DOE Announces Energy-Savings Project at State Department Leveraging $5.5 Million in Private Investment
December 22, 2011
The U.S. Department of Energy (DOE) announced today an Energy Savings Performance Contract (ESPC) project at two U.S. Department of State facilities in the Washington, D.C. Metropolitan Area. The project, awarded by the State Department to Honeywell, will implement energy efficiency and water conservation measures at the Harry S. Truman Building in Washington, D.C., which serves as the agency’s headquarters, and at the Beltsville Information Management Center in Beltsville, Maryland. Saving energy through ESPCs is a key component of the Obama Administration’s recent directive to reduce energy costs in agency facilities, while creating jobs and cutting carbon emissions.
Under the contract, Honeywell will install energy efficient equipment that will that save more than 25 billion Btu per year—enough to power more than 260 homes for a year—and generate energy, water, and operations and maintenance cost savings of more than $700,000 in the first year alone. The savings on utility bills created through the facility upgrades will be used to pay for the project over the term of the contract, and the State Department will continue to save energy and money after the contract term has ended.
Through DOE's Federal Energy Management Program (FEMP), the State Department contract with Honeywell will leverage private-sector investment of $5.5 million and support the equivalent of 60 jobs for a year. The technologies and efficiency measures Honeywell will implement include: chiller plant optimization; heating, ventilation, and air conditioning optimization; advanced metering; and Energy Management Control Systems, which control and monitor energy consuming devices.
Earlier this month, President Obama announced nearly $4 billion in combined federal and private sector energy upgrades to buildings. As part of that announcement, the Administration issued a Presidential Memorandum committing the federal government to enter into a minimum of $2 billion in performance-based contracts to improve federal building energy efficiency over the next two years. These investments will save billions in energy costs, promote energy independence, and, according to independent estimates, create tens of thousands of jobs in the hard-hit construction sector. See the White House press release.
Department of Energy ESPC Indefinite Delivery Indefinite Quantity (IDIQ) contracts are administered by DOE and are available to all federal agencies. DOE provides the expertise for both technical and financial aspects throughout the development of each project. The federal government is the largest single user of energy in the United States, and ESPCs provide federal agencies with access to project funding at a scale that is needed to meet the challenge of reducing energy and water consumption and boosting the use of renewable energy. For more information on energy savings performance contracts, please visit the ESPC home page.
DOE’s Office of Energy Efficiency and Renewable Energy (EERE) invests in clean energy technologies that strengthen the economy, protect the environment, and reduce dependence on foreign oil. Find out more about how DOE provides the services, tools, and expertise to federal agencies to help them achieve their federal energy management goals at the EERE website.