Building Energy Conservation Initiative (BECI) Program
What is the BECI Program?
Established in April 1997, this program analyses State buildings for energy and resource
conservation opportunities. BECI utilizes a "paid from savings" procedure known
as "Performance Contracting." This allows agencies to perform energy retrofits
and building upgrades that would otherwise not be funded through capital appropriations,
providing the energy savings (over ten years or less) to pay for the project cost.
The Governor's Office of Energy and Community Services (ECS) institutes
the study, along with the individual state agencies whose buildings are being evaluated.
This is done by issuing a Request For Proposals (RFP) to a pre-qualified group of Energy
Service Companies (ESCO) asking them to submit proposals as to how energy savings can be
generated. They must however, follow the guidelines set forth in the RFP.
What type of work will be performed
BECI is designed specifically for energy improving measures. A sample of those
improvements may include lighting upgrades; HVAC upgrades; domestic hot water systems;
energy management controls; water conservation measures; building envelope improvements;
and miscellaneous projects which the ESCO can prove are feasible within BECI. Click here for descriptions of these several energy
How is the ESCO Selected?
ECS and the state agency evaluate the proposals using a point system, and choose the best
plan for the specific needs. Each ESCO may have a different approach to achieve the energy
savings requested, but all proposals must show a positive cash flow within ten years.
The evaluation team scores each proposal using a point system based on six selection
criteria. Once the evaluation team selects the successful ESCO, the Interagency Energy
Efficiency Committee (IEEC) must review and approve the proposal.
A Detailed Feasibility Study (DFS) is then prepared through negotiation
and discussions between the ESCO and the evaluation team. The final DFS and contract
approval must then come from IEEC and funding ultimately approved by the Governor and
Executive Council. Upon G&C approval the contract and associated financing becomes
How is the BECI Program Financed?
In February 2000, the State Treasurer secured financing for this project for up to $25
million, which will allow the State to undertake these improvements and draw monies from
that account as each RFP is completed.
The Master Lease Program (MLP) payments are then carried as line items in
each agency's utility budget. Since each actual utility cost has decreased, these savings
provide the funds for the new line item account. Under the current arrangement, savings
that exceed loan payments will revert to the state's general fund. The Treasury does not
consider a master lease additional debt; therefore, it has no negative impact on the
State's credit rating.
How are the BECI Savings verified?
Each contract includes instructions on the procedure needed to verify the savings
generated by these energy improvements. Since various buildings may include some, but not
all, of the suggested measures, a procedure of Measurement and Verification (M&V) is
unique to each energy improvement. The most common M&V procedures are "Stipulated
Savings", which are calculated upfront, and "Measured Savings" which
involve metering and sub metering.
The ECS has asked the selected ESCO to provide separate pricing to perform
these tasks, based on the International Performance Measurement and Verification Protocol
(IPMVP). At any rate, the State recaptures all of the savings generated. If savings fall
short of the "guaranteed savings" promised by the ESCO, they reimburse the State
that shortfall. The State agency can't lose!
BECI Current Status and Program
Original Funds Available (Master Lease Agreement)
Contracted to Date $3,702,308
|% Of O.A.
|Total BECI Program -
|#1 NHTI (1)
|#2 NHH (APS)
||Commission Date 10-11-2002
|#4 NHTI (2)
||Commission Date 03-19-2003
|#5 Admin. Services
||Draft DFS received 09-28-01
||Draft RFP being prepared
|#7 through #14
||RFP released in 2002
% Of O.A
|Original Funds of Master
|Current results of Two (2)
BECI completed projects:
|Current guaranteed results
of Two (2) BECI "In Progress" projects:
|Funds available for BECI
kilowatt / hours
|Projected fuel oil savings
(7959 gal. / #2) & (9163 gal. / #6)
|Projected natural gas
|Projected propane savings
|Projected water savings
|ENVIRONMENTAL IMPACT(Emission Reduction)
|Carbon dioxide (CO2) emissions:
|Sulfur dioxide (Sox) emissions:
|Nitrogen oxide (NOx) emissions:
For more information, contact:
Gary O'Connell, Energy Program Manager
Governor's Office of Energy and Community Services
Fuel Vehicle Project / Building Energy Conservation Initiative
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