DOE Awards Energy Savings Contracts Worth $80 Billion

December 22, 2008

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The Department of Energy (DOE) awarded new Indefinite Delivery Indefinite Quantity (IDIQ) Energy Savings Performance Contracts (ESPCs) to 16 companies.

Under an ESPC, the contractor designs, constructs, and obtains the necessary financing for an energy savings project that guarantees savings in utility bills. The agency then uses those saving to make payments over time to the contractor.

The aggregate annual amount of payments to the contractor and for utilities cannot exceed the amount that the agency would have paid for utilities without an ESPC, and after the contract ends, all continuing cost savings accrue to the DOE.

The following energy service companies were awarded such contracts:

Ameresco, Inc. (Framingham, MA)
Chevron Energy Solutions (Eagan, MN)
Clark Realty Builders (Arlington, VA)
Consolidated Edison Solutions, Inc. (White Plains, NY)
Constellation Energy Projects & Services Group, Inc. (Baltimore, MD)
FPL Energy Service, Inc. (North Palm Beach, FL)
Honeywell International, Inc. (Golden Valley, MN)
Johnson Controls Government Systems, LLC (Milwaukee, WI)
Lockheed Martin Services, Inc. (Cherry Hill, NJ)
McKinstry Essention, Inc. (Seattle, WA)
NORESCO, LLC (Westborough, MA)
Pepco Energy Services (Arlington, VA)
Siemens Government Services, Inc. (Reston, VA)
TAC Energy Solutions (Seattle, WA)
The Benham Companies, LLC (Oklahoma City, OK)
Trane U.S., Inc. (McEwen, TN)

The new contracts have a maximum individual 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 total, they could total $80 billion in energy efficiency, renewable energy, and water conservation projects at federally-owned buildings and facilities.

Over the past few years, the DEO has been working to meet goals set by President Bush’s Executive Order 13423 and several Congress acts to lower greenhouse gas emissions and reduce energy intensity and water use by 30 percent and 16 percent, respectively, by 2015.

The DEO also plans to up its use of renewable energy to 7.5 percent of electricity needs by 2013.In October, the agency awarded $15 million to 21 companies in an effort to encourage the adoption of energy-efficient technologies for new construction and retrofits in commercial buildings.

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