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

Transformational Energy Action Management Initiative

Energy Savings Performance Contracts Streamlining

The Energy Savings Performance Contract (ESPC) Streamlining Working Group is addressing the TEAM Initiative goal for the Department of Energy (DOE) to lead the nation in promoting and utilizing the best available energy management technologies and practices. To facilitate the rapid execution of energy performance projects, the department will streamline the review and approval process for ESPCs and other facility enhancement proposals.

An ESPC is a contract under which a contractor designs, constructs, and arranges financing for the energy savings project(s). The contracting energy services company (ESCO) guarantees that the improvements will generate savings sufficient to pay for the project over the term of the contract. After the contract ends, all additional cost savings accrue to the agency. ESPCs are an important aspect of the TEAM Initiative in that they allow agencies to achieve the goals of Executive Order 13423.

Efforts Underway

On December 18, 2008, DOE announced that it awarded 16 new Indefinite Delivery Indefinite Quality ESPCs. The ESPCs are estimated to result in approximately $80 billion in energy efficiency, water conservation, and renewable energy projects at federally owned facilities.

The newly awarded contracts provide for a maximum individual contract value of $5 billion over the life of the contract, eliminate technology specific restrictions, and allow federal agencies to use these contracts in federal facilities both nationally and internationally. Moreover, the ESPCs include a greater emphasis on water conservation and renewable energy projects.

See the DOE Press Release.

Related Links

The following links provide more information:

• ESPC Center for Excellence - The Center of Excellence provides assistance to DOE sites and facilities using alternative financing to fund TEAM energy efficiency and renewable energy projects.
• Super Energy Savings Performance Contracts (Super ESPCs)
• TEAM Requirements Worksheet for ESPC Projects (PDF 53 KB) Download Adobe Reader.

Members

This intra-agency working group is chaired by Skye Schell of EERE's Federal Energy Management Program (FEMP). For more information please contact Skye Schell at Schuyler.Schell@hq.doe.gov or (202) 586-9015.