Date: April 27, 2001
Sunset Review: April 27, 2006
SUBJECT: Energy Management Program
1. PURPOSE. This directive establishes policies and assigns responsibilities for complying with Executive Order 13123, "Greening the Government Through Efficient Energy Management," (Order) dated June 3, 1999. Treasury will significantly improve its energy management in order to save taxpayer dollars and reduce emissions that contribute to air pollution and global climate change.
2. POLICY. The Department of the Treasury will implement an energy management program that ensures efficiency in all aspects of building design and operation, in the consumption of products and services, conservation of water and usage of emerging technologies. Through implementation of life-cycle cost-effective programs, projects and measures, the Department of the Treasury will strive to meet the goals of the Order by:
a. reducing greenhouse gas emissions 30 percent by 2010 compared to 1990 emission levels;
b. reducing standard buildings/facilities energy consumption 30 percent by 2005 and 35 percent by 2010 compared to 1985 on a consumption per gross square foot basis;
c. reducing industrial and laboratory facilities energy consumption 20 percent by 2005 and 25 percent by 2010 compared to 1990 on a consumption per square foot, per unit of production or per other unit as applicable basis;
d. striving to increase use of energy from renewable sources by implementing renewable energy projects, by purchasing electricity from renewable sources and through participation in the Million Solar Roofs initiative;
e. reducing the use of petroleum at its facilities by switching to less greenhouse gas intensive, nonpetroleum energy sources such as natural gas or renewable energy sources, by eliminating fuel use or by other appropriate methods;
f. striving to reduce total energy use and associated greenhouse gas and other emissions as measured at the source; and
g. implementing measures to reduce water consumption and associated energy use at its facilities.
3. DEFINITIONS. All definitions pertinent to this Directive may be found in Executive Order 13123. All "Section" references relate to the Sections of Executive Order 13123. A copy of the Order is available on the Department of Energy’s website at: www.eren.doe.gov/femp/.
4. REPORTING REQUIREMENTS. Annual report submissions shall comply with Section 303 and DOE’s guidelines developed under Section 306(b). This report shall contain:
a. OMB Circular A-11, Exhibit 55 (Annual Energy Management Data Report);
b. Annual Energy Scorecard;
c. Annual Report on Federal Government Energy Management and Conservation Programs; and
d. Annual Implementation Plan. (Note: The specifics and format for these items are subject to change annually. All report submissions shall follow the requirements of the annual energy report call letter for DOE and OMB.)
5. RESPONSIBILITIES.
a. The Assistant Secretary for Management and Chief Financial Officer as the Senior Agency Official (SAO) (Section 304) is responsible for:
(1) establishment of the overall policy and guidelines to implement the Order within the Department, as well as oversight of the energy program and reporting to the Department of Energy (DOE) and the Office of Management and Budget (OMB);
(2) establishment of the Treasury Energy Technical Support Team (Section 305) consisting of appropriate procurement, legal, budget, management, human resources, and technical representatives to expedite and encourage the use of appropriations, Energy Savings Performance Contracts (ESPC), and other alternative financing mechanisms necessary to meet the goals and requirements of the Order; and
(3) serving as the Treasury representative to the Interagency Energy Policy Committee (656 Committee) (Section 304).
b. The Director, Office of Asset Management (OAM), has oversight responsibilities for the management and direction of the energy program and shall:
(1) develop the program and evaluate its performance; and
(2) develop procedures for identifying and correcting program compliance weaknesses through management reviews and internal control reviews.
c. The Departmental Environment and Energy Programs Officer, OAM, under general guidance of the Director, OAM, shall:
(1) provide program support to the Assistant Secretary for Management and Chief Financial Officer in implementing the requirements of the energy management laws, the Order, and this directive;
(2) conduct oversight activities to assure that an effective energy management program is implemented throughout the Department;
(3) assist in resolving energy management-related problems associated with Departmental actions, activities or programs;
(4) develop and administer a Departmentwide annual awards program to reward its most innovative programs;
(5) coordinate the annual submission of the energy management reports to DOE and OMB;
(6) serve as the technical and management member of the Treasury Energy Team (Section 305); and
(7) serve as Treasury’s representative to the Interagency Energy Management Task Force and its sub-groups (Section 306(e).
d. The Director, Office of Procurement, has oversight responsibilities for the management and direction of the energy efficient product purchase program in accordance with Section 403 of the Order and shall:
(1) promote the procurement of energy efficient products through the bureau chief procurement officers;
(2) promote the program by incorporating training materials into classes where appropriate;
(3) promote the use of energy efficient programs for federal purchase card users; and,
(4) provide a representative to the Treasury Energy Team (Section 305).
e. The Chief Management and Administrative Programs Officer, Heads of Bureaus, the Inspector General for Tax Administration, and the Inspector General, as the Order relates to their respective bureaus and offices, shall:
(1) implement a program to ensure compliance with the Order and the goals and requirements of the Energy Policy Act of 1992, USC, as amended;
(2) designate a senior bureau office official to serve as Senior Bureau Energy Official (SBEO) with responsibility for the areas described in Section 304 including, but not limited to, meeting the goals of the Order;
(3) designate a bureau energy team consisting of appropriate procurement, legal, budget, management, personnel, and technical representatives to expedite and encourage the use of appropriations, ESPC and other alternative financing mechanisms necessary to meet the goals and requirements of the Order;
(4) include in the bureau’s annual budget submission to the Department the funding request necessary to meet the goals of the Order, in accordance with OMB guidelines (Section 301);
(5) prepare the Bureau Annual Implementation Plan (Section 302) to be included with the Annual Report;
(6) prepare the bureau submission for the Annual Report (Section 303) to the President in accordance with the annual call letter guidance provided by DOE and OMB;
(7) use life-cycle cost analysis (Section 401) in making decisions about investments in products, services, construction, and other projects to lower the Federal Government’s costs and to reduce energy and water consumption (life-cycle cost analysis guidance is available at www.eren.doe.gov/femp/);
(8) conduct energy audits (Section 402) of at least 10 percent of the bureau’s facilities each year;
(9) use a variety of energy management strategies and tools (Section 403), where life-cycle cost-effective goals are established to meet the objectives of the Order, including:
(a) maximizing the use of available alternative financing contracting mechanisms (Section 403(a)), including ESPC and UESC, when life-cycle cost-effective, to reduce energy use and cost in bureau facilities and operations;
(b) where life-cycle cost-effective, selecting ENERGY STARÒ and other energy-efficient products (Section 403(b)(1)) as identified in the FEMP Energy Efficient Products Guide when acquiring energy-using products;
(c) striving to meet the ENERGY STARÒ building criteria (Section 403(c)) for energy performance and indoor environmental quality in bureau eligible facilities to the maximum extent practicable by the end of 2002;
(d) following the sustainable design principles (Section 403(d)) set forth in the Whole Building Design Guide available at www.wbdg.org;
(e) when entering into leases, including the renegotiation or extension of existing leases, incorporate lease provisions that encourage energy and water efficiency (Section 403(e)) by following the provisions of GSA’s model green lease available at www.gsa.gov/pbs/pe/green-lease.htm;
(f) exploring efficiency opportunities in industrial facilities for steam systems, boiler operations, air compressor systems, industrial processes, and fuel switching (Section 403(f)), including co-generation and other efficiency and renewable energy technologies;
(g) implementing district energy systems, and other highly efficient systems in new construction and renovation projects (Section 403(G)) when life-cycle cost-effective;
(h) using off-grid generations systems, including solar hot water, solar electric, solar outdoor lighting, small wind turbines, fuel cells, and other off-grid alternatives (Section 403(h)), where such systems are life-cycle cost-effective and offer other benefits including energy efficiency, pollution prevention, source energy reductions, avoided infrastructure costs or expedited service; and
(i) reducing source energy use by striving to use electricity from clean, efficient, and renewable sources, including meeting DOE’s goal for generating electricity from renewable energy technologies (Sections 404 and 503(b));
(10) take advantage of competitive opportunities in the electricity and natural gas markets to reduce costs and enhance services (Section 404(a)) (Note: bureaus are encouraged to aggregate demand across facilities or bureaus to maximize economic advantage or participate in GSA contracts);
(11) strive to minimize the greenhouse gas intensity of purchased electricity by purchasing electricity from sources that use highly efficient generating technologies when life-cycle cost-effective (Section 404(b));
(12) adopt policies and pursue projects to meet DOE’s renewable energy goal by increasing the use of electricity from renewable energy sources (Section 404(c)(1)), including adding provisions for the purchase of electricity from renewable sources as a component of requests for bid whenever procuring electricity;
(13) seek to improve the design, construction, and operation of mobile equipment and implement all life-cycle cost-effective energy efficiency measures that result in a cost savings while improving mission performance, including the use of alternative or renewable based fuels (Section 405);
(14) use employee incentive programs to reward exceptional performance in implementing the Order (Section 406(a));
(15) include successful implementation of the provisions of the Executive Order in the position descriptions and performance evaluations of bureau heads, members of the agency energy team, principle program managers, heads of field offices, facility managers, facility energy managers and other appropriate employees (Section 406(b));
(16) when statutorily authorized, permit the retention of savings generated from energy and water by the facility that generated the savings to greater incentive for that facility to undertake more energy management initiatives, invest in renewable energy systems and purchase of electricity from renewable energy sources (Section 406(c));
(17) assure that procurement courses offered by the bureaus include information on Federal energy management tools, including ESPC, UESC, ENERGY STARÒ and other energy-efficient products, and life-cycle cost analysis;
(18) ensure that all appropriate personnel receive training for implementing the Order, including development of outreach programs that include education, training, and promotion of ENERGY STARÒ and other energy-efficient products for Federal purchase card users (Section 406(d);
(19) designate exemplary new and existing facilities with significant public access and exposure as showcase facilities to highlight energy or water efficiency and renewable energy improvements (Section 406(e));
(20) request a waiver from the requirements of the Order when the bureau determines that a provision is inconsistent with the bureau’s mission. The waiver request shall be submitted to DOE through the OAM (Section 602);
(21) review the operations of all facilities to ensure that the facilities are properly classified under DOE criteria as standard buildings/facilities; industrial, laboratory, research, and other-energy intensive facilities; or exempt facilities (Section 502(a));
(22) submit requests for reclassification of facilities to OAM for coordination with DOE (Section 502(b));
(23) submit to the OAM the bureau annual energy scorecard as part of the annual energy report (Section 306(a)(1)) (Note: The scorecard format is specified annually in the DOE and OMB call letter.); and,
(24) establish a FY 2000 water consumption and cost baseline and implement life-cycle cost-effective programs that include a water management plan by following the DOE guidance available at www.eren.doe.gov/femp/ and www.eren.doe.gov/femp/ (Sections 502(f) and 503(f)) respectively;
6. AUTHORITIES.
a. Executive Order 13123, "Greening the Government Through Efficient Energy Management," dated June 3, 1999, available at: www.eren.doe.gov/femp/.
b. The National Energy Conservation Policy Act (Public Law 95-619, 92 Stat.3206, 42 U.S.C. 8252 et seq.), as amended by the Energy Policy Act of 1992 (EPACT)(Public Law 102-486, 106 Stat. 2776) available at www.eren.doe.gov/femp/aboutfemp/epactintro.html.
c. Federal Energy Management and Planning Program Regulations (10 CFR 436).
7. REFERENCES.
a. Department of Energy "Executive Order 13123 Guidance Documents" available at www.eren.doe.gov/femp/.
b. Office of Federal Procurement Policy (OFPP), Policy Letter 92-4, "Procurement of Environmentally-Sound and Energy-Efficient Products and Services."
c. Department of Energy "Energy Efficient Products Guide" available at www.eren.doe.gov/femp/procurement/begin.html#top.
d. Building Life-Cycle Cost (BLCC) Programs available at www.eren.doe.gov/femp/techassist/softwaretools/softwaretools.html#blcc.
8. CANCELLATION. Treasury Directive 75-04, Energy Management Program, dated January 25, 1994, is superseded.
9. OFFICE OF PRIMARY INTEREST. Office of
Asset Management, Office of the Deputy Assistant Secretary (Management
and Budget), Office of the Assistant Secretary for Management and Chief
Financial Officer.
/S/
James Flyzik
Acting Assistant Secretary for Management
and Chief Information Officer