Press Releases [old] – Federal Performance Contracting Coalition

June 25, 2018

For Immediate Release

Contact:
Kate Lynch
(703) 864-5283

FPCC COMMENDS SENATE ON PASSING ENERGY & WATER SPENDING BILL

The Federal Performance Contracting Coalition (FPCC), a group of 14 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 Senate passage of the energy and water appropriations bill as part of a minibus package, which also included funding for military construction and veterans affairs.

“The FPCC commends the Senate for passing the energy and water appropriations bill and thanks Senator Christopher Coons (D-DE) for his leadership and diligent efforts to include increased funding for the Federal Energy Management Program (FEMP), a program that with very minimal funding, supports all agencies of the federal government in their quest to reduce energy consumption and costs while improving aging infrastructure and addressing deferred maintenance. The most significant activity of FEMP is to support performance contracting throughout the government. This funding is vital for the federal government to utilize Energy Savings Performance Contract (ESPCs) and Utility Energy Savings Contract (UESC).

“We also thank Senator Brian Schatz (D-HI) and Senator Coons (D-DE) for their efforts to successfully include important committee direction in the military construction and veterans affairs funding bill to the Department of Veterans Affairs to utilize ESPCs and UESCs for any of its renovation projects.”

In an Energy Savings Performance Contract (ESPC) or Utility Energy Savings Contract (UESC), the private sector works with the government customer to develop a project, but then the private company implements that project, measures and verifies savings every year, and guarantees that the savings will accrue. The private sector is repaid out of these guaranteed utility bill savings allowing for no added expenditures by the federal government. Since inception, ESPCs have achieved over $20 billion in guaranteed energy savings across the federal government.

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June 19, 2018

For Immediate Release

Contact:
Kate Lynch
(703) 864-5283

FPCC SUPPORTS SENATE PASSAGE OF NDAA

The Federal Performance Contracting Coalition (FPCC), a group of 14 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 Senate passing the John S. McCain National Defense Authorization Act for Fiscal Year 2019.

“The FPCC commends the Senate for passing this important legislation and for including important energy resiliency measures that will help our military facilities stay competitive and efficient, and save American taxpayers money. Specifically, the NDAA includes $2.4 billion for Sustainment, Restoration, and Maintenance (SRM) funding and committee direction on leveraging Energy Savings Performance Contracts (ESPCs) and Utility Energy Service Contracts (UESCs) to modernize and upgrade military facilities.

“We especially thank Senators Lindsey Graham (R-SC) and Jeanne Shaheen (D-NH) for their leadership in including report language that supports and specifies the use of ESPCs and UESCs in meeting the Department of Defense’s energy resilience requirements and to address its infrastructure maintenance backlog. Leveraging private sector funding to support our country’s defense goals is exactly the type of public-private partnership that will help keep our military competitive.”

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For Immediate Release

Press Contact:
Kate Lynch
Kate_lynch@cascadeassociates.net
202.554.5828

FPCC Applauds Congress for Performance Contract Scoring Fix

Washington, DC- On October 5, 2017, the House of Representatives passed a provision that corrects how the Congressional Budget Office (CBO) scores Energy Savings Performance Contracts (ESPCs) and Utility Energy Savings Performance Contracts (USECs). This change will allow Congress to more widely utilize performance contracts in legislation that will help address energy use in federal buildings. Instead of scoring ESPCs and USECs on an upfront mandatory basis, a score will now reflect the contracts’ net present value. In short, CBO must now consider all the costs and savings over the life of a performance contract when scoring legislation that contains ESPCs or UESCs. This change will allow Congress to address federal buildings energy legislation and support federal agencies in leveraging the private sector for energy savings without relying on appropriated funds.

“The FPCC is pleased that after 15 years of the incorrect scoring of performance contracts in legislation, the House approved a change that will help score them more accurately. This change will allow Congress to more widely utilize performance contracts in legislation. This is a step in the right direction. ESPCs and USECs are an underutilized tool that can reduce government spending at federal facilities, create jobs and is budget neutral,” said Jennifer Schafer, Executive Director of the Federal Performance Contracting Coalition.

“A legislative price tag, no matter how incorrectly applied, is a non-starter in this current political and budgetary climate. The previous scoring of ESPCs has precluded movement of common sense energy efficiency initiatives and we hope the scoring fix changes that.”

Financed and implemented through the private sector, ESPCs reduce energy and operating costs, address maintenance backlogs, and repair or replace aged and failing equipment in federal buildings. The government pays back private partners, over time, with actual savings generated by infrastructure upgrades. The House provision was included as part of the 2018 Budget Resolution and matches that of a previously passed provision by the Senate.

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The FPCC is a coalition of energy service companies working with the federal government. Members include AECOM, Ameresco, CEG Solution, Constellation Energy, Energy Systems Group, Honeywell, Johnson Controls, Lockheed Martin, Noresco, Schneider Electric, Siemens, Southland Energy and Trane.

FOR IMMEDIATE RELEASE
January 30, 2017

FPCC Praises Sponsors of the Energy Savings Through Public-Private Partnerships Act of 2017

WASHINGTON, DC—Today, the Federal Performance Contracting Coalition (FPCC) released the following statement and summary information:

The Federal Performance Contracting Coalition supports the Public Private Partnership Act of 2017 introduced on January 30, 2017 by Senators Gardner, Coons, Portman and Shaheen and by Representatives Kinzinger and Welch. This bill has been introduced each of the last two Congresses as well and enjoys broad bipartisan support, being included in comprehensive energy legislation that was negotiated, but not passed, late last year.

Energy Savings Performance Contracting (ESPCs) and Utility Energy Contracts (UESCs), collectively known as “performance contracts”, allow Federal agencies to increase their efficiency and thereby reduce their energy costs using private sector funding and expertise. In both cases an accredited contractor (partner) designs and installs solutions and equipment which together reduce a facility’s energy consumption. The Federal agency pays the partner back, over time, with actual utility bills savings resulting from the project. In the case of an ESPC, the private partner guarantees these energy savings – an agency will pay no more for the contract and energy bills together than they would have paid for energy bills if they hadn’t done the project.

Performance contracts eliminate the need for the Federal agency to find appropriated funds to replace, operate, and maintain energy-using equipment. Over the past twenty years, 25 Federal agencies in all 50 states have awarded approximately 650 performance contracts worth $8 billion, resulting in almost $15 billion in savings. Approximately $11 billion went to repay project investments, accruing a net savings of nearly $4 billion to the Federal government. They also result in thousands of local and un-exportable jobs.

This bill, in short, clarifies the Energy Savings Performance Contracting statute. It specifically:

Requires a report to Congress in each of 2017 and 2018 on the status of each agencies’ energy-related performance contracts, the value of these contracts for the previous year, the goal for the coming year, and an explanation by agency about why goals were or were not met.
Requires agencies to implement projects discovered in EISA 2007section 432-required energy audits that provide a 10 year or less return on investment .
Clarifies that agencies cannot arbitrarily limit the inclusion of operations and maintenance savings in an ESPC.
Makes consistent the definition of a “federal building” within federal energy provisions of law
Clarifies in federal energy statute that plug loads are allowable energy conservation measures
Clarifies that the following are classified as energy savings:

The use, sale or transfer of energy incentives, rebates, or credits (including Renewable Energy Credits) from federal, state, local governments or utilities;
Any revenue generated from a reduction in energy use, such as more efficient waste recycling; and
Additional energy generated from more efficient equipment (not including federal dams).

The FPCC is a coalition of energy service companies working with the Federal government. Members include AECOM, Ameresco, CEG Solution, Constellation Energy, Energy Systems Group, Honeywell, Johnson Controls, Lockheed Martin, Noresco, Schneider Electric, Siemens, and Trane.

FOR IMMEDIATE RELEASE

October 6, 2016

Statement of the Federal Performance Contracting Coalition on the Obama Administration’s announcement to extend and expand the Federal performance contracting challenge

WASHINGTON, D.C.—Today, the Federal Performance Contracting Coalition released the following statement in regards to the Administration’s announcement to expand the Federal performance contracting challenge to include water efficiency:

The Federal Performance Contracting Coalition applauds the Administration’s decision to expand the highly successful Federal performance contracting challenge- a “Next Generation Performance Contracting Challenge” to include water efficiency. The new goal is to pursue $2 billion in additional energy performance contracts over the next 3 years, and to achieve 2 billion gallons of water savings. This new expansion will support thousands of jobs and is expected to reduce carbon emissions by the equivalent of about 300,000 cars.

Utilizing Performance Contracting vehicles such as Energy Savings Performance Contracting (ESPC) and Utility Energy Service Contracts (UESC) has been an effective and vital tool used by the Administration to save Americans billions of dollars in energy costs. Since 2008, federal agencies have awarded over $3.5 billion in energy savings performance contracts to improve energy efficiency and are on track to reach the $4 billion goal by the end of the year. Expanding the use of performance contracts is a goal that the FPCC works tirelessly towards. By continuing the use of this innovative financial tool, the country will enjoy increased investments in smart infrastructure, secure jobs in energy efficiency, and American taxpayers will save money.

This newest commitment made by the Administration is a vital step in following the strategy laid out in the President’s Executive Order made last year to cut greenhouse gas emissions by 40% over the next 10 years. This will be achieved primarily through energy efficiency and the use of renewable energy. The FPPC has worked closely and continuously with the Administration to make performance contracting “ business as usual ” for the Federal government and commends this most recent effort to do so. We believe this newest commitment will allow a seamless transition to the next Administration in terms of commitment to achieving federal energy efficiency through private sector financing.

The Federal Performance Contracting Coalition (FPCC) is a group of Energy Service Companies (ESCOs) advocating for increased federal use of Energy Savings Performance Contracts (ESPCs.) To that aim, its activities focus primarily on barrier removal and ensuring “more, faster, bigger and better” ESPC projects in the Federal ESPC marketplace. The FPCC is the primary organization representing ESPC industry and our members represent over 90% of Federal ESPCs.

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FOR IMMEDIATE RELEASE

June 25, 2015

FPCC Response to GAO Report 15-432: Energy Savings Performance Contracts: Additional Action needed to Improve Federal Oversight

The Federal Performance Contracting Coalition welcomes opportunities to strengthen

government management of the Federal ESPC program

WASHINGTON, DC—Today, the Federal Performance Contracting Coalition (FPCC) released the following statement and summary information in response to the June 2015 Government Accountability Office (GAO) report titled “Energy Savings Performance Contracts, Additional Actions Needed to Improve Government Oversight”:

GAO reviewed 20 projects of 530 projects awarded during 1995-2014, which represents a 3.7 % sampling. GAO stated that the findings are non-generalizable data. DOE in its response to GAO, reported that “the benefits to the federal government have been significant” and that “considering only the DOE IDIQ ESPC contract, investment in energy efficiency projects has exceeded $3.4 billion with cumulative savings of more than $8.5 billion.”