Energy Savings Performance Contracts
The ARNG Directorate will conduct a demonstra-
tion/validation project at AHS for optimizing energy
use and efficiency through the use of an Energy Sav-
ings Performance Contract (ESPC). This ESPC will
allow AHS to accomplish energy savings projects
without up-front capital costs and without special
Congressional appropriations. The federal govern-
ment spends billions of dollars on energy costs each
year. This large-scale financing of projects can be pro-
hibitively expensive for a federal agency (DoE 2011).
The ESPC is a partnership between the ARNG and
an energy service company (ESCO). The ESCO con-
ducts a comprehensive energy audit for AHS, identi-
fies improvements to save energy, designs, constructs,
and maintains a project that meets the needs of AHS.
ESCO also assists the ARNG with developing a fund-
ing plan and arranges the necessary funding. The
ESCO guarantees that the improvements will gener-
ate energy cost savings sufficient to pay for the project
over the term of the contract.
Key components of the project include renewable
energy systems, automated building controls, updat-
ed HVAC equipment, and a recycling program. The
projected savings to AHS are approximately $800,000
annually (Benham 2010). The project also meets the
requirements mandated by Presidential Executive Or-
der 13514, signed by President Obama on October 5,
2009 which directs a sustainable plan for energy for
the federal government.
State Sustainability Planning and Partnering
The ARNG Directorate provides additional guid-
ance to state ARNGs in the form of sustainability