July 23, 2012
As part of the Obama Administration's commitment to creating jobs, protecting our air and water, and reducing energy costs at federal facilities, the Energy Department today announced a new Energy Savings Performance Contract (ESPC) project awarded by the Department of Veterans Affairs (VA) Greater Los Angeles Healthcare System to NORESCO, LLC. The project will leverage more than $15 million in private sector investments for energy savings and infrastructure improvements at three facilities in the VA's Veterans Integrated Service Network 22.
NORESCO will install eight energy efficiency upgrades at the West Los Angeles VA Medical Center, the Sepulveda VA Ambulatory Care Center, and the Los Angeles VA Ambulatory Care Center. A combination of retrofits and upgrades will save the facilities nearly 65 billion Btu per year. In dollar terms, the projects are expected to save at least $24 million in energy costs over the life of the 19-year contract. 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 VA will continue to save money and energy after the contract term has ended.
The contract includes retrofitting lighting, installing direct digital HVAC controls, switching to more efficient ventilation systems, and installing timers on individual window air conditioning units. The VA has been a leader in the federal government in sustainability initiatives, and the agency continues striving to protect its resources in order to better serve our nation's veterans.
This project supports the Presidential Memorandum—Implementation of Energy Savings Projects and Performance-Based Contracting for energy savings, which commits 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, at no cost to the taxpayer. President Obama announced the investment of nearly $4 billion in combined federal and private sector energy upgrades to buildings in December of last year. The White House press release on the memo announced that the investments will save billions in energy costs, promote energy independence, and create tens of thousands of jobs in the hard-hit construction sector, according to independent estimates.
The Energy Department administers the ESPC Indefinite Delivery Indefinite Quantity contracts, which are available to all federal agencies. The Department provides expertise for both technical and financial aspects of the contract 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, 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 on the Federal Energy Management Program website.