General Services Administration

The Federal Energy Management Improvement Act of 1988 requires all federal agencies, including the General Services Administration (GSA), to reduce building energy usage by 10 percent from 1985 levels by 1995. While GSA has been actively pursuing energy conservation, it faces a formidable challenge in achieving the required 10-percent building energy reduction by 1995, and it is too early to tell whether GSA's efforts will be successful. Because GSA has developed a comprehensive strategy to reduce building energy usage, has begun funding a variety of specific energy conservation initiatives, and is actively exploring other energy-saving opportunities, this report makes no recommendations to GSA.

GAO found that: (1) in 1990, GSA developed a comprehensive building energy reduction plan; (2) under this plan, GSA is taking such steps to reduce energy consumption as funding energy reduction projects and educating tenant agencies about energy conservation; (3) GSA is also pursuing shared energy-saving contracts, under which contractors install energy-saving equipment in federal buildings in return for a percentage of the resulting cost savings and energy rebates; and (4) GSA is considering having public utilities help finance energy conservation investments that reduce the demand for energy. GAO also found that GSA believes that the 10-percent reduction requirement will be difficult to achieve, since: (1) it completed the most obvious and cost-effective conservation measures before 1985, and the remaining energy-savings opportunities that are more expensive and will produce fewer energy savings; and (2) changes in such building and tenant agency operations, as the increased use of personal computers have increased the demands for energy.