Updated: December 14, 2017
GESPC has enjoyed strong support in Virginia. The state's Energy and Operational Efficiency Performance-Based Contracting Act (Virginia Code §11-34.1 through §11-34.4), which conforms with the state's procurement rules. This statue covers GESPC laws in all four sectors (state, municipalities, universities, k-12). The statute allows for contracts up to 20 years in length and for all measures that pay for themselves in energy savings alone, including operational savings, water savings, renewables and for the use of capital funds to be added as a buydown.
Virginia also allows the end-user to retain excess savings in their department budget and provides a requirement for an annual savings guarantee that meets or exceeds the total annual contract payment. The state’s statute requires the end-user receive an annual report on the cost savings.
In 2014, Virginia implemented the State’s Energy Plan for reducing energy consumption in state buildings. This Energy Plan was developed as part of Gov. McAuliffe’s Executive Order 31 which directed state agencies to reduce their electricity consumption in state buildings by 15 percent by 2017.
In 2016 and 2017, Virginia was among 12 states recognized by the Energy Services Coalition for its annual Energy Stewardship Champion award. Virginia’s executive and legislative leadership, program design and technical assistance, and private sector investment in public building energy retrofits using a GESPC financing solution, is a prime model of being a good steward taxpayer’s monies and using natural resources wisely.
Virginia’s GESPC Program Administrator has oversight and administration of the state’s energy performance contracting program. The state uses a set of standardized instruments for GESPC projects in state facilities. The standardized instruments were approved by the appropriate legal, finance and procurement authorities in the state. These instruments are posted on a publicly available website.
Since 2001, Virginia’s public sector institutions have implemented more the $861 million in GESPC projects. This investment has resulted in guaranteed utility savings to pay for energy efficiency improvements in administration buildings, schools, waste-water treatment facilities, courthouses, jails and correctional facilities, libraries, and other community facilities. Virginia has several examples where the project’s verified savings have significantly exceeded the guarantee:
- The Virginia Department of Motor Vehicles has saved more than $300,000 a year on its energy bills since it upgraded its Broad Street headquarters through a GESPC contract that leaders there initially thought was too good to be true. The guarantee was for $284,000 annually.
- In 2013, Orange County schools began a Phase II GESPC. The first phase of the project produced savings of 32 percent annually, with total project savings over the 15-year term exceeding $9.3 million.duce utility savings of some 39 percent at Locust Grove Elementary alone, energy reductions of more than $83,000 annually. Total project savings are estimated at nearly $1.6 million over 15-year term of the contract. The first phase of the project, already completed, has produced utility savings of 32 percent annually, with total project savings over the 15-year term of that phase estimated at $9.3 million.
- In 2015, The Southampton County School Board approved an Energy Performance Contract for various lighting, mechanical and building automation upgrades in numerous buildings owned by the school system. The capital cost of the lease payments over 15 years is $9,175,875, while the projected and guaranteed energy savings over that time period is slightly more than $9.3 million.
Virginia has an ESC State Chapter although it is currently inactive.