Transforming Federal Sector Procurement of Performance Based Energy Services

Federal agencies are mandated to reduce their energy use by 30% by 2005. The investment in energy projects required to achieve this reduction is estimated at $4 billion to $6 billion. The Department of Energy's (DOE's) Federal Energy Management Program (FEMP) has developed streamlined procurement vehicles to allow Federal agencies to acquire private sector financed, performance-based energyservices for all Federal buildings. These procurement vehicles, called Super Energy Savings Performance Contracts (Super ESPCs) will be in place covering all regions of the United States by summer 1998. The six regional DOE ESPC contracts will provide agencies the ability to contract for up to $4.5 billion in private sector financed energy services. This represents an estimated potential of $3billion in private sector investments in Federal buildings for energy efficiency, renewable energy and water conservation projects. DOE has developed guidelines and unique project development tools that will allow Federal agencies to contract for ESPC services in months rather than in the years it used to take to develop and implement site specific ESPC projects. The Federal government's buyingpower has transformed the energy services and utilities industries by stimulating the formation of new cross-industry teams and partnerships to meet the breadth of capability and ability to respond to the needs of Federal facilities in large geographic regions. This paper presents results to date and describes the linkages between the Super ESPC Program and the U.S. Climate Change Proposal. Akey U.S. strategy that calls for Federal leadership, and in particular for DOE to spearhead a comprehensive effort to reduce greenhouse gas emissions from Federal sources.