NAESCO NEWS
June 2022
FROM THE DESK OF TIMOTHY D. UNRUH
NAESCO EXECUTIVE DIRECTOR
NAESCO is continuing efforts to bring the ESCO community together, as well as provide solid educational content for the industry. So far this year, we have held two in-person Regional meetings. It seems odd to have to qualify our message constantly with the reminder that we are “in-person.” However, given the last two years, with some events still impacted by the pandemic, it certainly will remain a phrase we continue to see. Our regional meetings are opportunities for the industry to gather and identify what is working and where there are challenges. These meetings provide an opportunity to educate NAESCO and other members about how the market is functioning. As we know well, the process followed to reach a final contract for an energy savings performance contract can have its challenges. We have two more Regional meetings yet this year: Chicago on August 3 and New York City on October 6.

I also want everyone to mark their calendars for the NAESCO Annual meeting, Renovate, Retrofit, Reduce on November 7-9 in Orlando. This in person event promises to be filled with social activities, networking, and informative sessions. Our sessions will include K-12 school funding, election impacts on efficiency, owners representatives and state/local federal funding efforts, among others. Last year, we had a fantastic trade show that was sold out! Be sure to get your spot early this year. Registration is open, and you can reserve your spot today – www.r3conference.com

We had a great gathering in June for the member meetings in Golden, Colorado. Many were able to attend the tour of the National Renewable Energy Laboratory. The highlight of the event were our three member speakers. They provided insight into staffing, supply chain and market issues facing the ESCO industry. One message I wanted to stress that also came out of the meetings was for members to help NAESCO remain informed. As you hear of market changes or challenges, let us know – you are our eyes and ears across the country.

Photo - Tim visits Supporting Partner Member, AEE in Atlanta. L to R, Ray Segars, Tim Unruh and Bill Kent.
NAESCO ADVOCACY UPDATEMarM
Federal Advocacy – Focus on Implementation

The three stimulus bills and the Infrastructure and Investment Jobs Act (IIJA) appropriated tens of billions of dollars that could be invested in energy efficiency, renewable energy, and grid-enabled buildings (new name for demand response) over the next five years. NAESCO is collaborating with national organizations to ensure that the implementation of these programs takes full advantage of the comprehensive project delivery and financial leveraging that ESCO projects offer.

One example of this work is a collaboration with national education organizations and EE equipment manufacturers to develop a common position -- convincing federal and state officials that the ESSER stimulus funds should prioritize energy efficiency investments.

Another example is the collaboration of more than two-dozen national organizations in the Energy Efficiency Strategy Group to understand how the IIJA programs will be administered by the US Department of Energy. Which offices and individuals are responsible for each program? What is the timing for guidance documents, solicitations, and the release of funds? We have organized introductory meetings with the DOE offices and formed working groups of EESG members that plan to meet regularly with the DOE offices to advocate for our positions, and to ensure that our members have the best available information. We are now expanding this collaboration to several state and regional EE trade associations and the Regional Energy Efficiency Organizations.

We are also participating in the development of a training and certificate program for the Performance Contracting National Resource Center (PCNRC). This program will create best practices for Owner’s Representatives that work on performance contracting projects. The training program is expected to launch in early 2023.

We have also re-started the quarterly meetings of ESCOs that implement ESPC projects in Public Housing Authorities with HUD program officials. The meetings are focused on major issues such as blending appropriated and EE funding, integrating solar and EE, innovative pilot programs, more training for PHAs.

Finally, we are working with national and regional organizations to try to salvage critical pieces of the Build Back Better legislation and to urge the IRS and DOE to issue the new guidelines, based on the updated ASHRAE standards, for the calculation of 179d baselines.

State Advocacy Efforts – Overcoming Political Opposition

As the ESCO industry grows and expands its service offerings, we are encountering more opposition from other actors in the energy efficiency and renewable energy sectors. NAESCO has organized Working Groups of ESCOs and participates in national and regional coalitions to address these issues.

California: The utility unions are increasingly active in opposing the expansion of Distributed Energy Resources (DERS) -- energy efficiency, demand response, renewable energy programs that they think will reduce the need for the generating plants and T&D where their members work. An example is union support for the restriction of net metering of customer-sited solar generation in both legislation and regulatory proceedings. ESCOs are dealing with a resurgence of claims that ESPC projects implemented under Section 4217 violate the terms of Section 1090, which restricts the ability of design consultants to implement projects.

Illinois: NAESCO is fighting, for the fifth year, a bill sponsored by the Illinois chapter of the American Institute of Architects (AIA) that would severely restrict the ability of ESCOs to do performance contracts in K-12 facilities. The NAESCO Working Group of ten ESCOs has again retained McGuireWoods Consulting, an experienced lobbying firm, to fight the bill. We stopped this year’s bill with an extraordinary effort by Illinois ESCOs, school districts that have implemented performance contracting projects and our lobbyists

Texas: Last year, NAESCO worked with a group of ESCOs to eliminate the onerous provisions (e.g., no change orders) of HB 3583 and preserved the ability of ESCOs to do ESPC in water/wastewater facilities. The bill was sponsored by consulting engineers and contractors who specialize in water/wastewater plant projects, and who though that an ESCO was stretching the limits the state performance contracting law with a particular project. The state senator who represents the area, and was the Senate sponsor or HB 3583, has published an editorial in the local weekly newspaper that suggests that the state performance contracting law may need substantial revision to restrict the industry.

Tennessee: NAESCO is working with key state agencies (Department of General Services, State Funding Board, Department of Finance and Administration) to accelerate the implementation of HB-78, supplying them with information about available types of project financing as well as NAESCO members and other companies that provide project financing. Tennessee is taking a slow and cautious approach to initiating ESPC in state buildings, as neighboring North Carolina and Georgia have done, starting with a first tranche of projects later in 2022.
NAESCO WELCOMES NEW COMPANY MEMBERS
Welcome to our new members in 2022!
click on names for more information
Full Members

Energy Service Affiliates

Returning ESA Members

Public Sector

Say it isn't so! The following members did not renew:

Flushmate, Global Recruiters of Dallas/Ft. Worth, North American Roofing, Patriot LED, RealTerm Energy, Universal Lighting, and Verizon
MEMBER NEWS AND RECENT PROJECTS
EVENTS
Some scenes from the June Member Meetings recently held in Golden, CO!
Affiliate Members get ready to tour the NREL Lab
Michael Crimmins and Erik Larson
FMI Reps, Russell Clarke and Andrew Henderson present on the state of the ESCO industry
Michael Nenni, Sean Bayless and Jim Schafer report on the State of the ESCO Employee Market
Francis Wheeler presents on Supply Chain Challenges
November 7-9
Hilton Orlando
NAESCO ACCREDITATION UPDATE
NAESCO's voluntary Accreditation Program is open to NAESCO members in good standing. Accreditation is offered twice a year in Spring and Fall. 

NAESCO is pleased to announce newly accredited and renewed accreditations for the Spring cycle:
Honeywell has been renewed as an Energy Service Provider.  CMTA has been renewed as an ESCO.  Schneider Electric has been newly accredited as an Energy Service Provider and Excel Energy and Synergy Investments have been newly accredited as Energy Efficiency Contractors.

NAESCO's voluntary Accreditation Program is open to NAESCO members in good standing. Accreditation is offered twice a year. The Spring Accreditation process begins in January and the Fall Accreditation begins in July.

Contact Michelle.Yoon@naesco.org for more information or go to www.naesco.org/accreditation. 
FEATURED MEMBER PRODUCTS AND SERVICES
Check out the new Preferred Partners page on NAESCO's website! This page features a menu allowing you to select the kinds of products and services you seek for your projects from our Affiliate members. It can sort by category, sub-categories, and attributes like "women-owned" etc.


Featured new products and services:





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