Utility Energy Service Contract Laws and Regulations

The Energy Policy Act (EPAct) of 1992 authorizes and encourages Federal agencies to participate in utility energy efficiency programs. Legislation authorizing utility energy service contracts (UESCs) is outlined below, along with legal opinions and guidance outlining the use of UESCs by Federal agencies.

Laws and Regulations
Legal Opinions
Guidance

A detailed compilation of UESC enabling regulations and guidance is available in FEMP's UESC: Enabling Documents (PDF 3.1 MB). Download Adobe Reader. This document serves as the primary reference for Federal agencies and utility partners conducting UESC projects.

Laws and Regulations

This section outlines legislative and executive authorities that support contracting for utility services, along with regulations associated with procuring these services.

Energy Policy Act of 1992 (42 USC Section 8256): Incentives for Federal agencies, legislation addressing contracts, the Federal Energy Efficiency Fund, utility incentive programs, and the Financial Incentive Program for Facility Energy Managers.
10 USC Section 2913: Outlines energy savings contracts and related activities, shared energy savings contracts, participation in gas or electric utility programs, acceptance of financial incentives, and agreements with gas or electric utilities.
Federal Acquisition Regulations (FAR), Part 41: Covers the use of areawide contracts for the purchase of all types of utility services.
Executive Order 13423 (PDF 104 KB): Addresses energy reduction goals for Federal facilities.

Legal Opinions

Legislation and executive actions that enable agencies to enter in utility energy service contracts can be interpreted in many ways. Several legal opinions pertinent to these contracts are included in this section:

Authority for Extended Utility Agreements (PDF 17 KB): A memorandum regarding the General Services Administration's (GSA) authority to enter into energy management contracts that extend beyond 10 years - May 9, 2000, from Richard Butterworth, GSA.
Relationship of the Anti-Deficiency Act to Multi-Year Contracts under the Utility Incentive Program Authorized Under Section 152(f) of EPAct (PDF 151 KB): A memorandum regarding contracts for public utility services - December 17, 1999, from Mark Schwartz, U.S. Department of Energy (DOE).
Definition of Demand Side Management (DSM) Services (PDF 23 KB): A memorandum clarifying the definition of DSM services - December 17, 1998, from Larry Oliver, DOE.
Statutory Exception from Competition in DSM Utility Contracts (PDF 26 KB): A memorandum regarding section 152 of EPAct, which meets the criteria of one exception to the Competition in Contracting Act - July 7, 1994, from Anne Troy, DOE.
Department of Energy Utility Rebates Legal Opinion (PDF 111 KB): Legal opinion offered by DOE surrounding utility rebates used in UESC projects.

Guidance

The following guidance is intended to help Federal agencies evaluate and implement UESC and other utility partnership activities:

Emerging Technologies for Energy Savings Performance Contracting in the Federal Sector (PDF 422 KB): Report identifying energy-saving emerging technologies recommended for use in Federal facilities.
Emerging Technology Evaluation for Application in the Federal Sector (Excel 148 KB): Spreadsheet featuring lists of technologies and their applications, including potential energy savings and information resources.