Summary Table of Contents I. Main Body of Agreement II. Attachment A – Scope of Work III. Attachment B – Compensation, Payment and Performance Provisions IV. Attachment C – Performance Incentive Mechanism V. Attachment D – Calculation of Total Cap VI. Attachment E – Estimated Contractor EEC Funds VII. Attachment F – Budget VIII. Attachment G – List Of Key Personnel IX. Attachment H – Distribution List for Reports and Other Information Sharing Documents X. Attachment I – Sections B.3 – B.6 and F of the Response XI. Attachment J – The RFP 1 Extended Table of Contents I. 1. 2. 3. 4. 5. 6. 7. 8. 9. Main Body of Agreement Parties ........................................................................................................................... 1 Definitions .................................................................................................................... 1 Scope of Work .............................................................................................................. 4 Standards of Performance ............................................................................................ 4 Compensation .............................................................................................................. 5 Term of Agreement ...................................................................................................... 5 Prior Approvals ............................................................................................................. 6 Amendment .................................................................................................................. 6 Termination of Agreement ........................................................................................... 7 A.Terminations at Will ................................................................................................ 7 B. Termination for Cause ............................................................................................ 7 C. Termination – Bankruptcy ...................................................................................... 7 D.Termination – Inadequate Appropriations ................................................................ 7 E. Responsibility of Parties Upon Expiration or Termination ..................................... 8 10. Committed Incentive Payments ................................................................................... 9 11. Forward Capacity Market Obligations.......................................................................... 9 12. Notifications ............................................................................................................... 10 13. Reporting Requirements ............................................................................................ 10 14. Insurance .................................................................................................................... 10 15. Relationship to Board ................................................................................................ 12 16. Indemnification .......................................................................................................... 12 17. Assignment or Sublet of Contract .............................................................................. 12 18. Records Available for Audit or Inspection ................................................................ 13 19. Inspection of Work ..................................................................................................... 13 20. Ownership of Data, Record, and Intellectual Property .............................................. 14 A. Data ....................................................................................................................... 14 B. Work Product ........................................................................................................ 14 C. Equipment and Materials Provided by or for Use by State .................................. 14 D. Research Reports and Publications ....................................................................... 15 E. Extension to Subcontractor or Others ................................................................... 15 F. Survival of Paragraph 20 ..................................................................................... 16 21. Permits, Laws, Regulations and Public Ordinances ................................................... 16 22. Conflict-of-Interest Provision .................................................................................... 16 23. Legislative Testimony ................................................................................................ 17 24. Appearance in Board Proceedings ............................................................................. 17 25. Retail Sales Restrictions ............................................................................................ 18 26. Use of EEU’s Name ................................................................................................... 18 27. Gifts and Gratuities .................................................................................................... 19 28. Fair Employment Practices ........................................................................................ 19 29. Force Majeure ............................................................................................................ 19 30. Severability ................................................................................................................ 19 31. Survival of Requirements .......................................................................................... 19 2 32. Waiver ........................................................................................................................ 20 33. Applicable Law .......................................................................................................... 20 34. Entire Agreement and List of Attachments ................................................................ 20 II. Attachment A – Scope of Work Introduction .................................................................................................................... A-1 1. Administration ......................................................................................................... A-1 A. Budgeting ............................................................................................................ A-1 B. Financial Management ........................................................................................ A-2 C. Contract Management ......................................................................................... A-2 D. Dispute Resolution Process ................................................................................. A-2 E. Information Technology, Data Collection, Reporting ........................................ A-2 (1) Customer-Specific and Competitively Sensitive Information ..................... A-2 (2) Data Collection ............................................................................................ A-3 (3) Distribution Utility Planning and Ratemaking Support Data ...................... A-4 (4) Administrative and Financial Data .............................................................. A-4 (5) Data System Documentation/User’s Manual ................................................ A-4 (6) Required Reports .......................................................................................... A-4 (7) Information Requests ................................................................................... A-8 2. Services And Initiatives ........................................................................................... A-8 A. Markets, Services and Initiatives ........................................................................ A-8 (1) Core Services ................................................................................................ A-8 (2) Targeting ..................................................................................................... A-10 B. Annual Plan ....................................................................................................... A-11 C. Coordinate EEU Service Delivery with BED ................................................... A-12 D. Manage EEU Staff and Subcontractors ............................................................ A-12 E. Quality Assurance ............................................................................................. A-13 F. Coordinate with Other Energy Efficiency Activities ........................................ A-13 G. Technical Assistance and Educational Support for Energy Code ..................... A-13 H. Coordinate with Vermont Distribution and Transmission Utilities .................. A-13 I. Working with and Through Vermont Product and Service Providers ............... A-14 J. Installation of Energy Efficiency Measures ....................................................... A-14 K. Consumer Marketing, Public Information, and Education ............................... A-15 L. Develop Independent Funding Sources ............................................................ A-15 M. Cost-Effectiveness Screening ........................................................................... A-15 N. Support for Resource Planning, Market Assessment and Evaluation................ A-16 O. Applied Research, Development and Demonstration ........................................ A-17 P. Vermont Distribution Utility Planning .............................................................. A-17 Q. Limitations on Performance Contracting and Loan Guarantees ........................ A-17 R. Participation in Proceedings Implementing Changes to the EEU Program ....... A-17 S. Participation in Working Group Regarding EEC Exemption Mechanism ........ A-18 T. Participation in Regional Capacity Market Activities ....................................... A-18 U. Transition ........................................................................................................... A-18 V. Work to be Performed After December 31, 2008 .............................................. A-19 3 III. Attachment B – Compensation, Payment and Performance Provisions 1. Total Compensation ................................................................................................. B-1 2. Eligible Costs and Expenses .................................................................................... B-1 3. Revenues and Costs Associated With Regional Capacity Market Activities ........... B-2 4. Reimbursement for Costs Associated with Distributed Utility Planning ................ B-3 5. Limitation on Recovery of General Administrative Costs ...................................... B-3 6. Limitation on Recovery of Information Technology Costs ..................................... B-3 7. Invoice Requirements .............................................................................................. B-3 8. Invoice Review and Approval ................................................................................. B-3 9. Payment of Invoices ................................................................................................. B-4 10. Performance Incentive Mechanism .......................................................................... B-4 11. Annual Request for Carryover of Funds .................................................................. B-5 12. Use of Additional Contractor EEU Funds Pursuant to Targeting Order................. B-5 13. No Employee Benefits for Contractor ..................................................................... B-5 14. Reliance by State on Representations ...................................................................... B-6 15. Set Off ...................................................................................................................... B-6 16. Taxes Due to the State ............................................................................................. B-6 17. Suspension of Payment to Contractor ..................................................................... B-6 18. No Resale ................................................................................................................. B-7 IV. Attachment C – Performance Incentive Mechanism 1. Overview ................................................................................................................. C-1 2. Description of Performance Indicators ................................................................... C-2 A. Cumulative Annual Electricity Savings .............................................................. C-2 (1) Weighting ..................................................................................................... C-2 (2) 100% Target Level ....................................................................................... C-2 (3) Threshold and Scaling up to 100% Target Level .......................................... C-2 (4) Performance Award up to 100% Target Level ............................................. C-3 B. Total Resource Benefits ...................................................................................... C-3 (1) Weighting ..................................................................................................... C-3 (2) 100% Target Level ....................................................................................... C-3 (3) Threshold and Scaling up to 100% Target Level .......................................... C-3 (4) Performance Award up to 100% Target Level ............................................. C-4 C. Summer Peak Demand Savings ......................................................................... C-4 (1) Weighting ..................................................................................................... C-4 (2) 100% Target Level ....................................................................................... C-4 (3) Threshold and Scaling up to 100% Target Level .......................................... C-4 (4) Performance Award up to 100% Target Level ............................................. C-5 D. Winter Peak Demand Savings ............................................................................ C-5 (1) Weighting ..................................................................................................... C-5 (2) 100% Target Level ....................................................................................... C-5 (3) Threshold and Scaling up to 100% Target Level .......................................... C-5 (4) Performance Award up to 100% Target Level ............................................. C-6 E. Summer Peak Demand Savings in Certain Geographic Areas ............................. C-6 4 (1) Weighting ...................................................................................................... C-6 (2) 100% Target Level ........................................................................................ C-6 (3) Threshold and Scaling Up to 100% Target Level ......................................... C-6 (4) Performance Award up to 100% Target Level ............................................. C-7 F. Winter Peak Demand Savings in Certain Geographic Areas ................................ C-7 (1) Weighting ...................................................................................................... C-7 (2) 100% Target Level ........................................................................................ C-7 (3) Threshold and Scaling up to 100% Target Level .......................................... C-8 (4) Performance Award up to 100% Target Level ............................................. C-8 G. Stocking of Compact Fluorescent Light Bulbs by Grocery Stores ..................... C-8 (1) Weighting ..................................................................................................... C-9 (2) 100% Target Level ....................................................................................... C-9 (3) Threshold ..................................................................................................... C-9 (4) Performance Award ..................................................................................... C-9 H. Community Awareness .................................................................................... C-10 (1) Weighting ................................................................................................... C-10 (2) 100% Target Level ..................................................................................... C-10 (3) Threshold and Scaling up to 100% Target Level ........................................ C-10 (4) Performance Award ................................................................................... C-10 I. Revised Avoided Cost Projections, Costing Periods and Line Loss Factors ...... C-11 3. Additional Performance Awards for Achievement Above 100% Target Level .... C-11 4. Minimum Performance Requirements .................................................................. C-12 A. Five Minimum Performance Requirement Standards ....................................... C-12 B. Calculating Performance Awards ..................................................................... C-14 5. Documentation and Verification ............................................................................ C-15 A. Cumulative Annual Electricity Savings, Total Resource Benefits, Summer Peak Demand Savings, Winter Peak Demand Savings, Summer Peak Demand Savings in Geographic Areas, Winter Peak Demand Savings in Geographic Areas .... C-15 (1) Verification Process ................................................................................... C-15 (2) Establishment and Documentation of Savings Estimates ......................... C-16 (3) Updating of Estimates ............................................................................... C-16 B. Stocking of Compact Fluorescent Light Bulbs by Grocery Stores ................... C-17 C. Community Awareness ..................................................................................... C-17 (1) Period of Performance ............................................................................... C-17 (2) Definition of Community .......................................................................... C-17 (3) Percentage of Community Participation ................................................... C-17 (4) Percent Energy Use Reduction .................................................................. C-18 (5) Verification Process .................................................................................. C-18 D. Minimum Performance Requirements .............................................................. C-19 (1) Verification Process ................................................................................... C-19 6. Table C-1: 2006-2008 Performance Indicators and Awards 7. Table C-2: 2006-2008 Threshold and Scaling up to 100% Target Level 8. Table C-3: 2006-2008 Scaling Above 100% Target Level 9. Table C-4: 2006-2008 Minimum Performance Requirements 10. Table C-5: Minimum TRB per County for Minimum Performance Requirement #5 5 V. Attachment D – Calculation of Total Cap VI. Attachment E – Estimated Contractor EEC Funds VII. Attachment F – Budget VIII. Attachment G – List of Key Personnel IX. Attachment H – Distribution List for Reports and Other Information Sharing Documents X. Attachment I – Sections B.3 – B.6 and F of the Response B.3 Overall Strategic Approach ....................................................................................... I-1 B.4 Services B.4.1 Business Sector Overview .......................................................................... I-6 B.4.2 Residential Sector Overview .................................................................... I-15 B.4.3 Core Markets ............................................................................................ I-23 B.4.3.1 Business New Construction ....................................................... I-24 B.4.3.2 Existing Businesses ................................................................... I-33 B.4.3.3 Customer Credit ......................................................................... I-42 B.4.3.4 Residential New Construction ................................................... I-44 B.4.3.5 Existing Homes .......................................................................... I-55 B.4.3.6 Retail Efficient Products ........................................................... I-63 B.4.4 Targeted Markets ..................................................................................... I-73 B.4.4.1 Colleges and Universities .......................................................... I-74 B.4.4.2 Dairy Farms ............................................................................... I-79 B.4.4.3 Industrial .................................................................................... I-83 B.4.4.4 K-12 Schools ............................................................................. I-88 B.4.4.5 Services to Low-Income Vermonters ........................................ I-94 B.4.4.6 Multifamily Housing ............................................................... I-100 B.4.4.7 Ski Areas .................................................................................. I-105 B.4.4.8 State Buildings ......................................................................... I-110 B.4.4.9 Water and Wastewater Treatment Facilities ............................ I-115 B.4.5 Cross-Sector Activities .......................................................................... I-120 B.4.5.1 Better Buildings by Design Conference .................................. I-121 B.4.5.2 Community-Based Energy Projects ......................................... I-125 B.4.5.3 Coordination with Other Energy-Efficiency Activities ........... I-132 B.4.5.4 Distributed Utility Services ..................................................... I-140 B.4.5.5 Energy Code Activities ............................................................ I-142 B.4.5.6 Leveraging Additional Funding .............................................. I-144 B.5 General Administration ...................................................................................... I-146 B.6 Planning ............................................................................................................. I-166 F. Marketing and Consumer Information ............................................................... I-175 6 IX. Attachment J – The RFP 1. 2. 3. 4. 5. 7 Introduction ................................................................................................................ 7 A. Purpose of this Request for Proposals .................................................................... 7 B. Overview of Institutional Structure ........................................................................ 8 C. Project History/Background.................................................................................. 10 D. Mandatory Requirements ...................................................................................... 11 E. Performance Contract ........................................................................................... 12 F. Relationship of the EEU to the Board .................................................................. 12 G. Appearance of the EEU in Board Proceedings ..................................................... 12 H. Legislative Testimony by the Eeu ........................................................................ 13 I. Position of the EEU in Future Electricity Sales in Vermont ................................ 13 Energy Efficiency Market Initiatives and Services Descriptions ............................. 14 A. Initial Core Programs ........................................................................................... 14 (1) Commercial and Industrial Market Opportunities ......................................... 15 (2) Commercial and Industrial New Construction .............................................. 15 (3) Dairy Farm Program ....................................................................................... 15 (4) Residential New Construction ........................................................................ 16 (5) Residential Low-Income ................................................................................. 16 (6) Efficient Products Program ............................................................................. 16 (7) Emerging Market Initiatives ........................................................................... 16 B. 2003 Energy Efficiency Service Reorganization .................................................. 17 C. 2004 and 2005 Energy Efficiency Services and Initiatives .................................. 18 Scope of Services ........................................................................................................ 20 A. Mission and Objectives ......................................................................................... 20 B. Organization of this Section.................................................................................. 21 C. General Administration ......................................................................................... 21 D. Service Planning, Operations and Implementation ............................................... 26 E. Program Transition Responsibilities ..................................................................... 35 Special Project Considerations ................................................................................... 37 A. Customized Data Tracking and Reporting Software ............................................ 37 B. Contract Administrator and Fiscal Agent ............................................................. 38 C. EEU Use of Subcontractors .................................................................................. 38 D. Certain Subcontracting Provisions ........................................................................ 38 E. Distributed Utility Planning .................................................................................. 38 F. Program Budget .................................................................................................... 38 G. Contract Terms...................................................................................................... 40 H. Property Owned by the State ................................................................................ 40 Response Format and Proposal Requirements ............................................................ 41 A. Summary ............................................................................................................... 41 B. Technical Approach .............................................................................................. 41 C. Organizational and Management Capability ....................................................... 45 D. EEU Budget ......................................................................................................... 47 E. Unique Assets ....................................................................................................... 49 F. Marketing and Information Strategy..................................................................... 49 G. Approach to Program Transition .......................................................................... 49 H. Information Technology Plan ............................................................................... 49 I. Managing Customer-Specific and Competitively Sensitive Information ............. 49 J. Insurance Certificate ............................................................................................. 50 K. Transmittal Letter.................................................................................................. 50 6. Proposal Evaluation .................................................................................................... 51 A. Selection Process .................................................................................................. 51 B. Evaluation Criteria ................................................................................................ 51 7. Stipulated Administrative Requirements .................................................................... 55 A. Bidder Instructions ................................................................................................ 55 B. RFP Conditions..................................................................................................... 57 8. DPS Website ............................................................................................................... 61 9. Definition of Terms.................................................................................................... 62 10. Appendices ................................................................................................................. 63 8