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Energy, Environment, & Fleet (EEF) Program Service


Energy Savings Performance Contracts (ESPCs)

New transformers in Danville, IL; Installing exhaust fans in Ann Arbor, MI; New dehumidification unit in Battle Creek, MI

About Energy Savings Performance Contracts
  • Government partners with private sector companies and utilities to install energy and water conservation measures without the need for upfront appropriations.
  • Private sector companies take on the performance risk of the equipment and obtain competitive financing from a third-party lender.
  • Agency pays them back over time from the energy and water savings associated with the more efficient equipment.
  • Provides a solution to more immediately upgrade aging infrastructure and critical building systems when appropriations are not readily available.
VA Efforts and Benefits

$1.1 billion in upgrades at 88 medical centers through contracts with private sector investment since 2011

More than $1.66 billion in long-term avoided costs for VA facilities

Project Highlight:  Performance Contracting at VA Northport Medical Center

VA and ConEdison Solutions staff oversee removal of failed cooling tower equipment and installation of new, energy efficient, cooling tower equipment on the roof of Northport's main hospital (building 200) via air-crane

VA awarded a Utility Energy Service Contract (UESC) to address a critical infrastructure repair when the Northport VAMC’s cooling towers failed. Verified avoided costs during the first year totaled $1,159,283, exceeding projections by nearly $34,000. The UESC mechanism has allowed VA to efficiently address issues that directly impact the Northport VAMC’s ability to serve Veterans in a comfortable and safe environment, while also saving money for tax payers. This project has been highlighted by the Department of Energy as a UESC success story.

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