As you recently noted in both testimony before the Congress and in public statements, the United States is
facing the most serious energy supply situation since the 1970s. And, current forecasts suggest that the
demand for energy is increasing. As one of the largest energy consumers in the United States, the Federal
Government has established several programs to reduce demand, specifically, by moderating energy
consumption in Federal buildings. Private financing of energy improvements through what are referred to
as Super Energy Savings Performance Contracts (super ESPCs) is one such mechanism. Under super
ESPCs, energy service contractors use private financing to make energy-savings improvements in Federal
facilities. As compensation for their investment, they receive a share of the cost savings. Thus, super
ESPCs represent a way to achieve Federal sector energy savings at no capital cost to the Government.
