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US Legislators Want Continuation of ESPCs for Federal Buildings

November 22, 2013 By Linda Hardesty

American Flag Energy ManageA bipartisan coalition of 117 House Members and 22 Senators has signed a letter to President Obama, urging a 5-year extension of the President’s federal buildings energy efficiency initiative – a two-year initiative that began in 2011 to achieve $2 billion in energy savings in federal buildings.

The coalition of legislators is calling on the President to continue the use of performance contracting in federal facilities by launching a 5-year, $5 billion extension of the 2011 initiative.

The 2011 executive order employed the use of Energy Savings Performance Contracts (ESPCs) and Utility Energy Services Contracts (UESCs) to achieve energy savings in federal buildings. Under an ESPC or UESC, an energy services company or a utility negotiates a contract with a federal agency that specifies the amount of energy savings it will achieve through retrofits and other measures. The company or utility is then paid for its performance out of the savings it achieves rather than through appropriated funds.

Rep. Cory Gardner (R-CO), Rep. Peter Welch, (D-VT) and Sen. Chris Coons (D-DE) have introduced legislation (H.R.2689 and S.1308) to advance the use of ESPCs and UESCs in the federal government that mirrors the expansion proposed in the coalition’s letter to the President.

The federal government spends over $6 billion annually on energy use in federal facilities.

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