U.S. Department of Energy - Energy Efficiency and Renewable Energy

Federal Energy Management Program

Super ESPCs Legislation and Regulations

Congress has authorized and encourages federal agencies to use innovative contracting mechanisms to finance and implement energy efficiency improvements. These improvements help reduce the government's energy costs and meet federal energy goals. The use of energy savings performance contracts (ESPCs) was authorized in the 1986 amendments to the National Energy Conservation Policy Act of 1978 (NECPA), which was further amended by the Energy Policy Act of 1992 (EPACT).

All Agencies—ESPC Legislation and Regulations

ESPC Authority

• National Energy Conservation Policy Act (42 USC 8287)

ESPC Regulation (10 CFR 436 Subpart B)

• Final Rule on ESPC (Federal Register 4/10/95)
• Final Rule Highlights

The threshold for Congressional Notification for ESPC projects is:

• for DOD organizations: $7 million
• for all other agencies: $10 million

The Energy Policy Act of 2005 extended ESPC authority until September 30, 2016.

For more information on ESPC regulations and legislations, see ESPC Basics.

Department of Defense—Legislation and Guidance

• Energy Savings at Military Installations (10 USC 2865)
• Water Conservation at Military Installations (10 USC 2866)
• Defense Energy Program Policy Memorandum (DEPPM 4-2)