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On May 17, 2018, President Donald J. Trump issued an executive order regarding the energy and environmental performance of executive departments and agencies of the federal government, calling upon each of them to “prioritize actions that reduce waste, cut costs, enhance the resilience of Federal infrastructure and operations, and enable more effective accomplishment of its mission.”1
The order, Efficient Federal Operations, requires each agency to meet a number of goals aimed at achieving higher levels of energy efficiency and cost savings, including:
a. Achieve and maintain annual reductions in building energy use and implement energy efficiency measures that reduce costs
b. Meet statutory requirements relating to the consumption of renewable energy and electricity
c. Utilize performance contracting (e.g., Energy Savings Performance Contracts and Utility Energy Service Contracts, or ESPCs and UESCs, respectively) to achieve energy, water, building modernization, and infrastructure goals
d. Ensure that new construction and major renovation conform to applicable building energy efficiency requirements and sustainable design principles; consider building efficiency when renewing or entering into leases; implement space utilization and optimization practices: and annually assess and report on building conformance to sustainability metrics
e. Track and report on energy management activities, performance improvements, cost reductions, greenhouse gas emissions, energy and water savings, and other appropriate measures.
The federal government manages more than 350,000 buildings and is the largest consumer of energy in the United States. In 2017, Federal agencies spent more than $6 billion on energy for buildings.2
As a member of the Federal Performance Contracting Coalition (FPCC), WGL Energy Services and WGL Energy Systems (WGL Energy) supports this executive order and views it as an affirmation of the economic benefits of ESPCs and UESCs, as they apply to energy and cost savings.
ESPCs and UESCs, collectively known as performance contracts, can help federal agencies procure energy savings technology and building infrastructure improvements with little to no up-front capital costs or appropriations. Through performance contracts, a private sector energy service company (ESCO) like WGL Energy will design, install and finance new energy efficient equipment in federal buildings, reducing energy consumption and lowering operating costs. In exchange for a pre-determined price, the ESCO guarantees future energy savings or performance assurance of the equipment, which are used to pay for the energy efficiency upgrades with excess energy savings at the conclusion of the contract accruing to the federal government agency.
According to the FPCC, “performance contracts create jobs, save American taxpayers money and improve the aging infrastructure of our federal buildings and facilities.”3
For more on how WGL Energy can help your federal agency comply with the executive order on efficient federal operations, contact Chris Mathey at Christopher.Mathey@wglenergy.com.
1 (2018, May 17). Retrieved from https://www.whitehouse.gov/presidential-actions/executive-order-regarding-efficient-federal-operations/
2 (2018, May 17). Retrieved from https://www.whitehouse.gov/briefings-statements/president-donald-j-trump-prioritizes-efficiency-federal-government/
3 (2018, May 18). Retrieved from http://www.federalperformancecontracting.com/static_page.php?i_id=6
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