Energy Act of 2020 Energy Performance Contracting Planning and Implementation Tool (EPC-PI Tool)

Energy performance contracting is a time-tested tool to help reduce energy waste and replace failing and inefficient building infrastructure, thereby increasing the resilience and efficiency of the federal government.

The Energy Act of 2020 was signed into law on December 27, 2020. It amended 42 U.S.C. § 8253(f)(4) to require federal agencies to use performance contracting to address at least 50 percent of identified energy and water efficiency measures in covered facilities within a 2-year window from the date of the completed evaluation for evaluations completed after December 27, 2020.  The Energy Act of 2020 leverages public-private partnerships to modernize federal buildings to better meet agencies' missions, create good-paying jobs, and enhance energy and water efficiency. The energy performance requirements related to the Energy Act of 2020 are expected to:

• Increase implementation of identified life-cycle cost effective measures bundled into a self-funded project;
• Address expansive deferred maintenance issues at federal facilities; 
• Leverage energy and water cost savings to fund facility improvements.

The Federal Energy Management Program (FEMP) provides agencies with expert assistance, guidance, and training to help them implement performance contracts, including both energy savings performance contracts (ESPCs) and utility energy service contracts (UESCs). FEMP published preliminary direction to help federal agencies plan to meet new energy performance contracting requirements relating to the Energy Act of 2020. 

The resources below can serve as a helpful starting point for agencies looking to assess their portfolio for opportunities to reduce energy and water waste and cost, meet the Energy Act of 2020 requirements related to implementing identified measures, and for training and best practices on implementing energy performance contracts.