The Energy Department may soon announce a plan for new contracts which agencies can use to finance up to $50 billion in energy-savings investments over the next decade, Federal Times reports.
Under the Energy Department’s Super Energy Savings Performance Contracts (Super ESPC) program, about 10 contractors are expected to get the new deals.
Some benefits of the new contracts:
— Eliminates the regional barriers in existing ESPCs in favor of national and international contracts.
— Expands the number of contractors eligible to do business.
— Extends the maximum payback period for projects from 20 years to 25 years.
— Increases the maximum amount of business that can go to individual companies from $750 million to $5 billion.
— Allows for energy savings projects to be funded with no upfront investment by agencies. Contracts pay for the upgrades and then are paid back over a period of years using a portion of savings that agencies realize from reduced energy bills.
Six companies currently have Super ESPC contracts: Honeywell International, Johnson Controls Government Systems, Noresco, Ameresco Solutions, Constellation Energy Projects and Services Group, and Chevron USA. Only Honeywell and Noresco are qualified to do business in all regions.