Bill > S765

This bill aims to standardize how the budgetary impact of certain energy contracts is calculated, specifically focusing on Energy Savings Performance Contracts (ESPCs) and Utility Energy Service Contracts (UESCs). These contracts allow federal agencies to improve energy efficiency and reduce energy costs, with the savings often used to pay for the improvements. The bill clarifies that these contracts are defined by specific federal laws and guidance documents from the Office of Management and Budget (OMB). For the Senate's budget enforcement purposes, the Congressional Budget Office (CBO) will now be required to estimate the financial effects of these contracts by calculating their costs and savings on a net present value basis, which means accounting for the time value of money and market risks over the contract's life. Additionally, the bill specifies that the effects of these contracts will be classified as changes in spending that depend on available appropriations, and it clarifies that these new estimation rules only apply to these specific energy contracts and do not alter how other types of provisions are scored.