Ashlie LancasterSC Energy Office

November 29, 2012

SC Performance Contracting Initiative: Program Development and Implementation - Next Steps

Best Practices in State Performance Contracting Programs:◦ Establish a state level program to offer a

standardized process with clear direction and accountability for all participants in an effort to: implement comprehensive energy-efficiency projects

in existing buildings by increasing the number of successful performance contracts statewide

provide program participants the opportunity to procure services of qualified firms in a timely and cost-effective way

ensure minimum qualifications of ESCOs to implement successful Energy Savings Performance Contracting projects

offer all qualified firms the opportunity of equal access to work generated by the program

Best Practices in State Performance Contracting Programs:◦ State Energy Office leadership:

Provide outreach and education regarding ESPC Educate potential end-users on performance

contracting benefits and the processes to achieve a successful project

Working with the Office of the State Engineer Pre-qualify ESCOs Establish model, preapproved state contracts

Provide project oversight and technical assistance Ongoing support to facility owners doing ESPC

projects

Best Practices in State Performance Contracting Programs:◦ Streamlining the selection process:

The State Energy Office (SEO) prequalifies ESCOs through an RFQ process

Successful companies enter into a Base Agreement ESCO Contract with the SEO in order to be listed as a pre-qualified ESCO

Agencies then use a secondary selection process to select an ESCO to implement a performance contracting project in their facilities

Best Practices in State Performance Contracting Programs:◦ Streamlining the selection process:

During the secondary selection process, agencies establish a committee to select three ESCOs from the prequalified list to provide additional information specific to their project’s Technical Facility Profile and conduct interviews

Based on the recommendation of the selection committee, the top-ranked respondent is invited to enter into an audit contract

Best Practices in State Performance Contracting Programs:◦ Streamlining the selection process:

Upon satisfactory completion of the Investment Grade Audit, the Agency will have the option to execute an Energy Savings Performance Contract with the ESCO to implement the recommended project

Model contract documents, detailing the responsibilities of each party, along with Project Oversight Agreements, including the SEO-ESCO Base Agreement and a Facility Owner MOU, provide protections for both agencies and ESCOs

Best Practices in State Performance Contracting Programs:◦ Discussion:

What model is right for South Carolina and how do we get there?

Is there support to move forward with establishing an Energy Performance Contracting Program through the State Energy Office?

How can education and outreach increase the number of projects in our state?

Is there a benefit to establishing a local chapter of the ESC?

Forum for education and outreach Performance contracting training sessions Model documents review

www.energy.sc.gov

South Carolina Energy Office408 Wade Hampton BuildingColumbia, S.C. 29201(803) 737-8030