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Energy Management Program Service (EMPS)

 

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

VA awarded $356 million of energy performance contracts from 2012 to 2016

Benefits
  • Approximately $26 million in annual savings for VA
  • Addressing infrastructure and building system needs at 42 VA medical centers across the country
  • Reduced energy usage by an average of 26% and water usage by an average of 18%
Project Highlight: Performance Contracting at VA Marion Medical Center
  • Ingenuity and large impact in leveraging energy and related savings to finance the critical replacement of a central boiler plant
  • Projected to save $817,000 annually in natural gas and electricity costs
  • Recognition from White House and Department of Energy
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