FAR and DFARS › FAR Part 23: Environment, Sustainable Acquisition, and Material Safety › Subpart 23.2
FAR 23.202 Policy.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section states that agencies should use energy savings performance contracts (ESPCs) when they are life-cycle cost-effective to cut energy use and cost. Under an ESPC, an agency can contract with an energy service company for up to 25 years to improve energy efficiency at no direct capital cost to the Treasury, with the company paid from a share of the resulting cost savings. It also tells contracting officers which procedures and terms to use when soliciting and awarding an ESPC.
Applies to: Agencies and contracting officers using energy savings performance contracts
What it requires
- Use the procedures, selection method, and terms and conditions in 10 CFR part 436, subpart B to solicit and award an ESPC
Key terms: energy savings performance contract (ESPC) · energy service company · life-cycle cost-effective · Qualified List · unsolicited proposals
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) Agencies should make maximum use of the authority provided in the National Energy Conservation Policy Act (42 U.S.C. 8287) to use an energy savings performance contract (ESPC), when life-cycle cost-effective to reduce energy use and cost in the agency's facilities and operations.
(b)(1) Under an ESPC, an agency can contract with an energy service company for a period not to exceed 25 years to improve energy efficiency in one or more agency facilities at no direct capital cost to the United States Treasury. The energy service company finances the capital costs of implementing energy conservation measures and receives, in return, a contractually determined share of the cost savings that result.
(2) Except as provided in 10 CFR 436.34, ESPC's are subject to subpart 17.1.
(c) To solicit and award an ESPC, the contracting officer—
(1) Must use the procedures, selection method, and terms and conditions provided in 10 CFR part 436, subpart B; and
(2) May use the “Qualified List” of energy service companies established by the Department of Energy and other agencies.
(d) For procedures related to unsolicited proposals for energy savings performance contracts, see 15.603(e).
(e) For more information see https://energy.gov/eere/femp/energy-savings-performance-contracts-federal-agencies.
Sections it refers to
- 15.603 General.
← 23.201 Authorities. · 23.300 Scope of subpart. →
Rule changes for FAR Part 23
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · final rule 2025-08-27 · effective 2025-10-01
- Federal Acquisition Regulation: Disclosure of Greenhouse Gas Emissions and Climate-Related Financial Risk ↗ · proposed 2025-01-13
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · proposed 2024-11-29 · comments due 2025-01-28
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2024-07-30 · effective 2024-08-29
- Federal Acquisition Regulation: Sustainable Procurement ↗ · final rule 2024-04-22 · effective 2024-05-22
- Federal Acquisition Regulation: Improving Consistency Between Procurement and Nonprocurement Procedures on Suspension and Debarment ↗ · proposed 2024-01-09 · comments due 2024-03-11
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.