Super ESPC - Just the Facts

TRAINING FEMP also offers free introductor y and advanced ESPC workshops. BACKGROUND " Original ESPC legislation was passed by Congress in 1992. Implementation began in 1995 following promulgation of DOE 9s program regulations.<br><br> " In 1998, the procurement process was streamlined to make federal ESPC easier and more practical, and for the first time many agencies began to embrace ESPCs to meet their energy use reduction goals. " Congress demonstrated its interest in facilitating the use of ESPCs by Federal agencies in EISA 2007, Title V, Energy Savings in Government and Public Institutions, Subtitle B, Energy Savings Performance Contracting. Section 514 provisions permanently authorize ESPCs.<br><br> $2.3 BILLION INVESTMENT AND $7.1 BILLION ENERGY COST SAVINGS " $2.3 billion in private-sector funds has been invested in energy efficiency projects at Federal facilities. 1 " These projects save 18.5 trillion Btu annually 2 , equivalent to the energy consumed by 201,600 households 3 or a city of about a 518,000. 4 " These projects will save the government $7.1 billion in energy costs.<br><br> ($5.7 billion goes to finance project investment.) 5 " Net savings to the government is $1.4 billion. FEDERAL ESPC PROJECTS IN 47 STATES AND D.C. " Federal ESPC projects have been implemented by 19 different Federal agencies and departments in 47 states.<br><br> " The Department of Defense has done the lion 9s share (60% of the projects and 70% of the investment dollars). " More than 460 federal ESPC projects, altogether worth $2.3 billion, have been awarded through FY 2007. June 2008 E Printed on recycled paper with soy-based inks. ESPCs MAKE ENERGY AND COST SAVINGS PA Y FOR IMPROVEMENTS An ESPC is a contracting vehicle that allows agencies to accomplish energy projects for their facilities without up- front capital costs and without special Congressional appropriations to pay for the improvements.<br><br> An ESPC project is a partnership between the customer and an energy ser vices company (ESCO). The ESCO conducts a comprehensive energy audit and identifies improvements that will save energy at the facility . In consultation with the agency customer , the ESCO designs and constructs a project that meets the agency 9 s needs and arranges financing to pay for it.<br><br> The 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 . Contract terms up to 25 years are allowed.<br><br> The statistics on federal ESPC use, investment, and savings in this fact sheet are from the information reported to FEMP by all federal agencies for its Annual Report to Congress on Federal Government Energy Management. For the most current published Annual Report, visit FEMP 9s web site at www.eere.energy.gov/femp/about/annual_report.html Footnotes 1 Based on federal agencies 9 annual data submissions to FEMP from FY 1998 onward. 2 Determined by applying the average of 8000 Btu saved annually per dollar invested to the $2.3 billion ESPC investment, and assuming this represents 95% of actual savings.<br><br> 3 The conversion to households is derived from EIA Annual Energy Outlook Review 2006, Table 2.4. 4 Based on U.S. Census data of 2.57 persons per household.<br><br> 5 Savings total is based on guaranteed savings (2.467 times investment per FY 2000-2007 data); plus additional savings not guaranteed (ESCOs generally guarantee a conservative 95% of estimated savings); and 3 years of savings beyond the contract term. U.S. Department of Energy Energy Efficiency and Renewable Energy Bringing you a prosperous future where energy is clean, abundant, reliable, and affordable For more information contact: EERE Information Center 1-877-EERE-INF (1-877-337-3463) www.eere.energy.gov<br><br>

less