DOE Awards 16 Energy Savings Performance Contracts
January 9, 2009
The U.S. Department of Energy (DOE) has announced that 16 new Energy Savings Performance Contracts (ESPCs) will be awarded that could result in $80 billion in energy efficiency, renewable energy, and water conservation projects at federally-owned buildings and facilities. The new contracts will be available to all U.S. federal agencies for use in federal buildings located in the United States and overseas. Each contract allows for up to $5 billion in energy- and water-savings projects, without restriction on the technologies used to achieve savings.
ESPCs are contracts under which a contractor designs, constructs, and obtains necessary financing for an energy savings project, and guarantees the improvements will generate savings. The federal agency makes payments over time to the contractor from the savings in their utility bills. Once the contract ends, all continuing cost savings accrue to the federal agency.
The federal government is the largest single user of energy in the United States. As a result, DOE launched the Transformational Action Energy Management (TEAM) Initiative in 2007—a partnership between the Federal Energy Management Program and other federal programs, including ITP, to help all federal facilities meet the energy savings goals outlined in Executive Order 13423. These goals include a 30% reduction in energy use (from 2003 levels) and a 16% reduction in water use (from 2007 levels) by 2015.
ITP offers energy savings assessment methodologies, software tools, and resources to help federal industrial facilities meet these goals. Learn more about how federal industrial facilities can utilize ITP’s free tools and resources. Read the DOE press release.