Green Buildings BC

Eligibility Criteria

Alternative Procurement of Building Retrofits

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Not applicable to Local Governments

The Ministry of Finance authorizes provincially funded institutions to undertake retrofit projects using the Retrofit Program provided they satisfy the following criteria:

  1. Organizational/Project Eligibility
    1. Organizational eligibility is limited to BC school districts, post-secondary and health care institutions.
    2. Project eligibility is limited to facility improvements which:
      1. are consistent with the environmental objectives of the program (i.e., energy and water efficiency and reduced waste generation);
      2. produce net savings1; and
      3. are paid for using guaranteed or insured net savings2.

        Eligible projects may be integrated with other pre-approved capital projects.

  2. Project Economics
    1. The project's net-savings must:
      1. fully cover the project's capital costs including financing charges without any increased funding or guarantees from the province;
      2. be fully guaranteed or insured by a third (non-government) party; and
      3. be documented in a business case supporting B.1.a) and B.1.b). using both discounted payback and net present value analysis.
  3. Project Financing
    1. Project financing must not pose any financial risk to the province (i.e., debt recourse must be limited to the institution or the project)3.
    2. Institutions that borrow to finance their project must use the credit facility arranged for the Retrofit Program. Eligible institutions may also consult with the Debt Management Branch of the Ministry of Finance about their financing requirements
    3. The term of any borrowing shall not exceed the project's discounted payback period as defined by its business case.
    4. Government guarantees will not be available for purposes of financing these projects.
    5. As required by existing provincial legislation or policy, institutions may require the written pre-approval of the Minister responsible and the Minister of Finance.
    6. Project financing must be structured on a "First Out" basis; specifically that, 100% of the project's net savings are applied to the project's financing until the project is paid out.
  4. Procurement
    1. Institutions must make use of the mandatory components of the Retrofit Program's model procurement documents without adjustment, including: RFPs and contracts, unless otherwise approved by the Ministry responsible.
    2. Institutions must make use of a contractor(s) from the Retrofit Program's Qualified Bidders' List (QBL).
    3. A minimum of three contractors from the QBL must be invited to compete in the performance contracting process for any project.
  5. Reporting
    1. Institutions agree to provide the Retrofit Program with information about their projects on request.

1 Net savings are defined as savings from reduced payments to utility companies and energy suppliers and the savings from quantifiable material savings net of any increased utility or other operating costs associated with the retrofit.

2 A central feature of the Program will be the use of guaranteed or insured savings. This approach allows building owners/operators to invest in customized improvements within their facilities while paying for the capital cost of these improvements from the net savings they generate. Third party insurance or guarantees of the net savings ensure that building owners/operators will not have to make up any shortfall between projected and actual net savings.

3 Refer to section 4.4.1.2.1 of the Capital Asset Management Framework Guidelines, available at the following website: www.fin.gov.bc.ca/tbs/camf.htm