Investment Grade Audit (IGA)/Project Proposal
The IGA is an interactive process between your organization and the ESP. The ESP gathers and analyzes information and presents its findings to you throughout the IGA process. In return, it is in the best interest of your organization to ensure that the ESP has access to the information and facilities needed to gather the required data.
The IGA process serves as the foundation of EPC and is critical to the success of the project. The data collected during this process is essential to determining baseline consumption, cost-saving measure (CSM) savings, and actual savings.
The ESP conducts a preliminary analysis of your facility in which the ESP staff will collect data and background information related to facility operations and energy use for the past three years. This initial survey will involve a variety of activities including interviews with the facility manager(s), staff, and building occupants, as well as a review of all major energy-using equipment. If necessary, the ESP will also perform “late-night” surveys outside of normal use hours to confirm system and occupancy schedules. Your entity will need to accommodate all reasonable requests made by the ESP in pursuit of gathering quality usage data. From this survey, the ESP will develop and deliver an initial analysis, identifying potential cost-saving measures in your facility (regardless of cost-effectiveness), a project baseline, and cost and savings estimates. Furthermore, this report should detail the potential for the successful development of an EPC and provide a brief list of recommended CSMs for further analysis.
At this point you will want to determine whether these preliminary findings fulfill your organization’s requirements. If not, you may want to terminate the process according to the terms in the IGA contract. Keep in mind, however, that if you terminate you may remain responsible for the cost of the IGA as it has been performed to this point.
Further Analysis and Audit Report / Project Proposal
Assuming the initial findings do fulfill your needs, the ESP will then continue with the IGA, analyzing the agreed-upon measures, developing cost estimates, and identifying utility savings. The results of this analysis will then be compiled into a final report. The report will provide an engineering and economic basis for the negotiation of a potential EPC between you and the ESP. The report will include:
- A detailed description of your facility (i.e., existing equipment, systems, and conditions)
- Baseline consumption and rates for energy, water, and other utilities
- Detailed information regarding proposed cost-saving measures including estimated costs and guaranteed savings
- Preliminary commissioning and measurement and verification (M&V) plans
- Project cash flow analysis including guaranteed savings, O&M savings, M&V costs, and other economic factors regardless of guarantee status
It is recommended that you submit a copy of this report to DEQ for an independent review of the findings. Doing so will help ensure that the processes set down in the contract were fulfilled and that all energy and cost calculations, proposed improvements, and M&V plans are reasonable. Note that submission is mandatory if state funds are being used to finance the project.
Upon receiving the final report, you will need to sign and submit a copy of the Certificate of Acceptance for the IGA report to the ESP and DEQ.