U.S. Department of Energy - Energy Efficiency and Renewable Energy

Federal Energy Management Program

Interagency Task Force - 08/05 Memo of Record

SYNOPSIS
INTERAGENCY ENERGY MANAGEMENT TASK FORCE MEETING

Department of Energy, Room 4A-104
1000 Independence Ave., SW
August 4, 2005

Announcements/Decisions Made

• Rick Khan, of the office of the Architect of the Capitol, has been selected as the Program Manager for FEMP and will begin Monday, August 8, 2005.
• Energy 2005 will be held in Long Beach, California, on August 14–17. For more information, visit the Energy 2005 Web site.
• The 2005 combined Presidential and Federal awards ceremony is scheduled for October 27, 2005 at the U.S. Department of State Headquarters.
• A FEMP program peer review will be held September 20-21, 2005. Task Force members or other interested agency representatives are invited to attend. Contact Rick Klimkos for more information, at (202) 586-8287.

Action Items

• Agencies should consider participating in EPA's ENERGY STAR Challenge initiative and report to FEMP so that FEMP can gauge the overall level of interest from agencies.
• Task Force members interested in participating in the O&M benchmarking initiative should contact Ab Ream, at 202-586-7230.
• Ab Ream will send the charter for the O&M benchmarking initiative group to the Task Force Members.
• Task Force members interested in participating in the federal ESPC Steering Committee should contact Tatiana Strajnic, 202-586-9230.
• Task Force members interested in serving on a working group to develop the guidance documents in support of the provisions of the new energy legislation should contact Rick Klimkos, FEMP, 202-586-8287.

Schedule

The next Interagency Energy Management Task Force Meeting will be held on Wednesday, November 2, 2005.

MEMO OF RECORD
Interagency Energy Management Task Force Meeting
Department of Energy, Room 4A-104
1000 Independence Ave.,SW
August 4, 2005
9:00 a.m. - 12:00 p.m.

Introductions

Rick Klimkos, Department of Energy (DOE), Federal Energy Management Program (FEMP) opened the meeting by welcoming everyone in attendance and requested that everyone introduce themselves. The first part of the meeting was for Task Force members only. Pat Hoffman, Acting Program Manager, FEMP, announced that Rick Khan, of the Architect of the Capitol, has been selected as the Program Manager for FEMP and will begin Monday, August 8, 2005.

New National ENERGY STAR® Building Challenge Initiative

Jean Lupinacci, Environmental Protection Agency (EPA), gave a presentation on the ENERGY STAR Challenge, which encourages building owners to reduce energy use by at least 10 percent. The program promotes determining and tracking energy use (using EPA's performance rating system if possible), establishing efficiency improvement goals, and improving building energy consumption. The involvement of federal agencies is an opportunity to demonstrate leadership by example. Because the federal sector has many unique facility types it does not have a lot of experience using the performance rating system. The program features a campaign to recognize success through press releases and other forms of outreach, to add value to the energy reduction accomplishments. The ENERGY STAR designation is given to buildings that achieve a rating of 75 or above. States, state-based organizations, and trade associations are current participants in the challenge. Participants have agreed to implement energy-saving actions, including training and workshops, develop energy plans, and other activities. The Department of Veterans Affairs (VA) has had initial discussions about participating and would like to use the ENERGY STAR benchmarks for non-acute care hospital facilities.

A member of the group asked if any steps are being taken to address specialized equipment that is energy-intensive, such as healthcare equipment. Some agencies are concerned about meeting the energy reduction goals with increased usage of this type of equipment. Joan Glickman, FEMP, replied that FEMP has often provided energy efficiency purchasing recommendations for other kinds of specialized equipment that are fairly widely used in government and for which there is a range of products.

Ms. Hoffman requested members of the group to read the ENERGY STAR Challenge materials and determine their interest in participating. Based on the response from agencies, FEMP will decide on its course of action. One idea is to recognize those agencies that meet a 10 percent reduction in the course of achieving the goals of the new energy legislation.

Operations and Maintenance (O&M) Initiative

Ab Ream, FEMP, informed the group about a benchmarking initiative sponsored by FEMP to evaluate building performance based on best possible performance. Best possible performance is a measure of how well a building can perform using rigorous O&M practices and the most cost-effective technologies. Performance is grouped by building type, with a "Best in Class" type of rating. It may be a several year effort to develop the classification benchmarks. A group formed to discuss the initiative will meet on September 28. Those interested in participating in this group should contact Mr. Ream. Mr. Ream will email the group's charter to the Task Force members.

Strategic Energy Management Planning Exercise

Brian Connor, FEMP, updated the group on the strategic energy management planning exercise. He thanked Mr. Klimkos and Chris Tremper, McNeil Technologies, Inc., for their work on the task. Agencies were asked to anticipate their energy reductions in standard and industrial facilities in 2005 and 2010, what areas they will emphasize to meet the goals, and what FEMP services are most important to them to help them achieve their goals. Twelve agencies, accounting for 92.5 percent of total energy used by the government, participated in the exercise. Based on the results, it appears that agencies in total will likely fall short of the current goals in standard and energy intensive facilities. For the FY 2005 standard buildings goal of 30 percent reduction, a 27.2 percent decrease was projected. For the FY 2010 standard buildings goal of 35 percent reduction, a 33.8 percent decrease was projected. For industrial facilities, agencies anticipate a reduction of 14.2 percent in FY 2005, failing to meet the 20 percent goal, and a reduction of 21.2 percent in FY 2010, short of the 25 percent goal for that year. For the renewable energy goal, agencies anticipated using renewables for 3.0 percent of government electricity use, exceeding the current goal of 2.5 percent by 2005.

When measuring anticipated performance versus the goal in the new energy legislation of a 10 percent reduction in 2010 compared to a 2003 baseline, with standard and industrial/labs facilities combined, performance would exceed the goal. Agencies anticipate energy intensity of 102,090 Btu per square foot, a 10.8 percent reduction from the baseline of 114,496 Btu per square foot.

The sources of anticipated energy reductions between 2004 and 2010 are largely among three areas: renewable energy credits (37.2 percent of energy reductions); energy efficiency projects through alternative financing (34.4 percent); and energy efficiency projects through appropriations (25.9 percent). Agencies also ranked FEMP services that will help them to reach the goals. The top three most valuable programs were FEMP training and workshops, interagency energy management Task Force, and technical information.

Mr. Connor thanked the group for their responses. The information that agencies provided is input to FEMP that can be used as the program conducts its multiyear plan, peer review, and when making budget and resource decisions. Members of the group discussed the results of the exercise and the difficulty in obtaining accurate information. The low ranking for sustainable building design services could be a factor of less construction of new buildings. The exercise is good food for thought and should not be viewed as a survey with a statistically-significant sample.

ESPC Steering Committee

CDR Rob Tomiak, Department of Defense (DOD), briefed the group on the federal Energy Savings Performance Contract (ESPC) Steering Committee. The focus of the committee includes coordinating experiences among federal ESPC implementers, identifying improvements, developing best practices, and building consistency in implementation and administration of ESPCs. Agencies can work better together through this forum. He also reviewed the working groups currently in place and the proposed new working groups including their initiatives and strategies. One of the groups is working on a replication pilot project to assist renewable energy technologies overcome the barriers to getting them out on the market. Task Force members interested in participating in this group should contact Tatiana Strajnic, FEMP.

FEMP Future Funding

Ms. Hoffman reported to the group that it is expected that FEMP's funding for FY 2006 will be decreased or remain flat. In light of this, the program is encouraged to focus on its highest priorities. Priority issues may include examining the accuracy of the program's data and making improvements, preparation of guidance documents to meet the provisions of the requirements of the new energy legislation, and an examination of the metrics used within the program. The Office of Management and Budget (OMB) has questioned the value of FEMP's metric of number of federal employees trained. There will need to be some resolution over this. The program will also need to show progress on the General Accountability Office (GAO) recommendations with respect to the ESPC program.

Task Force members were invited to share the constraints they face in meeting the energy goals. Scott Howard, the Social Security Administration (SSA), said that turnover in the SSA contracting offices creates difficulties implementing ESPCs. CDR Tomiak suggested that smaller agencies without a lot of experience doing ESPCs can take advantage of DOD's contracting vehicles for this purpose. The General Services Administration (GSA) has been under pressure to develop business case decision papers for its ESPCs. GSA regions are also asking about the status of guidance documents. Within the VA, there is a focus on data, conducting training on data, and meeting the goal to audit 10 percent of all facilities yearly. Ms. Lupinacci added that within the ENERGY STAR program, there is a similar struggle with metrics. They have become focused on adopting whole building metrics. Arun Jhaveri, FEMP/Seattle, said that it is encouraging to hear that agencies have their own in-house staff to implement energy projects. FEMP needs to make sure that its programs are doing what is helping agencies. Ms. Hoffman added that FEMP has been challenged to provide a more cost-effective way of doing business.

With no additional items for discussion, the closed portion of the meeting was adjourned.

SECOND HALF OF TASK FORCE MEETING, OPEN TO NON-TASK FORCE MEMBERS

Welcome, Introductions

Mr. Klimkos and Ms. Hoffman welcomed the group and asked everyone in attendance to introduce themselves. Again, it was announced that Rick Khan, from the Architect of the Capitol, will be the new Program Manager of FEMP, beginning Monday, August 8, 2005.

Energy Legislation Update

Brian Connor, FEMP, distributed a summary of the major energy bill provisions affecting federal energy managers (PDF 128 KB, 9 pp). Download Adobe Reader. Highlights of each relevant section include:

• Section 102, "Energy Management Goals", stipulates the annual energy reduction goal of 2 percent from FY 2006 through FY 2015. Standard and industrial facilities are grouped together.
• Section 103, "Energy Use Measurement and Accounting", calls for electric metering in federal buildings by 2012.
• Section 104, "Procurement of Energy Efficient Products", requires GSA and DOD to list ENERGY STAR and FEMP-related products in federal catalogs.
• Section 105, "Energy Savings Performance Contracts", reauthorizes the ESPC program for 10 years. All restrictions included in the earlier House version of the reauthorization were dropped.
• Section 109, "Federal Building Performance Standards", calls for buildings to be designed to 30 percent below the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) standards or International Energy Code if life-cycle cost effective.
• Section 111, "Enhancing Energy Efficiency in Management of Federal Lands", instructs the Department of the Interior (DOI), the Department of Commerce, and the Department of Agriculture to enhance energy efficiency in the management of federal lands.
• Section 203, "Federal Purchase Requirement", requires three percent of electricity consumption be from renewable sources in FY 2007-FY 2009, increasing to five percent in FY 2010-FY 2012, and 7.5 percent in 2013 and after. Agencies receive double credit for renewables produced on-site or on federal lands and used on-site at a federal facility or produced on Indian land.
• Section 204, "Use of Photovoltaic Energy in Public Buildings", requires GSA to establish a photovoltaic energy commercialization program in federal buildings and install 20,000 solar energy systems in federal buildings by 2010.
• Section 207, "Installation of Photovoltaic System", authorizes funds for GSA to install a solar wall at DOE's Forrestal Building.

Mark Wagner, Johnson Controls, added that there were two additional federal energy management provisions at the end of the legislation; one requiring DOI and the Army to conduct a study on increasing hydro-generation at federal dams, the other a call for the National Academy of Science to study the potential for renewable energy projects on federal land.

For the FY 2005 annual energy reporting requirements, FY 1985 will remain be the baseline for standard buildings. Mr. Ream will be the lead on the metering provisions in the legislation. Mr. Klimkos added that members of the Task Force interested in serving on a working group to help develop the guidance documents for the new energy legislation should contact him.

GAO ESPC Report

CDR Tomiak reported on the two GAO ESPC program audits. The first audit looked primarily at scoring, financing, and monitoring. The second audit studied the goals for which ESPCs were established, the results achieved through ESPCs, and the aspects of ESPCs that should be addressed. The GAO's key recommendations appear to be fair and balanced. Recommendations included more effective collection and use of data, use of appropriate expertise when undertaking an ESPC, and audits of ESPCs. Both reports recommended increased visibility and oversight, and improving the program's credibility. The program may benefit from having the GAO team return to evaluate if recommendations were adopted. Some improvements are already underway, including the formation of the federal ESPC Steering Committee. In response to a question, CDR Tomiak said that much of likely annual reporting burden will fall on the contracting office of the agency implementing the ESPC. There was a comment that the government would need a central database to collect and store data and be able to demonstrate performance.

Multiyear Plan Development Exercise

Mr. Connor updated the group on FEMP's multiyear planning exercise, which focuses on the FY 2007 and the five following years. A draft multiyear plan will be prepared by the end of August. Task Force and Federal Energy Management Advisory Committee (FEMAC) members will have the opportunity to provide comments when the draft is circulated in September/October. The draft will have to be revised based on the new requirements of the energy legislation.

Peer Review

Mr. Klimkos reported on FEMP's first peer review, scheduled for September 20-21, 2005. The review is occurring with a compressed schedule, in hopes that it will be completed for inclusion in the Program Assessment Rating Tool (PART) submission that will be provided to OMB in November. The assessment will review 90 percent of the program's budget. The review will cover two years, with panels on alternative financing, technical assistance, and intergovernmental outreach and departmental work. Paul DeCotis, Director of Energy Analysis for the New York State Energy Research and Development Authority, will chair the review. Task Force members are invited to attend as observers (PDF 29 KB, 2 pp). Download Adobe Reader.

TA Survey

Joan Glickman informed the group about a survey on FEMP's Technical Assistance (TA) program, an outcome analysis based on energy and cost savings. The survey was designed by FEMP and DOE's Oak Ridge National Laboratory. It is a lengthy survey and volunteers are needed to test it over the next few weeks so that it can be refined. The survey is geared toward people who received TA services in 2003. Task Force members may be asked to notify the people who are going to receive the surveys. The survey results are expected at the end of the calendar year.

Annual Reports

Mr.Klimkos reported that the FY 2003 Annual Report to Congress will be sent to the Secretary of Energy in the next week or so. The FY 2004 report will be out for review and comments. The FY 2005 reporting guidance has been released and agencies are encouraged to distribute it to their sites and facilities. No big changes are expected in the FY 2005 Scorecard. OMB should approve and provide it to agencies in the next several weeks.

Awards Programs

Annie Haskins, FEMP, reminded the group that the annual 2005 combined Presidential and Federal awards ceremony is scheduled for October 27, 2005 at the U.S. Department of State Headquarters. Federal award winners have been selected. A list of the 21 federal award winners was distributed to the group. Presidential award winners have been finalized and are pending approval from the White House.

Open Discussion

Arun Jhaveri commented about the sustainable design provisions of the energy legislation; sustainably-designed buildings are a hard sell because the upfront costs are higher. Also, in cases where owned jointly by states and the federal government, such as National Guard buildings, the burden for metering and other issues will need to be worked out.

Mr. Conner thanked Ms. Hoffman for her energy and commitment during her tenure as interim Program Manager of FEMP.

Next Meeting

The next Interagency Energy Management Task Force Meeting will be held on Wednesday, November 2, 2005.

With no additional comments or questions, the meeting was adjourned.

ATTENDEES