Another provision of the act provides permanent
authorization for federal agencies to use energy savings
performance contracts, which enable agencies to acquire
energy-efficient equipment, such as new windows,
lighting, and heating, and pay for it with money saved
by reduced utility costs.
A Congressional Budget Office analysis said that under
current law, agencies can use ESPCs to acquire new
equipment and pay for it over 25 years without an
appropriation for the full amount of the purchase
price, and recommended that agency budgets “reflect
that commitment as new obligations at the time that
an ESPC is signed.”
It also said the authority to enter into these contracts
without budget authority for the full amount of the
purchase price should constitute direct spending.
