{
  "id": "RL32543",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "RL32543",
  "active": false,
  "source": "EveryCRSReport.com",
  "versions": [
    {
      "source": "EveryCRSReport.com",
      "id": 305815,
      "date": "2004-09-01",
      "retrieved": "2016-04-07T20:09:37.891463",
      "title": "Energy Savings Performance Contracts: Reauthorization Issues",
      "summary": "Since the 1970s, both the executive branch and Congress have promoted energy efficiency\nwithin\nfederal agencies. When the federal government's energy-efficiency and conservation programs\nreceived severe budget cuts in the 1980's, Shared Energy Savings and later Energy Savings\nPerformance Contracts were devised as part of the strategy to meet federal energy reduction goals.\n  Energy Savings Performance Contracts (ESPCs) offered federal agencies a novel means of\nmaking energy-efficiency improvements to aging buildings and facilities. In return for privately\nfinancing and installing energy conservation measures, a contractor received a specified share of any\nresulting energy cost savings. The contractor, referred to as an Energy Service Company (ESCO),\nguaranteed a fixed amount of energy and cost savings throughout the term of the contract, and bore\nthe risk of the improvement's failure to produce a projected energy savings. The sum of the\nimprovement's cost and its reduced level of energy cost could not exceed the pre-ESPC energy cost. \nThe term \"energy conservation measure\" (ECM) was applied to energy-efficiency improvements\nsuch as energy- and water-saving equipment, and renewable energy systems such as solar energy\npanels. \n  ESPCs were authorized in 1992 by amendments to the National Energy Conservation Policy\nAct. Federal agencies' authorization to enter into ESPCs expired October 1, 2003. Legislative\nattempts to reauthorize ESPCs in the 108th Congress stalled when the Congressional Budget Office\n(CBO) scored ESPCs as mandatory spending that imposed a future financial obligation on the federal\ngovernment.\n  To date more than 340 ESPCs have been awarded with a total value of approximately $1.6\nbillion in private sector investments. None have failed to produce energy and cost savings. In\ncomparison to ESPCs, $3.17 billion in appropriated funds was invested in energy-reducing capital\nimprovements between FY1985 and FY2001, peaking at $288 million in FY1995 and declining to\n$131 million by FY2001. As appropriations-funded energy conservation projects have been\ndeclining since FY1995, federal managers have increasingly turned to ESPCs to fund energy\nconservation measures.\n  Options for Congress include taking no further action on the sunset provision that ended\nagencies' authorization to enter into ESPCs, extending the sunset provision, or extending the ESPC\nauthorization with amendments. Such amendments could include reducing the maximum contract\nlength and expanding the contract scope to non-building applications. This report will be updated\nas the situation warrants.",
      "type": "CRS Report",
      "typeId": "REPORTS",
      "active": false,
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          "url": "http://www.crs.gov/Reports/RL32543",
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      "topics": []
    }
  ],
  "topics": [
    "Appropriations",
    "Energy Policy"
  ]
}