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HomeMy WebLinkAboutCERTS GESP PowerPointGuaranteed Energy Guaranteed Energy Savings Program Savings Program (GESP)(GESP) February 21, 2013February 21, 2013 2013 CERTS Conference2013 CERTS Conference Facility IssuesFacility Issues Growing Deferred MaintenanceGrowing Deferred Maintenance •• Occupant Comfort and ProductivityOccupant Comfort and Productivity •• Health, Safety and EnvironmentalHealth, Safety and Environmental •• Energy Price UncertaintyEnergy Price Uncertainty •• Limited Budgets and StaffLimited Budgets and Staff •• 1 Energy Savings Energy Savings Performance ContractPerformance Contract Guaranteed Energy Savings Agreement under Guaranteed Energy Savings Agreement under •• statute statute §§16C.144 16C.144 Projects are completed creating energy, Projects are completed creating energy, •• operational, and maintenance efficiencies.operational, and maintenance efficiencies. Accumulated cost savings are Accumulated cost savings are used to pay for all used to pay for all •• project and financing costsproject and financing costs No net cost to public entityNo net cost to public entity •• Energy Savings Energy Savings Performance ContractPerformance Contract PerformancePerformance--based based contract between a public entity contract between a public entity •• and a qualified “Energy Services Company” (ESCO). and a qualified “Energy Services Company” (ESCO). The The ESCO ESCO “guarantees” “guarantees” that that annual cost savings will annual cost savings will •• meet or exceed the annual payments due under the meet or exceed the annual payments due under the agreementagreement If savings If savings are not are not achieved, the achieved, the ESCO is required to ESCO is required to •• reimburse the public entity for the reimburse the public entity for the shortfallshortfall. . To To achieve the “guaranteed” savings, the ESCO achieve the “guaranteed” savings, the ESCO •• assumes the construction and onassumes the construction and on--going performance going performance risk of the project.risk of the project. 2 Typical ProjectsTypical Projects ArchitecturalArchitectural/Structural/Structural––roofing, doors, insulation, weatherroofing, doors, insulation, weather-- stripping, window treatmentstripping, window treatment ElectricalElectrical––lighting retrofits, emergency power, power and lighting retrofits, emergency power, power and distribution, IT/communications networks, life safety systemsdistribution, IT/communications networks, life safety systems MechanicalMechanical––HVAC systems, plumbing and drainage, energy HVAC systems, plumbing and drainage, energy management and building controls management and building controls Property/SiteProperty/Site––underground utilities, lighting improvements, underground utilities, lighting improvements, swimming pools, ice arenasswimming pools, ice arenas Renewable EnergyRenewable Energy––photovoltaic (PV) solar, thermal solar, wind, photovoltaic (PV) solar, thermal solar, wind, biomass, hydroelectricbiomass, hydroelectric Water and WasteWater and Waste––water purification systems, water sewage water purification systems, water sewage facilities, landfill gas capturing, waste utilizationfacilities, landfill gas capturing, waste utilization Operational Best PracticesOperational Best Practices––staff training and development staff training and development programs associated with energy conservationprograms associated with energy conservation Typical ESPC ProcessTypical ESPC Process Opportunity AssessmentOpportunity Assessment •• Energy Savings AuditEnergy Savings Audit •• Selection of projectsSelection of projects •• Project DevelopmentProject Development •• Project ImplementationProject Implementation •• Measurement and VerificationMeasurement and Verification •• 3 ESPC ContractingESPC Contracting StateGESP –MS 16C.144Muni –MS 471.345 | School –MS 123B.65 MasterContract Vetted by Attorney General’s ESCOProvided Contract Document Office, Dept. of Admin., and Dept. of Comm. Open Book PricingNo PrescribedPricing Methodology Maximum Mark-ups and FeesNo Prescribed Mark-ups or Fees Competitive Bidding of Trade Work and Trade Work & Equipment typically negotiated Equipment with Pre-qualified Subs and with Favored Subs, Manufactures and Spec’sDistributors Savings Guarantee requires savings be met Savings Guarantee typically allows excess each year of the guaranteesavings to be carried forward Measurement &Verification GuidelinesNo Measurement &Verification Guidelines Startup & Commissioning GuidelinesNo Startup and Commissioning Guidelines Third-Party Review of Annual Measurement No Third-Party Review of Annual & Verification ReportMeasurement & Verification Report State Provides Technical, Financial & No State Assistance Provided Contractual Assistance GESP GoalsGESP Goals Promote Promote awareness and implementation of awareness and implementation of •• energy efficient and renewable energy measures energy efficient and renewable energy measures in public in public facilitiesfacilities Develop Develop and administer Master Contract for and administer Master Contract for •• Energy Savings Performance Contracting Energy Savings Performance Contracting Services for use by public Services for use by public entitiesentities PrePre--qualify Energy Service Companies (ESCO) for qualify Energy Service Companies (ESCO) for •• participation in GESP.participation in GESP. Provide technical, contractual and financial Provide technical, contractual and financial •• assistance to public entitiesassistance to public entities 4 GESP AssistanceGESP Assistance Evaluating facilities for potential energy efficiency and Evaluating facilities for potential energy efficiency and •• renewable energy investment opportunities.renewable energy investment opportunities. Analyzing the available financing options.Analyzing the available financing options. •• Soliciting and awarding siteSoliciting and awarding site--specific RFPs from ESCOs to specific RFPs from ESCOs to •• perform Energy Savings Performance Contracting Services.perform Energy Savings Performance Contracting Services. Evaluating the technical and financial feasibility of ESCO Evaluating the technical and financial feasibility of ESCO •• proposals.proposals. Negotiating and awarding of contracts with ESCOs.Negotiating and awarding of contracts with ESCOs. •• Project management oversight during construction.Project management oversight during construction. •• Providing technical assistance to ensure Measurement and Providing technical assistance to ensure Measurement and •• Verification (M&V) Plan is properly performed.Verification (M&V) Plan is properly performed. GESP ProcessGESP Process Process StepActivityMilestone 1 –InterestMeetings with DER to review GESPRequest to proceed with qualifying 2 –Opportunity Review B3 data, facility needs, Interagency Agreement Assessmentissues and goals-or - Quantify EO 11-12 compliance gapJoint Powers Agreement 3 –Define Project GoalsDefine EO 11-12 compliance goals, Issue Site-Specific RFP facility and organizational goals, Identify funds for IGA 4 –ESCO SelectionRFP evaluation and ESCO selectionIssue Work Order Contract 5 –Project DevelopmentDevelop project scope, cost, savings Issue Work Order Contract and fundingAmendment 6 –Project Installation of measuresCertification of Final ImplementationCompletion and Acceptance 7 –Performance PeriodReview M&V ReportAnnual M&V Report 5 GESP Process Master Contract Pre-qualified Contractors The State issued an RFP for Contractors (ESCOs) to pre-qualify to provide Energy Savings Performance Contracting Services to state institutions. The following eleven Contractors were qualified and have entered into a Master Contract with the Department of Commerce: AmerescoChevron ConEdisonCTS Harris CompaniesJohnson Controls McKinstryEssentionNoresco SiemensTrane Energy Services Group, subsidiary of Honeywell The Master Contract provides: Contractor’s Duties, Contractor’s Fees, Measurement and Verification Guidelines, System startup and commissioning guidelines, and general conditions GESP Process Agreement Interagency Agreement The Interagency Agreement (IA) is issued by the Department of Commerce. An IA is required for State Agencies to access the GESP Master Contract. Joint Powers Agreement The Joint Powers Agreement (JPA) is issued by the Department of Commerce. A JPA is required for Local Governmental Units and Independent School Districts to access the GESP Master Contract. 6 GESP Process Site Specific RFP Site-Specific RFP The Site-Specific RFP is issued by the governmental unit for the purpose of selecting one ESCO from the pool, who they determine is best suited to provide ESPC Services for their site. The Site-Specific RFP also provides for a second round of competition in which the responders may offer lower markups, overheads and fees for the specific site, than those they agreed to in the Master Contract. The Site-Specific RFP template is provided by the Department of Commerce. Site specific data is added by the governmental unit. GESP Process Work Order Contract GESP Work Order Contract The Work Order Contract is issued by the governmental unit to the selected ESCO for the purpose of conducting an Investment Grade Audit (IGA) and developing the Energy Savings Performance Contract project proposal. This Work Order enables the ESCO to perform design and engineering services that are required to provide guaranteed maximum pricing and guaranteed savings for the proposed Energy Conservation Measures included in the project proposal. This is also when the ESCO performs necessary pre-installation measurements and proposes their plan for the Measurement and Verification of savings. Assumptions agreed to in this process form the basis of the Energy Savings Performance Contract and are added as exhibits to the Work Order Contract via Amendment. 7 GESP Process Work Order Contract GESP Work Order Contract Amendment The amended Work Order Contract becomes the Energy Savings Performance Contract, also referred to in statute as the Guaranteed Energy Savings Agreement. Exhibit C -Savings Measurement and Verification Exhibit D -Savings Guarantee Exhibit E -Equipment Installed by Contractor Exhibit F -Construction and Installation Schedule Exhibit G -System Startup and Commissioning Plan Exhibit H -Standards of Comfort Exhibit I -Training by Contractor Exhibit J -Project Pro Forma Exhibit K -Rebates, Incentives and Grants Exhibit L -Lease Purchase Agreement Exhibit M -Contractor's Measurement and Verification Services Exhibit N -Institution's Maintenance Responsibilities Attachment 4 -Investment Grade Audit Report Attachment 5 -Certificate of Substantial Completion and Acceptance Attachment 6 -Certificate of Final Completion and Acceptance ContactsContacts Website: http://mn.gov/commerce/energy/topics /financial/Energy-Savings-Program/ Peter Berger, Eric Rehm LEED AP BD&C GESP Program ManagerGESP Project Manager 651-296-2459651-296-6446 peter.berger@state.mn.useric.rehm@state.mn.us 8