We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Energy Cost Savings: What It Means for Federal Energy Management
Definition & Meaning
Energy cost savings refer to the reduction in energy expenses and related operational costs achieved through specific actions or improvements in federally owned buildings or facilities. These savings can result from:
Leasing or purchasing new operating equipment.
Implementing improvements or changes in operation and maintenance practices.
Utilizing technical services to enhance energy efficiency.
Increasing the efficient use of existing energy sources through methods like cogeneration or heat recovery.
Table of content
Legal Use & context
The term "energy cost savings" is primarily used in the context of energy savings performance contracting, a legal framework that allows federal agencies to enter into contracts aimed at improving energy efficiency. This term is relevant in areas such as:
Public contract law
Energy regulation
Environmental law
Users can often manage related forms and procedures themselves using legal templates provided by platforms like US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A federal agency leases energy-efficient HVAC systems for a government building, resulting in lower energy bills and reduced maintenance costs.
Example 2: A facility implements a cogeneration system that captures waste heat for additional energy use, leading to significant savings on energy costs. (hypothetical example)
Relevant laws & statutes
Key legislation that governs energy cost savings includes:
10 CFR 436.31 - Defines energy cost savings in the context of federal energy management.
Energy Policy Act of 1992 - Encourages energy efficiency improvements in federal buildings.
State-by-state differences
Examples of state differences (not exhaustive):
State
Energy Cost Savings Programs
California
Strong emphasis on renewable energy and efficiency programs.
Texas
Focus on deregulated energy markets and energy efficiency incentives.
New York
Comprehensive energy savings programs with state funding available.
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Energy efficiency
Using less energy to provide the same service.
Focuses on methods to reduce energy consumption without necessarily involving cost savings.
Energy savings performance contract
A contract that guarantees energy savings from improvements.
Specifically relates to contractual agreements rather than general cost savings.
Common misunderstandings
What to do if this term applies to you
If you are involved in a project that may yield energy cost savings, consider the following steps:
Assess your current energy usage and expenses.
Explore options for energy-efficient upgrades or services.
Consult with professionals to evaluate potential savings.
Utilize US Legal Forms for templates related to energy savings performance contracts.
For complex situations, seeking professional legal advice is recommended.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.