The Guaranteed Energy Savings Program (GESP) project development process for public entities can be described as a four-step process that includes:
Opportunity Assessment Phase
During this phase, the public entity works with DER to review their facility needs, issues and goals; utility data and building profiles; prior efficiency studies and efforts to qualify them for the GESP. Public entities, working with DER, develop a general project scope including potential energy-savings and renewable energy improvement opportunities along with needs and issues they would like to address through implementation of an Energy Savings Performance Contract (ESPC). State agencies will need to enter into an Interagency Agreement with the Department of Commerce to utilize the state GESP Master Contract. Local units of government and school districts will first need to enter into a Joint Powers Agreement with the Department of Commerce.
During this phase, using state provided templates; a public entity advertises a Site-specific Request for Proposal (SSRFP) to pre-qualified ESCOs to provide energy savings performance contracting services. Next, the public entity, using the GESP Master Contract, issues a Work Order Contract to the selected ESCO to perform an Investment Grade Audit (IGA) and develop a Project Proposal based on their detailed analysis of facilities included in the SSRFP. The IGA Report and Project Proposal establish the basis for the ESPC, including a guaranteed maximum price and annual guaranteed savings associated with the Energy Conservation Measures (ECM) to be implemented.
During this phase, the ESCO will obtain quotes for project financing and the public entity will amend the Work Order Contract to include the agreed upon ECMs and associated guaranteed maximum price and annual guaranteed savings. Once the Lease Purchase Agreement and Work Order Contract Amendment have been approved, the ESCO completes the engineering and design specifications, bids the work to be performed and oversees the construction and commissioning work.
During this phase, the ESCO follows the Savings Measurement & Verificaiton (M&V) plan developed in the investigation phase to quantify the energy savings achieved, and annually presents the findings in a report to the public entity and DER. In the event that the annual guaranteed savings are not achieved, the ESCO is obligated to make payment to the public entity for the guarantee shortfall.