Energy Services Bulletin - Topics from the Power Line: School district shops for energy audits

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Topics from the Power Line: School district shops for energy audits

Question:

Our community wants to upgrade several public facilities, including school district buildings. We're considering performance contracting to finance the projects, but should we first have an independent audit?

Answer:

It is a good idea to do research before choosing an independent energy audit. Fortunately, there are many resources to help with your decision-making and to make you a savvier customer if you hire an auditor.

Auditing resources

Start with How to Hire An Energy Auditor to Identify Energy Efficiency Projects (359 kb pdf), by the California Energy Commission, January 2000. Washington State University Energy Program also offers many publications on energy audits. Another resource that may be useful is the publication Energy Resources for Schools (92 kb pdf).

It would be a good idea to consider energy-efficiency training for someone within your public works department. Check out the EnergyIdeas Clearinghouse database of training events or look into these Northwest Energy Efficiency Alliance ventures that provide such training:

Hiring an independent auditor

If you decide to hire an independent auditor, the first step is to ask your local utility about its own auditing services. Also, your power provider may contract for auditing services, so ask about consulting firms as well. For additional consulting firms, the Bonneville Power Administration (BPA) hosts the Northwest Energy Efficiency Business Listing on its Web site. This site allows you to select a type of service in a specific geographic area.

The Northwest Energy Efficiency Council (NEEC) represents businesses involved in energy-efficiency products and services. From the NEEC Web site, you can search its member directory, which includes categories of services such as "consulting" and "engineering firms"—two categories with substantial overlap.

You could also look in the local phonebook under "Energy Management and Conservation Consultants," possibly under "Consultants-Energy," "Engineers-Air-Conditioning, Heating and Ventilating" or "Engineers-Consulting."

Before hiring an auditor, make sure to check references and talk to their clients to determine their satisfaction.

Financing your projects

To find funding for an energy-efficiency upgrade, again the first place to start is your local utility. It may have some programs to help you out with energy-efficiency projects and may consider some custom projects. Some states and power marketing administrations, like BPA, require utilities to offer customers such programs. If yours does not mention it, ask.

State-sponsored performance contracting programs, such as the one the Colorado Governor’s Energy Office offers, usually require you to hire one of their approved energy services companies (ESCO). The ESCO identifies energy-savings opportunities, which may involve an audit performed by the company or an independent contractor. How charges for the audit are handled will vary from program to program. Some waive the charge if you decide against doing the project.

If you choose to install any of the recommended measures, the program or the contractor provides a capital loan to be paid back with energy savings over a specified time period. On most such contracts, the ESCO agrees to make up the difference if the project does not deliver the guaranteed savings. In other words, you get energy savings with no out-of-pocket expenses.

You should also take a look at the Internet presentations sponsored by the Energy Star program of the U.S. Environmental Protection Agency. One that might be useful in your case is "Money for Your Energy Upgrades," which discusses traditional and non-traditional financing methods, including performance contracting.

September 2008

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