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NEMA Applauds Senator Wyden: ESPCs Work


05/3/2013 3:00PM

NEMA applauds Sen. Wyden for urging the administration to commit federal agencies to meeting its 2013 goal of retrofitting federal buildings with energy efficient technologies that cut energy use and save money.

"ESPCs [Energy Savings Performance Contracts] are a good deal for the government. These projects save money by reducing the cost of energy and operations in federal buildings, and they do not require any outlay of funds," wrote Senator Ron Wyden (D-OR), Chairman of the Senate Energy and Natural Resources Committee, in a letter to President Barack Obama on Thursday, May 2. “I support your administration’s $2B performance contracting goal, and I commend the agencies for the more than $500M of investment made toward that target. I encourage you to sustain the program and complete contracts for the remaining $1.5B by the end of this year.” wrote Sen. Wyden.

"ESPCs are a simple and effective way for building owners, especially the federal government, to reduce energy waste without large up-front capital expenditures," said Chuck Konigsberg, Vice President of Strategy and Policy for NEMA. “Given the budget sequester, anytime you can save money while saving energy, it’s a win-win,” said Konigsberg, a former White House budget official. “The Administration should complete the 2013 goal and go further with an executive order that expands the use of ESPCS to save money and save energy in all eligible federal buildings.”

“An ESPC allows a federal agency to hire private companies to finance and install changes to federal buildings, including efficient lighting, sensors, controls and integrated systems that cut energy use and save money. Some of these savings are retained by the agency and the remainder is returned to the private company over time to cover the capital investment,” explained Justin Neumann, Manager of Government Affairs at NEMA.

In December 2011, President Obama issued a presidential memorandum announcing that federal agencies would seek to enter into $2B of ESPC projects by the end of 2013. NEMA is urging an extension and expansion of the program for 2014 and beyond.

Since 1998, the U.S. Department of Energy has awarded more than 280 ESPC projects, resulting in more than $7.2B in cumulative energy cost savings that were leveraged from just $2.7B in private investment from energy service companies.

NEMA is the association of electrical equipment and medical imaging manufacturers, founded in 1926 and headquartered in Arlington, Virginia. Its member companies manufacture a diverse set of products including power transmission and distribution equipment, lighting systems, factory automation and control systems, and medical diagnostic imaging systems. Worldwide annual sales of NEMA-scope products exceed $120 billion.

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