Energy, Environment, & Fleet (EEF) Program Service
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.
$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
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.