Norfolk Naval Shipyard

Combined Heat and Power Plant and

Energy Conservation Measures Briefing

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 1

Welcome

• Call logistics

• Q&A

• Introductions

• Commander Bill Butler, Public Works Officer, NNSY

• Mr. Keith Sellers, Deputy Public Works Officer, NNSY

• Bob Albertini, Director, Program Management, Ameresco

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 2

Agenda

• Introduction

• Opening Remarks

• Executive Summary and Project Purpose

• Project Overview and Community Benefits

• Q&A

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 3

Glossary

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 4

NNSY Norfolk Naval Shipyard

NavFac Naval Facilities Engineering Command

NavSea Naval Sea Systems Command

ESPC Energy Savings Performance Contract

CHP Combined Heat and Power

ECM Energy Conservation Measures

IWTP Industrial Wastewater Treatment Plant

RDF Refuse Derived Fuel

VDEQ Virginia Department of Environmental Quality

Ameresco ESPC Contractor

Opening Remarks

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 5

Executive Summary

• A Combined Heat and Power Plant (or CHP) will be constructed at the Norfolk

Naval Shipyard (NNSY) in Portsmouth, Virginia

• Once built, it will significantly improve the shipyard’s energy security and

efficiency by conserving energy and reducing emissions

• Energy cost savings from the CHP Plant will even help to pay for a new Industrial

Wastewater Treatment Plant (IWTP) to replace the existing 40+year-old facility that

is well beyond its useful life

• While the coming changes for the shipyard are important, there will also continue

to be significant positive impacts on the local economy and workforce

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 6

Background Information

• An Energy Savings Performance Contract (ESPC) was awarded for

four energy conservation measures (ECM) at Norfolk Naval Shipyard

• The largest ECM is the Combined Heat and Power Plant (CHP) being

constructed at the NNSY

• The CHP plant will provide NNSY its own source of steam and

electricity and the ability to operate independent of the electrical

grid in the event of an extended grid outage

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 7

Purpose of the ESPC

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 8

Provide significant improvement to

the Department of the Navy’s

Three Pillars of Energy Security

• Reliability

• Resiliency

• Efficiency

ESPC Background

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 9

• CHP is one of four planned Energy

Conservations Measures (ECMs) at NNSY

1. CHP Plant

2. New Industrial Wastewater Treatment Plant

3. Steam System Improvement

4. Electric Transformer Replacement

• All four ECM construction scopes are

scheduled to be completed by the

end of 2022

Environmental Assessment

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 10

• NNSY’s November 16, 2017 NNSY

Environmental Assessment for the

implementation of the ECMs addresses

numerous factors

• There are no significant short-term, long-

term, direct or indirect impacts to water

resources, cultural, visual or biological

resources during CHP Plant construction

or operational activities

ECMs

Air Quality

Water

Resources

Cultural,

Visual,

Biological

Infrastructure

HazMat and

Wastes

Environmental

Justice

Project Funding

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 11

• This project is being executed with

no additional taxpayer expense

• Self-funding project

• Annual operating savings

relative to existing budgets are

used to fund the project

Annual

Operating

Savings

Existing

Budgets

Project

Funding

Project Overview

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 12

CHP Project Background

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 13

• A two-story, 30,000 square foot building

will be constructed to house the CHP

• Location: South end of NNSY in existing

parking lot

• Project components:

• CHP Plant providing on-site electric and steam

generation

• Microgrid Control System

• Battery Energy Storage System

Location

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 14

CHP

Plant

New steam

distribution line

Connection to existing

main steam lines

Existing RDF Plant

Project Benefits

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 15

Project Benefits – Navy

• Maintains Shipyard Mission and avoids potential ship repair delays

• Eliminates potential off-site waste disposal & cost

• Faster implementation versus appropriated funding

• Reduced operation and maintenance costs

• Guaranteed CHP plant performance over 22-year contract term

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 16

Economic Benefits - Navy

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 17

• $13.7 million estimated annual

savings for NNSY

• $11.8 million from the CHP

• $1.3 million from the IWTP

• $467,000 from steam system upgrades

• $100,000 from replacement of electric

transformer across the shipyard

• Considerable savings on the facilities’ energy bills due to CHP’s high efficiency

• Upgrades will serve to avoid shutdowns, delays in maintaining and repairing ships

and in the long-term save money on excess repair costs and maintenance

Energy Security - Navy

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 18

• The Norfolk Naval Shipyard will be

able to operate independently of

the community’s electrical grid in

the event of a blackout

Community Benefits

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 19

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 20

• Economic Impact

• Workforce

Community Benefits

• Environmental

• Air Quality

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 21

Figures provided by Ameresco, ESPC contractor

Economic Impact

• Total Local Economic Impact: $37.38 million (including $29.7 million in local

subcontracting and $7.7 million in food, lodging, and other ancillary

revenues)

• Local businesses within 1/4 mile of the plant will be utilized, including

ready-mix concrete and concrete piles

Component Local Subcontracting

Prime Contractor Ancillary

Food/Lodging/Other

CHP Plant

$ 18,200,000 $ 4,800,000

IWTP

$ 9,555,000 $ 2,000,000

Other Subcontracting

$ 1,979,000 $ 844,000

Totals

$ 29,734,000 $ 7,644,000

Total Local Economic Benefit

$ 37,378,000

Workforce Benefits

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 22

• 210+ local construction tradesmen will

be employed by contractors and

subcontractors during construction

• 17 full time employees will be hired for

the operations of the plant

• 15 employees from the home office of

the project’s contractor will be paid

per diem to establish a temporary

residence in the local area, making a

direct economic impact of $4.8 million

Local Subcontracting Opportunities

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 23

• Prime subcontractor Bowen has $27,755,000

allocated for direct local contracts to support

the IWTP and CHP construction

• Contract opportunities include but are not limited

to electrical work, piling, HVAC, roofing, metal work

and instrumentation

• We will work with Bowen to better understand their

planned approach to attracting and developing

local talent

• We will work with Bowen and local community

leaders to ensure these opportunities are proactively

communicated to Portsmouth SWaM businesses

Environmental Benefits

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 24

• There are no significant short-term, long-

term, direct or indirect impacts to water,

cultural, visual or biological resources

during construction or operation

• CHP is promoted by the Environmental

Protection Agency (EPA)

• Their CHP Partnership seeks to reduce air

pollution and water usage associated

with electric power generation

https://www.epa.gov/chp

• CHP reduces emissions of greenhouse

gasses and other pollutants

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 25

• CHP requires less fuel to produce

a given energy output

• Avoids transmission and distribution

losses that occur when electricity

travels over power lines

The CHP plant will reduce the Navy’s energy consumption which results in

reduced emissions and reduced demand

Environmental Benefits (cont’d)

Air Quality

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 26

• The CHP plant will incorporate Best

Available Control Technologies

(BACT), per the VDEQ

• BACT controls include a combination

of clean fuels, good combustion

practices and other technologies

• Controls will minimize the effects of

any additional emissions

• Net decrease in Greenhouse

Gas emissions

Neighborhood Considerations

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 27

Neighborhood

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 28

• Construction noise exposure off the

CHP property will not exceed any of

the current noise levels

• Project dust will be minimal and silt

discharge will be minimized off-site

• Silt run off to the Elizabeth River will

be prevented during construction

Construction

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 29

• Minimal construction traffic to be

added to the area

• Major truck deliveries will be staged

and offloaded in the CHP

laydown/former Ship’s Force parking

• Locally sourced materials will decrease

the traffic impact by eliminating an

estimated 900 deliveries

Construction (cont’d)

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 30

• All construction waste will be disposed of or

recycled in a manner consistent with NNSY

sustainable practices and procedures

• Noise exposure off the CHP property will not

exceed any of the current noise levels

• Additional parking will be made available at

the South Gate Annex

Q&A

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 31

7.1.2020 NNSY ESPC Combined Heat and Power Plant Stakeholder Information Session 32

• If your question was not answered

during this session, please email it to

terri.k.davis@navy.mil

• For project information, please visit

navsea.navy.mil/Home/Shipyards/Norfolk/

Thank you for attending today’s information session.