Untitled

Federal Energy Management Improvement Act of 1988

* Act of November 5, 1988 (P.L. 100-615, 102 Stat. 3185; 42 U.S.C. 8215-8259)

Federal Energy Management Improvements

Sec. 2. (a) In general.-Part 3 of title V of the National Energy Conservation Policy Act (42 U.S.C. 8251-8261) is amended to read as follows:

PART 3 - FEDERAL ENER-GY MANAGEMENT

Findings

Sec. 541. The Con-gress finds that-

(1) the Federal Government is the largest single energy consumer in the Nation;

(2) the cost of meeting the Federal Government's energy requirement is substantial;

(3) there are significant oppor-tunities in the Federal Government to conserve and make more efficient use of energy through improved operations and maintenance, the use of new energy efficient technolo-gies, and the application and achievement of energy efficient design and con-struction;

(4) Federal energy conserva-tion measures can be financed at little or no cost to the Federal Gov-ernment by using private investment capital made available through con-tracts authorized by title VIII of this Act; and

(5) an increase in energy effi-ciency by the Federal Government would benefit the Nation by reduc-ing the cost of government, reducing national dependence on foreign ener-gy resources, and demonstrating the benefits of greater energy effi-ciency to the Nation. (42 U.S.C. 8251)

Purpose

Sec. 542. It is the purpose of this part to promote the conservation and the efficient use of energy and water, and the use of renewable energy sources, by the Federal Gov-ernment. (42 U.S.C. 8252)

Energy Management Require-ments

Sec. 543. (a) Energy performance requirement for Federal buildings.-

(1) Subject to paragraph (2), each agency shall apply energy conservation measures to, and shall improve the design for the construction of, its Federal buildings so that the energy consumption per gross square foot of its Federal buildings in use during the fiscal year 1995 is at least 10 percent less than the energy consumption per gross square foot of its Federal buildings in use during the fiscal year 1985.

(2) An agency may exclude from the requirements of paragraph (1) any building, and the associated energy consumption and gross square footage, in which energy intensive activities are carried out. Each agen-cy shall identify and list in each report made under section 8258(a) of this title the buildings designated by it for such exclusion.

(b) Energy management require-ment for Federal agencies.-

(1) Not later than January 1, 2005, each agency shall, to the maxi-mum extend practicable, install in Federal buildings owned by the United States all energy and water conservation measures with payback periods of less than 10 years, as determined by using the methods and procedures developed pursuant to section 8254 of this title.

(2) The Secretary may waive the requirements of this subsection for any agency for such periods as the Secretary may determine if the Secretary finds that the agency is taking all practicable steps to meet the requirements and that the re-quire-ments of this subsection will pose an unacceptable burden upon the agency. If the Secretary waives the requirements of this subsection, the Secretary shall notify the Con-gress promptly in writing with an explana-tion and a justification of the reasons for such waiver.

(3) This subsection shall not apply to an agency's facilities that generate or transmit electric energy or to the uranium enrichment facili-ties operated by the Department of Energy.

(4) An agency may participate in the Environmental Protection Agency's "Green Lights" program for purposes of receiving technical assistance in complying with the requirements of this section.

(1) An agency may exclude, from the energy consumption re-quire-ments for the year 2000 estab-lished under subsection (a) of this section and the requirements of sub-section (b)(1) of this section, any Federal buildings or collection of Federal buildings, and the associated energy consumption and gross square footage, if the head of such agency finds that compliance with such requirements would be imprac-tical. A finding of impracticability shall be based on the energy inten-siveness of activities carried out in such Federal buildings or collection of Federal buildings, the type and amount of energy consumed, the technical feasi-bility of making the desired changes, and, in the cases of the Departments of Defense and Energy, the unique character of certain facilities operate by such Departments.

(2) Each agency shall identify and list, in each report made under section 8258a of this title, the Federal buildings designated by it for such exclusion. The Secretary shall review such findings for consistency with the impracticability standards set forth in paragraph (1), and may within 90 days after receipt of the findings, reverse a finding of im-practicability. In the case of any such reversal, the agency shall com-ply with the energy consumption requirements for the building con-cerned.

(d) Implementation steps.-The Secretary shall consult with the Sec-retary of Defense and the Ad-minis-trator of General Services in devel-oping guidelines for the imple-men-ta-tion of this part. To meet the re-quirements of this section, each agency shall-

(1) prepare and submit to the Secretary, not later than December 31, 1993, a plan describing how the agency intends to meet such require-ments, including how it will-

(A) designate personnel primarily responsible for achieving such requirements;

(B) identify high priority projects through calculation of pay-back periods;

(C) take maximum advan-tage of contracts authorized under subchapter VII of this chapter, of financial incentives and other servic-es provided by utilities for efficien-cy investment, and of other forms of financing to reduce the direct costs to the Government; and

(D) otherwise implement this part;

(2) perform energy surveys of its Federal buildings to the extent necessary and update such surveys as needed, incorporating any rele-vant information obtained from the survey conducted pursuant to sec-tion 8258b of this title;

(3) using such surveys, deter-mine the cost and payback period of energy and water conservation mea-sures likely to achieve the require-ments of this section;

(4) install energy and water conservation measures that will achieve the requirements of this section through the methods and procedures established pursuant to section 8254 of this title; and

(5) ensure that the operation and maintenance procedures applied under this section are continued. (42 U.S.C. 8253)

Establishment and Use of Life Cycle Cost Methods and Pro-ce-dures

Sec. 544. (a) Establishment of life cycle cost methods and proce-dures.-The Secretary, in con-sulta-tion with the Director of the Of-fice of Manage-ment and Budget, the Secretary of Defense, the Direc-tor of the Nation-al Institutes of Stan-dards and Tech-nology, and the Administrator of the Gener-al Servic-es Administration, shall-

(1) establish practical and effective present value methods for estimating and comparing life cycle costs for Federal buildings, using the sum of all capital and operating expenses associated with the energy system of the building involved over the expected life of such system or during a period of 25 years, which-ever is shorter, and using average fuel costs and a discount rate deter-mined by the Secretary; and

(2) develop and prescribe the procedures to be followed in apply-ing and implementing the methods so established.

(b) Use of life cycle cost methods and proce-dures.-

(1) The design of new Federal buildings, and the application of energy conservation measures to existing Federal buildings, shall be made using life cycle cost methods and procedures established under subsection (a).

(2) In leasing buildings for its own use or that of another agency, each agency shall, after January 1, 1994, fully consider the efficiency of all potential building space at the time of renewing or entering into a new lease

(c) Use in non-Federal struc-tures.- The Secretary shall make available information to the public on the use of life cycle cost meth-ods in the construction of buildings, structures, and facilities in all seg-ments of the economy. (42 U.S.C. 8254)

Budget Treatment for Energy Con-ser-va-tion Measures

Sec. 545. The President shall transmit to the Congress, along with each bud-get that is submitted to the Congress under section 1105 of Title 31, a statement of the amount of appropriations requested in such budget, if any, on an individual agency basis, for-

(1) electric and other energy costs to be incurred in operating and maintaining agency facilities; and

(2) compliance with the provi-sions of this part, the Energy Policy and Conservation Act (42 U.S.C. 6201 et seq.), and all applicable Executive orders, including Execu-tive Order 12003 (42 U.S.C. 6201 note) and Executive Order 12759 (56 Fed. Reg. 16257) (42 U.S.C. 8255)

Incentives for Agen-cies

Sec. 546. (a) Contracts.-

(1) Each agency shall establish a program of incentives for conserv-ing, and otherwise making more efficient use of, energy as a result of entering into contracts under sub-chapter VII of this chapter.

(2) The Secretary shall, not later than 18 months after October 24, 1992, and after consultation with the Director of the Office of Man-agement and Budget, the Secretary of Defense, and the Administrator of General Services, develop appropri-ate procedures and methods for use by agencies to implement the incen-tives referred to in paragraph (1).

(b) Federal Energy Efficiency Fund.-

(1) The Secretary shall estab-lish a Federal Energy Efficiency Fund to provide grants to agencies to assist them in meeting the requirements of section 8253 of this title.

(2) Not later than June 30, 1993, the Secretary shall issue guidelines to be followed by agen-cies submitting proposals for such grants. all agencies shall be eligible to submit proposals for grants under the Fund.

(3) The Secretary shall award grants from the Fund after a com-petitive assessment of the technical and economic effectiveness of each agency proposal. The Secretary shall consider the following factors in determining whether to provide fund-ing under this subsection:

(A) The cost-effectiveness of the project.

(B) The amount of energy and cost savings anticipated to the Federal Government.

(D) The extent that a pro-posal leverages financing from other non-Federal sources.

(E) Any other factor which the Secretary determines will result in the greatest amount of energy and cost savings to the Federal Govern-ment.

(4) There are authorized to be appropriated, to remain available to be expended, to carry out this sub-section not more than $10,000,000 for fiscal year 1994, $50,000,000 for fiscal year 1995, and such sums as may be necessary for fiscal years thereafter.

(1) Agencies are authorized and encouraged to participate in pro-grams to increase energy effi-ciency and for water conservation or the management of electricity de-mand conducted by gas, water, or electric utilities and generally avail-able to customers of such utilities.

(2) Each agency may accept any financial incentive, goods, or services generally available from any such utility, to increase energy effi-ciency or to conserve water or man-age electricity demand.

(3) Each agency is encouraged to enter into negotiations with elec-tric, water, and gas utilities to de-sign cost-effective demand manage-ment and conservation incentive programs to address the unique needs of facili-ties utilized by such agency.

(4) If an agency satisfies the criteria which generally apply to other customers of a utility incentive program, such agency may not be denied collection of rebates or other incentives.

(5)(A) An amount equal to fifty percent of the energy and water cost savings realized by an agency (other than the Department of De-fense) with respect to funds appro-priated for any fiscal year beginning

after fiscal year 1992 (including financial benefits resulting from energy savings performance contracts under subchapter VII of this chapter and utility energy efficiency rebates) shall, subject to appropriation, remain available for expenditure by such agency for additional energy efficiency measures which may include related employee incentive programs, particularly at those facilities at which energy savings were achieved.

(B) Agencies shall establish a fund and maintain strict financial accounting and controls for savings realized and expenditures made un-der this subsection. Records main-tained pursuant to this subparagraph shall be made available for public inspection upon request.

(d) Financial incentive program for facility energy managers.-

(1) The Secretary shall, in consultation with the Task Force established pursuant to section 8257 of this title, establish a financial bonus program to reward, with funds made available for such pur-pose, outstanding Federal facility energy managers in agencies and the United States Postal Service.

(2) Not later than June 1, 1993, the Secretary shall issue pro-cedures for implementing and con-ducting the award program, includ-ing the criteria to be used in select-ing outstanding energy managers and contributors who have- (A) improved energy perfor-mance through increased energy efficiency;

(B) implemented proven energy efficiency and energy con-servation techniques, devices, equip-ment, or procedures;

(D) developed and imple-mented employee awareness pro-grams;

(E) succeeded in generating utility incentives, shared energy savings contracts, and other federal-ly approved performance based energy savings contracts;

(F) made successful efforts to fulfill compliance with energy reduction mandates, including the provisions of section 8253 of this title; and

(G) succeeded in the imple-mentation of the guidelines estab-lished under section 8262 of this title.

(3) There is authorized to be appropriated to carry out this sub-section not more than $250,000 for each of the fiscal years 1993, 1994, and 1995. (42 U.S.C. 8256)

Interagency Energy Management Task Force

Sec. 547. (a) In general.-To assist the interagency committee organized under section 7266 of this title to coordinate the activities of the Fed-eral Govern-ment in promot-ing ener-gy conservation and the efficient use of energy and in informing non-Federal entities of the Federal experience in energy conservation, the Secretary shall establish an Interagency Energy Management Task Force (hereafter in this section referred to as the "Task Force").

(b) Members.-The Task Force shall be composed of the chief energy managers of agencies represented on the interagency committee organized under section 7266 of this title.

(1) assess the progress of the various agencies in achieving energy savings;

(2) collect and disseminate information to agencies, States, local govern-ments, and the public on effective survey techniques, innova-tive approaches to the efficient use of energy, incentive programs devel-oped under section 8256 of this title, innovative contracting methods de-veloped under subchapter VII of this chapter, the use of cogeneration facilities and renewable resources, and other technologies that promote the conservation and efficient use of energy;

(3) coordinate energy surveys conducted by the agencies;

(4) develop options for use in conserving energy;

(5) report to the committee organized under section 7266 of this title; and

(6) review, from time to time as may be necessary, the regulations relating to building temperature settings to determine whether changes in such regulations would be appropriate to assist in meeting the goals specified in section 8253 of this title. (42 U.S.C. 8257)

Reports

Sec. 548. (a) Reports to the Secretary.-Each agency shall transmit a report to the Secretary, at times specified by the Secretary but at least annually, with complete information on its activities under this part, including information on-

(1) the agency's progress in achieving the goals established by section 8253 of this title; and

(2) the procedures being used by the agency pursuant to section 8256(a)(2) of this title, the number of contracts entered into by such agency under subchapter VII of this chapter, the energy and cost savings that have resulted from such con-tracts, the use of such cost savings under section 8256(c) of this title, and any problem encountered in entering into such contracts and otherwise implement-ing section 8256 of this title.

(b) Reports to Congress.-The Secretary shall report not later than April 2 of each year, with respect to each fiscal year beginning after No-vember 5, 1988, to the Congress-

(1) on all activities carried out under this part and on the progress made toward achievement of the objectives of this part, including

(A) a copy of the list of the exclusions made under section 8253(a)(2) and 8253(c)(3) of this title; and

(B) a statement detailing the amount of funds awarded to each agency under section 8256(b) of this title, the energy and water conserva-tion measures installed with such funds, the projected energy and water savings to be realized from installed measures, and, for each installed measure for which the projected energy and water savings reported in the previous year were not realized, the percentage of such projected savings that was not real-ized, the reasons such savings were not real-ized, and proposals for, and projects costs of, achieving such projected savings in the future;

(2) the number of contracts entered into by all agencies under subchapter VII of this chapter, the difficulties (if any) encountered in attempting to enter into such con-tracts, and proposed solutions to those difficulties; and

(3) the extent and nature of interagency exchange of information concern-ing the conservation and efficient utilization of energy.

(1) conduct a study and evalu-ate legal, institutional, and other constraints to connecting buildings owned or leased by the Federal Gov-ernment to district heating and dis-trict cooling systems; and

(2) not later than 18 months after October 24, 1992, transmit to the Congress a report containing the findings and conclusions of such study, including recommendations for the development of streamlined processes for the consideration of connecting buildings owned or leased by the Federal Government to district heating and cooling sys-tems. (42 U.S.C. 8258)

Definitions

Sec. 549. For the purposes of this part-

(1) the term "agency" has the meaning given it in section 551(1) of Title 5;

(2) the term "construction" means new construction or substan-tial rehabilita-tion of existing struc-tures;

(3) the term "cogeneration facilities" has the same meaning given such term in section 796(18)(A) of Title 16;

(4) the term "energy conserva-tion measures" means measures that are applied to a Federal building that improve energy efficiency and are life cycle cost effective and that involve energy conservation, co-generation facilities, renewable energy sources, improvements in operations and maintenance efficiencies, or retrofit activities;

(5) the term "energy survey" means a procedure used to determine energy and cost savings likely to result from the use of appropriate energy related maintenance and operating procedures and modifications, including the purchase and installation of particular energy-related equipment and the use of renewable energy sources;

(6) the term "Federal building" means any building, structure, or facility, or part thereof, including the associated energy consuming support systems, which is construct-ed, reno-vated, leased, or purchased in whole or in part for use by the Federal Government and which consumes energy; such term also means a collection of such build-ings, struc-tures, or facilities and the energy consuming support systems for such collection;

(7) the term "life cycle cost" means the total costs of owning, operating, and maintaining a build-ing over its useful life (including such costs as fuel, energy, labor, and replacement components) deter-mined on the basis of a systematic evalua-tion and comparison of alter-native building systems, except that in the case of leased buildings, the life cycle costs shall be calculated over the effective remaining term of the lease;

(8) the term "renewable energy sources" includes, but is not limited to, sources such as agriculture and urban waste, geothermal energy, solar energy, and wind energy; and

(9) the term "Secretary" means the Secretary of Energy. (42 U.S.C. 8259)