How does FCIP work?
FCIP is based on energy performance contracting - a method of financing, designing and installing comprehensive energy efficiency improvements with little to no upfront capital. The costs of energy retrofits are paid for over time by future guaranteed savings from utility and maintenance budgets.
In brief, here’s how the program works: Contact the Kansas Energy Office at 785-271-3352. We’ll arrange for multiple Energy Service Companies (ESCOs) from the KCC’s list of pre-qualified companies to conduct a free walkthrough of your facility, known as a preliminary energy assessment (PEA). If the high-level results are promising, you select an ESCO from the pre-qualified list and contract with that ESCO for an in-depth energy assessment (called an Investment Grade Audit, or IGA) of your facilities and utility bills. At the end of the assessment, the ESCO will provide a report of potential energy improvements and the cost savings associated with those improvements. If you decide to proceed, you will enter into an Energy Performance Contract (EPC) with the ESCO for installation of energy improvements selected from the audit.
The key to energy performance contracting is developing a broad package of energy improvements that, taken together, reduce the use of electricity and gas enough to pay for the cost of the improvements (including financing costs) over time through savings on your utility bill.
Throughout the process, FCIP staff will attend select meetings you have with the ESCO, review all contracts and reports, and provide technical assistance and support on your behalf. In addition, FCIP must determine whether the proposed project will meet payback requirements imposed by State law as well as specific program requirements.
Who can participate?
Kansas Statutes Authorize Energy Performance Contracting for Political Subdivisions and State Agencies
KSA 75‐37,125 allows political subdivisions and state agencies to enter into a contract or lease‐purchase agreement for an energy conservation measure, which is defined as an energy study, audit, improvement or equipment designed to provide energy and operational cost savings at least equivalent to the amount expended for the study/audit/improvement/equipment over a period of not more than 30 years after the equipment or improvement is installed or becomes operational.
How can I learn more?
Contact the Kansas Energy Office at 785-271-3352 and check out the links below:
- KSA 75-37,125: Energy Conservation Measure
- Frequently Asked Questions
- FCIP Guidance
- FCIP Informational Brochure
- List of Pre-Qualified ESCOs and Maximum Pricing
- Investment Grade Audit Agreement (IGAA) Master
- Energy Performance Contract (EPC) Master
- Memorandum of Understanding (MOU) for Program Participation
- Energy Performance Contract Workshop, November 21, 2019
Guidance from other organizations: