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BGS responds to audit of State Energy Management Program, outlines fixes and reauthorization plans
Summary
The Department of Buildings and General Services told the committee it agrees with an auditor's findings about gaps in data tracking, savings verification and baseline setting for the State Energy Management Program and described steps to improve measurement and verification, staffing and automated data sharing ahead of program reauthorization.
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The Department of Buildings and General Services (BGS) told the House Energy committee on April 23 that it accepts the auditor's findings on the State Energy Management Program (SEMP) and is implementing changes to improve tracking, verification and reporting.
Deputy Commissioner Emily Cassiki and Brian Su, state energy program manager at BGS, briefed the committee on the agency's reasoned response to an audit covering fiscal year 2016 and the January report's recommendations. The audit cited deficiencies in data tracking for facilities not owned by BGS, measurement and verification of projected energy savings, inconsistent baseline setting, and incomplete reporting of completed projects. BGS said it generally agreed with those findings and laid out a set of procedural and staffing commitments to address them.
BGS described the program structure: the SEMP was established by 2014 legislation (Act 178) and operates two revolving funds — a state resource management revolving fund (approximately $1.5 million) and a larger capital loan facility administered through the treasurer (about $8 million in credit capacity). The agency said both funds were designed around projects that must demonstrate lifecycle cost benefits and that many of the low‑cost —low‑hanging fruit— measures available in 2014 have already been implemented.
BGS acknowledged several operational gaps the auditors flagged. Staff told the committee they currently upload utility data and benchmarking measures into Energy Star Portfolio Manager manually, which increases risk of data entry error and limits real‑time verification. BGS said prior efforts to enable automated meter data sharing were discussed with utilities and consultants but were previously cost‑prohibitive; staff are renewing those conversations and identified other states where automation has been implemented.
On measurement and verification, BGS said it typically commissions audit reports and estimates projected savings at the design stage, but that stronger resources are needed to verify savings persist over time and to capture changes in installed measures or building operations. The department noted turnover, communication gaps between divisions and project scope changes have complicated post‑installation verification in some cases.
BGS also said staffing shortages had reduced the program's delivery capacity but that it had recently filled at least one dedicated project manager role and planned additional hiring. Staff emphasized that the program is currently authorized through 2027 and that reauthorization next year would strengthen recruitment and program stability.
Committee members pressed for better unit‑level tracking (kilowatt‑hours and gallons of fuel) in addition to dollar savings, and asked BGS to return for a follow‑up session focused on the Municipal Energy Resilience (MER) program. BGS agreed to schedule a follow‑up presentation.
Next steps: BGS committed to updating operating procedures, improving baseline methodologies, pursuing automated data feeds where feasible, strengthening measurement and verification practices, and coordinating with partner agencies ahead of 2027 reauthorization.

