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Federal Energy Management Program
Project Financing Making It Simple to Save Energy

FEMP is ready to help.

FEMP's services are designed to help you develop a project that addresses your organization's priorities and needs-a project that is technically excellent, contractually and legally sound, and financially smart.

Super ESPCs and UESCs make the process quicker and easier. An ESPC or UESC project can:

• reduce energy use and cost;
• improve buildings; upgrade infrastructure;
• solve maintenance problems;
• provide safer and healthier living and working conditions;
• and help meet federal energy, water, and emissions-reduction goals.

FEMP's technical and project financing experts can provide:

• help to determine which contracting mechanism best fits your needs;
• training for agency acquisition teams;
• education and advisory support to agency staff on legal, technical, financial, and contractual issues;
• user-friendly guidance documents;
• help developing requests for proposals, initial proposals, and task/delivery orders;
• review of price and technical proposals, and
• experienced project facilitators to guide you through the entire process of developing
  and implementing a project.

Utility Energy Service Contracts

More than 45 electric and gas utilities have provided project financing for energy- and water-efficiency upgrades at federal facilities throughout the United States. Since UESCs were authorized by the Energy Policy Act of 1992, participating utilities have invested more than $500 million in federal energy-efficiency projects through them. The scope of utility energy services ranges from audits, to design assistance, to delivery of complete turnkey projects. Through this financing mechanism, utilities provide upfront project funding and agencies pay for the services over time on their utility bills.

Federal legislation, supported by agency legal opinions, gives agencies the authority to enter into UESCs. Agencies contract directly with their utility for energy services through mechanisms such as areawide contracts or basic ordering agreements. The UESC approach is very attractive to many federal agencies because it offers the benefit of working with a known entity, it's fast, the contracting vehicles are flexible, and payments are made through the utility bill. FEMP provides support tailored to meet an agency's needs. FEMP services include how-to manuals, training, technical support, and direct project assistance.

Utilities have a long-term that's helped us get great deals that meet our needs. FEMP has been a big help in the contracting process, and extremely pleased with their work. --S. Krstulovich Project Coordinator, Fermi Laboratories, Chicago, Illinois.

Energy Savings Performance Contracts

ESPCs allow federal agencies to leverage private-sector funds to implement energy improvements without relying on Congressional appropriations. Since 1988, federal agencies have used ESPCs to leverage an estimated $795 million in private-sector investment to make energy-efficiency improvements at their facilities. With an ESPC, an energy service company (ESCO) arranges for the capital financing to develop projects. The ESCO guarantees that the upgrades, retrofits, and performance improvements will result in a specified level of savings. The ESCO is then paid for its investments and services from a portion of the energy cost savings. After the contract term ends, all additional cost savings accrue to the agency.

Awarding a stand-alone ESPC can be very complex and time consuming. Recognizing this, FEMP created streamlined Super ESPCs. With these umbrella contracts, agencies can take advantage of services from a number of ESCOs-that have already satisfied federal competition requirements-to implement energy-improvement projects. Super ESPCs allow federal customers to develop projects in a fraction of the time it takes to award a stand-alone ESPC.

FEMP provides individualized support to the extent desired by federal agencies implementing Super ESPCs through training, project development tools, and technical support.

I am thoroughly impressed by the engineering and contract support from FEMP. They are very professional, and the quality of technical and contractual knowledge they provide is superb. --D. Seril, Project Manager, Department of Defense, Defense manpower Data Center (DMDC), Seaside, California.

The Time Is Now.

The federal government is the largest consumer of energy in the United States. It provides electricity, gas, and water to approximately 500,000 buildings comprising more than 3 billion square feet of floor area. By upgrading energy and water systems, federal agencies can save more than $1 billion per year.

A comprehensive upgrade project can achieve up to a 40% reduction in annual energy use and can produce $2 in savings for every $1 invested.

Through the Energy Policy Act of 1992 and Executive Order 13123, all federal agencies are directed to reduce their energy consumption below 1985 levels by 30% per square foot by the year 2005 and by 35% by 2010.

FEMP's mission is to reduce the cost and environmental impact of government by helping agencies reduce the use of energy and water, manage utility costs, and use renewable energy. FEMP helps agencies to advance energy efficiency and achieve their energy goals.

Upgrade and Save. FEMP Can Help.

FEMP provides experts who are dedicated to helping federal agencies implement energy projects and meet their federal energy goals. You can rely on FEMP, with the support of partners from DOE's field offices, regional offices, and national laboratories, to support you with a full suite of services geared to developing best-value projects. Services range from assistance with contract planning to comprehensive technical support. Because obtaining funds may be your biggest hurdle, FEMP can help you arrange project financing that requires no upfront capital investment.

FEMP offers assistance to federal agencies through interagency agreements on a reimbursable basis with flexible payment terms. You may select and pay for the level of services that your agency needs.

FEMP's technical, contractual, and financial experts are ready to assist you in planning and managing energy projects through two financing options-Super Energy Savings Performance Contracts and utility energy service contracts.

Contact Us!

FEMP experts are ready to support your energy -savings program. Call the regional office closest to you.

Tatiana Strajnic
Project Financing Team Leader
Telephone: 202-586-9230

Brad Gustafson
Utility Program Manager
Telephone: 202-586-5865

U.S. Department of Energy
Office of Energy Efficiency and Renewable Energy
Federal Energy Management Program, EE-90
1000 Independence Avenue, SW
Washington, DC 20585

Fax: 202-586-3000
www.eren.doe.gov/femp