Designing State Energy Savings Performance Contracting (ESPC) Programs to Reduce Energy Costs for K-12 Schools

This NASEO Program in a Box provides guidance for State and Territory Energy Offices (State Energy Offices) to develop or revamp Energy Savings Performance Contract (ESPC) programs aimed at helping K-12 schools make needed energy improvements to their facilities. ESPC is a form of public-private financing in which energy efficiency and other utility improvements to public buildings are paid for through a guarantee of energy, water, and other utility cost savings resulting from energy efficient technology upgrades.

This resource is a practical, state-level playbook for standing up or improving an ESPC program that lays out the full lifecycle a state (or district navigating a state program) needs to understand to stand up an ESPC: designing program scope and scale, developing the templates and contracts needed to run it, implementing outreach and staffing, and reporting on results. Throughout, it draws on examples from Arkansas, New Mexico, and Virginia, giving readers concrete points of reference rather than abstract guidance alone.