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		Energy Services Bulletin home page
		Utilities offer loans to promote residential solar
		Utility contracts fund Ellsworth AFB's award-winning energy program
		Tri-State, Columbus create irrigation and motor workshop for growers
		Topics from the Power Line: Drip irrigation may provide energy, water savings
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Utility contracts fund Ellsworth AFB's award-winning energy program

These tanks are part of the propane-air mix plant that Ellsworth installed under its utility energy services contract with Montana-Dakota Utilities Co. UESCs help Federal facilities finance large-scale energy efficiency improvements. (Photo by Ellsworth Air Force Base)

Like an actor receiving an Oscar, the 28th Civil Engineer Squadron Energy Management Team from Ellsworth Air Force Base had a lot of people to thank when they received a Federal Energy and Water Management Award last October in Washington, D.C.

Base personnel, local college students and especially energy supplier Montana-Dakota Utilities all played a part in reducing the South Dakota base's total energy use by 47 percent between 1985 and 2003, and an additional 17 percent from 2003 to 2006. "MDU took the long view and did a fantastic job," said now-retired 28th CES System Engineering Chief Dennis Svalstad.

Svalstad referred to Ellsworth's partnership with MDU on the utility energy service contract. The most recent task order issued under the UESC, completed in FY 2005, covered 100 projects and impacted nearly every person on base. Through the $4.3 million task order, the base installed air de-stratification fans and high-efficiency lighting systems in more than 47 facilities. Additional upgrades in some buildings included new natural gas radiant heating systems, window replacements and high-efficiency boilers. Total annual savings from these projects amounted to more than $470,000 and 66.9 billion Btu.

Partnership secures funding for efficiency upgrade

The partnership began nine years earlier when Svalstad wanted to upgrade the base's dual-fuel natural gas/fuel oil heating systems. The base bought about 50 percent of its natural gas on an interruptible basis, using fuel oil as a backup fuel source.  This meant sending crews out to manually switch boilers from natural gas to fuel oil on the coldest nights of the year when natural gas service was curtailed. Also, since the boilers were only switched to fuel oil occasionally, they became maintenance problems.  The underground oil storage tanks were prone to leaking, creating an environmental concern.

Svalstad learned of a propane-air mix plant that would eliminate the need for backup boilers, but there wasn't money in the budget to install the system. With the assistance of Headquarters Air Combat Command and Air Force Civil Engineering Support Agency personnel, Svalstad approached the base's energy suppliers with the idea of paying for the project with a utility energy services contract.

Under a UESC, the franchised or serving utility arranges the financing for an energy-efficiency improvement and executes the project. The customer repays the utility with the energy cost savings. The Federal Energy Management Program is an excellent resource for Federal agencies in developing these contracts.

Large energy services contractors like Honeywell and NORESCO can also execute third-party-financed projects under similar energy savings performance contracts, but Svalstad preferred going through Ellsworth's local utility. "A local utility has a stake in what happens in the community, and it's going to be there when the job is done," he said.

MDU project manager Chuck Miller agreed with Svalstad about the utility's interest in the partnership. "Ellsworth is one of our biggest customers, and keeping the base open is a big issue, not just for the community but for the entire state," he said.

Not all power suppliers are eager to support projects that reduce energy consumption, but the investor-owned, natural gas-distribution utility saw it as an opportunity. "By cutting Ellsworth's load, we could expand our distribution capacity without building new pipelines," Miller pointed out. "It was a win-win situation for everyone."

Success sets stage for more projects

Svalstad and Miller worked out the potential savings from the plant, and Ellsworth signed with MDU to conduct a feasibility study. The study confirmed initial estimates, so the utility put up the funding for construction. The first contract established the process for future projects. "Chuck and I sit down and brainstorm on improvements. Sometimes, departments will come forward with suggestions," Svalstad said. "Once we come up with number projections, MDU will do the feasibility study. If it looks like a good investment, the project moves forward."

On UESC projects, MDU selects most of the subcontractors and equipment, which streamlines the purchasing process, said Svalstad. "We still have to provide oversight, because costs have to be in line with similar military construction projects," he acknowledged. "But the utility can avoid some of the scheduling costs that are a necessary part of government contracts, and those savings can be used to install a better grade of equipment," he said.

And the more efficient the system, the shorter the payback time. Using very conservative numbers, Ellsworth and MDU, estimated that the propane-air mix plant would save the base about $500,000 annually on energy costs. Actual savings were closer to $1 million, recalled Svalstad. "It was great, except that we had all this money on the table that could have been used for more projects," he said. "Although we are still very conservative, we've learned to tighten up our figures since then."

Miller added, "As gas and electricity costs rise and technologies improve, we revisit projects that didn't make the cut the first time we looked at them. Sometimes, the payback improves."

Svalstad advised including maintenance as part of the contract, since that area often falls victim to budget-cutting and it directly affects a system's performance. "If you don't take care of equipment, it loses efficiency, and you don't get the expected savings," he pointed out. "MDU included 10 years of maintenance on our infrared heaters in our most recent UESC. They are willing to do that because that's how they get paid."

Saving energy takes cooperation

It takes more than maintenance to ensure that an energy-efficiency improvement pays for itself, however. Svalstad and Miller—now part of the Ellsworth Energy Management team—attend a lot of energy conferences to keep up on latest energy-saving technologies. Getting the most out of a UESC means building a relationship with your utility, Svalstad insisted. "Both sides have to develop confidence in the other. It's more of a partnership than a contract."

Another partnership helps keep labor costs on UESC projects down while it builds energy management skills in tomorrow's workforce. Ellsworth participates in the Keep a Student in School Program, hiring engineering students from local colleges to work on UESC projects. Jon Rexroad, a School of Mines mechanical engineering sophomore student, has been a member of the award-winning Energy Management Team for the past three years. "The biggest rewards of working here at Ellsworth have been the work experience and the contacts I've made with other people," he said.

Rexroad and another student, Christopher Tinsley, performed coordination tasks on the most recent UESC project under the direction of Project Manager Lisa Teeslink. Coordination was a critical part of the project, Rexroad said, since so much work was being done in the flight line, and contractors needed escorts to get into secure areas. “Security staff was very flexible and helpful once we explained the project,” said Rexroad, “especially when it involved upgrading heating.”

Each base agency contributed to Ellsworth's energy-saving efforts, too. In some cases, the contribution was as direct as engineers incorporating energy-efficient concepts and equipment into planning and design. Other agencies applied their expertise to putting existing resources to the best use. "The real property department, for example, made sure that people were in buildings that fit their need," said Svalstad. "If you try to use a hangar or a warehouse as an office, it's going to be a very inefficient office."

Creating buy-in, sharing credit

Using the "soft sell" approach, the energy management team also promoted simple conservation measures that everyone can put into practice. "In a military environment, more persuasion and less dictation works best," Svalstad said. "I spent a lot of time early in the program, just talking with different people about ways to keep energy costs down. People were more likely to turn off a light or shut a window if it was their idea."

It wasn't always easy to explain to superiors the time spent educating base personnel about energy efficiency, but results justified the effort. "Encouraging people to take responsibility for their energy use freed the team to concentrate on controlling project costs," said Svalstad.

So when members of the 28th Civil Engineering Energy Management Team stepped up to the podium to accept their award from FEMP, they were happy to share the credit. Ellsworth Air Force Base's energy reduction program is a blockbuster, and the producers know they couldn't have done it alone.