report on request for informantion for the provision of ... · report on request for information...
TRANSCRIPT
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Report on
Request for Information for the
Provision of Energy Management Services
April 30, 2004
Larry Shirley, Director 733-1889
Sharon Stroud 733-1892
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TABLE OF CONTENTS Executive Summary 3 List of Qualified Companies 5A Administrative Procedure 6 Appendix 1 Legislative Directive 7 Appendix 2 Request for Information for the Provision of Energy 8
Management Services (RFI) and Addendum #1 Appendix 3 Matrix of Responding Companies and Services Provided 24A Appendix 4 Comments by Qualified Companies on Long-Term Potential 25
Cost Savings Through Energy Management Appendix 5 Graph of Potential Annual Energy Savings Estimates 27A
by Qualified Companies Appendix 6 Modifications to State Law or Regulations Suggested by 28 Qualified Companies
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Executive Summary In response to a legislative directive (See Appendix 1), the State Energy Office (SEO) has identified companies qualified to provide energy management services to state agencies and compiled information collected as requested from these companies. Number of Qualified Companies With assistance from representatives of other state agencies, the SEO has qualified fifteen (15) firms which demonstrate expertise in providing energy management services and recommends these firms to any state agency or university as expert and experienced in energy-related projects. A list of the firms with contact information is on page 4A of this report and is also listed on the SEO website at http://www.energync.net. Types of Energy Management Services Types of energy management services applicable to state facilities and availability by firm are noted on the matrix in Appendix 3. Each qualified firm offers various expertise, and state agencies may use this matrix to identify firms with skills needed for a particular project. Long-Term Cost Savings Potential In Appendix 4, comments by the qualified companies about long-term potential cost savings from energy management in state agencies and universities are listed. Estimates ranged from 0% to 50% of energy costs and dollar savings varied from zero to $1 billion over varying time frames. These estimates of potential savings by qualified companies are presented graphically in Appendix 5. US Department of Energy’s (DOE) Energy Star program projections of potential savings also vary. Estimates range from 35%, or greater, potential savings through integrated energy-efficient upgrades to 5% to 20% annual savings by implementation of best operating and maintenance practices. A more realistic evaluation of potential energy savings is available through SEO evaluations. In the 2003 State Energy Plan, available at http://www.energync.net, the Energy Policy Council recommended a goal of reducing energy consumption in existing state buildings to save 20% by 2008, 4% per year or more for the next 5 years (recommendation #11). During the past eighteen months, the SEO has teamed with management and building operating staff throughout state government to estimate potential energy cost savings and determine how to achieve these utility savings. This Utility Savings Initiative incorporates strategic energy plans, training in specific technologies and general conservation education, energy surveys, rate analysis, and performance contracting as tools for state agencies and universities to apply in this effort. In eighteen months, the SEO’s Utility Savings Initiative has achieved the following:
Thirty-three departments and agencies have completed strategic energy plans; Over 2,000 state employees have received technical and conservation training
through workshops and courses; Energy surveys have been completed in 30% of state-owned buildings to determine
needed operating and maintenance measures with projected energy cost savings of $25 million if implemented statewide;
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Rate analysis of 5,300 electric service accounts resulted in moving 236 accounts to more economical rates with projected savings of $750,000 annually and recovery of $288,000 in billing errors.
Performance contracting training for operating, financial and management staff of state agencies and universities has been completed and SEO staff is available to advise on prospective projects.
Modifications to State Law or Regulations In Appendix 6, Modifications to State Law or Regulations Suggested by Qualified Companies, recommendations and suggestions from the qualified companies are grouped by topic. Since the largest costs and savings will be achieved through performance contracting, many suggestions relate to this tool. Significant points include the following:
Over one-half of companies think state agencies should be allowed to retain all or a portion of net utility savings as an incentive for saving energy;
Nearly one-half of companies suggest eliminating the $50 million cap on funds available for energy improvements through performance contracting. Several suggest increased maintenance budget funding as critical to controlling energy costs;
Six of the companies recommend extending the contract term for performance contracts from the current 12 years to 15, 20, or even 25 years.
Of critical importance to the energy services companies (ESCOs) participating in performance contracting with state government is the current regulation requiring the company to guarantee total energy savings amount over the full term of the contract with a bond, insurance, letter of credit, or other resource approved by the Office of State Treasurer. While the intent of the requirement is to protect the state agency, this guarantee increases project costs. It is expected that corporate self-insurance will be most often utilized. Privately-held, new, or small companies have difficulty meeting this requirement. The largest category of suggestions, listed under “Specific Actions/Measures to Reduce Energy Use/Utility Savings Initiative,” do not require modification to law but are listed in Appendix 6 for further review as energy savings ideas. Many of these recommendations are already incorporated into activities and strategic energy plans of agencies and universities. Recommendations of State Energy Office Based on evaluation of comments from qualified companies and information from the Utility Savings Initiative program, the State Energy Office recommends the following actions.
The qualified companies constitute a huge resource of expertise and experience to state agencies. As lead agency for energy issues, the SEO will continue to seek input from these companies for improving tools, processes, and relationships among agencies to achieve energy cost savings for the state and resolve problem areas.
The SEO’s Utility Savings Initiative will be expanded to provide additional services and support to agency and university staff in carrying out their respective strategic energy plans.
State agencies should be allowed to retain any unused budgeted utility funds.
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The current $50 million cap on funds for performance contracting projects should be expanded to $100 million in 2005; to $200 million in 2007; with evaluation in 2009 to determine if the cap should be retained or lifted completely; and
The term for performance contracts should be lengthened to 15 years in 2005.
Firm ESCO Owner's
Rep. Specialized
Services Address Contact Email Phone Ameresco, Inc yes 128 South Tryon St. Suite 2200 Charlotte, NC 28202 Larry Landry [email protected] 704-916-3534 Chevron Energy Solutions Company yes 6447 Rubia Circle Apollo Beach, Fl 33572 Larry Underwood [email protected] 813-649-9379 Cogenex yes Booth Mills South 100 Foot of John St. Lowell, MA 01852 Doug Sattler [email protected] 215-855-0515 Custom Energy Services. LLC yes 9217 Cody Overland Park, KS 66214 Dale Hahs [email protected] 913-888-8050 EMC Engineers Yes 920 Main Campus Dr. Suite 100 Raleigh, NC 27606 Bill McMullen [email protected] 919-424-4455 Energy Systems Group, LLC yes 1321 Sunset Dr. Building B, Suite 103 Johnson City, TN 37604 Frank Shepard [email protected] 865-584-1185 Florida Power and Light yes 9001 Ellis Rd. West Melbourne, FL 32904 Jim J. Quinn [email protected] 321-726-4948 GDS Associates, Inc. Yes 1850 Parkway Place Suite 800 Marietta, GA 30067 Richard Spellman [email protected] 770-425-8100 x 154 Honeywell International, Inc yes 2201 Brentwood Rd. Raleigh, NC 27604 Terry Morton [email protected] 757-761-9556 Johnson Controls, Inc yes 633-104 Hutton St. Raleigh, NC 27606 J.C. Blucher Ehringhaus II [email protected] 704-521-6356 NORESCO yes 4 Allegheny Center Pittsburg, PA 15215 Bill Foster [email protected] 800-884-5156 Pepco Energy Services, Inc yes 1300 N. 17th St. Suite 1600 Arlington, VA 22209 John Huffman [email protected] 336-323-7100 Progress Energy Solutions, Inc yes 412 South Wilmington St. Raleigh, NC 27601 Gregg W. Eaton [email protected] 919-235-4334 Sempra Energy Solutions yes 2500 CityWest Blvd. Suite 1800 Houston, TX 77042 Doug Love [email protected] 713-361-7600 Siemens Buildings Technologies, Inc. yes 215 Southport Dr. Suite 900 Morrisville, NC 27560 Jim Williams [email protected] 919-469-5095 TAC Americas yes 1650 W. Crosby Rd Carrollton, TX 75006 Brian Ratcliff [email protected] 804-467-6399 TECO Energy Services, Inc. yes 3550 West Waters Ave. Tampa, FL 33614 Eric B. Lawton, P.E. [email protected] 813-375-3361 The North Carolina Energy Center, NCSU Yes IES PO Box 7902 Raleigh, NC 27695 Jim Parker [email protected] 919-515-8585 Trane Comfort Solutions Inc. yes 4833 White Bear Pkwy. St. Paul, MN 55110 Tim Gasper [email protected] 919-781-0458 United Engineering Group, Inc. Yes 5624 Executive Center Dr. Suite 200 Charlotte, NC 28212 Douglas Simpson [email protected] 704-945-3355 Yamas Controls Yes 206 Atwell Ave. Greensboro, NC 27406 Neal Hagler [email protected] 336-273-9465
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List of Qualified Companies
1. May 2004 RFI respondents were qualified to participate in North Carolina State Government Performance Contracting Program with appropriate responses these areas: Engineering Design, Measurement & Verification, Baseline Calculations, Adjustment to Baseline Methodology, Savings Calculations, Contractor Fee Calculation, Maintenance Contract Flexibility, Training Provisions, Subcontractors, Open Book Pricing, Billing and Invoices, Environmental Liabilities, Provision of Warranties, Equipment Ownership and Service Responsibility, Contract Agreement, Technical Audits, Appropriate Expertise and Experience and Adequate Financial Reliability
2. December 2003 ESCO RFQ respondents were previously qualified to participate in North Carolina State Government Performance Contracting Program with appropriate responses in these areas: Engineering Design, Measurement & Verification, Baseline Calculations, Adjustment to Baseline Methodology, Savings Calculations, Contractor Fee Calculation, Maintenance Contract Flexibility, Training Provisions, Subcontractors, Open Book Pricing, Billing and Invoices, Environmental Liabilities, Provision of Warranties, Equipment Ownership and Service Responsibility, Contract Agreement, Technical Audits, Appropriate Expertise and Experience, Adequate Financial Reliability, Savings Guarantee and Provision of Financing and Insurance.
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Administrative Procedure In response to the legislative directive in Section 6.13 of House Bill 397 of Session 2003, as found in Appendix 1, the State Energy Office has gathered information through the following process. On December 5, 2003, a Request for Information for the Provision of Energy Management Services (RFI) was posted on the State Energy Office Website and on the State Purchasing & Contracts Website. Several professional organizations, including Professional Engineers of North Carolina and the North Carolina Chapter of the American Institute of Architects, provided announcements of the Request for Information to their members. The full RFI and one addendum dated January 9 can be reviewed in Appendix 2. By the RFI deadline on January 16, 2004, responses from twenty-three (23) firms had been received. One additional response arrived on the following business day but was disqualified due to its late arrival. On February 13, 2004, a review team composed of representatives of the State Energy Office (3), Department of Administration (1), State Construction Office (1), and UNC-General Administration (1), evaluated the responses of all 23 firms. Ten responses were from firms previously qualified under an earlier Request for Certification for Provision of Performance Contracting. The review team identified five additional firms for personal interview by the review team and for financial evaluation by the Office of State Treasurer. These five firms were subsequently approved as qualified. In summary, fifteen of the responding firms have demonstrated expertise in providing energy management services and are recommended to any state agency or university as expert and experienced in energy-related projects. This report summarizes opinions and suggestions from all fifteen qualified firms as received in their respective RFI response.
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Appendix 1 Legislative Directive 2003 Session, H397 Requested by: Senators Garrou, Dalton, Hagan ISSUE REQUEST FOR INFORMATION/ENERGY MANAGEMENT SECTION 6.13. The Department of Administration (Department) shall issue a Request for Information (RFI) to identify companies interested in providing, and qualified to provide, comprehensive energy management services to State departments, agencies, and institutions. The Department shall evaluate information collected through the RFI to determine the: (1) Number of qualified companies interested in doing energy management business with State government. (2) Types of energy management services available and applicable to State-owned facilities. (3) Long-term cost savings potentially available to the State from the implementation of various energy management services. (4) Modifications to State law or regulations that may be necessary to acquire and utilize successfully energy management services. By May 1, 2004, the Department shall report its findings, conclusions, and recommendations to the Chairs of the Senate and House of Representatives Appropriations Committees.
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Request for Information for the Provision of Energy Management Services
State Energy Office North Carolina Department of Administration
Energy Management Services Pursuant to Session Law 2003-284 (H397) Section 6.13, the State Energy Office in the Department of Administration is requesting information from firms and organizations that are interested in providing energy management services for the State of North Carolina including all state agencies and public universities that are part of the University of North Carolina system. Information is requested on the firm’s previous experience in providing various energy management services to any state governments and public universities, as well as information on personnel, financial condition, capabilities, and other items as detailed below. Five copies of this information should be received at the State Energy Office by no later than 5:00 p.m. on Friday, January 16, 2004. Information submitted for evaluation must be in three-ring binders, printed in font size 11, on 8 ½” by 11” paper, with pages consecutively numbered, printed on two sides. Only requested information should be included in the binder. Also, a CD with all information in Microsoft Office Suite must be submitted.
Request for Information for the Provision of Energy Management Services In Session Law 2003-284 (H397) Section 6.13, the State Energy Office in the Department of Administration was directed to solicit information and qualify firms or organizations wishing to do business with the State of North Carolina in the area of energy management services. This information will be compiled and reported to the NC General Assembly in 2004. Session Law 2003-284 (H397) can be found at www.ncleg.net. Energy Management Services may be provided by a firm or organization which contracts with others to provide expertise in areas including but not limited to one or more of the following:
performance contracting or guaranteed energy service contracting mechanical upgrade or replacement of heating, ventilation, and air conditioning systems
(HVAC); boilers, chillers, hot water systems, steam systems, and chilled water systems; lighting upgrade or replacement of indoor and outdoor lighting systems; building envelope upgrade or replacement of windows, doors, insulation, and roofs; building and equipment commissioning and re-commissioning; co-generation or renewable energy systems installation, operation, and maintenance; operations, maintenance and/or repair service contracting; training for operation and maintenance of equipment, such as HVAC, load management,
etc; establishment and review of measurement and verification methodologies; request for proposal (RFP) development and evaluation for energy projects including
performance contracting; energy auditing; or energy and facility management systems installation, upgrade or replacement. utility billing analysis with comparison of eligible rate schedules and estimation of annual
savings; utility bill payment for electric, natural gas, water, sewer, and other utility services;
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The following information is requested of firms or organizations wishing to engage in the provision of energy management services for the agencies and universities of the State of North Carolina. Provide a Table of Contents based on this outline. 1. General Approach
Describe your firm or organization’s capability, expertise, available services and products in the format outlined on Attachment A. Examples from your past projects may be used for clarification.
2. Personnel Information
In lieu of resumes, describe the qualifications for each of the firm’s key personnel who will be involved in North Carolina energy management services projects by completing the form labeled Attachment B.
3. Project History
For the previous four years, provide project information by completing the form labeled Attachment C. The order of projects listed should be as follows: a. All projects in North Carolina; b. Projects with any state government agency in the United States with a maximum of
10 projects; c. Projects with any college or university in the United States with a maximum of 10
projects. 4. Organization Information
Provide a profile of your firm or organization by supplying the information requested in Attachment D.
5. Situation Analysis Provide your input on the following:
A. Identify any barriers or obstacles that your firm or organization has observed that are retarding the state’s ability to achieve maximum energy efficiency in its facilities; B. Identify any strategies or remedies that might be needed, whether through
regulatory, programmatic, financial or legislative means, or could be applied to address these obstacles or barriers;
C. Assess the potential energy savings that could be achieved in state and university facilities in North Carolina if an aggressive and comprehensive energy efficiency program were undertaken across the state for these facilities; and
D. Make recommendations to guide the State of North Carolina in its development of
such an energy efficiency program for state facilities. Applicants who cannot provide the above referenced materials must submit a detailed explanation on how they can provide high quality energy management services. This information will be reviewed by a qualification panel. Prospective providers may be asked to appear for an interview. The State Energy Office reserves the right to qualify those firms or organizations that it believes meet the criteria described above and, in its opinion, would best
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fulfill the goals, objectives and level of service that is being sought as part of its energy management program for state facilities. Appeal procedures are outlined in Chapter 41B.
North Carolina Department of Administration 1340 Mail Service Center
Raleigh, NC 27699
Next Day and Special Delivery Services should be sent to State Energy Office, 1830A Tillery Place, Raleigh, NC 27604.
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ATTACHMENT A
All questions must be addressed. If not applicable, enter “N/A.” General Approach
1. Scope of Services. Summarize the scope of services (auditing, design, construction, monitoring, operations, maintenance, training, financing, etc.) that would be offered by your firm. Include a brief description of your firm's approach to energy management and the specific benefits your firm can offer a state agency or university.
2. Engineering Design. Describe your firm’s approach to technical design.
3. Monitoring and Verification. Describe the methodologies preferred for monitoring
and savings verification, including the frequency of such efforts. Note if an industry standard such as the International Monitoring and Verification Protocol is used.
4. Baseline Calculation Methodology. Describe in detail the methodology your firm normally uses to compute baseline of energy and water use as well as performance.
5. Adjustment to Baseline Methodology. Describe the method(s) used to adjust the
energy, water and O&M baseline due to such factors as weather and facility use changes. Describe factors that would necessitate adjustment.
6. Savings Calculations. List procedures, formulas and methodologies including special
metering or equipment your firm uses to calculate energy, water and O&M savings. Include assumptions made in the calculations. Describe the procedure to assign dollar values to the O&M and energy and water savings.
7. Contractor Fee Calculation. Describe your methods for calculating your firm's fees
(fixed cost, cost plus, billable hours, scaled fee schedule, or other methods).
8. Maintenance Contract Flexibility. Describe the types of services your firm could provide in a maintenance contract. Comment on whether Owner’s maintenance staff can perform some of these duties if desired.
9. Training Provisions. Describe your firm's capabilities in providing technical training for Owner’s facility personnel and experience on past projects. Describe your firm’s involvement in developing training manuals for facility staff.
10. Subcontractors. Describe the nature of work generally conducted by subcontractors
and discuss your flexibility in hiring subcontractors recommended by Owner or in selecting local subcontractors in Owner’s geographical area.
11. Open Book Pricing. Describe your firm’s approach and experience in providing open-
book pricing. 12. Billing and Invoices. Describe your standard billing procedures and attach a sample
invoice.
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13. Environmental Liability. State your firm’s position with respect to the acceptance of liability for any hazardous materials encountered during the course of a project.
14. Provision of Warranties. State the nature and term of warranties that apply to projects.
15. Equipment Ownership and Service Responsibility. Describe the status of
equipment ownership and service responsibility at contract expiration. 16. Contract Agreement. Provide a sample of your company’s contract which identifies
specific tasks to be completed.
17. Technical Audit. Briefly describe your approach to auditing a facility for energy, water, sewer, etc., usage and savings potential.
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ATTACHMENT B PERSONNEL INFORMATION
Using the format provided below, briefly describe the relevant experience, qualifications and educational background for only those primary team members (no more than 10 individuals) who will directly be working on projects in North Carolina. Identify the person responsible for contract negotiations. Do not include individual resumes.
Name of Project Team Member:
Current Job Title: Job responsibilities: Number of years with firm: Primary Office Location:
Employment History Company Name: Primary job responsibilities: Number of years with firm:
Educational Background
List all academic degrees, certifications, PE registration and number, professional affiliations, relevant publications and technical training.
List all energy management services projects this individual has been involved with during the past 4 years.
Include project location, type of facilities of services, year implemented and dollar value of installed project costs and utility savings attained to date.
Describe the specific role and responsibilities this individual had for each listed project.
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Provide a detailed description of the role and responsibilities this individual will have with energy management services projects with NC state agencies and public universities.
Describe any other relevant technical experience.
Indicate the total years of relevant energy-related experience for this individual.
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ATTACHMENT C PROJECT HISTORY Complete the information for EACH ENERGY MANAGEMENT SERVICES PROJECT DURING THE PREVIOUS FOUR YEARS (a) in North Carolina, (b) for any state government agency in the United States with maximum of 10, (c) for any college or university in the United States with maximum of 10. Limit your response to those projects that have been managed directly by the specific branch, division, office or any individual in such branch, division or office who would be working on North Carolina projects. Use a separate form of 8-1/2" x 11" paper for each contract. Attach additional sheets as necessary. Project Name and Location Number of Buildings Primary Use Total square footage
Project Dollar Amount (installed project costs)
Services Provided by Firm
Start & End Dates of Project
Contract Start & End Dates
Dollar Value and Type of Annual Operational Cost Savings (e.g., outside maintenance contracts, material savings, etc.)
Method(s) of Savings Measurement and Verification
Provide CURRENT and ACCURATE telephone and FAX numbers of the owner(s)’ representatives with whom your firm did business on this project.
Describe the specific roles and
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responsibilities of your firm’s personnel associated with the identified project. Limit your response to only those personnel who will be directly involved in North Carolina projects. Firm Notes or Comments
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ATTACHMENT D Firm or Corporate Information
All questions must be addressed. If not applicable, enter “N/A. 1. General Firm Information Firm Name: ____________________________________________________________ Mailing Address: ________________________________________________________ Physical Address: _______________________________________________________ Provide contact information of two principal contact persons: 1) __________________ ____________________ _________________ Name Title Phone __________________ _________________________________________ Fax Email Address 2) __________________ ____________________ _________________ Name Title Phone __________________ _________________________________________ Fax Email Address Submittal is for:
____ Parent Company ____ Subsidiary ____ Division ____ Branch Office
List any Division or Branch Offices that will participate materially in the development of the proposal, in its evaluation process, and/or in the conduct of any services provided. Name of Office: __________________________________________________ Address: ________________________________________________________ Name and Address of Parent Company (if applicable) Name: __________________________________________________________ Address: ________________________________________________________ Former Name(s) of Firm (if applicable) Name: __________________________________________________________ Address: ________________________________________________________ 2. Date Prepared: ___________________
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3. Type of Firm ___ Corporation ___ Partnership ___ Sole Proprietorship ___ Joint Venture 4. Federal Employer Identification Number: _________________________ 5. Year Firm Established: ____________ 6. Minority Business Information
a. Recognized MWBE. Is your firm a recognized Minority or Woman-owned Business Enterprise (MWBE)?: ___ Yes ___ No
b. Category. If yes, please indicate the appropriate category. ___ American Indian ___ Spanish Surname ___ Asian-American ___ Woman-Owned ___ African-American ___ Other
c. Certifying Agencies. If yes, indicate which jurisdictions or certifying agencies recognize your firm’s MWBE status.
d. Accommodation. If “No”, please summarize how you will accommodate MWBE goals
pursuant to N.C.G.S. 143-129.4 and 143-128.2. 7. Five-year summary of contract values for energy related services: 2003___: $______________ (to date) 2002___: $______________ 2001___: $______________ 2000___: $______________ 1999___: $______________ 8. Corporate Background a. Years Under Present Name. How many years has your firm been in business under
its present business name? ________ Years b. Former Names. Indicate all other names by which your organization has been known
and the length of time known by each name. Name: __________________________________________ Years: _______
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Name: __________________________________________ Years: _______ c. Years in Energy Business. How many years has your firm been providing energy-
efficiency related business? ________ years. d. State Qualification. Identify all states in which your firm is legally qualified to do
business. e. Lawsuit Involvement. Has your firm been involved in a construction related lawsuit
(other than labor or personnel litigation) during the past five (5) years? ____Yes _____No. If yes, please explain in detail the nature of the claim, circumstances, amount in dispute, date suit was filed, and the outcome of the case.
Note: If your company is currently under suspension or debarment, your proposal
may not be accepted or considered.
f. Construction Arbitration Involvement. Has your firm been involved in any construction arbitration demands during the past five (5) years? _____Yes _____No. If yes, identify the nature of the claim, amount in dispute, parties, and ultimate resolution of the proceeding.
g. National Labor Relations Board or Similar Involvement. Has your firm been involved in any lawsuits, administrative proceedings or hearings initiated by the National Labor Relations Board or a similar state or federal agency during the past five (5) years regarding your firm’s safety practices? _____Yes _____No. If yes, identify the nature of the claim and the ultimate resolution of the proceeding.
h. OSHA-Type Proceedings. Has your firm been involved in any lawsuits, administrative proceedings or hearings initiated by the Occupational Safety and Health Administration or a similar state or federal agency during the past five (5) years regarding the safety of one of your firm’s projects? ______Yes _____No. If yes, identify the nature of the claim and the ultimate resolution of the proceeding.
i. Bankruptcy Involvement. Has your firm, or any of its parents or subsidiaries, ever had a bankruptcy petition filed in its name, voluntarily or involuntarily? _____Yes _____No. If yes, explain in detail the circumstances, date the protection order was filed and the resolution of the case (or current status, if still ongoing).
9. Financial Information a. Financial Statement. Attach your firm’s most recent financial statement or annual
report for each of the last two years.
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b. Statement of Financial Conditions. Attach the most recent annual Statements of Financial Conditions, including balance sheet, income statement and statement of cash flows, dated within the past twelve (12) months. Provide the name, address, and the telephone number of firm(s) that prepared the Financial Statements:
Name: _______________________________________________________ Address: ______________________________________________________ Phone: (_____) ___________________________ c. Accounting Firm Information. If these financial documents were not produced in-
house, indicate the name, address and phone number of the firm(s) that prepared these financial statements.
d. Banking References. List contact person with phone number, address and name of bank(s) used by your firm. e. Bonding References. List name and address of bonding companies used by your firm with contact name and phone number. f. Bonding Capacity. What is your firm’s current bonding capacity? _______________ 10. Authorization Dated at ______________________________________________ this day
of ____________________, 20_____.
Name of Organization: ____________________________________________________________ By __________________________________ Title _________________________________
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11. Attachments. List all attachments created to address additional information. List by number and heading in this profile. If a computer-generated form is used, detailed descriptions can be included in the appropriate section rather than prepared as an attachment.
Item # Heading Name Attachment for # _____ ____________________________ Attachment for # _____ ____________________________ Attachment for # _____ ____________________________ Attachment for # _____ ____________________________ Attachment for # _____ ____________________________
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12. Notary Statement Mr. /Ms. __________________ being duly sworn deposes and says that he/she is the ________________________________ of _________________________________
(Title) [Firm(s)] and that answers to the foregoing questions and all statements therein contained are true and correct. Subscribed and sworn before me this _______________ day of _______, 20_____. Notary Public _________________________________________________ My Commission Expires ___________________________,
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ADDENDUM #1 TO REQUEST FOR INFORMATION FOR THE PROVISION OF ENERGY MANAGEMENT SERVICES State Energy Office January 9, 2004 Questions Received
1) The information requested looks very similar to the October Request for Qualification for Performance Contracting. Can the same information be provided for this RFI response? This RFI does not request Sample Projects or a Case Study. And, several items were eliminated or changed in Attachments A through D. If you use the October RFQ information as a base document, you should carefully read the RFI, eliminate unnecessary material, and re-number items as needed.
2) Some items requested in the Attachments do not apply to my firm. We anticipate a wide
variety of firms to respond and recognize that “n/a” can be an appropriate answer.
3) Will the firms qualified under this RFI be exclusive providers of respective services to state agencies and universities? No; state agencies and universities may use this list as a resource to identify providers of various energy management services but are not restricted to use only these firms. Note this exclusion: State agencies and universities can enter a guaranteed energy services contract only with a qualified ESCO among those listed at http://www.energync.net/Energy2/perfcont.htm.
4) Is residency in North Carolina required for qualification as an energy management
services provider? Residency is not required for a firm to be qualified and listed as an energy management services provider in North Carolina. Subsequently however, an agency or university may consider responsiveness and location as a criteria in selecting a contractor.
5) Will the qualified energy management services firms be listed by category or in one list?
We plan to list firms by category of services provided.
6) In Attachment A, item 11, the term Open-Book Pricing refers to a process where the contractor and owner together review bids from suppliers and subcontractors and make a joint selection on the best value.
7) In Attachment A, item 12, Billing and Invoices, a description of your firm’s standard
billing procedures and a sample invoice are requested. Although your firm may provide various services to a range of clients, you may submit any invoice that reflects the scope and expertise of your services as your example.
8) In Attachment A, item 16, Contract Agreement, a sample contract identifying specific
tasks to be completed is requested. Although your firm may provide various services to a
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range of clients, you may submit any contract that reflects the scope and expertise of your firm as your example.
9) In Attachment A, several items request description of methodologies normally used by
your firm: [4. Baseline Calculation Methodology. Describe in detail the methodology your firm normally uses to compute baseline of energy and water use as well as performance. 5. Adjustment to Baseline Methodology. Describe the method(s) used to adjust the energy, water and O&M baseline due to such factors as weather and facility use changes. Describe factors that would necessitate adjustment. 6. Savings Calculations. List procedures, formulas and methodologies including special metering or equipment your firm uses to calculate energy, water and O&M savings. Include assumptions made in the calculations. Describe the procedure to assign dollar values to the O&M and energy and water savings. ]
Include the methodologies that your firm uses most often in your area of expertise. These include segmenting heating and cooling use from other loads; normalizing usage and costs when weather extremes, price spikes, or changes in hours of operation occur; or M&V standards.
10) In Attachment D, item 10, the information requested is date, month, and year that this
response is completed.
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Ameresco, Inc X X X X X X X X X XChevron Energy Solutions X Cogenex XCustom Energy Services, LLC XEMC Engineers X X X X X X X X X X X X X X X X X X X X XEnergy Systems Group, LLC X X X X X X X X X X X X X X X XFlorida Power and Light XGDS Associates, Inc. X X X X X X X X XHoneywell International, Inc X X X X X X X X X X X X XJohnson Controls, Inc X X X X X X X X X XNORESCO X X X X X X X X X X XNorth Carolina Energy Center (NCSU) X X X X X X X X X XPepco Energy Services, Inc X X X X X X X X X X XProgress Energy Solutions, Inc X X X X X X X X XSempra Energy Solutions X X X XSiemens Buildings Technologies, Inc. X X X X X X X X X X X X X X X X X XTAC Americas XTECO Energy Services XTrane Comfort Solutions Inc. X X X X X XUnited Engineering Group, Inc. X X X X X X XYamas Controls X X X X X X X
* May 2004 RFI respondents were qualified to participate in North Carolina State Government Performance Contracting Program with appropriate responses these areas: Engineering Design, Measurement & Verification, Baseline Calculations, Adjustment to Baseline Methodology, Savings Calculations, Contractor Fee Calculation, Maintenance Contract Flexibility, Training Provisions, Subcontractors, Open Book Pricing, Billing and Invoices, Environmental Liabilities, Provision of Warranties, Equipment Ownership and Service Responsibility, Contract Agreement, Technical Audits, Appropriate Expertise and Experience and Adequate Financial Reliability
** December 2003 ESCO RFQ respondents were previously qualified to participate in North Carolina State Government Performance Contracting Program with appropriate responses in these areas: Engineering Design, Measurement & Verification, Baseline Calculations, Adjustment to Baseline Methodology, Savings Calculations, Contractor Fee Calculation, Maintenance Contract Flexibility, Training Provisions, Subcontractors, Open Book Pricing, Billing and Invoices, Environmental Liabilities, Provision of Warranties, Equipment Ownership and Service Responsibility, Contract Agreement, Technical Audits, Appropriate Expertise and Experience, Adequate Financial Reliability, Savings Guarantee and Provision of Financing and Insurance.
24A
Appendix 3: Matrix of Responding Companies and Services Provided
25
APPENDIX 4 Comments by Qualified Companies on Long-term Potential Cost Savings from Energy Management From responses to the Request for Information for the Provision of Energy Management Services. Ameresco The State could realize over $500 million in capital improvements that would be supported
by utility savings at its facilities; With emergence of the carbon emissions offset market in the next few years, the total might
exceed $1 billion in capital improvements. EMC Engineers Retro-Commissioning: Case studies have shown that retro-commissioning existing buildings
can save from 10-45% annually in energy costs. System Optimization: Optimizing building automation system performance presents good
potential energy savings because the capabilities of these systems are often underutilized. Lighting Retrofit: Retrofitting these fixtures with T-8 lamps and electronic ballasts is
relatively inexpensive and will significantly reduce electrical consumption. ESG (Energy Systems Group) ESG has documented savings ranging from 15% to 45%. Each facility is unique but, with
aggressive and comprehensive efforts by a qualified firm, 50% savings are possible. The limiting factors are commitment and funding. Performance contracting finds a balance of savings and funding based on the criteria established by law.
GDS Associates GDS estimates that average savings of 20% of annual energy use can be cost effectively
achieved in these state and university facilities in North Carolina, assuming implementation of an aggressive and comprehensive energy efficiency program targeted at these facilities.
Potential Facility Retrofit Measures:
o Lighting Retrofit I Replacement o Occupancy Sensors o Night Setback I Shutdown o DHW Circulating Pump Shutdown o Boiler I Burner Replacement
o High Efficiency Motors o Steam Trap Repair o Pipe Insulation o Window Replacements o Facility Management System
o Other Energy Savings Opportunities with Chillers:
Chiller Replacement Water Side Economizer Variable Speed Drive for Chilled Water Pumps Increased Heat Rejection Increase Chilled Water Set-Point When Possible
26
Cool Storage Absorption Chillers Reduce Condensing Water Temperature when Possible Variable speed Chillers, Pumps, and Fans
Honeywell Savings of 10 to 35% of total utility costs for facilities that implement energy savings
programs is possible. Based upon FY ‘02 date, with State energy expenditures of $214 million dollars, this could
potentially result in energy savings of between $20 to $75 million dollars for the State of North Carolina.
Based upon the current maximum term of 12 years, a $20 to $75 million dollar savings stream could fund a potential $160 to $600 million dollars of energy conservation measures.
Johnson Controls The State of NC has 12,300 state buildings, 96 million square feet, $214 million in energy
expenditures (according to the State Energy Office). According to a National Association of Energy Services Companies (NAESCO) survey, the
median electric savings for performance contracts is 23%. Based on these statistical figures, the State of NC could expect $49 million per year in
electric savings, through the successful implementation of performance contracts within state agencies.
Additional savings will be realized through maintenance and operations. NC Energy Center On average, five (5) percent can be saved through equipment repair and improvements. An additional five plus (5+) percent can be saved by changing behaviors. NORESCO Approximate annual energy savings that could be achieved through comprehensive
performance contracting at the state universities and community colleges would be $38 million.
These savings would be able to support a capital investment of more than $350 million in building and infrastructure upgrades that are 100% funded from savings without any initial capital required from the State of North Carolina.
Pepco Based on Pepco Energy Services’ experience in energy performance contracting, the State
could save 10% to 30% of its energy cost. If the state were to increase the performance contract term to a period greater than twelve
years, the state could save even more. Progress Energy Solutions Based on industry averages and our experience, the State can save roughly 20% on utility
expenditures ($214 million x 20% = $42.8 million). This number is based on industry averages, not a systematic evaluation of State facilities and, therefore, contains a margin of error plus or minus 20%.
27
Sempra It appears that state government, including universities, spend over $179 million annually on
energy for state facilities. Assuming that 20-25 % of that cost can be saved by installing energy efficiency measures, a comprehensive energy management program could result in annual savings of approximately $45 million.
Siemens The Federal government is making considerable progress in this effort. Building-related
energy costs have dropped more than 20 percent per square foot since 1985, thanks largely to the work of FEMP.
FEMP’s success, in part, can be attributed to:
o Having a clearly stated policy goal for specific percentage reductions in energy consumption.
o Communicating directly with facilities managers to hear, directly from them, what barriers and obstacles need to be addressed.
o Providing ‘enablers’ in four core areas: financing, technical assistance, outreach, and policy.
o Tracking results, and providing positive reinforcement for those who are achieving results in line with FEMP’s stated goals and objectives (the entire FEMP program can be viewed at http://www.eere.energy.gov/femp/)
Trane Savings of 5-25% are possible, depending upon facility type and operation. United Engineering Group Establishing a clearly defined Project Scope and Project Goals Seeking and incorporating the Owner’s input on a continuous basis throughout the project Establishing a Project Schedule Establishing a Project Budget Yamas We assisted in a study of state facilities in 2003 to estimate the amount of savings that could
be realized via an initial investment. The results of the study showed that lighting EMS measures could potentially save $13,000,000, while Heating/ Ventilating/Air Conditioning EMS measures could potentially save $12,000,000.
Appendix 5: Graph of Potential Annual Energy Savings Estimates by Qualified Companies
$0.00
$20,000,000.00
$40,000,000.00
$60,000,000.00
$80,000,000.00
$100,000,000.00
$120,000,000.00
Amer
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Yamas
Minimum Maximum26A
27A
29
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APPENDIX 6 MODIFICATIONS TO STATE LAW OR REGULATIONS From responses to the Request for Information for the Provision of Energy Management Services Suggestions by Topic Allow Agencies to Retain Portion of Net Savings Sharing Net Savings: A memorandum from the Governor or Budget Office asserting that all savings
may be kept for the duration of contract. Otherwise, a statutory amendment if this strategy is unsuccessful. (Ameresco)
Implement an incentive program that would allow state agencies to “keep” all or a portion of the savings derived from a verifiable energy management program. (EMC)
Provide state agencies with incentive to participate in energy efficiency programs. Do not reduce a participating agency's budget when energy savings are realized; these energy savings help pay for the improvements. In addition, excess energy savings that are over and above the guarantee should remain with the agency as an incentive to participate. (JCI)
Develop an incentive system by allowing the facilities to keep 50% of their savings. This is a win-win strategy. (NC Energy Center)
Creating incentives for agencies to implement guaranteed energy savings contracts by allowing them to share in the excess savings, thus rewarding successful projects. (Progress)
Reward the agencies that implement successful energy conservation programs by allowing them to benefit from the cost savings. This would create incentive to undertake projects. (Progress)
The current legislation results in utility budget reduction and provides little incentive for implementing an aggressive program. (Siemens)
Add performance contracting incentive provision for agencies: Shared (excess or continued) savings between Treasurer’s office and state agency. 100% excess to agency (for limited term or at infinitum) or split benefit 50/50. (Trane)
Create a payback to the state agency occupying the buildings in a form to create respective employee incentives. The employee incentive can be monies paid back to the agency as a bonus. (Yamas)
Increase Amount of Funds Available (increase $50M) Low debt ceiling created by legislation needs to be raised to $250 M. (Ameresco) Increase or eliminate cap of $50 million (JCI) Increase the maintenance budget. Establish a state-wide policy to improve maintenance funding. The
present system is more costly in the long-run. (NC Energy Center) Eliminate the $50 million cap on energy performance contracting; (PEPCO) If successful, the funding limit will need to be raised from $50 million to between $100-$150 million.
There are more than $50 million worth of improvements that can be funded by guaranteed energy savings contracts. Raising the funding limit would also reduce demand for capital funds. (Progress)
A process is needed whereby entities’ needs are prioritized by the state with respect to the 50 million dollar cap. An increase in the cap would be appropriate. (Siemens)
29
Raise or eliminate cap on state performance contracting. (Trane) Extend Contract Term A longer term (contract) (ESG) Seriously consider lengthening contract term to allow for more comprehensive energy conservation. The
typical contract term for guaranteed energy savings contracts allowed in most states is 10 to 15 years. This term is fine for typical energy conservation measures such as lighting retrofits and energy management controls, but is not practical for other energy conservation measures such as window replacement or central cooling plant replacements which typically have much longer payback periods, but are still viable energy conserving measures. (Honeywell)
Increase allowable term for payback from 12 years to 15-20 years, as many states have already done (JCI)
Extend the maximum project term allowed for a performance contracting project from 12 years to 15 years. (Sempra)
The proposed legislation in '03 that attempted to extend the term from 12 to 20 years, as well as provide shared savings would have addressed some of the perceived limitations. (Siemens)
Extend performance contracting maximum term to 15-25 years. (Trane) Revise Requirement for Bond/Insurance/Guarantee for Energy Services Companies (ESCOs) Savings Bond Requirements: A balanced assessment of costs and true risks of savings shortfalls, such
as stipulated savings, is a reduced risk. The State would see the viability of such a practice after an examination of performance contracting history in the U.S. Also, a thorough examination of the presently available or unavailable insurance instruments to ESCOs needs to be conducted. After a review of these facts, the State should develop a subsequent ruling that a letter of corporate guarantee is sufficient as is the case in most states. (Ameresco)
It is a company’s financial resources and stability that brings true value to the savings guarantee that is an integral part of an Energy Performance Contracting Program. Therefore, in addition to a stringent competitive procurement structure, such as that described above, we strongly urge the State to accord appropriate weight to financial strength as it proceeds in the development and implementation of its program. The longevity, cash flow statements, net worth, credit rating, and bonding line are all important factors to consider in evaluating the ability of ESCOs to back their guarantee on a sustained basis. (NORESCO)
The law states that the ESCO shall provide a bond equal to 100 percent of the total cost of the guaranteed savings contract. If this means the bond shall be equal to the guaranteed savings amount over the term of the contract, obtaining such a bond will be very difficult, if not impossible. The surety industry has not shown interest in providing multi-year bonds for efficiency savings guarantees. (Sempra)
Specific Actions/Measures to Reduce Energy Use/Utility Savings Initiative Funding constraints will make the target goals in the 2003 North Carolina Energy Plan difficult for
universities to achieve by the 2008 deadline. To meet these goals, the state should aggressively implement efficiency programs that require minimal investment, including:
o Retro-commissioning facilities that are under 20 years old.
30
o Optimizing the performance of building automation systems. (EMC) Implement a program to retrofit fluorescent lighting systems in all state buildings by 2008. While there
is considerable expense to do this, the payback is generally less than four years. (EMC) Require that all utilities be metered in new and existing state buildings. (EMC) Set up a website to access services and serve as clearinghouse for program information. Most colleges,
universities, and other agencies are limited in time and funding. Easy access to information, tools, providers, and other resources could be readily provided at the North Carolina State Energy Office website. (EMC)
Continue to educate State units on the importance of energy conservation. (Honeywell) Promote the use of energy management firms and energy service companies in the development and
evaluation of facility audits, baseline utility analysis, design and implementation of energy conservation measures, and energy guarantee contracts. (Honeywell)
Monitor and evaluate current programs on a regular basis to shape programs to meet the changing needs of State facilities. (Honeywell)
It is our understanding that the State Energy Office has mandated that each North Carolina State agency develop a Strategic Energy Plan that includes the designation of an energy manager, tracking of utilities, etc. We believe this plan is an excellent step and should become part of any energy efficiency program and should be shared with each agency’s performance contracting partner.
Develop a Strategic Energy Plan that includes the designation of an energy manager, tacking of utilities, etc….this plan is an excellent step and should become part of any energy efficiency program and shared with each agency's performance contracting partner. (JCI)
Industry experts recognize and understand that proper maintenance plays a large role in comfort, energy savings and indoor air quality (IAQ). Accordingly, we would recommend that all state agencies evaluate and adopt a preventative maintenance plan, which would include an ongoing and comprehensive training program. (JCI)
Develop agency buy-in and recognition of the value of energy savings and performance as a means to reduce energy, replace outdated equipment, increase comfort conditions, and maximize HVAC system efficiencies. (JCI)
Provide additional incentives to agencies to use the performance contracting tool. (JCI) Evaluation of training and preventive maintenance programs within a performance contract. (JCI) Provide Top-Management Support for the Program. This will require constant attention and cannot be
allowed to languish. (NC Energy Center) Spend more money on instrumentation. If you can’t measure it, you’ll never save it. Install meters on all
buildings to get baseline energy use data. (NC Energy Center) Recognize superior performance through awards and financial incentives. Make this a group reward,
rather than an individual one. Get employees to work together toward a common goal. (NC Energy Center)
Create an environment that respects the individual. Listen to their ideas.... And consider them. Improve employee morale. Show them respect. (NC Energy Center)
Promote energy conservation and efficiency at universities and state office buildings. If building energy use is measured, give awards for best performance. Track energy use over time and publicize the results. (NC Energy Center)
Continue and expand promotion and support of energy performance contracting. (PEPCO) Provide significant, additional funding for the State Energy Office to educate and promote energy
performance contracting; (PEPCO)
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Establish an Energy Efficiency Group made up of State entities and private-sector ESCOs to formulate and promote policy positions. (PEPCO)
Establish public-private partnerships. (PEPCO) Establish State mandates for reducing energy use in State facilities by a certain date through energy
performance contracting. (PEPCO) The State of North Carolina has many tools at its disposal to dramatically improve the energy efficiency
of its facilities. Our recommendation to the State is to use those existing tools to the maximum extent allowed. The tools include guaranteed energy savings contracts, repair and renovation funds and the State Energy Office’s Utility Savings Initiative (USI). Each agency has a list of repair and renovation (R&R) funds requested. That list should be evaluated to determine what improvements can be self funded via a guaranteed energy savings contract and which ones will require repair and renovation funds. There will also be improvements not on the R&R list that can be implemented as part of guaranteed energy savings contracts. (Progress)
The State Energy Office, through its Utility Savings Initiative (USI) has undertaken to implement rate review, utility accounting, operations and maintenance training, and an energy awareness program. All of these elements of USI have value when implementing a guaranteed energy savings contract. We recommend that these USI program elements be expanded upon when implementing a guaranteed energy savings contract. (Progress)
As the State of North Carolina establishes specific energy conservation goals and tactical approaches for achieving them, Siemens would suggest strong consideration be given to the following activities:
o Utility Bill Services
Baseline Tariff Analysis Tariff Report Baseline Bill Auditing Ongoing Bill Auditing Bill Exception Report Web-Based Utility Bill Presentation
Service
Energy Procurement Management Services
RFP and Procurement Services Supply Contract Services Regulatory Information
Management
o Utility Information Services
Baseline Energy Usage Analysis Ongoing Energy Usage Analysis Baseline Load Profile Analysis
Strategic Metering Plan Performance Benchmarking
(Siemens) The State Energy Office is on the right track. Only two suggestions come to mind. First, continue to
communicate with ESCOs, consulting engineers, contractors, and equipment venders for their ideas for making the program work smoothly and efficiently. Second, present suggestions to the General Assembly so they can quickly provide remedies to improve the program. (Sempra)
The law does not address water conservation projects. These projects offer savings that can justify replacing plumbing fixtures. (Sempra)
Review and implement good ideas from the private sector response to the RFI. (Trane) Step-up agency educational activity. (Trane) Institute agency energy efficiency goals and deadlines. (Trane) Validating the Scope, Goals, Schedule and Budget at the end of each Design Phase (United Engineering
Group)
32
Conducting Constructability Reviews at the end of each Design Phase (United Engineering Group) Providing proactive Construction Administration throughout the project (United Engineering Group) Allocate sufficient funds to maintain the infrastructure, utilities, and systems of state facilities. (United
Engineering Group) Most energy savings are realized in HVAC, lighting or power systems and a clear focus should be kept
on maintaining of these systems; a systematic audit or monitoring these systems can identify outdated systems which, if replaced, will result in sufficient energy savings to justify the replacement. (United Engineering Group)
Classify, categorize, and establish an energy usage baseline for every state building based on construction type and age. (Yamas)
Two energy saving items that exist in every building are lighting costs per square foot and energy cost associated with each zone of heating and cooling. Turning off lights when not needed and lowering heating set points during the winter, plus raising cooling set points in the summer, are key items. (Yamas)
Comments Related to Provision of Energy Management Services A provision to allow capital avoidance. For example, funds have been budgeted for the replacement of a
boiler in the next five years and a performance contract is being considered for the same facility, then the budgeted amount could be considered as part of the savings to support the project financing. There could be limits set to prevent abuse of this authority, such as a maximum percentage of the savings could be capital avoidance. This would provide a great deal of leverage and eliminate a great deal of bureaucratic coordination between energy savings and capital projects. (ESG)
Reduce the development costs associated with developing a performance contract. While recognizing the need to have fair and open competition, other states have selected 2-3 Energy Service Companies to compete on each opportunity. Little value is realized by the state in having 15 firms submit detailed proposals and this is a disincentive for the companies to put their best effort toward the proposal. It is also very time consuming for the state officials. (ESG)
Follow the lead of the Federal Energy Management Program and require all state facilities to save 15% of their 2003 annual energy use by December 31, 2008. Once this requirement is in place, then GDS recommends the following steps be taken to secure those energy savings:
o Establish the 2003 energy use baseline; o Identify savings opportunities; o Hire contractors to implement savings that have been identified and that are cost effective; and o Track progress with savings with M&V procedures. (GDS)
Continue with incentive programs such as low interest loans for energy efficiency measures.
(Honeywell) This program has recently been implemented by the Virginia Department of General Services:
o Pre-qualify a select group of energy services companies (ESCOs) to implement projects for State entities.
State entities seeking services to choose three of the pre-qualified ESCOs to conduct energy audits
and present preliminary technical and financial proposals for a performance contract.
33
State then conducts oral interviews as part of the selection process in order to confirm the details of the preliminary proposal as well as assess the overall fit of the State entity with the ESCO
Once the State entity selects its ESCO partner, it enters into a memorandum of understanding to conduct the detailed energy audit; the final detailed energy audit forms the basis of the final contractual agreement between the ESCO and the State entity to implement the project.
The two parties execute an energy services agreement and project implementation begins and energy savings are realized. (NORESCO)
Suggestions for New Construction Institute policies to ensure that energy performance of state facilities improves over time, including:
o Commissioning all new state buildings. o Requiring that all new state buildings be LEED certified. o Benchmark and monitor energy performance of all state buildings. o Develop aggressive energy guidelines for new state buildings, beyond those prescribed by code, and
update them regularly. (EMC) Allowable Under Present Performance Contracting Program or Other Existing Legislation Technical Support Resources: Continue contracts with most recent consultants, paid for if necessary
from savings secured in performance contracts. (Ameresco) Continue to maintain favorable legislation, to make it easy and beneficial for State facilities to
implement energy conservation measures. (Honeywell) Shifting to a Life Cycle Cost Analysis will provide a true measure of total project costs and maximize
the net life cycle value of the project being evaluated (JCI)