Frequently Asked Questions
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What is the Federal Buildings Initiative (FBI)?
The FBI is an energy efficiency program delivered by Natural Resources Canada's (NRCan) Office of Energy Efficiency (OEE). The program was designed to help federal organizations realize the benefits of improved energy efficiency in their facilities through the use of energy performance contracting (EPC).
FBI program officers work with federal organizations from project inception through to contract award, construction and project verification. The FBI's full range of products and services help clients identify and capitalize on energy efficiency opportunities in all types of facilities.
Who is eligible, and where do non-federal organizations look for assistance?
The Federal Buildings Initiative (FBI) was developed to improve energy efficiency in facilities which are owned or occupied by federal organizations and Crown corporations.
Other levels of government, institutions and private sector firms can also draw on the FBI's experience for help in designing their own energy efficiency programs.
Natural Resources Canada (NRCan) also has other important programs to help non-federal organizations increase the efficiency of their facilities. For more information on this and other NRCan programs, visit their Web site.
What are the advantages of implementing an energy efficiency project under the Federal Buildings Initiative (FBI)?
Implementing an energy efficiency project under the FBI offers many advantages including:
- Access to the experience needed to make energy projects successful;
- A supply of technical expertise to manage the design, procurement, construction and monitoring of energy management ideas;
- Upgrades to building systems and equipment using new technologies, prolonging their useful life and reducing the need for costly reinvestment;
- Reductions in costs as savings are brought on stream quickly by the energy service company (ESCo);
- A source of comprehensive training to direct and motivate building staff on achieving results beyond the project scope;
- Improved building efficiency resulting in increased building comfort and indoor air quality, creating a more comfortable and healthier working environment;
- Lowered energy and water consumption, a cut in utility costs and a reduction in greenhouse gas emissions that contribute to climate change;
- Reduced maintenance and operational costs;
- Risk management;
- Guaranteed savings;
- Using quick-payback measures to help pay for longer-term work;
- Building and environmental code compliance;
- Comprehensive training and employee awareness programs.
Besides lower greenhouse gas emissions, are there other environmental benefits to implementing a Federal Buildings Initiative (FBI) project?
Using the FBI model to improve energy efficiency can have far reaching environmental benefits.
In addition to producing carbon dioxide emissions, the combustion of fossil fuels also produces nitrous oxide and sulphur dioxide emissions. Both of these gases contribute to air pollution and cause health problems.
New equipment installed as part of an FBI project may meet higher standards for these emissions which can be tied to your organization's environmental management system and sustainable development commitments. In addition, by improving your building's energy performance, you also contribute indirectly to emissions reductions for a broad range of emissions by using less electricity produced by generating stations.
How does the Real Property Institute of Canada (RPIC) contribute to the federal real property community?
The RPIC strives to develop and foster a high professional standard of real property management within the federal public sector.
A specific goal of the RPIC is to provide a forum for information exchange and continuous improvement by developing and delivering an annual Real Property National Workshop as well as regular regional workshops, training sessions and seminars.
These provide a stage for the real property community in the private and public sectors to:
- Display and share ideas and experiences, technologies, and practices with one another;
- Acquire expert advice on matters of interest to the federal real property management community;
- Increase their skills and knowledge through training and career development in the federal real property management community; and
- Cooperate with each other in areas of mutual interest.
Real property professionals play a significant role in helping the federal government meet its energy efficiency objectives. From acquisition to disposal, today's real property managers are faced with an increasing demand to minimize energy consumption and costs through design and operational practices, reduce emissions, and maintain healthy workplaces while complying with environmental regulations.
What is an energy performance contract (EPC)? And what type of work gets done?
Energy performance contracting or EPC provides a means of reducing operating costs, energy and water consumption as well as greenhouse gas emissions (GHGs) by implementing facility energy efficiency improvements, with no up-front cost and limited risk to the federal organization.
The organization can access a complete package of energy management services from the energy service company (ESCo), without having to commit any front-end capital investment.
EPCs bring engineering and energy management expertise, project management expertise, and project financing capabilities together as a package to address building energy management.
Typical EPC projects include equipment retrofits such as lighting, control systems and heating, ventilation and air conditioning (HVAC) improvements or new equipment and system installations such as boilers, chillers and cogeneration units. More innovative, longer term contracts may include any or all of the above measures, plus the following non-traditional energy efficiency measures: solar wall heaters, photovoltaics, living walls, and low consumption plumbing.
EPCs also include comprehensive training for building operators and maintenance personnel and employee awareness programs.
Is an energy performance contract (EPC) a service contract or a construction contract?
Unlike a typical construction contract, an EPC is a service or performance-based contract that involves some form of guarantee.
The performance contract provides a savings guarantee (or performance guarantee) over the life of the project. This reassures the organization that no matter how well the savings proceed, the EPC will have no claim beyond the contracted savings and savings generated by the energy efficiency improvements will be sufficient to repay the investment in the project in the fixed number of years. This guarantee also provides some reassurance that by the end of the contract the savings turned over to the federal organization will be ongoing.
What is an energy service company (ESCo)?
An ESCo is an organization capable of providing a turnkey service for the implementation of building energy efficiency or energy management projects.
The services provided by an ESCo are not new. It is its comprehensive range, including financing, and its delivery by one supplier that makes energy performance contracts (EPCs) so innovative and attractive. A comprehensive project can include any or all of the following services:
- Building inspection
- Financing
- Guaranteed savings
- Auditing
- Planning
- Procurement
- Construction
- Monitoring
- Training
Payment to the ESCo is based solely on the energy savings realized through the energy efficiency improvements. Once the expenses have been fully recovered or the contract expires (whichever occurs first), the client retains future savings from lower energy bills.
Energy service companies have been active in the private sector for many years. In the early 1990s, federal organizations were granted the authority by the Treasury Board of Canada to enter into contract agreements with qualified ESCos, for projects up to $25 million. Organizations using an EPC for the first time require approval for contracts over $1 million.
What is the Qualified Bidder's List (QBL)?
The Federal Buildings Initiative (FBI) provides a "managed" list of pre-screened private-sector firms qualified to bid for energy performance contract (EPCs). These energy service companies (ESCos) are rigorously screened to ensure that they offer solid track records of success as energy performance contractors. The FBI's QBL also guarantees adherence to the North American Free Trade Agreement and the World Trade Organization Agreement on Government Procurement.
The QBL is used once facilities have been evaluated and an energy efficiency retrofit is plausible. The federal organization must prepare a Request for Proposal (RFP) and follow standard contracting practices. The RFP asks ESCos to submit a Proposal Brief regarding a potential energy efficiency retrofit. Once the Proposal Brief has been evaluated, contract negotiations with the winning ESCo can begin.
What can we do to improve the process and outcome of our energy efficiency project?
Project success results largely from a partnership approach that encourages cooperation, open communication and a mutual understanding of each party's responsibilities.
Each party has a specific role in planning and implementing the energy efficiency improvements and each has a vested interest in realizing the energy cost savings of the project.
While the energy service company (ESCo) is responsible for developing and implementing long-range solutions to the energy management problems and for guaranteeing the project's performance and savings, the federal organization sets events in motion and commits staff time to the process of defining and managing the contract.
For instance, coordinating staff efforts during the early planning phase can greatly ease the project development process by ensuring that any changes, challenges and obstacles are managed quickly and efficiently.
By outlining some of the organization's goals and objectives and detailing what is expected from the project in terms of energy, water and environmental needs, building staff can help identify issues the organization is facing internally. This also helps to lay out some of the groundwork that will later assist staff in choosing the right ESCo for the job.
By making informed, quality decisions at every step of the project process, and by consistently applying the standards of realism and fairness as you negotiate each party's role and responsibilities, you are maximizing your chances of producing high quality project results.
We have budgeted for some small energy related upgrades in the coming years. Is this a sound approach for improving our building's energy efficiency?
That depends on a number of factors including energy use patterns, building age and equipment maintenance practices. Before making any single investment, it is important to understand how your building is performing with respect to its energy use.
It is advantageous to consider the combined status of all energy components before retrofitting a single technology. A preliminary energy audit (or an opportunity assessment) provides a summary of energy use, a level of current performance and achievable savings, as well as a preliminary list of energy saving measures and their estimated costs and benefits.
Although many single technology retrofits may have a relatively short payback period, comprehensive retrofits are often more beneficial. For example, it may be cost effective to include equipment that is nearing the end of its operating life in a comprehensive project rather than having to repair or replace it over time. A building has a series of energy-consuming systems which interact with one another. Dealing with one system in isolation can have an adverse impact on the performance of other systems and may lower overall efficiency.
In addition, an important benefit of implementing a comprehensive retrofit is the ability to use quick-payback measures to help pay for longer-term work. Ideally, energy retrofit projects should be designed using a life-cycle approach that considers all energy related costs and benefits.
What if we have limited information on our property holdings and energy consumption?
If you do not have information on your property holdings and energy consumption, now would be a good time to start collecting that data. Energy service companies (ESCos) generally require two years of energy consumption data. Plus, gathering this information will not only help you develop and understand your facilities' present usage, but it will also help determine why, when and where you use your energy (i.e. lighting issues, time of day or night, type of buildings), but it will also help you define the scope of your project by highlighting some of your energy issues and opportunities.
To begin the process of gathering information, first, obtain background information on facilities, such as floor area, which properties are leased and which owned, and the types of heating and cooling systems in each building.
Then, start developing some end-use energy statistics, such as energy consumed, hours of operation, any special energy uses, etc. Data on energy use should be analysed to establish a baseline.
In many cases, audits have been performed on similar buildings operated by the department in other locations. This information could be used as a guideline for the proposed project.
If the information is not available internally, you can also contact your utility for gathering energy usage information.
To achieve energy savings, is it necessary to accept a lower level of indoor comfort?
One important principle underlies energy efficiency improvements: they will not involve discomfort or sacrifice. Merely lowering the thermostat to 10 degrees Celsius in the winter saves energy, but cannot be characterized as an energy efficiency improvement.
Lowering the temperature when the building is unoccupied, however, is a more efficient use of the heating system.
To ensure that reliable energy services are maintained and energy efficiency improvements do not reduce comfort settings, energy performance contracts (EPCs) normally specify the standards of service to be met.
Provincial guidelines, codes, and standards for acceptable health and safety standards within facilities are also available and should always be referenced when undertaking an energy performance project.
What are energy audits and why are they important?
Energy audits are systematic inspections of building systems and operations. They are used for the collection of information and data relating to energy use and associated building operations.
Depending on the type, degree or level of inspection, energy audits can provide information ranging from quick, low-cost indicators of energy saving potential to data-rich monitoring, modelling and simulation exercises for the preparation of detailed plans and specification for complex retrofits.
What types of energy audits are associated with energy efficiency projects?
There are three basic levels of energy audits, depending on the level of detail required:
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A PRELIMINARY AUDIT identifies the scope of potential energy savings by providing background information on the structure and energy use patterns. This audit helps determine the requirements for a Request for Proposal (RFP), should the decision be made to go forward with an energy performance contract (EPC). The time required to perform this audit varies between one to three days.
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A WALKTHROUGH AUDIT is often performed upon awarding an EPC in order to confirm data collected in the preliminary audit. The time required to perform this audit varies between three to ten days.
- The DETAILED AUDIT takes inventory of the building's energy consuming technologies so that energy saving calculations can be made. This audit is particularly important because the analysis forms the basis for determining the comprehensive set of improvements and related services to be provided. Detailed audits are usually conducted by energy service companies (ESCOs) that have been selected for EPCs through formal RFP evaluation processes.
It is important to note that final specification for requesting an energy audit for your facilities should be reviewed with experienced building technicians and qualified engineers. Care should be taken to request an energy audit for specific systems and facilities, only to the level required to get to the next decision level, thus getting the most out of your budget.