Energy Efficiency: a Matter for the Federal Government

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The Department of Energy (DOE) has identified several Alliance to Save Energy Associates to assist the United States government – the largest single user of energy in the country – in securing a more energy-efficient future. The DOE’s Federal Energy Management Program (FEMP) recently announced the award of sixteen Energy Savings Performance Contracts (ESPCs) designed to help federal agencies undertake energy savings projects at no upfront cost.

Among the sixteen Energy Service Companies (ESCOs) awarded contracts are Alliance Associates Constellation Energy, Honeywell International, Johnson Controls, Lockheed Martin, NORESCO, Siemens, T.A.C. (of Schneider Electric), and Ingersoll Rand / Trane. Chosen for their proven commitment to developing energy- and cost-effective products, technologies, and practices, these companies are expected to contribute to the federal government’s aggressive goal to reduce its energy use by 30 percent by 2015, as set out in Executive Order 13423 and Congress’s Energy Policy Act of 2005 and Energy Independence and Security Act (EISA) of 2007.

A longtime proponent of energy-conscious practices in government, the Alliance has been involved in these EISA initiatives from the start, having founded the Government Energy Leadership Action Team Task Force (GELAT) in 2007. GELAT has played a pivotal role not only in crafting certain provisions of EISA, but also in securing permanent authorization for the use of ESPCs to support its goals.

As contracting mechanisms that negotiate funding for energy savings projects in federally-owned buildings and facilities, the ESPCs represent a unique opportunity for agencies to reduce energy waste without having to face upfront capital costs or secure special Congressional appropriations. Rather, the contracts maintain that the ESCOs themselves obtain funding and design the energy savings projects to which they are assigned; the exchange occurs over the long term, with agencies reimbursing their contractors with appropriated funds spared by the savings in utilities bills generated by the project.

The Alliance to Save Energy sees the award of these innovative contracts as a pivotal step forward in advancing energy efficiency. Says Clayton Crownover, Policy Manager at the Alliance, ESPCs “enable the federal government to reduce its energy consumption, while continuing to save taxpayer dollars. These awards show the federal government’s continued commitment to meeting their energy efficiency goals and are a testament to the success and efficiency of the use of ESPCs.“