Energy Savings Performance Contracts (ESPCs) and Utility Energy Service Contracts (UESCs)
Abstract
Many in Congress have expressed a continuing interest in improving energy efficiency and increasing the use of renewable energy. To facilitate investment in energy efficiency and renewable energy at federal facilities, Congress established alternative financing methods that utilize private sector resources and capabilities. Two such alternative financing methods are energy savings performance contracts (ESPCs) and utility energy service contracts (UESCs). ESPCs and UESCs are contracts between a federal agency and another party - an energy service company or a utility, depending upon the contract type. In general, a federal agency agrees to pay an amount not to exceed the current annual utility costs for a fixed period of time to the company or utility, which finances and installs the energy-efficiency and renewable energy projects. The costs are repaid by the agency over the length of the contract. After the end of the contract, the agency benefits from any reduced energy costs as a result of the improvements. The Department of Energy's Federal Energy Management Program (FEMP) is the lead organization responsible for providing implementing rules and policies for ESPCs. FEMP also provides training, guidance, and technical assistance to aid federal agencies in achieving energy and water goals. Federal agencies are required to document progress toward energy saving goals through annual reporting to the President and Congress.
Document Details
- Document Type
- Technical Report
- Publication Date
- Nov 23, 2018
- Accession Number
- AD1170099
Entities
People
- Corrie E. Clark
Organizations
- Library of Congress