The Federal Performance Contracting Coalition (FPCC), a group of Energy Service Companies (ESCOs) advocating for increased federal use of Energy Savings Performance Contracts (ESPCs) by the federal government, released the following statement in response to the House passage of the FY23 Energy and Water appropriations bill as part of a minibus funding package (H.R. 8294).
“The FPCC commends the House of Representatives for passing an FY23 Energy and Water appropriations bill and thanks members for including increased funding for the Department of Energy’s (DOE) Federal Energy Management Program (FEMP). With minimal funding, FEMP supports all federal government agencies in their quest to become more efficient, resilient, and secure and reduce greenhouse gas emissions. This funding is vital in spurring the federal government to utilize ESPCs and UESCs as FEMP provides oversight for the life of these contracts, as well as training, guidance, and technical assistance to help agencies throughout this process. The proposed increased funding for FEMP is critical, as it will support their Congressionally-directed mission to effectively implement several clean energy investments made in the Bipartisan Infrastructure Law and provisions of the Energy Act of 2020.”
“We also thank members of the House for providing increased funding for the Federal Energy Efficiency Fund under FEMP, also known as the Assisting Federal Facilities with Energy Conservation Technologies (AFFECT) grant program. AFFECT grant funding provides agencies with small grants to leverage through performance contracting projects that address resiliency, backlog maintenance, critical upgrades, cybersecurity, and other infrastructure needs at federal sites such as military bases, VA hospitals, and GSA buildings.”
“As the single largest U.S. energy consumer with more than 360,000 buildings and structures comprising 3 billion square feet, the federal government has a significant opportunity and responsibility to lead by example through demonstrating and deploying energy and water conservation best practices and technology solutions. FEMP is at the forefront of responding to climate priorities, statutory requirements, and Federal agency needs while helping to maintain resilient, efficient, and secure installations for mission assurance.”
ESPCs and Utility Energy Service Contracts (UESCs) are alternative financing methods created by Congress that utilize private sector resources and capabilities to complete federal energy projects. Under an ESPC, a private company finances and implements an energy savings project for a federal agency, measures and verifies that the installed measures are working as promised, and guarantees that energy savings will accrue. The private sector is then repaid over time through the savings on the customer’s utility bill. As such, these contracts allow federal agencies to address critical maintenance backlogs and infrastructure needs with no added expenditures by the Federal government.