Department of Defense Facilities Energy Conservation Policies and Spending

Congressional research reportFeb 19, 2009

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Prepared for Members and Committees of Congress

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In the early 1970s, Congress began mandating reductions in energy consumed by federal

agencies; primarily by improving building efficiency, and reducing fossil fuel use. Early

legislation mandated a 10% reduction in federal building energy and a recent Executive Order

mandates a 30% further reduction by 2015. President-elect Obama has included the goal of

improving public building energy efficiency in his administration’s economic recovery plan.

This report reviews energy conservation legislation and Executive Orders that apply to the

Department of Defense, directives and instructions to the military departments and agencies on

implementing the legislation and orders, Defense spending on facility energy over the last decade,

annual Defense appropriations that fund energy-conservation improvements, and Defense energy

conservation investments.

In FY2007, Defense spending on energy to operate its facilities reached almost $3.5 billion. In the

last decade, Congress has appropriated $443 million in Defense energy conservation projects, and

the value of contracts to install energy savings improvements has exceeded $2.8 billion. While

the Defense Department has reduced its energy consumption, its energy spending increased due

to higher energy prices. Congress continues to look at furthering energy efficiency improvements

in aging Defense facilities and buildings as a means to rein in energy consumption and spending.

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Background ..................................................................................................................................... 1

Energy Efficiency Legislation ......................................................................................................... 1

Energy Policy Act of 2005 (P.L. 109-58) .................................................................................. 2

Energy Independence and Security Act of 2007 (P.L. 110-140) ............................................... 3

National Defense Authorization Act for FY2007 (P.L. 109-364).............................................. 4

National Defense Authorization Act for FY2008 (P.L. 110-181).............................................. 4

National Defense Authorization Act for FY2009 (P.L. 110-417).............................................. 5

Executive Order 13423.................................................................................................................... 5

Defense Energy Policies.................................................................................................................. 7

Defense Energy Consumption and Spending .................................................................................. 8

Renewable Electric Energy Purchases .......................................................................................... 10

Defense Energy Efficiency Improvements.....................................................................................11

Energy Conservation Investment Program...............................................................................11

Energy Savings Performance Contracts .................................................................................. 12

Utility Energy Savings Contracts............................................................................................ 13

Policy Considerations and Options for Congress .......................................................................... 13

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Figure 1. DOD Electricity Cost vs. Electricity Rates ...................................................................... 9

Figure 2. DOD Natural Gas Costs vs. Citygate Price.................................................................... 10

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Table 1. Meeting EPACT 2005 Renewable Energy Goals Through EO13423 ............................... 7

Table 2. DOD Facility Energy Spending vs. O&M Budget ............................................................ 8

Table 3. DOD Facility Energy Consumption .................................................................................. 9

Table 4. Renewable Electricity Use vs. Total Electricity Use ....................................................... 10

Table 5. National Defense Authorizations for Energy Conservation Projects................................11

Table 6. DOD Energy Conservation Investment Program ............................................................ 12

Table 7. DOD ESPCs .................................................................................................................... 13

Table 8. DOD UESCs.................................................................................................................... 13

Table A-1.Legislation Introduced Since the 107th Congress Addressing DOD Facility

Energy Consumption.................................................................................................................. 16

Table A-2. National Defense Authorization Acts .......................................................................... 23

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Appendix. Legislation ................................................................................................................... 16

˜—ŠŒœȱ

Author Contact Information .......................................................................................................... 24

Acknowledgments ......................................................................................................................... 24

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The Department of Defense (DOD) accounts for approximately 63% of the energy consumed by

federal facilities and buildings.1 This makes DOD the single largest energy consumer in the

United States, even though consuming only 1% of national site-delivered energy.2 Its annual

spending on facility energy has averaged over $3.4 billion recently.

In the early 1970s, Congress began mandating reductions in energy consumed by federal

agencies, primarily by improving the efficiency of buildings and facilities, and by reducing fossil

fuel use. Initially, a 10% energy reduction goal was established for federal buildings as measured

against a 1985 baseline.3 By fiscal year (FY) 2005, DOD reported a 28.3% reduction in energy

consumption compared to the baseline. Recent legislation and Executive Orders establish further

energy reduction goals. President-elect Obama’s recently publicized economic recovery plans

include improvements in public building energy efficiency. Recently introduced bills in Congress

have called for establishing national building efficiency codes.

This report reviews the energy conservation provisions in past and recent legislation applicable to

DOD, Executive Orders that apply to all federal facilities4 and operations, and the Office of the

Secretary of Defense (OSD) directives and instructions to the military departments and agencies.

DOD spending on facility energy is annually reported to Congress as originally mandated by the

National Energy Conservation Policy Act (NECPA). Data reported over the last decade have been

summarized in this report. Annual defense appropriations that fund energy conservation measures

along with DOD energy conservation investments are also summarized. This report does not

cover the subject of transportation fuels.

—Ž›¢ȱ’Œ’Ž—Œ¢ȱސ’œ•Š’˜—ȱȱ

Federal government initiatives aimed at reducing energy consumption can be traced back to the

start of the Federal Energy Management Program (FEMP) in 1973. The 1978 National Energy

Conservation Policy Act (NECPA), Public Law (P.L.) 95-619, began the program of retrofitting

federal buildings to improve energy efficiency. The 1985 Deficit Reduction Act (P.L. 99-272)

amended NECPA by authorizing energy savings contracts of up to 25 years.

The 1992 Energy Policy Act further amended NECPA by adopting Energy Savings Performance

Contracts (ESPCs) that offered federal agencies a novel means of making energy efficiency

improvements to aging buildings and facilities (see discussion below). NECPA required federal

agencies, including DOD, to report annually on the energy consumption by their buildings,

1

Assistant Secretary, Energy Efficiency and Renewable Energy, Annual Report to Congress on Federal Government

Energy Management Programs, U.S. Department of Energy, September 26, 2006, pp. Table A-3,

http://www1.eere.energy.gov/femp/about/annual_report.html.

2

When measured in terms of energy delivered to the point of use or site-delivered energy consumption, the

Government consumed 1.1 quads during FY2005 of the total 99.84 quads used in the United States.

3

Measured on a Btu-per-gross-square-foot (Btu/gsf) basis.

4

For the purposes of the Energy Independence and Security Act of 2007, the term ‘facility” means any building,

installation, structure, or other property (including any applicable fixtures) owned or operated by, or constructed or

manufactured and leased to, the Federal Government.

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operations, and vehicles.5 Overall federal energy consumption is reported annually to Congress

by the Department of Energy (DOE) Federal Energy Management Program (FEMP).6 The

Federal Energy Management Improvement Act of 1988 (P.L. 100-615) amended NECPA by

requiring each agency to achieve a 10% reduction in energy consumption in federal buildings by

FY1995 when measured against an FY1985 baseline in terms of British thermal units per gross

square foot (Btu/gsf) of building area.7

More recently, two major energy bills have been enacted with provisions generally pertaining to

all federal agency facilities—the Energy Policy Act of 2005 (EPACT – P.L. 109-58)8 and the

9

Energy Independence and Security Act of 2007 (EISA – P.L. 110-140). Annual DOD

appropriation bills have also included energy provisions specifically pertaining to defense

facilities. Legislation pertaining to the energy efficiency of federal and DOD buildings is

summarized below. For bills introduced since the 107th Congress, refer to the Appendix of this

report.

—Ž›¢ȱ˜•’Œ¢ȱŒȱ˜ȱŘŖŖśȱǻǯǯȱŗŖşȬśŞǼȱ

•

Section 103. Energy Use Measurement and Accountability amended Section 543

of the NECPA with the mandate for using advanced meters to reduce electricity

use in federal buildings by October 1, 2012.10

•

Section 109. Federal Building Performance Standards amended the Energy

Conservation and Production Act11 by adopting the 2004 International Energy

Conservation Code, and requiring revised energy efficiency standards and a 30%

reduction in energy consumption of new federal buildings over the previous

standards.

•

Section 203. Federal Purchase Requirement requires that the federal government

offset its electric energy consumption with an increasing percentage of

“renewable energy” from 3% starting in 2005 to not less than 7.5% by 2013 and

each fiscal year thereafter.12 Renewable energy is defined as electrical energy

generated from solar, wind, biomass, landfill gas, ocean (including tidal, wave,

current, and thermal), geothermal, municipal solid waste, or new hydroelectric

generation capacity achieved from increased efficiency or additions of new

capacity at an existing hydroelectric project.

5

42 U.S.C.A. § 8251 Sec. 303 – Annual Reports to the President.

See U.S. Department of Energy, Efficiency and Renewable Energy, Annual Report to Congress,

http://www1.eere.energy.gov/femp/about/annual_report.html.

7

42 U.S.C. § 8253 (a) (1).

8

See CRS Report RL33302, Energy Policy Act of 2005: Summary and Analysis of Enacted Provisions, by (name redacted) et

al.

9

See CRS Report RL34294, Energy Independence and Security Act of 2007: A Summary of Major Provisions,

coordinated by (name redacted).

10

See Department of Energy, Guidelines for Electric Metering in Federal Buildings, DOE/EE-0312, February 3, 2006.

11

42 U.S.C. § 6834.

12

42 U.S.C. § 15852(a).

6

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•

Section 431. Energy Reduction Goals for Federal Buildings amends the National

Energy Conservation Policy Act (NECPA)13 by mandating a 30% energy

reduction in federal buildings by 2015 relative to a 2005 baseline.

•

Section 432. Management of Energy and Water Efficiency in Federal Buildings

requires DOE to issue guidelines and criteria that each federal agency will follow

for designating “covered facilities”, assigning energy managers, and

implementing comprehensive energy and water evaluations. For the purpose of

energy and water evaluations, covered facilities constitute at least 75% of facility

energy use at each facility.

•

Section 433. Federal Building Energy Efficiency Performance Standards requires

55% reduced fossil energy use in new federal buildings and major renovations by

2010 relative to a 2003 baseline, and 100% by 2030.

•

Section 434. Management of Federal Building Efficiency requires that federal

agencies ensure the energy life-cycle cost effectiveness of major equipment

replacements (such as heating and cooling systems) and renovations or expansion

of existing space.

•

Section 435. Leasing prohibits federal agencies from leasing buildings that have

not earned an EPA Energy Star label.14

•

Section 436. High Performance Green Federal Buildings directs the

establishment of federal high-performance green building standards for all types

of federal facilities,15and the establishment of green practices that can be used

throughout the life of a federal facility.

•

Section 512. Financing Flexibility authorizes federal agencies to use a

combination of appropriated funds and private financing for Energy Savings

Performance Contracts (ESPC).

•

Section 514. Permanent Authorization enacts permanent authorization of ESPCs,

and restricts federal agencies from limiting the duration of ESPCs to less than 25

years or limiting the total amount of obligations.

•

Sec. 518. Study of Energy and Cost Savings in Nonbuilding Applications directs

DOD to study the potential use of ESPCs in nonbuilding applications, which

include vehicles and federally owned equipment that generate electricity or

transport water.

13

42 U.S.C. § 8253(a) (1).

In 1992 the US Environmental Protection Agency (EPA) introduced ENERGY STAR as a voluntary labeling

program designed to identify and promote energy-efficient products to reduce greenhouse gas emissions. Computers

and monitors were the first labeled products. Through 1995, EPA expanded the label to additional office equipment

products and residential heating and cooling equipment. In 1996, EPA partnered with the US Department of Energy for

particular product categories. The ENERGY STAR label is now on major appliances, office equipment, lighting, home

electronics, and more. EPA has also extended the label to cover new homes and commercial and industrial buildings.

http://www.energystar.gov/index.cfm?c=about.ab_history.

15

Consistent with the requirements of Section 305(a)(3)(D) of the Energy Conservation and Production Act (42 U.S.C.

6834(a)(3)(D)).

14

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•

Section 526. Procurement and Acquisition of Alternative Fuels prohibits federal

agencies from procuring alternative or synthetic fuels, unless contract provisions

stipulate that life-cycle greenhouse gas emissions do not exceed equivalent

conventional fuel emissions produced from conventional petroleum sources.16

Š’˜—Š•ȱŽŽ—œŽȱž‘˜›’£Š’˜—ȱŒȱ˜›ȱŘŖŖŝȱǻǯǯȱŗŖşȬřŜŚǼȱ

Subtitle E (Energy Security), reorganizes 10 U.S.C 2865 to establish new energy performance

goals for DOD, establish new goals for using renewable energy, and encourage energy efficiency

products and renewable forms of energy in new construction. More specifically:

•

Section 2851. Consolidation and Enhancement of Laws to Improve Department

of Defense Energy Efficiency and Conservation reorganizes 10 U.S.C. 2865 by

the insertion of (new) Chapter 173—Energy Security, which requires the

establishment of energy performance goals for transportation systems, support

systems, utilities and infrastructure; leaves any appropriated funds equal to

energy cost savings available for obligation until expended; requires development

of a simplified method for contracting energy savings contract services; and

authorizes energy conservation construction projects not previously authorized

using appropriated funds after notification to Congress.

•

Section 2852. Department of Defense Goal Regarding Use of Renewable Energy

to Meet Electricity Needs amends 10 U.S.C. 2911 by making it DOD’s goal to

produce or procure at least 25% of its electric energy consumption from

renewable sources by the year 2025.

•

Section 2853. Congressional Notification of Cancellation Ceiling for Department

of Defense Energy Savings Performance Contracts requires Congressional notice

when federal agencies award an energy savings performance contract that

contains a clause setting forth a cancellation ceiling in excess of $7,000,000.17

•

Section 2854. Use of Energy Efficiency Products in New Construction requires

that to the maximum extent practicable, energy efficient products meeting

Defense Department requirements must be used in new facility construction.

Š’˜—Š•ȱŽŽ—œŽȱž‘˜›’£Š’˜—ȱŒȱ˜›ȱŘŖŖŞȱǻǯǯȱŗŗŖȬŗŞŗǼȱ

•

Section 828. Multiyear Contract Authority For Electricity From Renewable

Energy Sources authorizes contracts periods of up to 10 years for purchasing

electricity from sources of renewable energy.

•

Sec. 2861. Repeal of Congressional Notification Requirement Regarding

Cancellation Ceiling for Department of Defense Energy Savings Performance

Contracts amends 10 U.S.C § 2913 by striking subsection (e) requiring

16

The provision was included to ensure that federal agencies are not spending taxpayer dollars on new fuel sources that

will exacerbate global warming—a response to proposals under consideration by the Air Force to develop coal-toliquid fuels. Letter of March 17, 2008, from Chairman, House Committee on Oversight and Government Reform to

Chairman, Senate Committee on Energy and Natural Resources.

17

Federal Acquisition regulations—Part 17 Special Contracting Methods—define “cancellation ceiling” to mean the

maximum cancellation charge that the contractor can receive in the event of cancellation.

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

Śȱ

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notification of an ESPC awarded with a cancellation ceiling clause exceeding $7

million.

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•

Section 902. Director of Operational Energy Plans and Programs amends 10

U.S.C. 139 by directing the appointment of a director responsible for the

oversight of energy required for training, moving, and sustaining military forces

and weapons platforms for military operations.

•

Section 2831. Certification of Enhanced Use Leases for Energy-related Projects

amends 10 U.S.C. 26679(h) by requiring certification that a lease exceeding 20

years for an energy production project is consistent with DOD performance

goals.

•

Section 2832. Annual Report on Department of Defense Installations Energy

Management amends 10 U.S.C. 29259(a) by revising the subsection heading to

“Annual Report Related to Installations Energy Management” and adding the

reporting requirement for a description and estimate of the progress made by the

military departments in meeting the certification requirements for sustainable

green-building standards in construction and major renovations as required by

Section 433 of EISA 2007.

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In signing Executive Order (EO) 13423 - Strengthening Federal Environmental, Energy and

Transportation Management, President Bush revoked five earlier executive orders affecting

18

federal agencies’ energy and environmental management. Section 11 of the order consolidates

and strengthens the five Executive Orders and two Memorandums of Understanding (MOU) and

establishes new and updated goals, practices, and reporting requirements for environmental,

energy, and transportation performance and accountability.19 In some cases the new executive

order puts in place replacement energy and environmental efficiency goals for previous goals

with target dates that have passed.

The new Executive Order also implements and supplements provisions of the EPACT dealing

with energy and environmental management by federal agencies. The combination of EPACT

(Title I, Part A) and EO13423 define the current energy efficiency objectives for federal agencies.

EO13423 directs all federal agencies, including DOD, to improve energy efficiency and reduce

greenhouse gas emissions through reduction of energy intensity (3% annually through the end of

18

The President, “Strengthening Federal Environmental, Energy, and Transportation Management,” 72 Federal

Register 3919-3923, January 26, 2007.

19

Specifically, Section 11 of EO13423 revokes the following prior executive orders: EO13101 Greening the

Government Through Waste Prevention, Recycling, and Federal Acquisition (September 14, 1998), EO13123 Greening

the Government Through Efficient Energy Management (June 3, 1999), EO13134 Developing and Promoting Biobased

Products and Bioenergy (August 12, 1999), EO13148 Greening the Government Through Leadership in Environmental

Management (April 21, 2000), and EO13149 Greening the Government Through Federal Fleet and Transportation

Efficiency (April 21, 2000). See “Fact Sheet, Executive Order 13423, Strengthening Federal Environmental, Energy

and Transportation Management,” Office of the Federal Environmental Executive at http://ofee.gov/eo/

EO_13423FactSheet.pdf accessed (Accessed November 17, 2008).

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

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FY2015, and 30% by the end of FY2015, relative to each agency’s baseline energy use in

FY2003). Progress in reaching building energy efficiency goals are scored by agencies in terms of

reductions in energy consumption versus gross building area (Btu/gsf). For the energy reduction

goals of EPACT and EO13423, some inherently inefficient industrial types of buildings are

excluded from this scoring.

EO13423 (Section 2f) mandates specific energy reduction targets for new construction and

renovations. Executive branch agencies are directed to meet objectives set in the Federal

Leadership in High Performance and Sustainable Buildings Memorandum of Understanding

(“Sustainable Buildings MOU”).20 The Sustainable Buildings MOU calls for new buildings to be

30% more cost efficient than industry standards, and for buildings undergoing major renovations

to be 20% more cost efficient than a pre-renovation, 2003 baseline. Federal agencies are

encouraged to incorporate sustainable practices into projects underway, and are also encouraged

to sell or dispose of unneeded assets.21

Executive Order 13123, now revoked, had directed improvements in building energy efficiency,

promoted the use of renewable energy, and set goals for reduction of greenhouse gas (GHG)

emissions associated with energy use in buildings, among other energy-related requirements. The

revoked order had also served as the basis of DOD’s instruction to the services on energy use. In

contrast, the new Executive Order 13423 has no specific GHG reduction target. However, Section

2.a of the new Executive Order does include the goal of cutting GHG emissions by federal

agencies through reductions in the energy intensity of agency operations, but does not specify a

GHG reduction target.

EPACT only credited electricity from renewable energy sources in meeting federal purchase

requirements. EO13423 now requires that at least half of the EPACT renewable energy

requirement comes from new (put in service after January 1, 1999) renewable energy sources.

Agencies may also use new non-electric renewable energy sources to meet the requirement for

new renewable energy. (Examples of non-electric renewable energy include thermal energy from

solar ventilation pre-heat systems, solar heating and cooling systems, solar water heating, ground

source heat pumps, biomass heating and cooling, thermal uses of geothermal and ocean

resources.) However, these non-electric renewable energy sources cannot be used to meet the

EPACT renewable electricity requirement (see Table 1).22

20

The Sustainable Building MOU is available at http://www.fedcenter.gov/_kd/Items/

actions.cfm?action=Show&item_id=4713&destination=ShowItem (accessed on November 17, 2008).

21

Office of Management and Budget, Instructions for Implementing Executive Order 13423, March 29, 2007, p. 25,

http://www.whitehouse.gov/omb/memoranda/2007.html.

22

U.S. Department of Energy, Energy Efficiency and Renewable Energy, Renewable Energy Requirement Guidance

for EPACT and Executive Order 13423, January 28, 2008, p. 5,

http://www1.eere.energy.gov/femp/pdfs/epact05_fedrenewenergyguid.pdf.

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Table 1. Meeting EPACT

2005 Renewable Energy Goals Through EO13423

Renewable energy sources credited in meeting federal purchase requirements

EPACT ‘05

EO 13423

Minimum Goal

Total

EO 13423

Full Goal

Total

Source

Energy

Old

New

Electric

Electric

Electric

Old

New

Electric

Non-Electric

2007-2009

3%

1.5%

1.5%

3%

3%

1.5%

4.5%

2009-2012

5%

2.5%

2.5%

5%

5%

2.5%

7.5%

2013-out

7.5%

3.75%

3.75%

7.5%

7.5%

3.75%

11.25%

U.S. DOE/FEMP Renewable Energy Requirement Guidance for EPACT and Executive Order 13423.

Notes: Old renewable energy sources are those put into service prior to January 1, 1999. Between minimum

and full goal, federal agencies can use any combination of new non-renewable electric and electric renewable

energy sources to meet EO13423 requirements. For purposes of EPACT and EO 13423, purchases of

Renewable Energy Certificates (RECs) are treated the same as renewable energy purchases; however RECs from

qualified renewable sources of non-electric energy can only be used to the EO 12423 requirement..

Source:

For the purpose of meeting the energy intensity reduction goals under EPACT (Btu/gsf), the

credit agencies receive for renewable energy purchases started to phase out in FY2008, and will

be reduced to zero by FY2011.

Finally, EO13423 requires each federal agency to annually report to the President. The Office of

Management and Budget (OMB) provides general reporting guidance in Circular No. A-11

(Section 55 – Information on Energy Use, Costs, and Efficiency). Detailed reporting guidance is

provided in a recent DOE memorandum to federal agency energy coordinators.23

ŽŽ—œŽȱ—Ž›¢ȱ˜•’Œ’Žœȱ

The Office of the Secretary of Defense (OSD) has issued directives and instructions to the

military departments and agencies on implementing EO13423 and complying with energy

legislation. In an October 23, 2007 Energy Awareness Campaign memorandum to the service

departments and agencies, the Under Secretary of Defense underscored the energy conservation

goals of EO13423 and established October as an Energy Awareness month. The memorandum

effectively superseded an earlier January 2005 memorandum that referenced EO13123 - Greening

the Government through Efficient Energy Management.

DOD’s primary guidance on installation energy management appears in DOD Instruction

4170.11.24 The instruction applies to all military departments and agencies, and pertains to all

23

Letter from Richard Kidd, Program Manager, Federal Energy Management Program, Office of Energy Efficiency

and Renewable Energy, to Federal Agency Energy Coordinators, Reporting Guidance for FY2008 Annual Report on

Federal Government Energy Management, September 8, 2008, http://www1.eere.energy.gov/femp/about/

reporting_guidance.html.

24

Office of the Deputy Under Secretary of Defense / Installations and Environment, Department of Defense

Installations Energy Management Program, November 22, 2005, http://www.acq.osd.mil/ie/irm/Energy/

Energy_Home/energyAbout.shtml.

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ŝȱ

ޙЛ–Ž—ȱ˜ȱŽŽ—œŽȱŠŒ’•’’Žœȱ—Ž›¢ȱ˜—œŽ›ŸŠ’˜—ȱ˜•’Œ’ŽœȱŠ—ȱ™Ž—’—ȱ

ȱ

phases of administration, planning, programming, budgeting, operations, maintenance, training,

and materiel acquisition activities that affect the supply, reliability and consumption of facilities

energy. In reference to Instruction 4170.11, a November 18, 2005 memorandum on Installation

Energy Policy Goals establishes goals of reducing greenhouse gases, reducing energy and water

consumption, expanding renewable energy procurement, and reducing petroleum use. It also

directs the completion of eligible utility privatization in a process established under the Deputy

Secretary of Defense. Further guidance to DOD’s installation and facility managers is provided in

the DOD Energy Managers Handbook.25 In particular, the guidance endorses the sustainable

building design approach for building and facility life-cycles, and encourages DOD components

to obtain the U.S. Green Building Council’s Leadership in Energy and Environment Design

(LEED) certification.26 DOD responded to the EPACT Section 103 electric metering provision by

revising instructions on installation energy management to require metering at all appropriate

facilities in Department of Defense Metering Plan.

ŽŽ—œŽȱ—Ž›¢ȱ˜—œž–™’˜—ȱŠ—ȱ™Ž—’—ȱ

DOD reports occupying over 316,000 buildings and additional 182,000 structures on 536 military

installations worldwide.27 In FY2007 DOD spent over $3.4 billion on energy consumed by its

facilities as shown in Table 2; roughly 13% of Defense-wide operations and maintenance (O&M)

budget obligation authority. (In FY2001, it ran as high as 23%.) Electricity represented 45% of

energy consumed, followed by natural gas at 33%, fuel oil at 11%. The balance was made up of

coal and liquefied petroleum gas (LPG). Renewable energy represented 8.7% of facility

electricity use. As shown in the Table 3, energy consumption (express in British Thermal Units –

Btu) has been decreasing over the same period, as has gross building area.

Table 2. DOD Facility Energy Spending vs. O&M Budget

($ million)

FY1999

FY2000

FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

FE

2,253.9

2,403.6

2,792.2

2,614.1

2,564.9

2,812.2

2,971.4

3,496.9

3,436.7

O&M

11,380.2

11,661.4

12,202.3

13,540.1

14,816.7

16,570.8

21,219.6

21,025.1

26,000.6

Office of the Deputy Under Secretary of Defense for Installations and Environment, Energy

Management Report, http://www.acq.osd.mil/ie/energy/index.shtml. Office of the Under Secretary of Defense

(Comptroller), Military Personnel (M-1) and Operation and Maintenance (O-1) programs,

http://www.defenselink.mil/comptroller/.

Source:

FE represents Defense Facility energy spending. O&M represents Defense-Wide total budget obligation

authority for operations and maintenance.

Notes:

25

Office of the Under Secretary of Defense, Department of Defense Energy Manager’s Handbook, August 25, 2005,

http://www.acq.osd.mil/ie/irm/Energy/EnergyManagerSupport/energyManagerSupport.shtml.

26

See U.S. Green Building Council, http://www.usgbc.org/; CRS Report R40147, Issues in Green Building and the

Federal Response: An Introduction, by (name redacted).

27

Office of the Deputy Under Secretary of Defense for Installations and Environment, Base Structure Report Fiscal

Year 2008 Baseline, http://www.acq.osd.mil/ie/download/bsr/BSR2008Baseline.pdf.

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

Şȱ

ޙЛ–Ž—ȱ˜ȱŽŽ—œŽȱŠŒ’•’’Žœȱ—Ž›¢ȱ˜—œŽ›ŸŠ’˜—ȱ˜•’Œ’ŽœȱŠ—ȱ™Ž—’—ȱ

ȱ

. DOD Facility Energy Consumption

Table 3

Building Area (million square feet) vs. Consumption (billion Btu)

FY1999

FY2000

FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

Bld. Area

2,199.8

2,200.4

2,182.4

2,183.7

2,174.0

2,093.3

2,112.1

1,957.1

1,954.2

Consumption

250,877

253,736

251,317

244,019

242,240

237,660

234,615

223,354

218,062

Office of the Deputy Under Secretary of Defense (Installations and Environment), Energy Management

Report, http://www.acq.osd.mil/ie/energy/index.shtml.

Notes: Consumption takes into account standard, industrial, and exempt buildings; and includes electricity, fuel

oil, natural gas, LPG/propane, coal, purchased steam, and other energy types. Electric energy consumption is

reported in megawatt-hours by DOD and converted to Btu for purposes of measuring overall building energy

consumption in terms of in Btu-per-gross-square-foot.

Source:

Over the current decade, both electricity rates and natural gas prices steadily increased. DOD’s

average electricity costs in cents per kilowatt-hr (kWh) have stayed between the range of rates

charged to commercial and industrial customers, as shown in Figure 1.

9

8

7

6

5

4

3

2

1

0

Commerical

DOD average

Industrial

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

Cents / kWh

Figure 1. DOD Electricity Cost vs. Electricity Rates

U.S DOE/EIA Table 8.10 Average Retail Prices of Electricity, 1960-2007 http://www.eia.doe.gov/emeu/

aer/txt/ptb0810.html; and Office of the Deputy Under Secretary of Defense (Installations and Environment),

Energy Management Report, http://www.acq.osd.mil/ie/energy/index.shtml.

Notes: Previous to EPACT, energy consumption was reported under three categories: standard, industrial, and

exempt building types. Reporting under EPACT combined standard and industrial facility types. Exempt facilities

are structures that are particularly energy intensive.

Source:

DOD natural gas costs have generally tracked the price of gas at the local distribution company

(LDC) citygate (Figure 2). The citygate is the point at which the LDC takes gas from the

transmission pipeline for distribution to it customers. The spike in DOD’s cost relative to the

falling citygate price is not explained in any DOD reporting.

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

şȱ

ޙЛ–Ž—ȱ˜ȱŽŽ—œŽȱŠŒ’•’’Žœȱ—Ž›¢ȱ˜—œŽ›ŸŠ’˜—ȱ˜•’Œ’ŽœȱŠ—ȱ™Ž—’—ȱ

ȱ

Figure 2. DOD Natural Gas Costs vs. Citygate Price

$ Per Thousand Cubic Feet

12.00

$ / Thou Cu Ft

10.00

8.00

DOD Cost

Citygate Price

6.00

4.00

2.00

7

6

20

0

3

20

0

5

2

20

0

20

0

1

20

0

4

0

20

0

20

0

9

19

9

20

0

0.00

U.S DOE/EIA Table 6.7 Natural Gas Wellhead, City Gate, and Imports Prices, 1949-2007

http://www.eia.doe.gov/emeu/aer/txt/ptb0607.html; and Office of the Deputy Under Secretary of Defense

(Installations and Environment), Energy Management Report, http://www.acq.osd.mil/ie/energy/index.shtml.

Notes: Citygate price represents the local distribution company’s cost. Typically, LDCs take ownership of the

natural gas at the citygate, and deliver it to each individual customer’s location of use.

Source:

Ž—Ž Š‹•Žȱ•ŽŒ›’Œȱ—Ž›¢ȱž›Œ‘ŠœŽœȱ

Reporting requirements for renewable energy have changed over the last decade due to new

legislated mandates and Executive Orders. EPACT Section 203 requires federal agencies to

replace electricity consumption with increasing amounts of renewable energy. Federal agencies

must also meet the new renewable energy requirements of EO13423. In 1999, DOD had not yet

begun reporting on renewable energy. A limited capacity of photovoltaic (solar) panels had been

installed, but operating statistics under the category of self-generated power had not been

compiled until FY2001. As shown in Table 4, DOD began reporting renewable energy in

FY2000. For FY2007, DOD reported using over 1.6 million MWH of renewable electricity,

which represented 5.5% of overall electricity consumption. The renewable energy goal by 2025 is

25% of total electricity use.

Table 4. Renewable Electricity Use vs. Total Electricity Use

(Megawatt-hours)

FY2000

FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

Renewable

164,076

252,972

321,592

431,000

504,223

1,425,151

1,238,282

1,639,924

Total Elec.

30,242,318

29,963,594

30,352,859

29,747,453

30,666,157

29,594,692

29,792,539

29,656,103

0.5

0.8

1.0

1.4

1.6

4.8

4.1

5.5

%

Office of the Deputy Under Secretary of Defense (Installations and Environment), Energy Management

Report, http://www.acq.osd.mil/ie/energy/index.shtml.

Notes: Renewable includes purchased renewable electricity credits and self-generated electricity. Total

electricity includes standard, industrial, and exempt buildings.

Source:

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ŗŖȱ

ޙЛ–Ž—ȱ˜ȱŽŽ—œŽȱŠŒ’•’’Žœȱ—Ž›¢ȱ˜—œŽ›ŸŠ’˜—ȱ˜•’Œ’ŽœȱŠ—ȱ™Ž—’—ȱ

ȱ

ŽŽ—œŽȱ—Ž›¢ȱ’Œ’Ž—Œ¢ȱ –™›˜ŸŽ–Ž—œȱ

Despite reductions in energy consumption, annual energy spending increased up through FY2006

and would likely have been higher without investment in energy efficiency improvements. DOD

programs improvements through the Defense Energy Conservation Investment Program (ECIP),

and takes advantage of ESPCs, and Utility Energy Savings Contracts (UESCs). Improvements are

funded directly through the Defense Military Construction (MILCON) program, and indirectly

through Operation and Maintenance (O&M) appropriations.

—Ž›¢ȱ˜—œŽ›ŸŠ’˜—ȱ —ŸŽœ–Ž—ȱ›˜›Š–ȱ

Between 1999 and 2009, Congress appropriated $442.9 million in Defense Energy Conservation

Projects (summarized in Table 5). These projects are accomplished through the DOD Energy

Conservation Investment Program (ECIP), which designates projects that specifically save or

reduce Defense energy costs, and are funded under MILCON.

. National Defense Authorizations for Energy Conservation Projects

Table 5

FY2000- FY2009

FY2000

FY2001

P.L. 106-65

P.L. 106398

15.0

1.3

FY2002

FY2003

FY2004

($ million)

FY2005

FY2006

FY2007

FY2008

FY2009

P.L. 107P.L. 107P.L. 108P.L. 108P.L. 109107

314

136

375

163

27.1

34.5

50.0

50.0

50.0

Note: The bill titles are provided in Table A-2 of the Appendix to this report.

P.L. 109364

55.0

P.L. 110181

70.0

P.L. 110417

90.0

According to the Office of the Secretary of Defense: “OSD centrally controls ECIP funding

allocation on a by-project basis. In FY 1999 ECIP funds were allocated to those projects with the

highest savings to investment ratio (SIR) and the best payback periods, regardless of component.

In FY 2001, the Department revised this process to allocate funds based on the components’

percentage of total DOD installations BTU consumption. Within the allocated amount, the

Component prioritizes their projects based on a combination of SIR and the priorities emphasized

by the Energy Policy Act of 2005, Executive Order (EO) 13423, and the Energy Independence

and Security Act of 2007. The Department emphasizes the use of ECIP in reducing energy

consumption and greenhouse gas emissions, and increasing the use of renewable energy.” 28

Between 2001 and 2007, DOD in turn allocated $260.3 million for 193 ECIP projects

(summarized in Table 6).

28

OSD Installations and Environment, Energy Conservation Investment Program

{http://www.acq.osd.mil/ie/irm/Energy/ecip/ecip.shtml}

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ŗŗȱ

ޙЛ–Ž—ȱ˜ȱŽŽ—œŽȱŠŒ’•’’Žœȱ—Ž›¢ȱ˜—œŽ›ŸŠ’˜—ȱ˜•’Œ’ŽœȱŠ—ȱ™Ž—’—ȱ

ȱ

. DOD Energy Conservation Investment Program

Table 6

Projects vs. Spending ($ million)

FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

Projects #

18

22

32

36

42

43

46

Spending $

14.9

20.7

24.5

47.3

48.7

49.6

54.6

Source: Office of the Deputy Under Secretary of Defense (Installations & Energy),

energy/ecip/ecip.shtml.

Notes: Allocations for 1999 and 2000 were not reported.

http://www.acq.osd.mil/ie/

—Ž›¢ȱŠŸ’—œȱŽ›˜›–Š—ŒŽȱ˜—›ŠŒœȱ

ESPCs complement DOD’s Energy Conservation Investment Program and Defense Energy

Conservation appropriations by providing additional energy efficiency improvements. Qualified

Energy Service Companies (ESCOs) finance the improvements through the savings realized by

the facility, typically over a life-cycle of 10 to 25 years.29 These contracts include infrastructure

improvements and new equipment to help reduce energy consumption. Examples include new

thermal storage systems, chillers, boilers, lights, motors, energy monitoring and control systems,

and water saving devices. In return for providing the financing, the ESPC contractor receives a

specified share of any resulting energy cost savings.

Between 1999 and 2007, DOD awarded 248 ESPCs for a value exceeding $2.8 billion

(summarized in Table 7). ESPCs are funded through O&M appropriations. The Congressional

Budget Office’s (CBO) view of ESPCs found that they imposed a future financial obligation on

the federal government. CBO began scoring ESPCs as mandatory spending, coinciding with the

expiration of the 1990 Budget Enforcement Act (P.L. 101-508) pay-as-you-go (PAYGO) rules.

The CBO scoring reflects how ESPCs create future commitments to appropriations, consistent

with how appropriations-funded ECIPs would be scored throughout the budget.30 The

Government Accountability Office (GAO) finds that the benefits of ESPCs could be achieved

using upfront funds (that is, fully funded in advance) and with lower financing costs, but agencies

generally do not receive sufficient funds upfront for doing so and see ESPCs as a necessary

supplement to upfront funding in order to achieve the energy savings benefits.31

29

The Federal Energy Management Program (FEMP) established the U. S. Department of Energy Qualified List of

Energy Service Companies (DOE Qualified List) in accordance with the Energy Policy Act of 1992 and 10 CFR 436.

The DOE Qualified List (PDF 270 KB) comprises private industry firms that have submitted an application and been

qualified by the Qualification Review Board. This board consists of representatives from the Federal Interagency

Energy Management Task Force and DOE staff.

http://www1.eere.energy.gov/femp/financing/superespcs_qualifiedescos.html

30

For further information, see CRS Report RL32543, Energy Savings Performance Contracts: Reauthorization Issues.

31

U.S. Government Accountability Office, Energy Savings - Performance Contracts Offer Benefits, but Vigilance Is

Needed to Protect Government Interests, GAO-05-340, June 2005, http://www.gao.gov/new.items/d05340.pdf.

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ŗŘȱ

ޙЛ–Ž—ȱ˜ȱŽŽ—œŽȱŠŒ’•’’Žœȱ—Ž›¢ȱ˜—œŽ›ŸŠ’˜—ȱ˜•’Œ’ŽœȱŠ—ȱ™Ž—’—ȱ

ȱ

Table 7. DOD ESPCs

Contract Numbers (#) vs. Contract Value ($ million)

FY1999

FY2000

FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

ESPC #

45

58

30

32

34

5

15

19

10

Value $

10.9

414.6

318.4

596.6

549.9

16.2

141.0

586.5

170.4

ffice of the Deputy Under Secretary of Defense for Installations & Energy, Energy Management

Report page, http://www.acq.osd.mil/ie/energy/energymgmt_report/main.shtml.

Notes: During FY2004, ESPC authority had temporarily lapsed. Federal Agencies are required to submit an

Energy Management Report annually to DOE’s Federal Energy Management Program under NECPA as amended

by EPACT 1992. The format and content has changed several times since 2004 due to EPACT and Executive

Order 13423. It will likely change again for FY2008 due to EISA 2007. DOD also provides the report directly to

the congressional defense committees.

Source: O

’•’¢ȱ—Ž›¢ȱŠŸ’—œȱ˜—›ŠŒœȱ

DOD Utility Energy Savings Contracts (UESC) are financed and implemented through utility

companies, similar in some respects to ESPCs. Essentially, the same energy efficiency

improvements can be accomplished through UESCs as ESPCs. With a UESC, the utility typically

finances the capital costs of the project, and is repaid over the contract term from the cost savings

generated by the energy efficiency measures.32 The installation or facility pays for the

improvement through O&M appropriated funds. There are no statutory energy savings guarantees

for UESCs, unlike ESPCs. Although a facility manager may request such a guarantee at the time

of a project’s installation. Between 1999 and 2006, DOD reported placing 241 UESCs worth

$967.6 million (summarized in Table 8).

Table 8. DOD UESCs

Contract Numbers (#) vs. Contract Value ($ million)

FY1999

FY2000

FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

UESC #

0

41

44

41

31

20

22

17

25

Value $

0.9

148.7

140.9

123.2

152.1

86.9

83.5

97.5

133.9

Office of the Deputy Under Secretary of Defense for Installations & Energy, Energy Management

Report page, http://www.acq.osd.mil/ie/energy/energymgmt_report/main.shtml.

Source:

˜•’Œ¢ȱ˜—œ’Ž›Š’˜—œȱŠ—ȱ™’˜—œȱ˜›ȱ˜—›Žœœȱ

DOD spending on energy consumed by its facilities worldwide can make up as much as 23% of

its annual Operating and Maintenance budget. More than $3.4 billion was spent annually in

FY2006 and FY2007. DOD has steadily decreased its buildings’ energy-intensity in response to

mandated energy reduction goals through investment in energy conservation projects. Over the

last decade, Congress has appropriated $443 million in DOD energy conservation projects, DOD

investment in energy conservation adds another $250 million, and the value of Energy Savings

32

U.S. Department of Energy Federal Energy Management Program, Financing Mechanisms, Utility Energy Savings

Contracts

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ŗřȱ

ȱ

ޙЛ–Ž—ȱ˜ȱŽŽ—œŽȱŠŒ’•’’Žœȱ—Ž›¢ȱ˜—œŽ›ŸŠ’˜—ȱ˜•’Œ’ŽœȱŠ—ȱ™Ž—’—ȱ

Performance Contracts (ESPCs) exceeds $2.8 billion. Despite the investments, DOD annual

energy spending has been increasing since 1999, as have electricity and particularly natural gas

prices. Further investment in energy conservation is expected to meet the future mandated energy

reduction goals.

ESPCs have become a preferred means of making energy efficiency improvements because, in

part, funds do not have to be directly appropriated (or programmed). However, as Energy Savings

Contractors (ESCOs) assume a certain risk in guaranteeing savings through ESPCs, the risk is

factored into their cost. Also, ESPC commitments may extend up to 25 years—an indication of

the time needed to recoup the ESCO’s investment. As energy efficiency improvements made

through UESCs do not necessarily come with savings guarantees and thus risk, the lower cost

may translate into higher savings. Federal agencies may not be taking full advantage of this

savings opportunity. This may be due to individual utilities limited role promoting UESCs, the

number of utilties that may offer UESCs, installation managers’ unfamiliarity with UESCs, and

ESCOs influence in promoting ESPCs.

Aging buildings may have limits in meeting energy efficiency goals, and investment in energy

conservation may eventually see diminishing returns in energy savings. Overall goals may be

achieved, ultimately, through the replacement of older building with new buildings built to LEED

standards and even newer “high-performance” building standards being developed the American

Society of Heating, Refrigerating and Air Conditioning Engineers (ASHRAE).33 Whether future

investments in energy conservation projects and ESPC commitments should give way to

replacing older inefficient building with new construction is an issue that Congress may

eventually wish to consider. Authorizing ESPCs for building renovation could be used to install

more efficient equipment, better insulation and windows, and possibly renewable energy sources

whose installation might not be accomplished by appropriation alone. Congress may wish to

consider expanding the EISA Section 518 EPSC provision (non-building applications), to study

renovating energy-inefficient buildings to LEED and high-performance standards.

Under EISA 2007, Congress has authorized mixing appropriated funds with private financing of

ESPCs. How funds appropriated for O&M may be applied to ESPCs, though, is unclear. DOE has

not yet promulgated rules on the new authority. The lack of rules may prove to be a critical barrier

to accomplishing DOD-related provisions in the American Recovery and Reinvestment Act

(ARRA) of 2009 (P.L. 111-5). ARRA provides nearly $3.7 billion under O&M for Defense

Facilities Sustainment, Restoration, and Modernization that may be applied toward energy

efficiency projects and repair and modernization of DOD facilities.34 Another $300 million for

Research Development, Test and Evaluation may be applied to improvements in energy

generation on military installations. The combined funding nearly matches the $4.2 billion in

ECIP, ESPC, and UESC spending from FY1999 through FY2007. The ARRA appropriation,

however, remains available for obligation until September 30, 2010. Acquisition planning for the

improvements, not including the year-long acquisition process, may exceed the time–frame of

funding availability.35 Timely acquisition, to meet the economic stimulus intent of ARRA, may

33

The ASHRAE initiative, known as the Standard for the Design of High-Performance Green Buildings Except LowRise Residential Buildings, or Standard 189, is being developed with the U.S. Green Building Council (USGBC) and

the Illuminating Engineering Society of North America (IESNA), and could ultimately become a prerequisite under the

LEED rating system. http://archrecord.construction.com/news/daily/archives/080131standards.asp.

34

U.S. Congress, Joint Committee of Conference, Joint Explanatory Statement - Division A to Accompany H.R. 1 American Recovery and Reinvestment Act of 2009, committee print, 111th Cong., 1st sess., February 12, 2009.

35

See CRS Report RL34026, Defense Acquisitions: Overview, Issues, and Options for Congress, by (name redacted).

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ŗŚȱ

ȱ

ޙЛ–Ž—ȱ˜ȱŽŽ—œŽȱŠŒ’•’’Žœȱ—Ž›¢ȱ˜—œŽ›ŸŠ’˜—ȱ˜•’Œ’ŽœȱŠ—ȱ™Ž—’—ȱ

also depend on having an adequately trained acquisition workforce in place. Given the lack of

rules, comparatively high funding level, and short obligation period, Congress may wish to

consider whether DOD may act effectively on the provisions.

Finally, though DOD’s average utility energy costs fall in the range of national energy prices,

Congress may wish to consider how DOD’s energy costs (not just consumption) could be reduced

further. As the single largest national energy consumer, DOD might leverage its buying power in

negotiating lower utility rates.

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ŗśȱ

ȱ

™™Ž—’¡ǯ ސ’œ•Š’˜—ȱ

Table A-1.Legislation Introduced Since the 107th Congress Addressing DOD Facility Energy Consumption

Congress

107th

ȬŗŜȱ

Bill #

H.R. 4546

Sponsor

Rep.

Stump

Bill Title

Bob Stump National Defense Authorization Act for Fiscal Year 2003

12/2/2002 Became Public Law No: 107-314

[from summary of conference bill]

“(Sec. 245) Directs the Secretary to carry out a vehicle fuel cell

technology development program in cooperation with the Secretary of

Energy, appropriate Federal agencies, and industry. Earmarks specified

RDT&E funds for the program.”

...............

“Title XXIV: Defense Agencies - (Sec. 2401) Authorizes the Secretary to

acquire real property and carry out military construction projects in

specified amounts at specified installations and locations. Authorizes the

Secretary to carry out certain energy conservation projects.”

.............

“Title XXVIII: General Provisions - Subtitle A: Military Construction

Program and Military Family Housing Changes ...............

“(Sec. 2803) Authorizes the Secretary of the Navy to: (1) carry out up to

three pilot projects to use the private sector for the acquisition or

construction of military unaccompanied housing in the United States,

including any U.S. territory or possession; and (2) assign members of the

armed forces to such housing. Authorizes the Secretary of Defense to

set higher rates of partial basic allowance for housing for members

assigned to such units. Utilizes the Department of Defense Housing

Improvement Fund to carry out activities under the pilot projects.

Authorizes a transfer to such Fund, subject to 90 days prior notification

of the appropriate congressional committees, from amounts

appropriated for construction of military unaccompanied housing

projects in military construction accounts. Requires a report from the

Secretary of the Navy to the appropriate congressional committees on

pilot project activities and related contractual information. Terminates

Subject Area

Vehicle fuel cell technology development

Energy conservation projects by defense

agencies.

Military housing

ȱ

Congress

Bill #

Sponsor

107th

S. 1358

Sen. Bayh

107th

S. 1418

Sen. Levin

Ȭŗŝȱ

Bill Title

pilot project authority at the end of FY 2007.”

.................

“(Sec. 2805) Allows up to two-thirds of energy savings realized at military

installations to remain available until expended (currently, available for up

to two years).”

Federal Facility Energy Management Act of 2001.

“Amends the Energy Conservation and Production Act to provide that

Federal building energy efficiency standards shall contain specifications

that meet or exceed those of the International Residential Code.

Instructs the Secretary of Energy to promulgate revised Federal building

energy efficiency performance standards following prescribed guidelines.

Amends the Department of Energy Organization Act (DOE) to establish

within DOE the Office of Federal Energy Productivity.

Amends the National Energy Conservation Policy Act to mandate that

each agency: (1) apply energy conservation measures to its Federal

facilities so that specified energy reduction is implemented following

prescribed calendar year percentages; (2) meter or submeter its energy

use; and (3) procure specified energy efficient products. Instructs the

Architect of the Capitol to develop and implement energy and water

savings measures in congressional buildings. Declares that the aggregate

annual payments by a Federal agency under an energy savings

performance contract may take into account savings resulting from

certain reduced costs of operation and maintenance.

Establishes the Federal Energy Bank to make loans to Federal agencies to

implement energy savings performance projects.

Amends the Energy Policy Act of 1992 to prescribe: (1) minimum

average fuel economy guidelines for the Federal vehicle fleet; and (2)

operating parameters for the use of alternative fuels. “

Military Construction Authorization Act for Fiscal Year 2002.

For further action, see S. 1438, which became P.L. 107-107 on

12/28/2001.

“Title XXIV: Defense Agencies - Authorizes the Secretary of Defense to

acquire real property and carry out military construction projects in

specified amounts at specified installations and locations. Authorizes the

Secretary to carry out certain energy conservation projects. Authorizes

Subject Area

Federal buildings energy efficiency standards.

Energy conservation projects by defense

agencies.

Pilot Efficient Facilities Initiative.

ȱ

Congress

Bill #

Sponsor

107th

S. 2514

Sen. Levin

ȬŗŞȱ

Bill Title

appropriations to the Department of Defense (DOD) for fiscal years

after 2001 military construction, land acquisition, and military family

housing functions of DOD. Limits the total cost of construction projects

authorized by this title.”

.........................

“Subtitle B: Real Property and Facilities Administration - Amends the

Federal Property and Administrative Services Act of 1949 to make the

proceeds of sales of DOD property from a closed military installation

available for facility maintenance and repair or environmental restoration

by the military department that had jurisdiction over such property.”

“(Sec. 2812) Authorizes the Secretary to carry out a pilot program, to be

known as the Pilot Efficient Facilities Initiative, to determine the potential

for increasing the efficiency and effectiveness of the operation of military

installations. Authorizes the Secretary to designate up to two

installations of each military department to participate (requiring

notification to the defense committees of the installations chosen).

Requires a management plan for each installation. Establishes in the

Treasury the Installation Efficiency Project Fund to manage capital assets

and provide support services at participating installations. Terminates the

Secretary’s authority to carry out the Initiative four years after the

enactment of this Act. Requires a report to Congress.”

Bob Stump National Defense Authorization Act for Fiscal Year 2003.

Note: H.R. 4546 and S. 2514 were defense authorization bills from the

House and Senate Armed Services Committees respectively. On

6/27/2002, the Senate substituted S. 2514 in H.R. 4546, as passed Senate.

For further action, see H.R. 4546, which became Public Law 107-314 on

12/2/2002.

[“(Sec. 218) Earmarks specified Navy RDT&E funds for the

demonstration of renewable energy use program.” Included in amended

Senate passed bill, not in final P.L.]

...................

“(Sec. 244) Directs the Secretary to carry out a vehicle fuel cell

technology development program in cooperation with the Secretary of

Energy, the heads of appropriate Federal agencies, and industry. Earmarks

specified RDT&E funds for the program.”

................

“Title XXIV: Defense Agencies - Authorizes the Secretary to acquire real

Subject Area

Renewable energy demonstration

Vehicle fuel cell technology development

Energy conservation projects by defense

agencies.

Military housing

ȱ

Congress

Bill #

Sponsor

107th

S. 2515

Sen. Levin

108th

H.R. 3339

Rep. Wilson

108th

S. 2318

Sen. Collins

Ȭŗşȱ

Bill Title

Subject Area

property and carry out military construction projects in specified

amounts at specified installations and locations. Authorizes the Secretary

to carry out certain energy conservation projects. Authorizes

appropriations to DOD for fiscal years after 2002 for military

construction, land acquisition, and military family housing functions of

DOD. Limits the total cost of construction projects authorized by this

title.”

Bob Stump Department of Defense Authorization Act for Fiscal Year

2003.

“Note: S. 2515 corresponded to S. 2514 Division A (Department of

Defense authorization). For further action, see H.R. 4546, which became

P.L. 107-314 on 12/2/2002.”

[“(Sec. 218) Earmarks specified Navy RDT&E funds for the

demonstration of renewable energy use program.” Included in amended

Senate passed bill, not in final P.L.]

.................

“(Sec. 244) Directs the Secretary to carry out a vehicle fuel cell

technology development program in cooperation with the Secretary of

Energy, the heads of appropriate Federal agencies, and industry. Earmarks

specified RDT&E funds for the program.”

National Defense Energy Savings Act of 2003.

Energy Savings Performance Contracts

“Authorizes the Secretary of Defense to: (1) enter into an energy savings

performance contract (for a period of up to 25 years) for the sole

purpose of achieving ancillary energy savings and benefits; and (2) incur

obligations under the contract to finance energy conservation measures

so long as guaranteed savings exceed the debt service requirements.

Directs the Secretary to issue final rules establishing implementation

procedures and methods that meet specified requirements.

Authorizes the Secretary to implement a pilot program to enter into up

to ten energy savings performance contracts in nonbuilding applications.

National Defense Energy Savings Act of 2004.

Energy Savings Performance Contracts

“Authorizes the Secretary of Defense to: (1) enter into an energy savings

performance contract in order to achieve energy savings and ancillary

benefits; (2) incur obligations under the contract to finance energy

conservation measures so long as guaranteed savings exceed the debt

service requirements; and (3) implement a pilot program to enter into up

ȱ

Congress

Bill #

Sponsor

109th

H.R. 3263

Rep. Wamp

109th

S. 2025

Sen. Bayh

109th

S. 2747

Sen. Bingaman

ȬŘŖȱ

Bill Title

to ten energy savings performance contracts for the purpose of achieving

energy savings, secondary savings, and incidental benefits, in nonbuilding

applications.

Sets forth implementation guidelines, including contract terms and

conditions.”

Energy Efficiency Cornerstone Act of 2005.

“Amends the Energy Conservation and Production Act (ECPA) to: (1)

subject federal building performance standards to the 2004 International

Energy Conservation Code; and (2) require all housing constructed

under the military housing privatization initiative of the Department of

Defense to be Energy Star qualified and equipped with Energy Star

appliances and FEMP designated appliances, including Energy Star

lighting.”

“Amends EPCA and the Energy Policy Act of 1992 to modify compliance

requirements governing alternative fuel use by light duty federal

vehicles.”

“Amends federal transportation law to modify standards for executive

agency automobiles.”

Vehicle and Fuel Choices for American Security Act.

“Directs the Secretary of Energy to issue regulations requiring that by

FY2016 each federal agency achieve at least a 30% reduction in its fleet

petroleum consumption.”

Enhanced Energy Security Act of 2006.

“Amends the Energy Policy and Conservation Act to set forth federal

fleet conservation requirements to achieve reduced petroleum

consumption.”

..............

“Amends the Energy Policy Act of 2005 to: (1) provide loan guarantees

for fuel-efficient automobile manufacturers and suppliers; and (2) require

that the federal government consume specified amounts of renewable

energy.”

.............

“Amends the Public Utility Regulatory Policies Act of 1978 to: (1) set

forth a federal renewable portfolio standard; and (2) require state

regulatory authorities to implement energy efficiency resource programs

Subject Area

Federal buildings energy efficiency standards.

Military housing Energy Star rated.

Alternative fuel use by light duty federal

vehicles.

Federal fleet reduced petroleum

consumption.

Federal fleet reduced petroleum

consumption.

Federal government renewable energy

consumption requirement - electricity and

transportation fuel.

Energy savings performance contracts.

ȱ

Congress

Bill #

Sponsor

110th

H.R. 670

Rep. Engel

110th

H.R. 6729

Rep. Dingell

110th

S. 1602

Sen. Hagel

111th

H.R. 1

Rep. Obey

ȬŘŗȱ

Bill Title

that include electric utilities and gas utilities.”

“Amends the National Energy Conservation Policy Act to authorize a

federal agency to: (1) enter into a separate contract for energy services

and conservation measures; and (2) provide the financing necessary to

implement such contract.”

Dependence Reduction through Innovation in Vehicles and Energy Act.

“Directs the Secretary of Energy to: (1) require at least a 20% reduction

in the federal fleets’ petroleum consumption (including that at least 30%

of federal vehicles required to be alternative fuel vehicles be flexible fuel

hybrid or flexible fuel plug-in hybrid vehicles); (2) submit to Congress an

action plan calling for a specified graduated percentage of the nation’s

ground fuel demand to be supplied by fuels derived from sources other

than oil; and (3) carry out a plug-in hybrid electric vehicle prize

program.”

To encourage greater energy efficiency in building codes

Update national Model Building Codes by 30% in editions of each model

code or standard released after 2010, and 50% after 2020.

Clean, Reliable, Efficient and Secure Energy Act of 2007.

“Requires the total amount of fuel utilized by the Department of Defense

in a calendar year to be coal-to-liquid fuel, gas-to-liquid fuel, or both.”

............

“Prescribes requirements governing energy efficiency in federal buildings

and public schools.”

American Recovery and Reinvestment Act (ARRA) of 2009 (P.L. 111-5)

Covering expenses associated with maintaining the physical plant at

DOD posts, camps and stations, the conference agreement directs

$3,686,500,000 toward investment in energy efficiency projects and to

repair and modernize DOD facilities. The funding is available only for

facilities in the United States and its territories, and remains available for

obligation until September 30, 2010.

The conference agreement provides $300,000,000, split equally among

Army; Air Force, Navy, and Defense-wide for funding of research,

development, test and evaluation projects, including pilot projects,

demonstrations and energy efficient manufacturing enhancements. The

funds remain available for obligation until September 30, 2010 for

Subject Area

Federal fleet reduced petroleum

consumption.

Federal fleet requirement for flexible fuel hybrid or plug-in hybrid vehicles.

State Building energy efficiency codes.

Coal-to-liquid or gas-to-liquid fuel

requirement.

Federal buildings energy efficiency standards

Defense Facilities Sustainment, Restoration

and Modernization

Near Term Energy Efficiency Technology

Demonstrations and Research

ȱ

Congress

Bill #

Sponsor

improvements in energy generation and efficiency, transmission,

regulation, storage, and for use on military installations and within

operational forces, to include research and development of energy from

fuel cells, wind, solar, and other renewable energy sources to include

biofuels and bioenergy.

Compiled by (name redacted), CRS Information Research Specialist.

Notes: From LIS Bill Summary (as introduced).

Source:

ȬŘŘȱ

Bill Title

Subject Area

ޙЛ–Ž—ȱ˜ȱŽŽ—œŽȱŠŒ’•’’Žœȱ—Ž›¢ȱ˜—œŽ›ŸŠ’˜—ȱ˜•’Œ’ŽœȱŠ—ȱ™Ž—’—ȱ

ȱ

Table A-2. National Defense Authorization Acts

Public Law

P.L. 106-65

P.L. 106-398

P.L. 107-107

P.L. 107-314

P.L. 108-136

P.L. 108-375

P.L. 109-163

P.L. 109-364

P.L. 110-181

P.L. 110-417

Title

National Defense Authorization Act for FY2000. Sec. 2404. Energy Conservation Projects. Using

amounts appropriated pursuant to the authorization of appropriations in section 2405(a)(6), the

Secretary of Defense may carry out energy conservation projects under section 2865 of title10,

United States Code, in the amount of $1,268,000.

Floyd D. Spence National Defense Authorization Act for FY2001. Sec. 2402. Energy Conservation

Projects. Using amounts appropriated pursuant to the authorization of appropriations in section

2403(a)(7), the Secretary of Defense may carry out energy conservation projects under section

2865 of title 10, United States Code, in the amount of $15,000,000.

National Defense Authorization Act for FY2002. Sec. 2402. Energy Conservation Projects. Using

amounts appropriated pursuant to the authorization of appropriations in section 2403(a)(6), the

Secretary of Defense may carry out energy conservation projects under section 2865of title10,

United States Code, in the amount of $27,100,000.

Bob Stump National Defense Authorization Act for FY2003. Sec. 2403. Energy Conservation

Projects. Using amounts appropriated pursuant to the authorization of appropriations in section

2404(a)(6), the Secretary of Defense may carry out energy conservation projects under section

2865 of title10, United States Code, in the amount of $34,531,000.

National Defense Authorization Act for FY2004. Sec. 2404. Energy Conservation Projects. Using

amounts appropriated pursuant to the authorization of appropriations in section 2405(a)(6), the

Secretary of Defense may carry out energy conservation projects under section 2865 of title 10,

United States Code, in the amount of $50,000,000.

Ronald W. Reagan National Defense Authorization Act for FY2005. Sec. 2403 Energy Conservation

Projects. Using amounts appropriated pursuant to the authorization of appropriations in section

2404(a)(7), the Secretary of Defense may carry out energy conservation projects under section

2865 of title 10, United States Code, in the amount of $50,000,000.

National Defense Authorization Act for FY2006. Sec. 2402 Energy Conservation Projects. Using

amounts appropriated pursuant to the authorization of appropriations in section 2403(a)(5), the

Secretary of Defense may carry out energy conservation projects under section 2865 of title 10,

United States Code, in the amount of $50,000,000.

John Warner National Defense Authorization Act for FY2007. Sec. 2403 Energy Conservation

Projects. Using amounts appropriated pursuant to the authorization of appropriations in section

2405(a)(6), the Secretary of Defense may carry out energy conservation projects under section

2865 of title 10, United States Code, in the amount of $55,000,000.

National Defense Authorization Act for FY2008. Sec. 2402. Energy Conservation Projects. Using

amounts appropriated pursuant to the authorization of appropriations in section 2403(a)(7), the

Secretary of Defense may carry out energy conservation projects under chapter 173 of title 10,

United States Code, in the amount of $70,000,000.

Duncan Hunter National Defense Authorization Act for FY2009. Sec. 2402 Energy Conservation

Projects. Using amounts appropriated pursuant to the authorization of appropriations in section

2403(a)(6), the Secretary of Defense may carry out energy conservation projects under chapter 173

of title 10, United States Code, in the amount of $90,000,000.

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

Řřȱ

ȱ

ޙЛ–Ž—ȱ˜ȱŽŽ—œŽȱŠŒ’•’’Žœȱ—Ž›¢ȱ˜—œŽ›ŸŠ’˜—ȱ˜•’Œ’ŽœȱŠ—ȱ™Ž—’—ȱ

ž‘˜›ȱ˜—ŠŒȱ —˜›–Š’˜—ȱ

(name redacted)

Specialist in Energy and Energy Infrastructure

Policy

/redacted/@crs.loc.gov, 7-....

Œ”—˜ •Ž–Ž—œȱ

(name redacted), Information Research Specialist

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

ŘŚȱ

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