It is estimated that significant energy savings (10% to 20%, on average) 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-share through grant co-funding for each Local Government Unit (LGU), where the design of co-funding to be offered in PBEEEP continues to be developed.

• 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, grant awards (per above), or a combination of the two. The funds that have been loaned to cover initial costs will be rolled into the financing agreement between the lender and the LGU in the project Implementation Phase. ARRA stimulus grants from OES may be used to supplement the total project costs to shorten project paybacks. Participating local governments will be asked to implement all measures within a reasonable payback period to receive stimulus funding or a supplemental loan agreement.

Cost-Share

The Office of Energy Security anticipates providing cost-sharing for each LGU. Details of the cost-share are in development.

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 projects. 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 servicing utility may offer a rebate program. 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 continues to be developed. Because the program is not fully designed, PBEEEP is not able to accept applications. As information on the release of the application becomes available, this page will be updated. Please check the site for information or contact program staff directly with any questions.

How Does PBEEEP Compare?

Key features of PBEEEP are provided in the PBEEEP Feature Table to aid LGUs as they review and research options for their energy related facilities projects.

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:

PBEEEP staff is partnering with the State of Minnesota's B3 Energy Benchmarking program developers, The Weidt Group, for several upcoming webinar sessions. The goals of the presentations are to orient users to the new B3 Energy Benchmarking and Energy Tracking Tool and to provide a brief overview of PBEEEP. Visit the B3 Energy Benchmarking site for more information.

Engage with PBEEEP!

PBEEEP can participate in your LGU events and/or provide information for your publications. Contact us prior to your next event or publication. This program exists to serve Local Governments - PBEEEP staff is ready to aid in outreach efforts to make the program work for your unit of local government. PBEEEP is dedicated to designing and executing a program that works for and with local government units to meet their needs. If you or your LGU have questions, concerns, or suggestions for the program, please submit these to PBEEEP via email.