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:
- Reduce equipment breakdowns and emergency repair requests
- Provide better, more productive living and working conditions for your people
- Reduce costs
- Meet environmental mandates such as CFC phase-out
- Save energy and meet management goals
The Energy Policy Act of 2005 reauthorizes Energy Savings Performance Contracts (ESPCs) through 30 September 2016. EISA 2007 permanently extends the ESPC authority.
- View current legislation governing ESPC and UESC (10 USC 2913) - Note: EISA amended 10 USC 2913 to remove the $7,000,000 cancellation ceiling notification requirement.
For more information on ESPC, visit the following: