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State Energy Savings Performance Contracting

State Energy Savings Performance Contracting

Jocelyn Durkay 11/15/2013

Electric meterEnergy savings performance contracts (ESPCs) help building owners increase energy efficiency and lower energy bills at no expense to the owner, since energy savings are guaranteed to pay for improvements. An energy services company (ESCO) analyses the building’s energy usage, identifies possible conservation measures and agrees on improvements with the building operator, owner or government agency. The ESCO guarantees that the savings from efficiency measures will pay the monthly financing costs of the loan for the upgrades, which may be arranged through the ESCO or independently. If the savings are not enough to pay the loan, the contract guarantees the ESCO pays the difference. After the loan is paid, energy saving are kept by the owner or operator. By overcoming the technical barriers and high upfront costs, performance contracting can makes energy efficiency a wise business decision for many owners, driving efficiency investments and expanding employment opportunities.

Although all 50 states, Puerto Rico and Washington, D.C., have statutes allowing companies to offer energy savings performance contracts, success varies because of variations in the approach, the state’s degree of involvement and other factors. States can authorize ESPCs for state agencies, counties, municipalities, school districts, state colleges and universities and public agencies. As state energy codes typically focus on new construction or significantly renovations, ESPCs can help fill the gap by allowing owners of existing buildings to reap the economic and comfort benefits of efficiency.

Some states have taken steps to ensure the success of performance contracting by identifying and prescreening eligible ESCOs, establishing offices or programs to monitor ESPCs, connecting ESCOs with building owners and offering outreach, education and support. ESCO-driven investments in 10 states resulted in more than $3.4 billion of investments and reduced carbon emission by 488,000 tons. Below are examples of state initiatives that work to ensure successful performance contracting programs.

  • The Colorado Energy Office has supported more than 146 completed projects and 26 active projects, for a total of $294 million in construction as of late 2012. The office provides technical assistance to public agencies, monitors and establishes standards for ESCOs, maintains contract documents, and provides education and outreach.
  • In 2013 Hawaii’s performance contracting program drove more than $171 million in energy efficiency investments, the most of any state, according to the Energy Services Coalition. The performance contracting program, housed in the State Energy Office, offers technical assistance and maintains a list of pre-qualified ESCOs and educational documents.
  • Massachusetts’ Leading by Example and Green Communities programs in the Executive Office of Energy and Environmental Affairs, Department of Energy Resources helps state and local government realize savings through ESPCs. The Division of Capital Asset Management and the Department of Housing and Community Development also oversee ESPC projects. The state’s Energy Performance Contracting Program lists current and completed projects.
  • The Pennsylvania Department of General Services Energy Management Office with the Governor’s Green Government Council oversees ESPCs with state agencies or local governments. The organization has developed a procurement and contracting process, pre-screened ESCOs, designed new approaches for under-served customers and met aggressive goals to reduce energy consumption in state buildings by 18 percent. State agencies can also receive assistance from the Pennsylvania State Facilities Engineering Institute.
  • Utah’s efforts have resulted in more than $165 million of investments in ESPC projects through the leadership of the Division of Facilities Construction and Management. The program is now directing its focus on large state university and college campuses. The state’s comprehensive program was initiated by legislation directing the state to undertake "aggressive programs to reduce energy use in state facilities in order to reduce operating costs of government and to set an example for the public.”
  • The Washington state Department of Enterprise Services is responsible for overseeing ESPCs. As of 2012, the state ESPC program has been involved in more than $300 million of energy construction projects since its 1986 inception, resulting in a $15 million a year reduction in utility costs for public facilities. In addition to state agencies, counties, municipalities, school districts, state colleges and universities and public agencies, the Department of Enterprise Services specifically advertises technical assistance for port districts, libraries, hospitals and health districts.

Chart: Enabling Statutes for ESPCs

A-C | D-G | H-I |J-L | M | N | O-P | Q-S | T-V | W-Z

State

State Agencies

Counties

Municipalities

School Districts

State Colleges and Universities

Public Agencies

Alabama

Ala. Code §41-16-140

Ala. Code §41-16-140

Ala. Code §41-16-140

Ala. Code §41-16-140

Ala. Code §41-16-140

Ala. Code §41-16-140

Alaska

The state authorizes limited competition procurements under Alaska Stat. §36.30.305 through §36.30.308, although no specific sectors are specifically authorized

Arizona

Ariz. Rev. Stat. Ann. §34-105

Ariz. Rev. Stat. Ann. §34-105

Ariz. Rev. Stat. Ann. §34-105

Ariz. Rev. Stat. Ann. §213.01

Ariz. Rev. Stat. Ann. §34-105

Ariz. Rev. Stat. Ann. §34-105

Arkansas

Ark. Stat. Ann. §19-11-1201 through §19-11-1206

Ark. Stat. Ann. §19-11-1201 through §19-11-1206

Ark. Stat. Ann. §19-11-1201 through §19-11-1206

Ark. Stat. Ann. §19-11-1201 through §19-11-1206

Ark. Stat. Ann. §19-11-1201 through §19-11-1206

Ark. Stat. Ann. §19-11-1201 through §19-11-1206

California

Cal. Public Resources Code §25410

Cal. Public Resources Code §25410

Cal. Public Resources Code §25410

Cal. Education Code §17650-17653

Cal. Public Resources Code §25410

Cal. Public Resources Code §25410

Colorado

Colo. Rev. Stat. §24-30-2001 through §24-30-2003

Colo. Rev. Stat. §24-30-2001 through §24-30-2003

Colo. Rev. Stat. §24-30-2001 through §24-30-2003

Colo. Rev. Stat. §29-12.5-101 through §29-12.5-104

Colo. Rev. Stat. §24-30-2001 through §24-30-2003

Colo. Rev. Stat. §24-30-2001 through §24-30-2003

Connecticut

Conn. Gen. Stat 11-80, §123

Conn. Gen. Stat 11-80, §123

Conn. Gen. Stat 11-80, §123

Conn. Gen. Stat 11-80, §123

Conn. Gen. Stat 11-80, §123

Conn. Gen. Stat 11-80, §123

Delaware

Del. Code Ann. tit. 29 ch.69, §6971

Del. Code Ann. tit. 29 ch.69, §6971

Del. Code Ann. tit. 29 ch.69, §6971

Del. Code Ann. tit. 29 ch.69, §6971

Del. Code Ann. tit. 29 ch.69, §6971

Del. Code Ann. tit. 29 ch.69, §6971

Florida

Fla. Stat. §489.145

Fla. Stat. §489.145

Fla. Stat. §489.145

Fla. Stat §1013.23

Fla. Stat §1013.23

Fla. Stat. §489.145

Georgia

Ga. Code §50-37-1 through §50-37-8

Ga. Code §50-37-1 through §50-37-8

Ga. Code §50-37-1 through §50-37-8

Ga. Code §50-37-1 through §50-37-8

Ga. Code §50-37-1 through §50-37-8

Ga. Code §50-37-1 through §50-37-8

Hawaii

Hawaii Rev. Stat. §36-41

Hawaii Rev. Stat. §36-41

Hawaii Rev. Stat. §36-41

Hawaii Rev. Stat. §36-41

Hawaii Rev. Stat. §36-41

Hawaii Rev. Stat. §36-41

Idaho

Idaho Code §67-5711D

Idaho Code §67-5711D

Idaho Code §67-5711D

Idaho Code §67-5711D

Idaho Code §67-5711D

Idaho Code §67-5711D

Illinois

Ill. Ann. Stat ch. 515/1, §50

Ill. Ann. Stat ch. 515/1, §50

Ill. Ann. Stat ch. 515/1, §50

Ill. Ann. Stat. ch.5, §105, Article 19b

Ill. Ann Stat. ch.62/1, §110; Ill. Ann. Stat. ch.805, §110

Ill. Ann. Stat ch. 515/1, §50

Indiana

Ind. Code §4-13.6-8; Ind. Code §4-13.5-1.5; Ind. Code §36-1-12.5

Ind. Code §4-13.6-8; Ind. Code §4-13.5-1.5; Ind. Code §36-1-12.5

Ind. Code §4-13.6-8; Ind. Code §4-13.5-1.5; Ind. Code §36-1-12.5

Ind. Code §36-1-12.5

Ind. Code §21-33-4

Ind. Code §4-13.6-8; Ind. Code §4-13.5-1.5; Ind. Code §36-1-12.5

Iowa

Iowa Code §473.13A; Iowa Code §473.19 and §473.19A; Iowa Code §473.20

Iowa Code §473.13A; Iowa Code §473.19 and §473.19A; Iowa Code §473.20

Iowa Code §473.13A; Iowa Code §473.19 and §473.19A; Iowa Code §473.20

Iowa Code §473.13A; Iowa Code §473.19 and §473.19A; Iowa Code §473.20

Iowa Code §473.13A; Iowa Code §473.19 and §473.19A; Iowa Code §473.20

Iowa Code §473.13A; Iowa Code §473.19 and §473.19A; Iowa Code §473.20

Kansas

Kan. Stat. Ann, 75-37, 125

Kan. Stat. Ann, 75-37, 125

Kan. Stat. Ann, 75-37, 125

Kan. Stat. Ann, 75-37, 125

Kan. Stat. Ann, 75-37, 125

Kan. Stat. Ann, 75-37, 125

Kentucky

KY Rev. Stat. §56.770 through §56.784

KY Rev. Stat. §45A.343 through §45A.460; KY Rev. Stat. §58.600

KY Rev. Stat. §45A.343 through §45A.460 ; KY Rev. Stat. §58.600

KY Rev. Stat. §45A.343 through §45A.460; KY Rev. Stat. §157.420(5)

KY Rev. Stat. §56.770 through §56.784

KY Rev. Stat. §56.770 through §56.784 ; KY Rev. Stat. §58.600

Louisiana

La. Rev. Stat. Ann. §39:251-257; La. Rev. Stat. Ann. §39:1496.1; La. Rev. Stat. Ann. §40:1730.49

La. Rev. Stat. Ann §33:4547.1(B); La. Rev. Stat. Ann. §4547.1 through 3

La. Rev. Stat. Ann §33:4547.1(B); La. Rev. Stat. Ann. §4547.1 through 3

La. Rev. Stat. Ann. §39:251-257; La. Rev. Stat. Ann. §39:1496.1; La. Rev. Stat. Ann. §40:1730.49

La. Rev. Stat. Ann. §39:251-257; La. Rev. Stat. Ann. §39:1496.1; La. Rev. Stat. Ann. §40:1730.49

La. Rev. Stat. Ann. §39:251-257; La. Rev. Stat. Ann. §39:1496.1; La. Rev. Stat. Ann. §40:1730.49

Maine

Me. Rev. Stat. Ann. tit.5 §20005-A; Me. Rev. Stat. Ann. tit.5 §1770

Me. Rev. Stat. Ann. tit.5 §20005-A; Me. Rev. Stat. Ann. tit.5 §1770

Me. Rev. Stat. Ann. tit.30-A §5953-C ; Me. Rev. Stat. Ann. tit.5 §1770

Me. Rev. Stat. Ann. tit.30-A §5953-C; Me. Rev. Stat. Ann. tit.5 §1770

Me. Rev. Stat. Ann. tit.5 §20005-A; Me. Rev. Stat. Ann. tit.5 §1770

Me. Rev. Stat. Ann. tit.5 §20005-A; Me. Rev. Stat. Ann. tit.5 §1770

Maryland

Md. State Finance and Procurement Code Ann. §4-806; Md. State Finance and Procurement Code Ann. §11-101; Md. State Finance and Procurement Code Ann. §12-301-303

Md. State Finance and Procurement Code Ann. §4-806; Md. State Finance and Procurement Code Ann. §11-101; Md. State Finance and Procurement Code Ann. §12-301-303

Md. State Finance and Procurement Code Ann. §4-806; Md. State Finance and Procurement Code Ann. §11-101; Md. State Finance and Procurement Code Ann. §12-301-303

Md. State Finance and Procurement Code Ann. §4-806; Md. State Finance and Procurement Code Ann. §11-101; Md. State Finance and Procurement Code Ann. §12-301-303

Md. State Finance and Procurement Code Ann. §4-806; Md. State Finance and Procurement Code Ann. §11-101; Md. State Finance and Procurement Code Ann. §12-301-303

Md. State Finance and Procurement Code Ann. §4-806; Md. State Finance and Procurement Code Ann. §11-101; Md. State Finance and Procurement Code Ann. §12-301-303

Massachusetts

Mass. Gen. Laws ch.25A, §11C; Mass. Gen. Laws ch.25A §11I

Mass. Gen. Laws ch.25A, §11C; Mass. Gen. Laws ch.25A §11I

Mass. Gen. Laws ch.25A, §11C; Mass. Gen. Laws ch.25A §11I

Mass. Gen. Laws ch.25A, §11C; Mass. Gen. Laws ch.25A §11I

Mass. Gen. Laws ch.25A, §11C; Mass. Gen. Laws ch.25A §11I

Mass. Gen. Laws ch.25A, §11C; Mass. Gen. Laws ch.25A §11I

Michigan

Mich. Comp. Laws §18.1253

Mich. Comp. Laws §46.11c

Mich. Comp. Laws §41.75b; Mich. Comp. Law §117.5f; Mich. Comp. Laws §68.36; Mich. Comp. Laws §78.24b

Mich. Comp. Law §380.1274a

Mich. Comp. Laws §389.122a

Mich. Comp. Laws §18.1253

Minnesota

Minn. Stat. §16C.14; Minn. Stat. §471.345

Minn. Stat. §16C.14; Minn. Stat. §471.345

Minn. Stat. §16C.14; Minn. Stat. §471.345

Minn. Stat. §123B.65

Minn. Stat. §16B.4821

Minn. Stat. §16C.14; Minn. Stat. §471.345

Mississippi

Miss. Code §31-7-14

Miss. Code §31-7-14

Miss. Code §31-7-14

Miss. Code §31-7-14

Miss. Code §31-7-14

Miss. Code §31-7-14

Missouri

Mo. Rev. Stat.§8.231; Mo. Rev. Stat. §8.805

Mo. Rev. Stat.§8.231; Mo. Rev. Stat. §8.805

Mo. Rev. Stat.§8.231; Mo. Rev. Stat. §8.805

Mo. Rev. Stat.§8.231; Mo. Rev. Stat. §8.805

Mo. Rev. Stat.§8.231; Mo. Rev. Stat. §8.805

Mo. Rev. Stat.§8.231; Mo. Rev. Stat. §8.805

Montana

Mont. Code Ann. §90-4-1101 through §90-4-11-09

Mont. Code Ann. §90-4-1101 through §90-4-11-09

Mont. Code Ann. §90-4-1101 through §90-4-11-09

Mont. Code Ann. §90-4-1101 through §90-4-11-09

Mont. Code Ann. §90-4-1101 through §90-4-11-09

Mont. Code Ann. §90-4-1101 through §90-4-11-09

Nebraska

Neb. Rev. Stat. §66-1062 through §66-1066

Neb. Rev. Stat. §66-1062 through §66-1066

Neb. Rev. Stat. §66-1062 through §66-1066

Neb. Rev. Stat. §66-1062 through §66-1066

Neb. Rev. Stat. §66-1062 through §66-1066

Neb. Rev. Stat. §66-1062 through §66-1066

Nevada

Nev. Rev. Stat. §338.1905 through §338.1907

Nev. Rev. Stat. §338.1905 through §338.1907

Nev. Rev. Stat. §338.1905 through §338.1907

Nev. Rev. Stat. §338.1905 through §338.1907

Nev. Rev. Stat. §338.1905 through §338.1907

Nev. Rev. Stat. §338.1905 through §338.1907

New Hampshire

N.H. Rev. Stat. §21-I:19a through e

N.H. Rev. Stat. §21-I:19a through e

N.H. Rev. Stat. §21-I:19a through e

N.H. Rev. Stat. §21-I:19a through e

N.H. Rev. Stat. §21-I:19a through e

N.H. Rev. Stat. §21-I:19a through e

New Jersey

N.J. Rev. Stat. §52:34-25

N.J. Rev. Stat. §52:34-25

N.J. Rev. Stat. §52:34-25

N.J. Rev. Stat. §52:34-25

N.J. Rev. Stat. §52:34-25

N.J. Rev. Stat. §52:34-25

New Mexico

N.M. Stat. Ann. §6-23-1 through §6-23-10

N.M. Stat. Ann. §6-23-1 through §6-23-10

N.M. Stat. Ann. §6-23-1 through §6-23-10

N.M. Stat. Ann. §6-23-1 through §6-23-10

N.M. Stat. Ann. §6-23-1 through §6-23-10

N.M. Stat. Ann. §6-23-1 through §6-23-10

New York

N.Y. Energy Law §9-101 through §9-103

N.Y. Energy Law §9-101 through §9-103

N.Y. Energy Law §9-101 through §9-103

N.Y. Energy Law §9-101 through §9-103

N.Y. Energy Law §9-101 through §9-103

N.Y. Energy Law §9-101 through §9-103

North Carolina

N.C. Gen. Stat. §143-129; N.C. Gen. Stat. §143-64.17B

N.C. Gen. Stat. §143-129; N.C. Gen. Stat. §143-64.17B

N.C. Gen. Stat. §143-129; N.C. Gen. Stat. §143-64.17B

N.C. Gen. Stat. §143-129; N.C. Gen. Stat. §143-64.17B

N.C. Gen. Stat. §143-129; N.C. Gen. Stat. §143-64.17B

N.C. Gen. Stat. §143-129; N.C. Gen. Stat. §143-64.17B

North Dakota

N.D. Cent. Code §48-05-09 through §48-05-13

N.D. Cent. Code §48-05-09 through §48-05-13

N.D. Cent. Code §48-05-09 through §48-05-13

N.D. Cent. Code §48-05-09 through §48-05-13

N.D. Cent. Code §48-05-09 through §48-05-13

N.D. Cent. Code §48-05-09 through §48-05-13

Ohio

Ohio Rev. Code Ann. §156.01 through .05

Ohio Rev. Code Ann §307.04.01

Ohio Rev. Code Ann. §505.26.4; Ohio Rev. Code Ann. §717.02

Ohio Rev. Code Ann. §3313.372

Ohio Rev. Code Ann. §156.01 through .05

 

Oklahoma

Okla. Stat. 61 §202; Okla. Stat. 61 §212; Okla. Stat. 70 §5-131.2; Okla. Stat. 19 §458

Okla. Stat. 61 §202; Okla. Stat. 61 §212; Okla. Stat. 70 §5-131.2; Okla. Stat. 19 §458

Okla. Stat. 61 §202; Okla. Stat. 61 §212; Okla. Stat. 70 §5-131.2; Okla. Stat. 19 §458

Okla. Stat. 61 §202; Okla. Stat. 61 §212; Okla. Stat. 70 §5-131.2; Okla. Stat. 19 §458

Okla. Stat. 61 §202; Okla. Stat. 61 §212; Okla. Stat. 70 §5-131.2; Okla. Stat. 19 §458

Okla. Stat. 61 §202; Okla. Stat. 61 §212; Okla. Stat. 70 §5-131.2; Okla. Stat. 19 §458

Oregon

Or. Rev. Stat. §469; Or. Rev. Stat. §279A

Or. Rev. Stat. §469; Or. Rev. Stat. §279A

Or. Rev. Stat. §469; Or. Rev. Stat. §279A

Or. Rev. Stat. §469; Or. Rev. Stat. §279A

Or. Rev. Stat. §469; Or. Rev. Stat. §279A

Or. Rev. Stat. §469; Or. Rev. Stat. §279A

Pennsylvania

Pa. Cons. Stat. tit. 62 §3751 through §3757

Pa. Cons. Stat. tit. 62 §3751 through §3757

Pa. Cons. Stat. tit. 62 §3751 through §3757

Pa. Cons. Stat. tit. 62 §3751 through §3757

Pa. Cons. Stat. tit. 62 §3751 through §3757

Pa. Cons. Stat. tit. 62 §3751 through §3757

Puerto Rico

PR S 2372 (2012)

PR S 2372 (2012)

PR S 2372 (2012)

PR S 2372 (2012)

PR S 2372 (2012)

PR S 2372 (2012)

Rhode Island

R.I. Gen. Law §42-140.1-5; R.I. Gen. Law §42-140-3

R.I. Gen. Law §42-140.1-5; R.I. Gen. Law §42-140-3

R.I. Gen. Law §42-140.1-5; R.I. Gen. Law §42-140-3

R.I. Gen. Law §42-140.1-5; R.I. Gen. Law §42-140-3

R.I. Gen. Law §42-140.1-5; R.I. Gen. Law §42-140-3

R.I. Gen. Law §42-140.1-5; R.I. Gen. Law §42-140-3

South Carolina

S.C. Code Ann. §48-52670

S.C. Code Ann. §48-52670

S.C. Code Ann. §48-52670

S.C. Code Ann. §48-52670

S.C. Code Ann. §48-52670

S.C. Code Ann. §48-52670

South Dakota

S.D. Codified Laws Ann. §1-33B

S.C. Code Ann. §48-52670

S.C. Code Ann. §48-52670

S.C. Code Ann. §48-52670

S.C. Code Ann. §48-52670

S.C. Code Ann. §48-52670

Tennessee

Tenn. Code Ann. § 12-4-106; Tenn. Code Ann. § 12-4-115

Tenn. Code Ann. § 12-4-106; Tenn. Code Ann. § 12-4-115

Tenn. Code Ann. § 12-4-106; Tenn. Code Ann. § 12-4-115

Tenn. Code Ann. § 12-4-106; Tenn. Code Ann. § 12-4-115

Tenn. Code Ann. § 12-4-106; Tenn. Code Ann. § 12-4-115

Tenn. Code Ann. § 12-4-106; Tenn. Code Ann. § 12-4-115

Texas

Tex. Government Code §2166.406

Tex. Local Government Code §302

Tex. Local Government Code §302

Tex. Education Code §44.901

Tex. Education Code §51.927

Tex. Government Code §2166.406

Utah

Utah Code Ann. §63A-5-701

State facilities, including institutions of higher education, are specifically included in statutory language. Other agencies my complete ESPCs using the state’s public procurement code.

Utah Code Ann. §63A-5-701

State facilities, including institutions of higher education, are specifically included in statutory language. Other agencies my complete ESPCs using the state’s public procurement code.

Vermont

Vt. Stat. Ann. 29 §152

 

 

Vt. Stat. Ann. 123 §3448f

Vt. Stat. Ann. 29 §152

 

Virginia

Va. Code §11-34.1 through §11-34.4

Va. Code §11-34.1 through §11-34.4

Va. Code §11-34.1 through §11-34.4

Va. Code §11-34.1 through §11-34.4

Va. Code §11-34.1 through §11-34.4

Va. Code §11-34.1 through §11-34.4

Washington

Wash. Rev. Code §39.35; Wash. Rev. Code §39.35A; Wash. Rev. Code §39.35C

Wash. Rev. Code §39.35; Wash. Rev. Code §39.35A; Wash. Rev. Code §39.35C

Wash. Rev. Code §39.35; Wash. Rev. Code §39.35A; Wash. Rev. Code §39.35C

Wash. Rev. Code §39.35; Wash. Rev. Code §39.35A; Wash. Rev. Code §39.35C

Wash. Rev. Code §39.35; Wash. Rev. Code §39.35A; Wash. Rev. Code §39.35C

Wash. Rev. Code §39.35; Wash. Rev. Code §39.35A; Wash. Rev. Code §39.35C

Washington, D.C.

 

 

D.C. Code §8-1778.01 through §8-1778.48

D.C. Code §8-1778.01 through §8-1778.48

 

D.C. Code §8-1778.01 through §8-1778.48

West Virginia

W. Va. Code §5A-3B

W. Va. Code §7-1-3oo

 

W. Va. Code §18-5-9a

W. Va. Code §5A-3B

 

Wisconsin

Wis. Stat. §66.0133

Wis. Stat. §66.0133

Wis. Stat. §66.0133

Wis. Stat. §66.0133

Wis. Stat. §66.0133

Wis. Stat. §66.0133

Wyoming

Wyo. Stat. §9-12-1202; 9-12-1203

Wyo. Stat. §9-12-1202; 9-12-1203

Wyo. Stat. §9-12-1202; 9-12-1203

Wyo. Stat. §9-12-1202; 9-12-1203

Wyo. Stat. §9-12-1202; 9-12-1203

 

 

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