What Is the New Mexico Epc Program?
The New Mexico Energy Performance Contracting (EPC) program is an initiative by the state government to help public entities and institutions reduce energy consumption and save on utility costs. The program is designed to assist in identifying and implementing energy efficiency measures in existing buildings and infrastructure. By utilizing an EPC, public entities can upgrade their facilities without incurring upfront costs, as the energy savings generated from the improvements are used to repay the investments over time.
How Does the New Mexico Epc Program Work?
The New Mexico EPC program follows a comprehensive process to ensure successful implementation of energy-saving measures. The steps involved include:
1. Initial Assessment: A qualified energy services company (ESCO) conducts an energy audit to identify potential energy-saving opportunities in the facility. The audit evaluates the building’s equipment, systems, and operational practices to determine areas for improvement.
2. Investment Grade Audit (IGA): After the initial assessment, the ESCO performs a more detailed analysis and develops an investment-grade audit. This audit provides a comprehensive evaluation of the proposed energy-saving measures, including cost estimates, energy savings projections, and funding options.
3. Project Approval: The public entity reviews and approves the investment-grade audit, which outlines the scope of work, associated costs, and expected energy savings. Once approved, the project moves forward to the implementation phase.
4. Implementation: The ESCO coordinates with the public entity to execute the energy-saving measures outlined in the investment-grade audit. This can include equipment upgrades, building envelope improvements, lighting retrofits, and HVAC system enhancements. The ESCO typically oversees all aspects of the project, ensuring proper installation and performance.
5. Measurement and Verification: Once the upgrades are complete, the ESCO monitors and verifies the actual energy savings achieved. This step is crucial in validating the performance of the implemented measures and ensuring that the projected energy savings are met.
6. Financing and Repayment: The EPC program allows public entities to access financing options from private lenders or utilize existing capital funds. The repayment of the investment is made through the energy savings generated by the project. The ESCO guarantees a minimum level of energy savings, ensuring that the public entity realizes a positive cash flow from day one.
7. Ongoing Monitoring: After the repayment period, the public entity continues to benefit from reduced energy costs, improved comfort, and enhanced facility performance. The ESCO may offer ongoing monitoring services to ensure that the energy-saving measures continue to deliver the expected results.
FAQs about the New Mexico Epc Program:
1. Who is eligible to participate in the New Mexico EPC program?
The program is open to public entities and institutions within the state, including government agencies, school districts, colleges, universities, and municipalities.
2. Can the program be used for new construction projects?
No, the New Mexico EPC program is specifically designed for existing buildings and infrastructure.
3. Are there any upfront costs for participating in the program?
No, the program allows public entities to implement energy-saving measures without any upfront costs. The investments are repaid through the energy savings generated from the improvements.
4. How long does the repayment period typically last?
The repayment period varies depending on the project size and complexity, typically ranging from 10 to 20 years.
5. Can the program be used for renewable energy projects?
Yes, the New Mexico EPC program supports a wide range of energy-saving measures, including renewable energy installations like solar panels, wind turbines, and geothermal systems.
6. Are ESCOs selected through a competitive bidding process?
Yes, public entities are encouraged to solicit proposals from multiple qualified ESCOs to ensure competitive pricing and expertise.
7. What are the benefits of participating in the New Mexico EPC program?
Participating in the program enables public entities to reduce energy consumption, lower utility costs, improve facility comfort and performance, and contribute to environmental sustainability goals.
In conclusion, the New Mexico EPC program offers a valuable opportunity for public entities and institutions to enhance their buildings’ energy efficiency and reduce operational costs. By partnering with qualified ESCOs, these entities can implement energy-saving measures without upfront expenses and repay the investments through the resulting energy savings. The program contributes to both fiscal responsibility and sustainable practices, making it an attractive option for public entities seeking to improve their facilities.