Pentagon to Triple Energy-Savings Contracts in 2013
March 14, 2012
The Defense Department plans to more than triple its annual spending through energy savings performance contracts by the end of fiscal 2013.
DoD plans to award $465 million worth of ESPCs this year and $718 million in 2013, according to documents released at a March 7 hearing. The 2013 figure is more than three times the $201 million awarded in 2011.
The move comes after President Obama in a December memo directed agencies to award a combined $2 billion in ESPCs over the next two years. Under an ESPC, a vendor pays the upfront investment for building renovations and retrofits in exchange for payments from the government's energy savings over time. Agencies can also add in retrofits to save money on other utility bills, including water.