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UESCs Legislation and Related Resources

Legislation from Congress and orders from the President require and enable Federal agencies to implement significant energy efficiency, water conservation, and renewable energy projects. In addition, legal opinions and agency guidance regarding these requirements help agencies make informed decisions concerning financing energy projects. Some of the following documents are available as Adobe Acrobat PDFs. Download Adobe Reader

FEMP compiled legislative and other material related to working with utilities in a document titled Utility Energy Services Contracts: Enabling Documents (PDF 1.4 MB). An overview (PDF 90 KB) of this document explains how the information applies to Federal projects. In a letter (PDF 108 KB) to Federal agencies, FEMP's Utility Program manager offers a brief introduction to the documents.

Legislative and Executive Actions

This section outlines the legislative and executive authorities that support contracting for utility services, along with regulations associated with procuring these services. Procuring both utility commodities (electric, gas, and water) and utility services (installing energy efficiency, water conservation and renewable energy measures) has a significant history of legislative backing.

• Energy Policy Act of 1992 (42 USC Section 8256), Incentives for Agencies—Legislation addressing contracts, the Federal Energy Efficiency Fund, utility incentive programs, and the Financial Incentive Program for Facility Energy Managers.
• Energy Savings at Military Installations (10 USC Section 2865)—Legislation regarding energy-saving goals and plans at military facilities.
• Water Conservation at Military Installations (10 USC Section 2866)—Legislation regarding water-saving goals and plans at military facilities.
• Comparison of Utility Program Statutes for Civilian and Defense Agencies—A side-by-side display of statutes comparing utility incentive programs for civilian agencies and energy-saving activities for the Department of Defense.
• Federal Acquisition Regulations (FAR), Part 41—FAR, Part 41 covers the use of areawide contracts for the purchase of all types of utility services.
• Executive Order 13423: Strengthening Federal Environmental, Energy, and Transportation Management (PDF 104 KB)—An Executive Order addressing energy reduction goals for Federal facilities.

Legal Opinions

The legislation and executive actions that enable agencies to enter in utility energy service contracts can be interpreted in many ways. Several legal opinions considered most 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 authority to enter into energy management contracts that extend beyond ten 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, 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.

Agency Guidance

Because of an array of legislation and associated regulations about utility energy service contracts, questions developed concerning the interpretation of the intent of the legislation and the implementation of various regulations. Federal agencies have provided guidance to clarify these areas. The guidance is included in this section.

• DEPPM 94-1, Subject: Participation in Public Utility Sponsored Energy Conservation and Demand Side Management (EC/DSM) Programs (PDF 188 KB)—A Defense Energy Program Policy Memorandum establishing guidelines for participation in EC/DSM programs offered by or to be negotiated with public utilities.
• Alternative Financing Guidance Memoranda—Memoranda addressing specific issues within Federal procurement regulations to assist the financing of energy-efficient measures.
• Emerging Technologies for Energy Savings Performance Contracting in the Federal Sector (PDF 422 KB)
  This report identifies energy-saving emerging technologies recommended for use in federal facilities. It emphasizes technologies suitable for retrofit applications financed through ESPCs and Utility Energy Service Contracts as well as other mechanisms.
• Emerging Technology Evaluation for Application in the Federal Sector (Excel 148 KB)
  This spreadsheet features lists of technologies and their applications, including potential energy savings and information resources.
• GSA Scoring of Utility-Financed Projects—Guidance regarding when scoring is required for General Service Administration facility energy projects financed through utility contracts.