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Transportation and Air Quality

National Vehicle and Fuel Emissions Laboratory (NVFEL) Energy Savings Performance Contract (ESPC)

I. Background

ESPC is a congressional mandate which authorized federal agencies to contract with private companies to finance, install and operate building systems which will improve energy efficiency. No up-front federal funding is required. The companies are reimbursed exclusively from measured energy savings in future years up to a prescribed limit. The National Vehicle and Fuel Emissions Laboratory is the EPA's first ESPC Contract, with contract terms that run through the year 2022.


  • Meet or exceed federal energy reduction mandates defined in the Energy Policy Act and Executive Order 12902 (20% by 2000, 30% by 2005 and 35% by 2010).
  • Reduce source (powerplant), and site (Facility) emissions.
  • Optimize energy cost savings.
  • Restore obsolete and aging (30 year old) infrastructure.
  • Eliminate CFC refrigerants.
  • Minimize energy waste.
  • Maximize use of waste energy streams.

III. Impact of ESPC on NVFEL - This contract will result in the replacement of the entire HVAC infrastructure ($10.6M expenditure). This includes:

  • Replacing the entire HVAC system with advanced high-efficienty system.
  • Adding Digital Control System to operate Energy Conservation System.
  • Installing 200kW Fuel Cell to generate 1/3 of own electricity.

IV. NVFEL Achieved Annual Energy, Water and Pollution Reductions

  • Electricity: 52% reduction
  • Water: 81% reduction
  • CO2: 57% reduction
  • SO2: 53% reduction, from 203,000 to 97,000 pounds
  • NOx: 54% reduction, from 74,000 to 35,000 pounds

V. Status of the ESPC Effort

  • The system is now fully installed and operating.
  • NVFEL expects to exceed all its energy and pollution reduction goals.
  • NVFEL achieved an energy savings and pollution reduction of greater than 50% of baseline levels.
  • FY01 utility costs were projected to be $800,000.
  • Without ESPC, FY01 utility costs would have been about $2,000,000.
  • Current annual energy and maintenance savings were $1,399,837, which is $111,967 greater than the contract guaranteed savings.

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