Federal Energy Management
Agencies Are Taking Steps to Meet High-Performance Federal Building Requirements, but Face Challenges Gao ID: GAO-10-22 October 30, 2009The federal government is the nation's largest energy consumer. The Energy Independence and Security Act of 2007 (EISA) establishes high-performance federal building requirements that include reducing energy use and managing storm water runoff. The Department of Energy (DOE), General Services Administration (GSA), Office of Management and Budget (OMB), and Environmental Protection Agency (EPA) are implementing and, in turn, helping other agencies to implement EISA requirements. The American Recovery and Reinvestment Act of 2009 (Recovery Act) provides funding that some agencies can use to carry out EISA high-performance federal building requirements. This report, required by EISA, addresses (1) what implementing agencies are doing to direct and assist other agencies in meeting key EISA high-performance federal building requirements, (2) how implementing agencies are planning to use Recovery Act funds to meet key requirements, and (3) what challenges implementing and other agencies might face. To do this, GAO reviewed legal materials, guidance, draft energy data, and other documents and interviewed agency officials and stakeholders. DOE and GSA generally agreed with the report's findings and conclusions and provided written comments. OMB neither agreed nor disagreed with the report and provided technical comments. EPA did not provide comments. Agency comments were incorporated as appropriate.
Implementing agencies--DOE, GSA, OMB, and EPA--are taking steps to meet key EISA high-performance federal building requirements and, in so doing, are assisting and providing direction for other federal agencies toward this end. DOE, for example, has issued guidance for agencies to carry out EISA energy and water management activities and is developing regulations for agencies to reduce the use of energy generated from fossil fuels and to identify a green building certification system for federal buildings--all EISA requirements. However, as DOE officials noted, EISA does not require a certification system to ensure that agencies meet all EISA high-performance federal building requirements, and these systems are not designed to do so. GSA, which acts as the leasing agent for most federal agencies, is incorporating into its federal leases EISA requirements for leasing space with a recent ENERGY STAR label--an energy use rating system--and has established an Office of Federal High-Performance Green Buildings. OMB is incorporating information on agencies' progress in implementing EISA requirements into scorecards it uses to rate agencies' energy and water management. EPA is developing guidance to assist agencies in meeting EISA requirements for managing storm water runoff. Two implementing agencies--GSA and DOE--are planning to use Recovery Act funds to meet key EISA high-performance federal building requirements. GSA received a $4 million Recovery Act appropriation to fund its Office of Federal High-Performance Green Buildings and plans to use this funding to hire staff and carry out the office's functions. In addition, GSA received a far larger amount--$4.5 billion--in Recovery Act funding to convert some GSA facilities to high-performance green buildings. DOE plans to use about $73 million in Recovery Act funding to collect and manage energy usage data, provide technical assistance, and fund building energy efficiency research. OMB did not receive Recovery Act funds, and while EPA did, the funds were directed for purposes other than implementing EISA high-performance federal building requirements. Agencies will likely face challenges meeting EISA requirements for (1) increasing energy efficiency and conservation, (2) decreasing and eventually eliminating the use of energy generated from fossil fuels, (3) conducting federal energy and water management activities, and (4) leasing ENERGY STAR rated space. In addition, long-term funding and capital budgeting issues--specifically, requirements for recognizing capital costs up front in the federal budget--present overarching challenges for agencies in meeting all EISA high-performance federal building requirements. According to officials from agencies and stakeholder organizations and GAO's prior work, effective energy management practices, such as ensuring accurate data are collected and monitored, can help agencies address some of these challenges.
GAO-10-22, Federal Energy Management: Agencies Are Taking Steps to Meet High-Performance Federal Building Requirements, but Face Challenges
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Report to Congressional Committees:
United States Government Accountability Office:
GAO:
October 2009:
Federal Energy Management:
Agencies Are Taking Steps to Meet High-Performance Federal Building
Requirements, but Face Challenges:
GAO-10-22:
GAO Highlights:
Highlights of GAO-10-22, a report to congressional committees.
Why GAO Did This Study:
The federal government is the nation‘s largest energy consumer. The
Energy Independence and Security Act of 2007 (EISA) establishes high-
performance federal building requirements that include reducing energy
use and managing storm water runoff. The Department of Energy (DOE),
General Services Administration (GSA), Office of Management and Budget
(OMB), and Environmental Protection Agency (EPA) are implementing and,
in turn, helping other agencies to implement EISA requirements. The
American Recovery and Reinvestment Act of 2009 (Recovery Act) provides
funding that some agencies can use to carry out EISA high-performance
federal building requirements.
This report, required by EISA, addresses (1) what implementing agencies
are doing to direct and assist other agencies in meeting key EISA high-
performance federal building requirements, (2) how implementing
agencies are planning to use Recovery Act funds to meet key
requirements, and (3) what challenges implementing and other agencies
might face. To do this, GAO reviewed legal materials, guidance, draft
energy data, and other documents and interviewed agency officials and
stakeholders.
DOE and GSA generally agreed with the report‘s findings and conclusions
and provided written comments. OMB neither agreed nor disagreed with
the report and provided technical comments. EPA did not provide
comments. Agency comments were incorporated as appropriate.
What GAO Found:
Implementing agencies”DOE, GSA, OMB, and EPA”are taking steps to meet
key EISA high-performance federal building requirements and, in so
doing, are assisting and providing direction for other federal agencies
toward this end. DOE, for example, has issued guidance for agencies to
carry out EISA energy and water management activities and is developing
regulations for agencies to reduce the use of energy generated from
fossil fuels and to identify a green building certification system for
federal buildings”all EISA requirements. However, as DOE officials
noted, EISA does not require a certification system to ensure that
agencies meet all EISA high-performance federal building requirements,
and these systems are not designed to do so. GSA, which acts as the
leasing agent for most federal agencies, is incorporating into its
federal leases EISA requirements for leasing space with a recent Energy
Star label”an energy use rating system”and has established an Office of
Federal High-Performance Green Buildings. OMB is incorporating
information on agencies‘ progress in implementing EISA requirements
into scorecards it uses to rate agencies‘ energy and water management.
EPA is developing guidance to assist agencies in meeting EISA
requirements for managing storm water runoff.
Two implementing agencies”GSA and DOE”are planning to use Recovery Act
funds to meet key EISA high-performance federal building requirements.
GSA received a $4 million Recovery Act appropriation to fund its Office
of Federal High-Performance Green Buildings and plans to use this
funding to hire staff and carry out the office‘s functions. In
addition, GSA received a far larger amount”$4.5 billion”in Recovery Act
funding to convert some GSA facilities to high-performance green
buildings. DOE plans to use about $73 million in Recovery Act funding
to collect and manage energy usage data, provide technical assistance,
and fund building energy efficiency research. OMB did not receive
Recovery Act funds, and while EPA did, the funds were directed for
purposes other than implementing EISA high-performance federal building
requirements.
Agencies will likely face challenges meeting EISA requirements for (1)
increasing energy efficiency and conservation, (2) decreasing and
eventually eliminating the use of energy generated from fossil fuels,
(3) conducting federal energy and water management activities, and (4)
leasing Energy Star rated space. In addition, long-term funding and
capital budgeting issues”specifically, requirements for recognizing
capital costs up front in the federal budget”present overarching
challenges for agencies in meeting all EISA high-performance federal
building requirements. According to officials from agencies and
stakeholder organizations and GAO‘s prior work, effective energy
management practices, such as ensuring accurate data are collected and
monitored, can help agencies address some of these challenges.
View [hyperlink, http://www.gao.gov/products/GAO-10-22] or key
components. For more information, contact Terrell Dorn at (202) 512-
6923 or DornT@gao.gov or Mark Gaffigan at (202) 512-3841 or
GaffiganM@gao.gov.
[End of section]
Contents:
Letter:
Background:
DOE, GSA, OMB, and EPA Are Taking Steps, Which Direct and Assist
Federal Agencies in Implementing EISA:
GSA and DOE Have Plans Under Way to Use Recovery Act Funds to Help Meet
Key EISA High-Performance Federal Building Requirements:
Agencies Will Likely Face Challenges Meeting EISA Energy Reduction and
Energy and Water Management Requirements:
Concluding Observations:
Agency Comments:
Appendix I: Objectives, Scope, and Methodology:
Appendix II: Summary of EISA Provisions Contained in Title IV, Subtitle
C--High-Performance Federal Buildings:
Appendix III: Status of Agencies' Implementation of Key EISA
Requirements Contained in Title IV, Subtitle C:
Appendix IV: Comments from the Department of Energy:
Appendix V: Comments from the General Services Administration:
Appendix VI: Comments from the Department of Defense:
Appendix VII: GAO Contacts and Staff Acknowledgments:
Tables:
Table 1: Status of Agencies' Implementation of Key EISA Requirements
Contained in Title IV, Subtitle C--High-Performance Federal Buildings,
as of October 2009:
Table 2: Energy Intensity Reduction Goals for Federal Buildings in EISA
Title IV, Subtitle C, Section 431:
Table 3: Fossil Fuel Generated Energy Use Reduction Requirements in
EISA Title IV, Subtitle C, Section 433 for New Buildings and Those
Undergoing Major Renovations:
Figure:
Figure 1: Agencies' Reductions in Energy Intensity, Including Partial
Credits for Purchases of Renewable Energy and Renewable Energy
Certificates, Fiscal Year 2008:
Abbreviations:
AIA: American Institute of Architects:
ASHRAE: American Society for Heating, Refrigeration, and Air-
Conditioning Engineers:
Btu: British thermal unit:
DOD: Department of Defense:
DOE: Department of Energy:
EISA: Energy Independence and Security Act of 2007:
EPA: Environmental Protection Agency:
EPAct 2005: Energy Policy Act of 2005:
FEMP: Federal Energy Management Program:
GSA: General Services Administration:
LEED: Leadership in Energy and Environmental Design:
MOU: memorandum of understanding:
NECPA: National Energy Conservation Policy Act of 1978:
NIBS: National Institute of Building Sciences:
OMB: Office of Management and Budget:
Recovery Act: American Recovery and Reinvestment Act of 2009:
VA: Department of Veterans Affairs:
[End of section]
United States Government Accountability Office:
Washington, DC 20548:
October 30, 2009:
The Honorable Barbara Boxer:
Chairman:
The Honorable James M. Inhofe:
Ranking Member:
Committee on Environment and Public Works:
United States Senate:
The Honorable Henry A. Waxman:
Chairman:
The Honorable Joe L. Barton:
Ranking Member:
Committee on Energy and Commerce:
House of Representatives:
The federal government is the nation's single largest energy consumer,
and federal buildings accounted for about 35 percent of the
government's total energy usage in fiscal year 2008.[Footnote 1] Over
the last several years, a number of laws and executive orders have
established new requirements and direction for reducing energy and
water consumption in federal facilities. In December 2007, the Energy
Independence and Security Act (EISA) was enacted to, among other
things, make federal buildings more energy efficient and reduce energy
and water consumption.[Footnote 2] Specifically, EISA Title IV,
Subtitle C--High-Performance Federal Buildings[Footnote 3] established
new energy and water management requirements and standards for federal
buildings and for the agencies that oversee them, among other things.
[Footnote 4] For example, EISA establishes requirements for reducing
energy use at federal buildings, conducting energy and water
evaluations, reducing the use of energy generated from fossil fuels for
certain federal buildings, and managing storm water runoff. Currently,
Congress is considering a new energy bill, which, if enacted in 2009,
would be another significant piece of energy-related legislation
enacted in the last 5 years.[Footnote 5]
EISA directs certain agencies--including the Department of Energy
(DOE), the General Services Administration (GSA), and the Office of
Management and Budget (OMB)--to develop regulations and guidance,
collect information, report on agencies' progress, and coordinate
activities across the federal government, among other activities. In
addition, the Environmental Protection Agency (EPA), although not
specifically required to do so under EISA, has taken on
responsibilities for implementing some of EISA's high-performance
federal building requirements and will continue to do so under a
recently issued Executive Order.[Footnote 6] Because of the roles these
agencies are taking on with respect to EISA high-performance federal
building requirements, for the purposes of this report, we refer to
these four agencies as "implementing agencies." In addition, EISA
directs federal agencies, including the implementing agencies
identified above and other agencies, such as the Departments of Defense
(DOD) and Veterans Affairs (VA), to meet other federal building
requirements contained in Title IV, Subtitle C of EISA.[Footnote 7]
The American Recovery and Reinvestment Act of 2009 (Recovery Act)
recently provided about $787 billion to stimulate the economy, promote
job creation,[Footnote 8] and in some cases, further other policy goals
such as carrying out EISA high-performance federal building
requirements. This funding represents the first specific appropriation
to carry out these requirements--although funding was authorized by
EISA to carry out several of these requirements,[Footnote 9] funds were
not appropriated.[Footnote 10] Additionally, some Recovery Act funding
targeted more generally for energy efficiency activities, although not
specifically appropriated to carry out EISA high-performance federal
building requirements, can nevertheless be used for this purpose.
EISA requires us to report to Congress on the implementation of its
high-performance federal building requirements by October 31, 2009.
[Footnote 11] To provide you with information on implementing agencies'
progress in carrying out key EISA high-performance federal building
requirements, this report addresses (1) what the implementing agencies--
DOE, GSA, OMB, and EPA--are doing to carry out their responsibilities
under EISA, which direct and assist federal agencies in meeting key
EISA high-performance federal building requirements; (2) how
implementing agencies are planning to use Recovery Act funds to meet
key EISA high-performance federal building requirements; and (3) what
challenges implementing and other agencies may face as they take steps
to meet EISA high-performance federal building requirements. During the
course of our review, we also identified energy management practices
that can help agencies meet EISA high-performance federal building
requirements, which we discuss in the third section of this report.
To identify the steps implementing agencies are taking, which direct
and assist agencies in meeting key EISA high-performance federal
building requirements, we first reviewed EISA Title IV, Subtitle C--
High-Performance Federal Building requirements. We then identified DOE,
GSA, OMB, and EPA as implementing agencies because EISA either assigns
implementation responsibilities to them, such as developing regulations
or guidance, or they have assumed some such responsibilities. To
identify those EISA requirements that we designated as key, we met with
implementing agency officials and stakeholder organizations--industry
and advocacy groups such as the Building Owners and Managers
Association and the Alliance to Save Energy--and identified which
provisions contained specific requirements for the implementing
agencies that were applicable during the time frame covered by our
review.[Footnote 12] We met with officials from DOE's Federal Energy
Management Program, GSA's Office of Federal High-Performance Green
Buildings,[Footnote 13] EPA's Energy Star Program and Office of Water,
and OMB's Energy and GSA Branches and reviewed agency-provided
documentation, including draft and final regulations and guidance, and
draft energy and water data. We also attended a meeting of the
Interagency Sustainability Working Group in February 2009 to learn more
about the government's efforts to implement EISA high-performance
federal building requirements.[Footnote 14] Additionally, we assessed
the reliability of the draft energy intensity and energy and water
management data we reviewed and determined that the data were
sufficiently reliable for our purposes.[Footnote 15] To determine how
implementing agencies are planning to use Recovery Act funds to
implement key EISA high-performance federal building requirements, we
reviewed DOE's, GSA's, and EPA's plans to use such funds.[Footnote 16]
OMB did not receive any Recovery Act funding. To determine what
challenges implementing and other agencies may face as they take steps
to meet EISA high-performance federal building requirements, we met
with officials from the previously identified agencies and from DOD and
VA (whose real property portfolios together account for 63 percent of
federal building energy use), as well as stakeholder organizations with
expertise in this area, and reviewed relevant documentation provided by
these sources, such as reports on high-performance federal buildings
and energy conservation measures, and contained in our prior reports.
We selected these stakeholder organizations because of several factors,
including agency recommendations and documentation, the organizations'
varied areas of expertise, and the organizations' involvement in
developing or helping to implement EISA requirements. Appendix I
contains a more detailed discussion of our objectives, scope, and
methodology.
We conducted this performance audit from December 2008 through October
2009 in accordance with generally accepted government auditing
standards. Those standards require that we plan and perform the audit
to obtain sufficient, appropriate evidence to provide a reasonable
basis for our findings and conclusions based on our audit objectives.
We believe that the evidence obtained provides a reasonable basis for
our findings and conclusions based on our audit objectives.
Background:
For decades, the federal government has attempted to improve energy
efficiency and energy and water conservation at federal facilities.
Recently, several laws, executive orders, and other agreements added
new energy efficiency and energy and water conservation requirements
for federal facilities. Specifically,
* The Energy Policy Act of 2005 (EPAct 2005) set energy reduction and
efficiency requirements for federal facilities, among other things.
[Footnote 17] For example, EPAct 2005 Section 103 Energy Use
Measurement and Accountability directs that all federal buildings be
metered "...for the purposes of efficient use of energy and reduction
in the cost of electricity used in such buildings..." by October 1,
2012.
* The Federal Leadership in High-Performance and Sustainable Buildings
Memorandum of Understanding (MOU), signed by a number of federal
agencies in 2006, established guiding principles and goals to, among
other things, improve energy efficiency and water conservation in
federal buildings.
* Executive Order 13423--Strengthening Federal Environmental, Energy,
and Transportation Management, issued in January 2007, directs that all
new construction and major renovations in agency buildings comply with
the guiding principles established in the 2006 MOU, as described above.
This executive order further directs that 15 percent of the existing
federal capital asset building inventory of an agency incorporate
sustainable practices outlined in the MOU by the end of fiscal year
2015. Additionally, the executive order increased energy intensity
reduction goals and sustainable building measures, such as decreasing
water usage, among other goals for federal agencies.
* Executive Order 13514--Federal Leadership in Environmental, Energy,
and Economic Performance, issued in October 2009, directs agencies to
establish reduction targets for certain greenhouse gas emissions, among
other things. Additionally, the executive order directs EPA, in
coordination with other federal agencies as appropriate, to issue
guidance on EISA's requirements for managing storm water runoff.
Building upon many of these and other previous efforts to enhance
efficiency in federal facilities, EISA includes a number of high-
performance federal building requirements. Appendix II summarizes all
of EISA's high-performance federal building requirements contained in
Title IV, Subtitle C.
The four agencies that we have designated as implementing agencies play
prominent roles in helping the federal government carry out energy and
water management activities. Brief descriptions of each agency's roles
follow.
* DOE's Federal Energy Management Program (FEMP) in the Office of
Energy Efficiency and Renewable Energy promotes energy efficiency and
the use of renewable energy resources at federal facilities. FEMP works
to assist federal agencies in meeting the goals for saving energy set
forth in mandates and executive orders. In addition, FEMP chairs
interagency working groups that coordinate federal energy efficiency
activities, including the Interagency Sustainability Working Group.
Also, EISA requires DOE to establish an Office of Commercial High-
Performance Green Buildings.
* GSA is directed by EISA Section 436 to establish an Office of Federal
High-Performance Green Buildings and is tasked with, among other
activities, coordinating green building activities across the federal
government and establishing an interagency Federal Green Building
Advisory Committee. EISA also requires the office to work in
coordination with DOE's Office of Commercial High-Performance Green
Buildings. Relevant to EISA's leasing requirements, contained in
Section 435, GSA also acts as the leasing agent for most federal
agencies, representing a cross-section of the federal government. As
the federal agency that leases the most space, GSA leases space for a
variety of purposes; however, 90 percent of its leasing portfolio is
exclusively for federal offices.[Footnote 18]
* OMB issues semiannual Executive Branch Management Scorecards to track
agencies' progress toward achieving various federal goals and
requirements, including those for energy management. To do so, OMB
develops standards to measure agencies' success in meeting certain
goals, such as progress in meeting federal requirements for reducing
energy use. These scorecards give a green, yellow, or red score by
agency, with green indicating success, yellow indicating mixed results,
and red indicating unsatisfactory results. OMB has also provided
guidance to federal agencies on using Recovery Act funds for high-
performance federal building projects.
* EPA's Energy Star program, run jointly with DOE, was originally
designed as a voluntary program to label and promote energy-efficient
products (such as major appliances, office equipment, lighting, and
home electronics) to reduce greenhouse gas emissions. EPA has extended
the label to cover commercial and industrial buildings. To support this
effort, Energy Star provides an online energy management tool, called
Portfolio Manager, which allows agencies to track and assess energy and
water consumption across an entire portfolio of buildings. Agencies can
enter energy consumption and cost data into Portfolio Manager to
benchmark building energy performance, assess progress toward energy
management goals over time, and identify opportunities for savings. EPA
also has expertise relevant to EISA Section 438 storm water runoff
requirements. Specifically, EPA's Office of Water helps federal
agencies develop guidance to assist in their water management
activities.
DOE, GSA, OMB, and EPA Are Taking Steps, Which Direct and Assist
Federal Agencies in Implementing EISA:
Implementing agencies--DOE, GSA, OMB, and EPA--are taking steps to
carry out their responsibilities under Title IV, Subtitle C, and as a
result, are directing and assisting federal agencies in meeting key
EISA high-performance federal building requirements. As the following
sections summarize, these steps include developing federal regulations
and guidance, collecting information, reporting on agencies' progress,
and assessing federal agencies' implementation of EISA high-performance
federal building requirements. DOE, for example, is developing guidance
for agencies to carry out EISA energy and water management activities
and regulations to help agencies meet new EISA requirements for
reducing their use of energy generated from fossil fuels. DOE is also
developing regulations to assist agencies in identifying a green
building certification system for federal buildings; however officials
noted that EISA does not require a certification system to ensure
compliance with EISA and these systems are not designed to do so. GSA,
which acts as the leasing agent for most federal agencies, is
incorporating into its federal leases EISA requirements for leasing
buildings with a recent Energy Star label--an energy use rating system-
-and has established an Office of Federal High-Performance Green
Buildings. OMB is incorporating information on agencies' progress in
implementing EISA requirements into scorecards it uses to rate
agencies' energy and water management. EPA is developing guidance to
assist agencies in meeting EISA requirements for managing storm water
runoff. For more detailed information on the implementing agencies'
activities, see appendix III.
DOE Is Collecting Information and Developing Regulations and Guidance,
Which Help Federal Agencies Meet EISA Requirements:
Section 431 of EISA requires agencies to annually reduce their energy
consumption, measured as energy intensity, in federal buildings,
resulting in a 30 percent reduction by fiscal year 2015, as compared
with the energy consumption in the same buildings in fiscal year 2003.
[Footnote 19] Since 1978, DOE has been collecting and reporting on
agencies' energy consumption annually, as required prior to EISA.
[Footnote 20]
Under Section 432 of EISA agencies are to, among other activities,
designate facility energy managers to conduct energy and water
evaluations for certain federal facilities.[Footnote 21] To facilitate
compliance with this section, DOE is to issue guidelines for federal
agencies to carry out this section, develop and deploy a Web-based
tracking system, and select or develop a building energy use
benchmarking system.[Footnote 22] In November 2008 and May 2009, DOE
issued guidance for federal agencies to carry out energy and water
management activities, as required by Section 432. This guidance
addresses how agencies should (1) identify covered facilities, (2)
designate facility energy managers, (3) conduct initial evaluations,
and (4) report on their activities to DOE. DOE has begun collecting
information from federal agencies on their energy and water management
activities in federal buildings and has also begun developing a Web-
based tracking system for agencies to directly report this information
in a central repository, as EISA requires. Specifically, DOE collected
information from agencies on their designated energy managers in
January 2009 and on their initial energy and water evaluation
activities in June 2009, according to DOE officials.[Footnote 23] DOE
plans to test its Web-based tracking system in November 2009, make it
available for wider agency use in January 2010, and make it publicly
available via the Internet in August 2010. Further, as required by
Section 432, DOE is selecting a preferred building energy use
benchmarking system for facility energy managers, likely to be EPA's
Energy Star Portfolio Manager, and developing guidance for use of this
system; agency officials provided no expected completion dates for the
development of this guidance.
As required by Section 433, DOE is also developing draft regulations
which direct agencies in meeting new EISA requirements for reducing
their consumption of energy generated from fossil fuels in new federal
buildings and those undergoing major renovation[Footnote 24]. DOE
officials anticipate that the draft regulations will be issued for
public comment in early 2010. Furthermore, as Section 433 requires, DOE
is developing regulations for agencies to identify a certification
system for federal buildings to, according to the law, "encourage a
comprehensive and environmentally sound approach to certification of
green buildings[Footnote 25]." DOE officials expect draft regulations
to be issued for public comment in early 2010. DOE officials noted that
EISA does not require this certification system to ensure agencies meet
all EISA high-performance federal building requirements and these
systems are not designed to guarantee EISA compliance. Consequently,
agencies could meet green building certification system requirements
without meeting all EISA high-performance federal building
requirements.
GSA Is Preparing for Upcoming Leasing Requirements and Has Established
an Office to Coordinate High-Performance Federal Building Activities
Required under EISA:
GSA anticipates incorporating Energy Star leasing requirements
contained in Section 435 into its federal leases by late October 2009,
according to GSA officials. Effective in December 2010, Section 435
prohibits federal agencies from entering into a contract to lease
building space that, with certain exceptions, has not earned an Energy
Star label within the most recent year.[Footnote 26] Because GSA acts
as the leasing agent for most federal agencies, the agency's action
will help enable federal agencies using GSA leases to comply with
EISA's leasing requirement, according to the Acting Director of GSA's
Office of Federal High-Performance Green Buildings.
GSA established the Office of Federal High-Performance Green Buildings
in March of 2008, as required by Section 436, primarily to promote and
coordinate high-performance building information and activities
throughout the federal government.[Footnote 27] According to GSA
officials, among other activities required by Section 436, GSA's Office
of Federal High-Performance Green Buildings identified and recommended
to DOE a certification system for federal buildings in April
2008,[Footnote 28] anticipates establishing a senior-level interagency
Federal Green Building Advisory Committee and holding its first meeting
by November 2009,[Footnote 29] and plans to issue a report for Congress
fully outlining the agency's activities related to the implementation
of EISA high-performance federal building requirements in December
2009.[Footnote 30] With regard to GSA's identification of a green
building certification system for federal agencies, as mentioned
previously, DOE officials said they anticipate issuing draft
regulations for agencies in early 2010 to assist agencies in choosing a
green building certification system. However, as also mentioned
previously, EISA does not require this certification system to ensure
agencies meet all EISA high-performance federal building requirements.
The Acting Director of GSA's Office of Federal High-Performance Green
Buildings said that GSA anticipates issuing additional guidance to
supplement DOE's regulations to ensure that agencies will also meet
federal energy and water requirements, including EISA high-performance
federal building requirements. He added that a certification system's
value is its independent, third-party review and verification process.
[Footnote 31]
As required by Section 439,[Footnote 32] GSA established a program to
accelerate the use of more cost-effective technologies in GSA
facilities in May 2009, according to the Acting Director of GSA's
Office of Federal High-Performance Green Buildings. This program
includes identifying cost-effective lighting technologies for use in
GSA buildings, as well as opportunities to use geothermal heat pump
technology.[Footnote 33] For example, GSA is working with DOE's Oak
Ridge National Laboratory to assist in the development, management, and
performance of a geothermal technology acceleration program.
OMB Is Collecting Information and Assessing Agencies' Progress in
Meeting Energy Efficiency Goals:
As previously outlined, Section 431 requires agencies to reduce energy
consumption (measured as energy intensity) in their federal buildings.
OMB officials said they continue to collect and incorporate energy
intensity information into agencies' energy management scorecards, as
they have done since the scorecard's inception in January 2006. OMB
uses these scorecards to assess federal agencies' status and progress
in meeting federal energy management goals.[Footnote 34] Additionally,
since January 2009, OMB officials said they have been analyzing and
incorporating information on energy and water management activities
into the scorecard's progress milestone semiannually, as required by
Section 432.[Footnote 35] As required by Section 434, OMB has also
reported collecting information on agencies' processes for reviewing
decisions on large capital energy investments, such as heating and
cooling systems.[Footnote 36] OMB provided a report on agencies'
progress to Congress in July 2009, as Section 434 also requires.
[Footnote 37]
EPA Is Working with DOE on Selecting an Energy Use Benchmarking System
and Is Developing Storm Water Runoff Guidance:
EPA is coordinating with DOE to develop EPA's Energy Star Portfolio
Manager as the preferred building energy use benchmarking system per
Section 432, which requires DOE to select or develop a building energy
use benchmarking system, according to EPA officials. EPA is also
developing guidance to assist federal agencies in meeting EISA's storm
water runoff requirements contained in Section 438.[Footnote 38]
Although not designated in EISA to develop guidance to control storm
water runoff, EPA issued draft technical storm water runoff guidance
for agency comment in February 2009, at the request of the Interagency
Sustainability Working Group because of EPA's expertise in water
management. Issued in October 2009, Executive Order 13514--Federal
Leadership in Environmental, Energy, and Economic Performance directs
EPA, in coordination with other federal agencies as appropriate, to
issue guidance on implementation of Section 438 within 60 days of the
date of the order. EPA officials said that the agency expects to issue
guidance by the order's December 2009 deadline.
DOE, GSA, OMB, and EPA Are Developing Regulations and Guidance,
Collecting Relevant Information, and Assessing Federal Agencies'
Implementation of EISA:
Table 1 summarizes the steps these four implementing agencies are
taking, which direct and assist federal agencies in implementing key
EISA high-performance federal building requirements. For more detailed
information on implementing agencies' activities, see appendix III.
Table 1: Status of Agencies' Implementation of Key EISA Requirements
Contained in Title IV, Subtitle C--High-Performance Federal Buildings,
as of October 2009:
EISA section[A]: Section 431-Energy Reduction Goals for Federal
Buildings;
Implementing agency: DOE;
Key EISA requirement: Agencies[B] must reduce energy intensity in
federal buildings by 3 percentage points annually from fiscal year 2008
through fiscal year 2015[C];
Status of implementation: DOE is collecting and reporting data annually
on reductions in energy intensity in federal buildings[D].
EISA section[A]: Section 431-Energy Reduction Goals for Federal
Buildings;
Implementing agency: OMB;
Key EISA requirement: Not specifically required by EISA;
Status of implementation: OMB is incorporating agencies' progress in
meeting energy intensity goals into semiannual agency scorecards, as
required prior to EISA[E].
EISA section[A]: Section 432-Management of Energy and Water Efficiency
in Federal Buildings;
Implementing agency: DOE;
Key EISA requirement:
* Issue guidelines and necessary criteria for agencies to implement
requirements for facility energy managers and energy and water
evaluations within 180 days of EISA's enactment (June 19, 2008);
* Agencies[F] must designate facility energy managers who shall conduct
comprehensive energy and water evaluations annually for approximately
25 percent of covered facilities so that each facility is evaluated at
least once every 4 years. Covered facilities must cover, at a minimum,
those federal facilities that constitute at least 75 percent of
facility energy use at each agency;
* Develop and deploy a publicly available Web-based tracking system for
energy and water management activities within 1 year of enactment (Dec.
19, 2008);
* Select or develop a building energy use benchmarking system, such as
the Energy Star Portfolio Manager, within 1 year of enactment (Dec. 19,
2008)[H];
Status of implementation:
* DOE issued guidance in November 2008 and May 2009 for federal
agencies to implement initial energy and water management requirements.
The guidance addresses how agencies should (1) identify covered
facilities, (2) designate facility energy managers, (3) conduct initial
evaluations, and (4) report on their activities;
* DOE collected information from agencies on their covered facilities
and designated energy managers in January 2009 and on their initial
energy and water evaluation activities in June 2009[G];
* DOE has begun to develop a Web-based tracking system, which it plans
to test in November 2009, make available for agency use in January
2010, and make publicly available via the Internet in August 2010;
* DOE is selecting a preferred building energy use benchmarking system
for facility energy managers, likely to be EPA's Energy Star Portfolio
Manager, and developing guidance for use of this system; agency
officials provided no expected completion dates for these activities.
EISA section[A]: Section 432-Management of Energy and Water Efficiency
in Federal Buildings;
Implementing agency: EPA;
Key EISA requirement: Not specifically required by EISA;
Status of implementation: EPA is coordinating with DOE on using EPA's
Energy Star Portfolio Manager as the preferred building energy use
benchmarking system, according to EPA.
EISA section[A]: Section 432-Management of Energy and Water Efficiency
in Federal Buildings;
Implementing agency: OMB;
Key EISA requirement: Issue semiannual scorecards to Congress, other
federal agencies, and the public for energy management activities
carried out by federal agencies under this provision;
Status of implementation: OMB has incorporated information on agencies'
identification of covered facilities and designation of energy managers
in the progress milestone of its energy management scorecard issued
January 2009, and initial energy and water evaluation activities into
its scorecard issued July 2009[I].
EISA section[A]: Section 433 - Federal Building Energy Efficiency
Performance Standards;
Implementing agency: DOE;
Key EISA requirement: Issue revised federal building energy efficiency
performance standards, which require reduction of fossil fuel-generated
energy consumption in new federal buildings and those undergoing major
renovations within 1 year of EISA's enactment (Dec. 19, 2008)[J];
Identify a certification system and level for green buildings, in
consultation with GSA and DOD, within 90 days of enactment (Mar. 19,
2008);
Status of implementation: DOE expects to issue draft regulations for
public comment in early 2010. DOE is developing regulations to provide
agencies with criteria for identifying a certification system; agency
officials expect draft regulations to be issued for public comment in
early 2010.
EISA section[A]: Section 434 - Management of Federal Building
Efficiency;
Implementing agency: OMB;
Key EISA requirement: Agencies[K] must report to OMB on the process
they have established to ensure that large capital energy investments
are life cycle cost effective[L]. OMB is required to report to Congress
on agencies' compliance within 1 year of EISA's enactment (Dec. 19,
2008);
Status of implementation: Agencies have reported this information,
according to OMB. OMB provided this report to Congress in July 2009.
EISA section[A]: Section 435 - Leasing;
Implementing agency: GSA;
Key EISA requirement: Limits agencies from entering into contracts to
lease building space only in buildings that have earned an Energy Star
label within the most recent year, with certain exceptions, effective 3
years after EISA's enactment (Dec. 19, 2010)[M];
Status of implementation: GSA expects to incorporate provisions into
its leases by late October 2009.
EISA section[A]: Section 436 - High-Performance Green Federal
Buildings;
Implementing agency: GSA;
Key EISA requirement: Establish an Office of Federal High-Performance
Green Buildings within 60 days of EISA's enactment (Feb. 19, 2008) to
coordinate green building information and activities across the federal
government, among other activities. Establish a senior-level Federal
Green Building Advisory Committee. Identify and provide to DOE the
certification system that is most likely to encourage a comprehensive
and environmentally sound approach to the certification of green
buildings within 60 days of enactment (Feb. 19, 2008). Report to
Congress on compliance issues and other federal green building
initiatives within 2 years of EISA's enactment (Dec. 19, 2009) and
biennially thereafter;
Status of implementation: GSA established the Office of Federal High-
Performance Green Buildings and appointed an Acting Director in March
2008 and is coordinating with other agencies primarily through the
Interagency Sustainability Working Group. GSA is forming an interagency
Federal Green Building Advisory Committee with a first meeting
anticipated for November 2009. GSA determined the Leadership in Energy
and Environmental Design (LEED) Green Building Rating System[N] to be
the most appropriate system for the federal real property inventory and
conveyed this determination to DOE in April 2008. GSA is developing a
report for Congress fully outlining the agency's activities related to
implementation of Title IV, Subtitle C, which officials expect will be
issued by Dec. 19, 2009.
EISA section[A]: Section 438 - Storm Water Runoff Requirements for
Federal Development Projects;
Implementing agency: EPA[O];
Key EISA requirement: For particular project sponsors, use site
planning, design, construction, and maintenance strategies to maintain
or restore the predevelopment hydrology of properties, to the maximum
extent technically feasible[P]. EISA does not identify an oversight
agency to issue regulations or guidance;
Status of implementation: EPA issued draft technical guidance for
agency comment in February 2009. EPA expects this guidance to be made
final in December 2009.
EISA section[A]: Section 439 - Cost-Effective Technology Acceleration
Program;
Implementing agency: GSA;
Key EISA requirement: Review the current use and availability of cost-
effective lighting technologies and geothermal heat pumps in GSA
facilities as part of a program to accelerate the use of more cost-
effective technologies and practices at GSA facilities within 90 days
of EISA's enactment (Mar. 19, 2008);
Status of implementation: GSA established a program to accelerate the
use of more cost-effective technologies and practices at GSA facilities
in May 2009. For example, GSA is working with DOE's Oak Ridge National
Laboratory to assist in the development, management, and performance of
a geothermal technology acceleration program.[Q]
Source: GAO analysis of EISA Title IV, Subtitle C, comments by agency
officials, and agency documents.
Notes:
See appendix II for a summary of all requirements contained in Title
IV, Subtitle C.
This table summarizes actions taken to address key EISA high-
performance federal building requirements. For the purposes of this
audit, we did not address all requirements contained in all sections of
Title IV, Subtitle C.
Most activities outlined in this table are specifically designed to
meet EISA requirements. In some cases, activities are not required by
EISA, but help to provide the means used to assess EISA implementation,
help other federal agencies implement EISA requirements, or both.
[A] This table does not include Sections 437, 440, and 441. Section 437
directs us to audit the implementation of EISA Title IV, Subtitle C,
High-Performance Federal Buildings and report to Congress by October
31, 2008, and October 31, 2009. Section 440 authorizes appropriations
to carry out EISA's high-performance federal building requirements.
Section 441 amends a prior law to provide a technical change on public
building life cycle costs.
[B] For purposes of this section, agency includes executive agencies as
defined in 5 U.S.C. § 105 and each entity specified in subparagraphs
(B) through (I) of subsection (I) of 5 U.S.C. § 5721. See 42 U.S.C. §
8241.
[C] Energy intensity is defined as energy consumption, measured in
British thermal units (Btu), per gross square foot. Annual goals are
measured against a fiscal year 2003 baseline.
[D] According to draft DOE energy data, 19 of 22 federal agencies
reporting in fiscal year 2008 met the EISA energy intensity reduction
goal of 9 percent. For a summary of agencies' progress in meeting
energy intensity goals for fiscal year 2008, see fig. 1 of this report.
[E] 42 U.S.C. § 8253(f)(9) requires OMB to incorporate this information
into its scorecards. OMB has been incorporating energy intensity
information into its scorecards since their inception in January 2006,
according to OMB officials. In the status milestone for energy in OMB's
July 2009 Management Scorecard, 11 agencies received a green light, 4
agencies received a yellow light, and 7 agencies received a red light.
[F] For purposes of this section, agency has the same meaning as that
in Section 431.
[G] According to draft data collected by DOE, 22 out of 23 federal
agencies reported to DOE in January 2009 identifying their designated
energy managers and covered buildings, and 20 out of 23 federal
agencies reported to DOE in June 2009 on their initial energy and water
evaluations.
[H] Energy Star Portfolio Manager is administered by EPA and is an
interactive energy management tool that allows agencies to track and
assess energy and water consumption across a portfolio of buildings
through a secure online Web site.
[I] In the progress milestone for energy in OMB's January 2009
Management Scorecard, 21 agencies received a green light and 1 agency
received a yellow light. In the progress milestone for energy in OMB's
July 2009 Management Scorecard, 18 agencies received a green light, 3
agencies received a yellow light, and 1 agency received a red light.
[J] For these buildings, the reduction must be 55 percent by 2010
(relative to the fiscal year 2003 level), and continue to be reduced
each year before finally being reduced by 100 percent by 2030.
[K] For purposes of this section, agency has the same meaning given in
Sections 431 and 432.
[L] Large capital energy investments include major replacements of
heating and cooling systems, or projects to expand existing space,
employ energy-efficient designs, systems, equipment, and controls. Life
cycle cost effective means that the estimated savings from an
investment exceed its costs over its lifetime. According to OMB, of the
22 agencies that OMB tracks as part of its energy management scorecard,
all 22 agencies reported that they have incorporated language on EISA
Section 434 compliance into existing agency guidance documents:
[M] Not later than 3 years after EISA's enactment (Dec. 19, 2010), the
Federal Acquisition Regulatory Council must revise the Federal
Acquisition Regulation, in consultation with GSA's Office of Federal
High-Performance Green Buildings and DOE's Office of Commercial High-
Performance Green Buildings, to carry out the requirements.
[N] LEED is a third-party certification program and a national
benchmark for the design, construction, and operation of high-
performance green buildings, according to the U.S. Green Building
Council.
[O] Although EISA does not designate an implementing agency for Section
438, Executive Order 13514--Federal Leadership in Environmental,
Energy, and Economic Performance, issued in October 2009, directs EPA,
in coordination with other federal agencies as appropriate, to issue
guidance on implementation of Section 438 within 60 days of the date of
the order.
[P] Applies to sponsors of federal facility development or
redevelopment projects with a footprint of more than 5,000 square feet.
Section 438 does not define the term predevelopment hydrology.
[Q] Geothermal heat pumps can be used to heat, cool and, if so
equipped, supply a facility with hot water by using the constant
temperature of the earth as the exchange medium instead of the outside
air temperature. Relative to air-source heat pumps, geothermal heat
pumps are highly efficient, last longer, need little maintenance, and
do not depend on the temperature of the outside air.
[End of table]
GSA and DOE Have Plans Under Way to Use Recovery Act Funds to Help Meet
Key EISA High-Performance Federal Building Requirements:
Two implementing agencies--GSA and DOE--have plans to address key EISA
high-performance federal building requirements with Recovery Act funds.
Specifically, GSA plans to use about $4 million in Recovery Act funding
specifically appropriated to fund its Office of Federal High-
Performance Green Buildings.[Footnote 39] In addition, GSA received a
far larger amount--$4.5 billion--in Recovery Act funding to convert
some GSA facilities to high-performance green buildings and has
developed a specific list of projects for this funding. These funding
amounts were specifically appropriated for these purposes. DOE also
received Recovery Act funding that, although not specifically
appropriated for meeting key EISA high-performance federal building
requirements, is available for more general energy efficiency
activities. DOE officials said DOE plans to use some of this funding--
at least $73 million--to help meet EISA high-performance federal
building requirements, such as collecting and managing energy use data.
[Footnote 40] OMB received no Recovery Act funds. While EPA did receive
Recovery Act funds, the funds were directed for purposes other than
implementing EISA high-performance federal building requirements.
[Footnote 41]
GSA Plans to Use Recovery Act Funds to Operate Its Office of Federal
High-Performance Green Buildings and Implement Identified Energy
Efficiency Projects:
The Recovery Act appropriated $4 million for GSA's Office of Federal
High-Performance Green Buildings. Although EISA authorized funding for
this office, these funds were never appropriated. GSA nevertheless
established this office in March 2008, using funds from the agency's
annual appropriations act. According to the Acting Director of GSA's
Office of Federal High-Performance Green Buildings, prior to the
infusion of Recovery Act funds, the office was staffed by an Acting
Director and other nondedicated staff who were pulled in to conduct the
office's activities as necessary. The GSA Recovery Act plan for this
office explains that the Recovery Act funds are to provide for salaries
and expenses for the office, including resources for nine full-time-
equivalent positions,[Footnote 42] travel, training, supplies, and
other support costs.
In addition, GSA received a far larger amount--$4.5 billion--in
Recovery Act funding to convert some GSA facilities to high-performance
green buildings and has developed a specific list of projects for this
funding.[Footnote 43] GSA has developed a plan that identifies specific
energy efficiency projects for this funding. These projects will help
GSA and other agencies meet EISA high-performance federal building
requirements.[Footnote 44] To select these projects, GSA considered two
criteria: their potential for job creation (a key Recovery Act goal)
and for transforming federal buildings into high-performance green
buildings.[Footnote 45] According to the Acting Director of GSA's
Office of Federal High-Performance Green Buildings, Congress expects
GSA to revise project designs that predated EISA to ensure they meet
EISA high-performance federal building requirements. Accordingly, GSA
is revising existing designs to improve their design performance.
DOE Plans to Use at Least $73 Million in Recovery Act Funds for Data
Collection and Management, Technical Assistance, and Research:
DOE plans to use at least $73 million in Recovery Act funds to help
implement EISA high-performance federal building requirements,
according to DOE officials. DOE plans to use this funding to collect
and manage energy data, provide technical assistance, and for research,
as detailed below.
* Implementing a Web-based tracking system. DOE plans to use $1.4
million to implement the Web-based tracking system required by EISA
Section 432. This system will collect agency-provided data on energy
and water management activities in federal buildings. DOE officials
said that, without the funding provided in the Recovery Act, DOE would
not have had the resources to develop the required Web-based tracking
system this year, since no other specific appropriations were made.
* Transferring energy intensity data. DOE plans to use $1.1 million to
transfer energy intensity data from a legacy system the agency has used
to collect this information since 1978 to a new system it plans to
acquire. Moreover, the new system will link with EPA's Energy Star
Portfolio Manager to streamline data collection for the agencies that
use Portfolio Manager, according to DOE. Linking Portfolio Manager to
the new system is important because, according to DOE officials, DOE is
likely to identify Portfolio Manager as the preferred benchmarking
system under EISA Section 432 for agencies to track energy and water
use.[Footnote 46]
* Providing technical assistance. DOE will spend $20.5 million to
provide technical assistance to federal agencies through its national
laboratories, in part to help agencies meet EISA high-performance
federal building requirements. As part of this effort, in March 2009,
DOE's FEMP notified federal agencies that FEMP plans to expand support
to agencies and provide funding to laboratories to assist agencies in
making management decisions on investments in energy efficiency and the
deployment of renewable energy sources. Citing the challenges and
opportunities posed by the Recovery Act and EISA, FEMP highlighted the
capabilities and expertise at 10 national laboratories and contractors
and offered its assistance in working with the labs. Finally, FEMP
provided details on the national laboratories' specialty areas. For
example, among many other specialty areas, DOE's Argonne National
Laboratory in Chicago, Illinois, specializes in strategic energy
planning and analysis, and the Lawrence Berkeley National Laboratory in
Berkeley, California, specializes in renewable energy procurement and
lighting technologies.
* Conducting building energy efficiency research. DOE plans to award up
to $50 million to one or more of its national laboratories for research
associated with improving building energy efficiency. Specifically, on
June 29, 2009, DOE called for project nominations from its laboratories
to either construct or alter an existing building to conduct research
on building system design, integration, and control to achieve the
ultimate goal of more energy efficient buildings.
OMB and EPA Did Not Receive Recovery Act Funds for Implementing EISA
High-Performance Federal Building Requirements:
OMB received no Recovery Act funds. While EPA did receive Recovery Act
funds, the funds were directed for purposes other than implementing
EISA high-performance federal building requirements. EPA and OMB have
been using annual appropriations to carry out activities to implement
key EISA high-performance federal building requirements.
Agencies Will Likely Face Challenges Meeting EISA Energy Reduction and
Energy and Water Management Requirements:
In the future, agencies will likely face challenges meeting
requirements for (1) reducing energy intensity, (2) decreasing and
eventually eliminating the use of energy generated from fossil fuels,
(3) conducting new federal energy and water management activities, and
(4) meeting Energy Star leasing requirements. In addition, long-term
funding and capital budgeting issues, specifically the requirements for
recognizing capital costs up front in the federal budget, will continue
to pose overarching challenges to agencies' ability to meet all of
EISA's high-performance federal building requirements. Effective energy
management practices, such as ensuring accurate data are collected or
monitored, can help agencies address some of these challenges.
Meeting More Stringent Requirements for Reducing Energy Intensity
without Credits for Renewable Energy and Other Factors May Pose
Challenges:
As federal agencies make progress in meeting EISA requirements, some
agencies will likely face challenges achieving more stringent energy
intensity reduction goals, as set forth in Section 431, particularly as
the use of credits for renewable energy purchases, which currently can
be used for meeting EISA's energy intensity goals, is phased out by
2012, pursuant to DOE guidance.[Footnote 47] These requirements are
shown in table 2.
Table 2: Energy Intensity Reduction Goals for Federal Buildings in EISA
Title IV, Subtitle C, Section 431:
Fiscal year: 2008;
Percentage reduction goal from baseline fiscal year 2003: 9.
Fiscal year: 2009;
Percentage reduction goal from baseline fiscal year 2003: 12.
Fiscal year: 2010;
Percentage reduction goal from baseline fiscal year 2003: 15.
Fiscal year: 2011;
Percentage reduction goal from baseline fiscal year 2003: 18.
Fiscal year: 2012;
Percentage reduction goal from baseline fiscal year 2003: 21.
Fiscal year: 2013;
Percentage reduction goal from baseline fiscal year 2003: 24.
Fiscal year: 2014;
Percentage reduction goal from baseline fiscal year 2003: 27.
Fiscal year: 2015;
Percentage reduction goal from baseline fiscal year 2003: 30.
Source: EISA Section 431.
Note: Energy intensity is defined as energy consumption, measured in
British thermal units (Btu) per gross square foot.
[End of table]
According to draft DOE data, 19 of 22 federal agencies met EISA's
fiscal year 2008 requirement for reducing energy intensity by 9
percent. However, without the use of credits for renewable energy
purchases, 6 fewer agencies would have met the requirement.
Furthermore, with the use of credits, the federal government as a whole
decreased its building energy use by 12.4 percent in fiscal year 2008,
but without the use of credits, the total decrease was 9.4 percent, or
0.4 percent beyond the goal. Figure 1 shows the fiscal year 2008
reduction in energy intensity for these 22 agencies.
Figure 1: Agencies' Reductions in Energy Intensity, Including Partial
Credits for Purchases of Renewable Energy and Renewable Energy
Certificates, Fiscal Year 2008:
[Refer to PDF for image: horizontal bar graph]
21008 goal: 9 percent reduction.
Agency: Archives;
Percent reduction in energy intensity (Btu per gross square foot):
25.15;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 2.48.
Agency: EPA;
Percent reduction in energy intensity (Btu per gross square foot):
17.52;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 6.84.
Agency: Justice;
Percent reduction in energy intensity (Btu per gross square foot):
22.53;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 0.21.
Agency: HHS;
Percent reduction in energy intensity (Btu per gross square foot):
8.72;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 13.84.
Agency: Interior;
Percent reduction in energy intensity (Btu per gross square foot):
17.96;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 3.96.
Agency: USDA;
Percent reduction in energy intensity (Btu per gross square foot):
20.67;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 1.07.
Agency: DOL;
Percent reduction in energy intensity (Btu per gross square foot):
20.19;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 1.05.
Agency: DOC;
Percent reduction in energy intensity (Btu per gross square foot):
18.36;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 1.49.
Agency: USPS;
Percent reduction in energy intensity (Btu per gross square foot):
17.2;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 0.
Agency: State;
Percent reduction in energy intensity (Btu per gross square foot):
13.58;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 2.03.
Agency: DOE;
Percent reduction in energy intensity (Btu per gross square foot):
12.32;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 2.99.
Agency: Treasury;
Percent reduction in energy intensity (Btu per gross square foot):
11.14;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 2.89.
Agency: DHS;
Percent reduction in energy intensity (Btu per gross square foot):
11.22;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 1.86.
Agency: NASA;
Percent reduction in energy intensity (Btu per gross square foot):
5.87;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 7.2.
Agency: Total reporting agencies;
Percent reduction in energy intensity (Btu per gross square foot):
9.44;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 2.99.
Agency: GSA;
Percent reduction in energy intensity (Btu per gross square foot):
4.91;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 7.25.
Agency: VA;
Percent reduction in energy intensity (Btu per gross square foot):
6.99;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 4.37.
Agency: HUD;
Percent reduction in energy intensity (Btu per gross square foot):
9.22;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 2.01.
Agency: DOD;
Percent reduction in energy intensity (Btu per gross square foot):
8.11;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 2.6.
Agency: TVA;
Percent reduction in energy intensity (Btu per gross square foot):
8.69;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 0.67.
Agency: SSA;
Percent reduction in energy intensity (Btu per gross square foot):
5.46;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 1.21.
Agency: RRB;
Percent reduction in energy intensity (Btu per gross square foot):
2.99;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 2.05.
Agency: DOT;
Percent increase in energy intensity (Btu per gross square foot): -3.3;
Reduction attributable to credits for purchases of renewable energy and
renewable energy certificates: 0.
Source: DOE draft data.
[End of figure]
According to DOE officials, some agencies will have difficulty meeting
future requirements without the use of credits for renewable energy
purchases. For example, as figure 1 shows, neither GSA, DOD, nor VA
would have met the fiscal year 2008 energy intensity requirements
without the use of credits. Combined, these three agencies represent
approximately 70 percent of the federal government's total building
energy use. VA officials told us their agency was preparing to meet
EISA energy intensity goals without credits but that the credits' phase-
out would create challenges for the agency over the next 2 to 3 years.
Furthermore, the Acting Director of GSA's Office of Federal High-
Performance Green Buildings said that without the availability of
Recovery Act funds, it would be very difficult for GSA to meet energy
intensity requirements over the next 2 years as the use of credits for
the purchase of renewable energy is phased out.
Along with the phase-out of credits for renewable energy purchases,
agency officials identified other challenges that are likely to affect
agencies' ability to meet EISA energy intensity requirements. DOE, EPA,
and VA officials cited increases in agency workloads or facility use as
a challenge to meeting EISA energy intensity requirements. For example,
a senior EPA official responsible for the agency's energy planning and
facility management said that increases in EPA's workload due to a
planned expansion of climate change research in EPA's laboratories,
which use a large amount of energy, would likely lead to higher energy
demands in the future. VA officials observed that increases in the
number of patients or in the level of care provided at an individual VA
hospital facility could increase the facility's operating hours, energy
use, and energy intensity even if the facility's space was being used
more efficiently. Furthermore, VA officials attributed much of VA
hospitals' energy use to equipment with high energy demands, such as
Magnetic Resonance Imaging machines.[Footnote 48] Finally, agency
officials noted that increases in building and facility use present
challenges in meeting EISA energy intensity requirements. Specifically,
agency officials noted that energy intensity, which is annually
measured as energy consumption per gross square foot, may not always
provide the best metric to measure agencies' energy efficiency and
conservation progress. For example, DOE and GSA officials said that if
an agency increases the number of employees working in a single
facility, such as through staff consolidation, total energy consumption
may decrease and the space may be used more efficiently, but energy
intensity is likely to increase, conflicting with EISA energy intensity
goals.
Finally, agency officials and stakeholder organizations said it can be
challenging to upgrade older, particularly historic, federal buildings
because these buildings are more difficult and expensive to upgrade and
plans for their renovation may conflict with historic preservation
rules. Officials from EPA and the National Institute of Building
Sciences (NIBS) stated that many of the easy, cost-effective energy
savings techniques have already been implemented in existing federal
buildings and that in the future it will be more difficult and
expensive to achieve additional energy savings. Historic federal
buildings may be particularly difficult to upgrade, in part because of
historic building preservation rules that, according to VA officials,
can greatly limit the available energy efficiency renovation options.
They noted, for example, that state historic preservation officials
have denied requests to install new, more energy efficient windows in
historic buildings.
Agencies Will Likely Face Challenges in Meeting EISA Requirements for
Reducing Their Use of Energy Generated from Fossil Fuels:
Beginning in 2010, Section 433 of EISA requires agencies to
substantially decrease and eventually eliminate their consumption of
energy generated from fossil fuels in new federal buildings and those
undergoing major renovations by fiscal year 2030. Table 3 shows the
required reductions.[Footnote 49]
Table 3: Fossil Fuel Generated Energy Use Reduction Requirements in
EISA Title IV, Subtitle C, Section 433 for New Buildings and Those
Undergoing Major Renovations:
Fiscal year: 2010;
Percentage reduction required from baseline year 2003: 55.
Fiscal year: 2015;
Percentage reduction required from baseline year 2003: 65.
Fiscal year: 2020;
Percentage reduction required from baseline year 2003: 80.
Fiscal year: 2025;
Percentage reduction required from baseline year 2003: 90.
Fiscal year: 2030;
Percentage reduction required from baseline year 2003: 100.
Source: EISA Section 433.
Note: The baseline will be determined by DOE regulations and may be
calculated based on the Commercial Buildings Energy Consumption Survey.
[End of table]
Because this requirement has not yet gone into effect and, at the time
of our review, DOE had not issued the final regulations for achieving
reductions in energy generated from fossil fuels, we were not able to
fully review the challenges agencies will face in implementing this
provision. Notwithstanding these limitations, numerous agency officials
and stakeholder organizations we spoke with stated that meeting the
long-term requirements of this provision would be very challenging and
impractical and would require significant capital investments and
technological advancements by 2030. Specific challenges identified by
agency officials include the following:
* Energy efficiency and conservation efforts will not be enough;
renewable energy generation will be needed. A DOE official with the
office responsible for developing DOE's regulations stated that the
requirement, particularly the long-term goal of eliminating the use of
energy generated from fossil fuels in new buildings and major
renovations by 2030, is very stringent and cannot be met with energy
efficiency and conservation efforts alone. To meet this goal, the
official stated that agencies will need to generate their own energy
from renewable sources, which at this time is expensive and difficult
because these technologies have limited energy production capabilities.
* Buildings may lack space to generate renewable energy. The Acting
Director of GSA's Office of Federal High-Performance Green Buildings
stated that while near-term goals for reducing fossil fuel energy use
by 55 percent would largely be attainable through energy efficiency and
conservation efforts,[Footnote 50] the long-term goals of eliminating
the use of such energy would be very difficult to meet, particularly
for facilities in cities. The official said this overall goal, in his
view, could more easily be met if DOE regulations allow agencies to use
the total renewable energy generated by all of their buildings
together, rather than require each individual facility to generate all
of its own power. For example, GSA buildings in more rural locations
could generate more renewable energy on-site than they would need for
their own consumption, offsetting consumption in more urban GSA
buildings that lack space for renewable energy generation. Therefore,
although the agency might not attain the goal for each building, it
could achieve it overall.[Footnote 51]
* High energy intensity buildings may be unable to generate enough
renewable energy. EPA, VA, and DOD officials we spoke with said it
would be very difficult and impractical for their agencies to meet the
long-term requirement for many of their high energy intensity
buildings. For example, a senior EPA official responsible for energy
planning and facility management stated that energy intensive
buildings, including laboratories and data centers, make up about 94
percent of EPA's facilities.[Footnote 52] Given the nature of its
building portfolio, EPA would be required to develop significant on-
site renewable energy generation capabilities, which the official said
would be expensive and impractical. The same official also said it
would be nearly impossible for certain EPA facilities to meet this
requirement without the use of credits for purchases of renewable
energy. VA officials similarly stated that even with enormous upfront
expenditures for renewable energy, this requirement could not be met
for certain VA high energy intensity facilities, such as hospitals that
rely extensively on high energy intensity equipment or are located in
certain geographic areas lacking in good sources of renewable energy. A
senior DOD official responsible for facilities and installations energy
management also noted that this requirement would be very difficult to
meet for high energy intensity buildings such as intelligence centers.
The official further noted that while the section allows individual
building exemptions,[Footnote 53] applying for the exemptions would
likely be difficult administratively, particularly because DOD has
numerous installations with multiple buildings.[Footnote 54]
Although agencies and stakeholder organizations said that agencies
would likely not achieve the long-term fossil fuel energy reduction
goal with current technology, some stakeholder organizations we spoke
with, including the American Society for Heating, Refrigeration, and
Air-Conditioning Engineers (ASHRAE) and the American Institute of
Architects (AIA), said they were optimistic agencies would be able to
meet this goal because, in their opinion, new guidance and
technologies, such as those for improved renewable energy generation,
would be available by 2030.[Footnote 55]
Agencies Will Likely Face Challenges Meeting EISA's Energy and Water
Management Requirements:
Under Section 432 of EISA, agencies are required to designate facility
energy managers who are responsible for reducing energy use at covered
facilities, conducting comprehensive energy and water evaluations of
such facilities, and benchmarking their covered facilities' energy use-
-that is, comparing energy and water use in their facilities and in
other similar buildings. As part of these efforts, facility energy
managers must identify and assess measures for recommissioning or
retrocommissioning their facilities--techniques used to ensure that
building systems are operating as efficiently as intended.[Footnote 56]
While we and officials from agencies and stakeholder organizations have
noted the importance of effective energy management practices, such as
conducting energy evaluations and commissioning, agency officials told
us that some agencies may still find it difficult to benchmark their
facilities because their portfolios include a large number of unique
building types. For example, a senior DOD official responsible for
facilities and installations energy management stated that DOD is
currently unable to benchmark DOD's facility energy and water use by
using EPA's Portfolio Manager because DOD has many unique facilities
that are not comparable to commercial facilities or even to other DOD
facilities. For example, military bases such as Fort Bragg and Camp
Lejeune have different missions and, as a consequence, varying levels
of energy and water use. The official said that DOD has had discussions
with DOE to resolve this issue. Additionally, a DOE official
responsible for collecting agency energy data said that some agencies
have unique building structures, such as radar stations, which may make
up a significant portion of these agencies' total buildings. The
official said that while evaluating these structures will not
necessarily pose a challenge, agencies will likely reap limited savings
from required energy and water evaluations because most of these energy
and water needs are fixed and typical building efficiency measures are
not applicable.
According to DOE, VA, and DOD officials, conducting energy and water
evaluations and commissioning activities required by Section 432 can be
costly. Section 432 requires federal agencies to designate energy
managers to conduct energy and water evaluations annually for
approximately 25 percent of an agency's covered federal facilities so
that each facility is evaluated at least once every 4 years. DOE stated
that the optimal frequency for recommissioning electro-mechanical
equipment is 4 years and that longer than 4 years would be unresponsive
to the need for periodic maintenance and the potential opportunities
for using new technologies. DOE officials acknowledged, however, that
recommissioning every 4 years could be costly. VA officials estimate,
for example, that VA would spend between 8 cents and 15 cents per
square foot to evaluate approximately 38 million square feet of
facility space each year to meet EISA high-performance federal building
requirements, which would cost approximately $3 million to $5.7 million
annually. Moreover, a senior official responsible for DOD's facilities
and installations energy management stated that an evaluation would not
likely be needed every 4 years because limited energy and water saving
opportunities could be realized within such a short time frame. The
official suggested that it would be more efficient and practical to
conduct these activities over a longer interval, such as every 10
years.
Finally, our previous work has shown that agencies sometimes lack
dedicated, knowledgeable energy management staff with the right
expertise to help them achieve energy goals.[Footnote 57] An EPA
official noted that finding and retaining facility energy managers with
the appropriate level of expertise is important but challenging;
without effective energy management, agencies could have difficulty
achieving certain EISA energy and water management requirements.
EISA Energy Star Leasing Requirements May Be Difficult for Federal
Agencies to Meet in Certain Situations:
Agency officials we spoke with provided differing assessments of the
impact of Section 435's leasing requirements, which will take effect on
December 19, 2010. For example, a DOD leasing official noted that DOD
leases a large amount of space both domestically and internationally
and that implementing EISA's leasing requirements will be particularly
difficult in certain circumstances. Furthermore, DOD stated that while
this section provides a number of exceptions to leasing space in an
Energy Star rated building, agencies must still ensure the landlords
carry out energy efficiency and conservation measures for any new
government lease executed under one of the exceptions. DOD officials
stated that these additional requirements would also be onerous to
implement. Conversely, an official with EPA's Energy Star program and a
representative with the Building Owners and Managers Association said
that the exceptions to Section 435 appear to greatly limit the impact
of the requirement.[Footnote 58] The Acting Director for GSA's Office
of Federal High-Performance Green Buildings said he does not anticipate
that Section 435's leasing requirements will be particularly onerous to
meet initially, particularly in major metropolitan areas, which have a
robust market for commercial office space. However, in commenting on a
draft of this report, GSA acknowledged that there is a potential cost
consequence of the EISA Energy Star leasing requirement, since it
inherently limits competition to the top 25 percent of buildings in
energy efficiency.[Footnote 59]
Despite differing assessments about the impact of this provision, DOD,
GSA, and VA officials agreed that in some circumstances it may be
difficult for agencies to meet Section 435's Energy Star leasing
requirements. Specifically, these officials told us that if an agency
leases a relatively small percentage of a building's total space and
the building does not already have an Energy Star label, the agency may
have difficulty persuading the landlord to make the improvements needed
to achieve certification. For example, DOD leases space in
approximately 2,945 different locations to house its recruiting
centers. These centers are typically retail space within strip malls
that may have many other tenants. In such locations, it will be
difficult to lease Energy Star-rated space or to require landlords to
make energy efficiency and conservation improvements to the entire
strip mall, according to a DOD leasing official. In commenting on a
draft of this report, DOD added it is also concerned about the impact
this requirement will have on leased housing for its recruiters. DOD
commented that the agency faces difficulties finding housing for its
recruiters in small markets and this requirement will add to that
difficulty. VA officials also noted that VA leases space for health
clinics in locations convenient to its patients and, in some cases,
would face similar challenges in meeting this requirement. Furthermore,
the DOD official expressed concern that while Section 435, as written,
appears to apply to leased space in typical commercial buildings in the
United States, it also appears to contain no explicit exclusion that
recognizes the different circumstances encountered when leasing in
foreign locations. According to the official, it would not be possible
for DOD to lease Energy Star-rated space in the buildings and
facilities it leases in locations such as Afghanistan and Iraq.
Moreover, requiring landlords to implement substantial energy
efficiency and conservation improvements in these locations would be
very difficult and impractical, according to the official.
Long-Term Funding and Budgeting Issues Pose Overarching Challenges for
Agencies in Meeting All EISA High-Performance Federal Building
Requirements in the Future:
Although Recovery Act funds provide resources to help some agencies
implement energy savings projects and meet EISA high-performance
federal building requirements in the near future, long-term funding and
capital budgeting issues will pose implementation challenges in later
years, according to agency officials and stakeholder organizations. For
example, to meet energy intensity requirements alone, DOE estimated
that from fiscal year 2009 through fiscal year 2015, the federal
government as a whole would need to invest approximately $1.4 billion
annually in energy-related projects. Such investments compete with
other priorities for agency funding, as agency officials and we have
noted in previous reports.[Footnote 60] Already, budget constraints and
limited funding have contributed to agencies' increased reliance on
energy savings performance contracts and other alternative financing
mechanisms to implement energy efficiency projects.[Footnote 61]
However, officials with DOD and EPA, as well as our previous work, have
indicated that such contracts can be very difficult and time consuming
to establish and cannot be used to fully meet agencies' capital needs.
[Footnote 62] Furthermore, we have previously reported that although
these contracts allow agencies to avoid up-front project costs, they
pose management challenges and are typically more expensive in the long
term than up-front funding.
In addition to funding issues, agency officials, stakeholder
organizations, and we have noted that capital budgeting issues,
specifically requirements for recognizing capital costs up front in the
federal budget, can discourage capital investments even though such
investments can be more cost effective in the long term. Hence, these
budgeting requirements could discourage investments in high-
performance federal building improvements because the improvements
often entail up-front capital costs. Even though such improvements are
often paid for through future energy savings and reduced operating
costs, these long-term benefits may not be sufficient to offset the
immediate disincentive created by the initial up-front costs, which
compete with other agency priorities. For example, a senior EPA
official responsible for energy planning and facilities noted that
although the agency's offices are able to receive some immediate
financial benefits from energy savings, future budgets will be based on
smaller operating costs that will not allow EPA's offices to recoup
their initial investment, creating a disincentive for EPA offices to
pursue energy savings projects. We have previously reported that the
federal government faces competing pressures associated with supporting
energy-saving investments while at the same time seeking to ensure
budgetary transparency of full program costs to protect the
government's financial interests.[Footnote 63]
Effective Energy Management Practices Can Help Agencies Meet Key EISA
High-Performance Federal Building Requirements:
To help overcome the challenges to meeting EISA high-performance
federal building requirements, officials from agencies and stakeholder
organizations and our previous work have discussed the importance of
effective energy management. In particular, our previous work has
recognized that agencies face challenges in meeting federal energy
goals. These challenges include not having dedicated energy staff with
appropriate expertise and not having reliable energy use data. We have
recommended that DOE issue guidance for agencies on how to develop long-
term energy plans to meet future federal energy goals.[Footnote 64]
Additionally, officials from agencies and stakeholder organizations and
our previous work have identified the three following effective energy
management practices:
* Ensuring energy management staff have proper expertise and training.
We previously reported that some agencies lacked the staff expertise
needed to oversee energy management activities.[Footnote 65]
Specifically, we reported that some agencies lacked dedicated, skilled
energy managers as well as trained staff capable of overseeing and
managing energy savings performance contracts. An EPA official told us
that, along with providing training, it is important for agencies to
employ staff with the right technical expertise to operate sites
efficiently to meet EISA goals. According to a VA official, VA requires
its energy managers to be engineers and has lead engineers who provide
guidance and additional training to less experienced staff. AIA
officials emphasized the importance both of having expertise and of
providing ongoing training to keep managers at all levels abreast of
the latest energy efficiency technology. Finally, ASHRAE officials
stated that it is important for personnel to have the right expertise
and training at all levels of energy management, including the project
managers, facilities management personnel, and procurement officers, as
well as the building's occupants to ensure that facilities function as
intended and that limited resources are used effectively.
* Ensuring accurate data are collected and monitored. Our previous work
has shown that some federal facilities lack accurate data and that
accurate monitoring of energy use is an important part of effective
energy management and is needed to meet energy intensity goals.
[Footnote 66] A DOE official responsible for collecting agency energy
data stated that federal agencies currently use different mechanisms to
collect data on energy use, some of which are less accurate than
others. For instance, some agencies use financial systems that provide
data on utility bills for a group of buildings rather than for
individual buildings, thereby making it difficult to identify
particularly problematic buildings for energy efficiency improvements.
We have previously noted that there is no federal energy management or
data collection standard. Additionally, agency officials and officials
from AIA, the Alliance to Save Energy, and the U.S. Green Building
Council noted the importance of actively monitoring building energy use
to ensure that a building continues to be operated efficiently after
construction.
* Using Integrated Project Delivery. Finally, officials from AIA,
ASHRAE, and NIBS all discussed the benefits of using a process called
Integrated Project Delivery in new building construction and
renovations. This process integrates people, systems, business
structures, and practices and collaboratively employs all participants
to optimize project results. AIA officials noted that this process is
particularly critical to successful and efficient green building
because it helps ensure that a building's stakeholders (designers,
builders, operators, and tenants) collaborate on important issues
associated with the facility's construction and operation at the
beginning of the process, when any problems are least costly to fix.
NIBS officials further stated that spending more time on front-end
planning would help remove long-term barriers agencies face in
attaining energy efficiency goals. Furthermore, according to the
Federal Leadership in High Performance and Sustainable Buildings MOU,
signed by a number of federal agencies in 2006, employing integrated
design principles is an important strategy for designing, constructing,
and operating federal facilities in an energy efficient and sustainable
manner.
Concluding Observations:
While DOE, GSA, OMB, and EPA are making progress in implementing and
supporting other federal agencies' efforts to implement, EISA high-
performance federal building requirements, their efforts are still
largely in the early stages and thus provide only a limited picture of
what agencies must do to meet EISA requirements and transform their
facilities into high-performance federal buildings. The Recovery Act
has provided critical near-term funding for GSA and DOE to help them
carry out their EISA responsibilities. However, because agencies will
continue to face limited funding and capital budgeting issues, along
with the specific challenges presented by EISA high-performance federal
building requirements, they are likely to find it difficult to meet
some EISA requirements for reducing energy and water use. By engaging
in practices such as properly training energy management staff and
collecting accurate data, agencies will be in a better position to
address these challenges.
Issues related to EISA's Section 433 requirement for DOE to identify a
green building certification system raise important questions for the
future. Because the building certification systems likely to be chosen
by federal agencies are not required to ensure agencies will meet EISA
high-performance federal building requirements, agencies will need to
develop strategies to ensure that EISA energy and water requirements,
among others, are met regardless of whether they attain green building
certifications for their buildings. While actions in this area could be
problematic in the future, we are not making recommendations at this
time because DOE has not issued regulations to help agencies identify a
green building certification system and it is too early to tell what,
if any, additional actions may need to be taken.
Agency Comments:
We provided DOE, GSA, OMB, EPA, DOD, and VA with a draft of this report
for their review and comment. In commenting on a draft of this report,
DOE, GSA, and DOD generally agreed with our findings and conclusions
and provided written comments, which appear in appendixes IV, V, and
VI. VA also generally agreed with the report and provided technical
comments. OMB neither agreed nor disagreed with the report and provided
technical comments. EPA did not provide comments on our report. We
incorporated the technical and clarifying comments that we received
from the agencies as appropriate.
When we sent the draft of this report to the agencies for official
comment, it contained a recommendation that the Secretary of Energy,
the Administrators of EPA and GSA, and the Director of OMB work
together and, in conjunction with the Interagency Sustainability
Working Group and the future Federal Green Building Advisory Committee,
identify and recommend to Congress an entity responsible for overseeing
the implementation of EISA's storm water runoff requirements for
federal development projects so that Congress can designate the
appropriate entity. During the official comment period, Executive Order
13514 was issued, which directs EPA to issue guidance on EISA's storm
water runoff requirements, directs agencies to follow EPA's guidance,
and directs multiple entities, such as OMB, to monitor agencies'
progress in implementing EPA's guidance. These activities appear to
address the goal of our recommendation; therefore we deleted this
recommendation from our final report.
We are sending copies of this report to interested congressional
committees; the Secretary of Energy; the Administrators of the General
Services Administration and the Environmental Protection Agency; the
Director of the Office of Management and Budget; and the Secretaries of
Defense and Veterans Affairs. In addition, this report will be
available at no charge on GAO's Web site at [hyperlink,
http://www.gao.gov].
If you or your staff have any questions about this report, please
contact Terrell Dorn at 202-512-6923 or DornT@gao.gov, or Mark Gaffigan
at 202-512-3841 or GaffiganM@gao.gov. Contact points for our Offices of
Congressional Relations and Public Affairs may be found on the last
page of this report. GAO staff who made major contributions to this
report are listed in appendix VII.
Signed by:
Terrell Dorn:
Director, Physical Infrastructure:
Signed by:
Mark Gaffigan:
Director, Natural Resources and Environment:
[End of section]
Appendix I: Objectives, Scope, and Methodology:
The Energy Independence and Security Act of 2007[Footnote 67] (EISA)
requires GAO to audit federal agencies' implementation of Title IV,
Subtitle C requirements and report to Congress by October 31, 2009.
[Footnote 68] To do so, this report addresses: (1) what the
implementing agencies--the Department of Energy (DOE), the General
Services Administration (GSA), the Office of Management and Budget
(OMB), and the Environmental Protection Agency (EPA)--are doing to
carry out their responsibilities under EISA, which are directing and
assisting federal agencies in meeting key EISA high-performance federal
building requirements; (2) how implementing agencies are planning to
use American Recovery and Reinvestment Act of 2009 (Recovery Act) funds
to meet key EISA high-performance federal building requirements; and
(3) what challenges implementing and other agencies may face as they
take steps to meet EISA's high-performance federal building
requirements.
To identify the steps implementing agencies are taking, which direct
and assist agencies in meeting key EISA high-performance federal
building requirements, we first reviewed EISA requirements contained in
Title IV, Subtitle C of the act. We identified DOE, GSA, OMB, and EPA
as implementing agencies because EISA assigns implementation
responsibilities to them or they have assumed certain implementation
responsibilities. We then identified key EISA high-performance federal
building requirements through discussions with agency officials and
stakeholder organizations. In addition, we determined which provisions
contain specific requirements for the implementing agencies that are
applicable during the period covered by this review. We ultimately
chose not to review several requirements. For example, we did not
review the requirements in Sections 433 and 435 for the Federal
Acquisition Regulatory Committee to develop regulations because they
had yet to take effect.[Footnote 69] We met with officials from DOE's
Federal Energy Management Program, GSA's Office of Federal High-
Performance Green Buildings,[Footnote 70] EPA's Energy Star Program and
Office of Water, and OMB's Energy and GSA Branches, and reviewed agency-
provided documentation, including draft and final regulations and
guidance, and draft energy and water data. We attended a meeting of the
Interagency Sustainability Working Group in February 2009 and the U.S.
Green Buildings Council Federal Summit in May 2009 to learn more about
the government's efforts to make federal buildings more energy
efficient. Moreover, we met with officials from the Office of the
Federal Environmental Executive, a body responsible for overseeing
energy efficiency and sustainable building goals, to determine this
office's role in EISA implementation.[Footnote 71] We also reviewed
prior GAO, Congressional Research Service, and Congressional Budget
Office reports on federal green building efforts. Additionally, we
obtained from DOE draft energy intensity data for fiscal year 2008 and
draft data on agencies' energy and water management activities as of
June 2009. We assessed the reliability of the data and determined that
the data were sufficiently reliable for our purposes, which was to
provide preliminary information on agencies' progress in implementing
certain EISA requirements.
To determine how implementing agencies are planning to use funds
provided by the Recovery Act to implement key EISA high-performance
federal building requirements, we reviewed DOE's, GSA's, and EPA's
plans to use Recovery Act funds and interviewed agency officials.
[Footnote 72] OMB did not receive any Recovery Act funding. We also
reviewed OMB's guidance to federal agencies for using Recovery Act
funds.
To determine what challenges agencies might face as they take steps to
meet EISA high-performance federal building requirements, we met with
the previously identified agency officials as well as officials from
the Departments of Defense (DOD) and Veterans Affairs (VA). We chose to
include DOD and VA because they both manage a significant stock of
federal facilities and together account for approximately 63 percent of
the energy consumed by federal facilities. In addition, we met with
officials from the following nongovernmental stakeholder organizations
with expertise in this area:
* Alliance to Save Energy:
* American Institute of Architects:
* American Society for Heating, Refrigeration, and Air Conditioning
Engineers:
* Building Owners and Managers Association:
* National Association of Energy Services Companies:
* National Institute of Building Sciences:
* Natural Resources Defense Council:
* U.S. Green Building Council:
We selected these organizations, including industry and advocacy
groups, because of several factors, including agency recommendations
and documentation, their varied areas of expertise, and their
involvement in developing or aiding implementation of EISA
requirements. We also reviewed relevant documentation provided by these
sources, such as reports on high-performance federal buildings and
energy conservation measures, and prior GAO reports. Furthermore,
during our discussions with agency officials and stakeholder
organizations, we identified energy management practices that can help
agencies meet EISA high-performance federal building requirements,
which we discuss in the third section of this report.
We conducted this performance audit between December 2008 and October
2009, in accordance with generally accepted government auditing
standards. Those standards require that we plan and perform the audit
to obtain sufficient, appropriate evidence to provide a reasonable
basis for our findings and conclusions based on our audit objectives.
We believe that the evidence obtained provides a reasonable basis for
our findings and conclusions based on our audit objectives.
[End of section]
Appendix II Summary of EISA Provisions Contained in Title IV, Subtitle
C--High-Performance Federal Buildings:
EISA section: Section 431 - Energy Reduction Goals for Federal
Buildings;
EISA provision: Agencies must reduce energy consumption per gross
square foot in their federal buildings by 3 percentage points annually
from fiscal year 2008 through fiscal year 2015, as compared with the
energy consumption per gross square foot of federal buildings of the
agency in fiscal year 2003.[A]
EISA section: Section 432 - Management of Energy and Water Efficiency
in Federal Buildings;
EISA provision: Agencies must designate facility energy managers
responsible for reducing energy use at covered facilities and
conducting comprehensive water and energy evaluations for approximately
25 percent of covered facilities at least once every 4 years. These
covered facilities, at a minimum, must include those that constitute at
least 75 percent of facility energy use at each agency. Directs the
Secretary of Energy to issue guidelines and necessary criteria for
agencies to implement these requirements within 180 days of EISA's
enactment. Directs the Secretary of Energy to develop and deploy a Web-
based tracking system and select or develop a building energy use
benchmarking system, such as the Energy Star Portfolio Manager, for
energy managers to use and issue guidance for use of these systems
within 1 year of enactment.[B] Requires OMB to issue semiannual
scorecards for energy management activities carried out by federal
agencies under this section, and make them available to Congress, other
federal agencies, and the public through the Internet.
EISA section: Section 433 - Federal Building Energy Efficiency
Performance Standards;
EISA provision: Directs the Secretary of Energy, by December 2008, to
issue revised federal building energy efficiency performance standards,
by rule, which require that for new federal buildings and those
undergoing major renovations, fossil-fuel-generated energy consumption
is reduced. For these buildings, the reduction must be 55 percent by
2010 (relative to the 2003 level), and continue to be reduced each year
before reaching 100 percent by 2030. Requires the Secretary of Energy,
in consultation with the Administrator of General Services and the
Secretary of Defense, and using specific criteria, to identify a
certification system and level for green buildings within 90 days of
EISA's enactment.
EISA section: Section 434 - Management of Federal Building Efficiency;
EISA provision: Requires agencies to report to OMB on the process they
establish to ensure that large capital energy investments, such as
major replacements of heating and cooling systems or projects to expand
existing space, employ energy-efficient designs, systems, equipment,
and controls that are life cycle cost effective.[C] Requires OMB to
submit a report to Congress on agency compliance within 1 year of
EISA's enactment.
EISA section: Section 435 - Leasing;
EISA provision: Effective 3 years after EISA's enactment, no federal
agency may enter into a contract to lease space in a building that has
not earned an Energy Star label within the most recent year. Certain
exceptions include: (a) no space is available that meets functional
requirements of the agency, including locational needs; (b) the agency
proposes to remain in the building that the agency has occupied
previously; and (c) the agency proposes to lease a building (or space
in a building) of historical, architectural, or cultural significance
(see 40 U.S.C. § 3306(a)); or (d) the lease is not more than 10,000
gross square feet of space. If certain conditions are met, the agency
may enter into a contract to lease space without the Energy Star label
in the most recent year if prior to occupancy, or in the case in which
the agency remains in the same building it has previously occupied, the
space will be renovated within 1 year for specific energy efficiency
and conservation improvements. Requires the Federal Acquisition
Regulation (FAR), as described in 41 U.S.C. § 405(a), to be revised to
require federal officers and employees to comply with this section in
leasing buildings. This shall be done in consultation with the
directors of the Offices of Federal and Commercial High-Performance
Green Buildings.
EISA section: Section 436 - High-Performance Green Federal Buildings;
EISA provision: Requires GSA to establish an Office of Federal High-
Performance Green Buildings within 60 days and directs this office to,
among other activities, coordinate green building information and
activities within GSA and across relevant federal agencies; establish a
senior-level Federal Green Building Advisory Committee; establish green
practices and high-performance green building standards for federal
facilities in the federal sector; identify incentives, review, and
analyze federal budget and contracting practices and life cycle costing
issues that affect the achievement of high-performance green buildings;
within 60 days of EISA's enactment, identify a certification system
that is most likely to encourage a comprehensive and environmentally
sound approach to the certification of green buildings; and report to
Congress on compliance issues and other federal high-performance green
building initiatives within 2 years of enactment and biennially
thereafter.
EISA section: Section 437 - Federal Green Building Performance;
EISA provision: Directs GAO to audit the implementation of EISA Title
IV, Subtitle C, High-Performance Federal Buildings and report to
Congress by October 31, 2008, and October 31, 2009.
EISA section: Section 438 - Storm Water Runoff Requirements for Federal
Development Projects;
EISA provision: Requires sponsors of federal facility development or
redevelopment projects with a footprint of more than 5,000 square feet
to use site planning, design, construction, and maintenance strategies
to maintain or restore the predevelopment hydrology of the property, to
the maximum extent technically feasible.
EISA section: Section 439 - Cost-Effective Technology Acceleration
Program;
EISA provision: The Administrator of GSA must establish a program to
accelerate the use of more cost-effective technologies and practices at
GSA facilities. As part of this program, the Administrator must review
the current use and availability of cost-effective lighting
technologies and geothermal heat pumps in GSA facilities not later than
90 days after EISA's enactment.
EISA section: Section 440 - Authorization of Appropriations;
EISA provision: Authorized $4,000,000 to be appropriated to carry out
sections 434 through 439 and 482 for each of fiscal years 2008 through
2012.
EISA section: Section 441 - Public Building Life Cycle Costs;
EISA provision: Amends Section 544(a)(1) of the National Energy
Conservation Policy Act, codified at 42 U.S.C. § 8254(a)(1), to reflect
a 40-year period as opposed to a 25-year period to be used as a
potential input in the calculation for estimating and comparing life
cycle costs for federal buildings.
Source: GAO analysis of the EISA Title IV, Subtitle C.
Notes: These are a summary of EISA high-performance federal building
provisions. For the purposes of this audit, we did not address all
requirements contained in all provisions of Title IV, Subtitle C.
[A] Section 431 amends a provision contained in the National Energy
Conservation Policy Act (NECPA), codified at 42 U.S.C. § 8253(a)(1) to
increase prior energy intensity reduction requirements consistent with
energy intensity reduction goals established in Executive Order 13423.
[B] Energy Star Portfolio Manager is administered by EPA and is an
interactive energy management tool that allows agencies to track and
assess energy and water consumption across a portfolio of buildings
through a secure online Web site.
[C] Life cycle cost effective means that the estimated savings from an
investment exceed its costs over its lifetime.
[End of table]
[End of section]
Appendix III: Status of Agencies' Implementation of Key EISA
Requirements Contained in Title IV, Subtitle C:
Implementing agencies--DOE, GSA, OMB, and EPA--are taking steps to
carry out their responsibilities under Title IV, Subtitle C and, as a
result, are directing and assisting federal agencies in meeting key
EISA high-performance federal building requirements. These steps
include developing federal regulations and guidance, collecting
information, reporting on agencies' progress, and assessing federal
agencies' implementation of EISA high-performance federal building
requirements.
DOE Is Collecting Information and Developing Regulations and Guidance,
Which Help Federal Agencies Meet EISA Requirements:
DOE is collecting information from federal agencies on energy use and
energy and water evaluation activities, issuing federal regulations and
guidance, and developing systems to help agencies implement EISA high-
performance federal building requirements. A section-by-section summary
of DOE's activities follows.
Section 431 - Energy Reduction Goals for Federal Buildings:
Section 431 requires annual reductions in energy consumption (measured
as energy intensity) in federal buildings, resulting in a 30 percent
reduction by fiscal year 2015, as compared with the energy consumption
in the same buildings in fiscal year 2003.[Footnote 73] DOE has
collected and reported on this information since 1978 and continues to
do so. These data provide the information needed to assess federal
agencies' progress in meeting EISA's energy reduction goals for federal
buildings.[Footnote 74] See figure 1 of this report for a summary of
agencies' progress in meeting EISA's energy intensity goals for fiscal
year 2008.
Section 432 - Management of Energy and Water Efficiency in Federal
Buildings:
Section 432 of EISA establishes energy and water management
requirements for federal facilities, requiring agencies to, among other
activities, designate facility energy managers to conduct energy and
water evaluations for certain facilities. To facilitate compliance with
this section, DOE must issue guidelines for federal agencies to carry
out this section, develop and deploy a Web-based tracking system, and
select or develop a building energy use benchmarking system.[Footnote
75]
In November 2008 and May 2009, DOE issued guidance for federal agencies
to implement initial stages of Section 432's requirements.[Footnote 76]
This guidance provides information for federal agencies on how they
should (1) identify federal facilities that are affected by these
requirements (defined as covered facilities), (2) designate facility
energy managers, (3) conduct initial rounds of energy and water
evaluations, and (4) report to DOE on their activities. DOE's guidance
instructed federal agencies to submit master lists of their covered
buildings and designated energy managers to DOE by January 2009 and
advised agencies to complete their initial round of energy and water
evaluations for calendar year 2009 by mid-June 2009.[Footnote 77] DOE
interim guidance also instructed federal agencies to report to DOE by
June 30, 2009, on their initial findings from energy and water
evaluations.[Footnote 78]
In the spring of 2009, DOE developed the statement of work for a Web-
based tracking system for agencies to directly report information on
their energy and water management activities in a central repository.
The Web-based tracking system is to allow agencies to report on the
status of their energy and water evaluations to DOE and eventually is
to be made available to the public through the Internet, as required.
According to DOE officials, DOE plans to test the system in November
2009 and agencies should then be able to enter data into the system in
January 2010. The officials said they plan for the information to be
made available to the public through the Internet in August 2010.
Furthermore, DOE officials told us they are drafting guidance for
agencies to use to select a building energy use benchmarking system, as
required by Section 432, in which energy managers will input energy use
data for their buildings. Agency officials provided no expected
issuance date for this guidance. The Energy Star Portfolio Manager
Tool--EPA's interactive energy management tool that allows agencies to
track and assess energy and water consumption across their entire
portfolio of buildings online--is likely to be the preferred system for
meeting the EISA benchmarking requirements, according to DOE officials.
[Footnote 79]
Section 433 - Federal Building Energy Efficiency Performance Standards:
According to DOE officials, DOE is developing draft regulations
required by Section 433 to assist agencies in meeting new EISA
requirements for reducing their consumption of energy generated from
fossil fuels in new federal buildings and those undergoing major
renovation.[Footnote 80] DOE anticipates issuing draft regulations for
public comment in early 2010.[Footnote 81]
Section 433 also requires DOE to identify a certification system and
level for green buildings. This requirement is meant to, according to
the law, "encourage a comprehensive and environmentally sound approach
to certification of green buildings."[Footnote 82] DOE officials said
the agency developed a draft notice identifying DOE's choice for a
preferred green building rating system for federal agencies; however,
DOE received agency comments that compelled it to rescind the notice.
DOE officials explained that agencies wanted the flexibility to choose
the green building rating system that best suited their needs. For
example, a DOE official noted that the appropriate green building
rating system for federal health care facilities may differ from the
system most appropriate for federal office buildings. As a result, DOE
does not plan on identifying a single green building rating system as
required by EISA, but instead plans to issue draft regulations in early
2010 that will provide criteria for agencies to help them choose their
own green building rating system. DOE officials noted that EISA does
not require this certification system to ensure that agencies meet all
EISA high-performance federal building requirements and existing
systems are not designed to guarantee EISA compliance. Consequently,
agencies could meet building certification requirements without meeting
EISA federal high-performance building requirements. For example,
according to an EPA official, an agency could potentially meet the
requirements of a green building rating system, such as the commonly
used Leadership in Energy and Environmental Design (LEED) Green
Building Rating System, without implementing specific storm water
management activities required in Section 438 of EISA.[Footnote 83]
GSA Is Preparing for Upcoming Leasing Requirements and Has Established
an Office to Coordinate High-Performance Federal Building Activities
Required under EISA:
GSA, which acts as the leasing agent for much of the federal
government, is incorporating Energy Star labeling requirements into its
federal leases in preparation for upcoming EISA leasing requirements.
In addition, as required, GSA has established an Office of Federal High-
Performance Green Buildings to, among other things, develop and
identify high-performance federal building standards and promote and
coordinate high-performance federal building information and activities
throughout the federal government. GSA is also identifying cost-
effective lighting technologies for use in GSA buildings, as well as
opportunities to use geothermal heat pump technology.[Footnote 84] A
section-by-section analysis of GSA's activities follows.
Section 435 - Leasing:
Effective December 2010, Section 435 requires that no federal agency
enter into a contract to lease space in a building that has not earned
an Energy Star label within the most recent year, with certain
exceptions.[Footnote 85] GSA expects to incorporate provisions into its
leases in anticipation of the upcoming Energy Star leasing requirement
in late October 2009.[Footnote 86] GSA's incorporation of EISA's
leasing requirements into its leases is significant because GSA, as the
landlord for most civilian agencies, is authorized to enter into leases
and manages a significant percentage of total federal leases, while
other agencies, including DOD and VA, administer the remaining federal
leases under their own statutory or delegated authority. Because GSA
acts as the leasing agent for most federal agencies, the agency's
action will help enable federal agencies using GSA leases to comply
with EISA's leasing requirement, according to the Acting Director of
GSA's Office of Federal High-Performance Green Buildings.
Section 436 - High-Performance Green Federal Buildings:
Section 436 requires GSA to establish an Office of Federal High-
Performance Green Buildings to promote and coordinate high-performance
green building information and activities throughout the federal
government, among other activities.[Footnote 87] In March of 2008, GSA
established the Office of Federal High-Performance Green Buildings and
appointed an Acting Director. GSA planned to select a permanent
director for the office in July 2009; however officials told us the
agency cannot select a permanent director until the Administrator of
GSA is appointed and confirmed. GSA officials plan to select program
staff following the selection of a permanent director, and anticipate
completing the staffing by December 2009.
According to GSA officials, the Office of Federal High-Performance
Green Buildings is undertaking a number of activities to (1) promote
and coordinate high-performance federal building information and
activities throughout the federal government, (2) serve as the federal
government's green building advocate, and (3) develop standards and
establish green practices for all types of federal facilities.[Footnote
88] According to agency officials, GSA's Office of Federal High-
Performance Green Buildings is undertaking multiple activities to
address requirements in Section 436 of EISA, including the following:
* Establishing a senior-level interagency Federal Green Building
Advisory Committee.[Footnote 89] The Office of Federal High-Performance
Green Buildings reported sending letters requesting nominees for the
Federal Green Building Advisory Committee to federal agencies and
relevant offices in April 2008.[Footnote 90] GSA officials anticipate
the first meeting of the Federal Green Building Advisory Committee will
take place in November 2009. Until that committee is formed, the office
has primarily been coordinating with other federal agencies, including
DOE's Office of Commercial High-Performance Green Buildings, through
DOE's Interagency Sustainability Working Group.
* Identifying a federal high-performance building certification system
for federal buildings.[Footnote 91] According to GSA, the Office of
Federal High-Performance Green Buildings conducted a study of green
building rating standards to identify a certification system for
federal buildings, as required by EISA, and conveyed the results of
this study to the Secretary of Energy in April 2008. According to the
study, the LEED Green Building Rating System is the most appropriate
system for the federal real property inventory. GSA officials said they
have since consulted with DOE and recommended LEED as the preferred
building certification system for federal buildings. As mentioned
previously, DOE officials said they anticipate issuing draft
regulations for agencies in early 2010 that will assist agencies in
choosing a building certification system. The Acting Director of GSA's
Office of Federal High-Performance Green Buildings said that GSA
anticipates issuing additional guidance to supplement these regulations
to ensure that agencies will also meet federal energy and water
requirements, including EISA's federal high-performance building
requirements.
* Preparing a public report fully outlining the office's activities
related to EISA implementation.[Footnote 92] According to GSA
officials, this report will be available to Congress no later than
December 19, 2009. In addition to providing information on the status
of compliance with EISA, this report is to, among other things, (1)
identify inconsistencies in federal law that may serve as barriers to
implementing EISA; (2) recommend language for uniform standards for
environmentally responsible acquisition by federal agencies; (3) review
the federal budget process to identify alternative treatments of energy
and environmental costs and benefits; (4) identify federal facility
procedures that may affect green building certification; and (5) make
recommendations to address the issues identified in the report, as well
as plans for implementing the recommendations.
Section 439 - Cost-Effective Technology Acceleration Program:
According to GSA's Acting Director of the Office of Federal High-
Performance Green Buildings, GSA established a technology acceleration
program in May 2009, as required by Section 439 of EISA, to help all
relevant federal agencies that are tenants of GSA buildings increase
the use of cost-effective technologies, including use of efficient
lighting technologies and geothermal heat pumps.[Footnote 93] As part
of this effort, GSA reviewed the use of cost-effective lighting
technologies in GSA facilities in the spring of 2008, according to a
GSA official, and has begun to accelerate the use of these technologies
in these facilities.[Footnote 94] Additionally, GSA is working with
DOE's Oak Ridge National Laboratory to assist in the development,
management, and performance of a geothermal technology acceleration
program. The Acting Director for GSA's Office of Federal High-
Performance Green Buildings said that GSA evaluates the feasibility of
using geothermal heat pumps on a case-by-case basis as it undertakes
major renovations of federal buildings. He said he anticipates this
will be an ongoing process, with the assistance of the Oak Ridge
National Laboratory.
OMB Is Collecting Information and Assessing Agencies' Progress in
Meeting Energy Efficiency Goals:
OMB is incorporating information from federal agencies on energy use
and energy and water evaluation activities into scorecards used to
assess agencies' progress in meeting federal energy management goals.
OMB has also reported collecting information on agencies' processes for
reviewing decisions on large capital energy investments and reporting
to Congress. A section-by-section analysis of OMB's activities follows.
Section 431 - Energy Reduction Goals for Federal Buildings:
As previously outlined, Section 431 requires agencies to reduce energy
consumption (measured as energy intensity) in their federal buildings.
OMB is working with DOE to collect information on energy intensity and
incorporate this information into OMB's agency scorecards on energy
management, which OMB uses to assess federal agencies' status and
progress in meeting energy management goals.[Footnote 95] OMB has been
incorporating energy intensity data into these scorecards since their
inception in January 2006.
Section 432 - Management of Energy and Water Efficiency in Federal
Buildings:
Pursuant to Section 432, OMB officials told us they are now also
incorporating information on agencies' progress in implementing EISA's
energy and water management requirements into semiannual agency
scorecards on energy management. Specifically, OMB officials told us
that OMB included agencies' identification of covered facilities and
designation of energy managers in the progress milestone of the energy
management scorecard it issued in January 2009 and included agencies'
progress in conducting initial energy and water evaluations in the
progress milestone of scorecards it issued in July 2009.[Footnote 96]
Section 434 - Management of Federal Building Efficiency:
As EISA Section 434 requires, OMB officials reported collecting
information from agencies on their process for reviewing decisions for
ensuring that large capital energy investments are cost effective. EISA
requires each federal agency to ensure that major replacements of
installed equipment (such as heating and cooling systems), or
renovations or expansions of existing space, are energy efficient and
life cycle cost effective.[Footnote 97] OMB provided a report on
agencies' progress to Congress in July 2009, as also required by
Section 434.[Footnote 98]
EPA Is Working with DOE on Selecting an Energy Use Benchmarking System
and Is Developing Storm Water Runoff Guidance:
EPA is working with DOE to select a building energy use benchmarking
system and is developing storm water runoff guidance. A section-by-
section analysis of EPA's activities follows.
Section 432 - Management of Energy and Water Efficiency in Federal
Buildings:
Because Section 432 of EISA requires DOE to select or develop a
building energy use benchmarking system to assist agencies in carrying
out this section, EPA officials told us they are working with DOE to
explore the use of the Energy Star program's Portfolio Manager as the
preferred benchmarking system for federal agencies.
Section 438 - Storm Water Runoff Requirements for Federal Development
Projects:
Section 438 sets forth requirements for federal facility development or
redevelopment projects (with a footprint of more than 5,000 square
feet) to control storm water runoff but does not identify a lead agency
for this provision. At the request of the Interagency Sustainability
Working Group, EPA has taken the lead in developing technical guidance
for federal agencies to implement EISA's storm water runoff
requirements for federal buildings. EPA issued its draft technical
guidance for comment in February 2009. Through the working group,
agencies have provided comments to EPA on this technical guidance.
Issued in October 2009, Executive Order 13514--Federal Leadership in
Environmental, Energy, and Economic Performance directs EPA, in
coordination with other federal agencies as appropriate, to issue
guidance on implementation of Section 438 within 60 days of the date of
the order. EPA officials said that the agency expects to issue guidance
by the order's December 2009 deadline.
[End of section]
Appendix IV: Comments from the Department of Energy:
Department of Energy:
Washington, DC 20585:
October 15, 2009:
Mr. Mark Gaffigan:
Director, Natural Resources and Environment:
U.S. Government Accountability Office:
Washington, DC 20548:
Dear Mr. Gaffigan:
Thank you for the opportunity to comment on the draft Government
Accountability Office (GAO) report titled: "Federal Energy Management:
Agencies Are Taking Steps to Meet High-Performance Federal Building
Requirements, but Face Challenges and Need to Clarify Roles and
Responsibilities" (GAO-10-22). The Department of Energy's (DOE) Office
of Energy Efficiency and Renewable Energy has reviewed the report and
our comments are detailed below.
Except for one issue, DOE does not take exception to the contents or
conclusions of the draft report and offers a number of revisions that
should clarify or strengthen various portions of the text.
DOE disagrees with the statement on page 32: "Moreover, a senior
official responsible for DOD's facilities and installations energy
management stated that an evaluation would not likely be needed every 4
years because limited energy and water savings opportunities could be
realized within such a short time frame. The official suggested that it
would be more efficient and practical to conduct these activities over
a longer interval, such as every 10 years."
DOE considers a 10 year interval, as mentioned in the report, to be
exceptionally long and unresponsive to the need for periodic
maintenance and the potential opportunities with respect to new
technologies. According to our experts: "The optimal frequency for re-
commissioning of electro-mechanical equipment is four years. The reason
for this is that this specific type of equipment will suffer from a
decrease in efficiency through the normal course of operations. Left
uncorrected, the equipment will have decreased performance and
increased energy use. Energy and water audits should also be re-
evaluated at four year intervals. This is due to changing operations,
equipment, and energy and water usage at facilities. If longer
intervals arc used, the risk is that the baselines for energy and water
usage will be inaccurate."
We believe that while a four year interval may appear challenging, it
is a realistic and responsible time-frame for assessment, evaluation
and corrective action.
DOE's other clarifying/strengthening revisions for the report are as
follows:
* Revisions to page 11, first full paragraph, lines 4 and 5, replace
"DOE officials anticipate that the draft regulations to be issued for
public comment in the fall of 2009", with:
- "The draft NOPR began internal DOE review in August 2009 and is
expected to be available for public comment in early 2010."
* Revisions to page 11, first full paragraph, lines 8 and 9, replace
"DOE officials expect draft regulations to be issued for public comment
in the fall of 2009", with:
- "The draft NOPR began internal DOE review in August 2009 and is
expected to be available for public comment in early 2010."
* Revision to page 22, onto the end of the last paragraph, after
"tracking system this year" insert:
- ", since no specific appropriations were made."
* Revisions to page 23, first full paragraph, lines 3 and 4, delete:
- "data from;"
- replace "be linked" with "link;"
- after "Portfolio Manager" insert "to streamline data collection for
the agencies that use Portfolio Manager."
* Revision to page 23, second full paragraph, line 1, delete:
- "is using $17 million" and replace with "will spend $ 20.5 million."
* Revision to page 23, second full paragraph, line 4, delete:
- "issued a memorandum to" and replace with "notified."
* Revision to page 23, second full paragraph, lines 9 and 10, delete:
- "eight national laboratories" and replace with "ten national
laboratories and contractors."
* Revision to page 29, first full paragraph, line 4, after "from fossil
fuels" insert:
- "in new buildings and major renovations."
* Revisions to page 32, top incomplete paragraph, line 9 replace
"large" with "significant."
* Revision to page 32, top incomplete paragraph, line 11, after
"evaluations because most" insert "of these process."
* Revision to page 32, top incomplete paragraph, line 12, after "needs
are" delete: "set" and replace with:
- "fixed and typical building efficiency measures are not applicable."
Thank you again for the opportunity to comment on the draft report. We
look forward to working with GAO on helping the Federal Government meet
its facility energy goals.
If you have any questions, please contact me or Ms. Betty A. Nolan,
Acting Assistant Secretary for Congressional and Intergovernmental
Affairs, at (202) 586-5450.
Signed by:
Kathleen B. Hogan:
Deputy Assistant Secretary For Energy Efficiency:
Office of Technology Development Energy Efficiency and Renewable
Energy:
[End of section]
Appendix V: Comments from the General Services Administration:
Note: GAO's comment supplementing those in the report text appears at
the end of this appendix.
GSA:
GSA Administrator:
U.S. General Services Administration:
1800 F Street, NW:
Washington, DC 20405-0002:
Telephone: (202) 501-0800:
Fax: (202) 218-1243:
[hyperlink, http://www.gsa.gov]
October 14, 2009:
The Honorable Gene Dodaro:
Acting Comptroller General of the United States:
Government Accountability Office:
Washington, DC 20548:
Dear Mr. Dodaro:
The U.S. General Services Administration (GSA) appreciates the
opportunity to review and comment on the Government Accountability
Office's (GAO's) draft report, "Federal Energy Management: Agencies Are
Taking Steps to Meet High-Performance Federal Building Requirements but
Face Challenges and Need to Clarify Roles and Responsibilities" (GAO-10-
22). GAO recommends that GSA identify and recommend for congressional
designation an entity to oversee implementation of the Energy
Independence and Security Act (EISA) storm water runoff requirements.
[See comment 1]
Technical comments that update and clarify statements in the draft
report are enclosed and incorporated herein by reference. If you have
any questions, please contact me. Staff inquiries may be directed to
Mr. Ralph Conner, Acting Associate Administrator, Office of
Congressional and Intergovernmental Affairs. He can be reached at
(202) 501-0563.
Sincerely,
Signed by:
Paul F. Prouty:
Acting Administrator:
Enclosure:
cc: Mr. Terrell Dorn, GAO Director of Physical Infrastructure:
[End of letter]
Government Accountability Office (GAO) Draft Report: "Federal Energy
Management: Agencies Are Taking Steps to Meet High-Performance Federal
Building Requirements but Face Challenges and Need to Clarify Roles and
Responsibilities" (GAO 10-22):
Dated October 2009:
U.S. General Services Administration Comments to the Recommendation:
Recommendation 1: GAO recommends that GSA identify and recommend for
congressional designation an entity to oversee implementation of the
Energy Independence and Security Act (EISA) storm water runoff
requirements.
GSA Response: GSA agrees with the recommendation.
Technical and clarifying comments:
1. Choice and Use of a Green Building Certification System (p. 9, 13
ff)
* The report notes that the use of a green building certification
system does not guarantee the certified buildings will achieve all of
EISA's goals. GSA believes the value of certification systems is the
independent, third-party review and verification process.
* Use of the certification clearly does not obviate EISA, or other
statutory requirements. GSA requires its contractors to not only meet
the LEED Silver level, but also the fossil fuel reduction, water
conservation, and energy targets. The information provided for
certification using LEED addresses these specific requirements as well.
2. Agencies Will Likely Face Challenges in Meeting EISA Requirements
for Reducing Their Use of Energy Generated from Fossil Fuels (p. 28) .
* This requirement is in GSA's budgets for any designs beginning in
fiscal year 2010 and appropriate Recovery Act contracts.
* Preliminary assessment about the near term goals (55%) from the
Department of Energy and the American Society of Heating, Refrigerating
and Air-Conditioning Engineers is that the 55% reduction would be
achieved by meeting the statutory requirement to perform 30% better
than the energy code (ASHRAE 90.1).
3. Agencies Will Likely Face Challenges Meeting EISA's Energy and Water
Management Requirements (p. 31-32) .
* The Commercial Building Energy Consumption Survey database developed
and maintained by the Energy Information Agency within the Department
of Energy could be expanded to include a broader set of reference
buildings. This would aid the Federal government in its benchmarking
activities.
4. EISA Energy Star Leasing Requirements May Be Difficult for Federal
Agencies to Meet In Certain Situations (p. 33).
* GSA's statement that the Sec. 435 requirements (for Energy Star) will
not be particularly onerous to meet should be qualified: the intent was
to describe the initial implementation in major metropolitan areas, in
which there is a robust market for commercial office space.
* There is a potential cost consequence of the Energy Star requirement,
as it inherently limits competition to the top 25 percent of buildings
in energy efficiency.
The following is GAO's comment on the General Services Administration's
letter dated October 14, 2009.
GAO Comment:
1. When we sent the draft of this report to the agencies for official
comment, it contained a recommendation that the Secretary of Energy,
the Administrators of EPA and GSA, and the Director of OMB work
together and, in conjunction with the Interagency Sustainability
Working Group and the future Federal Green Building Advisory Committee,
identify and recommend to Congress an entity responsible for overseeing
the implementation of EISA's storm water runoff requirements for
federal development projects so that Congress can designate the
appropriate entity. During the official comment period, Executive Order
13514 was issued, which directs EPA to issue guidance on EISA's storm
water runoff requirements, directs agencies to follow EPA's guidance,
and directs multiple entities, such as OMB, to monitor agencies'
progress in implementing EPA's guidance. These activities appear to
address the goal of our recommendation; therefore we deleted this
recommendation from our final report.
[End of section]
Appendix VI: Comments from the Department of Defense:
Office Of The Under Secretary Of Defense:
Acquisition, Technology And Logistics:
3000 Defense Pentagon:
Washington, DC 20301-3000:
October 21, 2009:
Mr. Terrell Dorn:
Director, Physical Infrastructure:
U.S. Government Accountability Office:
441 G Street, N.W.
Washington, DC 20548:
Dear Mr. Dorn:
This is the Department of Defense (DoD) response to the GAO draft
report GAO-10-22, "Federal Energy Management: Agencies Are Taking Steps
to Meet High-Performance Federal Building Requirements, but Face
Challenges and Need to Clarify Roles and Responsibilities," dated
September 15, 2009 (GAO Code 545083).
The DoD concurs with the draft report. Thank you for the opportunity to
participate in this important review of the challenges faced in
implementing the high-performance green building requirements in the
Energy Independence and Security Act of 2007.
If you require additional information, my point of contact is LtCol
Barton V. Barnhart, at 703-604-1831 and barton.barnhart@osd.mil.
Signed by:
Dorothy Robyn:
Deputy Under Secretary of Defense:
(Installations and Environment)
[End of section]
Appendix VII: GAO Contacts and Staff Acknowledgments:
GAO Contacts:
Terrell Dorn, (202) 512-6923 or DornT@gao.gov Mark Gaffigan, (202) 512-
3841 or GaffiganM@gao.gov:
Staff Acknowledgments:
In addition to the individuals named above, other key contributors to
this report were Steve Cohen and Karla Springer, Assistant Directors;
Lauren Calhoun; Jean Cook; Elizabeth Eisenstadt; Brandon Haller; Carol
Henn; Mark Keenan; Susan Michal-Smith; Gary Stofko; Barbara Timmerman;
and Nicholas Weeks.
[End of section]
Footnotes:
[1] U.S. Department of Energy preliminary fiscal year 2008 data.
[2] Energy Independence and Security Act of 2007, Pub. L. No. 110-140,
Title IV, Subtitle C--High-Performance Federal Buildings, 121 Stat.
1492, 1607-23.
[3] According to Section 401(12) of EISA, a high-performance building
is a building that integrates and optimizes on a life cycle basis all
major high-performance attributes, including energy conservation,
environment, safety, security, durability, accessibility, cost-
benefit, productivity, sustainability, functionality, and operational
considerations.
[4] For the purposes of this report, when we refer to high-performance
federal building requirements or sections, we are referring
specifically to those sections contained in EISA Title IV, Subtitle C--
High-Performance Federal Buildings. Additionally, for the purposes of
this report, when we refer to EISA, we are specifically referring to
Title IV, Subtitle C.
[5] Congress is considering the American Clean Energy and Security Act
of 2009, H.R. 2454, 111th Cong. (2009), which was passed by the House
on June 26, 2009. Provisions in the proposed bill could affect a number
of provisions contained in EISA, including §§ 433, 436, and 440
contained in Title IV, Subtitle C, which are within the scope of this
audit. See H.R. 2454, title I, subtitle G, § 161, which contains
technical corrections to EISA. Additionally, the proposed American
Clean Energy Leadership Act of 2009, S. 1462, 111th Cong. (2009) would
impact a number of provisions of EISA outside the scope of this audit.
Prior to EISA's enactment, the Energy Policy Act of 2005, Pub. L. No.
109-58, 119 Stat. 594, was signed into law on August 8, 2005.
[6] Issued in October 2009, Executive Order 13514--Federal Leadership
in Environmental, Energy, and Economic Performance, directs EPA, in
coordination with other federal agencies as appropriate, to issue
guidance on implementation of EISA Section 438 within 60 days of the
date of the order.
[7] We have selected key high-performance federal building requirements
contained in EISA Title IV, Subtitle C as part of our audit, as
outlined in table 1 of this report. For a detailed description of all
the requirements contained in Title IV, Subtitle C, see appendix II.
[8] Pub. L. No. 111-5, 123 Stat. 115.
[9] Pub. L. No. 110-140, § 440, 121 Stat. 1492, 1623 (2007).
[10] Despite a lack of specific appropriations to carry out EISA high-
performance federal building provisions, agencies must still comply
with such requirements using annual or other appropriations.
[11] EISA also required us to report to Congress by October 31, 2008.
See GAO, Status of GSA's Implementation of Selected Green Building
Provisions of the Energy Independence and Security Act of 2007,
[hyperlink, http://www.gao.gov/products/GAO-09-111R] (Washington, D.C.:
Oct. 31, 2008).
[12] As previously noted, we have audited specific sections and
provisions contained in Title IV, Subtitle C of EISA. For an outline of
the key requirements identified and contained in this report, see table
1. For a more detailed summary of all requirements contained in Title
IV, Subtitle C, see appendix II.
[13] According to EISA Section 401, a high-performance green building
is a building that, during its life cycle, achieves a number of
environmental goals. Specifically, compared with similar buildings (as
measured by Commercial Buildings Energy Consumption Survey or
Residential Energy Consumption Survey data from the Energy Information
Agency), a high-performance green building (1) reduces energy, water,
and material resource use; (2) improves indoor environmental quality,
including reducing indoor pollution, improving thermal comfort, and
improving lighting and acoustic environments that affect occupant
health and productivity; (3) reduces negative impacts on the
environment throughout the life cycle of the building, including air
and water pollution and waste generation; (4) increases the use of
environmentally preferable products, including biobased, recycled
content, and nontoxic products with lower life cycle impacts; (5)
increases reuse and recycling opportunities; (6) integrates systems in
the building; (7) reduces the environmental and energy impacts of
transportation through building location and site design that support a
full range of transportation choices for users of the building; and (8)
considers indoor and outdoor effects of the building on human health
and the environment, including: (a) improvements in worker
productivity; (b) the life cycle impacts of building materials and
operations; and (c) other factors that the Federal Director [of the
Office of Federal High-Performance Green Buildings] or the Commercial
Director [of the Office of Commercial High-Performance Green Buildings]
consider to be appropriate.
[14] The Interagency Sustainability Working Group serves as the
coordinating body for efforts involving the sustainability of the built
environment in the federal sector. According to the working group,
participating agencies include all of the Cabinet departments and a
number of independent federal agencies and offices.
[15] Energy intensity is defined as energy consumption, measured in
British thermal units (Btu), per gross square foot.
[16] While the Recovery Act provides funds to stimulate the economy and
create jobs as well as, in some cases, further other policy goals, we
did not examine how the key implementing agencies' planned use of
Recovery Act funds would contribute to meeting the Recovery Act's
goals.
[17] Pub. L. No. 109-58, 119 Stat. 594.
[18] Some federal agencies, such as DOD and VA, also have their own
independent statutory authority related to real property, including
leasing authority.
[19] Section 431 of EISA amends section 543(a)(1) of the National
Energy Conservation Policy Act of 1978 (NECPA), Pub. L. No. 95-619, 92
Stat. 3206, 3277 (1978), codified as amended at 42 U.S.C. § 8253(a)(1).
Sec. 431 of EISA increases federal agency energy intensity goals, while
also reinforcing existing energy intensity reduction goals outlined in
Executive Order 13423 (2006). Agencies must reduce energy intensity in
federal buildings by 3 percentage points annually from fiscal year 2008
through fiscal year 2015.
[20] According to draft DOE energy data, 19 of 22 federal agencies
reporting in fiscal year 2008 met the EISA energy intensity reduction
goal of 9 percent. For a summary of agencies' progress in meeting
energy intensity goals for fiscal year 2008, see fig. 1 of this report.
[21] Section 432 requires agencies to designate facility energy
managers who shall conduct comprehensive energy and water evaluations
annually for approximately 25 percent of covered facilities so that
each facility is evaluated at least once every 4 years. Covered
facilities must cover, at a minimum, those federal facilities that
constitute at least 75 percent of facility energy use at each agency.
[22] Section 432 of EISA requires DOE to issue guidelines and necessary
criteria for agencies to implement the section not later than 180 days
after the date of enactment of EISA (June 19, 2008); develop and deploy
a Web-based tracking system for energy and water management activities
not later than 1 year after enactment of EISA (Dec. 19, 2008); and
select and develop a building energy use benchmarking system, such as
the Energy Star Portfolio Manager , and issue related guidance within 1
year of the date of enactment of EISA (Dec. 19, 2008). Building energy
use benchmarking systems help agencies track and assess energy and
water consumption in federal buildings by allowing them to compare
their buildings with similar buildings.
[23] According to draft data collected by DOE, 22 out of 23 federal
agencies reported to DOE in January 2009 identifying their designated
energy managers and covered buildings, and 20 out of 23 federal
agencies reported to DOE in June 2009 on their initial energy and water
evaluations.
[24] Section 433 of EISA requires DOE to establish, by rule, revised
federal building energy efficiency performance standards for new
federal buildings and those undergoing major renovations not later than
1 year after the date of enactment of EISA (Dec. 19, 2008). Section 433
states that buildings shall be designed so that the fossil-fuel-
generated energy consumption of the buildings is reduced, compared with
such energy consumption by a similar building in fiscal year 2003.
These requirements call for a 55 percent reduction by fiscal year 2010
and the elimination of all such energy consumption in federal buildings
by fiscal year 2030, relative to a fiscal year 2003 baseline.
[25] Section 433 of EISA requires DOE to identify a certification
system and level for green buildings not later than 90 days after the
date of enactment of EISA (Mar. 19, 2008).
[26] See appendix II for a list of exceptions. Additionally, not later
than 3 years after EISA's enactment (Dec. 19, 2010), the Federal
Acquisition Regulatory Council must revise the Federal Acquisition
Regulation, in consultation with GSA's Office of Federal High-
Performance Green Buildings and DOE's Office of Commercial High-
Performance Green Buildings, to comply with these requirements when
leasing buildings.
[27] We previously reported on GSA's and the office's activities in
October 2008. See GAO, Status of GSA's Implementation of Selected Green
Building Provisions of the Energy Independence and Security Act of
2007, [hyperlink, http://www.gao.gov/products/GAO-09-111R] (Washington,
D.C.: Oct. 31, 2008).
[28] Section 436 requires the Office of Federal High-Performance Green
Buildings to identify and provide to DOE the certification system that
is most likely to encourage a comprehensive and environmentally sound
approach to the certification of green buildings within 60 days of
enactment (Feb. 19, 2008). GSA determined the Leadership in Energy and
Environmental Design (LEED) Green Building Rating System to be the most
appropriate system for the federal real property inventory and conveyed
this to DOE in April 2008. LEED is a third-party certification program
and a national benchmark for the design, construction, and operation of
high-performance green buildings, according to the U.S. Green Building
Council.
[29] Section 436 of EISA requires GSA's Office of Federal High-
Performance Green Buildings to establish a senior-level Federal Green
Building Advisory Committee, which is to, among other things, provide
advice and recommendations on current budget and contracting practices
and identify tools to aid life cycle cost decision making. EISA
requires GSA to ensure coordination with nine relevant agencies and
offices including EPA; the Office of the Federal Environmental
Executive; the Office of Federal Procurement Policy; the Departments of
Energy, Health and Human Services, Defense, and Transportation; the
National Institute of Standards and Technology; and the Office of
Science and Technology.
[30] Section 436 requires the Office of Federal High-Performance Green
Buildings to report to Congress on compliance issues and other federal
green building initiatives within 2 years of EISA's enactment (Dec. 19,
2009) and biennially thereafter.
[31] In commenting on a draft of this report, GSA further stated that
it requires its contractors to meet the LEED Silver level as well as
other requirements, including fossil fuel reduction, water
conservation, and energy requirements.
[32] Section 439 requires GSA to review the current use and
availability of cost-effective lighting technologies and geothermal
heat pumps in GSA facilities as part of a program to accelerate the use
of more cost-effective technologies and practices at GSA facilities
within 90 days of EISA's enactment (Mar. 19, 2008).
[33] Geothermal heat pumps, also known as ground-source heat pumps, can
be used to heat, cool and, if so equipped, supply a facility with hot
water by using the constant temperature of the earth as the exchange
medium instead of the outside air temperature. Relative to air-source
heat pumps, geothermal heat pumps are highly efficient, last longer,
and need less maintenance.
[34] 42 U.S.C. § 8253(f)(9) requires OMB to incorporate this
information into its scorecards. In the status milestone for energy in
OMB's July 2009 Management Scorecard, 11 agencies received a green
light, 4 agencies received a yellow light, and 7 agencies received a
red light.
[35] Section 432 requires OMB to issue semiannual scorecards to
Congress, other federal agencies, and the public for energy management
activities carried out by federal agencies under this provision. OMB
incorporated information on agencies' identification of covered
facilities and designation of energy managers in the progress milestone
of energy management scorecards it issued in January 2009, and
information on initial energy and water evaluation activities in the
progress milestone in the scorecard it issued in July 2009. In the
progress milestone for energy in OMB's January 2009 Management
Scorecard, 21 agencies received a green light and 1 agency received a
yellow light. In the progress milestone for energy in OMB's July 2009
Management Scorecard, 18 agencies received a green light, 3 agencies
received a yellow light, and 1 agency received a red light.
[36] Section 434 of EISA requires federal agencies to ensure that any
large capital energy investment in an existing building that is not a
major renovation but involves the replacement of installed equipment
(such as heating and cooling systems), or the renovation,
rehabilitation, expansion, or remodeling of existing space, employs the
most energy efficient designs, systems, equipment, and controls that
are life cycle cost effective. Not later than 180 days after the date
of enactment of EISA (June 19, 2008), federal agencies must develop a
process for reviewing these decisions and report to OMB on the process
established.
[37] OMB is required to submit a report to Congress on agencies'
compliance within 1 year of EISA's enactment (Dec. 19, 2008). According
to OMB, of the 22 agencies that OMB tracks as part of its energy
management scorecard, all 22 agencies reported that they have
incorporated language on EISA Section 434 compliance into existing
agency guidance documents. In addition, OMB reports including language
in its recent guidance to federal agencies on implementation of the
Recovery Act to require that all federal infrastructure investments
using Recovery Act funds meet the requirements of Section 434.
[38] Section 438 applies to sponsors of federal facility development or
redevelopment projects with a footprint of more than 5,000 square feet.
For particular project sponsors, use of site planning, design,
construction, and maintenance strategies to maintain or restore the
predevelopment hydrology of properties, to the maximum extent
technically feasible, is required.
[39] Pub. L. No. 111-5, title IV, 123 Stat. 149 (2009).
[40] Other agencies with significant real property holdings, such as
DOD and VA, have received Recovery Act funding that is available to
help them meet EISA high-performance federal building requirements. For
example, the Recovery Act provides various service branches of DOD with
a total of $3.84 billion targeted for improving, repairing, and
modernizing DOD facilities; restoring and modernizing real property
(including barracks); and investing in energy efficiency improvements
for DOD facilities. In addition, the Recovery Act provides VA with $1
billion for nonrecurring maintenance, including energy projects, for
its medical facilities.
[41] Even if agencies do not receive specific appropriations to carry
out EISA high-performance federal building requirements, they must
still comply with the requirements using annual or other
appropriations.
[42] A full-time equivalent position generally consists of one or more
employed individuals who collectively complete 2,080 work hours in a
given year. Therefore, either one full-time employee or two half-time
employees equal one full-time equivalent.
[43] This amount includes $127 million for building operations and the
administrative costs of completing these projects; $108 million for
space rental in connection with these projects; and $3 million for on-
the-job training programs registered with the Department of Labor for
the construction, repair, and alteration of federal buildings. The
Recovery Act also provides $750 million for federal buildings and U.S.
courthouses and $300 million for border stations and land ports of
entry, and GSA has similarly identified specific projects for this
funding. GSA's Recovery Act spending plan states that these projects
will meet EISA high-performance federal building requirements.
[44] Although GSA will be responsible for these energy efficiency
projects, other federal agencies that lease facilities from GSA will
benefit from the reduction in energy consumption and will therefore be
in a better position to meet EISA requirements.
[45] These projects are outside the scope of this report; however, we
are currently reviewing GSA's planned use of the Recovery Act funding
to convert GSA facilities to high-performance green buildings and will
issue a separate report on our results.
[46] According to an EPA official, as of February 2009, Portfolio
Manager contained data on 11.5 billion square feet of office space and
83,000 separate offices.
[47] Agencies can receive credit toward meeting energy intensity goals
through the purchase of renewable energy or renewable energy
certificates. Under current DOE guidance, buyers of renewable energy
and renewable energy certificates can claim the credit for the
renewable energy and use it to offset a percentage of their annual
electricity consumption. According to DOE, the amendments to NECPA made
by EPAct 2005 and EISA are silent on whether purchases of renewable
energy can be used to achieve energy intensity reduction goals. Under
Executive Order 13123, 64 Fed. Reg. 30851 (June 8, 1999), which was
revoked by Executive Order 13423, 72 Fed. Reg. 3919 (Jan. 26, 2007),
agencies were permitted to credit renewable energy purchases toward
meeting energy intensity goals. In fiscal year 2008, these credits
began to be phased out for this purpose, per DOE's Renewable Energy
Requirement Guidance for EPAct 2005 and Executive Order 13423.
[48] Although DOD, EPA, and VA officials acknowledged that agencies are
permitted to exempt certain high energy intensity buildings from this
requirement, they said their agencies would try to meet these goals
and, to date, have avoided using exemptions. 42 U.S.C. § 8253(2) allows
agencies to exempt buildings, and the associated energy consumption and
gross square footage, in which energy intensive activities are carried
out. According to draft DOE data for fiscal year 2008, neither EPA nor
VA exempted any of their facilities. DOD exempted facilities equaling
roughly 5 percent of its total facility energy use.
[49] Specifically, Section 433 directs DOE to issue, by rule, revised
federal building energy efficiency performance standards requiring
agencies to eliminate the use of energy generated from fossil fuel in
federal buildings by fiscal year 2030. As part of its regulatory
process for Section 433, DOE will also issue a definition of the term
"major renovation" using specific criteria set forth in Section 433
(a).
[50] In commenting on a draft of this report, GSA stated that
preliminary assessments from DOE and the American Society for Heating,
Refrigeration, and Air-Conditioning Engineers (ASHRAE) indicate that
the near-term EISA goal of a 55 percent reduction in energy generated
from fossil fuels would be achieved by meeting the prior statutory
requirement to perform 30 percent better than the energy code (ASHRAE
90.1), which is contained in EPAct 2005. GSA further stated that the
costs of complying with EISA Section 433 requirements are incorporated
into GSA's budgets for any facility designs beginning in fiscal year
2010 and appropriate Recovery Act contracts.
[51] The GSA official noted that while other agencies can submit a
request for an exemption from this requirement for specific buildings,
GSA cannot. The American Clean Energy and Security Act of 2009, H.R.
2454, 111th Cong. (2009), which was passed by the House on June 26,
2009 would, if passed as written, authorize GSA to make a determination
where applicable, that it is technically impracticable to achieve the
required fossil fuel reduction for specific federal buildings and
petition Congress for a waiver of those facilities. See H.R. 2454, §
161(b)(3)(B)(ii), 111th Cong. (2009).
[52] This percent refers to EPA's reporting facilities--those for which
EPA directly pays the utility bills. According to EPA, of EPA's 175
facilities, 34 are reporting facilities and 32 are energy intensive.
[53] Section 433 of EISA allows for agencies, with the exception of
GSA, to apply for exemptions for certain facilities through the
Secretary of Energy.
[54] We are conducting a separate review of DOD's use of credits for
purchases of renewable energy.
[55] There are requirements outside of EISA Title IV, Subtitle C that
might help achieve the development of this new technology.
Specifically, Section 422 of EISA established the Zero-Net-Energy
Commercial Buildings Initiative within DOE, with the goal of advancing
the development and establishment of zero net energy for any commercial
building constructed in the United States by 2030, among other goals.
To help achieve this goal, the Zero-Net-Energy Commercial Buildings
Initiative conducts research, conducts pilot and demonstration
projects, and develops training materials, among other activities.
[56] Section 432 of EISA defines commissioning, with respect to a
facility, as a systematic process of ensuring, through the use of
appropriate verification and documentation, that beginning with the
initial day of the design phase of the facility and ending not earlier
than 1 year after the date of completion of the facility's
construction, that all facility systems perform interactively, in
accordance with (1) the design documentation and intent of the facility
and (2) the operational needs of the owner of the facility, including
the preparation of operations personnel. According to EISA, the primary
goal of commissioning is to ensure the full functioning of systems so
that they can be properly operated and maintained during the useful
life of the facility. Recommissioning is the process of commissioning a
facility or system beyond the project development and warranty phases,
and its primary goal is to ensure optimum performance over the
facility's useful life, while meeting building occupancy requirements.
Retrocommissioning is a process of commissioning a facility or system
that was not commissioned at the time of construction.
[57] GAO, Federal Energy Management: Addressing Challenges Through
Better Plans and Clarifying the Greenhouse Gas Emission Measure Will
Help Meet Long-Term Goals for Buildings, [hyperlink,
http://www.gao.gov/products/GAO-08-977] (Washington, D.C.: Sept. 30,
2008).
[58] For a list of exceptions to Energy Star leasing requirements, see
appendix II.
[59] To receive an Energy Star label, a building must rank in the top
25th percentile for its building type in EPA's Portfolio Manager
database. Additionally, the whole building must be certified and
therefore the agency must take energy efficiency and conservation steps
throughout the building for it to receive a certification.
[60] GAO, Energy Savings: Performance Contracts Offer Benefits, but
Vigilance Is Needed to Protect Government Interests, [hyperlink,
http://www.gao.gov/products/GAO-05-340R] (Washington, D.C.: June 22,
2005).
[61] Energy savings performance contracts are alternative financing
mechanisms that primarily rely on third parties to fund projects with
the promise that the agencies will repay the third parties from energy
savings.
[62] [hyperlink, http://www.gao.gov/products/GAO-05-340R].
[63] GAO, Capital Financing: Partnerships and Energy Savings
Performance Contracts Raise Budgeting and Monitoring Concerns,
[hyperlink, http://www.gao.gov/products/GAO-05-55] (Washington, D.C.:
Dec. 16, 2004).
[64] [hyperlink, http://www.gao.gov/products/GAO-08-977]. In response
to our recommendation, DOE developed draft long-term planning guidance
and reported making it available to agencies (who participated in its
development) in 2008 as part of energy reporting guidance for fiscal
year 2007. DOE also reported that it would include elements of this
guidance in its guidance implementing Section 432 of EISA.
[65] [hyperlink, http://www.gao.gov/products/GAO-08-977].
[66] [hyperlink, http://www.gao.gov/products/GAO-08-977].
[67] Pub. L. No. 110-140,121 Stat. 1492.
[68] Pub. L. No. 110-140, § 437, 121 Stat. 1492, 1619--20. The act also
required GAO to report by October 31, 2008. GAO met this requirement by
issuing a report [hyperlink, http://www.gao.gov/products/GAO-09-111R]
on that date.
[69] For an outline of the key requirements contained in this report,
see table 1. For a more detailed summary of all requirements contained
in Title IV, Subtitle C, see appendix II.
[70] According to EISA Section 401, a high-performance green building
is a building that, during its life cycle, achieves a number of
environmental goals. Specifically, compared with similar buildings (as
measured by Commercial Buildings Energy Consumption Survey or
Residential Energy Consumption Survey data from the Energy Information
Agency), a high-performance green building (1) reduces energy, water,
and material resource use; (2) improves indoor environmental quality,
including reducing indoor pollution, improving thermal comfort, and
improving lighting and acoustic environments that affect occupant
health and productivity; (3) reduces negative impacts on the
environment throughout the life cycle of the building, including air
and water pollution and waste generation; (4) increases the use of
environmentally preferable products, including biobased, recycled
content, and nontoxic products with lower life cycle impacts; (5)
increases reuse and recycling opportunities; (6) integrates systems in
the building; (7) reduces the environmental and energy impacts of
transportation through building location and site design that support a
full range of transportation choices for users of the building; and (8)
considers indoor and outdoor effects of the building on human health
and the environment, including: (a) improvements in worker
productivity; (b) the life cycle impacts of building materials and
operations; and (c) other factors that the Federal Director or the
Commercial Director consider to be appropriate.
[71] Specifically, the Office of the Federal Environmental Executive
oversees the implementation of Executive Order 13423.
[72] American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5,
123 Stat. 115. While the Recovery Act provides funds to stimulate the
economy and create jobs as well as, in some cases, further other policy
goals, we did not examine how the key implementing agencies' planned
use of Recovery Act funds would contribute to meeting the Recovery
Act's goals.
[73] Section 431 of EISA amends section 543(a)(1) of the National
Energy Conservation Policy Act (NECPA), Pub. L. No. 95-619, 92 Stat.
3206, 3277 (1978), codified as amended at 42 U.S.C. § 8253(a)(1).
Section 431 of EISA increases federal agency energy intensity goals,
while also reinforcing existing energy intensity reduction goals
outlined in Executive Order 13423 (2006).
[74] According to draft DOE energy data, 19 of 22 federal agencies
reporting in fiscal year 2008 met the EISA energy intensity reduction
goal of 9 percent, as shown in fig. 1 of this report.
[75] Section 432 of EISA requires DOE to issue guidelines and necessary
criteria for agencies to implement the section not later than 180 days
after the date of enactment of EISA (June 19, 2008); develop and deploy
a Web-based tracking system not later than 1 year after enactment of
EISA (Dec. 19, 2008); and select and develop a building energy use
benchmarking system and issue related guidance within 1 year of the
date of enactment of EISA (Dec. 19, 2008). Building energy use
benchmarking systems help agencies track and assess energy and water
consumption in federal buildings by allowing them to compare their
buildings with similar buildings.
[76] Facility Energy Management Guidelines and Criteria for Energy and
Water Evaluations in Covered Facilities (42 U.S.C. 8253 Subsection (f),
Use of Energy and Water Efficiency Measures in Federal Buildings)
issued November 25, 2008, and Interim Guidance: Initial Reporting of
Findings from Comprehensive Energy and Water Evaluations in Covered
Facilities (42 U.S.C. 8253 Subsection (f), Use of Energy and Water
Efficiency Measures in Federal Buildings) issued May 26, 2009.
[77] According to draft data collected by DOE, 22 out of 23 federal
agencies reported to DOE in January 2009 identifying their designated
energy managers and covered buildings.
[78] According to draft data collected by DOE, 20 out of 23 federal
agencies reported to DOE in June 2009 on their initial energy and water
evaluations.
[79] According to DOE, GSA, EPA, and DOE are also working together to
integrate a Federal High-Performance Sustainable Buildings Checklist
into the Energy Star Portfolio Manager. The purpose of this checklist
is to assist federal agencies with assessing their existing building
stock against the Guiding Principles for Sustainable Existing
Buildings, and for reporting on the sustainability data element in the
Federal Real Property Profile. DOE anticipates the checklist will be
launched in the fall of 2009.
[80] Section 433 states that buildings shall be designed so that the
fossil-fuel-generated energy consumption of the buildings is reduced,
compared with such energy efficiency consumption by a similar building
in fiscal year 2003, as measured by the Commercial Buildings Energy
Consumption Survey or the Residential Energy Consumption Survey data
from the Energy Information Agency. These requirements call for a 55
percent reduction by fiscal year 2010 and the elimination of all such
energy consumption in federal buildings by fiscal year 2030, relative
to a fiscal year 2003 baseline.
[81] Section 433 of EISA requires DOE to establish, by rule, revised
federal building energy efficiency performance standards for new
federal buildings and those undergoing major renovations not later than
1 year after enactment of EISA (Dec. 19, 2008).
[82] Section 433 of EISA requires DOE to identify a certification
system and level for green buildings not later than 90 days after the
date of enactment of EISA (Mar. 19, 2008).
[83] LEED is a third-party certification program and a national
benchmark for the design, construction, and operation of high-
performance green buildings, according to the U.S. Green Building
Council.
[84] Geothermal heat pumps, also known as ground-source heat pumps, can
be used to heat, cool and, if so equipped, supply a facility with hot
water by using the constant temperature of the earth as the exchange
medium instead of the outside air temperature. Relative to air-source
heat pumps, geothermal heat pumps are highly efficient, last longer,
and need less maintenance.
[85] See appendix II for a list of exceptions to Section 435.
[86] The Acting Director for GSA's Office of Federal High-Performance
Green Buildings said that the agency anticipates the Energy Star
leasing requirement will apply to approximately 35 percent of the
agency's total leases, covering approximately 70 percent of the total
square footage. The official said that the remainder of GSA's leases
will fall under one of the exceptions to Section 435; however there are
additional requirements in Section 435 for these excepted leases, as
well.
[87] Section 436 of EISA requires GSA to establish an Office of Federal
High-Performance Green Buildings not later than 60 days after the date
of enactment of EISA (Feb. 19, 2008).
[88] We previously reported on GSA's and the office's activities in
October 2008. See GAO, Status of GSA's Implementation of Selected Green
Building Provisions of the Energy Independence and Security Act of
2007, [hyperlink, http://www.gao.gov/products/GAO-09-111R] (Washington,
D.C.: Oct. 31, 2008).
[89] EISA requires GSA's Office of Federal High-Performance Green
Buildings to establish a senior-level Federal Green Building Advisory
Committee, which is to, among other things, provide advice and
recommendations on current budget and contracting practices and
identify tools to aid life cycle cost decision making.
[90] EISA requires GSA to ensure coordination with nine relevant
agencies and offices including EPA; the Office of the Federal
Environmental Executive; the Office of Federal Procurement Policy; the
Departments of Energy, Health and Human Services, Defense, and
Transportation; the National Institute of Standards and Technology; and
the Office of Science and Technology.
[91] Section 436 of EISA requires that the Office of Federal High-
Performance Green Buildings identify and provide to DOE a certification
system that the Director determines to be the most likely to encourage
a comprehensive and environmentally sound approach to the certification
of green buildings not later than 60 days after enactment of EISA (Feb.
19, 2008).
[92] Section 436 of EISA requires, not later than 2 years after the
date of enactment of EISA (Dec. 19, 2009), that the Office of Federal
High-Performance Green Buildings submit a report to Congress describing
the status of GSA's compliance with Title IV, Subtitle C.
[93] Section 439 requires GSA to review the current use and
availability of cost-effective lighting technologies and geothermal
heat pumps in GSA facilities as part of a program to accelerate the use
of more cost-effective technologies and practices at GSA facilities
within 90 days of EISA's enactment (Mar. 19, 2008).
[94] Specifically, the Acting Director of GSA's Office of Federal High-
Performance Green Buildings told us that GSA has used Recovery Act
funds to identify nearly 100 GSA buildings with the highest energy use
to conduct complete lighting replacements as part of the cost-effective
technology acceleration program required by EISA Section 439.
[95] 42 U.S.C. § 8253(f)(9) requires OMB to incorporate this
information into its scorecards. In the status milestone for energy in
OMB's July 2009 Management Scorecard, 11 agencies received a green
light, 4 agencies received a yellow light, and 7 agencies received a
red light.
[96] In the progress milestone for energy in OMB's January 2009
Management Scorecard, 21 agencies received a green light and 1 agency
received a yellow light. In the progress milestone for energy in OMB's
July 2009 Management Scorecard, 18 agencies received a green light, 3
agencies received a yellow light, and 1 agency received a red light.
[97] Section 434 of EISA requires federal agencies to ensure that any
large capital energy investment in an existing building that is not a
major renovation but involves the replacement of installed equipment
(such as heating and cooling systems), or the renovation,
rehabilitation, expansion, or remodeling of existing space, employs the
most energy efficient designs, systems, equipment, and controls that
are life cycle cost effective. Not later than 180 days after the date
of enactment of EISA (June 19, 2008), federal agencies must develop a
process for reviewing these decisions and report to OMB on the process
established.
[98] Section 434 of EISA requires OMB to evaluate and report to
Congress on the compliance of each agency not later than 1 year after
the date of EISA's enactment (Dec. 19, 2008). According to OMB, of the
22 agencies that OMB tracks as part of its energy management scorecard,
all 22 agencies reported that they have incorporated language on EISA
Section 434 compliance into existing agency guidance documents. In
addition, OMB reports including language in its recent guidance to
federal agencies on implementation of the Recovery Act to require that
all federal infrastructure investments using Recovery Act funds meet
the requirements of Section 434.
[End of section]
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