ABM to Reduce Energy and Operating Costs for the General Services Administration in Los Angeles, Calif., by More Than $21 Million

Tuesday, October 2, 2018

ABM’s Energy Savings Performance Contract Allows the General Services Administration to Reduce Impact on Utility Grid

ABM (NYSE: ABM), a leading provider of facility solutions, has initiated the Phase 2B of a multi-phase Energy Savings Performance Contract for the U.S General Services Administration (GSA) in Los Angeles, Calif. The final phase of ABM's customized solution is projected to save the GSA more than $21 million in energy and operating costs over a 19-year period. The project is scheduled for completion in July 2019.

Energy and operations savings will be achieved by upgrading to energy-efficient LED lighting, upgrading HVAC infrastructure and controls and improving building envelopes at five federal high-rise buildings, which totals 2.6 million-square-feet, in Los Angeles. The primary driver of energy savings is a battery power storage system that will allow the GSA to participate in multiple Southern California Edison energy conservation programs, while improving energy resilience for critical GSA spaces. The upgrades will save the GSA nearly $1 million in energy and operating costs in the first year, with the battery system accounting for the majority of the savings. The energy and operating cost savings will climb during the life of the program, resulting in more than $21 million in savings.

“By leveraging guaranteed energy and operational savings, ABM will help the GSA save funding and participate in California’s Demand Response Program, which will drive a lower electricity rate,” said Mark Newsome, President of ABM Technical Solutions. “These upgrades will not only help the GSA, but the entire area by reducing the impact on the local utility grid.”

The project includes upgrades at the Edward R. Roybal Federal Building, the U.S. Social Security Administration Building, the 300 North Los Angeles (NLA) Building, the Glenn M. Anderson Federal Building and the Ronald Reagan Federal Building and U.S. Courthouse.

The upgraded battery power storage system allows the GSA to take advantage of local utility programs, including Time of Use Billing, Critical Peak Pricing Incentives and the Demand Response Program. By charging the batteries in the evening when demands on the utility grid are lower, GSA is able to shift a large portion of its energy consumption to hours when electricity rates are reduced. It requires little to no operator input, as automated battery controllers manage charging and discharging the batteries, and handling any utility calls for Demand Response Program actions.

“This system makes the GSA more resilient, because if there is a power failure, they’ll be able to operate on the battery system for an extended period of time,” Newsome said.

The project makes the GSA eligible for the California Public Utilities Commission’s Self-Generation Incentive Program, which provides incentives and rebates for distributed energy-generating or storage systems. More than $1.4 million in Self-Generation Incentive Program incentives are pending the completion of the project.

The GSA’s project was solicited and awarded as a multiple phase project to allow ABM and GSA to strategically prioritize the most immediate needs. The first phase of the project, which was awarded in October, 2013, included chiller plant updates, new equipment, a water-side economizer and advanced controls. It also included demand control ventilation and Variable Frequency Drives.

The second phase focuses on providing a Deep Energy Retrofit for each of the GSA’s five facilities in Los Angeles. It includes replacement and retro commissioning of heating and cooling equipment with state-of-the-art fan walls and low-load chillers to provide more efficient operation at part load, updated building automation controls to include real time energy regulation and reporting, and upgraded lighting and solar window tinting.

The Measurement and Verification (M&V) report for Phase 1, year 3 was submitted in March, 2018, and the guaranteed savings were not only met but exceeded by 22 percent. The M&V report for the first part of Phase 2, year 1 was submitted in March, 2018, and the guaranteed savings was not only met, but was exceeded by 12 percent.

ABM's Energy Savings Performance Contract Program will enable the GSA to make these upgrades without impacting its capital budget. The program is designed as a financial solution to meet clients' technical facility needs and sustainability goals. The goal is to drive costs out of a client's operating budget, allowing savings to be reallocated to fund mission critical facility needs. View a video to learn how ABM is providing facility and financial solutions to local governments without upfront costs or tax increases.

Highlights of the project include:

  • Installing a battery power storage system to allow for participation in Demand Response Program, without sacrificing power usage during peak periods.
  • Retrofitting lighting and upgrading lighting controls at the Glenn M. Anderson Federal Building and the Social Security Administration Building
  • Upgrading HVAC systems and installing monitoring-based commissioning systems at each facility
  • Deep energy retrofit with savings that exceeded 50 percent of the original baseline

For more information on ABM's Energy Savings Performance Contract Program and other offerings, visit www.abm.com.

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