The U.S. government, the nation's largest single user of energy, is looking to award $80 billion in contracts to companies that can help it more efficiently manage energy, but it doesn't plan to pay any upfront capital costs.
The Department of Energy said Thursday that the 16 specially designed contracts will allow it to increase energy efficiency, add renewable sources and reduce water use at federal buildings and facilities using savings from the lower utility bills.
"This set of awards will ensure that federal agencies have access to powerful tools for alternative financing at a scale that is needed to meet our challenge of reducing energy intensity, increasing the use of renewable energy, and decreasing water consumption," Energy Secretary Samuel Bodman said in a statement.
Recipients of the contracts include electric utilities, renewable energy companies, defense contractors, and heating, cooling and ventilation system manufacturers.
Under the arrangement, a contractor designs, constructs and obtains the necessary financing for an energy savings project, and the agency makes payments over time using savings from the lower bills.
The contractor must guarantee that the improvements will generate savings, and the total annual amount of payments to the contractor and utility companies cannot exceed the amount that the agency would have paid for utilities without the energy saving project, the department said.
The goal is to reduce energy use by 30 percent and water use by 16 percent by 2015. The requirements set out in energy legislation and an executive order also call for an increase of renewable energy to 7.5 percent of electricity needs by 2013 for federal facilities.
Bodman in August 2007 launched a department-wide effort to reduce energy use across its nationwide complex by 30 percent. The initiative aims to meet or exceed goals set in the executive order, which looks to reduce energy intensity and greenhouse gas emissions, substantially increase use and efficiency of renewable energy technologies, adopt sustainable design practices and reduce petroleum use in federal fleets.
Contracts were awarded t
— Ameresco Inc., Framingham, Mass.
— Chevron Energy Solutions, Eagan, Minn.
— Clark Realty Builders, Arlington, Va.
— Consolidated Edison Solutions Inc., White Plains, N.Y.
— Constellation Energy Projects & Services Group Inc., Baltimore
— FPL Energy Service Inc., North Palm Beach, Fla.
— Honeywell International Inc., Golden Valley, Minn.
— Johnson Controls Government Systems LLC, Milwaukee
— Lockheed Martin Services Inc., Cherry Hill, N.J.
— McKinstry Essention Inc., Seattle
— Noresco LLC, Westborough, Mass.
— Pepco Energy Services, Arlington, Va.
— Siemens Government Services Inc., Reston, Va.
— TAC Energy Solutions, Seattle
— The Benham Companies LLC, Oklahoma City
— Trane U.S. Inc., McEwen, Tenn.
