Alternative Financing - ESPC

Energy savings performance contracts (ESPC) are partnerships with private sector companies known as energy service companies (ESCOs). These contracts allow installations to improve their infrastructure and implement energy projects while paying for the measures with the anticipated savings being generated by the project over time (10-25 years). The attached memo (.pdf, 1.24Mb) provides Army policy guidance for implementation of ESPC. View the ESPC Policy Handbook (.pdf, 1.24Mb). View the White House letter supporting use of ESPC (.pdf, 47kb) (5/3/06).

Perhaps more importantly, ESPCs give Army facility managers a solution to facility problems with minimal up-front cost. Applied with care and consideration, ESPCs can help facility managers:

The Energy Policy Act of 2005 reauthorizes Energy Savings Performance Contracts (ESPCs) through 30 September 2016. EISA 2007 permanently extends the ESPC authority.

For more information on ESPC, visit the following: