[Federal Register Volume 78, Number 64 (Wednesday, April 3, 2013)]
[Pages 20097-20099]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-07709]



Office of Energy Efficiency and Renewable Energy

Energy Savings Performance Contracts

AGENCY: Office of Energy Efficiency and Renewable Energy, Department of 

ACTION: Notice of request for information (RFI).


SUMMARY: The U.S. Department of Energy (DOE) seeks comments and 
information regarding improvements to Energy Savings Performance 
Contracts (ESPCs). ESPCs allow Federal agencies to implement energy 
savings projects where the up-front capital cost is financed by an 
Energy Services Company (ESCO), who is then repaid from the agency's 
energy savings over a period of up to 25 years. The DOE Federal Energy 
Management Program (FEMP) is the lead agency program for providing 
implementing rules and policies regarding ESPCs. DOE FEMP strives to 
continuously improve the ESPC processes it is has implemented since 
1996. DOE is publishing this RFI to obtain ideas and input from ESPC

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stakeholders and other interested persons to facilitate further 
improvements to ESPCs.

DATES: Written comments and information are requested on or before May 
3, 2013.

ADDRESSES: Interested persons may submit comments by any of the 
following methods. Your response should be in the form of a Word 
document, or a compatible format.
    1. Email: to [email protected]. Include ``ESPC Comments'' in the 
subject line of the message.
    2. Mail: Mr. Randy Jones, U.S. Department of Energy, 1617 Cole 
Blvd., Golden, CO 80401, Telephone: (720) 356-1667, Email: 
[email protected]. Please submit one signed paper original.

FOR FURTHER INFORMATION CONTACT: Mr. Randy Jones, U.S. Department of 
Energy, 1617 Cole Blvd., Golden, CO 80401, Telephone: (720) 356-1667, 
Email: [email protected], or Ms. Michella Hill, Contracting 
Officer, U.S. Department of Energy, 1617 Cole Blvd., Golden, CO 80401, 
Telephone: (720) 356-1489, Email: [email protected].

SUPPLEMENTARY INFORMATION: The Federal Energy Management Program 
(FEMP), within the DOE Office of Energy Efficiency and Renewable Energy 
(EERE), provides services, tools, and expertise to Federal agencies to 
help them achieve their legislated and executive-ordered energy, 
greenhouse gas, and water goals. These are delivered through project, 
technical, and program services. One of FEMP's major services is to 
support Federal agencies in identifying, obtaining, and implementing 
project funding for energy projects through the use of ESPCs.
    ESPCs allow Federal agencies to accomplish energy savings projects 
without up-front capital costs. In an ESPC, a Federal agency contracts 
with an ESCO, following a comprehensive energy audit conducted by the 
ESCO of a Federal facility to identify improvements to save energy. In 
consultation with the Federal agency, the ESCO designs and constructs a 
project that meets the agency's needs and arranges the necessary 
funding. The ESCO guarantees that the improvements will generate energy 
cost savings sufficient to pay for the project over the term of the 
contract. After the contract ends, all additional cost savings accrue 
to the agency. Contract terms up to 25 years are allowed.
    Under the ESPC statutes, DOE is required to develop methods and 
procedures for Federal agencies to implement the use of energy savings 
performance contracting. On April 10, 1995, DOE established the 
implementing procedures and regulations for ESPCs at 10 CFR part 436, 
Subpart B. (See, 60 FR 18334.)
    To facilitate and accelerate the use of ESPCs, DOE has issued 
Indefinite-Delivery, Indefinite-Quantity (IDIQ) contracts designed to 
make ESPCs as practical and cost-effective as possible for use by 
Federal agencies. DOE awarded these ``umbrella'' contracts to ESCOs 
based on their ability to meet terms and conditions established in IDIQ 
contracts, and consistent with the ESPC regulations. DOE IDIQ contracts 
can be used by Federal agencies to achieve energy savings for any 
Federally-owned facility worldwide, by awarding Task Orders for ESPC 
projects at their facilities.
    Since the inception of DOE's IDIQ contracts in 1996, numerous 
Federal agencies have used them to award more than 280 ESPC projects 
throughout the Federal government. More than $2.71 billion has been 
invested in Federal energy efficiency and renewable energy 
improvements. These improvements have resulted in more than 347.5 
trillion Btu life-cycle energy savings and more than $7.18 billion of 
cumulative energy cost savings for the Federal Government.
    While FEMP has provided implementing rules and policies regarding 
ESPCs, its efforts to promote and improve ESPC projects have been 
primarily through the DOE IDIQ contract vehicle. Over the course of the 
last 15 years, FEMP has continuously improved the ESPC IDIQ contract in 
many key areas, including contractor selection procedures, scope 
definition, Measurement and Verification (M&V), financing procurement, 
and definition of risk and responsibilities.
    More detailed background and specifics of the current FEMP ESPC 
program can be found at: http://www1.eere.energy.gov/femp/financing/espcs.html.
    More detailed information about the IDIQ contracts, FEMP's primary 
vehicle for implementation of ESPCs, including a generic version of the 
current contract, can be found at: http://www1.eere.energy.gov/femp/financing/espcs_resources.html.
    More detailed information about the new FEMP streamlined ESPC 
ENABLE program for smaller facilities can be found at: http://www1.eere.energy.gov/femp/financing/espc_enable.html.

Issues on Which DOE Seeks Information:

    This request for information is issued to solicit input on further 
potential improvements to ESPCs, with emphasis on improvements to the 
FEMP IDIQ contracts. Specifically, FEMP is interested in obtaining 
ideas and information in the following areas:

Speed to Award

     Decreasing the time from the point an agency decides to go 
forward (Issues Notice of Opportunity (NOO), Request for Proposals 
(RFP), etc.) to the time of award.
    [cir] Process improvements and simplifications, while maintaining 
technical and project management integrity.
    [cir] Addressing internal agency policies and processes to speed up 
key reviews, approvals, and decisions.

ESPC IDIQ Contract Improvements

     Opportunities and benefits relating to greater 
standardization of contract processes, terms and conditions across the 
     Comments on current IDIQ processes that allow contractor 
selection based on ESCO qualifications only, without the submission of 
a price proposal.
     Comments on structuring an ESPC IDIQ Contract so that new 
contractors may be added during the life of the contract based on 
meeting the same qualification criteria as specified in the original 
     Comments on a potential process where the technical 
criterion to receive an IDIQ ESPC contract from DOE are based partially 
or fully on meeting requirements of an impartial, national ESCO 
certification program.
     Comments on structuring an ESPC IDIQ Contract so that 
contractors can be removed during the life of the contract based on 
conditions specified in the IDIQ such as non-performance or lack of 
     Improvement of deliverables content and format (Investment 
Grade Audit, Commissioning Plans and Reports, Measurement and 
Verification Plans and Reports, etc.).

Increasing the Certainty of Energy Savings Persistence

     Improvements to Measurement and Verification 
methodologies, to achieve and maintain the greatest assurance of energy 
savings at the least cost.

Approaches To Encourage Innovative or Underutilized Energy Efficiency 
and Renewable Energy Technologies

     Approaches to increase confidence in investing in 
technologies with good potential but little implementation experience.

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     Approaches to incentivize ESCOs to propose innovative or 
underutilized technologies.

Potential Improvements to the FEMP streamlined ENABLE Program for 
Smaller Facilities

     Improvements to the technical tools and contract templates 
that support project development and execution.
     Feedback on the process that is required by GSA Schedule 
84, Special Identification Number 246-53 and use of the Schedule 
ordering process in general.
Disclaimer and Important Notes
    This is an RFI issued solely for information and program planning 
purposes; this RFI does not constitute a formal solicitation for 
proposals or abstracts. Your response to this notice will be treated as 
information only. DOE will not provide reimbursement for costs incurred 
in responding to this RFI. Respondents are advised that DOE is under no 
obligation to acknowledge receipt of the information received or 
provide feedback to respondents with respect to any information 
submitted under this RFI. Responses to this RFI do not bind DOE to any 
further actions related to this topic.
Confidential Business Information
    In accordance with 10 CFR 1004.11, any person submitting 
information he or she believes to be confidential and exempt by law 
from public disclosure should submit via email, postal mail, or hand 
delivery/courier two well-marked copies: One copy of the document 
marked confidential including all the information believed to be 
confidential, and one copy of the document marked non-confidential with 
the information believed to be confidential deleted. Submit these 
documents via email or on a CD, if feasible. DOE will make its own 
determination about the confidential status of the information and 
treat it according to its determination.
    Factors of interest to DOE when evaluating requests to treat 
submitted information as confidential include: (1) A description of the 
items; (2) whether and why such items are customarily treated as 
confidential within the industry; (3) whether the information is 
generally known by or available from other sources; (4) whether the 
information has previously been made available to others without 
obligation concerning its confidentiality; (5) an explanation of the 
competitive injury to the submitting person which would result from 
public disclosure; (6) when such information might lose its 
confidential character due to the passage of time; and (7) why 
disclosure of the information would be contrary to the public interest.
    It is DOE's policy that all comments may be included in a public 
docket, without change and as received, including any personal 
information provided in the comments (except information deemed to be 
exempt from public disclosure).

    Issued in Washington, DC, on March 28, 2013.
Timothy Unruh,
Program Manager, Federal Energy Management Program.
[FR Doc. 2013-07709 Filed 4-2-13; 8:45 am]