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1. Sustainability on Campus:Green Investment Green ReturnsIntroduction to Commonwealth Of Pennsylvanias Guaranteed Energy Savings ProgramDecember 5, 2003Larry F. Myers, PE, CEMPenn State Facilities Engineering Institute
2. Agencys Point of Contact Department of General Services,
Bureau of Engineering & Architecture
GESA Program Facilitator
Tom Rados, PE
Assistant Director
Penn State Facilities Engineering Institute
Assist with implementing the GESA program
Larry F. Myers, PE, CEM
Energy Management Consultant
4. Cost Savings Potential For Guaranteed Energy Savings Projects Current Annual Utility Expenditures:
$90,000,000 / year
Assume 20% Savings:
$18 million / year
10-Year Cumulative Dollar Savings:
$180 million
Note: This is simple Go No Go test that an ESCO will use to determine their interest in your project.
For Example:
Office Building has $1,000,000 Annual Utilities
20% Savings = $200,000 over 10 years = $2,000,000 Project
5. Key Provisions Of The Guaranteed Energy Savings Act
Procurement Process: Competitive sealed proposal (RFP)
Contract Provisions:
Amount of savings in any year shall be guaranteed to the extent necessary to make payments under the contract during that year
Written guarantee that annual energy cost savings will meet or exceed the cost of energy conservation measures
6. Key Provisions Of The Guaranteed Energy Savings Act (continued) Contract Provisions (continued):
Payments may be made over a period of time not to exceed ten years.
Must provide for termination due to non-appropriations.
Allows use of operating, utilities, or capital expenditure funds, and external monetary funding sources.
Allows installment payments.
8. GESA Small ESCO Process Flow
9. Commonwealth of PA Qualified ESCOsSee contact information on next slide Abacus Engineered Systems
Alliant Energy Integrated Services
Ameresco Energy Services
Building Controls and Services
CLT Efficient Technologies Group
CMS Viron Energy Services
Custom Energy
Energy Systems Group
First Energy Solutions
Honeywell
Johnson Controls
Noresco
PPL Energy Services
Sempra Energy Solutions
Siemens Building Technologies
The Trane Company
Vestar
11. What It Means To Be Qualified
Three-year qualification period (to June 2006)
ESCOs can apply at any time but are only qualified for remainder of period
No more than 3 ESCOs invited by agency to submit RFPs
ESCOs required to respond to all RFPs when requested
ESCOs agree to comply with all terms and conditions of RFP and standard contracts
12. General Procurement Procedures Agency selects project site(s)
Agency requests DGS approval to issue RFP
Agency issues Request for LOIs to pool of qualified ESCOs
Facilitator available for questions
Project site data provided
Agency receives LOIs from interested ESCOs
Agency reviews qualifications and LOIs of interested ESCOs
Written AFQ submissions
Client references
LOI Submission
Agency evaluates ESCOs and selects 3 ESCOs to receive the RFP
13. General Procurement Procedures (continued) Agency issues RFP to the 3 selected ESCOs
Conduct site visits
Agency receives RFP responses
Agency conducts evaluation
Written proposals
Client references
Oral interviews
Agency compiles and generates evaluation rankings
Agency selects Project ESCO
(Note: No costs have been incurred by the agency to this point)
Agency enters into Investment Grade Audit contract with Project ESCO
Upon acceptance of the IGA, the agency negotiates and executes an Energy Performance Contract with the Project ESCO
14. Letters of Interest (LOI)Response to Request for Letters of Interest Introduces project to all Qualified ESCOs
Attachment A Technical Facility Profile
General Facility Data
Operating Data
Physical Data
Energy Systems Data
Possible Improvement Opportunities
Energy and Water Consumption Data
Is Project consistent with the ESCOs business plan?
Interested ESCOs should:
Display an interest in the project
Address the Technical Facility Profile
Describe experience with similar facilities
Describe experience with similar scope of work
Describe other value-added services
15. THE RFPObtain a proposal from the 3 best qualified ESCOs Establishes the project schedule
Defines the evaluation criteria
Experience, Management, Technical, Financial
Highlights special project terms and conditions
Technical & Contractual
16. The Proposal Response to RFP KEY INFORMATION REQUESTED
PRELIMINARY TECHNICAL PROPOSAL
Qualifications Project Team Members
Project Work Plan and Milestones
Specific Training Provisions
Proposed Project Financing
Annual Report
17. The Proposal Response to RFP(continued) Preliminary Technical Site Assessment
Energy Baseline Calculation Methodology
Projectspecific Commissioning Plan
Procedure for Calculating Energy and Cost Savings
Equipment Maintenance Plan
18. The Proposal Response to RFP (continued) Subcontractor Information
Corporate Background
Technical Qualifications
Financial References
Project-specific Savings Measurement and Verification Plan
19. The Proposal Response to RFP (continued) PRELIMINARY TECHNICAL AUDIT REPORT
Identification of Preliminary ECMs
Technical data and assumptions used in this analysis
Methods used to develop baseline consumption
Detailed energy and operational cost savings calculations
Projected unit energy savings
Methods for calculating and documenting operational cost savings
20. The Proposal Response to RFP (continued) PRELIMINARY COST PROPOSAL
ESCO Fees as a Percentage of Hard Costs
Investment Grade Energy Audit
Design Engineering Fees
Construction Management
System Commissioning
First-year Training Fees
Annual Service Fees
Construction Financing
Contingency Costs
21. The Proposal Response to RFP (continued) PRELIMINARY COST PROPOSAL (continued)
ESCO Preliminary Project Cash Flow Analysis
Financed Project Costs and Term
Annual Interest Rate
Construction Months
Utility/Fuel Escalation Rate
Annual Fees Escalation Rate
ESCO Fees
Total Cost Savings (utility/fuel, operational)
Guaranteed Cost Savings
Financing Payment
Net Savings
22. Web Based Assistance Provided by Department of General Services and Penn State Facilities Engineering Institute Description of Act 57: GESA
List of PA Qualified ESCOs
Standard Documents package
Links to Web Sites of Related Organizations
Historical PA Project Information
23. Commonwealth Technical Assistance Resources https://fei.psu.edu/ESCO/GESA_Home.asp
GESA Information
DGS Web Site
Program Description
Standard Documents
Active Projects
ESCO & Industry Links
24. Review of Proposal Forms Proposal Submission Documents
Attachment A
1.0.1 ESCOs ECM Summary Form
1.0.2 ESCOs Projected Annual Energy Savings Data Form
1.0.3 ESCOs Projected Annual Energy Savings Data Form in MMBtus
1.1 ESCOs Team Member Qualification Form
1.6 ESCO Project History and Client Reference Form
Attachment A-1
A-1 Subcontractors Qualifications Form
Attachment B
B-1 ESCOs Proposed Project Cost Form
B-2 ESCOs Preliminary Annual Cash Flow Analysis Form
25. http://www.naesco.org/
26. Project Status Delegated
DGS has assigned project to agency
Request for LOI
Agency notifies all ESCOs
LOI Review
Agency reviews ESCO Letters of Interest
RFP Pending
Agency has selected 3 ESCOs to work with. RFP not available.
RFP Issued
RFP has been sent to the 3 ESCOs Proposal Review
Proposals have been received from selected ESCOs.
IGA Pending
One ESCO has been selected to perform an Investment Grade Audit.
Contracting
Investment Grade Audit has been performed. The agency is negotiating the completion of the project.
Construction
Project is being performed.
Repayment
Project is complete and Guaranteed Savings are being accumulated.
27. Question & Answer Session