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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 under BECI?
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 conservation measures.

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 binding.

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 Impacts

Original Funds Available (Master Lease Agreement) $25,000,000

Contracted to Date $3,702,308

(To Date)
Buildings Area
(sq. ft.)
% Of O.A.
Total BECI Program - Overall (O.A.) 5,167,000 100%
#1 NHTI (1) Commissioned Completed 131,400 2.5%
#2 NHH (APS) Commissioned Completed 198,000 3.8%
#3 NHSLC Commission Date 10-11-2002 In-Progress 299,371 5.8%
#4 NHTI (2) Commission Date 03-19-2003 In-Progress 134,923 2.6%
#5 Admin. Services Draft DFS received 09-28-01 Negotiation 394,940 7.6%
#6 NHCTC Draft RFP being prepared Future 581,600 11.3%
#7 through #14 RFP released in 2002 Future 3,418,766 66.4%

RESULTS Costs Projected Savings

% Of O.A



Original Funds of Master Lease Agreement: $25,000,000 $33,068,800 100% 100%
Current results of Two (2) BECI completed projects: $1,962,576 $2,562,810 7.9% 7.7%
Current guaranteed results of Two (2) BECI "In Progress" projects: $1,739,732 $2,170,560 6.9% 6.6%
Funds available for BECI future projects: $23,648,386 $31,262,740 85.2% 85.7%
Projected electrical savings 2,549,586 kilowatt / hours
Projected fuel oil savings (7959 gal. / #2) & (9163 gal. / #6) 17,122 gallons
Projected natural gas savings 69,498 therms
Projected propane savings 21,360 gallons
Projected water savings 1321 gallons
Carbon dioxide (CO2) emissions: 2616.5 tons
Sulfur dioxide (Sox) emissions: 12.89 tons
Nitrogen oxide (NOx) emissions: 4.26 tons

For more information, contact:
Gary O'Connell, Energy Program Manager
Governor's Office of Energy and Community Services
Phone: 603-271-2611
Fax: 603-271-2615

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