Energy Savings Performance Contracts (ESPCs)
- 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 awarded $631 million of energy performance contracts since 2011.
- Anticipated to result in $40 million of annual avoided energy and water costs for VA
- Addressing energy infrastructure and building systems needs at 60 VA medical centers across the country
- Long-term avoided costs projected to exceed $1 billion for VA facilities
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.