For comprehensive energy savings projects at state facilities, DGS contracts with energy service companies (ESCOs) using energy savings performance contracts (ESPCs). ESCOs conduct all of the steps below to implement energy savings projects.

Energy Efficiency Retrofit Project Workflow

  1. The Preliminary Assessment is the first step in the energy retrofit process. It is a simple audit and it involves minimal interviews with site operating personnel, a brief review of facility utility bills, other operations data, and the walk-through of the facility.  This initial audit is geared toward identifying areas of energy waste or efficiency. The data is compiled in a report that details low-cost and no-cost energy efficiency measures and potential improvements for further studies. The level of detail in preliminary assessment is adequate to prioritize energy efficiency projects and to provide a basis for a more detailed audit.

  2. An Investment Grade Audit is a deeper more comprehensive energy audit with a distinct focus on financial analysis and return on invest (ROI).

    An IGA should cover at least the following items:

    • Operating hours analysis
    • Inventory of all energy consuming equipment
    • Energy rates and cost figures for all utilities
    • Analysis of at least one year of historical utility billing data
    • Identification of the major energy consuming equipment and processes in the building
    • Analysis of opportunities for energy efficiency measures and their potential savings and payback periods
    • Identification of suitable retrofits and technology for these measures
  3. OS will advise the clients on the availability of funding opportunities and facilitate financing. Many energy efficiency retrofit projects are financed through DGS’ GS $Mart financing program. 

  4. Once funding is secured, the project is implemented through the Energy Savings Performance Contract (ESPC). 

  5. Once construction is complete, the project goes through a measurement process to verify that the estimated energy savings were achieved.


Valerie Keisler, Program Manager

Department of General Services
Office of Sustainability

707 Third St
West Sacramento, CA 95605

Contact Information: 

☎ (916) 376-1600