Frequently Asked Questions
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Retrofit FAQ (Acrobat reader software is freely available from Adobe Software)
The following questions are grouped under several headings:
- Targetted Retrofits
- Benefits
- Financing Risk
- Getting Started
- Local Government Program
- What kinds of retrofits does the Program encourage?
Generally portfolio-wide building audits and installation of new equipment such as efficient lighting systems, upgraded heating, ventilating and air conditioning systems, efficient water fixtures and innovative waste management systems. Of course the scope of any project is dependent on its business case.
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- What are the benefits of a retrofit?
- Improved facility and equipment performance paid for by the resulting utility savings.
- Reduced maintenance costs.
- Enhanced comfort of building occupants through improvements to lighting, air quality and temperature.
- Local economic activity through the use of local subcontractors.
- An important contribution to the province's goals of resource conservation and greenhouse gas reduction.
- How does the Program benefit participating organizations?
The Program creates a climate within which decision-makers have the support and reassurance they need to proceed with these comprehensive projects and realize the savings potential within their building portfolios. In particular:
- The Program provides a first layer of protection to participating organizations in three key ways:
- The Program provides model procurement documents for use by Program participants through the various stages of procuring retrofit services from the private sector (i.e., RFPs, contracts). Use of the documents will simplify the process for participants and ensure protection of their interests and consistency with the Program Eligibility Criteria.
- The Program has pre-qualified several firms that provide the services necessary to develop and implement retrofit projects, including:
- owner's representative services;
- a comprehensive range of efficiency management services (also referred to as bundled services); and
- selected efficiency management services (also referred to as unbundled services)
- Qualification is based on criteria that include: expertise, track record, etc. Contact information for qualified firms is provided on the Program's Qualified Bidders List.
- Net savings resulting from building retrofits must either be guaranteed by a qualified firm or insured by a licensed insurance company.
- The Program will provide guidance with the procurement process through:
- A How -To Guide;
- Case Studies of BC retrofits already undertaken;
- instructional workshops;
- model procurement documents (i.e., RFPs, contracts);
- directories of third party training resources, opportunities for funding assistance and a directory of equipment and service suppliers; and
- broad, non-technical planning support.
- The Program provides a procurement process that can be characterized as the path of least resistance and greatest assurance. Organizations may choose other paths provided they satisfy the Program Eligibility Criteria. However, non-Program paths and the need to demonstrate equivalence may require more resources and time.
- The Program has made arrangements with the Royal Bank of Canada to establish a credit facility, offering participating organizations more favourable financing than they might be able to obtain on their own.
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- How can retrofits be financed?
There are three options under the Program:
- financing from internal sources (e.g., operating funds, revenue sources in the case of post secondary institutions);
- financing offered through a 50 million dollar credit facility arranged with the Royal Bank of Canada from which organizations will be able to borrow at terms more favorable than they could get by individually approaching private sector lenders; or
- financing provided by the firm performing your retrofit services.
- How are any borrowings repaid?
Borrowings are repaid for by the operating savings the retrofits generate.
- How can the savings be guaranteed or insured?
There are two options available to organizations for ensuring that the savings are indeed available to pay back the retrofits:
- Guarantee option - where forecast savings are guaranteed by the Efficiency Management Firm (EMF) hired to undertake the retrofit; or
- Insurance option - where forecast savings are guaranteed by a licensed insurance company.
Under the Guarantee option, if savings are less than projected, then the EMF must compensate the organization for the shortfall. Under the insurance option, the insurance company must cover the shortfall, subject to a deductible.
- Has the Program established a maximum payback period for retrofit projects?
The length of the payback period is up to the organization as long as it is within the period defined by the project's business case. However, the payback period may be limited by the specific financing and risk management options used for the project.
- Is any provincial or federal funding available for participation in the Program?
There are several federal and utility programs that may augment or provide additional funding opportunities for specific components or types of retrofit projects.
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- How does one get started?
The first step is to find out more. Review other parts of this website or contact Program staff. Contact information for the Retrofit Program is:
Phone: (250) 952-8800
E-mail: retrofitprogram@greenbuildingsbc.com
- What steps are involved in a typical retrofit project?
- Visit the Program's website or contact Program staff for more information.
- Identify opportunities for efficiency measures in all or selected buildings that may pay for themselves.
- Establish a team, of key staff who will oversee the project. The team may include staff representing facilities management, procurement, legal services, etc., and/or others who would be impacted by the project or involved in its decision process.
- Select the financing and risk transfer options to use. (These decisions may be deferred to a later stage in the process.)
- Prepare a project description that is essentially a preliminary business case for your project.
- Obtain approval of your organization's management and governing board to proceed, and if necessary, the approval of the minister responsible.
- Tailor the Program's model RFPs to procure the firm(s) that will deliver retrofit services for your project.
- Tailor the Program's model procurement contracts with the finalist bidders.
- Oversee the delivery of the contracts that involve a comprehensive feasibility study of your facilities, design of efficiency measures, installation and commissioning of those measures.
- Monitor the performance of the efficiency measures that have been implemented in your facilities and reconcile and report on their performance.
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What approvals are required?
The only approvals required under the Program are those already defined by existing legislation, generally for the authority to enter into a long-term financial obligation with an external party.
Local Government Program
- What is the Local Government Program?
The Local Government Program is the most recent addition to Green Buildings BC. It provides tools and resources, at no charge, to help BC’s local governments procure comprehensive portfolio-wide retrofits of their facilities to significantly improve their energy and water efficiency, and reduce their greenhouse gas emissions. The Local Government Program is delivered by the Community Energy Association on behalf of the Province of BC.
Resources and support for local governments include:
- How-to guide
- Procurement documents
- Case studies
- Workshops and council/staff presentations
- Assistance with opportunity assessments
- In-person support
Contact information for the Local Government Program:
Michael Wilson, P.Eng.
Community Energy Association
604-886-9864
mwilson@communityenergy.bc.ca
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