It is estimated that significant energy savings may be obtained in most buildings through low cost measures that improve building performance. ("Building Commissioning: A Golden Opportunity for Reducing Energy Costs and Greenhouse Gas Emissions" Evan Mills, Lawrence Berkeley National Laboratory. (2009)). These savings can be achieved through recommissioning/retrocommissioning (RCx) and retrofitting existing buildings. PBEEEP defines these as:

• Recommissioning/retrocommissioning is the repair to, or optimization of, building operations (schedules, procedures, equipment, facilities, or systems) for the primary purposes of enhancing energy efficiency. RCx generally focuses on major building systems (building envelope, HVAC, and controls) to target quick payback, and often relatively quick implementation, energy conservation opportunities

• Retrofit is the replacement of, or upgrade to, existing equipment and systems with the primary intent of enhancing energy efficiency

Local Government Units (LGUs) with energy efficiency improvement objectives are eligible and encouraged to participate in PBEEEP. The program is designed to take a comprehensive look at your facility and will evaluate any suggestions you have for actions to reduce energy consumption.

Project Funding

Project Funding

Current details of funding mechanisms are:

• Planned cost-sharing on initial project costs.

• Tax-exempt lease purchase financing agreements.

• Where eligible, supplemental cash flow agreements to assure a budget neutral condition for the LGU.

• Utility rebates, as applicable, will be an available option for program co-funding (for example, Xcel territory customers can participate in the RCx rebate program and CIP program offerings).

The initial project costs (screening phase and investigation phases) will be paid through short-term loans, granted funds, or a combination of the two. Where applicable the funds that have been loaned by the State (facilitated through PBEEEP) to LGUs to cover initial costs will be rolled into the financing agreement between the lender and the LGU in the project Implementation Phase. Participating local governments may be asked, as part of the Participation Agreement, to implement all measures within a reasonable payback period to receive cost-sharing and/or a supplemental loan agreement with the State.

Cost-Sharing

The Division Of Energy Resources will provide cost-sharing through PBEEEP for each LGU. PBEEEP will facilitate payment for the initial phases of the project, Screening and Investigation, through State funding. Once the Investigation Phase is complete and the LGU has decided which measures to implement, the LGU would enter into a Lease Purchase Financing Agreement with a lender under a contract for PBEEEP services with the State. If the project identifies energy savings that meet initial payback expectations, the LGU would roll in costs from Screening and Investigation. If a project does not identify the expected level of savings or meet payback criteria, PBEEEP would buy-down implementation costs or 'forgive' initial project costs. These options will be discussed in advance with the LGU when the project starts.

Financing

The primary project funding mechanism will be tax-exempt lease purchase financing. Cost savings from the implemented energy improvements will be used to service the loan. The intent is that the savings realized will allow repayment of the loan without the requirement to have budgeted funds in advance. When the loan is paid in full, all savings from the implemented measures will be kept by the LGU. Standard financing processes and documents are in development. Financing agreements will be structured to ensure a budget-neutral status for the LGU sponsoring the project and servicing the loan.

Supplemental Cash Flow

Supplemental cash flows may be offered to participating LGU's for qualifying measures. The intent of the supplemental cash flows is to ensure a budget neutral budget status for the LGU in the event of deficient savings that cannot be resolved through investigation, troubleshooting, or corrective action.

Rebates

An LGU's utility company may have a rebate program or be willing to offer a customized rebate. As applicable, and where available, these rebates can be applied to offset project costs. Providers, as the acting recommissioning/retrofit agents, will need to complete and submit all necessary requirements for utility co-funding opportunities. Program staff will assist in this process.

Participation

Local Government PBEEEP will be launched in 2011. The application will be available to LGUs soon. Please check back at the site for information in the comming months or contact program staff directly with any questions.

Focus on
Local Governments

Prepare for PBEEEP

Local Government Units can prepare for PBEEEP by entering utility usage data into the Minnesota Benchmarking and Beyond (B3) tool for their sites. Having data populated in the B3 system will aid in streamlining the project process and facilitating long-term energy performance tracking. Contact The Weidt Group for additional information and assistance entering data.

B3 Energy Benchmarking/PBEEEP Webinar:

Visit B3 Benchmarking Training Webinars for information on upcoming webinars that orient users to the B3 system.

Engage with PBEEEP!

PBEEEP can participate in your LGU events, answer questions, and/or provide information for your publications. This program exists to serve Local Governments and we are dedicated to designing and executing a program that works for local governments. If you or your LGU have questions, concerns, or suggestions for the program, please contact us directly.