Federal Energy Management Program
The Federal Energy Management Program (FEMP) helps federal agencies manage their building and fleet energy use by providing training, tools, technical assistance, and funding.
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Best Practices for Renewable Energy Installations in the National Parks
The U.S. Department of Energy (DOE) Federal Energy Management Program (FEMP) and National Park Service (NPS) have partnered to support the development and utilization of renewable energy technology at federal facilities and on federal lands. FEMP provides technical support to NPS on renewable energy projects to identify and generate significant cost savings and efficiency benefits, investigate opportunities to reduce carbon footprint and/or achieve carbon neutrality, and improve resilience to NPS-owned facilities and sites. The purpose of this report is to support NPS staff as they evaluate whether and how to use renewable energy technologies in park operations.
24 POWER TRANSMISSION AND DISTRIBUTION↗
Performance Assurance Planning Guide for Utility Energy Service Contracts: 2025 Edition
Administered by the U.S. Department of Energy's (DOE) Federal Energy Management Program (FEMP), the Utility Program has fostered collaboration among federal agencies and their serving utilities for more than 25 years. The Utility Program supports agencies using Utility Energy Service Contracts (UESCs), a well-developed, effective contracting vehicle that enable the latest approaches to cost-effective energy management at federal sites. Federal agencies have successfully used UESCs to award over 2,000 energy and water efficiency and renewable energy projects, investing approximately $\$$2.8 billion in furthering the Federal Government's efforts to reduce energy intensity. Authorized by 42 U.S. Code section 8256 (10 U.S. Code section 2913 for the Department of Defense), a UESC is a limited-source acquisition between a federal agency and an eligible serving utility for energy management services that generate savings from the implementation of energy- and water -conservation measures (collectively referred to as ECMs), with 42 U.S. Code section 8287 (Defense Federal Acquisition Regulation Supplement, Part 241), providing the term of a UESC, which may extend up to 25 years. Through a UESC, the utility partner assesses designs, and implements the desired ECMs - which can range from lighting retrofits and renewable energy systems, to combined heat and power plants or other technologies and strategies, and may provide financing for the project. The agency may use any combination of appropriations and third-party financing to pay for the project, providing useful flexibility. There is no limit to the project size, big or small, that can be implemented using a UESC. To assist agencies implementing a UESC, FEMP has developed a Utility Energy Service Contract Guide and this companion guidance document to help agencies and their utility partners better understand the best practices for to ensure UESCs continue to perform and generate savings throughout their performance period. These best practices utilize a combination of effective project management, communication, documentation, and a detailed Performance Assurance Plan. This plan is a project specific set of actionable protocols that define important tasks and responsibilities throughout the contract term and reflects the site conditions, complexities, agency capabilities, and operating and maintaining planned ECMs.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗
Determining Price Reasonableness in Energy Performance Contracts
Report provides recommendations and best practices concerning fair and reasonable price determination in federal energy performance contracts (EPCs), which include energy savings performance contracts (ESPCs) and utility energy service contracts (UESCs). It reflects the experiences, lessons learned, and best practices of agencies implementing EPCs, and is consistent with FEMP’s training on this subject. This is an update to the 2015 revision.
Dominy, Russ [Boston Government Services (BGS)]↗
Case Studies in Leveraging Performance Contracts for Resilience Projects
The resilience of federal facilities has become increasingly important among lawmakers, agency leadership, and the American public as high impact natural hazards occur more frequently over time. Resilience is broadly defined as the ability of a federal facility to withstand, respond to, and recover rapidly from disruptions to maintain critical functions. The Department of Energy (DOE) Federal Energy Management Program (FEMP) was codified to facilitate the strengthening of federal energy and water efficiency and resilience. Performance contracting is one of the mechanisms through which federal agencies can finance projects at their facilities, but resilience improvement measures do not always result in utility cost savings, which are the primary driver behind performance contracts. This report provides example cases where performance contracts, specifically energy savings performance contracts (ESPC) or utility energy service contracts (UESCs), were used to implement a resilience measure at a federal facility.
99 GENERAL AND MISCELLANEOUS↗
How To Determine and Verify Operations and Maintenance Savings in Energy Savings Performance Contracts
Operations and maintenance (O&M) savings frequently occur in energy savings performance contracts (ESPCs). During FY 2022, 37% of reported annual cost savings for projects awarded under the U.S. Department of Energy (DOE) ESPC indefinite delivery indefinite quantity (IDIQ) contracts and in the performance period were due to O&M or other energy- and/or water-related cost savings, with the balance (63%) from utility cost savings (i.e., energy or water cost savings). Sometimes the energy- and water-related cost savings are acknowledged and included in payments within ESPCs; other times, for various reasons, they are not. As presented in this guide, FEMP recommends including energy- and water-related cost savings that are O&M (including related repair and replacement) savings in the financial aspects of an ESPC, to the extent such savings can be documented. Inclusion of these savings will help augment project scopes and/or lower interest costs (by shortening financing terms). However, there is a burden of proof as to what constitutes acceptability in O&M savings that needs to be carefully considered and documented in individual projects. Beyond promoting a key tenet used in U.S. federal performance contracting—that savings must be from actual budgets and therefore based on the level of O&M that is actually occurring, not what should have been performed—FEMP also recommends good practice in establishing and documenting O&M baselines, formulating the rationale for baseline adjustments during the performance period, and conducting ongoing verification activities. This document concludes with five examples of how O&M savings may be handled, in situations ranging from the partial displacement of O&M contracts to consolidation and “virtualization” of servers in data centers. A key theme that permeates this guide is the importance of thoroughly documenting all conditions and assumptions used in the development of and accounting for O&M costs and savings throughout the ESPC life cycle, from baseline-setting to measurement and verification (M&V) of the savings during each year of the performance period. Doing so not only prevents internal claims of non-performance (especially in the case of staff turnover during the contract term), but also simplifies ordering agency and energy service company (ESCO) response in the event of scrutiny from oversight organizations, such as government audits. While this guide focuses on federal ESPCs, it may also be applicable when O&M savings are included in utility energy service contracts (UESCs) and non-federal ESPCs.
Voss, Phil↗
Federal Workplace Charging Program Guide
The 2015 Fixing America's Surface Transportation (FAST) Act authorizes the installation, operation, and maintenance of electric vehicle supply equipment (EVSE) for the purpose of recharging employees' privately owned vehicles (POVs) under the custody or control of the General Services Administration (GSA) or a Federal agency. It requires the collection of fees to recover the costs of installing, operating, and maintaining this equipment and imposes reporting requirements. This program guide reviews those requirements, excerpts the relevant language in Appendix A, and describes when and how fees may be required to cover costs of electricity, network costs, EVSE units, and installations in various scenarios. This program guide is designed to support Federal agencies developing and refining workplace charging programs for employee POVs. While it provides guidance and best practices, it does not replace agencywide policies or agency-specific legal counsel. It contains a roadmap for agency workplace charging programs and defines roles and responsibilities. This guide explains how to determine the number of POVs likely to charge at a given site and contains a sample employee survey in Appendix B. It reviews EVSE planning, including unit selection and acquisition, charger location(s), accounting for available power capacity, using existing infrastructure, and funding an incentive program. It also discusses the costs associated with EVSE acquisition, installation, and network management. These costs inform the subsequently provided information, which describes how to amortize costs to determine appropriate fees for each charging session. The final two sections of this guide address aspects of ongoing program management that the facility coordinator should consider and the reporting requirements associated with the FAST Act. The insights in this guide are applicable to all agency-owned and GSA-leased buildings or facilities offering the use of EVSE or a 120-volt receptacle for the purpose of recharging an employee's POV. However, the FAST Act requirements typically do not apply to any building or facility operated and maintained by a third-party vendor offering the use of EVSE as part of a commercial building lease unless the agency is managing the station and/or energy on behalf of the building and collecting POV fees.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗