| Energy Savings Performance Contracting |
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The Oregon Department of Energy has developed a Guide to Energy Savings Performance Contracting. The Guide includes documents for use by any public or private entity that wants to select and hire a company for an Energy Savings Performance Contract (ESPC) project (including a state-approved contract template). You can download the Guide in Word by clicking on the link in the right-hand column. This is a 213-page document. If you prefer to have the document on a disk, please contact Brandon Adams at the Oregon Department of Energy toll-free in Oregon at 1-800-221-8035 or direct at (503) 378-5054.
These contract documents in the Guide were developed by the Oregon Department of Administrative Services, Department of Energy, Employment Department, and the Department of Justice for the Employment Building energy savings performance contract. The documents include all the State of Oregon provisions. They follow a process that is endorsed by the states, federal agencies and energy service companies that are members of the Energy Services Coalition. The Energy Services Coalition is a national nonprofit organization composed of a network of experts from a wide range of organizations working together at the state and local level to increase energy efficiency and building upgrades through energy savings performance contracting.
The ESPC process consists basically of four steps:
Step 1 - Exemption request
Step 2 - Selection of ESCO
Step 3 - Project implementation
Step 4 - Evaluation
| Step 1 - * Important* - Exemption request (public entity) |
| Because an Energy Services Company (ESCO) is selected based on qualifications rather than low bid, any school, state or local government organization that conducts an ESPC project must formally request an exemption from the state law requiring competitive bidding. |
This is not to say that ESPC projects do not include competitive selection of construction materials and labor. The ESCO that is ultimately responsible for the project’s performance must be selected based on a combination of costs and qualifications.
An exemption involves making a simple request to your School Board (for schools), the Oregon Department of Administrative Services (for state agencies), or your county Board of Commissioners (for county agencies). You may be required to hold a public hearing.
For more information about the exemption request, contact Betty Merrill at the Oregon Department of Energy toll-free in Oregon at 1-800-221-8035 or direct at (503) 378-6510.
Step 2 – Selection of the Energy Services Company
(ESCO) |
Step 2 involves the selection process. The Request For Proposal (RFP) has a number of attachments and exhibits because state law requires that the bidder see all contractual elements of each phase before responding to the RFP. These attachments and exhibits are not completed until the project implementation phase, however.
The process and the template documents are in MS Word format so that you can use them as working documents. Fill in the yellow highlighted in these documents with your project's information.
| Step 3 – Project Implementation |
In Step 3, the Project Implementation, the process can appear confusing because it consists of three related contracts for each phase of the project.
In Phase I, the ESCO performs an investment grade audit.
In Phase II, the ESCO enters into a design/build contract for the selected energy efficiency measures.
In Phase III, the ESCO enters into a contract for measurement and verification services. These services may be provided by a third party, if desired.
Documents the ESCO provides are also noted.
| Step 4 – Evaluation and Follow-up |
The final step involves reviewing an evaluation of the project submitted by the ESCO after one full year of operation.
The Oregon Department of Energy may also write a case study of the project to share with other schools, state agencies and local governmental agencies.
Where do I get assistance?
The Oregon Department of Energy can provide help to develop solicitations, select firms, assess the viability of proposals, and review measurement and verification plans.
Contact:
Oregon Department of Energy
625 Marion Street, NE
Salem, OR 97301-3737
1-800-221-8035 (toll-free)
Brandon Adams, 503-378-5054 (direct) e-mail:
brandon.adams@state.or.us
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Guide to Energy Savings Performance Contracting (PDF - 173 pages)
Energy Saving Performance Contract (ESPC) overview
Energy Services Companies (ESCOs)
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