Green Bank of Kentucky Program
Agencies must obtain an energy audit or an engineering analysis for the Green Bank’s Hybrid Revolving Loan Program. Agencies interested in applying for funds through the Green Bank’s ESPC Revolving Loan Program, must obtain an investment-grade energy audit. During an energy audit, qualified engineers, architects, or other professionals trained in energy efficiency inspect the facilities. The efficiency of the facilities (including contiguous land, appurtenances, improvements, etc.) is assessed and recommendations for improving energy efficiency are made.
When guaranteed energy savings performance contracts (ESPC) are negotiated, typically qualified professionals will also perform an engineering analysis, or investment-grade energy audit, which is a detailed cost-benefit analysis of energy efficiency investments.
As part of this process, the engineering team carries out a life-cycle energy cost analysis for the agency's proposed energy savings plan. This analysis includes the projection of energy and cost savings and itemized project cost for the entire term of the contract.
Savings are determined using one of the measurement and verification methodologies listed in the 1997 International Performance Measurement and Verification Protocol (IPMVP). Information from the engineering analysis becomes an integral part of the performance contract.