California-based Chevron Energy Solutions has been awarded a master contract by the U.S. Department of Energy to work with federal agencies to reduce energy and water consumption and increase the use of renewable energy at agency facilities.

The Energy Savings Performance Contracts (ESPC), awarded to 16 qualified energy contractors, are intended to ensure quality design, implementation, operation and maintenance services for federal agency energy projects.

Each of these new DOE contracts, which have a minimum five year term with the option to increase up to a total of 11 years, provides for a maximum individual contract value of $5 billion over the life of the contract. Federal agencies are allowed to use these contracts for federal facility energy efficiency projects, both nationally and internationally.

The Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007 require federal agencies to achieve a 30 percent reduction in energy intensity and a 16 percent reduction in water use by 2015. They also require an increase in renewable energy use by federal facilities to 7.5 percent of electricity needs by 2013. The new DOE contracts are intended to help federal agencies achieve these mandated targets by working in partnership with the private sector.

The DOE contract is part of the ESPC program authorized by Congress, which allows energy efficiency projects at federal agencies to be funded by guaranteed energy cost savings and, therefore, requiring no capital expenditures up front. Energy contractors, such as CES, obtain financing to fund energy efficiency upgrades and renewable power systems and are repaid for these improvements by the agencies over a period of years through the savings generated by the project.

“This contract is expected to allow CES to expand our partnership with federal agencies to help them become more energy efficient, use more renewable energy and achieve taxpayer savings,” a statement said.

Tags: Chevron Corporation