WASHINGTON, DC—To help meet the agency’s mission, we are now implementing new energy savings performance contracts for the first time since 2017. These contracts allow federal agencies to procure energy savings and facility improvements funded by the savings generated, with no up-front capital costs. Projects include energy and water conservation measures such as LED lighting, solar photovoltaics, and HVAC controls. 

The Forest Service has developed an agency-wide approach to energy savings contracts. This includes a budget procedure that funds contract payments from the national account where the project savings accrue. The agency awarded a blanket purchase agreement—the first of its kind—in September 2022 to Siemens Industry, Inc. for the streamlined “ENABLE” type of energy savings contracts. At the same time, the agency awarded the first task order for Region 5 for projects on the Klamath and Inyo national forests, and the Lake Tahoe Basin Management Unit. These projects are estimated to result in avoided utility costs of about $150,000 annually. Other projects proposed by regions and stations will be pursued with national-level coordination.

Based on the above steps, the Department of Energy approved the agency to move into Phase 2 of a competitively awarded $1 million grant and begin using matching funds from the grant. The Forest Service will use the grant to develop and institutionalize an ongoing energy savings performance contracts program and identify a series of energy savings projects. The Phase 2 approval releases up to $700,000 in matching grant funds for projects.

While energy savings performance contracts will focus on facilities with long-term planned utilization and will not address all our energy goals, experience shows that they will have significant impacts. Prior to 2018, the agency awarded 11 energy savings performance contracts that will generate guaranteed cost savings of over $32 million over their terms. During their terms, these energy savings performance contracts will have saved over 47 billion BTUs of energy annually, with annual carbon storage equivalent to 11,500 acres of U.S. forests, or the pollution reduction of taking 2,100 passenger cars off the road. 

This joint effort has included multiple regions; Washington Office Engineering, Technology, and Geospatial Services; Procurement and Property Services; Budget and the Enterprise Program. 

For questions about the overall program contact Kristen Waltz (kristen.waltz@usda.gov). For questions about the BPA contact M. Renee Jewell (marilyn.jewell@usda.gov). See the Energy Savings Performance Contracts SharePoint site for more information.