North Carolina Chapter

At a Glance

North Carolina Guaranteed Energy Savings Performance Contracting

Category

Details

 

State Program Website

Utility Savings Initiative

 Yes

Applicable Sectors

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

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--
--
Yes

Enabling Legislation

143-129. Procedure for letting of public contracts

143-64.17B. Guaranteed energy savings contracts

 

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
No
Yes
Yes
Yes
No
No

Excess Savings Retained by End-user

 

Yes

Executive Order (link)

 

No

State Program Administrator

Multiple team members

Yes

State program provides support to local units of government

 

Yes

Reporting Requirements for projects

End-User receive M&V through contract term

Yes

ESC Chapter

Meets monthly

 Yes

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
No
Yes
Yes
Yes
Yes

Pre-qualified providers list

RFQ for prequalified providers

Yes
 

Building energy utilization benchmarking

State
K-12
Community Colleges
University
Cities
Counties

Yes
Yes
Yes
Yes
No
No

Recognition/Awards for Outstanding Projects

 

No

North Carolina Chapter

Leadership

The state of North Carolina has one state statue for Guaranteed Energy Savings Performance Contracting (GESPC) that covers all four public market sectors: state agencies, local units of government, universities, and K-12 school districts.  The statue allows for a scope of work that includes all measures that pay for themselves in energy savings, operational savings, use of water savings, and renewable technologies, as well as savings from behavior training. Other details in statue include 20 year limits on contracts, a requirement for a savings guarantee, and a provision that allows the agency to retain excess savings.

North Carolina benchmarks energy usage in K-12 facilities and community colleges and technical colleges. The state tracks GESPC projects in all state buildings, including community colleges, technical colleges and universities.

In the past there have been examples where the verified savings have exceeded the guarantee. Success stories include:

  • Robeson Community College is working toward making its campus greener. Robeson Community College trustees approved a GESPC to make all of the buildings on the RCC main campus in Lumberton and at COMtech in Pembroke more energy-efficient. As part of the project the college borrowed just under $3 million to make all of the energy-saving improvements. The loan is for 14 years with an interest rate at 2.18 percent.
  • The $6.2 million in energy efficiency retrofits being made throughout most of the Hoke school system in Sandy Grove - are being paid for by guarantees of $8.1 million in energy savings over the next 15 years. Sandy Grove Elementary/Hoke Superintendent Freddie Williamson said the performance contract method was the only way the low-wealth school system could finance needed work without increasing taxes or debt. He said it also allowed the school system to pursue its goals of having comfortable classrooms that are conducive to learning along with 21st century energy efficiency.
  • North Carolina State University has a $60 million, 17-year GESPC, that produced over $10 million in guaranteed energy savings the first two years of the performance period.
  • Appalachian State University has a $16.3 million GESPC that covers 1.6 million square feet of space spread over 28 campus buildings. All of the energy efficient equipment and system improvements will be paid from energy savings over a 13-year contract term.
  • City of Greensboro: The city's GESPC for facility improvement measures at the Greensboro Coliseum is estimated to reduce the electrical energy usage of the facility by nearly 25 percent, water consumption by nearly 30 percent, and gas use by more than 50 percent. These improvement measures will result in energy reductions equivalent to three tons a year in CO2 emissions.
  • Wilson County reduced its utility costs by $107,000 annually after completing a $900,000 GESPC in 2007 to improve comfort levels and operating efficiency at 10 county buildings. The county later launched a second performance contract that addressed the county’s Detention Center and a newly acquired office property for the Administration group. The $330,000 phase two project is saving the county an additional $29,000 annually.
  • To date (2016), more than 74 public jurisdictions throughout North Carolina have executed guaranteed energy savings performance contracts, leveraging nearly $500 million in private sector investments into an estimated $50 million in guaranteed annual energy cost savings.

Program

The North Carolina program employees multiple team-members in the oversight of GESPC in the state.  The North Carolina program also works with local units of government in implementing GESPC projects at the local level.

The state program uses a set of standardized instruments to promote success and help mitigate risk for the program participants. The documents are publicly posted on the internet.

ESC Chapter

The state's public sector program manager participates as the public sector in the North Carolina ESC Chapter.  The Chapter formed more than a decade ago, and meets monthly and conducts workshops throughout the state.