The Department of Energy (DOE) yesterday announced the award of 16 new contracts that could result in up to $80 billion in energy efficiency, renewable energy, and water conservation projects at federally-owned buildings and facilities.
The federal government is the largest single user of energy in the United States and these awards are meant to save energy, reduce federal energy costs, cut greenhouse gas emissions, bring more cutting-edge technologies to use, strengthen national security, and create a stronger economy.
The new Energy Savings Performance Contracts (ESPCs) contracts were awarded to the following Energy Service Companies (ESCOs):
- Ameresco, Inc. (Framingham, Mass.)
- Chevron Energy Solutions (NYSE: CVX) (Eagan, Minn.)
- Clark Realty Builders (Arlington, Va.)
- Consolidated Edison Solutions, Inc. (NYSE: ED)(White Plains, N.Y.)
- Constellation Energy Projects & Services Group, Inc. (NYSE: CEG) (Baltimore, Md.)
- FPL Energy Service, Inc. (NYSE: FPL) (North Palm Beach, Fla.)
- Honeywell International, Inc. (NYSE: HON) (Golden Valley, Minn.)
- Johnson Controls Government Systems, LLC (NYSE: JCI) (Milwaukee, Wis.)
- Lockheed Martin Services, Inc. (NYSE: LMT) (Cherry Hill, N.J.)
- McKinstry Essention, Inc. (Seattle, Wash.)
- NORESCO, LLC (Westborough, Mass.)
- Pepco Energy Services (NYSE: POM) (Arlington, Va.)
- Siemens Government Services, Inc. (NYSE: SI) (Reston, Va.)
- TAC Energy Solutions (Seattle, Wash.)
- The Benham Companies, LLC (Oklahoma City, Okla.)
- Trane U.S., Inc. (McEwen, Tenn.).
ESPCs enable agencies to undertake energy savings projects without paying up-front capital costs.
Under an ESPC, the contractor designs, constructs, and obtains the necessary financing for an energy savings project, and the agency makes payments over time to the contractor from the savings reduction in the utility bills which are paid by the agency's appropriated funds over time.
Moreover, the aggregate annual amount of payments to the contractor and payments for utilities cannot exceed the amount that the agency would have paid for utilities without an ESPC. After the contract ends, all continuing cost savings accrue to the agency.
The new contracts provide for a maximum individual contract value of $5 billion over the life of the contract, eliminate technology specific restrictions, and allow federal agencies to use these contracts in federal buildings, nationally and internationally. In addition, ESPCs now include a greater emphasis on renewable energy and water conservation projects, the DOE said.
For further information on the new ESPCs please see the feature box at the link below.