The National Nuclear Security Administration (NNSA) Pantex Plant,
located in the State of Texas, relies on electrical power
(energy/electricity) to perform mission critical functions associated with
NNSA’s Stockpile Stewardship mission. One of the primary missions of NNSA
is to maintain and enhance the safety, security and reliability of the
U.S. nuclear weapons stockpile. The Pantex Plant currently acquires
electric utility services under a separate contract with the local
distribution company, Xcel Energy.
In addition to its Stockpile Stewardship mission, NNSA is also responsible
for promoting renewable energy initiatives pursuant to Executive Order
13423 “Strengthening Federal Environmental, Energy, and Transportation
Management” and DOE O 430.2B “Renewable Energy and Transportation
Management.” In response to these initiatives, the NNSA Pantex Site
Office, in collaboration with the Pantex Plant Management and Operating
(M&O) Contractor, Babcock & Wilcox Technical Services Pantex, LLC (B&W
Pantex), developed a Wind Farm Pantex Renewable Energy Project (PREP) – to
pursue a third-party financed Wind Farm renewable energy generating
facility to supplement the current electric services provided by the local
distribution company. This Wind Farm project involves contracting with a
private entity to design, construct and maintain a Government-owned Wind
Farm on Government property located within the Pantex Plant boundaries.
This Wind Farm PREP can be acquired via an Energy Savings Performance
Contract (ESPC).
ESPCs allow Federal agencies to accomplish energy savings projects without
up-front capital costs and without special Congressional appropriations.
An ESPC is a partnership between a Federal agency and an energy service
company (ESCO). The ESCO conducts a comprehensive energy audit for the
Federal facility and identifies improvements to save energy. In
consultation with the Federal agency, the ESCO designs and constructs a
project that meets the agency's needs and arranges the necessary funding.
The ESCO guarantees that the improvements will generate energy cost
savings sufficient to pay for the project over the term of the contract.
After the contract ends, all additional cost savings accrue to the agency.
ESPC terms up to 25 years are allowed. Legislation authorizing ESPCs was
enacted in 1992, and the Department of Energy (DOE) promulgated
regulations for their use in 1995. ESPC authority was made permanent in
2007. Energy Policy Act of 1992 (EPAct 1992) included provisions for ESPCs
and DOE Final Rule (10 CFR 436 Subpart B) implemented ESPCs authority.
Furthermore, the Energy Independence and Security Act of 2007 (EISA 2007)
Subtitle B, Energy Savings Performance Contracting (Sections 511 - 518),
amended 42 U.S.C. § 8287, authorized the sale or transfer of energy
generated on Federal sites from renewable energy sources in excess of
Federal needs to utilities or non-Federal energy users in accordance with
existing Federal or state laws.
According to the DOE, the United States has enough wind resources to
generate electricity for every home and business in the nation. But not
all areas are suitable for wind energy development. Based upon the
National Oceanographic and Atmospheric Administration (NOAA) and National
Renewable Energy Laboratory (NREL), the Pantex Site qualifies as a
location with more than sufficient, naturally occurring wind resources to
produce needed energy for the site.
The Pantex Site Office has considered many ways to meet the requirements
of EO 13423 and DOE O 430.2B. The Pantex Site Office first considered
buying renewable energy through a separate contract pursuant to Federal
Acquisition Regulation (FAR) Part 41 – Acquisition of Utility Services;
however, the purchase of renewable (i.e., “green”) energy is priced higher
than energy currently being purchased and funding for this price premium
is not available.