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Utility Energy Service Contracts

Utility energy service contracts (UESCs) offer federal agencies an effective means to implement energy-efficiency, renewable-energy, and water-efficiency projects. Under 42 U.S.C. 8256, federal agencies are authorized and encouraged to participate in energy-efficiency, water-conservation, and electricity-demand programs offered by gas, water, or electric utilities. In a UESC, the utility will provide the analysis, design, and installation and when necessary, arrange financing. Agencies may implement a UESC with no initial capital investment or may use appropriated funds strategically to maximize the impact of their projects.

Section 432 of 42 U.S.C. 8253 authorizes agencies to combine appropriations and financing. When a project is financed, the financed amount is repaid over the contract term from cost savings generated by the project.

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Read about the Utility Partnerships Program.