Bill > S723

This bill, the Utility Energy Service Contracts Improvement Act of 2015, aims to update the National Energy Conservation Policy Act to provide clearer guidelines for how federal agencies use utility energy service contracts, or UESCs. UESCs are a tool that federal agencies, which are the largest energy consumers in the U.S. and are mandated to meet energy efficiency targets, can use to implement projects that improve energy efficiency, utilize renewable energy, and conserve water. The bill acknowledges that UESCs have already been successfully used to invest significantly in federal facilities and that agencies like the General Services Administration and the Federal Energy Management Program, which oversees UESCs, have recognized that these contracts can extend beyond the typical 10-year limit. Despite existing precedent for longer contract terms, some agencies have incorrectly limited UESC terms to less than 10 years, hindering their effectiveness and potentially increasing operational costs. Therefore, this bill clarifies that UESCs can have contract periods extending beyond 10 years, up to a maximum of 25 years, and will require these contracts to include provisions for measuring, verifying, and guaranteeing the projected savings, ultimately aiming to reduce federal agency operational costs and save taxpayer money.