About the Program

The Performance Contracting Program is defined in Idaho Code 67-5711D. This program provides a method for entering into a contract with a qualified provider or qualified energy-service company (ESCO) for evaluation, recommendation, and implementation of one or more cost-savings measures. Agencies will benefit by reduced overall energy costs and a reduction in energy consumption. They may be in the form of a guaranteed energy savings performance contract or a shared savings contract.

In general, large buildings (over 40,000 sqft) or large consumers of electricity (over $40,000 per year) are candidates for this program. Other possible candidates would include:

• old, obsolete, or inefficient building energy systems and equipment
• systems or buildings with recurring problems that take up significant maintenance costs (labor or equipment)
• systems requiring improvements which your Agency does not have the manpower to address

These candidates, who are on the NAESCO Accredited List and the DOE Qualified list, can have the necessary improvements/upgrades made now with no up-front capital expenditures. The expenses are paid through the energy savings that result (guaranteed) through this energy performance contracting method. Your energy bills are reduced and the savings realized are used to pay the contractor for the effort (usually over a 7-10 year period).

Performance Contracting is a partnership established between the ESCO, the Agency, and the Division of Public Works (DPW). The DPW/Agency team provides a single contract for a complete package of services from an ESCO. The ESCO provides a facility energy audit; develops a cost-effective proposal; as well as installs, commissions, finances, and monitors the project. The ESCO uses the expertise and experience of the DPW/Agency team to provide quality assurance, project negotiation, and overall project management. In addition, monitoring and verification procedures are structured so that all costs are paid from the savings—the ESCO guarantees the energy savings!

The ESCO will:

• identify and evaluate the energy-savings opportunities
• manage the project from design through installation with long term monitoring
• develop designs and specifications
• arrange financing
• provide staff training
• provide on-going maintenance services
• GUARANTEE the savings!

Project opportunities include energy management systems, interior and exterior lighting, boiler replacement, repair of steam distribution systems, variable speed drives, and envelope projects such as wall insulation and energy-efficient windows.

Successes

Performance contracting has been used successfully in community and technical colleges, correctional facilities, hospitals, office buildings, museums, and other facilities nationwide. The Energy Services Coalition (Western Regional Coalition) documented many projects and provides excellent resources for performance contracting.

• #02-239 Performance Contract, Idaho State University, Pocatello, Idaho
• #02-281 Performance Contract, Boise State University, Boise, Idaho
• #03-006 Performance Contract, Capital Mall, Boise, Idaho
• #04-065 Performance Contract, Dept of Correction, Boise, Idaho (pending)
• State of Washington
• State of Utah Case Study in ESCOs
• Other success stories and resources
• Rebuild America

Energy Savings Ideas and Calculators

• Click here for energy saving ideas!
• USA Technologies energy saving calculator
• Energy Star energy saving calculators

Performance Contracting Procedures

To establish a Performance Contracting project:

1. The Agency reviews a list of ESCOs that might qualify (others might also qualify):
• http://www.naesco.org/accreditation/companies.aspx
• http://www1.eere.energy.gov/femp/pdfs/sespc_wrkshp_coleman.pdf
• http://www.nrel.gov/docs/fy03osti/34312.pdf
• http://www1.eere.energy.gov/femp/pdfs/bamf_super_espc.pdf
2. The Agency prepares a Request for Proposal for Energy Performance Contracting Service (RFQ).
3. The Agency submits the form to the Division of Public Works (DPW) for review, coordination, and issuance.
4. After the ESCO responds to the proposal, the DPW/Agency team prepares the Technical Energy Audit & Project Development Agreement.
5. Once the agreement is established, the ESCO audits the facility under consideration, prepares their final contractual proposal, and then submits it to the DPW/Agency team.
6. The last step in obtaining the contract is negotiating an Energy Performance Contract. This Contract is between the DPW/Agency team and the ESCO, and is issued by DPW. The contract addresses the Agency, DPW, and ESCO responsibilities as well as contractual completion and closeout procedures.
7. Once the contract is negotiated, the ESCO is under contract to proceed with the project.