1. Ashlie Lancaster SC Energy Office November 29, 2012 SC Performance Contracting Initiative: Program Development and Implementation - Next Steps

2.  Best Practices in State Performance Contracting Programs: ◦ Establish a state level program to offer a standardized process with clear direction and accountability for all participants in an effort to:  implement comprehensive energy-efficiency projects in existing buildings by increasing the number of successful performance contracts statewide  provide program participants the opportunity to procure services of qualified firms in a timely and cost- effective way  ensure minimum qualifications of ESCOs to implement successful Energy Savings Performance Contracting projects  offer all qualified firms the opportunity of equal access to work generated by the program

3.  Best Practices in State Performance Contracting Programs: ◦ State Energy Office leadership:  Provide outreach and education regarding ESPC  Educate potential end-users on performance contracting benefits and the processes to achieve a successful project  Working with the Office of the State Engineer  Pre-qualify ESCOs  Establish model, preapproved state contracts  Provide project oversight and technical assistance  Ongoing support to facility owners doing ESPC projects

4.  Best Practices in State Performance Contracting Programs: ◦ Streamlining the selection process:  The State Energy Office (SEO) prequalifies ESCOs through an RFQ process  Successful companies enter into a Base Agreement ESCO Contract with the SEO in order to be listed as a pre-qualified ESCO  Agencies then use a secondary selection process to select an ESCO to implement a performance contracting project in their facilities

5.  Best Practices in State Performance Contracting Programs: ◦ Streamlining the selection process:  During the secondary selection process, agencies establish a committee to select three ESCOs from the prequalified list to provide additional information specific to their project’s Technical Facility Profile and conduct interviews  Based on the recommendation of the selection committee, the top-ranked respondent is invited to enter into an audit contract

6.  Best Practices in State Performance Contracting Programs: ◦ Streamlining the selection process:  Upon satisfactory completion of the Investment Grade Audit, the Agency will have the option to execute an Energy Savings Performance Contract with the ESCO to implement the recommended project  Model contract documents, detailing the responsibilities of each party, along with Project Oversight Agreements, including the SEO-ESCO Base Agreement and a Facility Owner MOU, provide protections for both agencies and ESCOs

7.  Best Practices in State Performance Contracting Programs: ◦ Discussion:  What model is right for South Carolina and how do we get there?  Is there support to move forward with establishing an Energy Performance Contracting Program through the State Energy Office?  How can education and outreach increase the number of projects in our state?  Is there a benefit to establishing a local chapter of the ESC?  Forum for education and outreach  Performance contracting training sessions  Model documents review

8. www.energy.sc.gov South Carolina Energy Office 408 Wade Hampton Building Columbia, S.C. 29201 (803) 737-8030