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NIH Environmental Management System

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Energy Performance Contracts

​As outlined in Executive Order (EO) 14057, Catalyzing ​Clean Energy Industries and Jobs Through Federal Sustainability, the NIH must achieve net-zero emissions across its portfolio of buildings, campuses, and installations by 2045 and reduce greenhouse gas emissions by 50 percent from buildings, campuses, and installations by 2032 from 2008 levels. Achieving this goal will require the use of energy performance contracts to increase the overall energy efficiency of NIH facilities. The NIH must:

  • ​​​​​​Use performance contracting, in accordance with the provisions of Section 1002 of the Energy Act of 2020, to improve efficiency and resilience of Federal facilities, deploy clean and innovative technologies, and reduce greenhouse gas emissions from building operations​. This requires the NIH to report:
    • ​energy savings performance contracts, including their investment value,
    • ​initial guaranteed savings compared to actual energy savings from the previous year,
    • ​the plan for entering into new contracts in the coming year, and
    • information explaining why any previously submitted plans for contracts were not implemented.​

To demonstrate progress from the NIH in energy performance contracts and overall sustainability, NIH publishes an annual Sus​tainability Plan (SP) and reports progress to their parent government agency, the Department of Health and Human Services (HHS). HHS adheres to the requirements of EO 14057 and EO 14008, Tackling the Climate Crisis at Home and Abroad, and publishes an annual Sustainability​ Plan to demonstrate overall agency progress.

Progress Toward Goal

Energy Performance Contracts, including both Energy Savings Performance Contracts (ESPCs) and Utility Energy Service Contracts (UESCs), enable agencies to obtain energy efficiency investments in buildings and deploy on-site renewable energy through long-term contracts with the private sector, which are in turn paid through savings derived from those investments.​

The NIH has evaluated 90% of it's EISA-covered (Energy Independence & Security Act of 2007​) facilities (CF) for efficiency opportunities and utilized performance contracting. As of FY 2020, 82.7% of CF energy use has been evaluated and $0.4 million of performance contracts was awarded.

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