Arizona Chapter

At a Glance

Arizona Guaranteed Energy Savings Performance Contracting

Category Details  

State Program Website

 

No

Applicable Sectors

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

Yes
Yes
Yes
Yes
No

Enabling Legislation

www.azleg.gov/ars/34/00105.htm 
www.azleg.gov/ars/15/00213-01.htm

 

Statue requires a savings guarantee

 

Yes

Contract Term

Is determined by a life-cycle calculation

 

 

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
Yes
Yes
No
No
Yes
No

Excess Savings Retained by End-user

 

Yes

Executive Order (link)

 

No

State Program Administrator

 

Yes

State program provides support to local units of government

 

Yes

Reporting Requirements for projects

To authority other than end-user

Yes

ESC Chapter

Years in Existence: 5+
Does not currently meet

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
No
No
No

Pre-qualified providers list

RFQ for prequalified providers
Secondary Selection Process

Yes
Yes

Building energy utilization benchmarking

State
K-12
Community Colleges
University
Cities
Counties

Yes
No
No
No
No
No

Recognition/Awards for Outstanding Projects

 

No

Arizona Chapter

Leadership

The State of Arizona has enabling legislation that covers Guaranteed Energy Savings Performance Contracting (GESPC) in four public market sectors: state agencies, local units of government, universities, and K-12 school districts. The one statue covers state agencies, municipalities/counties and universities, and a separate statue covers K-12.  The length of contracts are determined by a life-cycle calculation. 

The legislation allows for a scope of work that includes all measures that pay for themselves in energy savings, the use of operational savings, future cost avoidance, use of water savings, and allows capital funds to be added as buy-down. 

The statue requires the energy service company (ESCO) provide an energy savings guarantee and an annual reconciliation statement that documents through a prescribed Measurement and Verification protocol the annual energy savings achieved versus the guarantee.

The end-user is allowed to retain any excess savings in their department budget if the savings exceed the guarantee.

In the past there have been examples where the verified savings have exceeded the guarantee:

  • Chino Valley School District initiated a contract in 2012. Savings have increased each year. John Scholl, support services director, said the deals are saving money with energy saved, plus the updated heating, ventilation and air-conditioning systems save money on maintenance.
  • Scottsdale Unified School District has entered into several contracts for different schools in the district. Arwood said the savings are allowing the district to pay off upgrades early and direct funds back to the classrooms.
  • Marana Unified School District has done $13.5 million in contracts, using Recovery Act grants for some of the work.
  • Pinal County entered its first contract in 1999 and now has 29 facilities under contract, saving a total of more than $600,000 a year.
  • Arizona State University, University of Arizona and Northern Arizona University all have contracts. ASU saves 29 percent on energy annually, or $5 million a year.
  • In 2010 the Department of Corrections completed a $5 million contract for energy and water measures at its Tucson complex. During the first year after installation, electricity consumption fell by 18 percent, a $230,000-a-year savings.

Program

There is a program administrator and the administrators services are extended to local units of government.

The state program uses a set of standardized instruments for use with GESPC for state facilities and modifications to the documents are not allowed.

ESC Chapter

The Arizona Energy Services Coalition (ESC) Chapter was formed in 2007. The Chapter is currently inactive but has in the past provided outreach and education efforts and events for end-users.

Neither the Chapter or the State has an awards program to recognize outstanding projects.