Request for Proposals – Buildings Program Labelling Pilots

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Natural Resources Canada (NRCan) is presently involved in an activity to develop a voluntary energy labelling system for commercial and institutional buildings across Canada. For more information please read our Web pages.

NRCan invites proposals from qualified provincial, territorial, regional and/or municipal governments (see Appendix D: Definitions) to pilot test voluntary building energy labelling systems in applicable building types (see Appendix A: Applicable Building Types) within their jurisdictions.

While the focus of the pilots is expected to be government-owned and operated buildings, governments may propose to work cooperatively with non-government organizations to include non-government-owned and operated buildings.

Note: An Evaluation Criteria grid and a recent set of Questions and Answers (as of October 26, 2007) are included at the end of this request for proposals (RFP). The grid serves as a checklist for proponents as well as a tool for NRCan to verify that all listed items are met, as well as to award a score to the proposals received.

Response information

Questions
Questions about this RFP should be directed by e-mail and cite Labelling Pilot RFP in the subject line.

Deadline
The deadline to submit a proposal is 4pm EST, Friday, November 16, 2007.

Format
Please provide proposals in

• 8 ½ x 11 paper copy format, OR
• electronic format (as Microsoft Word^TM, WordPerfect^TM or PDF files)

Address
Paper format (hard copy) must be sent via registered mail or courier (requiring signature) to:

Electronic format must be e-mailed.

1 Objectives

The broad objective is to test a voluntary building labelling methodology, tools and implementation within controlled market sectors (notably public sector buildings) to evaluate the potential for wider energy performance labelling of buildings across Canada. Each pilot must specifically address how they will implement both the mandatory objectives and at least one of the optional objectives noted below.

Mandatory objectives

• 1.1 Assess and document client steps required to apply for the "draft" label (see Appendix D: Definitions) and to record time spent on labelling activities in order to broadly determine the cost and attendant technical/human resources required both by label applicants and administrative bodies.
• 1.2 Identify and report energy-use data for building type(s) being investigated in the pilot.

Optional objectives

• 1.3 Test the accuracy of one or more energy use validation tools for both new and existing buildings.
• 1.4 Determine the value of building labelling when a commercial building is sold or renovated, for example, and report and assess stakeholder issues.
• 1.5 Test the label design, which may include the addition of additional items to the label template that are related to regional identification or regional objectives.

2 Proposal Information

• 2.1 A multi-year Contribution Agreement for funding support will be developed by NRCan with the lead proponent in a successful project. NRCan support may only cover work under successful pilot projects undertaken between the date of signing of Contribution Agreements with NRCan and March 31, 2009.
• 2.2 NRCan funding for a successful project shall not exceed 75 percent of the total estimated project costs, or $80,000, whichever is less. Preference will be given to proposals with significant proponent co-funding.
• 2.3 Pilots may start as soon as Contribution Agreements have been signed by all parties and may continue for as long as the participants deem suitable. However NRCan funding commitments will only apply to the period stipulated in NRCan's Contribution Agreements.
• 2.4 It is anticipated that between four and five pilot projects will be supported under this RFP. While it is anticipated that no more than one pilot will be awarded in any province or territory, if submissions warrant, NRCan reserves the right to award up to two pilots in any one province or territory.
• 2.5 NRCan will provide the data that will be used for “least efficient in class” (see Appendix B: Label) for the draft label. Proponents are invited to supply data they own and have validated to supplement NRCan data.
• 2.6 NRCan will undertake to model energy-use data supplied under the pilots through a commercially available energy management software (e.g. FASER, Metrix, Market Manager, EnergyCap, Energy Watchdog) to normalize for weather.
• 2.7 NRCan will produce all labels used in the pilots, using data provided by proponents.
• 2.8 NRCan will perform a file audit (see Appendix D: Definitions) on a percentage of the data submitted under the successful pilot.

3 Proposal Requirements

3.1 Participants

• 3.1.1 Proposals must be supported by a provincial, territorial or municipal government with either funding or in-kind support or both. The fair market value of any and all in-kind support must be identified in the proposal cost estimate.
• 3.1.2 Proposals must identify all partners and their contributions (financial or in-kind) to the project.
• 3.1.3 Eligible recipients include individuals, not-for-profit organizations, corporations, industry associations, research associations, academic institutions, provincial, territorial and regional governments and their departments or agencies.

3.2 Objectives and Processes

• 3.2.1 Proposals must identify the specific objectives of the pilot and show how they relate to NRCan's mandatory and optional stated overall objectives above.
• 3.2.2 Proposals must identify how their stated objectives will be met, providing a logistical outline of the administrative functions already in place or activities/tasks to be established, staff or contractors who will be allocated the work, etc.
• 3.2.3 Proposals must identify the total estimated costs of the project by activity/task.
• 3.2.4 Proposals must identify timelines for the project. NRCan will consider supporting work for successful pilot projects completed on or before March 31, 2009.
• 3.2.5 Proposals must identify how labelling will be promoted/marketed in the region or to the market segment identified and what marketing issues the proponent anticipates addressing in the pilot.
• 3.2.6 Proposals must identify what, if any, aspects of the label will change from the existing template.

3.3 Building types

• 3.3.1 Only building types outlined (with examples) in Appendix A: Applicable Building Types will be used in the pilot.
• 3.3.2 Proposals must identify building type(s) and estimated number(s) in each type that the pilot will label.
• 3.3.3 Both new and existing buildings must be labelled in the pilot. It is understood and anticipated that there will be more retrofit/existing building labels that new building labels in any pilot set proposed.
• 3.3.4 Preference will be given to projects that plan to provide a minimum of twenty (20) buildings of each building type assessed in the pilot. However, if a proposal provides a plan for a disparate number of building types and lower numbers of each type, NRCan is willing to consider it. Such proposals must provide a rationale that identifies the benefits of investigating their particular group of buildings.
  
  For example,
  • NRCan would understand if only a limited number of buildings were to be labelled at point of sale (to understand issues resulting from labeling at sale) because large commercial buildings do not sell very often and there is a limited time to capture data in the pilot.
  • Similarly, labelling a range of different buildings within a city may be useful to help define a city's processes and identify potential costs or staffing requirements.

3.4 Data and Reporting

• 3.4.1 Building data will be reported as required under clauses 3.7.3 and 3.7.5 of this proposal. In addition, proposals must identify how their pilot results that are not building data sets (e.g. for marketing results, or for identification of market barriers) will be tabulated and reported.
• 3.4.2 Proposals must obtain consent from the participants to share all pilot data with NRCan and all DSMWG Labelling Committee (see Appendix D: Definitions) representatives and to show building data in a publicly available web site or publication both as data related to a specific building and in aggregate form.
• 3.4.3 Labels created by NRCan for each building in the pilot will be public documents (See 3.7.6).

3.5 Tools

• 3.5.1 For new building (see Appendix D: Definitions) designs the NRCan Screening Tool must be used to estimate designed energy performance.
• 3.5.2 If a new building design is complex and validation data exists from a tool recognized by NRCan to provide more accurate assessments of the energy design (such as an EE4 file that has been third-party validated), data from such a model can be submitted as well as a screening tool file. The EE4 energy-use data would be used on the draft label that NRCan will produce.
• 3.5.3 For existing buildings (see Appendix D: Definitions) actual energy bills must be used to determine energy performance.
  • Bills must have been issued within a 24-month period prior to labelling.
  • The bills must provide twelve continuous months of energy billing.
  • No retrofits or re-commissioning can have taken place in the 12-month period for which energy bills are supplied.
  • The building must have been occupied in the months for which bills are supplied.
  • Energy bills must be supplied for all forms of energy used in the building.

3.6 Verified labels

• 3.6.1 Proposals must identify a mandatory process to follow up and reissue “verified” (see Appendix D: Definitions) labels to all buildings that participate in the pilot within two years of the initial labelling process. NRCan will provide the “verified” label. It is NRCan's intent to support such activity in future.
• 3.6.2 The “verified” label will only be provided when the building has been fully commissioned (documentary proof of commissioning will be required) and actual energy bills are available for 12 continuous months for which the building has been occupied.
• 3.6.3 Buildings “draft” labelled in a pilot may also be given the opportunity to receive a "verified" label during the pilot.

3.7 Certifications

• 3.7.1 Proposals must certify that common tools, processes and reporting mechanisms stipulated in this outline will be used.
• 3.7.2 Proposals must commit to providing participants with a draft label produced by NRCan. Some local modifications to the label template in Appendix B: Label will be acceptable provided they have first been approved by the DSMWG Labelling Committee.
• 3.7.3 Appendix C: Typical Data to be Collected identifies data that must, at a minimum, be reported to NRCan.
• 3.7.4 Proposals must commit to share the data sets and documentation for each building participating in the pilot with NRCan in a consistent manner, as a part of the NRCan reporting mechanism of the pilot.
• 3.7.5 Proposals must certify that data will be provided to NRCan in Excel^TM spreadsheet format. Paper documentation such as commissioning reports will be provided electronically as PDF files.
• 3.7.6 Proposals must commit to making it a requirement of participating in the pilot that the resulting “draft” building energy label will be displayed in a prominent place in the entrance foyer area of the building.
• 3.7.7 Proposals must commit to observe the definitions cited in Appendix D: Definitions of this document.

Appendix A: Applicable Building Types

1) Provincially, municipally or institutionally-owned or operated new and existing buildings without refrigeration (i.e. not arenas or retail food stores for example).

2) New and existing commercial buildings without refrigeration that conform to the National Building Code of Canada, Part 3, and listed below.

Terminology: Where possible the terminology used below matches that of the North American Industry Classification System (NAICS) for commercial and institutional buildings. Terminology used in the Model National Energy Code for Buildings (MNECB) is added for clarity.

RESIDENTIAL ACCOMMODATION (not in NAICS) e.g.

Dormitory/ Student Residence
MultiUnit Residential Building MURB (greater than 10,000 m²)
MultiUnit Residential Building MURB (less than 10,000 m²)

INFORMATION AND CULTURAL INDUSTRIES (ASSEMBLY under MNECB) e.g.

Auditorium/Cinema/Theatre/Studio sets with audience/Convention Centre
Community Centre without Arena
Library/Museum/ Exhibition Space/ Visitor Centre/Passenger Terminal

EDUCATION e.g.

College or CÉGEP Classroom or Office Building
University Classroom or Office Building
Educational Facility (year-round use)
Elementary School (closed summer)
Secondary School (closed summer)

HEALTH CARE (Hospitals are excluded for these pilots) e.g.

Long-term Care/Nursing Home
Rehabilitation Centre (live-in)
Includes DETENTION from MNECB: e.g. Police Station with Cells

OFFICE e.g.

Finance and Insurance
Real Estate Rental and Leasing Offices
Professional, Scientific and Technical Services
Public Administration Office Building
Emergency Services (e.g. Police Station with no Cells)
Commercial Office

RETAIL (non-food only for pilots) e.g.

Big Box or Warehouse Store (e.g. Leons, Costco)
Department Store
Strip Mall
Store

Appendix B: Label

Appendix C: Typical Data to be Collected

• Building name
• Building type: using a consistent set (see Appendix A: Applicable Building Types)
• City
• Province
• Area of conditioned space (see Appendix D: Definitions)
• Occupancy data (e.g. seasonal, percent occupied)
• Total Energy Used by equivalent kW units and percentage of total energy that represents (e.g. 400 kWh – 50 percent electricity, 200 kWh equivalents – 40 percent gas) for Electricity: Gas; Oil; Propane; Renewables. NRCan will provide the equations to render these figures in kWh equivalents
• Demand data for electricity data
• Where proponent buildings have an Energy Management Control Systems (EMCS) installed, indicate such and provide a sample list of relevant control points and frequency for automatically trend logs to be archived in an MS-office text file format
• Key building characteristics (proposed list below)
  • Primary Heating System (Type)
  • Efficiency of Primary Heating System
  • Primary Cooling System (Type)
  • Efficiency of Primary Cooling System
  • Window to wall ratio
  • Average Window RSI
  • Average Wall RSI
  • Average Roof RSI
  • Installed Exhaust Air Heat Recovery
  • Efficiency of HRV
  • Average Lighting Power Density
  • Installed Lighting Controls (Type)
  • Percentage of Lighting Controlled
  • Installed Renewable Energy
• Date of building permit/major renovation/commissioning/re-commissioning
• If a building energy audit has been performed by a qualified engineer in the last 3 years, a PDF file of the report document

Appendix D: Definitions

• Area: the area of a building shall be defined by the conditioned space of the building.
• Building: the pilot studies shall report on buildings that meet Part 3 of the National Building Code of Canada only.
• Building Energy Audit: a building energy audit is a process to visit a building by a qualified engineer to record and evaluate its envelope, energy-using equipment and processes, energy management practices, energy costs and energy-saving opportunities. The goal of a building energy audit is to identify and report short- and long-term energy improvement opportunities, and estimate costs and pay-back schedules prior to retrofit.
• Conditioned space: conditioned space is defined as any space that is heated to 15 degrees or more throughout the heating months in that region and intended for regular occupancy/use. Conditioned space excludes basements that are not heated to 15 degrees, are not intended for habitation/occupancy but may contain machinery, and unheated parking garages.
• Consumed energy: consumed energy is the total energy used to run installed and plug-load equipment within the building or external to the building but serving just the building. It includes
  1. energy purchased from external suppliers such as hydro, oil or gas suppliers
  2. energy from a central plant that is provided to or recycled through the building
• Draft Label: a draft label shows initial pilot results only.
• DSMWG Labelling Committee: This committee is a provincial-territorial working group supported by the Council of Energy Ministers of Canada.
• Existing Building: an existing building is completed and occupied.
• File Audit: a file audit is a process to perform a third-party evaluation of received data to verify that the data is of reasonable quality and accurate.
• Government: a government organization includes municipal, provincial/territorial and federal governments, and utilities that are provincial Crown Corporations.
• New Building: a new building is one that is in design or under construction or completed but is not occupied.
• Purchased Energy: purchased energy is the energy purchased from external suppliers such as hydro, oil or gas suppliers.
• Verified Label: a verified label shows results that have been updated from pilot results to include, at a minimum, refinements to baseline data or energy use per m² data as a result of refinements to data sets, verification of actual energy usage as a result of access to billing information or upgrades to the building.

Questions and Answers (as of October 26, 2007)

Additions and Deletions

Addition: The pilot projects are working under the guidance of the Demand Side Management Working Group Sub-committee on Building and Housing Energy Labelling. They have recommended the following items be added to Appendix C: Typical Data to be Collected.

• Under “Key building characteristics” add: Water heating systems; Water consumption (litres);
• Note number of buildings in set if data represents a multi-building set;
• Note whether process load anomalies exist in the building (e.g. building with an industrial laundry in a long-term care facility, presence of a call centre or heated pool etc.) and outline the anomaly in a few words; and
• Photograph(s) of the building.

Deletion: Clause 3.6.2 has been deleted.

Questions Received

1) The preference given to proposals with a minimum of 20 buildings per building type (clause 3.3.4) places focus on provinces or large municipalities, where does a small municipality fit in with its much smaller number of buildings?

Answer: The focus is on all governments, but it is anticipated that provincial agencies or their energy delivery agencies (BC Gas, Manitoba Hydro, Quebec Hydro are typical examples of these) will have the greatest variety and number of buildings which gives maximum value to NRCan. For the reasons outlined in the second example in this clause NRCan would see value in supporting at least one SMALL municipality submission that meets criteria.

2) Can a government submit only new buildings under the pilot?

Answer: No. The goal of these pilots is to look at new AND existing buildings. By labelling a portfolio of buildings NRCan hopes to better understand the energy use by building and by region, across the portfolio. A portfolio could be a set of similar buildings (e.g. schools) or a range of buildings (e.g. offices, schools and long-term care facilities).

3) Clause 3.6.1 indicates a mandatory process to follow up and reissue the label. Is NRCan requesting proponents to indicate that they will cooperate in an activity that NRCan will pay for?

Answer: No. NRCan recognizes that the pilot activities will result in a number of “draft” labels in buildings across the country. NRCan is looking for a commitment from participants that they will cooperate with NRCan to ensure that:

• new building labels are verified and replaced with labels that reflect billing energy use within two years, and that;
• any existing building labels will be updated to reflect more accurate baseline information that NRCan anticipates will result from the pilots.

Participants should anticipate they will bear costs for this work. Such costs would not be considered part of the present pilot. NRCan may contribute toward the costs, but that would be a separate contract and dependant on funding for the activity. NRCan will produce the verified labels for the activity.

4) If a building performs poorly, can it opt out of the clause 3.7.6 to display the label?

Answer: NRCan would prefer that not happen. The labelling pilots are not about labelling “best in class” buildings they are about labelling all of the buildings in a portfolio. This clause is related to leadership in the public sector regarding building labelling. If the building performs at a low level, this would inform the province or municipality of the need to prioritize building energy retrofits for the building.

5a. Can you identify the key areas that should be included in the proposal under mandatory items 1.1 and 1.2?

5b. What are the 45 points being attributed to in items 1.1 and 1.2?

Answer: NRCan is looking for proposals that show how labelling could be used to help governments reduce energy use in their own building stock, or in buildings they can influence. The proposal needs to identify activities and goals that are both practical and possible and bring value to the proponent and NRCan in their understanding of the issues surrounding labelling of commercial and institutional buildings in Canada.

Points will be attributed based on how well the following issues are explained and detailed in the proposal.

For 1.1
Identify: how the organization will promote the labelling process internally or externally to identify and select buildings for the pilot and identify tools and barriers to the process; application process (forms, guide, steps, process, questionnaire to track applicant time etc.); proponent's procedures to processes a request for labelling (by in-house staff or through a contractor); how proponent will track hours and cost for staff performing labelling tasks; how labels will be delivered and posted; what new infrastructure may be required and anything else the proponent deems pertinent to outlining the administrative issues.

For 1.2
Identify: how proponent staff or contractors will undertake data collection; how data will be tabulated and archived by proponent and how building data will be provided to NRCan (e.g. Excel Spreadsheets); any data concerns that should be addressed (e.g. schools with process loads) and anything else the proponent deems pertinent to outlining the data issues.

6. Will a bidders meeting be held?

Answer: No, but responses to questions will be sent to the company initiating the question, in the language in which they were asked, within 48 hours of their receipt at NRCan. All questions and answers will be posted online when translated.

A meeting will be undertaken with the successful proponents to discuss issues of conformity in administrative processes and data collection and submission prior to preparation of contracts.

7. Public buildings won't “promote” or “market” labelling, that is a private sector issue. What do you mean by this in clause 3.2.5?

This is about internal and external leadership. It includes issues such as: how does building labelling fit with your corporate plans; how will you encourage buy-in amongst your building supervision and maintenance staff; how will you deal with issues surrounding low performing buildings; how will you promote high performing buildings; would you be able to pilot test building labelling with a segment of private sector buildings, and, if so, what promotional barriers and opportunities do you anticipate encountering; etc.?

8) Regarding clause 3.6.1, if the pilot will only result in contribution agreements valid until March 2009, how can it be a requirement that the verified label be completed within two years? Many will be outside the timeframe of the contract.

You are correct. This clause now reads: Proposals must identify a mandatory process to follow up and reissue “verified” (see Appendix D: Definitions) labels to all buildings that participate in the pilot. It is NRCan's intent to support such activity in future.

NRCan Labelling Pilot Projects: October 2007

Evaluation Criteria

1) Each listed item MUST be reflected in (“MEET”) the proposal, except item 2.2.

2) This grid serves as a checklist for proponents as well as a tool for NRCan. NRCan will use this list to verify that all listed items are met, as well as to award a score to the proposals received.

3) “POINTS” indicates total number of possible points for this item.

4) “SCORE” indicates actual number of points awarded for this item during the evaluation process.

5) A proposal that fails to score any points for a point-rated item may not be considered for funding.

6) A proposal that has a final score of less than 90 points of the maximum 130 will not be considered for funding.