Memorandum of Agreement with the Department of Administrative Services

New Hampshire's Executive Order 2005-04 calls for the State to Lead by Example with energy efficiency improvements that lead to a reduction in energy use by 10% in State-owned facilities. Recovery Act funding will allow for energy efficiency upgrades to 75 state-owned buildings, saving energy and energy costs to the taxpayers. These funds will supplement existing efforts, including performance contracting, building maintenance, and high-efficiency new construction.

OEP’s intent is to demonstrate the State’s progress in reaching energy efficiency goals, and doing so with measures that are duplicable by other public and private entities. As an Energy Star partner, New Hampshire is committed to “Leading by Example” and showing the public the efforts being made to reduce energy use at the state level. The milestone of twenty exposures includes media stories in newspaper, radio or television highlighting the work undertaken with SEP Recovery Act funds to increase energy conservation and promote energy efficiency in state buildings. Through an inter-agency quarterly newsletter dedicated to energy issues, OEP staff will also work to report on the progress of Recovery Act funds in reducing energy use in state buildings, and spread awareness of additional measures that can be undertaken by employees to conserve energy.

As a result of Executive Order 2005-4, New Hampshire state agencies have been recording energy usage and cost data into a state-developed and managed database called Enterprise Energy Management System. Quarterly reports are provided to the Interagency Energy Efficiency Committee as well as to the Governor, per the Executive Order. This system will be used to measure and compare pre- and post-project energy performance in those buildings selected for energy efficiency and/or renewable energy upgrades. Reports on actual savings realized will be provided to DOE in regular quarterly reports once measures have been in place for at least 12 months.

The NH Department of Administrative Services has solicited input from all state agencies regarding energy efficiency and renewable energy improvements that are needed in state-owned buildings. These are projects for which other, existing sources of funding have not been identified. In response, over 150 projects collectively estimated to cost in excess of $20 million were suggested by 10 state agencies (not including the Community College System of NH or the University System of NH).

Suggested projects range in scope from simple lighting upgrades to the rehabilitation of a hydroelectric plant. They were reviewed by staff from NH OEP and NH DAS and ranked according to the following criteria:

• potential to create or retain jobs
• potential to leverage additional funds (primarily utility-sponsored rebates)
• short return on investment
• difficulty in identifying future funding to undertake the project
• potential of the project to be replicated or show the State "Leading by Example"
• involves a sustainable energy technology
• is equipment or property utilized 24 hours a day, 7 days a week, which have higher energy and cost use intensity
• replacement of equipment or property will further State’s demand reduction goal

During the ramp up phase of Recovery Act funding, staff will carefully review cost estimates and engineering details for suggested projects in order to prepare specific requests for bids. Recovery Act funding for these projects will be supplemented by a NH capital budget appropriation for energy and lighting improvements, which is currently proposed at $3 million over the next biennium. However, budget negotiations are ongoing and it is conceivable that given economic challenges, the budget for “energy and lighting improvements” will be level funded. In the last budget cycle, this line item received $250,000 in State general funds.

Given the age and construction of many state-owned buildings, NH OEP and DAS are focused primarily on energy efficiency improvements to existing buildings rather than proposed construction. State policy requires that all new construction projects for state owned facilities exceed existing energy code by 20% and utilize life-cycle analysis in costing considerations.

The vast majority of proposed projects under the State Building EE/RE Program will be contained within existing buildings and will not impact the environment. Should we undertake a major project, such as the repair of a state-owned hydro-electric plant, proper environmental impact permits would be pulled with the State’s Department of Environmental Services (DES). In addition, a Department of Energy Environmental Checklist (EF1) would be completed for the project and submitted through our State’s Point of Contact and the DOE NEPA Compliance Web site. Should it be determined that additional NEPA review is required, we would seek that review and approval prior to undertaking the proposed project.

To Be Awarded: $10,700,000.00 Overall Program Total: $10,746,369.05

If you or your company would like to bid on a job for energy efficiency or renewable energy improvements to State Buildings funded by ARRA, please visit the NH Vendor Resource Center, where you can find instructions for registering as a vendor, as well as information about open bids.