Monday, September 21, 2009

Federal Energy Saving Performance Contracts Come Under Scrutiny

Taxpayers spent $850,000 for "energy savings" at four federal government buildings in the Energy Department's Oak Ridge, Tennessee research complex during the four years since the buildings were demolished, another $650,000 over six years for energy conservation at a high efficiency laundry facility in Texas which was closed and standing idle, and $11.5 million more than necessary to various local utility companies where government bureaucrats and contracting officials failed to use expensive mechanical and software systems installed to automatically turn down the heat in government office buildings at night, according to findings in a recently released Energy Department inspector general audit report.

the American Recovery and Reinvestment Act appropriated nearly $17 billion to the Energy Department's Office of Energy Efficiency and Renewable Energy, which has issued 16 "Super ESPC" agreements which could cost taxpayers as much as $80 billion over the next 25 years. Under these agreements, contractors continue receiving energy efficiency performance bonuses long after construction is complete, if building performance continues to meet the specified energy standards. The audit report notes that lack of oversight and clear accounting for ESPC contracts makes it hard to figure out whether the concept really saves any money for taxpayers over the long haul.
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