Energy Performance Contracting Process
Energy Performance Contracting Process
Energy Performance Contracting Process
Objective: To provide a concise, easy to understand process, that labels each parties basic
responsibilities for an Energy Performance Contract. All process steps must adhere to
Florida Statues 489.145, 287.055, 255.05 and 287.057
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5. Agency authorizes Investment Grade Audit (IGA)
a. EPC will give a detailed analysis on each energy conservation measure
they are proposing, including energy and energy related operating savings.
At a minimum, an audit should include current and future energy
consumption, projected savings, maintenance costs, simple payback, life
cycle costs, building description, analysis methods, and calculations.
Assumptions, baselines, and baseline adjustment criteria must be
predetermined and agreed upon in the audit. Audit may include all
commodity or unit prices.
b. To provide consistency for review of a future guaranteed energy
performance savings contract, the EPC will provide contract schedules A,
B, E, and F in the IGA.
c. A model Audit agreement can be found on the DMS website.
d. Agency may enter into a separate agreement to pay for the audit, or the
cost of the audit may be part of the final contract.
e. It is suggested Agencies negotiate a mechanism that allows them to
perform identified ECM’s with out further obligation under the audit in
cases of emergencies (immediate or imminent equipment failure).
6. EPC submits IGA to the Agency
a. Agencies’ internal staff reviews audit for completeness, guaranteed
savings, and value of ECM’s (This process is contingent on the Agencies’
internal staffs or contracted staffs ability to review engineering
documents).
b. Agency can approve or not approve the audit.
1. If Agency does not approve the audit, they may ask EPC to resubmit
with specific changes.
2. If the audit is unacceptable to the Agency, the Agency may move to
work with the second ranked most qualified EPC.
7. Agency submits approved IGA to Department of Management Services for
review
a. DMS will assign a reference number to the IGA.
b. DMS staff reviews audit. Staff will provide a comprehensive review of
guaranteed savings, sound engineering practices, baseline assumptions and
adjustment criteria, appropriate ECM’s, and unit costs to verify fiscal
stewardship.
c. DMS can approve or not approve the Audit. If DMS does not approve the
audit, the Agency and EPC must make the necessary changes, and then
resubmit to DMS for approval of revised audit.
d. DMS will then send the approved audit back to the Agency so that they
and the EPC can develop a guaranteed energy performance savings
contract.
e. A model contract agreement can be found on the DMS website.
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B. Agency Negotiation of a Guaranteed Energy Performance Savings Contract
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review will be incorporated into the DFS review. The
following Contract Schedules will be sent to DMS for review:
Schedule A – Equipment to Be Installed by Company
Schedule B – Description of Facilities; Pre-existing Equipment
Inventory
Schedule E – Baseline Energy Consumption
Schedule F – Savings Calculation Formulae; Methodology to
Adjust Baseline
c. The Contract will either be approved or denied in writing and a letter
will be sent to the Agency along with an attachment listing material
deficiencies and suggested changes. Material deficiencies must be
corrected in order for the Contract to be approved. Suggested changes
reflect minor errors or highlight items the Agency should consider.
The Agency may renegotiate the Contract with the EPC. DMS must
review any resulting changes made to the IGA and associated Contract
schedules. Otherwise, a new version of the contract may be re-
submitted to DFS.
3. Agency executes the contract and financing agreement approved by DFS
and begins work on ECMs.
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