Energy Savings Performance Contracting + State Assistance = Lindsay Wimmer, CERTs / Dec. 13th, 2013 GESP Workshop, Region 9 Development Commission

CERTs Mission: Connect individuals and their communities to the resources they need to identify and implement community-based clean energy projects

CERTs: Our Misson

• Energy Savings Performance Contracting (ESPC)

• Guaranteed Energy Savings Program (GESP) • Benefits • Process • Getting Started • Questions

What I’ll cover today

“The use of guaranteed savings gained from the maintenance, operations and utilities budgets, as capital to make needed upgrades to your building environmental systems, that is financed over a specified period of time.”

- U.S. Department of Energy

Energy Savings Performance Contracting (ESPC)

State technical assistance to implement energy efficient & renewable energy measures in public facilities through energy savings performance contracting

What is GESP?

Contractual, Financial, & Design

6

Reduce

Energy Use

Operation & Maintenance

Costs

Renew

Facility Infrastructure

Occupant Comfort, Health &

Safety

Achieve GHG Emission

Reduction

Job Creation

Use of Renewable Energy

How can GESP help you?

Budget Neutral – No Bond Funds Required

Energy Conservation Measures: • High-efficiency boilers and chillers • HVAC system redesign • Efficient lighting • Heat recovery equipment • Increasing water conservation • Solar energy systems • Ground-source heating & cooling

What are the upgrades?

• Upfront equipment & labor payment: Lease • Lease Repayment: Repurposed from your existing budget

– Energy Budget • Gas • Electric • Fuel Oil • Water • Sewer

– Maintenance Budget • Damage • Administrative • Equipment & Supplies

Budget Neutral – No Bond Funds Required

How is the work funded?

• Deep Energy Savings: Leverage short-term

payback upgrades to pay for longer-term payback upgrades

• Complete Process: Project Identification to Implementation

• Repurpose dollars vs. Bonding, levies, or property taxes

• Guarantee on energy savings

What are the benefits?

• Assistance from the State

• Master Contract with Prequalified ESCO’s

• Open Book Pricing vs Unknown Pricing Methodology

• Maximum Mark-Ups and Fees vs None Prescribed

• Competitive Bidding of Tradework and Equipment

• Third Party Review of Measurement & Verifications

• GreenStep Cities Progress

What are the benefits of GESP?

GESP Process What’s the GESP process?

GESP is a process that finds deep energy efficiency needs, renewable opportunities, and implements solutions. • ESCOs: Help develop project, find initial

funding, implement project, and measure & verify savings

• State: Assist YOU with each step of the process

Process: “Turnkey” Implementation Turnkey Implementation

• Answer Questions • Get all the players in the room or onboard • Begin GESP Opportunity Assessment

• Needs, Issues, and Goals

• Annual Utility Budget

• Move forward with good opportunity and commitment

Getting started with GESP

Lindsay Wimmer wimm0020@umn.edu 612.625.9634 University of Minnesota's Regional Sustainable Development Partnerships & Extension

Questions?

Peter Berger Eric Rehm Minnesota Department of Commerce Division of Energy Resources