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Energy Management Requirements by Subject

Federal agencies must meet energy management requirements outlined by Federal statutory laws and regulations. This section outlines these requirements organized by subject area, including:

Guidance is available for each of these subject requirements.

The following content outlines energy management requirements within the Executive Order (E.O.) 13514, Energy Independence and Security Act of 2007 (EISA 2007), E.O. 13423, Energy Policy Act of 2005 (EPAct 2005), National Energy Conservation Policy Act (NECPA), and other policies.

Facility Energy Intensity Reduction

EISA 2007 ratifies energy reduction goals for Federal facilities, mandating the following energy intensity reductions per fiscal year relative to a 2003 baseline:

Fiscal Year Percentage Reduction
2006 2
2007 4
2008 9
2009 12
2010 15
2011 18
2012 21
2013 24
2014 27
2015 30

EISA also requires the following energy policy changes and energy management requirements:

  • Adds a section (3313) to Chapter 33 of Title 40 on the use of energy-efficient lighting fixtures and bulbs in Federal buildings.

  • Requires each Federal agency to ensure that major replacements of installed equipment, renovation, or expansion of existing space employ the most energy-efficient designs, systems, equipment, and controls that are life-cycle cost effective.

  • Prohibits Federal agencies, effective December 19, 2010, from leasing buildings that have not earned an ENERGY STAR label. Exemptions are provided if:

    • No space is available in a labeled building that meets the functional requirements of an agency, including location needs
    • The agency proposes to remain in a building that it has occupied previously
    • The agency proposes to lease a building (or space within a building) of historical, architectural, or cultural significance (as defined in section 3306(a)(4) of Title 40, United States Code)
    • The lease is for no more than 10,000 gross square feet of space

E.O. 13423 requires that 15% of the existing Federal capital asset building inventory of each agency incorporate the Guiding Principles for Sustainable Existing Buildings by the end of fiscal year 2015.

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Renewable Energy Use Increase

Multiple laws and regulations define requirements for the use of renewable energy in Federal facilities, including:

EPAct 2005:

  • Defines "renewable energy" as electric 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.

  • Requires the Secretary of Energy to ensure that, to the extent economically feasible and technically practicable, the following amounts of the total electricity consumed by the Federal Government come from renewable energy:

    • Not less than 3% in fiscal years 2007-2009
    • Not less than 5% in fiscal years 2010-2012
    • Not less than 7.5% in fiscal year 2013 and thereafter

  • Provides a bonus to Federal agencies by allowing them to double count renewable energy if it is produced on-site and used at a Federal facility, produced on Federal lands and used at a Federal facility, or produced on Native American land and used at a Federal facility.

  • Requires the installation of 20,000 solar energy systems in Federal buildings by 2010.

E.O. 13423 mandates that at least half of renewable energy used by the Federal Government must come from new renewable sources (in service after January 1, 1999).

EISA 2007 requires 30% of the hot water demand in new Federal buildings (and major renovations) to be met with solar hot water equipment, provided it is life-cycle cost-effective.

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Water Conservation

E.O. 13423 mandates a reduction in water consumption intensity (gallon/square foot) by 16% by the end of fiscal year 2015 from a 2007 baseline.

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

E.O. 13514 expands these requirements, mandating Federal agencies to improve water efficiency by:

  • Reducing potable water consumption intensity 2% annually through fiscal year 2020, or 26% by the end of fiscal year 2020, relative to a fiscal year 2007 baseline.
  • Reducing agency industrial, landscaping, and agricultural water consumption 2% annually, or 20% by the end of fiscal year 2020, relative to a fiscal year 2010 baseline.
  • Identifying, promoting, and implementing water reuse strategies consistent with state law that reduce potable water consumption.

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Greenhouse Gas Management

E.O. 13514 (Section 2) requires each Federal agency to manage greenhouse gases (GHG), including:

  • Within 90 days, establish and report to the CEQ Chair and OMB Director a fiscal year 2020 percentage reduction target of agency-wide scope 1 and scope 2 GHG emissions in absolute terms relative to a fiscal year 2008 baseline.

    • In establishing the target, agencies shall consider reductions associated with:
      • Reducing agency building energy intensity.
      • Increasing agency renewable energy use and on-site projects.
      • Reducing agency use of fossil fuels by:
        • Using low GHG emitting and alternative fuel vehicles.
        • Optimizing vehicle numbers across agency fleets.
        • Reducing petroleum consumption in agency fleets of 20 or more vehicles by 2% annually through fiscal year 2020 relative to a fiscal year 2005 baseline.

    • Where appropriate, this target shall exclude direct emissions from excluded vehicles and equipment as well as electric power produced and sold commercially to other parties in the course of regular business.

  • Within 240 days, establish and report to the CEQ Chair and OMB Director a fiscal year 2020 percentage reduction target for agency-wide scope 3 GHG emissions in absolute terms relative to a fiscal year 2008 baseline.

    • In establishing the target, agencies shall consider reductions associated with:
      • Pursuing opportunities with vendors and contractors to address and incentivize GHG emission reductions.
      • Implementing strategies and accommodations for transit, travel, training, and conferences that reduce carbon emissions associated with commuting and travel by agency staff.
      • Pursuing greenhouse gas emissions reductions associated with other Federal Government sustainability goals.
      • Implementing innovative policies and practices that address agency-specific scope 3 GHG emissions.

  • Within 15 months, establish and report to the CEQ Chair and OMB Director a comprehensive inventory of absolute GHG emissions across all three scopes for fiscal year 2010. Comprehensive inventories shall be submitted annually thereafter at the end of each January.

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Advanced Metering and Measurement

Multiple laws and regulations set advanced metering and measurement requirements, including:

EPAct 2005:

  • Requires all Federal buildings to be metered by October 1, 2012, to ensure efficient energy use and reduce the cost of electricity used in Federal facilities. Advanced meters or metering devices must provide data at least daily and measure the consumption of electricity at least hourly. These devices must be used to the maximum extent practicable.

  • Requires Federal agencies to submit to the Department of Energy (DOE) an implementation plan identifying personnel responsible for achieving metering requirements, and any determination by the agency that advanced meters or metering systems are not practicable in their specific situation.

EISA 2007 establishes a framework for facility project management and benchmarking. Agencies must identify all "covered facilities" that constitute at least 75% of the agency's facility energy use. An energy manager must be designated for each of these covered facilities. Each facility energy manager will be responsible for:

  • Completing comprehensive energy and water evaluations of 25% of covered facilities each year, so that an evaluation of each facility is completed at least once every four years.

  • Following up on implemented measures, including fully commissioning equipment, putting operation and maintenance (O&M) plans in place, and measuring and verifying energy and water savings.

  • Using a DOE Web application to certify and track compliance for energy and water evaluations, project implementation and follow up measures, and estimated cost and savings. The Web application will be available to Congress, other Federal agencies, and the public, with some specific data exempted from disclosure for national security purposes.

  • Entering energy use data for each metered building into a benchmarking system, such as the ENERGY STAR® Portfolio Manager. DOE must select or develop the benchmarking system and issue guidance for its use by December 19, 2008.

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New Facility Construction and Major Renovations

Multiple laws and regulations define requirements for the construction of new facilities and major renovations, including:

E.O. 13514:

  • Implement high performance sustainable Federal building design, construction, operation and management, maintenance, and deconstruction by:

    • Ensuring all new Federal buildings, entering the design phase in 2020 or later, are designed to achieve zero net energy by 2030.
    • Ensuring at least 15% of existing agency buildings and leases (above 5,000 gross square feet) meet the Guiding Principles by fiscal year 2015 and that the agency makes annual progress towards 100% compliance across its building inventory.
    • Pursuing cost-effective, innovative strategies (e.g., highly-reflective and vegetated roofs) to minimize consumption of energy, water, and materials.
    • When adding assets to agency building inventories, identifying opportunities to:
      • Consolidate and eliminate existing assets.
      • Optimize the performance of portfolio property.
      • Reduce associated environmental impacts.
    • Ensuring rehabilitation of Federally-owned historic buildings utilizes best practices and technologies in retrofitting to promote long-term viability of the building.

  • Advance regional and local integrated planning by:

    • Ensuring that planning for new Federal facilities and leases consider sites that are pedestrian friendly, near existing employment centers, and accessible to public transport; and emphasize existing central cities and, in rural communities, existing or planned town centers.

EISA 2007:

  • Section 323 requires that the General Services Administration (GSA), in transmitting to Congress a prospectus of a proposed facility, must include "...an estimate of the future energy performance of the building or space and a specific description of the use of energy efficient and renewable energy systems, including photovoltaic systems, in carrying out the project."

  • Section 433 directs DOE to issue revised Federal building energy efficiency performance standards within one year of its enactment. The revised standards specify that buildings must be designed to reduce fossil fuel-generated energy consumption by the following percentages as compared to a similar building in fiscal year 2003:

Percentage Year
55 2010
65 2015
80 2020
90 2025
100 2030

  • Section 433 also requires that sustainable design principles be applied to the siting, design, and construction of buildings subject to the standards.

  • Section 434 requires that each Federal agency ensure that major replacements of installed equipment (such as heating and cooling systems) or renovation or expansion of existing space employ the most energy-efficient designs, systems, equipment, and controls that are life-cycle cost effective.

  • Section 523 requires 30% of the hot water demand in new Federal buildings (and major renovations) to be met with solar hot water equipment, provided it is life-cycle cost-effective.

E.O. 13423 states that each agency should ensure that:

The Federal Leadership in High Performance and Sustainable Buildings MOU is a voluntary agreement among Federal agencies to establish and follow a common set of sustainable guiding principles for integrated design, energy performance, water conservation, indoor environmental quality, and materials for agencies to:

  • Reduce the total ownership cost of facilities.

  • Improve energy efficiency and water conservation.

  • Provide safe, healthy, and productive building environments.

  • Promote sustainable environmental stewardship.

The MOU (PDF 148 KB) was signed by 17 Federal agencies including the Department of Defense (DOD), Department of Health and Human Services (HHS), General Services Administration (GSA), Environmental Protection Agency (EPA), Department of Energy (DOE), Department of the Interior (DOI), Department of Veterans Affairs (VA), National Aeronautics and Space Administration (NASA), Department of Agriculture (USDA), and others.

The signatory agencies pledged to make their facilities more sustainable in specific, measurable ways, highlighting energy efficiency. The Interagency Sustainability Working Group developed the guiding principles that were the foundation of the MOU. Strong support for sustainable Federal buildings was expressed by senior officials from agencies, including OMB, the Council on Environmental Quality, Office of the Federal Environmental Executive (OFEE), GSA, DOD, DOI, and DOE.

EPAct 2005, Section 305(a) of Sec. 109–Federal Building Performance Standards, states that if life-cycle cost-effective, Federal buildings design should:

  • Achieve energy consumption levels that are at least 30% below the levels established in the version of ASHRAE Standard or the International Energy Conservation Code as appropriate.

  • Apply sustainable building design principles to the siting, design, and construction of all new and replacement buildings.

  • Implement water conservation technologies that are life-cycle cost-effective if water is being used to achieve energy efficiency.

In addition:

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Energy-Efficient Product Procurement

EISA 2007 sets several mandates for Federal facilities surrounding the procurement of energy-efficient products, including:

  • Encourages Federal agencies to minimize standby energy use in purchases of energy-using equipment.

  • Requires Federal procurement to focus on ENERGY STAR and FEMP-designated products.

  • Prohibits Federal agencies from procuring synfuel unless its life-cycle greenhouse gas emissions are less than those for conventional petroleum sources.

  • Prohibits, except under certain circumstances, the purchase of incandescent light bulbs for use in Coast Guard office buildings.

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Petroleum Use Reduction/Alternative Fuel Use Increase

The following Federal laws and regulations each contain fleet management, alternative fuel use, and petroleum reduction mandates. Federal agencies must comply with these, and all other, laws and regulations.

EISA 2007:

  • Directs Federal agencies to develop and implement a plan for Federal fleet conservation; DOE is also directed to establish interim milestones to assess annual agency progress.

  • Directs Federal agencies to install at least one renewable fuel pump at each Federal fleet fueling center by 2010.

  • Requires Federal agencies to achieve a 20% reduction in petroleum consumption by 2015 compared to a fiscal year 2005 baseline.

  • Requires Federal agencies to increase alternative fuel use 10% each year compared to a fiscal year 2005 baseline.

E.O. 13423:

  • Requires Federal agencies with 20 vehicles or more located in the U.S. to decrease petroleum consumption by 2% per year through fiscal year 2015 compared to a fiscal year 2005 baseline.

  • Requires Federal agencies to increase alternative fuel use by 10% each year compared to the previous year.

EPAct 2005 mandates that dual-fueled vehicles acquired pursuant to Section 701 shall be operated on alternative fuels unless the Secretary of Energy determines that an agency qualifies for a waiver. The waiver covers vehicles operated by the agency in a particular geographic area in which:

  • The alternative fuel required for use in the vehicle is not reasonably available to retail purchasers of the fuel as certified by the Secretary by the head of the agency.

  • The cost of the alternative fuel required for use in the vehicle is unreasonably more expensive compared to gasoline as certified by the Secretary by the head of the agency.

The Secretary shall monitor compliance by all such fleets and shall report annually to Congress on the extent to which the requirements are being achieved. The report shall include information on annual reductions achieved from the use of petroleum-based fuels and the problems, if any, encountered in acquiring alternative fuels.

Energy Conservation Reauthorization Act (ECRA) amended EPAct 1992 to allow fleets to generate one alternative-fuel vehicle (AFV) acquisition credit for every 450 gallons of pure biodiesel (B100, equivalent to 2,250 gallons of B20) purchased for use in diesel vehicles more than 8,500 pounds gross vehicle weight rating (GVWR). To achieve credit for an AFV acquisition, the biodiesel must be in blends of B20 or higher. Federal fleets are allowed to use these credits to fulfill no more than 50% of their EPAct 1992 requirements. These credits can be claimed only in the year in which the fuel is purchased for use and cannot be traded among fleets.

EPAct 1992:

  • Set statutory requirements for the acquisition of AFVs by Federal agencies. Starting in fiscal year 2000, 75% of light-duty vehicle (LDV) acquisitions in covered fleets must be AFVs. Vehicles that weigh less than 8,500 pounds GVWR are considered LDVs.

  • States that EPAct 1992 requirements apply to fleets of 20 or more LDVs that are centrally fueled or "capable of being centrally fueled" and are primarily operated in a metropolitan statistical area (MSA)/consolidated metropolitan area (CMSA). Vehicles heavier than 8,500 pounds GVWR or are not located or operated primarily in a covered MSA or CMSA are exempt from these requirements. Law enforcement, emergency, and military tactical vehicles are also exempt. To find out if your fleet is covered under EPAct 1992, start with the MSA/CMSA list on the DOE Vehicle Technologies Program Web site.

  • Requires that, for fiscal 1999 and beyond, 75% of a Federal fleet's covered acquisitions must be AFVs.

  • Compliance with EPAct 1992 is met by AFV acquisition credits, which are granted based on the number of AFVs acquired and the quantity of biodiesel fuel used. Agencies earn on AFV acquisition credit towards EPAct 1992 compliance for each AFV acquisition. Extra credits are awarded for dedicated light, medium, and heavy-duty AFVs. Federal fleets cannot bank credits or trade them with other agencies.

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Pollution Prevention and Waste Reduction

E.O. 13514 includes the following pollution prevention and waste reduction requirements for Federal agencies:

  • Minimize the generation of waste and pollutants through source reduction.
  • Decrease agency use of chemicals where such decrease will assist the agency in achieving greenhouse gas reduction targets.
  • Divert at least 50% of non-hazardous solid waste by the end of fiscal year 2013.
  • Reduce printing paper use and acquiring uncoated printing and writing paper containing at least 30% post-consumer fiber.
  • Increase the diversion of compostable and organic material from the waste stream.

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