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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 $591 million of energy performance contracts from 2012.

  • Anticipated to result in $39 million of annual avoided energy and water costs for VA
  • Addressing energy infrastructure and building system needs at 58 VA medical centers across the country
  • Long-term avoided costs projected to exceed $1 billion for VA facilities
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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