Chevron Energy Solutions Awarded U.S. DOE Contract for Energy Efficiency and Renewable Power Projects
Master contract for energy projects at U.S. federal agency facilities nationally and internationally
SAN RAMON, Dec 19, 2008 - Chevron Energy Solutions (CES), a unit of Chevron Corporation (NYSE: CVX), has been awarded a master contract by the U.S. Department of Energy (DOE) to work with federal agencies to reduce energy and water consumption and increase the use of renewable energy at agency facilities.
The Energy Savings Performance Contracts (ESPC), awarded to 16 qualified energy contractors, are intended to ensure quality design, implementation, operation and maintenance services for federal agency energy projects.
Each of these new DOE contracts, which have a minimum five year term with the option to increase up to a total of 11 years, provides for a maximum individual contract value of $5 billion over the life of the contract. Federal agencies are allowed to use these contracts for federal facility energy efficiency projects, both nationally and internationally.
The Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007 require federal agencies to achieve a 30 percent reduction in energy intensity and a 16 percent reduction in water use by 2015. They also require an increase in renewable energy use by federal facilities to 7.5 percent of electricity needs by 2013. The new DOE contracts are intended to help federal agencies achieve these mandated targets by working in partnership with the private sector.
The DOE contract is part of the ESPC program authorized by Congress, which allows energy efficiency projects at federal agencies to be funded by guaranteed energy cost savings and, therefore, requiring no capital expenditures up front. Energy contractors, such as CES, obtain financing to fund energy efficiency upgrades and renewable power systems and are repaid for these improvements by the agencies over a period of years through the savings generated by the project.
"We are extremely pleased to be awarded one of the Department of Energy's new master energy performance contracts," said Jim Davis, president of Chevron Energy Solutions. "This contract is expected to allow CES to expand our partnership with federal agencies to help them become more energy efficient, use more renewable energy and achieve taxpayer savings."
Chevron Corporation is one of the world's leading integrated energy companies, with subsidiaries that conduct business across the globe. The company's success is driven by the ingenuity and commitment of approximately 59,000 employees who operate across the energy spectrum. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops and commercializes the energy resources of the future, including biofuels and other renewables. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.
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Some of the items discussed in this press release are forward-looking statements about the activities of Chevron Energy Solutions, a unit of Chevron Corporation. Words such as "anticipates," "expects," "projects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates" and similar expressions are intended to identify such forward- looking statements. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Updated: December 2008