FOR IMMEDIATE RELEASE
October 11, 2016
Contact: Laura Tierney
Email: [email protected]
Expanding Use of Innovative Financing Tool Will Save Taxpayers Money
Washington, DC – Lisa Jacobson, President of the Business Council for Sustainable Energy, released the following statement regarding the announcement from the White House last week to extend and expand the use of Federal Energy Savings Performance Contracts.
“The Business Council for Sustainable Energy is pleased that the federal government will continue to lead by example through expanded use of Energy Savings Performance Contracts (ESPCs) using the successful Federal Performance Contracting Challenge.
“ESPCs enable the federal government to reduce energy consumption and to install renewable energy projects by partnering with the private sector. The cost of the projects is repaid through guaranteed energy cost savings. In an ESPC, an Energy Services Company installs new energy efficient equipment at federal facilities with no upfront cost to the government. These improvements reduce energy and water consumption. Federal agencies then pay the energy service company over a period of time using the annualized energy cost savings. By law, the savings are guaranteed so the government never pays more than it would have paid for utilities if it had not entered into the ESPC.
“Since 2008, federal agencies have awarded over $3.5 billion in energy savings performance contracts to improve energy efficiency and are on track to reach the administration’s $4 billion goal by the end of the year. The administration’s plan to expand the use of this innovative financial tool by an additional $2 billion will save money and further increase investments in smart infrastructure, energy efficiency, and renewable energy.
“Expanding the challenge to water efficiency, in addition to energy efficiency and renewable energy, will help to save even more money, along with saving 2 billion gallons of water.”
Download the press release here.