The BOMA Energy Performance Contracting Model (BEPC) provides a conceptual framework and supporting template documents to help private building owners/operators develop and execute investment-grade energy efficiency retrofits. It gives building owners and service providers a new starting point from which to navigate through the complexities of an energy performance contract. It is also designed to provide transparency on pricing and performance expectations and to give building owners a high degree of confidence that the project will meet the stated goals. It is financing agnostic - the model works will all possible funding sources, including Property Assessed Clean Energy (PACE) programs, funding provided through an ESCO or third party, or self-financing.
The BEPC Toolkit was first created in 2008 when the Building Owners and Managers Association (BOMA) International partnered with the Clinton Climate Initiative (CCI) and collaborated with leading real estate companies and energy service companies (ESCOs). Since then, the BEPC model has been used to facilitate projects in more than 20 cities on 5 continents.
With economic recovery underway and building owners once again taking a close look at the deep retrofit opportunities, the BEPC toolkit has been updated to reflect new and emerging best practices.
The BOMA Energy Performance Contracting (BEPC) Model – how does it work?
- Owner's investment criteria determines the project scope
- Contractor provides a turn-key solution that meets or exceeds Owner's investment criteria, working with Owner's preferred vendors and contractors
- Utility and operational savings repay the cost of the project over time
- Integrated with the Investor Confidence Project (ICP), which ensures that industry best practices have been followed to develop "investor ready" projects that will perform as projected
- Contractor may financially guarantee the energy savings or take out an insurance policy to compensate the owner for any potential shortfall
The BEPC Toolkit provides more flexibility by including Owner's preferred Contractors and Vendors.
- Contractors are not strictly required to provide performance guarantees, which opens up the BEPC model to include any qualified contractor – not just traditional ESCOs - that agrees to the BEPC terms and conditions.
- Provide Measurement and Verification (M&V) as a separate standalone agreement to allow for cancelation at year one or anytime thereafter, thus lowering cost and maximizing flexibility.
The BEPC Toolkit provides contract support/resources.
- The updated toolkit includes editable template documents, including an energy performance contract, RFQ and RFP templates, and an investment grade audit contract template. All of these templates are negotiable and easy to use.
- If a building owner prefers to use his/her own standard contract, the BEPC language, principles, and exhibits can be easily integrated into it.
Click here to download the toolkit.