Arkansas Energy Performance Contracting (AEPC)

Aging equipment and high utility costs?

Is your organization facing outdated equipment, increasing maintenance and energy costs, and limited budgets? Energy Performance Contracting (EPC) is a tool for paying for efficiency upgrades such as lighting, chillers, boilers, water systems, and renewable generation over time. The Arkansas Energy Office offers assistance to state agencies, institutions of higher learning, municipalities, and counties throughout the seven step EPC program. The program provides an effective and user-friendly process with standardized documents and help every step of the way. The Arkansas EPC Program was directed by law in 2013, developed by industry professionals and financial representatives in 2014, and expanded to include municipalities and counties in 2015.


Energy Performance Contracting is a financing mechanism used to pay for energy efficiency improvements all at once that are then paid back through annual energy savings. The AEO provides technical assistance to state agencies and public institutions of higher learning, helping them navigate the process and ensuring that Pre-Qualified Energy Service Companies (see a list below) maintain the highest levels of quality. Furthermore, the AEO actively provides education and outreach on the components of Energy Performance Contracting, maintains contract documents, and sets industry standards for Energy Service Companies. For a detailed list of how the AEO-approved process works along with a checklist of important milestones and responsibilities, please look at the AEPC Program Manual below. Please contact Energy Finance Program Manager Chet Howland or 501-682-7319 with specific questions or concerns.


UPDATE

ADEQ- AEO is informing our program participants and stakeholders of the following proposed changes to the AEPC Program, as we first proposed back in January of this year. All program documents have been updated to reflect many of your concerns regarding EPC in Arkansas over the past half-decade as well as our own observations. Many of these updates are cosmetic, the product of newly passed legislation, outdated text, and state consolidation efforts. However, we’ve also made great efforts to improve the AEPC Program’s usability for both you and your public Owners. To that point, here is a list of the updates you will likely find most notable:

1. Recertification of Qualified Providers

AEO is required to certify the qualifications of providers in the AEPC Program at least once every five years, per Arkansas Procurement Law. Of course, this means that those of you qualified in the initial RFQ posted by our office in 2014 will need to go through the process of resubmitting a Statement of Qualifications for review. We’ve edited the solicitation slightly, but it remains generally the same as it was in 2014. A copy of the solicitation is attached. I will be individually contacting your firm if you are due for renewal this year. We do not expect any lapse in pre-qualified status for any active ESCOs. As a reminder, this RFQ will be issued on a standing basis, meaning once issued firms can apply in at any time.

1. Selection Process

After numerous internal and external discussions, as well as thorough evaluation we have made the decision to change the process by which Owners select ESCOs to more accurately mirror both standard procurement procedure as well as all other successful ESPC programs around the country. For some time we have been concerned that the interview process by which selections are currently conducted was less than ideal. As such moving forward AEPC projects will be selected via a Request for Proposals process. Our reasoning for this decision was simple: we feel it will lead to better outcomes in the selection process for all parties. Public Owners will be able to make the most informed decision possible while ESCOs should have full confidence that their proposals will be judged as objectively as possible. ESCOs should note that Owners will still have the ability to request follow-up interviews if necessary. AEO has developed a template RFP for Owners to adapt to their needs, which is attached. 

1. Rules and Regulations

We have developed a concise set of program rules that, for the first time, codifies many of the de facto practices the AEPC Program has been operating under for some time. The previous set of policies and procedures developed before the program officially kicked off did a laudable job of providing a basic overview of the EPC process, but we believe that this succinct summary of the basic rules and regulations of the AEPC Program will be a more valuable lasting document. Below are the two most notable changes to the program:

a. Measurement and Verification

We have made the decision to reduce the mandatory performance period of AEPC projects to one (1) year post-final completion, with an option for Owners to continue M&V services at their convenience for however long they deem necessary. While we will still strongly recommend that more complicated projects enter into a multi-year M&V agreement, the small utility savings generated by many ECMs installed through the program to date simply do not warrant three years of verification. We believe this approach will allow Owners to customize the performance period to their needs, based on their individual project.

a. AEO Administrative Fee

AEO has long believed that the administrative fee assessed for AEPC projects should be more uniform and in concert with industry practices than the sliding scale currently in use, putting us more in line with other state programs in the country. To that end, we are implementing a flat rate of point three percent (.3%) for administration of all future AEPC projects effective January 1, 2020, with a lower boundary of $10,000 and a per-project phase cap of $30,000.

1. AEPC Cost & Pricing Tool

As those of you who have completed projects in the last year are aware, AEO now requires the use of an Excel-based Cost and Pricing Tool. This spreadsheet replaces Exhibit C to the prior IGA Contract, and should be submitted both with a project proposal and with the EPC Contract. Although quite similar to the prior exhibit, it breaks down cost categories by ECM and into a more detailed set of categories. We’ve based it both off DOE definitions and other state programs across the country. The form is self-fillable and contains a separate tab for definitions should you need any clarification.

Do not hesitate to contact us if you have any questions or concerns. We’ll be updating our website, incorporating your feedback, working on additional promotional materials, and endeavoring to quickly review RFQ responses in the weeks and months ahead.





If you would like to explore the possibilities of performance contracting for your organization, contact Program Manager Chet Howland and/or any of the pre-qualified Energy Service Companies (ESCOs) below. The following ESCOs were certified to operate in Arkansas after a thorough vetting of finances, organizational structure, past experience, and technical capabilities. All ESCOs have a wide variety of specialities and expertise, so make sure to contact multiple ESCOs. Also, please note that all ESCOs in the AEPC program are reevaluated on an annual basis, to ensure high quality work and commitment to the state.

ESCO Contact Info Address Website
Ameresco Jeff Metcalf
Vice President
Phone: 888-589-8282
Cell: 317-696-5878
jmetcalf@ameresco.com
  www.ameresco.com
Bernhard Energy Tim Staley
Vice President of Operations
Phone: 501-666-6776
Cell: 501-366-8178
tstaley@bernhardenergy.com
1 Allied Dr, Suite 2600
Little Rock, AR 72202
www.bernhardenergy.com
Clear Energy Stan Green
President
Phone: 479-695-1976
sgreen@clearenergy.com
438 E. Millsap Rd
Suite 200
Fayetteville, AR 72703
www.clearenergy.com
Energy Systems Group Greg Modlish
Senior Account Executive
Phone: 314-449-8608
Cell: 314-797-9764
gmodlish@energysystemsgroup.com
501 Union St, Suite 300B
Nashville, TN 37219
www.energysystemsgroup.com
Entegrity Matt Bell
Partner
Phone: 501-414-0058
Cell: 501-539-1501
matt.bell@entegritypartners.com
1403 E 6th St
Little Rock, AR 72202
www.entegritypartners.com
Excel Energy Group Colton Churchill
VP of Devlopment
Phone: 479-280-1928
Cell: 479-886-0754
cchurchill@excelenergygroup.com
3003 E 17th St
Russellville, AR 72802
www.excelenergygroup.com
Johnson Controls Alex Ray
Building Solutions Executive
Phone: 501-351-0926
alexander.ray@jci.com
10600 Colonel Glenn Rd
Suite 200
Little Rock, AR 72204
www.johnsoncontrols.com
McKinstry Skip Woessner
Operations Director - Development
Phone: 972-532-2580
Cell: 817-217-9617
SkipW@mckinstry.com
204 Executive Court #209
Little Rock, AR 72205
www.mckinstry.com/south
Noresco Brian Stone
Senior Account Executive
Phone: 615-428-5118
bstone@noresco.com
5213 Linbar Drive
Suite 412
Nashville, TN 37211
www.noresco.com
Opterra Energy Services Drew Eanes
Business Development Manager
Phone: 469-552-8131
deanes@opterraenergy.com
12980 Foster St
Suite 400
Overland Park, KS 66213
www.opterraenergy.com
Performance Services Will Black
Business Development Manager
Phone: 501-353-2299
Cell: 501-690-9618
wblack@performanceservices.com
7691 Northshore Pl
Suite B
Little Rock, AR 72118
www.performanceservices.com
Scenic Hill Solar Carrie Kyhl
Director of Business Development
Phone: 501-707-0555
Cell: 228-238-5077
carrie.kyhl@scenichillsolar.com
www.scenichillsolar.com
Schneider Electric Scott Hamilton
Regional Sales Manager
Phone: 501-319-2891
Cell: 501-772-7394
Scott.Hamilton@schneider-electric.com
900 West Shackleford
Suite 300
Little Rock, AR 72211
www.schneider-electric.com
Siemens Archie Hall
Phone: 985-722-8000
archie.hall@siemens.com
   
Today's Power Jennah Dennay
Marketing and PR Coordinator
Phone: 501-400-5548
jdenney@todayspower.com
8110 Scott Hamilton Dr
Little Rock, AR 72209
www.todayspower.com
Trane Arkansas Beau Reynolds
Account Manager - Building Systems
Phone: 501-478-2938
Cell: 501-366-4252
Beau.Reynolds@trane.com
19 Colonel Glenn Plaza Drive
Little Rock, AR 72210
www.trane.com/buildingadvantage