Utility Energy Service Contract Laws and Regulations

The Energy Policy Act (EPAct) of 1992 authorizes and encourages Federal agencies to participate in utility energy efficiency programs. Legislation authorizing utility energy service contracts (UESCs) is outlined below, along with legal opinions and guidance outlining the use of UESCs by Federal agencies.

A detailed compilation of UESC enabling regulations and guidance is available in FEMP's UESC: Enabling DocumentsPDF. This document serves as the primary reference for Federal agencies and utility partners conducting UESC projects.

Laws and Regulations

This section outlines legislative and executive authorities that support contracting for utility services, along with regulations associated with procuring these services.

  • Energy Policy Act of 1992 (42 USC Section 8256): Incentives for Federal agencies, legislation addressing contracts, the Federal Energy Efficiency Fund, utility incentive programs, and the Financial Incentive Program for Facility Energy Managers.

  • 10 USC Section 2913: Outlines energy savings contracts and related activities, shared energy savings contracts, participation in gas or electric utility programs, acceptance of financial incentives, and agreements with gas or electric utilities.

  • Federal Acquisition Regulations (FAR), Part 41: Covers the use of areawide contracts for the purchase of all types of utility services.

  • Executive Order 13423PDF: Addresses energy reduction goals for Federal facilities.

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Legal Opinions

Legislation and executive actions that enable agencies to enter in utility energy service contracts can be interpreted in many ways. Several legal opinions pertinent to these contracts are included in this section:

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Guidance

The following guidance is intended to help Federal agencies evaluate and implement UESC and other utility partnership activities:

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