Overview and Background

The Puerto Rico Energy Policy Program (EPP) is the lead entity in charge of implementing

the public policy set forth in Act No. 19 of January 17, 2012, known as the Energy Savings Performance Contracts Act (Act 19-2012), and Act No. 57 of May 27, 2014, as amended, known as the Energy Transformation and Relief Act (Act 57-2014), which promotes the concept of Energy Savings Performance Contracts (ESPC) as a cost-effective measure for reducing energy and water consumption and efficiency in government owned buildings and installations. Act 57-2014 was later amended by Act No. 141 of July 11, 2018, also known as Execution Act of the Reorganization Plan of the Department of Economic Development and Commerce of 2018 (Act 141-2018) (DEDC), which among other things created the Energy Policy Program (EPP) as part of the DEDC.

Through Act 19-2012, the Government of Puerto Rico adopted ESPCs as an indispensable tool for promoting efficient energy use. Government Units, which include the Executive, Legislative and Judicial Branch, must consider as their first option, the use of ESPCs as a contractual mechanism for achieving energy and water efficiency and conservation and promoting the integration of renewable energy generation alternatives. However if a Government Unit from the Executive or Judicial Branch determines not to continue with this process because it is burdensome or not cost effective, it must certify it so to the EPP and obtain an exemption from compliance with the provisions of Article 4.1(e) of Act 57-2014, as amended, from the Puerto Rico Energy Bureau.

The EPP through its Energy Savings Performance Contracting (ESPC) Program, seeks proposals from Energy Services Companies (ESCOs) to be pre-qualified for as-needed Energy Savings Performance Contracting services, including preliminary auditing and assessment services for government facilities within the Government of Puerto Rico. In this role, the ESCOs would become ‘Qualified Providers’ and provide services to Government Units, under the authority granted to EPP by the amended 19-2012 Act.

Puerto Rico’s monthly energy consumption average exceeds 1,000GWh with an average cost above the 30 cents. Additional detailed information is available at the following link: sistema-electrico-de-puerto-rico/resource/8025f821-45c1-4c6a-b2f4-8d641cc03df1

ESCOs qualified through this RFQ are eligible enter into a list of qualified ESCO providers to be kept by the EPP and then be eligible to provide services through this Program to the Government Units that may also choose to participate in the Program. The primary intent of this selection process is as follows:

•     To increase the number of successful performance contracts state-wide, as a means to implement comprehensive energy-efficiency projects in buildings of all branches of the government of Puerto Rico.

•     To provide Program participants the opportunity to procure services of qualified firms in a timely and cost-effective way.

•     To ensure minimum qualifications of ESCOs to implement successful Energy Resiliency projects.

•    To ensure fair and reasonable pricing for EPC services.

•    To offer qualified firms the opportunity of equal access to work generated by the Program.

The Program provides a standardized process with clear direction and accountability for all participants in development, implementation, and measurement and  verification of Energy Savings Performance Contracting projects by defining roles and responsibilities; formalizing process steps; establishing maximum cost schedules; providing standard contract documents; and establishing measurement and verification guidelines.

Potential ESPC Program participants include state agencies, authorities or political subdivisions, of the Government of Puerto Rico including, but not limited to, municipalities, any state supported institutions, educational institutions, public corporations or an agency composed of political subdivisions (namely, Government Units). Energy Savings Performance Contracting enables these participants to accomplish ESPCs using the appropriate financing options available to obtain desired results. Interested Government Units will sign a Memorandum of Understanding with EPP to follow program guidelines and will be directed to use the pre-qualified list to select an ESCO for their performance contracting project, using a recommended secondary selection process.

ESCOs will be pre-qualified by EPP to provide as-needed Energy Savings Performance Contracting services to participating Government Units. All sizes of companies are encouraged to submit statements of qualification for consideration. Pre-qualified ESCOs will be effective for a four year term subject to annual update of their files in EPP. Failure to do so will automatically eliminate the ESCO from the ESPC Program.

ESCOs that are selected under this RFQ are not guaranteed to be selected for any particular project and are not guaranteed any payment. Additionally, prequalification is not a prerequisite to be selected for design-build services under the Program. EPP is prequalifying vendors to expedite contracting, as deployment and final contracting decisions will be at the discretion of Program participants.