Building Energy Conservation Initiative

Summary

The Building Energy Conservation Initiative (BECI) analyzes state buildings for energy and resource conservation opportunities. Through a procedure known as “Performance Contracting,” the BECI uses a “paid by savings” plan that allows the state agency that receives funding under the BECI to pay it back through the savings in energy bills from energy efficient improvements. The BECI issues a request for proposals from a group of Energy Service Companies (ESCO) based on the Energy Conservation Measures listed on the program website for state buildings. The selected ESCO completes a detailed feasibility study and a determination of how long it will take to pay off the loan in energy savings. The contract will only be granted to the ESCO if the loan can be paid back in energy savings within ten years. Over the next ten years, the money saved in utility bills will be issued back into the fund for BECI; any money saved over that amount will be put into the general state revenue. If the state building does not meet its projected energy savings, the ESCO is required to make up the difference to the state.