Title 42The Public Health and WelfareRelease 119-73

§8287c Definitions

Title 42 › Chapter CHAPTER 91— - NATIONAL ENERGY CONSERVATION POLICY › Subchapter SUBCHAPTER VII— - ENERGY SAVINGS PERFORMANCE CONTRACTS › § 8287c

Last updated Apr 6, 2026|Official source

Summary

Defines key words used for federal energy and water projects. It explains who counts as a federal agency, what counts as energy savings, what an energy savings contract is, and what an energy or water conservation measure is. A federal agency is any U.S. government authority, whether or not another agency reviews it. Energy savings means lower costs for energy, water, or wastewater treatment from a contract baseline. It covers savings from buying or leasing equipment, better operation and maintenance, technical services, using cogeneration or heat recovery to make existing energy use more efficient (not for cogeneration that serves non‑Federal buildings), better water use, selling extra on‑site renewable or thermal energy when allowed by law, using incentives or credits, and any revenue from reduced use or better recycling. An energy savings contract is an agreement to design, buy, install, test, and, if needed, operate, maintain, and repair one or more energy or water measures at one or more locations; public buildings must follow the approval steps in section 3307 of title 40. An energy or water conservation measure is either an energy measure (see section 8259) or a life‑cycle cost‑effective water measure that improves efficiency through conservation, recycling, reuse, treatment, O&M improvements, retrofits, or similar activities, excluding work at Federal hydroelectric facilities.

Full Legal Text

Title 42, §8287c

The Public Health and Welfare — Source: USLM XML via OLRC

For purposes of this subchapter, the following definitions apply:
(1)The term “Federal agency” means each authority of the Government of the United States, whether or not it is within or subject to review by another agency.
(2)The term “energy savings” means—
(A)a reduction in the cost of energy, water, or wastewater treatment, from a base cost established through a methodology set forth in the contract, used in an existing Federal building (as defined in section 8259 of this title) as a result of—
(i)the lease or purchase of operating equipment, improvements, altered operation and maintenance, or technical services;
(ii)the increased efficient use of existing energy sources by cogeneration or heat recovery, excluding any cogeneration process for other than a Federal building (as defined in section 8259 of this title); or
(iii)the increased efficient use of existing water sources in either interior or exterior applications;
(B)the increased efficient use of an existing energy source by cogeneration or heat recovery;
(C)if otherwise authorized by Federal or State law (including regulations), the sale or transfer of electrical or thermal energy generated on-site from renewable energy sources or cogeneration, but in excess of Federal needs, to utilities or non-Federal energy users;
(D)the increased efficient use of existing water sources in interior or exterior applications;
(E)the use, sale, or transfer of any energy and water incentive, rebate, grid services revenue, or credit (including a renewable energy certificate); and
(F)any revenue generated from a reduction in energy or water use, more efficient waste recycling, or additional energy generated from more efficient equipment.
(3)The terms “energy savings contract” and “energy savings performance contract” mean a contract that provides for the performance of services for the design, acquisition, installation, testing, and, where appropriate, operation, maintenance, and repair, of an identified energy or water conservation measure or series of measures at 1 or more locations. Such contracts shall, with respect to an agency facility that is a public building (as such term is defined in section 3301 of title 40), be in compliance with the prospectus requirements and procedures of section 3307 of title 40.
(4)The term “energy or water conservation measure” means—
(A)an energy conservation measure, as defined in section 8259 of this title; or
(B)a water conservation measure that improves the efficiency of water use, is life-cycle cost-effective, and involves water conservation, water recycling or reuse, more efficient treatment of wastewater or stormwater, improvements in operation or maintenance efficiencies, retrofit activities, or other related activities, not at a Federal hydroelectric facility.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2020—Par. (2)(A). Pub. L. 116–260, § 1002(f)(1), substituted “Federal building (as defined in section 8259 of this title)” for “federally owned building or buildings or other federally owned facilities” in introductory provisions and in cl. (ii). Par. (2)(E), (F). Pub. L. 116–260, § 1002(f)(2)–(4), added subpars. (E) and (F). 2007—Par. (2). Pub. L. 110–140 substituted “means—” for “means” in introductory provisions, inserted subpar. (A) designation before “a reduction”, redesignated former subpars. (A) to (C) as cls. (i) to (iii) of subpar. (A), respectively, and added subpars. (B) to (D). 2004—Par. (2). Pub. L. 108–375, § 1090(c), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The term ‘energy savings’ means a reduction in the cost of energy, from a base cost established through a methodology set forth in the contract, utilized in an existing federally owned building or buildings or other federally owned facilities as a result of— “(A) the lease or purchase of operating equipment, improvements, altered operation and maintenance, or technical services; or “(B) the increased efficient use of existing energy sources by cogeneration or heat recovery, excluding any cogeneration process for other than a federally owned building or buildings or other federally owned facilities.” Par. (3). Pub. L. 108–375, § 1090(d), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “The terms ‘energy savings contract’ and ‘energy savings performance contract’ mean a contract which provides for the performance of services for the design, acquisition, installation, testing, operation, and, where appropriate, maintenance and repair, of an identified energy conservation measure or series of measures at one or more locations. Such contracts— “(A) may provide for appropriate software licensing agreements; and “(B) shall, with respect to an agency facility that is a public building as such term is defined in section 13(1) of the Public Buildings Act of 1959 (40 U.S.C. 612(1)), be in compliance with the prospectus requirements and procedures of section 7 of the Public Buildings Act of 1959 (40 U.S.C. 606).” Par. (4). Pub. L. 108–375, § 1090(e), amended par. (4) generally. Prior to amendment, par. (4) read as follows: “The term ‘energy conservation measures’ has the meaning given such term in section 8259(4) of this title.” 1998—Par. (1). Pub. L. 105–388 amended par. (1) generally. Prior to amendment, par. (1) read as follows: “The term ‘Federal agency’ means an agency defined in section 551(1) of title 5.” 1992—Pub. L. 102–486, § 155(b)(1), substituted “subchapter, the following definitions apply:” for “subchapter—” in introductory provisions. Par. (1). Pub. L. 102–486, § 155(b)(2), substituted “The” for “the” and a period for “, and” at end. Par. (2). Pub. L. 102–486, § 155(b)(3), substituted “The term” for “the term”. Pars. (3), (4). Pub. L. 102–486, § 155(b)(4), added pars. (3) and (4).

Statutory Notes and Related Subsidiaries

Effective Date

of 2007 AmendmentAmendment by Pub. L. 110–140 effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of Pub. L. 110–140, set out as an

Effective Date

note under section 1824 of Title 2, The Congress.

Reference

Citations & Metadata

Citation

42 U.S.C. § 8287c

Title 42The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73