Minnesota State introduces energy savings performance contracting pilot for campuses

Minnesota State trustees received an informational briefing on the system27s energy savings performance contracting program, also called a Guaranteed Energy Savings Program (GASP), an approach that finances energy and operational upgrades using guaranteed future savings rather than upfront legislative capital.

Associate Vice Chancellor Brian Swanson told the Finance and Facilities Committee that the system office began developing the program after trustees asked staff to explore alternative financing to address asset preservation without relying solely on legislative funding. System director for design and construction Ryan Rees outlined program mechanics, examples and pilot projects. "Energy savings performance contracting is a contract mechanism to leverage future energy savings to complete energy related projects," Rees said. He explained projects are financed and amortized up to 20 years and that contractors known as ESCOs (energy services companies) guarantee the projected…