NECPA Part 3—Federal Energy Management Amendments (article from FEMP Focus Special Issue 2006)

February 27, 2006

Sections 101 through 104 of the Energy Policy Act of 2005 (P.L. 109-58) amend Part 3 of Title V of the National Energy Conservation Policy Act (NECPA) (42 U.S.C. 8251 8261). NECPA had also been amended in previous years by the Federal Energy Management Improvement Act of 1988 (P.L. 100-615), the Energy Policy Act of 1992 (P.L. 102-486). Printed below are the pertinent sections of NECPA as amended by EPACT 2005 Sections 101 through 104.

PART 3—FEDERAL ENERGY MANAGEMENT

SEC. 541. FINDINGS.

The Congress 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 opportunities in the Federal Government to conserve and make more efficient use of energy through improved operations and maintenance, the use of new energy efficient technologies, and the application and achievement of energy efficient design and construction;

  4. Federal energy conservation measures can be financed at little or no cost to the Federal Government by using private investment capital made available through contracts authorized by title VIII of this Act; and

  5. an increase in energy efficiency by the Federal Government would benefit the Nation by reducing the cost of government, reducing national dependence on foreign energy resources, and demonstrating the benefits of greater energy efficiency to the Nation.

SEC. 542. PURPOSE.

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 Government.

SEC. 543. ENERGY MANAGEMENT REQUIREMENTS.

  1. 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, the Federal buildings of the agency (including each industrial or laboratory facility) so that the energy consumption per gross square foot of the Federal buildings of the agency in fiscal years 2006 through 2015 is reduced, as with the energy consumption per gross square foot of the Federal buildings of the agency in fiscal year 2003, by the percentage specified in the following table:

      Fiscal Year Percentage Reduction
      2006 2
      2007 4
      2008 6
      2009 8
      2010 10
      2011 12
      2012 14
      2013 16
      2014 18
      2015 20


    2. Reporting baseline.—The energy reduction goals and baseline established in paragraph (1) of section 543(a) of the National Energy Conservation Policy Act (42 U.S.C. 8253(a)(1)), as amended by this subsection, supersede all previous goals and baselines under such paragraph, and related reporting requirements.

    3. Not later than December 31, 2014, the Secretary shall review the results of the implementation of the energy performance requirement established under paragraph (1) and submit to Congress recommendations concerning energy performance requirements for fiscal years 2016 through 2025.

  2. ENERGY MANAGEMENT REQUIREMENT FOR FEDERAL AGENCIES.—
    1. Not later than January 1, 2005, each agency shall, to the maximum extent 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 544.

    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 requirements 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 Congress promptly in writing with an explanation 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 facilities 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.

  3. EXCLUSIONS.—
      1. An agency may exclude, from the energy performance requirement for a fiscal year established under subsection (a) and the energy management requirement established under subsection (b), any Federal building or collection of Federal buildings, if the head of the agency finds that—

        1. compliance with those requirements would be impracticable;

        2. the agency has completed and submitted all federally required energy management reports;

        3. the agency has achieved compliance with the energy efficiency requirements of this Act, the Energy Policy Act of 1992, Executive orders, and other Federal law; and

        4. the agency has implemented all practicable, life cycle cost-effective projects with respect to the Federal building or collection of Federal buildings to be excluded.

      2. A finding of impracticability under subparagraph (A)(i) shall be based on—

        1. the energy intensiveness of activities carried out in the Federal building or collection of Federal buildings; or

        2. the fact that the Federal building or collection of Federal buildings is used in the performance of a national security function.

    1. Each agency shall identify and list, in each report made under section 548(a), the Federal buildings designated by it for such exclusion. The Secretary shall review such findings for consistency with the standards for exclusion set forth in paragraph (1), and may within 90 days after receipt of the findings, reverse the exclusion. In the case of any such reversal, the agency shall comply with the requirements of subsections (a) and (b)(1) for the building concerned.

    2. Not later than 180 days after the date of enactment of this paragraph, the Secretary shall issue guidelines that establish criteria for exclusions under paragraph (1).

  4. IMPLEMENTATION STEPS.—The Secretary shall consult with the Secretary of Defense and the Administrator of General Services in developing guidelines for the implementation of this part. To meet the requirements 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 requirements, including how it will—

      1. designate personnel primarily responsible for achieving such requirements;

      2. identify high priority projects through calculation of payback periods;

      3. take maximum advantage of contracts authorized under Title VIII of this Act, of financial incentives and other services provided by utilities for efficiency investment, and of other forms of financing to reduce the direct costs to the Government; and

      4. otherwise implement this part.

    2. perform energy surveys of its Federal buildings to the extent necessary and update such surveys as needed, incorporating any relevant information obtained from the survey conducted pursuant to Section 550;

    3. using such surveys, determine the cost and payback period of energy and water conservation measures likely to achieve the requirements 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 544; and

    5. ensure that the operation and maintenance procedures applied under this section are continued.

  5. METERING OF ENERGY USE.—
    1. DEADLINE.—By October 1, 2012, in accordance with guidelines established by the Secretary under paragraph (2), all Federal buildings shall, for the purposes of efficient use of energy and reduction in the cost of electricity used in such buildings, be metered. Each agency shall use, to the maximum extent practicable, advanced meters or advanced metering devices that provide data at least daily and that measure at least hourly consumption of electricity in the Federal buildings of the agency. Such data shall be incorporated into existing Federal energy tracking systems and made available to Federal facility managers.

    2. GUIDELINES.—
      1. IN GENERAL.—Not later than 180 days after the date of enactment of this subsection, the Secretary, in consultation with the Department of Defense, the General Services Administration, representatives from the metering industry, utility industry, energy services industry, energy efficiency industry, energy efficiency advocacy organizations, national laboratories, universities, and Federal facility managers, shall establish guidelines for agencies to carry out paragraph (1).

      2. REQUIREMENTS FOR GUIDELINES.—
        The guidelines shall—
        1. take into consideration—
          1. the cost of metering and the reduced cost of operation and maintenance expected to result from metering;

          2. the extent to which metering is expected to result in increased potential for energy management, increased potential for energy savings and energy efficiency improvement, and cost and energy savings due to utility contract aggregation; and

          3. the measurement and verification protocols of the Department of Energy;

        2. include recommendations concerning the amount of funds and the number of trained personnel necessary to gather and use the metering information to track and reduce energy use;

        3. establish priorities for types and locations of buildings to be metered based on cost-effectiveness and a schedule of one or more dates, not later than 1 year after the date of issuance of the guidelines, on which the requirements specified in paragraph (1) shall take effect; and

        4. establish exclusions from the requirements specified in paragraph (1) based on the de minimis quantity of energy use of a Federal building, industrial process, or structure.

    3. PLAN.—Not later than 6 months after the date guidelines are established under paragraph (2), in a report submitted by the agency under section 548(a), each agency shall submit to the Secretary a plan describing how the agency will implement the requirements of paragraph (1), including (A) how the agency will designate personnel primarily responsible for achieving the requirements and (B) demonstration by the agency, complete with documentation, of any finding that advanced meters or advanced metering devices, as defined in paragraph (1), are not practicable.

SEC. 544. ESTABLISHMENT AND USE OF LIFE CYCLE COST METHODS AND PROCEDURES.

(No change.)

SEC. 545. BUDGET TREATMENT FOR ENERGY CONSERVATION MEASURES.

(No change.)

SEC. 546. INCENTIVES FOR AGENCIES.

(No change to subsection (a) through subsection (d).)

  1. RETENTION OF ENERGY AND WATER SAVINGS.—An agency may retain any funds appropriated to that agency for energy expenditures, water expenditures, or wastewater treatment expenditures, at buildings subject to the requirements of section 543(a) and (b), that are not made because of energy savings or water savings. Except as otherwise provided by law, such funds may be used only for energy efficiency, water conservation, or unconventional and renewable energy resources projects. Such projects shall be subject to the requirements of section 3307 of title 40, United States Code.

SEC. 547. INTERAGENCY ENERGY MANAGEMENT TASK FORCE.

(No change.)

SEC. 548. REPORTS.

  1. 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 543; and

    2. the procedures being used by the agency pursuant to Section 546(a)(2), the number of contracts entered into by such agency under Title VIII of this act, the energy and cost savings that have resulted from such contracts, the use of such cost savings under Section 546(c), and any problem encountered in entering into such contracts and otherwise implementing Section 546.

  2. REPORTS TO THE PRESIDENT AND CONGRESS.—The Secretary shall report not later than April 2 of each year, with respect to each fiscal year beginning after the date of the enactment of this subsection, to the President and Congress—
    1. on all activities carried out under this part and on the progress made toward achievement of the objectives of this part, including—
      1. a copy of the list of the exclusions made under Sections 543(a)(2) and 543(c)(3); and

      2. a statement detailing the amount of funds awarded to each agency under Section 546(b), the energy and water conservation 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 realized, the reasons such savings were not realized, and proposals for, and projected costs of, achieving such projected savings in the future.

    2. the number of contracts entered into by all agencies under Title VIII of this Act, the difficulties (if any) encountered in attempting to enter into such contracts, and the proposed solutions to those difficulties; and

    3. the extent and nature of interagency exchange of information concerning the conservation and efficient utilization of energy.

  3. OTHER REPORT.—The Secretary, in consultation with the Administrator of General Services, shall—
    1. conduct a study and evaluate legal, institutional, and other constraints to connecting buildings owned or leased by the Federal Government to district heating and district cooling systems; and

    2. not later than 18 months after the date of the enactment of this subsection, 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 systems.

SEC. 549. DEMONSTRATION OF NEW TECHNOLOGY.

(No change.)

SEC. 550. SURVEY OF ENERGY SAVING POTENTIAL.

  1. IN GENERAL.—The Secretary shall, in consultation with the Interagency Energy Management Task Force established under Section 547, carry out an energy survey for the purposes of—

    1. determining the maximum potential cost effective energy savings that may be achieved in a representative sample of buildings owned or leased by the Federal Government in different areas of the country;

    2. making recommendations for cost effective energy efficiency and renewable energy improvements in those buildings and in other similar Federal buildings; and

    3. identifying barriers which may prevent an agency's ability to comply with Section 543 and other energy management goals.

  2. IMPLEMENTATION.—
    1. The Secretary shall transmit to the Committee on Energy and Natural Resources and the Committee on Governmental Affairs of the Senate and the Committee on Energy and Commerce, the Committee on Government Operations, and the Committee on Public Works and Transportation of the House of Representatives, within 180 days after the date of the enactment of the Energy Policy Act of 1992, a plan for implementing this section.

    2. The Secretary shall designate buildings to be surveyed in the project so as to obtain a sample of the buildings of the types and in the climates that is representative of buildings owned or leased by Federal agencies in the United States that consume the major portion of the energy consumed in Federal buildings. Such sample shall include, where appropriate, the following types of Federal facility space:

      1. Housing.
      2. Storage.
      3. Office.
      4. Services.
      5. Schools.
      6. Research and Development.
      7. Industrial.
      8. Prisons.
      9. Hospitals.

    3. For purposes of this section, an improvement shall be considered cost effective if the cost of the energy saved or displaced by the improvement exceeds the cost of the improvement over the remaining life of a Federal building or the remaining term of a lease of a building leased by the Federal Government as determined by the life cycle costing methodology developed under Section 544.

  3. PERSONNEL.—
    1. In carrying out this section, the Secretary shall utilize personnel who are—
      1. employees of the Department of Energy; or
      2. selected by the agencies utilizing the buildings which are being surveyed under this section.

    2. Such personnel shall be detailed for the purpose of carrying out this section without any reduction of salary or benefits.

  4. REPORT.—As soon as practicable after the completion of the project carried out under this section, the Secretary shall transmit a report of the findings and conclusions of the project to the Committee on Energy and Natural Resources and the Committee on Governmental Affairs of the Senate, the Committee on Energy and Commerce, the Committee on Government Operations, and the Committee on Public Works and Transportation of the House of Representatives, and the agencies who own the buildings involved in such project. Such report shall include an analysis of the probability of each agency achieving each of the energy reduction goals established under section 543(a).

SEC. 551. DEFINITIONS.

For the purposes of this part—

  1. the term 'agency' has the meaning given it in section 551(1) of title 5, United States Code;

  2. the term 'construction' means new construction or substantial rehabilitation of existing structures;

  3. the term 'cogeneration facilities' has the same meaning given such term in section 3(18)(A) of the Federal Power Act (16 U.S.C. 796(18)(A);

  4. the term 'energy conservation 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, cogeneration 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 constructed, renovated, 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 buildings, structures, 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 building over its useful life (including such costs as fuel, energy, labor, and replacement components) determined on the basis of a systematic evaluation and comparison of alternative 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.

SEC. 552. ENERGY AND WATER SAVINGS MEASURES IN CONGRESSIONAL BUILDINGS.

  1. IN GENERAL.—The Architect of the Capitol—
    1. shall develop, update, and implement a cost-effective energy conservation and management plan (referred to in this section as the 'plan') for all facilities administered by Congress referred to in this section as 'congressional buildings') to meet the energy performance requirements for Federal buildings established under section 543(a)(1); and

    2. shall submit the plan to Congress, not later than 180 days after the date of enactment of this section.

  2. PLAN REQUIREMENTS.—The plan shall include—
    1. a description of the life cycle cost analysis used to determine the cost-effectiveness of proposed energy efficiency projects;

    2. a schedule of energy surveys to ensure complete surveys of all congressional buildings every 5 years to determine the cost and payback period of energy and water conservation measures;

    3. a strategy for installation of life cycle cost-effective energy and water conservation measures;

    4. the results of a study of the costs and benefits of installation of submetering in congressional buildings; and

    5. information packages and 'how-to' guides for each Member and employing authority of Congress that detail simple, cost-effective methods to save energy and taxpayer dollars in the workplace.

  3. ANNUAL REPORT.—The Architect of the C