The State of Alabama has one statue that covers Guaranteed Energy Savings Performance Contracting (GESPC) in four public market sectors: state agencies, local units of government, universities, and K-12 school districts. The length of contracts are limited to 20 years. calculation.
The legislation allows for a scope of work that includes all measures that pay for themselves in energy savings, , use of water savings, and renewable technologies.
The statue requires the energy service company (ESCO) provide an energy savings guarantee.
In the past there have been examples where the verified savings have exceeded the guarantee:
- Limestone County Schools implemented one of the state's largest public school renovation initiatives. The turnkey energy efficiency project included significant upgrades to all 13 campuses in the county, saving $500,000 annually, all while providing an environmental and economic boost to the community.
- Alabama Department of Corrections operates 29 major facilities with two oldest being the Draper Correctional Facility(1939) and Tutwiler Prison for Women (1942). The newest, Easterling and Ventress and the Bibb Correctional Facilities were build in the 1990s. Capital Improvement Projects were jump-started with a $21 million grant from SEP and was used to leverage $100 million in energy conservation retrofits through a GESPC. More than 200 energy projects have been funded in 32 correctional facilities statewide. This project is saving more than $1.6 million in annual energy costs.
- In 2012, Foley City Council implemented a $2.9 million GESPC. Funding for the energy efficiency projects came from the Qualified Energy Conservation Bond process -- a low-cost federal loan program administered by the state, and a Local Government Energy Loan with zero interest. The guaranteed energy savings will total $4.3 million over a 20-year period and will result in a 36 percent reduction in utility costs.
The state's GESPC Program Administrator also supports other energy programs within the Alabama Department of Economic and Community Affair's Energy Division.
The state program uses a set of standardized instruments for use with GESPC for state facilities and a separate set of standardized contract instruments for units of local government.
The state's public sector program manager participates in the Alabama Energy Services Coalition (ESC) Chapter. The Chapter has been in existence for over 10 years and is known for its outreach and education efforts and events. The Chapter conducts statewide workshops as well as having provided speakers for panels at various conference throughout the state.
The Chapter meets every month.