Who uses Energy Savings Performance Contracting? (ESPC)
My most recent post talked about the basics of Energy Savings Performance Contracting, also known as ESPC. I thought I could provide a few examples at both the state and federal level for your knowledge.
The US Federal Government uses ESPC in several programs. One is the Federal Energy Management Program (FEMP) and another is the US Department of Housing and Urban Development (HUD) . Here is a brief description of each program
The Federal Energy Management Program (FEMP) facilitates the Federal Government's implementation of sound, cost-effective energy management and investment practices to enhance the nation's energy security and environmental stewardship. This is delivered through project transaction services, applied technology services, and decision support services.
The Federal Government, as the nation's largest energy consumer, has a tremendous opportunity and clear responsibility to lead by example. FEMP is central to this responsibility, guiding agencies to use funding more effectively in meeting Federal and agency-specific energy management objectives.
This section outlines FEMP's central role and responsibilities in Federal energy management. This role spans three primary focal areas:
A fact sheet overview of FEMP is currently available.
Energy Performance Contracting (EPC) is an innovative financing technique that uses cost savings from reduced energy consumption to repay the cost of installing energy conservation measures. Normally offered by Energy Service Companies (ESCOs), this innovative financing technique allows building users to achieve energy savings without up front capital expenses. The costs of the energy improvements are borne by the performance contractor and paid back out of the energy savings. Other advantages include the ability to use a single contractor to do necessary energy audits and retrofit and to guarantee the energy savings from a selected series of conservation measures.
Please note: There are several PowerPoint presentations on this page. Some of these files are large and may take several minutes to download and view. If you do not have PowerPoint on your computer, you will need to download the free PowerPoint Viewer.
EPC Review Process
HUD Approval Process
Development of an EPC (ESCo)
Development of an EPC (PHA managed)
ESPC programs exist in many states throughout our country. The table below contains links to states who have programs.
PC Activities by State
We’ll talk more about ESPC in future posts and also provide a better description about the firms that provide this needed and valuable service.