Georgia Chapter

At a Glance

Georgia Guaranteed Energy Savings Performance Contracting

Category Details  

State Program Website

Georgia Environmental Finance Authority

 

Applicable Sectors

State
Local (cities and counties)
University
K-12
One for all market sectors

Yes 
Yes 
Yes 
Yes
No

Enabling Legislation

GA. Code §50-37-1 through §50-37-8

 

Statue requires a savings guarantee

 

Yes

Contract Term

20 years

 

 

Scope of Work enabled by legislation

All measures that pay for themselves
Operational savings
Future cost avoidance
Water savings
Renewables
Behavioral Training
Buy down
Discrete list

Yes
Yes
Yes
Yes
Yes
Yes
No
No

Excess Savings Retained by End-user

 

Yes

Executive Order (link)

 

No

State Program Administrator

 

Yes

State program provides support to local units of government

 

No

Reporting Requirements for projects

To authority other than end-user
End-User receive M&V through contract term

Yes
Yes

ESC Chapter

Years in Existence: 6-10 years
Meetings occur from time to time

 

Standardized instruments for use with GESPC

RFQ to prequalify providers
Evaluation guide for providers to state's program
Standardized contract set for state buildings
Standardized contract set for local government
Process for instrument modification
Posted on a publicly available website

Yes
Yes
Yes
No
Yes
Yes

Pre-qualified providers list

RFQ for prequalified providers
Secondary Selection Process

Yes
Yes

Building energy utilization benchmarking

State
K-12
Community Colleges
University
Cities
Counties

Yes
No
Yes
Yes
No
No

Recognition/Awards for Outstanding Projects

 

Yes

Updated: 2017

Leadership

In 2010, Georgia voters overwhelming passed a constitutional amendment to support guaranteed energy savings performance contracting as a way for the state to pay to install energy-saving devices at essentially no cost. In addition to the state constitution, Georgia has  enabling legislation that covers Guaranteed Energy Savings Performance Contracting (GESPC) in four public market sectors: state agencies, local units of government, universities, and K-12 school districts.  The length of contracts are limited to 20 years.   

The legislation allows for a scope of work that includes all measures that pay for themselves in energy savings and the use of operational savings, including future cost avoidance, water savings, renewables and behavioral training.. 

The statue requires the energy service company (ESCO) provide an energy savings guarantee and provides for a payment to cover any shortfall should one occur. The states also allow an agency to retain any excess savings.

There are a growing number of successful projects that have been implemented since the Constitutional amendment was passed, including:

  • Earlier in 2016, the Georgia Environmental Finance Authority (GEFA) announced the University System of Georgia (USG), the Georgia World Congress Center (GWCC), and the Georgia Department of Corrections (GDC) have entered into guaranteed energy performance contracts that will provide energy and water savings of approximately $113.9 million.
  • In 2014, Phillips State Prison became the first state building to complete the installation of energy efficient equipment as part of a GESPC. The Georgia Department of Corrections (DOC) was named the runner-up by the Technology Association of Georgia for its 2014 Smart Energy/Government Entity of the Year Award as a result of this project. The Phillips Prison's $4.5 million contract is saving nearly $500,000 in utility costs per year and a 97% reduction in water use.
  • In 2013, the Bibb County school board implemented a GESPC that will cost nearly $4 million, but is guaranteed to save more than $8 million over the term of the 10 year contract.

Program

Georgia employees multiple employees with roles that support and oversees the state's GESPC program.  The state program is also utilizes the services of an outside third-party that provides technical support to end-users/clients.

The state uses a set of standardized instruments for use with GESPC for state facilities and a separate set of standardized contract instruments for community colleges and universities. The  standardized instruments have been approved by the appropriate legal, finance and procurement authorities and serve as the only terms and conditions for state facility work to proceed.

Georgia has a well-defined Request for Qualification and selection process for energy service companies to become a GESPC provider for state projects.  A secondary selection process is required allowing the end user to participate in the final selection of their provider.

ESC Chapter

The Georgia Energy Services Coalition (ESC) Chapter has been in existence for more than six years and is comprised of multiple public and private sector individuals. The Chapter meets periodically when there is specific issue that needs resolving.