How to Use The Energy Efficiency RFP Guidance

Purpose

Energy efficiency offers abundant and largely untapped cost and energy savings opportunities at most water and wastewater treatment facilities. Many water-wastewater utilities wish to include energy efficiency provisions in facility upgrades and new construction. However many utilities and municipalities do not know how to clearly and effectively include energy efficiency in project requests for qualifications (RFQs) or requests for proposals (RFPs). State and electric utility-sponsored efficiency programs have resources dedicated to the water-wastewater sector, and may offer technical assistance, training or incentives for qualifying projects. The Energy Efficiency RFQ/RFP Guidance for Water-Wastewater Projects (The Guidance) is an informational resource for water and wastewater utilities seeking to improve the energy performance of their facilities through an upgrade, expansion or new construction project. The Guidance discusses key components of an energy efficiency RFQ or RFP and provides focused recommendations for particular energy intensive equipment and processes. It also includes sample language, which RFQ/RFP writers may, if appropriate, transfer directly to their own solicitations. After reading this Guidance, municipal RFQ/RFP writers should have an increased understanding of how to translate interest in energy efficiency into solicitations for energy efficient facility designs.  

Note: There does not seem to be a generally accepted definition for what belongs in an RFP versus what belongs in an RFQ. One municipality’s RFP looks like another’s RFQ. For this reason, the focus to date has been on considerations and language that might be appropriate for inclusion regardless of the structure of the ultimate document. For the purposes of this paper, though I refer generally to an RFQ, all of the information applies as well to an RFP.

Background

Energy costs are a major concern for water-wastewater utilities and municipal officials, accounting for as much as 55% of facility operating budgets (Dimitriou 2007, MA DEP 2007). Process upgrades, expansion and new facility construction pose the best opportunities to thoroughly integrate energy efficiency and biogas energy production into the water or wastewater treatment operations. Municipal utilities across the U.S. and Canada are interested in pursuing opportunities to save energy and money at their facilities. However many utilities do not have the expertise on staff to incorporate efficiency into solicitations for design services, or to evaluate project proposals on an energy performance basis. This is a major barrier to realizing the 20-40% energy savings potential available at many water-wastewater treatment facilities (Jones et al. 2007, WI Focus on Energy 2007), and contributes to unnecessary costs, energy consumption and pollutant emissions. 

Any water-wastewater utility or municipality—regardless of size or process—conducting an upgrade or new construction project should contact its local electric and/or gas utility to learn whether its project is eligible to receive technical support, incentives, or other efficiency program services. State, regional and utility energy efficiency programs assist end users with improving the energy performance of their facilities, buildings or homes by providing financial incentives, technical expertise, training and other services. The range of program offerings to utility customers includes prescriptive incentive programs, energy studies and audits, customized project support, new construction programs, and others. To see a list of energy efficiency program administrators, and find out what offerings are available in your area, see http://www.cee1.org/cee/members.php3.

Energy efficiency program can provide critical support to energy improvements at small facilities, where programs’ limited financial resources can mean the difference between top-of-the-line high-efficiency equipment and the least expensive option. Whereas retrofit or new construction of large treatment facilities may run into the tens of millions of dollars and overshadow efficiency program incentives, smaller facilities are likely to see their financial analyses and decisions deeply affected by program dollars. Because program incentives typically work on a percent of project (or equipment) cost basis – up to a certain capped amount – lower-cost projects may be eligible for incentives up to fifty percent (or more) of project costs. Small treatment facilities sit squarely in the “strike zone” for efficiency programs: small facilities are generally more energy intensive than medium and large facilities (Ast et al. 2008), they have a greater need for technical assistance and resources, and their budgets are on a scale at which program incentives can have a large impact.

The American Recovery & Reinvestment Act (ARRA) provided water-wastewater utilities with access to funding opportunities for green projects, including energy efficiency and biogas production. Given the current Administration’s focus on energy and climate issues at both the state and federal level, it is not unreasonable to think that additional funding may be available for green projects on an ad hoc or regular annual basis. We intend that the Guidance should allow water-wastewater utility managers to capture more state and federal funding, and to put that funding to better use improving energy performance at their facilities.

How to Use The Guidance  

The Consortium for Energy Efficiency (CEE) developed The Guidance for water-wastewater utility managers and municipal officials to use in composing solicitations for design services. The Guidance has two key components: (1) it outlines RFQ/RFP structure and content and provides recommendations specific to the incorporation of energy efficiency, (2) it provides high-level information and recommendations for particular energy intensive processes.

The Energy Efficiency RFP Guidance is not an engineering best practices resource. It is meant to act as a bridge between the rapidly expanding knowledge base regarding best practices for energy efficiency, and the implementation of these practices in project design and realization. It is by no means a complete accounting of energy efficiency opportunities, but rather an effort to shift current solicitation processes toward greater prioritization of energy considerations.

For the purposes of this document, the term energy efficiency will be used to refer to improvements in energy performance relative to a baseline or standard practice. Energy efficiency measures or projects are changes or upgrades to equipment or systems, or changes in behavior that result in a decrease in energy consumption. In water-wastewater treatment, common energy efficiency measures include upgrades to process equipment such as blowers and diffusers, pump optimization, addition of variable speed drives, and process optimization.

Every RFP or RFQ will likely be unique, including what aspects of energy efficient design, equipment, and process are appropriate to that project. The sample language provided in this document will be appropriate for many but not all projects. Additionally, care should be taken to thoroughly understand the cost and schedule implications of particular efficiency measures, prior to making specific recommendations in requests for services. Before issuing a request or investing in or entering into a design contract, CEE recommends consultation with procurement and engineering professionals. The Consortium for Energy Efficiency (CEE) developed this Guidance document for water-wastewater utility managers and municipal officials to use in composing solicitations for design services. The Guidance has two key components: (1) it outlines RFP structure and content and provides recommendations specific to the incorporation of energy efficiency, (2) it provides high-level information and recommendations for particular energy intensive processes.

The Energy Efficiency RFQ-RFP Guidance

Energy efficiency program administrators identified a need among their municipal customers for consistent information on energy efficiency opportunities at water and wastewater treatment facilities, and how to incorporate these opportunities in solicitations for design services. In response programs began to explore the opportunity to develop nationally-consistent guidance through the CEE Municipal Water & Wastewater Committee. Early drafts of the Guidance were based on Guidelines for Writing the Green RFP from the American Institute of Architects. These early drafts also benefited from review by a panel of consulting engineers, and by water and wastewater facility operators and municipal purchasing managers from the Northeast region. Feedback from each of these groups has been incorporated into The Guidance. The Water Environment Federation (WEF) was instrumental in development of the Guidance. WEF members from throughout the U.S. contributed valuable feedback throughout development of the Guidance.

The Energy Efficiency RFQ-RFP Guidance is a set of recommendations and model language for officials to use in solicitations for design services. The specific recommendations provide information and context as to RFP structure, energy consumption at treatment facilities, and general information about related concepts such as lifecycle cost analysis. The model language will equip RFP writers with ready-to-use language clearly indicating to respondents the tools, standards and methods to use in their evaluation of efficiency opportunities in project design.

The Guidance contains model language that may be inserted directly into any agency’s project request, where appropriate. Model language is presented throughout the text in italics. What follows is general guidance, and will not apply at every facility. If using the model language provided, it is important to have your document reviewed—preferably by an engineering professional—to ensure that it is coherent and addresses your agency’s specific concerns.

The Guidance document contains two sections: 

• Section I outlines the structure and content of an RFP, including suggested modifications to incorporate consultant qualifications, skills, and methods relevant to ensuring appropriate consideration of energy savings opportunities. It then provides general guidance on topics relevant throughout an Energy Efficiency RFP.
• Section II provides specific recommendations – including tools, standards and best practices – for particular energy intensive applications including pumping, aeration, solids handling.