Minnesota Chapter

At a Glance

Minnesota Guaranteed Energy Savings Performance Contracting

Category

Details

 

State Program Website

Guaranteed Energy Savings Program (GESP)

 Yes

Applicable Sectors

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

Yes
Yes
--
Yes
No

Enabling Legislation

16C.14 Energy Efficiency Installment Purchases

471.345 Uniform Municipal Contracting Law

123B.65 Energy Efficiency Projects

16B.4821 Provision of Materials and Services to MNSCU

 

Statue requires a savings guarantee

 

Yes

Contract Term

More than 20 years

 

 

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
No
Yes
Yes
No
Yes
No

Excess Savings Retained by End-user

 

Yes

Executive Order (link)

Providing for Job Creation through Energy Efficiency and Renewable Energy Programs for Minnesota’s Public Buildings

Yes

State Program Administrator

Full-time

Yes

State program provides support to local units of government

 

Yes

Reporting Requirements for projects

End-User receive M&V through contract term

No

ESC Chapter

Meets quarterly

 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
Yes
Yes
Yes

Pre-qualified providers list

RFQ for prequalified providers

Yes
 

Building energy utilization benchmarking

State
K-12
Community Colleges
University
Cities
Counties

Yes
Yes
Yes
Yes
Yes
No

Recognition/Awards for Outstanding Projects

 

No

Minnesota Chapter

Leadership

The state of Minnesota has one separate state statue for Guaranteed Energy Savings Performance Contracting (GESPC) for each public market sectors: state agencies, local units of government, universities, and K-12 school districts.  The statues allow for a scope of work that includes all measures that pay for themselves in energy savings, operational savings, use of water savings, and renewable technologies, as well as capital infusion. Other details in statue include contract terms in excess of 20 years, a requirement for a savings guarantee, and a provision that allows agencies to retain excess savings.

Minnesota benchmarks energy usage in state facilities, K-12 and community colleges and technical colleges, universities and cities. The state tracks GESPC projects in all state buildings, including community colleges, technical colleges and universities, as well as K-12, cities and counties.

In the past there have been examples of GESPC projects where the verified savings have exceeded the guarantee. Success stories include:

  • The City of Hutchinson installed a 400-kilowatt solar array as part of a GESPC. The solar array will supply 12 to 15 percent of the electricity needed to run the city’s adjoining wastewater treatment plant. Almost two-thirds of the cost of the $1.5 million array was covered by a $958,000 Renewal Development Fund grant from Xcel Energy. The city’s share was about $510,000. The GESPC calls for a guaranteed payback of the city’s investment in about 18 years, but officials believe that could be as short as about 14 years. The array has a 25-year warranty.

Program

The Minnesota Guaranteed Energy Savings Program employees a full-time program manager that is responsible for the oversight of GESPC projects in the state.  The Minnesota program also works with local units of government in implementing GESPC projects at the local level. The program manager serves as the public sector co-chair of the Minnesota ESC State Chapter.

The Minnesota GESP program provides technical, contractual and financial assistance to state agencies, local governments, school districts, and institutions of higher learning that elect to implement energy efficiency and renewable energy improvements through Guaranteed Energy Savings Performance Contracts. The state has negotiated master contracts with eleven ESCOs to provide GESPC Services. The intent is to maximize job creation and operational cost savings through investment in public facilities with the goal of reducing energy consumption by 20 percent throughout all state agencies.

The state program uses a set of standardized instruments to promote success and help mitigate risk for the program participants. The documents are publicly posted on the internet.

ESC Chapter

The state's public sector program manager participates as the public sector co-chair in the Minnesota ESC Chapter.  The Chapter formed five years ago, and meets quarterly and conducts workshops throughout the state.