Washington, D.C. — Director of the Mint Philip N. Diehl today joined Rip Jackson, Vice President of Government Markets for Honeywell Inc., for the signing of an Energy Performance Savings Contract (ESPC) for the Philadelphia Mint.
“We are delighted to enter into this agreement, which we believe to be the first of its kind to encompass major multiple energy and water conservation measures within the Federal government,” said Director Diehl. “We have an ongoing commitment to operational efficiency, to promote best–in–business practices, to save the taxpayer money, and to fulfill our role as an exemplary corporate citizen in terms of our environmental responsibilities.”
Under an ESCP contract, the contractor agrees to incur the cost of implementing the project — from performing an energy audit and designing the project to acquiring and installing equipment, training personnel and maintaining and operating equipment — with the investment recovered directly through cost savings guaranteed in the contract.
The $3.4 million contract between the Mint and Honeywell guarantees ongoing energy cost savings of at least $218,000 per year at the Philadelphia Mint. The energy savings will continue thereafter for the life of the equipment which is expected to be 20–25 years.
The major features of the contract include the installation of high efficiency air chillers to replace chillers using ozone–depleting refrigerant; installation of high efficiency lighting fixtures; installation of a new air compressor and improvements to the Mint’s compressed air system; and the replacement of plumbing and bathroom fixtures with low–flow fixtures to conserve water.
The contract falls under the aegis of Public Law 102–486, the Energy Policy Act of 1992; executive orders issued by President Clinton on October 20, 1993 and March 10, 1994 (Executive Order 12873, “Federal Acquisition, Recycling and Waste Prevention,” and Executive Order 12902, “Energy Efficiency and Water Conservation at Federal Facilities”), and energy savings performance contract guidelines developed by the Department of Energy Federal Energy Management Program (FEMP).