The State of Nevada has enabling legislation that covers Guaranteed Energy Savings Performance Contracting (GESPC) in four public market sectors: state agencies, local units of government, universities, and K-12 school districts. One statue covers state agencies, municipalities/counties and universities, and a separate statue covers K-12. The length of contracts must not exceed 15 years.
The legislation allows for a scope of work that includes the use of operational savings, future cost avoidance, use of water savings, renewables, behavioral training and allows capital funds to be added as buy-down.
The statue requires the energy service company (ESCO) provide an energy savings guarantee and an annual reconciliation statement to the end-user that documents through a prescribed Measurement and Verification protocol the annual energy savings achieved versus the guarantee. The M&V report is required through the length of the contract.
In the past there have been many examples of public entities that use the GESPC process to finance and procure energy savings equipment for facilities:
2015 • Clark County School District, Nevada's largest school district contracted two ESCOs to complete work on 50 schools. Work included energy, water, and maintenance cost-saving equipment and services.
2015 • Carson City implemented a GESPC in 500,000 square feet of facilities. "The city has very limited funding for capital improvements," said Tom Grundy, Sr. Project Manager, Public Works Department. "This approach helps us achieve sustainability goals."
2014 • The Truckee Meadows Water Reclamation Facility (TMWRF) entered a $24 million ESPC for improvements to keep the integrity of the plant and lower energy, chemical and operational costs. The GESPC made TMWRF 45 percent energy independent, saving more than $1.1 million in energy, chemical and operational costs per year
2012 • The City of Henderson received the Energy Project of the Year in Region V for its city-wide, multi-phase guaranteed energy savings performance contract (GESPC). The award was conferred from the Association of Energy Engineers (AEE). The $23 million GESPC was implemented in 2006 and is a combination of energy conservation and operational savings measures that is saving the city just over $2 million annually in energy costs.
There is a program administrator and the administrators services are extended to local units of government.
The state program uses a set of standardized instruments for use with GESPC for state facilities and a separate set for local units of government. No modifications to the documents are allowed.
The Nevada Energy Services Coalition (ESC) Chapter was formed in 2012. The Chapter is currently meets quarterly or when need and provides outreach and education efforts and events for end-users.
The State recognizes projects upon contract signing.