOCALLY BUT THEY DO REPORT UP TO BETHESDA FOR THEIR LEADERSHIP SO THERE WERE DIFFERENT COMMUNITIES OF STAKEHOLDERS HE REALLY HAD TO WORK CLOSELY WITH, TO ADVOCATE FOR THAT OUTCOME. IT WAS A SIGNIFICANT ACHIEVEMENT, OUR FIRST NET-ZERO ENERGY FACILITY WITHIN DEPARTMENT OF HEALTH AND HUMAN SERVICES, SO IT IT WAS NOT CONVENTIONAL THINKING BUT PART OF HOW WE GOT TO YES WAS REALLY PUSHING THE CONNECTION WITH OUR MISSION, IN PARTICULAR HERE AT OUR INSTITUTE, BECAUSE OF OUR ROLE WITH THE ENVIRONMENT AND ITS EFFECT ON HEALTH, CLIMATE, AND ISSUES RELATED TO FOSSIL FUEL COMBUSTION, THAT WAS A BIG LEVERAGE POINT. THERE WERE CERTAINLY I THINK SOME BENEFITS FINANCIALLY FOR THE OPERATION OF THE BUILDING BECAUSE WE WOULD BE RELYING LESS SO ON GRID ENERGY. AND WE DO EXPORT SOME ADDITIONAL ELECTRICITY AS WELL. BUT I THINK THAT WAS, TO MY UNDERSTANDING, THAT WAS REALLY THE MOST SIGNIFICANT PART OF THE CONVERSATION IS WE NEED TO EMBRACE WHO WE ARE WITHIN OUR OPERATIONS, AND MOVE IN THAT DIRECTION. >> AND THEN FROM A HEADQUARTERS PERSPECTIVE AND WE WORKED A LOT WITH YOU ALL TO MAKE SURE THERE WAS A LOT OF ATTENTION THAT WAS PUT ON THIS PROJECT. AND TO ADVERTISE AND GET THE WORD OUT AS WE COULD TO SHOW IT'S POSSIBLE WITHIN OUR DEPARTMENT WHERE IT'S -- WE HAVE VERY ENERGY INTENSIVE (INDISCERNIBLE) AND IT'S DIFFICULT. >> THAT'S RIGHT. YOU WERE PART OF THAT TIMELINE. KENNY FLOYD WHO IS ONE OF THE ORGANIZERS FOR THE EVENT, ALSO PART OF NIH, IS SENDING ME SOME FEEDBACK AS WELL BECAUSE HE'S FROM THAT PART OF THE PROCESS. AND HE'S REMINDING ME THERE'S ALSO A CONTRIBUTION OF THE OCCUPANTS IN THE BUILDING. SO THERE WAS QUITE A BIT OF EDUCATION THEY HAD TO RECEIVE ABOUT WHAT IT MEANS AND WHAT THEIR ROLE IS TO BE LIVING AND WORKING AND CONTRIBUTING IN THE WORK ENVIRONMENT THAT IS A NET-ZERO ENERGY WORK ENVIRONMENT. IT IS AN ADJUSTMENT. IN THE WAREHOUSE OPERATIONS FOOTPRINT AREA WHERE WE STORE MATERIALS AND YOU'RE SEEING FORKLIFT ACTIVITY AND DOCKS AND WHAT NOT, THAT'S NOT CLIMATE CONTROLLED. THERE'S LARGE FANS AND THEY WORK HARD TOWARDS DOING THEIR BEST WITH THAT. THE BUILDING DESIGN WAS OBVIOUSLY ADDRESSING THAT. BUT YOU'RE NOT STEP IN TO, SAY, AN AIR CONDITIONED ENVIRONMENT, FOR EXAMPLE, SO THERE WAS SOCIALIZING THAT WENT ALONG WITH THAT. THERE IS AN OFFICE COMPONENT OF THAT BUILDING AND THAT IS MORE TRADITIONALLY CLIMATE CONTROLLED BUT, AGAIN, ITS DESIGN WAS SUCH THAT IT WAS MEANT TO BE THE MOST EFFICIENT WE COULD ACHIEVE BEFORE WE HAD TO ADDRESS THOSE THINGS AS WELL. LIKE -- IT LOOKS LIKE WE HAVE A QUESTION FOR JOFREY. >> SURE. I'LL READ THE QUESTION FROM THE CHAT. THE QUESTION IS HOW ACCURATE WAS THE DIGITAL TWIN MODEL TO THE REAL DATA? IT'S A GOOD QUESTION. IT DEPENDS ON -- REALLY DEPENDS ON YOU AND YOUR GROUP. YOU CAN MAKE IT VERY DETAILED, BUT IT'S GOING TO TAKE MORE TIME AND EFFORT TO COLLECT, YOU KNOW, ACCURATE DATA FROM ENERGY USAGE FROM YOUR FACILITIES. AND THEN PUT IT IN THE MODEL. SO, OUR APPROACH WAS INITIALLY TO GET ENOUGH INFORMATION SO IT ACTUALLY REFLECTS REAL LIFE CIRCUMSTANCES, BUT WE'RE ABOUT TO START THE NEXT LEVEL WHERE WE'RE ACTUALLY GOING TO START DOING DEEP DIVES ON THE FACILITIES THAT HAVE MOST OF THE OPPORTUNITIES AND THEN, YOU KNOW, WE'RE GOING TO HAVE TO SPEND A LOT MORE TIME AND EFFORT COLLECTING REAL LIFE DATA FROM BUILDING ENERGY USAGE AND THEN PUT IT IN THE MODEL. AND THIS IS HELPFUL BUT THERE HAS TO BE A BALANCE, RIGHT? YOU WANT TO BE ABLE TO UPDATE THE MODEL PERIODICALLY TO REASSESS, I DON'T KNOW, ANNUALLY, MAKE SURE YOUR GOALS ARE STILL ALIGNED WITH YOUR ULTIMATE GOAL. AND YOU'RE MEETING SPECIFIC METRICS AND MILESTONES. SO, THE MORE DATA YOU HAVE THERE, AND YOU NEED TO UPDATE IT, SOMETHING YOU'RE GOING TO HAVE TO DO, YOU KNOW, AND KEEP IT UP. SO, IT'S JUST, YOU KNOW, A LONG-TERM COMMITMENT BUT IT'S AN INVALUABLE TOOL FOR PLANNING PURPOSES AND VERIFICATION. >> GREAT. IT LOOKS LIKE THAT'S IT FOR QUESTIONS. THANK YOU BOTH, KERRI AND JOFREY, VERY INTERESTING TO GET THAT PERSPECTIVE LOOKING AT LABORATORY CAMPUSES. WE HAVE JARO SEBEK WITH THE NATIONAL INSTITUTES OF HEALTH, ENVIRONMENTAL ENGINEER, DEPARTMENT OF HEALTH AND HUMAN SERVICES. WITH THAT, JARO, IT'S ALL YOU. >> ALL RIGHT. LET'S SEE HERE. MY SLIDES, THERE WE GO. OH, IT DIDN'T COME UP WHEN I'M SHARING. LET ME TRY THAT AGAIN. THERE WE GO. ALL RIGHT. GOOD AFTERNOON. WE'RE GOING TO LOOK AT HOW THE NIH REDUCED ENERGY CONSUMPTION OPERATING COSTS, INCREASED RELIABILITY OF COLD STORAGE BY CONDUCTING FREEZER CHALLENGE, A NICHE AREA OF ENERGY SAVINGS THAT'S BECOMING MORE RELEVANT NOW AS MORE FEDERAL AND STATE AGENCIES ARE USING COLD STORAGE EQUIPMENT FOR VACCINES AND FOR COVID. SO WE HAVE THOUSANDS OF LABORATORY FREEZERS AND REFRIGERATORS AT NIH, ULTRA LOW TEMPERATURE, NEXT CATEGORY IS THOSE THAT OPERATE BETWEEN MINUS 20 AND MINUS 40 DEGREES FOLLOWED BY LN2 AND LABORATORY REFRIGERATORS. WITH SO MANY FREEZERS AND REFRIGERATORS, AT THE NIH, STUDIED HOW THEY WERE AFFECTED BY OPERATING CONDITIONS. THE STUDY SHOWED THE PERFORMANCE FACTORS SHOWN ON THIS SLIDE, THINGS SUCH AS AGE AND MAINTENANCE, AND INITIAL TEMPERATURE, ENERGY CONSUMPTION, AND TEMPERATURE SETTING, HOW THEY AFFECTED THE COMPRESSOR DUTY CYCLE AND CORRESPONDING ENERGY CONSUMPTION. YOU CAN SEE A LINK TO THAT STUDY ON THIS SLIDE. THE STUDY ALSO SHOWED US HOW MUCH ENERGY IS REALLY BEING USED BY COLD STORAGE EQUIPMENT AT THE NIH. ONE CONSUMES 20-KILOWATT HOURS A DAY, AVERAGE COMING DOWN SINCE THE EPA INCLUDED LABORATORY FREEZERS AND REFRIGERATORS INTO THE ENERGY STAR PROGRAM IN 2017, MANUFACTURERS RESPONDED AND FREEZERS HAD BECOME MORE EFFICIENT BUT MOST OF THE FREEZERS AT THE NIH ARE OLDER THAN THAT. SO WE'RE STILL AT THAT 20-KILOWATT HOUR PER DAY, WHICH SHOULD GO DOWN IN A FEW YEARS, AND WITH THOUSANDS OF FREEZERS AND REFRIGERATORS AGAIN THE TOMORROW ENERGY CONSUMPTION IS SIGNIFICANT. ALONG WITH THE ENERGY CONSUMPTION COMES CORRESPONDING COST. THESE ARE THE COSTS SHOWN AT OUR -- AVERAGE RATE AT BETHESDA CAMPUS, MOST ARE AT OUR BETHESDA CAMPUS, THAT'S WHY WE USE THIS RATE. AND THEN IN ADDITION TO THE COST WE HAVE THE GREENHOUSE GAS EMISSIONS, WITH THOUSANDS OF FREEZERS AND REFRIGERATORS COSTS AND EMISSIONS ARE SIGNIFICANT. SO, BASED ON RESULTS OF THE STUDY WE DEVELOPED A FREEZER POLICY TO DETAIL HOW TO MANAGE ULT FREEZERS THROUGH THE ENTIRE LIFE CYCLE TO INCREASE RELIABILITY AND REDUCE ENERGY CONSULTS. EXAMPLE IN THE POLICY THAT'S ALSO SHOWN ON THE SCREEN IS THAT WE REQUIRE SEMI ANNUAL PREVENTIVE MAINTENANCE. REGULAR PREVENTIVE MAINTENANCE WAS BEING DONE IN SOME OF OUR LABS BUT IT WASN'T WIDESPREAD UNTIL THIS POLICY CAME OUT AND THEN EVEN AFTER POLICY CAME OUT WE HAD TO DO SOME MARKETING AND COMPLIANCE INFECTIONS TO HELP GET THE WORD OUT THIS WAS A REQUIREMENT. BEYOND THE POLICY THERE ARE A NUMBER OF ADDITIONAL WAYS TO REDUCE ENERGY CONSUMPTION AND WE'RE ENCOURAGING LABS TO TAKE ON SOME OTHER OPPORTUNITIES IN THE NIH FREEZER CHALLENGE. NIH FREEZER CHALLENGE IS BASED OFF THE INTERNATIONAL FREEZER CHALLENGE. WE HAVE A FEW DIFFERENCES BETWEEN NIH AND INTERNATIONAL BUT FOR MOST PART CHALLENGE INITIATIVES ARE PRETTY SIMILAR, SOME EXACTLY THE SAME. TO HAVE PARTICIPATED IN OUR CHALLENGE YOU HAVE TO BE FIRST IN COMPLIANCE WITH ALL OF OUR REQUIREMENTS OF OUR FREEZER POLICY AND WE CAN HELP LABS THAT ARE INTERESTED MEET ANYTHING THAT THEY ARE NOT CURRENTLY MAINTAINING AT THE TIME. AND THEN ALSO COMPLETE ONE OF THE CHALLENGE INITIATIVES SHOWN ON THE SLIDE. THEN WE GO INTO A LITTLE BIT ABOUT SOME CHALLENGE INITIATIVES AND FOLLOWING SLIDES GIVE MORE INFORMATION. ONE OF THE BIGGEST WAYS THAT WE CAN REDUCE ENERGY CONSUMPTION IS SETTING THE TEMPERATURE OF THE FREEZER TO MINUS 70 DEGREES CELSIUS VERSUS MINUS 80 OR NOW MINUS 86. PRIOR TO 1990, ALL THE FREEZERS CAME SET AT MINUS 70 OR MINUS 65, AND MANY FREEZERS DIDN'T HAVE CAPABILITY TO GO TO MINUS 80. PUSH TO MINUS 80 CAME FROM MANUFACTURERS AS A SELLING POINT WHY TO BUY THEIR FREEZERS, FIRST THE COMPETITOR, THEN ALL THE OTHER MANUFACTURERS FOLLOWED SUIT. THERE WASN'T A LOT OF DATA THAT WAS PRESENTED TO SHOW THAT THE DECREASE IN TEMPERATURE IS GOING TO OFFER SAMPLE -- GREATER SAMPLE INTEGRITY, AND THERE'S BEEN SEVERAL STUDIES DONE TO SHOW WITH SPECIFIC SAMPLES THAT THERE'S NO DIFFERENCE IN SAMPLE INTEGRITY AT MINUS 80 VERSUS MINUS 70. AND THERE ARE SOME SAMPLES THAT IT IS BETTER FOR SO IT'S NOT SOMETHING THAT YOU WOULD DO ON ALL YOUR FREEZERS, BUT FOR THE FREEZERS THAT YOU CAN IT'S A HUGE DECREASE IN ENERGY CONSUMPTION AND ALSO A LOT LESS PRESSURE ON THE COMPRESSORS SO IT CAN HELP WITH RELIABILITY. THERE'S A LOT OF APPREHENSION ABOUT CHANGING THE TEMPERATURE TO MINUS 70. ESPECIALLY FOR RESEARCHERS THAT ARE NEWER AND ARE FAMILIAR THAT THEY USED TO BE SET, SOME OF THE RESEARCHERS THAT WE WERE ABLE TO GET ON BOARD THAT WEREN'T REALLY HESITANT TO GET ON BOARD WERE -- REMEMBERED WHEN -- I REMEMBER WHEN THAT CAME AT MINUS 65 OR MINUS 70 SO THEY WEREN'T THAT HESITANT TO CHANGE, ESPECIALLY FOR NEWER RESEARCHERS, THIS IS SOMETHING THEY ARE CONCERNED ABOUT, SO WE'RE STARTING TO COLLECT SOME DATA ABOUT WHAT SAMPLES ARE BEING STORED AT THE NIH, SAFELY, AT MINUS 70, SO THAT WE CAN SHARE THIS INFORMATION AND ENCOURAGE MORE LABS TO CHANGE THE TEMPERATURE SETTING OF THEIR FREEZERS. ANOTHER WAY TO FREEZE UP -- FREE UP FREEZER SPACE AND REDUCE ENERGY CONSUMPTION IS BY DISCARDING SAMPLES. THERE'S A LOT OF TIMES SAMPLES END UP BEING STORED LONG AFTER THEY ARE ANY VALUE, JUST TAKING THE TIME TO GO THROUGH THE SAMPLE INVENTORY AND DECIDING WHAT'S NECESSARY AND NOT. THIS CAN HAVE A BIG DECREASE IN ENERGY CONSUMPTION BY REDUCING AMOUNT OF TOTAL SPACE NEEDED FOR NEW SAMPLES, YOU'RE FREEING UP SPACE FOR NEW RESEARCH RATHER THAN NEEDING A NEW FREEZER. ANOTHER THING IS DEFROSTING FREEZERS. IT'S UNCOMMON TO REGULARLY DEFROST YOUR FREEZER AT THE NIH. FREEZER MANUFACTURERS WILL ALWAYS HAVE CONDITION IN THE MANUAL OF WHEN TO DEFROST A FREEZER, EITHER A TIME REQUIREMENT OF ONCE PER YEAR OR UNDER CERTAIN OPERATING CONDITIONS WHEN ICE GETS TO A CERTAIN LEVEL. IT'S TIME CONSUMING TO DEFROST FREEZERS BECAUSE YOU HAVE TO TRANSFER SAMPLES INTO A DIFFERENT FREEZER AND THEN LET YOUR FREEZER WARM UP, ONCE YOUR TEMPERATURE SETTING GOES BACK DOWN TO MOVE THEM DOWN, SOME LABS DON'T HAVE ENOUGH FREE SPACE TO MOVE AN ENTIRE FREEZER'S WORTH OF SAMPLES INTO A TEMPORARY STORAGE, SO THEY HAVE TO RENT A FREEZER TO GET A FREEZER BROUGHT IN SO THEY CAN DO A DEFROST. SO, SOMETIMES WE GET SOME PRETTY BAD ICE BUILDUP AS SHOWN IN THESE PICTURES, AND THE WORST THAT I CAN REMEMBER SEEING IN PERSON WAS A RESEARCHER, SHE HAD TO PUT HER WHOLE BODY'S WEIGHT TO LEAN INTO THE FREEZER DOOR TO GET IT CLOSED. IN THESE CASES ESPECIALLY IT'S REALLY IMPORTANT TO DEFROST FREEZERS TO ALLOW GASKETS TO DO WHAT THEY ARE SUPPOSED TO DO AND SAVE US SOME ENERGY. ANOTHER GOOD WAY TO DO IT IS SHARING FREEZER SPACE. ONE WAY WE'RE ENCOURAGING LABS TO DO THIS IS WITH BACKUP FREEZERS. THE NIH HAS THOUSANDS OF LABS, AND MANY OF THESE LABS EACH OF THE LAB HAS THEIR OTHER THAN BACKUP FREEZER FOR THEIR LAB. AND SO WE HAVE A LOT OF FREEZERS THAT ARE JUST BEING RUN AT MINUS 80, RUNNING EMPTY JUST FOR -- IN THE EVENT OF A FREEZER FAILURE. NOW WE UNDERSTAND THAT'S NECESSARY, BUT WHAT WE WOULD LIKE TO DO IS GET LABS THAT ARE NEAR EACH OTHER TO WORK TOGETHER AND SHARE SPACE AND JUST BY SHARING THAT BACKUP FREEZERS, BY SHARING BACKUP FREEZERS AND SHARING SPACE WE CAN REDUCE THE AMOUNT OF COLD STORAGE EQUIPMENT REQUIRED. LIQUID NITROGEN FREEZERS HAVE ADVANTAGES, THERE'S A LOT OF FACTORS TO CONSIDER BEYOND ENERGY CONSUMPTION THAT WE'RE NOT GOING TO GET TO IN THIS PRESENTATION. WE'LL LEAVE THAT FOR ANOTHER DISCUSSION. BUT LIQUID NITROGEN FREEZERS CONSUME LESS ENERGY AND ARE MORE RELIABLE. ONE CHALLENGE IS TO LOOK AT SAMPLE INVENTORY, ESPECIALLY FOR LONG-TERM SAMPLES, THAT'S WHERE LIQUID NITROGEN GETS MORE OF A BENEFIT BECAUSE FOR LONG-TERM SAMPLES, THE SAMPLES AREN'T ACCESSED AS FREQUENTLY, SO YOU DON'T HAVE AS MANY DOOR OPENINGS, SO YOU HAVE LESS LOSS OF LIQUID NITROGEN FROM THE DOOR OPENING, SO IT MAKES FOR LONG-TERM SAMPLES, LIQUID NITROGEN FREEZERS ARE ESPECIALLY IDEAL. AND ELECTRONIC SAMPLE INVENTORIES ARE ALREADY REQUIRED FOR OUR PHARMACEUTICAL SAMPLES AND CLINICAL SAMPLES, AND MOST RESEARCH SAMPLES ARE -- DO HAVE ELECTRONIC SAMPLE INVENTORIES AS WELL, EVEN THOUGH THOSE AREN'T NECESSARILY REQUIRED. I THINK MOST IMPORTANT THING WITH THIS INITIATIVE IS NOT NECESSARILY THE ESTABLISHMENT OF INVENTORY BECAUSE MOST OF THEM ALREADY ARE IN PLACE, BUT IT'S KEEPING IT UP TO DATE. I'VE SEEN INSTANCES WHERE THERE'S RESEARCHER LOOKING IN A FREEZER, THEY ARE RUMMAGING AROUND LOOKING FOR THEIR SAMPLES, I'VE HEARD A REFERENCE TO OTHER PEOPLE TALKING ABOUT IT LIKE, YOU KNOW, SEARCHING THROUGH THE FRIDGE LOOKING FOR THE RIGHT LEFTOVER, AND IT DOES SEEM LIKE THAT. SO SOMETIMES YOU HAVE THESE LARGE DOOR -- LONG DOOR OPENINGS, OVER TWO MINUTES EASILY, AND YOU'RE LOSING ALL THAT CONDITIONED AIR. SO WE REALLY WANT TO ENCOURAGE YOU TO KEEP YOUR INVENTORY UP TO DATE SO WHEN YOU'RE GOING INTO THE FREEZER YOU KNOW EXACTLY WHAT BOX YOU'RE LOOKING FOR, WHERE YOUR BOX IS LOCATED. MANY FREEZERS ARE 600 BOXES, SO HAVING A GOOD IDEA CAN REDUCE YOUR DOOR OPENINGS AND MAKE YOUR LIFE A LITTLE EASIER, BUT ALSO REDUCE THE CORRESPONDING ENERGY CONSUMPTION AS WELL. THIS IS A FAIRLY NEW INITIATIVE. SEVERAL COMPANIES ARE NOW OFFERING HIGH DENSITY SAMPLE STORAGE BOXES FOR ONE MILLILITER AND HALF MILLILITER SAMPLE TUBE, SAME SIZE AS 100 CELL BOX BUT THEY CAN STORE A LOT MORE SAMPLES. A CHALLENGE WITH THIS IS THAT OUR LABS ARE USING THE 1.5-MILLILITER TUBES, MANY LABS USE THOSE TUBES RATHER THAN SMALLER ONES, EVEN IF THEY ARE USING SMALLER SAMPLES THEY STILL USE THE 1.5 MILLILITER TUBES, AND THESE CONFIGURATIONS WON'T FIT THAT, BUT IF YOU ARE WILLING TO CHANGE YOUR TUBES, THIS IS A GIGANTIC OPPORTUNITY TO HAVE MORE STORAGE IN THE SAME AMOUNT OF SPACE. SO A LOT OF INITIATIVES WE DISCUSS TALK ABOUT REDUCING THE AMOUNT OF COLD STORAGE SPACE THAT'S REQUIRED. AND SO IDEALLY WHEN DOING THAT, YOU'LL END UP WHERE HOPEFULLY A WHOLE FREEZER WOULD NO LONGER BE NECESSARY. SO, MOST OF THE CHALLENGE INITIATIVES WE DISCUSSED, THEY ALL WILL INCREASE FREEZER RELIABILITY, REDUCE ENERGY CONSUMPTION, REDUCE OPERATING COST AND GREENHOUSE EMISSION, RETIRE UNNECESSARY FREEZERS HAS ADDITIONAL BENEFITS BECAUSE THEY DON'T HAVE -- YOU'RE ALSO ELIMINATING THE NEED FOR PREVENTIVE MAINTENANCE, EVERY SIX MONTHS, AND ANY MECHANICAL FAILURES THAT THE MAINTENANCE REPAIR COST, REPAIR AND MAINTENANCE COST YOU'RE ELIMINATING AS WELL FOR ANY FREEZERS THAT ARE RETIRED, NO LONGER NECESSARY. AND THEN NOT ONLY ARE YOU FREEING UP COLD STORAGE SPACE IN THIS INSTANCE, YOU'RE ALLOWING IT TO BE USED FOR SOMETHING ELSE IN THE LAB, AND OUR LABS, ESPECIALLY BETHESDA CAMPUS, SPACE IS A PREMIUM. EQUIPMENT IS CRAMPED EVERYWHERE. IF SOME LABS WERE ABLE TO DO THIS, IT'S A BIG ADVANTAGE. THIS INITIATIVE WE HAVEN'T HAD MUCH TRACTION AT THE NIH YET. ONE LAB, LABORATORY OF CELL BIOLOGY, TRIED THIS. THERE'S SOME CHEMICAL STORAGE SOLUTIONS WHICH ELIMINATE THE NEED FOR STORING AT COLD TEMPERATURES. YOU CAN STORE AT ROOM TEMPERATURE USING THESE CHEMICAL SOLUTIONS. AND THERE'S SOME BIG BENEFITS WITH THIS, NOT ONLY ARE YOU ELIMINATING REQUIREMENT FOR COLD STORAGE BUT AS IT SAYS ON THE SLIDE WE ALSO ELIMINATE THE COLD STORAGE REQUIRED FOR TRANSPORT SO YOU DON'T NEED DRY ICE OR THE TEMPERATURE INSULATED SAMPLE STORAGE BOX WHEN YOU'RE -- IF YOU NEED TO SEND SAMPLES IN. THERE'S A COUPLE OPPORTUNITIES. I DON'T THINK THAT THERE'S MANY SAMPLE CATEGORIES THAT THIS COULD BE DONE. I THINK IT'S PRIMARILY DNA AND RNA. IF YOU'RE WILLING TO INVEST IN THE TECHNOLOGY, I THINK THERE'S A HUGE OPPORTUNITY HERE. SO WE STARTED THE CHALLENGE IN 2019. AND AFTER THE ORIGINAL CHALLENGE, WE ACTUALLY GENERATED A BIT OF ENTHUSIASM FROM PRESENTATIONS AT SOME OF OUR SUSTAINABILITY TEAMS, AND WE HAD A LOT OF LABS SIGN UP WHERE WE WERE ON TRACK TO HAVE A BIG INCREASE IN PARTICIPATION. UNFORTUNATELY, DUE TO THE PANDEMIC, MOST OF THE LABS SAID SEND THIS -- NOTIFIED US THEY WOULDN'T BE ABLE TO PARTICIPATE, UNDERSTANDABLY. WE WERE LIMITING THE NUMBER OF OCCUPANTS AT A TIME AND SO WITH LIMITED ACCESS TO LAB, YOU NEEDED TO FOCUS ON MISSION CRITICAL ACTIVITIES AND SO WE ONLY HAD FOUR PARTICIPANTS IN 2020, WE HAD A LITTLE BIT OF INCREASE LAST YEAR, STILL OPERATING UNDER PANDEMIC CONDITIONS, AND THIS YEAR AS WELL. SO HOPEFULLY NEXT YEAR MAYBE WE COULD GET IT TO A MUCH LARGER BASE. SO HERE'S SOME INITIATIVES THAT WERE DONE. YOU CAN SEE THAT IN 2021 FOR THE FIRST INITIATIVE REPLACING FREEZERS WITH ENERGY STAR, A BIG JUMP LED BY THE NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH SIGN TESTS, KERRI WHO PRESENTED BEFORE ME, THEY LED AN INITIATIVE TO REPLACE AGING FREEZERS OVER 15 YEARS OLD, I THINK IT WAS THE TARGET, IF I REMEMBER RIGHT, WITH NEW ENERGY STAR CERTIFIED, AND THIS HAS A COUPLE BENEFITS AND ONE THAT THE FREEZER LIFE ESTIMATED BY THE MANUFACTURERS IN THE SERVICE TO PROVIDERS IS ANYWHERE FROM 8 TO 12 YEARS, SO THEY WERE ALREADY BEYOND USEFUL LIFE, AND THE ENERGY CONSUMPTION INCREASES BY ABOUT 2% EVERY YEAR, JUST EQUIPMENT BECOMES A LITTLE LESS EFFICIENT. AND SO YOU'RE SAVING ENERGY AND GETTING A MORE RELIABLE FREEZER. AND THEN YOU CAN SEE THE NUMBER OF SAMPLES AND RETIREMENTS OF FREEZERS ARE OUR BIGGEST HITTERS FOR ENERGY REDUCTION. AND SO WHEN ALL THAT IS ACCOMPLISHED, WE CAME UP WITH THE SAVINGS, SO LAST YEAR WE ELIMINATED ABOUT 261 GREENHOUSE GAS EMISSIONS, THOSE ARE ANNUAL SAVINGS BECAUSE YOU GAIN THOSE SAVINGS EACH YEAR THAT FREEZER WOULD BE IN OPERATION. AND THAT'S EQUIVALENT TO REMOVING ABOUT 57 CARS OFF THE ROAD. THESE SAVINGS ARE VERY SMALL, ESPECIALLY COMPARED TO SOME OF THE PREVIOUS PRESENTERS, ESPECIALLY IN TERMS OF THE TOTAL NIH ENERGY CONSUMPTION THEY ARE NOT A LOT. BUT THEY ARE ACCOMPLISHED FROM ONLY A SMALL NUMBER OF LABS AND THEY ARE VERY REPLICABLE, WITH THOUSANDS OF LABS AT THE NIH IF WE CAN GENERATE A LOT OF PARTICIPATION WE COULD HAVE SOME SUBSTANTIAL SAVINGS. THEY ARE REPLICABLE INITIATIVES, A LOT ARE ZERO COST, THEY ONLY TAKE OUR LAB STAFF TIME. THERE'S A TIME COMMITMENT REQUIREMENT BUT YOU DON'T HAVE TO PURCHASE SOMETHING EXTRA FOR A NUMBER OF THE INITIATIVES, SO IT'S A GREAT OPPORTUNITY. AND AS OUR KEYNOTE SPEAKER TODAY DISCUSSED, EO 14057 SETS AGGRESSIVE TARGETS FOR REDUCING EMISSIONS, AND IT'S ANOTHER REASON TO LOOK AT ANY OPPORTUNITY TO REDUCE ENERGY, REDUCE EMISSIONS, AND FREEZER CHALLENGES CAN DEFINITELY HELP WITH THAT. SO EACH YEAR WE SAY THE NIH FREEZER CHALLENGE WAS BASED ON INTERNATIONAL FREEZER CHALLENGE, EACH YEAR THE NIH AFTER WE'RE DONE WITH OUR CHALLENGE WE COMPILE OUR RESULTS AND SUBMIT TO INTERNATIONAL FREEZER CHALLENGE WHERE HUNDREDS OF LABS FROM ORGANIZATIONS AROUND THE WORLD COMPETE TO SEE WHO CAN REDUCE THE MOST ENERGY CONSUMPTION. SO, THE NIH WON THE FREEZER CHALLENGE IN THE GOVERNMENT ORGANIZATION CATEGORY IN 2020 AND 2021. OUR LABORATORY WON IN THE INDIVIDUAL LABORATORY CATEGORY, AGAIN IN 2021. WE GOT A LITTLE BIT OF RECOGNITION FROM THAT AT THE ANNUAL FREEZER CHALLENGE CONFERENCE, AND IN A COUPLE "NATURE" ARTICLES, ON THEIR WEBSITE. SO MORE INFORMATION, HERE'S SOME LINKS FOR THE NIH FREEZER CHALLENGE. SOME OF THE LINKS ARE FOR NIH STAFF, MS-TEAMS PAGES IS FOR US ONLY. EVERYBODY CAN LOOK AT ANYTHING WE'VE DONE AND CONTACT US AND THEN THERE'S ALSO A LINK TO THE INTERNATIONAL FREEZER CHALLENGE PAGE, IF YOU WANT TO LOOK AT -- IT'S VERY SIMILAR TO A LOT OF CHALLENGE INITIATIVES WITH SOME DIFFERENCES. AND THEN ONE OTHER BENEFIT IS THAT WE'VE TALKED A LOT ABOUT HOW THE FREEZER CHALLENGE IS GOING TO HELP THE ORGANIZATION THAT TAKES IT ON, BUT WHEN LARGE FEDERAL AGENCIES PARTICIPATE IN SUSTAINABILITY INITIATIVES, IT HELPS MANUFACTURERS SERVE AS PROVIDERS, SPONSORING INITIATIVES SO WE CAN HELP OUT WITH THAT. AND THEN ALSO WHEN LARGE FEDERAL AGENCIES SAY THAT ENERGY CONSUMPTION IS IMPORTANT CONSIDERATION FOR PURCHASING EQUIPMENT, IT DRIVES MANUFACTURERS TO INVEST IN ENERGY-EFFICIENT TECHNOLOGIES PRIOR TO RELEASE OF ENERGY STAR LABEL. THERE WAS ONLY A COUPLE FREEZERS THAT WERE COMMERCIALLY AVAILABLE THAT ACTUALLY COULD MEET THE ENERGY STAR REQUIREMENTS, BUT ONCE IT CAME OUT ALL THE MANUFACTURERS RELEASED A NUMBER OF FREEZERS, THAT ALL MEET REQUIREMENTS, ANY NEW FREEZER FROM MAJOR MANUFACTURERS WILL MEET THE ENERGY STAR REQUIREMENT. YOU CAN SEE ON THE RIGHT OF THE SLIDE A POSTER THAT'S UP THROUGHOUT CU-BOULDER, NIH SUSTAINABILITY INITIATIVES, JUST TO SHOW STUDENTS THIS IS SOMETHING THEY ARE GOING TO HAVE TO CONSIDER NOT JUST WHILE AT SCHOOL AT CU-BOULDER BUT PART OF THEIR LIFE WHEN THEY WORK IN A LAB THROUGHOUT, AND SO IT HELPS ENFORCE THE CULTURE OF BECOMING MORE ENVIRONMENTALLY CONSCIOUS. AND THAT'S IT. I CAN TAKE SOME QUESTIONS. THE FIRST QUESTION IS THIS LAB INITIATIVES, HOW DID YOU APPROACH WORKING WITH THE LAB STAKE HOEDERS IN -- STAKEHOLDERS TO GET BUY IN AND ENSURE PARTICIPATION BY EMPLOYEES? FIRST YEAR, WE TARGETED MAINLY OUR SUSTAINABILITY GROUPS. WE HAVE AN INTERAGENCY -- A SUSTAINABLE LAB PRACTICES WORKING GROUP, INTERAGENCY SUSTAINABLE LAB PRACTICE WORKING GROUP AND SOME GREEN TEAMS THAT WE REALLY FOCUS ON GETTING PARTICIPANTS. A LOT OF PARTICIPANTS, SOME LAB MANAGERS AND RESEARCHERS, SUSTAINABILITY IS IMPORTANT, THEY HAVE DONE A NUMBER OF SUSTAINABILITY INITIATIVES AND WE'RE ABLE TO TAKE THIS ON. AND THEN AFTER THAT, WE TRY TO USE THE SUCCESS OF THE FIRST YEAR TO GET SOME MORE FREEZER CHALLENGE PARTICIPANTS AND WE DID GET A LOT OF PEOPLE TO SIGN OFF WITHOUT LOOKING AT THE NUMBERS, I THINK WE HAD LIKE 35 LABS SIGN UP IN 2020 BUT, AGAIN, MOST OF THEM WERE NOT ABLE TO PARTICIPATE DUE TO THE PANDEMIC. AND SO WE'LL HAVE TO REALLY LOOK AT HOW TO GET PARTICIPATION AGAIN. NEXT QUESTION, HOW DO YOU TRACK ENERGY AND COST SAVINGS ASSOCIATED WITH THE CHALLENGE? SO WE'RE ACTUALLY -- I'M PRETTY CONSERVATIVE WITH THE SAVINGS. ISL, IF WE GO BACK TO SAVINGS, WE ESTIMATE 300-SOMETHING KILOWATT HOURS OF SAVINGS. INTERNATIONAL FREEZER CHALLENGE ESTIMATED WE WERE AT LIKE 500-SOMETHING. WE'RE NOT METERING EACH OF THE FREEZERS. BASICALLY WHEN A FREEZER THAT WE'RE ASSUMING AVERAGE ENERGY CONSUMPTION SHOWING ON THE FIRST COUPLE SLIDES WHERE 20-KILOWATT HOURS PER DAY, SO THEN AVERAGE ENERGY SAVINGS, SO AT A 30%, SO IF SOMEBODY CHANGES THEIR FREEZER FROM MINUS 80 TO MINUS 70, WE APPLY THE CHANGE FROM THE 5-KILOWATT HOUR CHANGE, AS THAT. AND THAT'S THE SAME NUMBER WE'RE USING FOR OUR -- WHEN WE'RE RETIRING FREEZERS. FOR FREEZER SAMPLE STORAGE SPACE WE WOULDN'T CONSIDER ANY ENERGY SAVINGS UNTIL WE REDUCE THE WHOLE FREEZER'S WORTH OF SAMPLES, SO WE ACTUALLY DON'T INCLUDE THAT. SO WE'RE PRETTY CONSERVATIVE AND IT'S ALL BASED ON THE 20-KILOWATT HOUR DAY FOR ULTRA LOW TEMPERATURE FREEZER AND WE HAVE OTHER STANDARD NUMBERS FOR OUR LABORATORY AND LABORATORY REFRIGERATORS. BUT AVERAGES, WE'RE NOT METERING EACH ONE OF THE INITIATIVES TO SEE THE EXACT CHANGE. ARE THE INITIATIVES IN THE FREEZER CHALLENGE INCORPORATED IN THE DOE BETTER LABS PROGRAM? SO, I KNOW THE DOE CAME OUT WITH A GUIDE THAT HAD BEST PRACTICES FOR MAINTAINING FREEZERS, BUT I DON'T THINK IT INCLUDED A LOT OF THE FREEZER CHALLENGE. I THINK IT DID INCLUDE SOME BUT I DON'T THINK IT INCLUDED ALL. IT DIDN'T INCLUDE AMBIENT TEMPERATURE STORAGE OR DIDN'T INCLUDE THE HIGH DENSITY SAMPLE STORAGE BOXES, BUT I DO THINK THEY HAVE A GUIDE FOR -- I NOVEMBER - I KNOW THEY HAVE A GUIDE FOR FREEZER MANAGEMENT AND I'M PRETTY CERTAIN IT TALKS ABOUT MINUS 70. FOR THE FREEZER CHALLENGE, HOW DID YOU MEASURE THE ENERGY CONSUMPTION FROM VARIOUS FREEZERSES, SUBMETERRING? THEY ARE BASED ON ESTIMATES. WE DID THE INITIAL FREEZER STUDY WE UNPLUGGED THE FREEZERS, PLUGGED IN METERS, AND WE USED A METER BETWEEN THE PLUG AND THE FREEZER WHERE WE GOT THE DAILY CON SUMS AND USED THOSE AVERAGES, ALSO FROM SOME OF OUR COUNTERPARTS LIKE CU-BOULDER DID A BUNCH OF ENERGY MEASURING AND THEN THERE WAS A CALIFORNIA UTILITY COMPANY THAT HIRED MY GREEN LABS TO DO SOME METERING. WE USED THE METERING DONE AT THE NIH, AT CU-BOULDER, AND METERING DONE FROM MY GREEN LABS SPONSORED BY UTILITY COMPANY AS A BASIS FOR OUR ESTIMATES FOR MEASURING ENERGY CONSUMPTION. BUT WE DON'T MEASURE IT FOR EACH LAB PARTICIPATING IN THE CHALLENGE. WE HAVE MEASURED THAT AT THE NIH, THESE DIFFERENT THINGS BUT THAT WAS PART OF THE STUDY, NOT AS WE'RE GOING TO OPERATE IN THE CHALLENGE. IT WAS PG&E, THE CALIFORNIA UTILITY COMPANY I WAS REFERRING TO. ALL RIGHT. I THINK I'M DONE CAN MY QUESTION TIME. IF YOU HAVE MORE QUESTIONS FEEL FREE TO E-MAIL ME AND LET ME KNOW. THANKS. >> THANK YOU, JARO. THANK YOU FOR INVITING US TO SHARE ABOUT FEDERAL ENERGY PERFORMANCE CONTRACTS. THE WAYS THESE CAN BE USED TO REDUCE ENERGY COSTS AND CARBON EMISSIONS. OUR GOAL IS TO PROVIDE AN OVERVIEW TO THESE TYPES OF CONTRACTS WHICH CAN BE A TOOL FOR FEDERAL AGENCIES TO FUND AND IMPLEMENT ENERGY INFRASTRUCTURE PRODUCTS, MEET NEW FEDERAL ENERGY GOALS REQUIREMENTS AND HELP THE FEDERAL GOVERNMENT LEAD TRANSITION TO CLEAN ENERGY. WE'RE LOOKING FORWARD TO SPEAKING WITH YOU. AS WE MENTIONED, I'M JEFF GINGRICH, NATIONAL RENEWABLE ENERGY LAB, SUPPORTING THE FEMP UTILITY PROGRAM WHICH IS RESPONSIBLE FOR HELPING AGENCIES AS THEY NAVIGATE UESCs, SPECIFICALLY UTILITY PERFORMANCE CONTRACTS, AND HELP THEM MEET ENERGY GOALS. PHIL? >> YEAH, PHIL VOSS, DIANA COVERED IT, SUPPORT THE PROGRAMS AS WELL AS DISTRIBUTED ENERGY PROGRAMS, PRIMARILY IN PROCUREMENT OF ENERGY EFFICIENCY AND RENEWABLE ENERGY FOR FEDERAL FACILITIES. JEFF? >> THANKS. ALL RIGHT. WE'LL START OFF QUICKLY GIVING AN INTRODUCTION TO FEMP. FEMP IS AN OFFICE WITHIN THE DEPARTMENT OF ENERGY, AND OUR GOAL IS TO WORK WITH FEDERAL AGENCIES TO HELP THEM MEET THEIR ENERGY-RELATED GOALS. AND ONE OF THE WAYS WE DO THAT IS THROUGH IDENTIFYING AFFORDABLE SOLUTIONS, LIKE PERFORMANCE CONTRACTS WHICH WE'LL BE DISCUSSING TODAY. ANOTHER WAY IS THROUGH JUST FACILITATING PUBLIC/PRIVATE PARTNERSHIPS, HELPING AGENCIES FIND THE RIGHT FOLKS IN THE PRIVATE SECTOR AND ELSEWHERE TO REALLY DRIVE FORWARD AND MEET THEIR GOALS. ALSO SHARING LESSONS LEARNED, CASE STUDIES, THINGS ON THE GROUND, HOW TO IMPLEMENT THESE TYPES OF PROJECTS AND SHARE WITH ONE ANOTHER. BACKGROUND ON PERFORMANCE CONTRACTS, THESE HAVE BEEN IN USE FOR OVER 20 YEARS NOW, STARTING IN THE 1990s, AND THEY HAVE BEEN USED TO HELP AGENCIES REDUCE COST AND ENERGY INTENSITY, WE'VE SEEN AN UPTICK OVER THE LAST SEVERAL YEARS, ONE OF THE CONTRACTS WE'LL BE TALKING ABOUT ENERGY SAVINGS PERFORMANCE CONTRACTS THAT ONE ALONE TOPPED OVER $1 BILLION IN INVESTMENT IN 2019. UESCs LARGEST YEAR IN 2021 WITH $300 MILLION, YOU CAN SEE THE BENEFITS THESE PROJECTS CAN HAVE ENERGY USE TO JOBS, CRITICAL BEING REDUCTION IN GREENHOUSE GASES. IT'S A BIG IMPACT, WE'RE SEEING A LOT OF INTEREST IN USING THESE TO HELP THE GOVERNMENT PURSUE GOALS. IT COMES DOWN TO FUNDING. AND THESE CONTRACTS CAN HELP AGENCIES PAY FOR ENERGY AND WATER EFFICIENCY IMPROVEMENTS WHEN EXISTING FUNDS MAY NOT BE SUFFICIENT TO PAY FOR THE SIZE AND SCALE OF PROJECTS. THERE'S AGENCY-SPECIFIC PRIORITIES, THINGS LIKE RESILIENCE, SITE REQUIREMENTS, FACILITY NEEDS, THERE'S OBVIOUSLY ALWAYS A PLETHORA OF EQUIPMENT THAT NEEDS TO BE ADDRESSED, THAT'S GETTING OLD, THAT MAY BE FAILING, THESE CAN HELP PAY FOR THOSE BUT REALLY THE BENEFIT COMES IN TAKING A SORT OF LONG-TERM COMPREHENSIVE APPROACH TO ENERGY PLANNING WHEN IT COMES TO PERFORMANCE CONTRACTS. THESE ARE LONG-TERM THAT WILL PAY FOR THEMSELVES. WE WANT AGENCIES TO THINK OF SETTING THEMSELVES UP FOR SUCCESS AND ANTICIPATING NEEDS 10 YEARS FROM NOW AS OPPOSED TO FIXING THE BACKLOGS ON SITE. I WANTED TO PAINT A PICTURE WHY WE SEE PERFORMANCE CONTRACTS AS AN IMPORTANT SOLUTION FOR THE FEDERAL GOVERNMENT MOVING FORWARD. THE ENERGY ACT OF 2020 HAD A KEY REQUIREMENT WITH LIFE CYCLE CONSERVATION MEASURES, THESE ARE TYPICALLY IDENTIFIED IN AUDITS COMPLETED AT FACILITIES AT LEAST EVERY FOUR YEARS, AND THIS ACT WENT FARTHER TO SAY THAT AGENCIES SHOULD BE USING PERFORMANCE CONTRACTING TO ADDRESS AT LEAST 50% OF THOSE MEASURES. THEY GENERATE ENOUGH SAVINGS TO PAY FOR THEMSELVES, A GREAT OPPORTUNITY. EXECUTIVE ORDER 14507 FROM THE BIDEN ADMINISTRATION THIS YEAR SETS THE TONE FOR WHERE THE GOVERNMENT IS HEADED OVER THE COURSE OF THE NEXT 25, 30 YEARS TOWARDS NET ZERO EMISSIONS, CARBON POLLUTION-FREE ELECTRICITY, ELECTRIC VEHICLES, ALL THESE OTHER ASPECTS THAT ARE GOING TO BE REALLY IMPORTANT FOR THE GOVERNMENT TO ADDRESS. IS NOW WE'LL GET INTO THE CONTRACTS TO HELP ADDRESS THOSE NEW GOALS. THESE ALLOW ENERGY PROJECTS WITH NO ADDITIONAL APPROPRIATION OR UPFRONT COSTS, WORKING WITH A UTILITY OR ENERGY SERVICE COMPANY, TO HELP ASSESS AND COME UP WITH A PACKAGE OF CONSERVATION MEASURES THAT WILL RESULT IN ENOUGH SAVINGS TO PAY FOR THE EQUIPMENT INSTALLATION COSTS, THE AGENCY STARTS ACCRUING THE SAVINGS TO DIRECT TO THE UTILITY OR THE ESCO TO PAY FOR THE CONTRACT OVER THE TERM. THERE ARE TWO SPECIFIC TIMES OF CONTRACTS, ENERGY SAVINGS AND UTILITY SAVINGS. I WANT TO START BY GOING THROUGH SOME OF THE COMMON ATTRIBUTES OF THESE CONTRACTS, BECAUSE THERE'S SIMILARITIES, BUT THERE'S ALSO KEY DIFFERENCES WHICH WE'LL GET INTO. THE BIG ONE BEING JUST THE GENERAL PURPOSE OF THESE CONTRACTS, IT'S TO ACHIEVE ENERGY SAVINGS, IMPROVE INFRASTRUCTURE, ANCILLARY BENEFITS THAT COME WITH THAT. THE MAXIMUM CONTRACT TERM IS 25 YEARS, THAT'S STARTING WITH TASK ORDER AWARD BEFORE CONSTRUCTION, FINANCING APPROPRIATIONS CAN BE COMBINED. THE UTILITY OR THE ESCO IS RESPONSIBLE FOR OBTAINING FINDING WHEN THAT'S USED FOR A PROJECT. FIRM FIXED PRICE, MULTIPLE SITES CAN BE COMBINED INTO A SINGLE TASK ORDER. DIFFERENT AS TO HOW THEY DO THAT BUT SUFFICE TO SAY IF YOU HAVE MULTIPLE AGENCY FACILITIES, WITHIN A GEOGRAPHIC REGION, YOU CAN COMBINE THOSE INTO A PROJECT TO TAKE ADVANTAGE OF THE ECONOMIES OF SALE. SO, QUICKLY LOOKING AT ENERGY SAVINGS PERFORMANCE CONTRACTS AND WHAT MAKES THEM UNIQUE, THE PRIME CONTRACTOR IS AN ENERGY SERVICE COMPANY. SO THAT HAS TO BE PRE-QUALIFIED DOE ESCO, AND REALLY CRITICAL HERE IS SAVINGS GUARANTEES AND M AND V ARE REQUIRED, A SPECIFIC SAVINGS AMOUNT NEEDS TO BE EXCEEDED EVERY YEAR. AND THEN ESCO IS RESPONSIBLE FOR M & O. THE PRIME CONTRACTOR IS A LOCAL SERVING DISTRIBUTION UTILITY, SO THAT MEANS COMPETITION IS LIMITED TO GAS, ELECTRIC OR WATER UTILITY. AND, AGAIN, PERFORMANCE IS VERY CRITICAL, SUSTAINED PERFORMANCE IS KEY TO THESE PROJECTS. THERE IS NO SAVINGS GUARANTEE REQUIRED FOR PERFORMANCE, FOR UESCs, BUT A STRONG PERFORMANCE ASSURANCE PROGRAM IS REQUIRED TO MAKE SURE THEY PERFORM TO STANDARDS AND RESULT IN THE SAVINGS THAT ARE ANTICIPATED. THESE ARE -- WE CALL THESE BUDGET NEUTRAL SOLUTIONS, IN TERMS OF HOW THE MONEY FLOWS DURING THESE PROJECTS. SO TO KIND OF PAINT THAT PICTURE YOU SEE ON THE LEFT-HAND SIDE MOST AGENCIES WILL START WITH AN ENERGY AND O&M BUDGET, DURING THE COURSE OF A PERFORMANCE CONTRACT, THEN THE SAVINGS THAT ARE ACCRUED WILL BE REDIRECTED DIRECTLY TO THE UTILITY, SO YOU WON'T NECESSARILY SEE NEW SAVINGS IMMEDIATELY, THEY WILL BE USED TO PAY FOR THE PROJECT OF THE ONCE THE PROJECT IS OVER AND EQUIPMENT IS PAID OFF, THE SITE SHOULD BE OPERATING MORE EFFICIENTLY WITH EXTRA SAVINGS AVAILABLE THAT CAN BE REINVESTED INTO THE AGENCY'S MISSION. AND THEN FINALLY, MY LAST SLIDE BEFORE I TURN IT OVER TO PHIL, I WANTED TO GIVE A SENSE OF EXAMPLES OF ENERGY CONSERVATION MEASURES, A VAST NUMBER OF OPTIONS SO THIS IS NOT EXHAUSTIVE. YOU CAN GET A SENSE OF THE TYPES OF MEASURES THAT ARE OFTEN PURSUIT IN THESE PROJECTS. AND THEY MUST PRODUCE AGAIN MEASURABLE ENERGY WATER OR DEMAND, BUT WE SEE A LOT OF THINGS, SMALL SCALE PROJECTS CAN BE THINGS LIKE LIGHTING, RETRO COMMISSIONING, TO LARGE SCALE PROJECTS SUCH AS RENEWABLE ENERGY SYSTEMS, MICRO GRIDS, BUILDING ENVELOPES, A LOT OF OPPORTUNITIES TO BE EXPLORED AND COMBINED. A KEY THING TO NOTE, YOU'RE LOOKING AT BUILDING A PACKAGE OF ECMs, SO YOU COMBINE SOME THAT MAY HAVE LONGER TERM PAYBACK WITH SHORTER TERM PAYBACK TO HAVE A PACKAGE THAT PAYS WITHIN THE CONTRACT TIMELINE THAT YOU'RE PLANNING TOWARDS, WHETHER THAT THE 20 YEARS OR 25 YEARS. SO WITH THAT, PHIL, I WILL HAND IT OVER AND LET YOU CONTINUE ON. >> ALL RIGHT. SOUNDS GOOD. THANKS, JEFF. WE CAN GO INTO THE NEXT SLIDE. YEAH, SO WITH THE ECMs AND ECM PACKAGES THAT JEFF TALKED ABOUT, AND THE PERFORMANCE CONTRACTING CONCEPT OF PAYMENT FROM SAVINGS WHERE CAN WE GET THESE SAVINGS TO PAY OFF THE CONTRACTS AND SOME OF THIS IS A BIT OBVIOUS WITH THE ENERGY AND WATER COST SAVINGS. SO IMPROVING EFFICIENCY OF EQUIPMENT, ONE SLIDE BACK STILL. SORRY. AND THEN REDUCING EQUIPMENT USAGE OR REDUCING DEMAND OR BUILDING LOADS, SHIFTING LOADS OR SHIFTING TO LOWER COST FUELS, CERTAINLY TO ON-SITE GENERATION LIKE RENEWABLE ENERGY GENERATION AND NOT OVERLOOKING WATER AND WASTEWATER EFFICIENCY, AND THERE CAN BE STRATEGIES AS JEFF JUST MENTIONED LIKE RECOMMISSIONS, FOR EXAMPLE, OR ONGOING COMMISSIONING THAT CAN GENERATE ADDITIONAL COST SAVINGS. THE ENERGY AND WATER RELATED COST SAVINGS IS GENERALLY ATTRIBUTED TO REDUCTION IN O&M COSTS, SO IF YOU HAVE A THIRD PARTY O&M PROVIDER AND YOU'RE ABLE TO REDUCE THAT CONTRACT, OR REDUCE THE MATERIALS THAT ARE NEEDED FOR A LABOR INTENSIVE OR MAINTENANCE INTENSIVE OLD BOILER SYSTEM OR CHILLER SYSTEM, THAT EXISTED AS A LOT OF FEDERAL FACILITIES, THEN YOU GET THAT ENERGY AND WATER RELATED COST SAVINGS. AVOIDED COST IS WHEN YOU CAN AVOID THROUGH REPLACEMENT WITH ONE OF THESE CONTRACTS. FOR EXAMPLE, IF YOU ARE PLANNING TO OR HAVE A DESPERATE NEED TO REPLACE YOUR CHILLER PLANT WITHIN THE NEXT YEAR OR TWO, YOU CAN GET MONEY TO DO THAT, YOU CAN INCLUDE THAT IN THE UESC OR ESPC AND APPLY THOSE FUNDS TO THE PROJECT TO HELP MAKE THAT OVERALL WORK FINANCIALLY OR REDUCE THE TERM OF THE CONTRACT. JEFF, NEXT SLIDE. WHEN IT COMES TO OTHER FUNDING, CAPITAL CONTRIBUTIONS, THIS IS ALLOWABLE BY STATUTE, TO COMBINE APPROPRIATIONS IN FINANCING ENCOURAGED THROUGH EXECUTIVE ORDERS, COMBINED WITH FINANCES, HELPS SHORTEN THE TERM OF THE CONTRACT AND HELPS FUND ECMs THAT HAVE LONG PAYBACK TERMS AS WELL AND MAKES SURE THEY ARE INCLUDED PARTICULARLY WHEN THEY ARE CRITICAL EQUIPMENT TO YOUR FACILITY. SOME OF THE CAPITAL CONTRIBUTIONS THAT COULD BE INCLUDED AGENCY APPROPRIATIONS, THERE'S GRANT PROGRAMS LIKE THE FEMP AFFECT OR STATE GRANTS, THERE'S ERCIP, REBATES THROUGH THE UTILITY BUT THERE CAN BE OTHERS AS WELL. AND RENEWABLE ENERGY CREDITS, SWAPS, SALES, SALES GENERALLY THROUGH SWAPS. NEXT SLIDE. THIS STARTS WITH PHASE 1 INTERNALLY WITH ACQUISITION PLANNING WHERE YOU'RE DETERMINING WHAT YOUR INITIAL SCOPE IS GOING TO BE OR WHAT YOU NEED TO ACCOMPLISH WITH THAT PROJECT. PHASE 2 YOU NOTIFY EITHER ESCOs OR UTILITIES THAT YOU ARE INTERESTED IN A PROJECT AND THE OVERALL IDEA BEHIND THE OPPORTUNITYING SELECT THE CONTRACTOR, MAKE A GO/NO GO DECISION, IF THE SCOPE MEETS YOUR NEEDS AND IS FINANCEABLE YOU MIGHT GO INTO PHASE 3 WHICH IS THE INVESTMENT GRADE AUDIT THAT LEADS TO PROPOSAL AND TASK ORDER AWARD. IN PHASE 4, THE ECMs AND PROJECT UNDERGOES FINAL DESIGN AND IMPLEMENT COMMISSIONED. NEXT SLIDE. AND HERE THE IDEA BEHIND PROJECT SUCCESS IS SUSTAINING THAT LONG-TERM SAVINGS AND SUSTAINING THE LONG-TERM PERFORMANCE OF THE ECMs INSTALLED HERE. AND THAT GENERALLY GETS DONE THROUGH STRONG PERFORMANCE ASSURANCE PLANS OR MEASUREMENT AND VERIFICATION PLANS, AND THE APPLICATION OF THOSE THROUGHOUT THE TERM OF THE CONTRACT, RECOMMISSIONING OR ONGOING COMMISSIONING ARE OTHER APPROACHES THAT HELP THIS AS WELL. OPERATION AND MAINTENANCE, I CAN'T EMPHASIZE STRONGLY ENOUGH HOW IMPORTANT OPERATION AND MAINTENANCE IS. THIS IS NOT AN INSTALL THE PROJECT AND THEN FORGET ABOUT IT TYPE OF APPROACH. ONGOING SUSTAINED PERFORMANCE COMES WITH PROPER OPERATION AND MAINTENANCE, AND REPORTING AND DOCUMENTS RESULTS, IT'S AN ONGOING PROCESS WHERE THE AGENCY, ESCO AND UTILITY NEED TO STAY ENGAGED THROUGHOUT THE PERFORMANCE PERIOD. NEXT SLIDE. AND HOW THIS RELATES TO DECARBONIZATION, WHEN IT COMES TO -- THERE'S NOT A ONE-SIZE-FITS-ALL APPROACH, THERE ARE NOT A LIST OF ECMs THAT WILL NECESSARILY APPLY TO EACH SITE TO HELP YOU DECARBONIZE. IT REALLY DEPENDS ON WHAT YOU'RE DOING AT YOUR SITE CURRENTLY, YOUR MISSION AND YOUR ENERGY USE, ENERGY USING EQUIPMENT, AND YOUR CURRENT UTILITIES GENERATION MIX. IT WILL START WITH ENERGY EFFICIENCY AND DEEP ENERGY EFFICIENCY, AND THEN REDUCING THE LOADS AT THE SITE. AND THEN JUST KEEPING IN MIND WHEN YOU ARE REPLACING EQUIPMENT, TRY TO AVOID UPGRADING, LET'S SAY A NATURAL GAS BOILER LOCKING IN FOSSIL FUEL USE TO THE EXTENT POSSIBLE. STEP TWO ELECTRIFICATION. STEP THREE, LOOKING FOR ON-SITE CARBON-FREE ENERGY GENERATION AND STORAGE OPPORTUNITIES LIKE ON-SITE RENEWABLE ENERGY. STEPS 2 AND 3 MIGHT GO HAND IN HAND, NOT CHRONOLOGICAL, IT DEPENDS ON THE SITUATION AT YOUR SITE AND OPPORTUNITIES THAT ARE THERE AND THE CURRENT ENERGY RATES YOU'RE PAYING. A COUPLE PROCUREMENT OPTIONS, THESE ARE TYPES OF PERFORMANCE CONTRACTS AS WELL, THE LINKS HERE, PURCHASE AGREEMENT AND ENERGY SALES AGREEMENT ARE LIVE AND TAKE YOU TO MORE INFORMATION. BUT THEY ARE SIMILAR IN THAT WITH THE PPA, A DEVELOPER WILL INSTALL, OWN, OPERATE AND MAINTAIN THAT PROJECT THROUGHOUT THE CONTRACT TERM AND THE AGENCY WILL PURCHASE THE ELECTRICITY. CIVILIAN AGENCIES MAY NOT HAVE AS MANY LONG-TERM CONTRACT OPTIONS AS DoD AGENCIES HAVE, YOU MAY BE LIMITED TO TEN YEARS ON YOUR CONTRACT TERM HERE. IT IS A STANDALONE PROJECT, WHERE ESPC ENERGY SALES AGREEMENTS THAT'S A SIMILAR APPROACH BUT THIS IS INSTALLED UNDER AN ESPC PROJECT USING LONGER-TERM AUTHORITY STILL PRIVATELY OWNED, AND BEING PRIVATELY OWNED, THE ESCO CAN CAPTURE TAX INCENTIVES TO REDUCE THE PRICE, THE AGENCY PURCHASES THAT ELECTRICITY PRODUCED AT LOWER RATE THAN WHAT CURRENT UTILITY RATE IS, THERE IS HOW YOU GET GUARANTEED SAVINGS, CAN BE BUNDLED WITH OTHER SAVINGS AS WELL. NEXT SLIDE. GENERALLY SUMMING UP PERFORMANCE CONTRACTING AS APPLIED TO DECARBONIZATION DOES PROVIDE A LOT OF TECHNICAL TOOLS. THE EFFICIENCY AUDITS AND ECMs AND REALLY WHAT WE LIKE TO SAY WHEN YOU'RE -- YOU'RE NOT ISSUING AN RFP FOR CHILLER PLANT REPLACEMENT LIKE YOU MIGHT BE USED TO IN THE PAST. WHAT YOU'RE REALLY DOING IS SOLICITING EXPERTISE FROM THE UTILITY COMPANY OR TEAM THEY PUT TOGETHER TO SERVICE ACADEMY TO HELP YOU DEVELOP SOLUTIONS, WHETHER LOAD REDUCTION, DEEP ENERGY RETROFITS, ELECTRIFICATION AND HOW THAT MIGHT APPLY OR LOAD SHIFTING AND DEMAND RESPONSE OR ENERGY OPPORTUNITIES, COMES WITH M AND V ASLEURNS TO MAINTAIN SAVINGS OVER THE LONG TERM. AGAIN YOU HAVE ABILITY TO BUNDLE ECMs, SO LONGER-TERM PAYBACK ECMs CAN SHORTER PAYBACK TERMS TO MAKE A COST EFFECTIVE PROJECT AND COMBINE CAPITAL CONTRIBUTIONS, NOT A PANACEA OR SINGLE ANSWER BUT A TOOL THAT YOU HAVE IN THE TOOLBOX TO HELP YOU GET DOWN THE PATH AND REDUCE CARBON EMISSIONS. THIS IS ONE EXAMPLE WE WON'T GO THROUGH IN DETAIL. THIS WAS A BUNDLE OF A RANGE OF ENERGY CONSERVATION MEASURES AS YOU CAN SEE FROM THE LAST BULLET UNDER QUICK FACTS, IT IS ACHIEVING OVER 3,000 METRIC TONS PER YEAR OF GREENHOUSE GAS REDUCTION, VERY EFFECTIVE IN ENERGY SAVINGS AND COST SAVINGS BUT GREENHOUSE GAS REDUCTION AS WELL. AND SO LOTS OF RESOURCES ON THE FEMP WEBSITE. THERE'S THE UESC UTILITY PROGRAM WEB PAGE, ESPC WEB PAGE HERE THAT HAS A LOT OF CASE STUDIES ON-DEMAND WEBINARS, SCREENING TOOLS AND VARIOUS GUIDANCE. THERE'S A LOT OF FEMP GUIDANCE TOOLS ON THESE PAGES. I ENCOURAGE YOU TO HAVE A LOOK AND CERTAINLY CONTACT FEMP. ON THE NEXT SLIDE WE CAN SEE HOW TO DO THAT. THERE ARE FEDERAL PROJECT EXECUTIVES WHICH I'LL TALK ABOUT IN A MOMENT. A VARIETY OF TECHNICAL ASSISTANCE, FEMP HAS ACCESS TO ALL OF THEIR DOE NATIONAL LABS FOR TECHNICAL ASSISTANCE, WE PUT TOGETHER TAILORED TRAINING FOR SPECIFIC AGENCIES AND THERE'S A WIDE VARIETY OF TRAINING THAT IS OUT THERE ON THE FEMP WEBSITE SO YOU CAN HAVE A LOOK AT THAT AS WELL. THE REQUEST PORTAL HAS BEEN UPDATED. THERE'S A DROPDOWN MENU. THIS IS THE NEW LOOK OF THE PORTAL. THERE'S A DROPDOWN MENU THAT GIVES YOU VARIOUS TOPIC AREAS THAT YOU CAN SELECT ON, AND YOUR QUESTION WILL GET TO THE RIGHT PERSON WHO WILL GET BACK TO YOU NORMALLY WITHIN A FEW DAYS. NEXT SLIDE. FINALLY, GETTING STARTED HERE, TAKING THE FIRST STEP, THERE ARE FEDERAL PROJECT EXECUTIVES, YOU CAN SEE HERE THEIR CONTACT INFORMATION, EVEN THEIR PHOTOS. BASED ON WHAT REGION YOUR AGENCY IS CURRENTLY LOCATED IN, YOU CAN REACH OUT TO ANY OF THESE GUYS, AND THEY CAN HELP YOU GET STARTED WITH A PERFORMANCE CONTRACT OR JUST ANSWER YOUR QUESTIONS ABOUT GENERAL FEMP TECHNICAL ASSISTANCE OR POINT YOU IN THE RIGHT DIRECTION, WHERE TO GET SOME OF THOSE QUESTIONS ANSWERED. WITH THAT I THINK THAT BRINGS US TO THE Q&A STEP. AM I RIGHT, JEFF? >> YEAH. >> IF THERE ARE ANY QUESTIONS, WE'VE GOT FIVE OR SIX MINUTES LEFT HERE. >> ALL RIGHT. THERE IS QUESTIONS. THERE'S A QUESTION IN THE CHAT BOX. WOULD YOU LIKE ME TO READ IT OR DO YOU WANT TO HANDLE THAT? EITHER WAY. >> YEAH, I SEE THAT. I'LL JUST READ THAT. THIS IS A QUESTION FROM THE NATIONAL PARK SERVICE, AND THE PERSON HAS ASKED SEVERAL TIMES ABOUT USING AN ESPC, BUT NO ONE IN PARK SERVICE HEADQUARTERS WANTS TO DO THE FINANCING PART, IS THIS NORMAL? I GUESS, YOU KNOW, THAT'S -- I WOULD ENCOURAGE YOU TO REACH OUT TO US THROUGH THE FEMP PORTAL TO SET UP A CHAT ONE ON ONE ABOUT THAT. THERE'S VARIOUS WAYS TO ANSWER THAT QUESTION. SOMETIMES AGENCIES ARE NERVOUS ABOUT FINANCING OR FINANCE PROJECTS BECAUSE OF EXPERIENCES THAT THEY HAVE HAD IN THE PAST. AND IN OTHER CASES IT COULD BE JUST UNFAMILIARITY, SO WE COULD CHAT WITH YOU A LITTLE MORE ONE ON ONE ABOUT YOUR SPECIFIC SITUATION IF THAT'S HELPFUL. >> ANOTHER ONE THAT I SEE THAT POPPED IN, HOW CAN YOU ENSURE THAT ECM SAVINGS ARE REAL, VERIFIABLE, ENFORCEABLE? >> AND THAT'S A GREAT QUESTION. AND WITH BOTH UESC AND ESPC THERE'S A COUPLE THINGS. ONE IS OPEN COMMUNICATION WITH THE CONTRACTOR, THROUGHOUT THE ENTIRE PROCESS IS IMPORTANT. THEY ARE LOOKING TO YOU FOR YOUR NEEDS, WHAT YOUR HEADACHES ARE, AND HOW YOUR EQUIPMENT ACTUALLY OPERATES. THEY CAN ANALYZE RATES, PUT METERS ON BUT NEED TO KNOW HOW IT OPERATES AT YOUR FACILITY AND THEN KNOWING THOSE SAVINGS ARE REAL AND VERIFIABLE ALL COMES DOWN TO THE RIGOR IN THE PERFORMANCE ASSURANCE PLAN OR THE M AND V PLAN, HAVING KNOWLEDGE PEOPLE ON THE SITE REVIEWING AND MAKING SURE THAT THE DATA MAKE SENSE AND WITNESSING AND UNDERSTANDING MEASUREMENTS. THROUGHOUT THIS PROCESS, THERE ARE PROJECT FACILITATORS AVAILABLE REACHING OUT TO FPES TO GET A FACILITATOR ON BOARD WHO IS EXPERIENCED CAN REALLY BE A VALUABLE SECOND SET OF EYES AT A MINIMUM, BUT AT A MAXIMUM ALMOST LIKE YOU'RE REPRESENTATIVE FOR YOUR FACILITY TO HELP MAKE SURE YOU'RE GETTING THE BEST ANSWERS THERE. I LIKE THE QUESTION, THINKING ABOUT BALANCING TRADEOFFS BETWEEN DECARBONIZATION AND RESILIENCY FOR ESPC AND UESC SOLUTIONS. AND I WOULD SAY IT COMES DOWN TO COST. FOR CERTAIN AGENCIES, USING RESILIENCE EXAMPLE, WHERE RESILIENCE IS THE MOST IMPORTANT THING TO THEM, BECAUSE OF LOCALIZED THREATS OR CONCERNS, THEY HAVE PROVIDED CAPITAL CONTRIBUTIONS AND MADE SURE THERE'S ADDITIONAL DOLLARS FLOWING IN, THE SAME FOR DECARBONIZATION AS WELL, SO WHILE YOU MIGHT NOT BE ABLE TO USE A PERFORMANCE CONTRACT TO COMPLETELY ELECTRIFY YOUR FACILITY, THERE MIGHT BE HYBRID ANSWERS LIKE HEAT RECOVERY CHILLERS OR CAPTURING WASTE HEAT RATHER THAN INSTALLING ELECTRIC BOILERS BECAUSE THERE WILL BE COST IMPLICATIONS FOR SURE. SO-- IT'S REALLY A CASE-BY-CASE BASIS THERE UNFORTUNATELY, YEAH. >> I DON'T KNOW IF YOU WANT TO ADDRESS THAT LAST QUESTION TOO. >> OH, YEAH, THE QUESTION ABOUT ENERGY SALES AGREEMENTS ARE QUITE RARE, WHY DO YOU THINK THAT IS? I THINK IT'S FOR TWO REASONS. ONE, WE HAVE LOOKED AT ENERGY SALES AGREEMENTS RECENTLY AT SEVERAL FACILITIES, THAT HAVE VERY, VERY LOW ELECTRIC RATES, AND JUST AN EXAMPLE, A RECENT EXAMPLE OFF THE TOP OF MY HEAD, SLIGHTLY OVER FOUR CENT ELECTRICITY, BECAUSE THE COST SAVINGS, THE GUARANTEED SAVINGS FOR THOSE ESAs NEED TO COME IN AT LOWER THAN YOUR CURRENT UTILITY RATE, IT'S VERY HARD TO FINANCE A PV SYSTEM, FOR EXAMPLE, OR PV AND BATTERY SYSTEM FOR LESS THAN FOUR CENT KILOWATT HOUR. LOW RATES AT FEDERAL FACILITIES TO POTENTIALLY WE HAVEN'T DONE A GOOD JOB OF GETTING THE WORD OUT THERE OR ANALYZING THE OPPORTUNITIES, BUT CERTAINLY FOR AREAS THAT HAVE HIGHER UTILITY RATES, EVEN HIGHER DEMAND RATES, BATTERIES ARE SOMETHING THAT CAN BE INSTALLED UNDER AN ENERGY SALES AGREEMENT SO THAT'S SOMETHING WE WOULD BE HAPPY TO TALK MORE ABOUT AS WELL IF YOU HAVE GOT A PARTICULAR OPPORTUNITY YOU'RE LOOKING AT. >> OKAY. GREAT. WELL, THANK YOU SO MUCH, PHIL AND JEFF. OF COURSE WE ALL KNOW PERFORMANCE CONTRACTING IS -- CAN BE A HUGE BENEFIT TO ALL OF US TO GETTING -- TO REACHING OUR GOALS HERE. NICKS WE HAVE NICHOLE HANUS AT THE DOE LAWRENCE BERKELEY NATIONAL LABORATORY AND A CO-LEAD OF THE CENTER OF EXPERTISE FOR ENERGY EFFICIENCY AND DATA CENTERS. WE ALSO HAVE ALEX NEWKIRK, RESEARCH ASSOCIATE, BUILDING TECHNOLOGY AND URBAN SYSTEMS DIVISION, DOE LAWRENCE BERKELEY NATIONAL LAB. >> CAN YOU SEE MY SCREEN? >> YES. >> THANK YOU FOR PRONOUNCING NIGH LAST NAME CORRECTLY. NOT MANY -- WELL, NO ONE DOES. WE'RE TWO RESEARCHERS IN THE CENTER, I'M NICHOLE HANUS, CO-PRESENTER IS ALEX NEWKIRK HELPING ME ANSWER QUESTIONS, I'LL LEAD MOST OF THE SLIDE PRESENTATION. WE'LL DISCUSS THE NON-TECHNICAL NON-ECONOMIC REASONS DATA CENTERS MAY STRUGGLE TO ADOPT DECARBONIZATION TECHNOLOGIES, AND I THINK AS I'VE SEEN IN PREVIOUS PRESENTATIONS, ENERGY EFFICIENCY IS KIND OF OUR MAIN FOCUS IN OUR CENTER, BUT DECREASING ENERGY CONSUMPTION IS GOING TO MITIGATE CARBON EMISSIONS SO WE'LL THINK ABOUT THESE INTERCHANGEABLY THROUGHOUT THE PRESENTATION. I'M TALKING ABOUT NON-ENGINEERING, NON-ECONOMIC SOLUTIONS TO MITIGATING ENERGY EFFICIENCY ADOPTION, I TALKING ABOUT WHAT BEHAVIORAL ECONOMISTS REFER TO AS RISK AVERSION AND INCONSISTENT TIME COUNTING. MOREOVER, ECONOMIC SOCIOLOGISTS POSIT THAT ALL ECONOMIC ACTION IS EMBEDDED IN SOCIAL RELATIONS, SO THEY FIND THAT CONSUMERS SOMETIMES WILL ANCHOR PREFERENCES AND TAKE CUES FROM PEERS, WHICH IS PROBABLY NOT SURPRISING FOR MOST OF US ON THIS CALL. AND FROM SOCIAL PSYCHOLOGY WE LEARN SOCIAL IDENTITY MATTERS, SO POLITICAL IDOLLOLOGY CAN DISCOUNT CLIMATE CHANGE, ADAPTING BEHAVIORS IN LINE WITH THE THINKING. ENGINEERING SOLUTIONS ARE IMPORTANT. AND MONEY TALKS. OTHER FACTORS ARE ALSO IMPORTANT. OKAY. IN GENERAL DECISION MAKING IS STUDIED EITHER AT THE INDIVIDUAL OR GROUP LEVELS, SO WE THINK OF ORGANIZATIONS HERE, TO UNDERSTAND HOW INDIVIDUAL ACTORS MIGHT BE MOTIVATED TO ADOPT ENERGY EFFICIENCY WE CAN TURN TO PSYCHOLOGICAL MODELS OF DECISION MAKING, SO THINGS LIKE THE THEORY OF PLANNED BEHAVIOR, TPB, BELIEFS SUCH AS SELF-EFFICACY, SUBJECTIVE NORMS, DETERMINE INTENTION TO ACCOUNT -- TO ACT, ONCE YOU FOCUS ON UNDERSTANDING ATTITUDES, ALTERNATIVELY SOME POLICIES AIM TO CLOSE THE VALUE ACTION GAP BY DISSEMINATING MORE INFORMATION ON THESE DECISION-MAKING AUDIENCES. HOWEVER, WE KNOW THAT INFORMATION CAN BE FRAMED FOR CERTAIN AUDIENCES AND THAT CAN INFLUENCE HOW IT IS PROCESSED. SO THIS IS STUDIED IN THE THEORY OF MOTIVATING REASONING. IN THESE FRAMEWORKS THE AUDIENCE IS REALLY JUST INDIVIDUAL ACTORS AND MECHANISMS WITHIN EACH THEORY ARE REALLY COMPLICATED WHEN THE AUDIENCE IS COMPRISED OF TWO OR MORE ACTORS WORKING TOGETHER. SO, BRING IN THEORIES AROUND ORGANIZATIONS, AND ORGANIZATIONAL BEHAVIOR. MODELS FOR ENERGY EFFICIENCY INVESTMENTS TEND TO FALL INTO TWO CATEGORIES AS WELL, THESE ARE CAPITAL INVESTMENT THEORY MODELS AND ORGANIZATIONAL BEHAVIORAL SCIENCE THEORIES. FOCUS ON CAPITAL INVESTMENT THEORY IS BUDGETING TOOLS THAT WE'RE ALL FAMILIAR WITH, SO RETURN ON INVESTMENT, SIMPLE PAYBACK, YOU ABOUT FAILS TO ADDRESS STRATEGIC NATURE OF ENERGY INVESTMENTS OFTEN COMPRISED OF SEVERAL STEPS AND THEY DON'T EXPLAIN DIFFERENCES IN BEHAVIOR BETWEEN SIMILAR FIRMS THAT MIGHT BE OPERATING BUT BEHAVING DIFFERENTLY IN TERMS OF ENERGY EFFICIENCY. RESEARCHERS IN THE ORGANIZATIONAL BEHAVIOR THEORY TRY TO ADDRESS GAPS BY CONSIDERING FACTORS THAT PLAY INTO INVESTMENT DECISIONS, THAT EXIST WITHIN THESE ORGANIZATIONS SUCH AS POWER OF RELATIONSHIPS BETWEEN C-SUITE OWNERS AND STAFF AND CULTURE OF ENERGY PHYSICIANER -- EFFICIENCY. DRAWING ON THIS LIT LITERATURE, THE CENTER IS PURSUING A TWO-PHASED PROGRAM, AND WE'RE AIMING TO IDENTIFY KEY ORGANIZATIONAL AND BEHAVIORAL BARRIERS, ENERGY SUFFICIENCY INVESTMENTS AND DATA CENTERS. TODAY I'LL PRESENT ON PHASE 1, WE VIEWED 87 DOCUMENTS IN THE REVIEW SPANNING FROM ACADEMIC PUBLICATIONS, PROFESSIONAL ORGANIZATIONS, TO TRACK DOWN WHAT ARE THE MAIN COMPONENTS TO DECISION MAKING AND ENERGY EFFICIENCY. AND WHICH OF THESE COMPONENTS ARE UNDERSTUDIED IN EXISTING LITERATURE. SO, WE USE THIS DIAGRAM OF ENERGY EFFICIENCY DECISION MAKING ADOPTED FROM MY PREVIOUS RESEARCH IN COMMERCIAL BUILDING SPECIFICALLY. THIS WAS RESEARCH I DID IN GRAD SCHOOL, NOT FOCUSING ON DATA CENTERS, JUST COMMERCIAL BUILDINGS. IN THIS LIT REVIEW WE ORGANIZED INTO FIVE COMPONENTS OF THE DECISION, LOOK AT EXTERNAL CONTEXT, ECONOMICS, TECHNOLOGY AVAILABLE, BEHAVIORAL DECISION SCIENCES, OR PSYCHOLOGY, AND, AGAIN, ORGANIZATION. TODAY WE'LL FOCUS THE DISCUSSION ON PRELIMINARY FINDINGS RELATED TO THE PSYCHOLOGICAL AND ORGANIZATIONAL ASPECTS OF ENERGY SUFFICIENCY, AND I'LL NOTE THESE TWO CATEGORIES APPEAR TO BE MINIMALLY EXPLORED IN THE LITERATURE, AND SO NOT ONLY ARE WE GOING TO COVER THIS IN THE RESEARCH PRESENTATION, ALSO AIMING TO FOCUS ON PHASE 2 FOLLOW-UP INTERVIEW STUDY. THIS PRESENTS A HIGH LEVEL DECISION. HERE ORGANIZATION REFERS TO INFLUENCES RELATED TO ORGANIZATION STRUCTURE AND DATA CENTER TYPE. SO CORPORATE SOCIAL RESPONSIBILITY HAVING A DEDICATED SUSTAINABILITY TEAM AND TRAINING YOUR DATA CENTER OPERATORS ARE ALL PART OF YOUR ORGANIZATIONAL BEHAVIOR OR SETUP. AND IN THIS RESEARCH RECALLING PSYCHOLOGY BASICALLY THESE ARE THE INFLUENCES FROM DECISION MAKERS' OWN SET OF DECISION MAKERS AND HUERISTICS, PERCEIVED RISK AND UNCERTAINTY AROUND A NEW TECHNOLOGY, AND MAYBE HOW THEY DISCOUNT TIME IN THEIR OWN ECONOMIC CALCULATIONS. SO IN OUR RESEARCH WE TAGGED EACH OF THE 87 DOCUMENTS WITH EXTERNAL CONTEXT, ECONOMICS, TECHNOLOGY, PSYCHOLOGY, ORGANIZATION, FIVE COMPONENTS WE DISPLAYED IN THE PREVIOUS GRAPHIC. A SINGLE RESOURCE COULD HAVE MULTIPLE TAGS, THIS DEMONSTRATES THE TOTAL COUNT OF TAGS OR COMBINATIONS FOR EACH OF THE RESOURCES IN OUR LIBRARY. SO YOU CAN SEE THAT TECHNOLOGY WAS COVERED HEAVILY IN OUR LITERATURE REVIEW. BASICALLY MORE THAN TWO TIMES THE TAG PSYCHOLOGY AND ORGANIZATION, JOINT TAG. FURTHERMORE WE FIND THAT INDIVIDUAL PSYCHOLOGY RELATED TO ENERGY EFFICIENCY AND/OR DATA CENTERS WAS ONLY COVERED A COUPLE TIMES. THEREFORE WE'RE GOING TO FOCUS ON ORGANIZATIONAL AND PSYCHOLOGICAL DRIVERS. WE'LL ALSO FOCUS ON EXPANDING OUR KNOWLEDGE OF THESE COMPONENTS IN PHASE 2. SO LITERATURE REVIEW EXPANDED BEYOND DATA CENTERS INTO SIMILAR FIELDS. SO THESE ORGANIZATIONAL DRIVERS AND BARRIERS CAN BE INTERPRETED WITH A BROADER CONTEXT ON THE SLIDE. ORGANIZATIONAL DRIVERS INCLUDE USING SYSTEMS DESIGN APPROACH TO DATA CENTER FACILITY MAINTENANCE AND OPERATIONS. IT INCLUDES ALIGNING VALUES AT THE C-SUITE LEVEL WITH OPERATORS. FINALLY ORGANIZATIONAL DRIVERS COULD BE SETTING AND MEETING CORPORATE SOCIAL RESPONSIBILITY GOALS, DEMONSTRATING EXCELLENCE OF THE FIRM. ORGANIZATIONAL BARRIERS INCLUDE LACKING A CHAMPION OR HAVING THAT CHAMPION MOVE ON OR RETIRE FROM THE ORGANIZATION, AND EMPHASIZING CAN IMPEDE, SILOING DECISION MAKING AND PRIORITIZATION OF DIFFERENT GOALS AND OVERALL LOW LEVEL OF SKILLED AND INTERDISCIPLINARY WORK FORCE CAN FIELD INEFFICIENT DATA CENTER OPERATION. THIS QUOTE ABOUT HOW DATA CENTER OPERATORS AND OWNERS EMPHASIZES HOW UPTIME IS IMPORTANT TO MEET BOTTOM LINES. THE EXTREME IMPORTANCE PLACED ON UPTIME, RELIABILITY, EQUIPMENT REDUNDANCY RESULTS IN DATA CENTER STAFF BEING AVERSE TO IMPLEMENTING NEW TECHNOLOGIES OR UPGRADES TO THEIR FACILITIES. AS ONE INTERVIEW PARTICIPANT DESCRIBED, NO I.T. PEOPLE GET FIRED FOR NOT SAVING MONEY, BUT THEY CAN GET FIRED IF THEIR SYSTEMS GO DOWN. SO, I'M GOING TO NOTE I WILL BE SHARING MY SLIDES, SO THERE'S A BIBLIOGRAPHY WITH THE REFERENCES AT THE END OF THE DECK. HOWEVER, LIKE I SAID, WE'RE WORKING ON THIS LIT REVIEW AND PUBLISHING IT, HOPEFULLY IN THE ENERGY EFFICIENCY JOURNAL. SO NEXT I WILL DISCUSS SOME BEHAVIORAL DRIVERS AND BARRIERS OR PSYCHOLOGICAL DRIVERS AND BARRIERS THAT WE'RE FINDING IN THE LITERATURE. AS I MENTIONED AT THE BEGINNING OF THE TALK, IDEOLOGIES CAN PLAY A MAJOR ROLE, AS CAN SOCIAL PRESSURE. INCREASING INDIVIDUAL CAPACITY TO UNDERSTAND AND IMPLEMENT TECHNOLOGIES, ON THE FLIP SIDE BEHAVIORAL BARRIERS COULD BE LOW, MAYBE THEY AREN'T THINKING OR KNOW ABOUT IT. AS WELL AS TECHNICAL RISK AVERSION WHERE AN INDIVIDUAL COULD OVERWEIGHT A POTENTIAL NEGATIVE CONSEQUENCE OF IMPLEMENTING A NEW TECHNOLOGY. ADDITIONALLY LACK OF KNOWLEDGE AND BOUNDED RATIONALITY REFER TO INDIVIDUAL'S INABILITY TO COMPREHEND THE COST OF FAILURE. THUS COMPROMISING VALIDITY OF THEIR OWN BENEFIT COST ANALYSIS IF THEY WERE TO PERFORM ONE. FINALLY TIME DISCOUNTING, TEMPORAL DISCOUNTING MAKES THIS REWARD IN THE FUTURE LOWER THAN REAL VALUE. PEOPLE PREFER GETTING IMMEDIATE REWARD RATHER THAN LARGER ONE IN THE FUTURE. SO THESE QUOTES RELY -- SORRY, RELAY ASPECTS OF INDIVIDUAL SALIENTS, THIS IS WORK PRESENTED BY KLEMICK, ET AL. HERE ARE THREE QUOTES ABOUT KIND OF ENERGY EFFICIENCY BEING TOP OF MIND FOR INDIVIDUALS. AN IMPORTANT STREAM OF INFORMATION ABOUT WHAT IS NEW AND UPCOMING IN THE INDUSTRY TECHNOLOGY COMES FROM OUR VENDOR PARTNERS AND OEMs. I HAVE A BOOK CASE OF MAGAZINES I DON'T HAVE TIME TO READ. WHILE INFORMATION IS RELIABLE, DATA ABOUT THE PERFORMANCE AND ENERGY USE OF I.T. EQUIPMENT IS KIND OF WORTHLESS SINCE DATA CENTERS ARE INDIVIDUALIZED FACILITIES. IN SUMMARY TRUSTED INFORMATION SOURCES ARE IMPORTANT FOR BUILDING SALIENCE, ONE OF THE THINGS YOU SHOULD ALSO CONSIDER IS THE TIME AVAILABILITY OF THESE INDIVIDUALS TO INCREASE AWARENESS AND LEARN ABOUT TECHNOLOGIES, AND FINALLY IT'S NOT JUST ABOUT THE MESSENGER BUT ABOUT THE MESSAGE AND WHETHER OR NOT I.T. STAFF WILL BELIEVE THAT THIS NEW TECHNOLOGY WILL ACTUALLY WORK IN THEIR UNIQUE FACILITY. SO NEXT I'M GOING TO PIVOT TO SOME PRELIMINARY SOLUTIONS THAT WE'RE SUGGESTING IN RELATION TO THESE PSYCHOLOGICAL AND ORGANIZATIONAL BARRIERS. SO THESE ARE GENERAL SOLUTIONS FOR OVERCOMING ORGANIZATIONAL BARRIERS TO ENERGY EFFICIENCY INVESTMENTS, COULD BE REASSESSED WITH A SPECIFIC TECHNOLOGY IN MIND. ORGANIZATIONS SHOULD AIM TO SOCIALIZE ACROSS ACTORS INVOLVED. I.T., MAINTENANCE, C-SUITE EXECS, EVERYONE THAT FUNDS THE INVESTMENTS OR IMPLEMENTS. CHANGE AGENTS AND ENERGY SUFFICIENCY CHAMPIONS SHOULD LEAD THE CHARGE AND ESTABLISH PRIORITIES AND GOALS. AGAIN, THIS IS SETTING THE CULTURE AND TONE IN THE ORGANIZATION. AND ULTIMATELY ENERGY EFFICIENCY SHOULD BE CHAMPIONED AT THE TOP AND THEN I.T. AND MAINTENANCE STAFF SHOULD BE ENCOURAGED TO EDUCATE THEMSELVES ON BEST PRACTICES AND CUTTING EDGE TECHNOLOGIES. PSYCHOLOGICAL OR BEHAVIORAL SOLUTIONS ARE GOING TO TARGET OVERCOMING BARRIERS AT THE INDIVIDUAL LEVEL. SO HERE WE ILLUSTRATE A FEW STEPS TO TAKE IN ATTEMPTING TO EDUCATE C C-SUITE MEMBERS AND STAFF. SO THIS INCLUDES HOSTING IN-HOUSE DEMONSTRATIONS FROM DIFFERENT VENDORS AND OEMs, HOW BULK PROCUREMENT PROCESS COULD MITIGATE TIME DISCOUNTING ISSUES WITH OVERCOMING CAP X EXPENDITURES. LITERATURE DOES PROVIDE SOME SOLUTIONS TO THESE BARRIERS WE BELIEVE THERE'S STILL A LOT TO LEARN ABOUT HOW TO OVERCOME THEM. AND PERHAPS IDENTIFYING NEW BEHAVIORAL ORGANIZATIONAL BARRIERS THAT AREN'T CURRENTLY WRITTEN UP IN THE LITERATURE. WE BELIEVE THESE SOLUTIONS ARE CONDITIONAL ON THE PROPOSED NEW TECHNOLOGY, SO ARE WE TALKING ABOUT ONE-TO-ONE RETROFITS, OR REBUILDING ENTIRE DATA CENTERS, BASICALLY WE'RE THINKING THE BARRIERS AND MOTIVATIONS ARE GOING TO CHANGE BASED ON THE RISK AND UNCERTAINTY AROUND THE NEW TECHNOLOGY COMPONENTS. SO CENTER OF EXPERTISE PLANS TO ANSWER SOME QUESTIONS IN THE SECOND PHASE OF RESEARCH, INTERVIEW STUDY, PLANNING TO TALK WITH DATA CENTER OWNERS AND OPERATORS AS WELL AS WHAT WE'RE CALLING ENERGY EFFICIENCY EXPERTS, FROM ACADEMICS TO OTHER HAVEN'TORS -- INVENTORS OR DEVELOPERS. THE INTERVIEW PROTOCOLS WILL BE BASED ON OUR THEORY OF HIERARCHY OF INFLUENCES AND DECISION MAKING IN DATA CENTERS WHICH IS BASED ON OUR FINDINGS FROM LITERATURE. SO THIS IS THE FRAMEWORK THAT WE'VE DEVELOPED, WHEREBY INERTIA TO CHANGE INCREASES AS YOU GO FROM BASELINE CAPACITY OF THE EXISTING FACILITY UP TO KIND OF THE EXTERNAL CONTEXT AND HERE WE'RE THINKING REGULATORY ENVIRONMENT, ECONOMIC CONDITIONS, SURROUNDING THE ORGANIZATION AND IN THE MIDDLE BASICALLY WE HAVE THE IN BETWEEN, BUSINESS MODEL, CORPORATE SOCIAL RESPONSIBILITY, HAVING DEDICATE THE SUSTAINABILITY TEAM, TRAINING YOUR DATA CENTERS OPERATORS ARE PART OF YOUR SETUP. AND IN THIS RESEARCH WE'RE CALLING PSYCHOLOGY, BASICALLY THESE ARE THE INFLUENCES FROM THE DECISION MAKERS OWN SET OF INDIVIDUAL DIFFERENCES AND DECISION MAKING HUERISTICS, ATTITUDES PERCEIVED RISK AND HOW HE THEY DISCOUNT TIME. WE TAGGED EACH OF THE 87 DOCUMENTS, WITH EXTERNAL CONTEXT, ECONOMICS, TECHNOLOGIES, PSYCHOLOGY, ORGANIZATION, FIVE COMPONENTS WE DISPLAYED IN THE PREVIOUS GRAPHIC. A SINGLE RESOURCE COULD HAVE MULTIPLE TAGS, THIS PLOT DEMONSTRATES COMBINATIONS FOR EACH OF THE RESOURCES. TECHNOLOGY WAS COVERED HEAVILY IN OUR LITERATURE REVIEW. >> LET'S SEE IF WE GET ANY QUESTIONS COME IN. HAVE YOU BEGUN. >> WE'VE PUT TOGETHER A SEMI STRUCTURED INTERVIEW PROTOCOL AND WE PUT TOGETHER OUR INTENDED SAMPLE DESIGN, AND ALL OF THE OTHER MATERIALS, WE HAVE TO HAVE REVIEWED WHICH INCLUDE STRUCTURES, THE WAY YOU'RE GOING TO RECRUIT INDIVIDUALS, THE WAY YOU'LL REACH OUT, E-MAIL, THINGS LIKE THAT. WE'RE PRETTY FAR ALONG IN OUR THINKING, AND WE PLAN TO START DOING THE INTERVIEWS THIS SUMMER. WE'LL START RECRUITING IN THE NEXT COUPLE MONTHS. >> IF SOMEONE WERE INTERESTED IN POTENTIALLY BEING A SUBJECT, WE HAVE A CONTACT INFO WE COULD GIVE THEM. >> IS THAT A QUESTION TO ME? >> YES. >> OH, SURE. YEAH, I'LL PROVIDE MY CONTACT INFORMATION. I CAN'T REMEMBER IF THAT'S AT THE TOP OF THE SLIDE OR NOT. >> THE PARTICIPANTS CAN'T SEE OUR CHAT. YOU COULD -- LET'S SEE. IF IT'S NOT IN YOUR PRESENTATION, YOU COULD ADD IT IN AND THEN WE CAN REPOST IT. ALL OF THE PRESENTATIONS THAT HAVE BEEN CLEARED FOR SHARING, THEY ARE NOW POSTED ON THE FED CENTER WEBSITE UNDER OUR 2020 FEDERAL ENVIRONMENTAL SYMPOSIUM PROCEEDINGS. WE CAN MAKE SURE IT'S IN THERE. >> OKAY. CERTAINLY. >> NOW, WE DID HAVE A QUESTION COME IN. DID YOUR RESEARCH IDENTIFY INDIVIDUAL INCENTIVES IN CHANGING BEHAVIORS IN DATA CENTERS? >> SO, BASICALLY ALL OF THE BARRIERS AND INTERVENTIONS LISTED IN THIS TABLE ARE RELATED TO INDIVIDUAL LEVEL INFLUENCES, SO THESE ARE GENERALIZED TO REALLY ALL OF ENERGY EFFICIENCY, NOT JUST DATA CENTER ENERGY EFFICIENCY. BUT, YEAH, THE BARRIERS LISTED HERE ARE ABOUT INDIVIDUAL PSYCHOLOGY, SO SALIENCE MEANING THAT THEY ARE NOT THINKING ABOUT IT, NOT TOP OF MIND, OR THEY ARE NOT AWARE OF IT LIKE THE DIFFERENT TYPES OF ENERGY EFFICIENCY, SEQUENCE OF OPERATION CHANGES ONE CAN MAKE OR COOLING EQUIPMENT THAT IS MORE ENERGY EFFICIENT THAN EXISTING SYSTEMS. TECHNICAL RISK AVERSION, THIS IS OPERATIONALIZED ON THE INDIVIDUAL LEVEL, BUT COULD BE AT DIFFERENT LEVELS AND SO IT COULD BE SOMEONE WHO IS, YOU KNOW, MANAGING THE SERVERS AND DOESN'T WANT TO APPLY NEW COOLING SYSTEM BECAUSE THEY ARE WORRIED IT WILL RESULT IN EQUIPMENT FAILURE, COULD ALSO BE SOMEONE WHO IS WRITING THE CHECKS SO IF THAT'S MORE UP TOWARDS KIND OF FACILITIES MANAGEMENT THEY ARE IN CHARGE OF BUDGET FOR INSTANCE AND NOT AWARE OF NEW TECHNOLOGY OR THE WAY IT COULD IMPROVE OR WORSEN THINGS, MAY NOT BE WILLING TO RELEASE FUNDS FOR IT. THAT'S WRAPPED UP, ALSO LACK OF KNOWLEDGE, BOUNDED RATIONALITY, THE FOLKS WHO ARE IMPLEMENTING THESE INVESTMENTS OR TECHNOLOGIES OR PAYING FOR THEM, IF THEY ARE THE SAME PEOPLE THAT'S ONE WAY TO ATTACK THE PROBLEM AND TALK ABOUT BOUNDED RATIONALITIES, AND LACK OF KNOWLEDGE BUT IF THERE ARE TWO OR THREE SEPARATE PEOPLE WE'RE JUST TALKING ABOUT COMPOUNDING INDIVIDUAL PSYCHOLOGIES THAT ARE GOING TO BE TRICKY TO ADDRESS. >> THE OTHER QUESTION, YOU TOUCHED ON IT. SOMEONE WONDERING IF WE COULD SAY THE SAME HESITATION IN FACILITY MANAGERS ON THE TOPIC OF CLIMATE RESILIENCE, ANY THOUGHTS OR HAVE YOU SEEN ANY RESEARCH ON THIS THAT'S FAMILIAR OR SIMILAR? >> I THINK IT'S USEFUL TO BRING UP, NICHOLE MENTIONED WE EXPANDED APERTURE TO INCLUDE OTHER ENERGY INTENSIVE BUILDINGS, SO THOSE ARE MEDICAL FACILITIES, LABORATORIES, PLACES IN CLEAN ROOMS, SO LIKE A SEMI CONDUCTOR FOUNDRY, THEN THE FOURTH IS DATA CENTERS. AND COMMONALITY TO THAT WORK IS THAT THE VALUE OF EFFICIENCY IS THOUGHT OF AS IN SOME WAY INTENTION WITH THE CORE FUNCTION OF THE BUILDING. SO FOR EXAMPLE AT A HOSPITAL, THE CORE PURPOSE OF THE BUILDING IS TO CURE THE SICK, AND SO YOU'RE NOT GOING TO BE, WELL, WE COULD LOSE RELIABILITY ON THE VENTILATORS, NO, IT'S A CLEAR TRADEOFF BEING MADE. SO WITHIN ENERGY INTENSIVE BUILDINGS WE FOUND THAT EFFICIENCY IS THOUGHT OF THIS WAY ACROSS THE BOARD. RIGHT? IF YOU WORK IN A LABORATORY THE IDEA IS, WELL, EFFICIENCY IS GOOD, BUT AT THE END OF THE DAY THE CORE MISSION HERE IS SCIENCE. AND SO WE'RE GOING TO -- WE'RE NOT GOING TO MAKE A SACRIFICE ON SCIENCE ON BEHALF OF EFFICIENCY. RESILIENCE IS ANOTHER AREA WHERE THAT THOSE PERCEPTIONS ARE INTENTION, RIGHT? THE IDEA IS THERE'S CORE MISSION FOR WHATEVER YOUR FACILITY DOES, AND YOU NEED TO PRESERVE THAT FIRST AND FORECAST MOST. I SUSPECT THAT SAME KIND OF HESITANCY DOES EXIST AROUND RESILIENCE FOR THAT REASON. >> I THINK THAT'S ALL WE HAVE FOR QUESTIONS. THANK YOU, NICHOLE AND ALEX. VERY INTERESTING. IT'S ALWAYS A GOOD IDEA TO BE COGNIZANT OF THE HUMANNALITY OF WHAT WE'RE DOING. THANK YOU FOR THAT PERSPECTIVE. AT THIS TIME WE'RE GOING TO CONTINUE ON WITH NICK GRAVES, AN ENVIRONMENTAL ANALYST FOR THE DOE LAWRENCE LIVERMORE NATIONAL LABORATORY LEADING CALIFORNIA CAP AND TRADE ACTION PLAN FOCUSING ON NATURAL GAS GHG REDUCTION. >> CAN YOU HEAR ME? >> YES. >> I HOPE YOU CAN SEE MY. I'M LOOKING DOWN. I BELIEVE I SHARE MY SCREEN, FOUR MINUTES EARLY, A COLLEAGUE WANTED TO WATCH. SHE CAN COME IN LATER ON. SHE'S ALREADY SEEN. >> SORRY ABOUT THAT. >> WE FIGURED WE WOULD KEEP MOVING ALONG AT THE END OF THE DAY. >> CERTAINLY FINE. I'M AT 1:45. SO I WILL GO AHEAD AND SHARE. ALL RIGHT. ARE Y'ALL SEEING IT? >> YES, WE CAN. THANK YOU. >> OKAY. I SHOULD BE GOING IN PRESENTER MODE. A LITTLE BIT OF LAG. THAT'S TOO MUCH PRESENTER MODE. ARE YOU SEEING PRESENTER SCREEN OR JUST THE SLIDE DECK? >> LOOKS LIKE THE PRESENTER SCREEN. >> OKAY. IS THAT THE RIGHT ONE? I'VE GOT DUAL SCREENS GOING ON. >> LOOKS GOOD TO ME, NICK. >> ALL RIGHT. I'LL GO AHEAD AND RUN WITH IT. ANY OTHER ISSUES, ALL RIGHT. DIANA SAID IT, NOT ME. SO THANK Y'ALL SO MUCH. I'M NICK GRAVES. I'M ENVIRONMENTAL ANALYST TEST LAWRENCE LIVERMORE NATIONAL LAB. A BIT OF SCOPE CREEP ON THIS PRESENTATION, IT'S NOT JUST CAP AND TRADE AND NATURAL GAS FROM OUR BOILERS, IT'S GENERAL GREENHOUSE ACTION PLAN, HEADLINE GRABBER IS CAP AND TRADE THAT COSTS A LOT OF DOLLAR BILLS, A MAIN COMPONENT BUT DISCUSSING OTHER EFFORTS AND HOW WE GOT TO ESTABLISHING THIS WHEN SOMETIMES IN OPERATIONS GREENHOUSE EMISSIONS AREN'T AS PRIORITY AS AIR PERMITTING AND MORE TRADITIONAL COMPLIANCE MEASURES. I WANT TO GIVE EVERYONE HISTORICAL SCHPIEL. SINCE 1962 WE'VE GROWN, WE'RE OPERATED BY LAWRENCE LIVERMORE NATIONAL SECURITY, I'M A GOVERNMENT CONTRACTOR. NOT AN OFFICIAL GOVERNMENT WORKER. AND OUR SITE 200 FACILITY WHAT MOST PEOPLE THINK OF AND FOCUS OF THIS WORK IS ABOUT ONE SQUARE MILE, 521 FACILITIES, ANNUAL BUDGET $2.8 BILLION. WE'VE GOT A LOT OF MONEY, A LOT OF PEOPLE. UNFORTUNATELY THAT GROWTH IN PEOPLE HAS LED TO INCREASED DEMAND ON HEATING AND HVAC SYSTEMS AND IN SOME CASES MORE OPPORTUNITIES FOR LEAKS, AND CONCOMITANT INCREASE IN GREENHOUSE GAS EMISSION. MORE SCIENCE GOING ON, UNFORTUNATELY, MORE BUILDINGS TO HEAT AND COOL AND OPPORTUNITIES FOR GHG. WE HAVE AN EXPERIMENTAL TEST SITE AT SITE 300, 11 SQUARE MILES, THAT IS OUTSIDE THE SCOPE OF OUR GREENHOUSE REDUCTION MEASURE FOR NOW BECAUSE MOST EMISSIONS ARE AT OUR MAIN FACILITY IN LIVERMORE. IT'S A GOOD FOCUS FOR THE SYMPOSIUM TODAY. WE HAVE A NUMBER OF OUR SIGNIFICANT ENVIRONMENTAL ASPECTS, I WILL MAKE EVERY EFFORT TO INCLUDE A DEFINITION OF WHAT ACRONYMS MEAN. THEY SEEM TO REPRODUCE LIKE RABBITS IN ENVIRONMENTAL. GENERALLY FOR OUR ASSESSMENT TO SEE WHERE OUR MAJOR FOCUS SHOULD BE FOR OUR DIFFERENT ENVIRONMENTAL ASPECTS WE USE CORE OF 33, THAT WILL MEAN MORE ON THE NEXT SLIDE. WHAT WE FOUND WAS WE HAD THREE MAJOR VERBS TO APPLY TO A NUMBER OF NOUNS. WE WANTED TO DECREASE GREENHOUSE GAS EMISSIONS, CRITERIA AIR POLLUTANTS, FOSSIL FUEL CONSUMPTION, CONSERVE WATER USE AND REDUCE HAZARDOUS WASTE GENERATION, MATERIALS USE, MUNICIPAL WASTE GENERATION, AND WE DON'T HAVE A VERB FOR ECOLOGICAL RESOURCES CONSERVATION, GENERALLY SPEAKING WANT TO REDUCE USE OF A LOT OF OTHER MATERIALS. I WILL ALSO MENTION LOOKING AT THIS TO ESTABLISH OUR PRIORITIES WE HAVE A CUTOFF SCORE OF 33 TO SEE WHICH ASPECTS WE SHOULD FOCUS ON BUT TO ENSURE WE DON'T SET THE BAR SUPER HIGH WE ALSO SAY WE NEED AT LEAST THREE P2 OPPORTUNITIES, OUR POLLUTION PREVENTION OPPORTUNITIES. >> NICK, WE'RE STILL ON SLIDE 1 ON THE SLIDE DECK. IT'S NOT ADVANCING ON OUR END. >> I'M SO SORRY. I'M TALKING AWAY. I'LL RESHARE. I THINK I SEE WHAT HAPPENED. CLICKED ON THE WRONG THING. ALL RIGHT. HOW'S THAT? ARE YOU SEEING NICE PICTURE OF OUR SITE NOW? >> YES. >> IT'S NOT IN PRESENTER MODE. >> HOW ABOUT NOW? >> YES. >> ALL RIGHT. WELL, UNFORTUNATELY IT IS ALSO ON ANOTHER SCREEN SO GIVE ME ONE MORE SECOND. I.T. ISSUES. ALL RIGHT. ONE SECOND. YOU CAN SEE THE SCREEN. ARE WE ALL GOOD ON THAT NOW? >> YES. >> ALL RIGHT. THANK Y'ALL SO MUCH. NOW THAT YOU CAN HAVE A VISUAL, LAWRENCE LIVERMORE LABS, 1952, 8200 EMPLOYEES, ONE SQUARE MILE, ANNUAL BUDGE IT, SITE 300, THERE'S THE GIST OF WHAT I WAS DISCUSSING. THIS WILL MAKE MORE SENSE. THIS IS THE VERBS AND NOUNS, BASED ON OUR ENVIRONMENTAL MANAGEMENT SYSTEM AND CUTOFF SCORE WILL MAKE MORE SENSE NOW THAT I HAVE GET TO OUR IMPACT SCORING. I STILL WANT TO GO THROUGH MORE ON HOW WE ESSENTIALLY TURNED OUR PRIORITY ASSESSMENTS INTO A NATURAL ACTION PLAN. FOR US WE HAD A SYSTEM OF SLOWDOWN AND FEEDBACK WITH ORGANIZATIONAL MANAGEMENT THAT FLOW DIAGRAM ON SCREEN, I HOPE YOU SEE ON SCREEN, WILL EXPLAIN. GENERALLY SPEAKING ORGANIZATIONAL MANAGEMENT WILL BE INFORMED BASED OFF WHAT WE SEE FROM OUR WORK COMMUNICATED BACK. MOVING FORWARD FROM POSITION OF ORGANIZATIONAL MANAGEMENT IS AWARE OF RISK, ORGANIZATIONAL MANAGEMENT WILL ESTABLISH OBJECTIVES BECAUSE WE NEED ENVIRONMENTAL FUNCTION AREAS, FLOWING TO SPECIFIC ENVIRONMENTAL OBJECTIVES FOR WHAT I DO DAY TO DAY. BECOMING PROGRAM OBJECTIVES, WE CAN TURN FROM GENERAL GOALS INTO SPECIFIC OBJECTIVES AND TASKS. THAT WILL BECOME SORTS OF TASKS WE CAN PLAN AND EXECUTE IN OUR WORK, AND AS WE DO THAT WE CAN COMMUNICATE BACK UP THE CHAIN TO ESTABLISH PROGRAMMATIC RISK AND ENVIRONMENTAL RISKS, ELEVATING DEPENDING ON TYPE OF RISK, CAN BE COMMUNICATED, MAKE HERE IS WAY INTO ISMS AND SPOMC, SAFETY PERFORMANCE OBJECT MEASURES AND CONTROLS. COMMITMENT. IF IT MAKES ITS WAY, IT'S A SIGN IT'S IMPORTANT BECAUSE THAT BECOMES A CONTRACT REQUIREMENT WE HAVE OUR FRIENDS AT DOE. AND TO ENSURE IT GETS DONE PROPERLY ESTABLISHED A FORMAL ACTION PLAN WITH ORGANIZATIONAL MANAGEMENT TO PROVIDE IMPORTANT RESOURCES AND THIS GENERAL FLOW IS HOW WE REACHED OUR DECISION TO DO A GREENHOUSE GAS PLAN. SPECIFICALLY THE WAY WE COMMUNICATED TO MANAGEMENT WAS THROUGH ISO 14001, SEEN ON SCREEN DATA FROM OUR THREE ROUNDS OF REVIEWS FOR ISO SYSTEM, 2015, 18, 21. X-AXIS ARE DIFFERENT ENVIRONMENTAL ASPECTS WE CONSIDERED, Y-AXIS IS ISO IMPACT SCORE. 33 IS WHAT YOU'RE SEEING AS THE DOTTED LINE, WE ALSO CONSIDERED A SCORE OF 31 AS CUTOFF, WE HAVE TO MAKE A CHOICE ON PRIORITIZING ASPECTS, WE CONSIDERED DIFFERENT SCORES, WENT WITH 33 TO ENSURE WE WERE FOCUSING ON PRIORITY SCORES. IN PARTICULAR FOR FINDINGS AND ACTION PLANS TODAY, THERE WE GO, WE FOUND FOSSIL FUEL CONSUMPTION HAD HIGH SCORE AND DEMANDED A LOT OF ATTENTION TO ENSURE WE START REDUCING AS THEY PRESENT MAJOR RISKS FOR COMPLIANCE AND OTHER REQUIREMENTS THAT WE FOUND IN OUR ENVIRONMENTAL MANAGEMENT SYSTEM. WHAT'S MORE, LOOKING AT TOTAL GHG BASELINE ON SCREEN, MOST OF OUR EMISSIONS ARE SCOPE 2, AND WE HAVE A TOTAL SET OF EMISSIONS OF 153,000 METRIC TONS FOR 2021. IT IS TRUE SCOPE 2 ARE THE BULK OF OUR EMISSION, WE ACTUALLY FOUND WHAT WE CONSIDER SCOPE 1 EMISSIONS ARE ON-SITE, NATURAL GAS, REFRIDGERANT LEAKS. IN TERMS OF WHAT WE CAN ACCOMPLISH DAY TO SOMEDAY SCOPE 1 THE MOST DIRECT INFLUENCE OVER DECISIONS. WE CAN CHECK OUT WHAT'S GOING ON DAY TO DAY AND CHOSE TO FOCUS ON SCOPE 1 EMISSIONS. NOW, WITH ALL OF THAT BACKGROUND STATED, STATING HOW WE WENT FROM OUR GENERAL PLANS AND EMS FINDINGS, WE'RE GOING TO DISCUSS HOW WE GOT TO OUR GHG ACTION PLAN OBJECTIVES. THE PLAN IS THREE PILLARS. OUR GREENHOUSE GAS CAP AND TRADE PLAN WITH GOAL TO MINIMIZE COST OF MARKET-BASED REGIME. NATURAL GAS COMBUSTION FROM BOILERS IS THE BULK, IN FACT THE ENTIRETY OF WHAT'S COVERED IN THE GREENHOUSE GAS REQUIREMENT. SECOND GOAL WAS TO LOOK AT GAS INSULATED EQUIPMENT WITH SULPHUR HEXAFLUORIDE, DEVELOPING GIE SF6 TO REDUCE EMISSIONS. FINALLY THE MOST COMPLEX REGULATION IN TERMS OF WHAT'S WRITTEN DOWN FOR IT, REFRIGERANT MANAGEMENT PROGRAM. CALIFORNIA IN PARTICULAR HAS A NUMBER OF COMPLEX REGULATIONS AND REQUIREMENTS FOR THIS PROTOCOL BUT AT THE END OF THE DAY THE GOAL IS MAKE SURE IT IS NOT LEAKING OUT INTO THE ENVIRONMENT. LOOKING AT THE ACTUAL SYSTEMS, CAP AND TRADE WHAT WE'RE TRYING TO DO IS COMBUST NATURAL GAS TO PRODUCE HEAT, EMITS CO2 FROM BOILERS, CAPTURED BY CAP AND TRADE. WE LIKE TO USE A SYSTEMS APPROACH BECAUSE IT LETS US LOOK AT THE GIST OF WHAT IT IS WE WANT TO DO, SECONDARY EFFECTS OF IT WHICH IS EMISSIONS OF CARBON DIOXIDE AND SYSTEMS APPROACH TO TWIST AND TURN TO CHANGE HOW WE'RE EMITTING GREENHOUSE GASES, THAT'S FROM THE NATURAL GAS COMBUSTION. WE HAVE SULPHUR HEXAFLUORIDE, SWITCH-GEAR, SECONDARY CONSEQUENCE IS LEAKS WHICH GETS CAPTURED UNDER REGULATION. GIS THE ACRONYM IN REGULATION. ALSO OF NOTE, SULPHUR HEXAFLUORIDE IS A CONCERNS BECAUSE IT HAS A GLOBAL WARMING POTENTIAL OF 22,500, IF YOU EMIT ONE POUND YOU'VE EMITTED TEN TONS OF CARBON DIOXIDE. AND WHAT WE'RE DOING IS REUSING REFRIGERANTS IN HVAC SYSTEMS. WE HAVE LEAKS THAT GET CAPTURED, PROHIBITION IN STATIONARY REFRIGERATION SYSTEMS. THIS IS THE GENERAL FRAMEWORK OF WHAT WE HAVE TO WORK WITH IN TERMS OF GETTING NECESSARY OUTPUTS, HEAT, INSULATION AND REFRIGERATION. WHAT ARE WE ACTUALLY DOING ABOUT CAP AND TRADE IN THIS CASE? WHAT WE'VE CHOSEN TO DO IS ESTABLISH TASK FORCE, INCLUDING PEOPLE LIKE MYSELF, FROM THE ENVIRONMENTAL FUNCTION AREA WHO HAVE REGULATORY BACKGROUND, WORKING ACROSS THE OPERATIONS HOUSE AND SPEAKING WITH PEOPLE IN OUR FACILITIES GROUP WHO GO OUT IN THE FIELD AND WORK WITH THIS EQUIPMENT AND CAN COMMUNICATE ISSUES IN EFFICIENCY AND OPERATION. WHAT WE'RE DOING WITH THIS TASK FORCE IS CONDUCTING FIELD SURVEYS, TO UNDERSTAND DIFFERENT PARAMETERS, ESTABLISH EFFICIENCIES IN METERING DATA, METERING IS IMPORTANT BECAUSE WE'RE TRYING TO BECOME A DATA DRIVEN ORGANIZATION SO WE WANT TO UNDERSTAND WHICH SYSTEMS ARE METERED, WHICH ARE SPEAKING TO TERTIARY REPOSITORY, AND USING THIS INFORMATION, COMBINING WITH CAP AND TRADE COST OF CARBON AND ENERGY MARKET COST OF FUEL, BOTH HAVE BEEN INCREASING OVER TIME, AND COMPARING TO DIFFERENT ALTERNATIVES, PREPARE JUSTIFICATION FOR INFRASTRUCTURE. FOR INSTANCE, SHOULD WE BE INVESTING IN NEW NATURAL GAS EQUIPMENT CHEAPER TO ROLL OUT AND GET QUICK REDUCTION OR BE CONSIDERING ALTERNATE SYSTEMS SUCH AS HEAT PUMPS OR ELECTRICAL SYSTEMS PROVIDING INFRASTRUCTURE CAN SUPPORT IT. SO THIS IS THE GIST OF WHAT WE'RE ATTEMPTING TO DO FOR CAP AND TRADE PROTOCOL, WE WANT TO REDUCE EMISSIONS FROM BOILERS. FOR THIS AGAIN WE HAVE STARTED BY ESTABLISHING A TASK FORCE THAT HAS GONE IN THE FIELD TO CONDUCT INVENTORY, OBTAIN RECORDS ON TRAINING, DISPOSAL, INSPECTION AND REPAIR TO MAKE SURE WE'RE MEETING RECORD-KEEPING REQUIREMENTS, IDENTIFYING THOSE THAT ARE BAD LEAKERS IS ANOTHER BIG POINT. USING THAT WE WISH TO CREATE A GUIDANCE DOCUMENT TO EXPLAIN TO PEOPLE IN THE FUTURE ESPECIALLY AS WE HAVE CONTINUING TURNOVER ISSUES HOW THIS EQUIPMENT NEEDS TO BE MAINTAINED AND MAINTAIN TRAINING. AND PARALLEL MANAGEMENT IN PARTICULAR HAS BEEN A DYNAMIC REGULATION, THERE'S NEW REFRIGERANTS COVERED, WITH OUR EXPERTISE AND REGULATORY REQUIREMENTS EQUIPPED TO CONDUCT. WE WANT TO MAKE SURE AMENDMENTS ARE CAPTURED IN GUIDANCE DOCUMENT. AND FROM THERE USING GUIDANCE DOCUMENT WE WOULD LIKE TO UPDATE INSTITUTIONAL RECOMMENDATIONS ON EQUIPMENT DESIGN, WASTE DISPOSAL, CERTIFICATION, A DATABASE TO CAPTURE THIS SO WE'RE ABLE TO REALLY TELL AT A GLANCE PERHAPS EVEN DASHBOARD IT WHAT IS GOING ON WITH OUR REFRIDGEERANT SYSTEM, TAKING STEPS TO REDUCE EMISSIONS. FINALLY-- I THOUGHT I PUT IN MORE ANIMATION. TASK FORCE, I KNOW IT MIGHT SOUND LIKE A DULL THING TO DO BUT FORMING TASK FORCES HAS BEEN A BIG PART. WE WANT TO MAKE SURE WE KNOW WHAT'S GOING ON IN THE FIELD, BUY-IN LATER ON WHEN WE MAKE RECOMMENDATIONS FOR WHAT SHOULD BE DONE. WE HAVE THE FOLLOWING STEPS, FORM A TASK FORCE, FIELD VERIFICATION, PREPARE A WATCH LIST WHICH EQUIPMENT IS LEAKING A LOT, CREATE PREVENTIVE MAINTENANCE PROGRAM SO WE'RE NOT REACTIONARY AS PRO-ACTIVE, AND SO THAT WAY WE CAN ACTUALLY STOP THE LEAKS IN THE FIRST PLACE OR IF THEY ARE LEAKING STOP THEM EARLY ON IN THE LEAK PROCESS. AND THEN FROM THAT CREATE PRIORITY REPAIR AND REPLACEMENT LIST. IN ADDITION IN PARALLEL, SF6 IS A DYNAMIC REGULATION, MONITORING REGULATORY CHANGES AND CREATING GUIDANCE DOCUMENT, WE'RE TRYING TO MAKE CERTAIN WE'RE COMMUNICATING AND DOCUMENTING REGULATORY CHANGES TO COMMUNICATE TO OPERATIONS STAFF AS NEEDED. WITH IT BEING SO DYNAMIC WITH CERTIFICATION REQUIREMENTS SPECIFICALLY REQUIRING TRAINING WE WANT TO HAVE A MORE INTEGRATED GUIDANCE DOCUMENT TO ENSURE THEY ARE COMPLYING WITH AGENCY REQUIREMENTS. SO IN SUMMARY, A LOT OF THIS IS WHAT WE'RE DOING IN HOUSE. I WANT TO SHARE FINAL REMARKS ABOUT THE STEPS WE'RE TAKING TO COMPLY WITH CALIFORNIA GHG REQUIREMENTS. END DELIVERABLES, FUNCTIONING CAP AND TRADE PROGRAM OR READY DO GO. WE'RE NOT QUITE THERE. SF6 PROGRAM THAT CAN BE MUCH MORE DYNAMIC AND ROBUST TOWARDS THE ONGOING REQUIREMENTS FOR SF6 COMPLIANCE IN CALIFORNIA. THE G.I.E IS THE S F6 PROGRAM. AND WITH THE DIFFERENT WORK WE'RE DOING WITH FNI LOOKING AT INSTITUTIONAL INVESTMENT RECOMMENDATION, INSTEAD OF SAYING WE NEED TO MAKE DOCUMENTATION, WE WOULD LIKE TO LOOK FROM PERSPECTIVE OF PROACTIVITY, MORE EFFICIENT BOILERS, BETTER SF6 EQUIPMENT AND SYSTEMS THAT AREN'T USING THIS STUFF IN THE FIRST PLACE SO THAT WE'RE, AS I CALL IT, INHERENTLY COMPLIANT BY NOT HAVING ANYTHING REGULATED. AT THE VERY LEAST EFFICIENCY IS SOMETHING GOOD TO WORK FOR. WHAT IS GOING ON IN THE GENERAL PLAN? WE'RE TRYING TO EMPHASIZE STAKEHOLDER ENGAGEMENT, INSTITUTIONAL BUY-IN WHERE WE HAD OPERATIONS IN IS A -- IN FACILITIES, INVENTORY IMPROVEMENT, AND NEW POLICY TRACKINGS TO KEEP UP WITH ALL DIFFERENT TYPES OF DYNAMIC REGULATORY CHANGES HAPPENING AT THE FEDERAL LEVELS TO MEET EXTERNAL STAKEHOLDERS REQUIREMENTS MANDATED TO US. I HAD 20 MINUTES BUT THAT'S THE END. I'LL THANK YOU AT THE END OF THE LONG WORKDAY AND HAPPY TO TAKE QUESTIONS ON WHAT I'VE BEEN PRESENTING. >> HAVE YOU IDENTIFIED ANY OF YOUR INVESTMENT OPPORTUNITIES? ARE YOU LOOKING AT PERFORMANCE CONTRACTING OR HAVE YOU BEEN ABLE TO IDENTIFY ANYTHING? >> YES. THERE ARE CERTAIN MODELS OF BOILERS THAT ARE OLDER SYSTEMS, FOR INSTANCE I THINK THERE'S ONE BOILER THAT'S 32 YEARS OLD, OLDER THAN I AM, PROBABLY TIME TO SUNSET THAT AND SWITCH TO NEW TYPES OF MODELS. NEW MODELS WE'VE IDENTIFIED WE'LL BE LOOKING INTO THAT EFFECTS. WE FINISHED OUR FIELD VERIFICATION. NEW MODELS HAVE A NUMBER OF CO-BENEFITS BEYOND EFFICIENCY, LOWER RISK LIKE IF YOU WANT TO WORK IN ELECTRICAL PANELS THEY ARE SAFER TO WORK ON. NEWER SYSTEMS, TEND TO BE MORE TECHNICIANS AVAILABLE IN THE BLUE COLLAR WORKFORCE THAT HAVE EXPERIENCE AND TRAINING ON THESE SYSTEMS. THERE'S ALSO BASIC FACT THEY ARE MORE EFFICIENT. IN OUR OLDER SYSTEMS, I TAKE MY JACKET OFF BECAUSE IT WAS BIOLOGY IN THE ROOM. OTHERWISE IN TERMS OF MAJOR INVESTMENT RECOMMENDATION, OPPORTUNITY, JUST METERING. BETTER METERING SYSTEMS FOR THESE UNITS THAT GIVE US BUILDING LEVEL INFORMATION ON HOW MUCH ENERGY THEY ARE USING, HOW MUCH ENERGY THEY USE OVER THE COURSE OF A DAY, A DAY, USING THAT TO HOPEFULLY, THIS IS LONGER-TERM GOAL, INFORM A BUILDING MANAGEMENT PROTOCOL LIKE HOW DO WE START MANAGING OUR BUILDINGS PROPERLY. SO THOSE ARE THE PRIMARY THINGS WE'VE SEEN SO FAR, SPEAKING PRIMARILY FOR THE CAP AND TRADE PROGRAM, WHERE I'M THINKING MOST OF THE INSTITUTIONAL INVESTMENT WILL PROBABLY GO TOWARDS. FS6 AND HFCs, I'M NOT THE ONE LEADING THOSE EFFORTS, I'M JUST DESCRIBING THAT TODAY. WE HAVE ALSO IDENTIFYING LARGER LEAKING SYSTEMS IN THERE, AND LOOKING TOWARDS REPLACING THEM OR PERHAPS FINDING ALTERNATE SYSTEMS WE MIGHT USE. >> OKAY. WE HAVE A QUESTION LOOKING FOR CLARIFICATION, WHEN WILL LL ANDL BE REGULATED UNDER CALIFORNIA'S CAP AND TRADE? IF I HEARD CORRECTLY YOU'RE NOT SECRETARY YET. >> CORRECT. WE'RE TRYING TO DO THIS AS A PRO-ACTIVE MEASURE BECAUSE CAP AND TRADE IS EXPENSIVE, WE'RE AT 24,000 METRIC TONS OF COVERED EMISSIONS, THRESHOLD IS 25,000, A BUNCH OF BUILDINGS ABOUT TO COME ONLINE, LEED CERTIFIED, MIGHT NOT PUSH US IN, BUT AS MY COLLEAGUE LIKES TO SAY WHEN IS WHEN WE GET ONE BAD WINTER. MOTION EMISSIONS HAPPEN IN DECEMBER AND GENERAL WHEN JANUARY WHEN IT'S COLD, ONE BAD WINTER AND WE'LL ENTER THE PROGRAM FOR FOUR YEARS WHERE WE'LL HAVE TO LOWER EMISSIONS AND IT'S REALLY A FUNCTION OF WHAT'S GOING ON WITH OUR BOILERS, BOILER DEMAND. BUT THAT'S WHY WE'RE ALSO TRYING TO BE PRO-ACTIVE. WE WOULD RATHER NOT HAVE TO PAY THE STATE OF CALIFORNIA $750,000, WHATEVER THE GOING TO COST IN CAP AND TRADE COMPLIANCE CREDITS. >> OF COURSE. HAVE YOU LOOKED AT REPLACING HVAC EQUIPMENT WITH HEAT PUMP TECHNOLOGIES? >> SO WE DO WANT TO LOOK AT THAT. THAT'S UNDER THE ALTERNATIVE TECHNOLOGIES. WE'LL START LOOKING AT THAT. THE REASON WHY WE'RE NOT AS -- I'M NOT GOING TO SAY HESITANT. THERE INTEREST IN TECHNOLOGY. THE QUESTION IS WITH ALL THE NEW SYSTEMS, WE HAVE TO BALANCE THAT WITH THE DEMANDS PLACED ON OUR ELECTRIC GRID AND WE HAVE PG&E POWER LINES, NOT EXACTLY HALLMARK RELIABILITY. BUT ESSENTIALLY WE ARE INTERESTED IN THAT INFORMATION. BUT IN TERMS OF WHAT WOULD BE THE EASIEST TO GET IN PLACE FOR QUICK REDUCTION, LIKE FOR LIKE NATURAL GAS SYSTEMS, NOT AS MUCH INTEREST GENERALLY, WE'D RATHER HAVE ELECTRICAL SYSTEMS, THAT MOVE TO POWER GRID AND THAT LETS US PIGGYBACK ON RENEWAL ENERGY BUT HAVE TO BALANCE DESIRE TO LOWER OUR GHGs WITH EMISSION NEED OF HAVING RELIABLE POW ER, THAT'S THE CALCULATION PEOPLE FACE WITH THESE KINDS OF ELECTRIFICATION REQUIREMENTS. >> OKAY. I THINK THIS IS MORE OF A STATEMENT. BOILERS IS ONE OF THE PROJECTS THAT NEED TO BE REPLACED, FROM THE EMS POINT OF VIEW, ANY RECOMMENDATIONS TO CONVINCE MANAGEMENT TO REPLACE THEM? >> WITH THE REPLACEMENTS, THIS IS WHERE I THINK CAP AND TRADE IS CONVENIENT IF YOU'RE IN MY POSITION, MY DAY JOB IS MAKING RECOMMENDATIONS. THEY GIVE US A NICE CONVERSION FACTOR METRICS TONS OF CARBON DIOXIDE TO MONEY, MONEY DOES HELP YOU MAKE GOOD BUSINESS CASES. IN THIS CASE WHAT WE'RE TRYING TO DO IS USE THE CAP AND TRADE COST OF CARBON TO PERSUADE MANAGEMENT YOU CAN INVEST INTO BETTER INFRASTRUCTURE OR WILL HAVE TO GIVE THE MONEY TO CALIFORNIA, GOING TO HAVE TO SPEND MONEY EITHER WAY, MIGHT AS WELL BE GETTING BETTER ASSETS AND INFRASTRUCTURE. IN TERMS OF HOW EMS IS USING REGULATORY REGIMES, PROBABLY AS THEY WERE DESIGNED. WE WERE TOLD HERE IS THE DOLLAR BILL REQUIREMENT, USE IT BECAUSE YOU CAN'T EMIT INTO THE PUBLIC COMMONS, NOW THERE'S AN ECONOMIC BASIS FOR ARGUING FOR WHAT THIS WILL COST. ANOTHER VERY INTERESTING PLOT, BY THE WAY, I WAS LOOKING OVER THE RECENT SETTLEMENT PRICES FOR CAP AND TRADE, VERY INTERESTING TO LOOK AT BECAUSE CALIFORNIA DOES HAVE A FAIR AMOUNT OF PETROLEUM PRODUCTION, CHEVRON IN RICHMOND, FOR EXAMPLE. AS YOU READ HEADLINES ABOUT DEMAND FOR OIL AND GAS IT TRACKS WITH CORES OF CARBON, THEY ARE PROBABLY ALL IN CAP AND TRAIN, WHEN THERE'S A SPIKE IN DEMAND ALLOWANCES BECOME PREMIUM BECAUSE EVERYONE WANTS TO EMIT CARBON SO THEY CAN KEEP ON THE ECONOMIC BANDWAGON. THAT SPIKE WITH THE ONGOING, WHAT I'VE SEEN, INCREASE IN PRICE OF NATURAL GAS, ASSISTS US IN ECONOMIC BUSINESS CASE FOR WHY MORE EFFICIENT ASSETS OR ALTERNATE FUEL SOURCE ASSETS ARE SOMETHING WE SHOULD CONSIDER AT THE MANAGEMENT LEVEL FOR INSTITUTIONAL INVESTMENT. >> ONCE YOU'RE IN THE CAP AND TRADE ARE YOU ALWAYS IN? OR CAN YOU FALL BELOW THE THRESHOLD AND EXEMPT OUT AGAIN? DID I HEAR YOU SAY THERE'S A CERTAIN PERIOD YOU HAD TO STAY IN IT? >> THIS REGULATION IS TRICKY, MORE PRIORITY TO COMPLYING WHILE WE'RE IN IT AS OOPOSED TO GET OUT. MY UNDERSTANDING ONCE YOU'RE IN IT, YOU'RE IN IT FOR AT LEAST FOUR YEARS. MIGHT BE THREE. BUT SEVERAL YEARS. WHICH FOR US MEANS YOU OWE AT LEAST A MILLION DOLLARS. WHICH HELPS GET ATTENTION. BUT YOU CAN GET OUT BY GOING UNDER THE THRESHOLD AND GETTING CERTIFIED VERIFIED EMISSIONS, IT IS ISN'T JUST WE HAD THIS MANY EMISSIONS, YOU HAVE TO HAVE THEM VERIFIED, ONCE YOU VERIFIED EMISSIONS ARE BELOW THE THRESHOLD OF CAP AND TRADE FOR FOUR CONSECUTIVE YEARS YOU CAN THEN PETITION TO EXIT THE PROGRAM. OF COURSE YOU STILL HAVE TO REPORT YOUR EMISSIONS BECAUSE CALIFORNIA HAS AN INTEGRATED SYSTEM FOR REPORTING OF EMISSIONS UNDER MANDATORY REPORTING RULE, FOR EVERYONE ABOVE 10,000 METRICS TONS, UNDER THAT, YOU ESSENTIALLY WOULD GO BELOW -- REPORT BELOW 25,000 AND FOR US WE'LL ALWAYS BE ABOVE 10,000, NATURAL GAS, AND SO THAT'S HOW CALIFORNIA IS ABLE TO TRACK HOW MANY EMISSIONS HAVE YOU IF YOU'RE NOTE IN THE CAP AND TRADE PROGRAM ITSELF. >> INTERESTING. OKAY. THAT SEEMS TO BE IT FOR QUESTIONS FOR NOW. THANK YOU, NICK. THAT WAS REALLY INTERESTING. I THINK THERE'S NOT MANY OF US WHO ARE OPERATING IN CALIFORNIA AND REALLY UNDERSTAND THAT IMPACT, BUT CAN APPRECIATE THE CONCERN THERE. AND I AGREE WITH YOU FROM YOUR PERSPECTIVE IT DEFINITELY HELPS PUSH THESE EFFICIENCY PROJECTS. >> DEFINITELY. THANK Y'ALL SO MUCH. I'M ROUNDING US OUT TODAY, INTERESTING SYMPOSIUM TODAY. >> THANK YOU VERY MUCH. THANK YOU TO EVERYONE WHO JOINED US TODAY. IT WAS A FULL DAY. I THINK WE HIT A BROAD SPECTRUM THE ENERGY AND WATER EFFICIENCY TRACK WILL CONTINUE THURSDAY, WE HAVE TWO WORKSHOPS GOING ON, A 90-MINUTE AND 60-MINUTE WORKSHOP, WHICH SEEM TO BE, YOU KNOW, VERY INTERESTING, TALKING ABOUT DECARBONIZATION, AND ALSO LOOKING AT ENERGY STORAGE. SO, AGAIN, VERY HOT TOPICS IN THE ENERGY WORLD. SO WE HOPE YOU CAN JOIN US THURSDAY MORNING. THANK YOU AGAIN, JUST TO REITERATE PRESENTATIONS THAT HAVE BEEN APPROVED FOR PUBLIC POSTING AND PUBLIC BEING IN FED CENTER ARE ON THE FED CENTER WEBSITE. AND THERE WILL BE A SURVEY GOING OUT AT SOME LATER POINT, ASKING FOR YOUR FEEDBACK AND INFORMATION ON THE SYMPOSIUM. WE'RE AN ALL-VOLUNTEER COMMITTEE LOOKING FOR FEEDBACK AND ALSO LOOKING FOR NEW VOLUNTEERS TO HELP US PUT THIS TOGETHER.