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The ESCO guarantees that the improvements will generate energy cost savings sufficient to pay for the project over the term of the contract. After the contract ends, all additional cost savings accrue to the agency. [2] The savings must be guaranteed and the Federal agencies may enter into a multiyear contract for a period not to exceed 25 years.
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The Energy Savings and Industrial Competitiveness Act of 2014 (ESIC; S. 2262) is a bill that focused on improving energy efficiency in the United States by reducing homeowners' energy use, improving the energy efficiency provisions of building codes, and making other changes.
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The start of the energy services business can be attributed to the energy crisis of the late 1970s, as entrepreneurs developed ways to combat the rise in energy costs. One of the earliest examples was a company in Texas, Time Energy, which introduced a device to automate the switching of lights and other equipment to regulate energy use.
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