Performance Contracting | Federal Laws and Requirements Search

DOD-Specific Authorities
Title	Legal Authority	Originating Legislation	Summary
Contracts for Energy or Fuel for Military Installations	10 U.S.C. § 2922a	Multiple Statutes	Separate U.S. Department of Defense authority to enter into contracts for up to 30 years for services that provide and operate energy production facilities on military installations, and, in turn, purchase the energy generated from such facilities.
DOD Energy Savings Contracts and Activities	10 U.S.C. § 2913	Public Law No. 109-364	Military departments and defense agencies may participate in gas or electric utility programs for managing energy demand or for energy conservation.

General Authorities
Title	Legal Authority	Originating Legislation	Summary
Contract for Public Utility Services	40 U.S.C. § 501	Federal Property and Administrative Services Act of 1949	Authority for agencies to enter contracts for public utility services for periods up to 10 years.
Energy Savings Performance Contract Authority	42 U.S.C. § 8287 et seq.; 10 C.F.R. § 436.30 et seq.	Multiple Statutes	Federal agencies may enter into an energy saving performance contract (ESPC) for a period of up to 25 years for the purpose of achieving energy savings and benefits ancillary to that purposes.
Federal Energy-Efficiency Fund	42 U.S.C. § 8256(b)	Multiple Statutes	The U.S. Department of Energy DOE may provide grants to agencies to assist them in meeting the requirements of 42 U.S.C. § 8253.
Implement Performance Contracts for Federal Buildings	N/A	N/A	Implement performance contracts for Federal buildings by using performance contracting as a tool to help meet identified energy efficiency and management goals and providing annual agency targets for performance contracting for energy savings to be implemented in fiscal year 2017.
Utility Incentive Programs	42 U.S.C. § 8256(c)	Multiple Statutes	Authority for agencies to accept financial incentives, goods, or services generally available from a utility to increase energy efficiency or to conserve water or manage electricity demand.

Requirements to Use Performance Contracting
Title	Legal Authority	Originating Legislation	Summary
Implementation of Identified Energy and Water Efficiency Measures	42 U.S.C. § 8253(f)(4)	EISA 2007 § 432; EA 2020 §1002	Each Federal agency shall use performance contracting to address at least 50 percent of the measures identified (Guidance to determine criteria: 50% of implementation cost, counting of measures problematic)
Leveraging Performance Contracting	E.O. 14057 Sec 205(c)(iv)		In accordance with the Energy Act of 2020, which requires agencies to complete at least 50 percent of all identified lifecycle cost effective energy and water savings measures through performance contracting, agencies will expand use of performance contracting to: improve efficiency; achieve energy, water, and GHG emission reductions; expand use of carbon pollution-free electricity, increase infrastructure resilience; modernize buildings; and, support achievement of net-zero goals.