Attachment 25-E.O. 13834 Implementing Instructions.pdf

Implementing Instructions for

Executive Order 13834

Efficient Federal Operations

Council on Environmental Quality

Office of Federal Sustainability

April 2019 i

Table of Contents

I. Introduction

A. Purpose

B. Authority

C. Overarching Policy

D. Governance, Oversight, and Organization

1. Steering Committee

2. Agency Chief Sustainability Officers

3. Principal and Contributing Agencies

4. Interagency Working Groups

II. Reporting and Planning

A. Progress and Performance Metrics

B. Data Collection and Reporting

C. Annual Sustainability Report and Implementation Plan

III. Sustainability Goals

A. Building Efficiency and Management

1. Energy Reduction

2. Renewable Energy

3. Water Management

4. Performance Contracting

5. Sustainable Buildings

6. Waste Management

7. Building Evaluations, Benchmarking, and Energy Management

B. Fleet Management

C. Cross-Cutting Goals

1. Acquisition

2. Electronics Stewardship

3. Data Center Management

4. Greenhouse Gas Management and Reporting

Appendix A – Definitions

Appendix B – List of Acronyms and Abbreviations

Appendix C – Interagency Working Groups

Appendix D – Reporting Requirements, Systems and Deadlines

I. Introduction

A. Purpose

This document provides Federal executive departments and agencies (agencies) with instructions regarding implementation of Executive Order (E.O.) 13834, Efficient Federal Operations, including agency planning, reporting requirements, and accountability.

B. Authority

These Implementing Instructions (Instructions) are issued under the authority of E.O. 13834, including Sections 3(a), 3(d) and 4(b). E.O. 13834 authorizes the Chairman of the Council on

Environmental Quality (CEQ), in coordination with the Director of the Office of Management and Budget (OMB), to issue instructions for the implementation of E.O. 13834 and guidance to assist agencies in such implementation.1

CEQ may update or amend these Instructions or issue additional guidance, as appropriate and necessary. Agencies may issue supplementary internal instructions or guidance regarding implementation of E.O. 13834 consistent with these Instructions and other guidance documents issued by CEQ or OMB.

In this document, “must” and “shall” convey statutory or regulatory requirements, “instruct” conveys directives to implement E.O. 13834, and “should” or “may” convey recommended best practices for efficient and effective implementation. While this document identifies a number of requirements, directives, and best practices, these Instructions do not alter or revise obligations agencies may have with respect to any statutory, regulatory, or other requirements not cited herein or established after issuance of these instructions.

C. Overarching Policy

E.O. 13834 sets forth energy and environmental performance goals, based on statutory requirements, for agencies with respect to management of facilities, vehicles, and operations.

Section 1 of E.O. 13834 establishes the following policy priorities for agency implementation:

[A]gencies shall meet such statutory requirements in a manner that increases efficiency, optimizes performance, eliminates unnecessary use of resources, and protects the environment. In implementing this policy, each agency shall prioritize actions that reduce waste, cut costs, enhance the resilience of Federal infrastructure and operations, and enable more effective accomplishment of its mission.

D. Governance, Oversight, and Organization

1. Steering Committee

The Federal Interagency Sustainability Steering Committee (Steering Committee), referenced in

Section 4(a) of the E.O., is chaired by the Federal Chief Sustainability Officer and composed of

1 This document is intended solely to improve the internal management of the Executive Branch. It is not intended to and does not create any right or benefit, substantive or procedural, enforceable by any party against the United

States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

Agency Chief Sustainability Officers (CSOs). The Steering Committee advises the Chairman of

CEQ and Director of OMB on effectiveness of E.O. 13834 goals, provides input on implementation, and shares information regarding implementation practices and accomplishments with senior managers across the Federal community.

2. Agency Chief Sustainability Officers

Section 7(a) of E.O. 13834 directs the head of each agency to designate an agency CSO to perform duties to implement E.O. 13834. Agency CSOs are accountable for:

Internal oversight, direction, and leadership to comply with E.O. 13834 and achieve goals outlined in Section 2 of the E.O.;

Ensuring that agency policies and programs reflect the requirements of E.O. 13834;

Coordinating with senior agency leaders, such as the Chief Information Officer (CIO), Chief Financial Officer (CFO), and Chief Acquisition Officer (CAO), as necessary, for effective implementation;

Monitoring agency performance and providing information and progress reports as required by CEQ and OMB; and

Representing the agency on the Steering Committee.

3. Principal and Contributing Agencies

Principal agencies include agencies subject to the Chief Financial Officers Act (Pub. L. No. 101-

576) and the OMB scorecard process referenced in Section 5(b) of E.O. 13834. They include:

Department of Agriculture (USDA)

Department of Commerce

Department of Defense (DOD)

Department of Energy (DOE)

Department of Education

Department of Homeland Security

Department of the Interior

Department of Justice

Department of Labor

Department of State

Department of Transportation

Department of the Treasury

Department of Veterans Affairs

Environmental Protection Agency (EPA)

General Services Administration (GSA)

Department of Health and Human Services

Department of Housing and Urban

Development

National Archives and Records

Administration

National Aeronautics and Space

Administration

Office of Personnel Management

Smithsonian Institution

Social Security Administration

Tennessee Valley Authority

U.S. Army Corps of Engineers (USACE)

Additionally, the U.S. Postal Service is subject to many of the statutory requirements covered by

E.O. 13834. It receives an OMB scorecard, and functions like a principal agency.

All other executive agencies, including Federal Boards, Commissions, and Committees, are considered contributing agencies. These agencies generally have smaller operational footprints and may not manage facilities or vehicle fleets, and therefore have lesser reporting requirements than principal agencies.

4. Interagency Working Groups

Federal interagency working groups provide a forum for exchange, collaboration, resource sharing, and coordination. CEQ or OMB may request input from interagency working groups to inform policy, guidance, metrics, reporting, tools, and resources to improve implementation of

E.O. 13834 and related sustainability practices and policies. See Appendix C for a list of standing interagency working groups. CEQ may also establish and disband additional working groups, as necessary.

II. Reporting and Planning

A. Progress and Performance Metrics

Section 3(a) of E.O. 13834 authorizes CEQ and OMB to develop and issue requirements and streamlined metrics to assess agency progress and performance in achieving E.O. goals. The metrics and performance measures outlined in Section III of these Instructions may be updated, as necessary, to promote effective implementation of E.O. 13834 goals. Pursuant to 42 U.S.C. §

17144 and E.O. 13834 Section 5(b), OMB will incorporate performance measures into the agency Scorecards for Efficient Federal Operations/Management (OMB Scorecard).

B. Data Collection and Reporting

To streamline reporting and analysis, monitor progress, and measure performance, agencies’ fiscal year data will be obtained by CEQ and OMB through established Federal reports and data collection systems, primarily including:

Annual Energy Management Data Report (Annual Energy Report) – energy, renewable energy, and water use; investments in facility efficiency; new building design compliance;

metering; and greenhouse gas (GHG) emissions data. This report is submitted to DOE’s

Federal Energy Management Program (FEMP) annually.

Federal Automotive Statistical Tool (FAST) – vehicle acquisition, fuel use, and mileage data.

Federal Real Property Profile Management System (FRPP-MS) – sustainable buildings status.

Federal Procurement Data System - Next Generation (FPDS-NG)2 – procurement data, including sustainable acquisition.

Agencies’ supporting data may also be obtained through OMB’s Integrated Data Collection

(IDC) system and DOE’s Energy Independence and Security Act of 2007 (EISA) Section 432

Compliance Tracking System (CTS) for Federal building evaluations. CEQ and/or OMB may identify other data collection and reporting tools, or request supplemental data, as appropriate.

For a summary of current reporting requirements, systems, and deadlines, see Appendix D.

Agencies should review, monitor, and utilize the data, analysis, and reports available through these systems, as well as any agency-specific data sources, to track performance, identify strategies for improvement, and report results in the annual Sustainability Report and

Implementation Plan (“Sustainability Plan”) as described below.

C. Annual Sustainability Report and Implementation Plan

Pursuant to section 7(b) of E.O. 13834, agencies are required to report to the Chairman of CEQ and the Director of OMB regarding agency implementation and progress toward the goals of

E.O. 13834 and relevant statutory requirements.

Pursuant to Section 2(h) and 7(b) of E.O. 13834, principal agencies are instructed to develop and submit an annual Sustainability Plan that summarizes actions implemented to meet the goals of

E.O. 13834, progress results, cost savings, and the agency’s strategies for continued progress and performance improvements. Agencies will also identify yearly progress milestones in their

Sustainability Plans, as indicated in these Instructions, as well as factors that have a material

2 Agencies may use alternative contracting data systems to evaluate their acquisition performance, where appropriate. See section III.C.1: Acquisition.

https://www.energy.gov/eere/femp/downloads/annual-energy-management-data-report https://fastweb.inl.gov/ https://www.realpropertyprofile.gov/FRPPMS/FRPP_Login https://www.fpds.gov/fpdsng_cms/index.php/en/ https://ctsedwweb.ee.doe.gov/CTSDataAnalysis/ComplianceOverview.aspx impact on agency implementation and progress, such as mission requirements or other organizational changes.

Contributing agencies are encouraged to develop and submit an annual Sustainability Plan, and may choose to submit an abbreviated plan, at their discretion, addressing those elements specific to agency operations.

CEQ will issue annual instructions and a template for the Sustainability Plan, which will be due to CEQ and OMB by June 30 of each year, unless otherwise specified. After CEQ review and

OMB approval, CEQ will make plans publicly available through www.sustainability.gov.

Implementation Actions:

To facilitate efficient implementation, progress tracking, and performance measurement, CEQ and OMB will coordinate with FEMP and GSA on an ongoing basis to identify opportunities to 1) further streamline data collection, 2) improve reporting and data analysis,

3) use data to inform cost-effective implementation, and 4) quantify cost savings.

FEMP, in coordination with other agencies, as appropriate, should identify or develop tools and methodologies to assist agencies in developing progress milestones and projections for facility energy, water, performance contracting, and sustainable building goals.

Agencies that provide government-wide technical support and information for Federal energy and environmental performance, including FEMP, GSA, EPA, and USDA, should ensure that relevant materials, trainings, and web resources are reviewed and regularly updated, as appropriate, to provide current information with regard to Federal policies, priorities, guidance, and best management practices.

http://www.sustainability.gov./

III. Sustainability Goals

This section provides clarifying instructions for the goals under Section 2 of E.O. 13834 and important cross-cutting topics and is organized as follows:

A. Building Efficiency and Management

1. Energy Reduction

2. Renewable Energy

3. Water Management

4. Performance Contracting

5. Sustainable Buildings

6. Waste Management

7. Building Evaluations, Benchmarking, and Energy Management

B. Fleet Management

C. Cross-Cutting Goals

1. Acquisition

2. Electronics Stewardship

3. Data Center Management

4. Greenhouse Gas Management and Reporting

Each subsection contains, where applicable:

Goal:

E.O. 13834 goal statement or relevant policy requirements.

Progress Metrics:

Each goal includes a summary of metrics for tracking, measuring, and reporting progress.

Metrics: Unit(s) of measurement for tracking progress

Performance

Measures:

Numerical targets and criteria used for evaluating performance on the annual

OMB Scorecard. Agencies will be accountable for achieving established targets and demonstrating annual improvement.

Progress

Milestones:

Where indicated, agencies will identify planned or projected progress in annual Sustainability Plans to promote planning, transparency, and accountability.

Metrics, performance measures, and reporting criteria may be updated or revised, as appropriate, for effective implementation. Note that the OMB Scorecard also tracks various data as indicators to assist in assessing implementation strategies, program management, cost effectiveness, and results. Indicator data will be drawn from existing reports to provide transparency and insight into agency operations, and are not used for scoring agency performance. Examples of indicators are included in each Tracking and Reporting subsection.

Requirements and Priority Strategies:

Requirements include relevant statutory mandates and OMB and CEQ directives for implementation. Priority strategies are recommended best management practices to improve performance, enhance efficiency, and reduce costs. Further guidance issued by CEQ, OMB, or under the authority of a specific agency (e.g., DOE, GSA, EPA, or USDA), containing requirements or instructions relevant to the goal area may be included. In addition, this section may cite key resources that can assist agencies in implementing strategies to achieve the goal, including Federal programs, websites, technical materials, and tools.

Generally, the priority strategies included in this section represent high-level, best management practices to guide agency implementation. Agencies are not limited to the best practices described and should consult current technical resources provided by FEMP, GSA, EPA, and other agencies; consider a range of cost-effective activities, measures, and technologies; and continue effective management strategies, such as Environmental Management Systems (EMS), that facilitate implementation and progress toward E.O. goals.

As indicated in Section 1 of E.O. 13834, agencies should prioritize strategies that reduce waste, cut costs, enhance resilience, and enable more effective accomplishment of agency missions.

Resilience generally can be defined as the ability to anticipate, prepare for, and adapt to changing conditions and withstand, respond to, and recover rapidly from disruptions. Section 101(e) of title 10, U.S. Code establishes a specific definition for military installation resilience and defines energy resilience as “the ability to avoid, prepare for, minimize, adapt to, and recover from anticipated and unanticipated energy disruptions in order to ensure energy availability and reliability sufficient to provide for mission assurance and readiness, including mission essential operations related to readiness, and to execute or rapidly reestablish mission essential requirements.”

Several agencies, including DHS, DOD, USACE, and GSA, have developed strategies and tools to improve resilience of facilities and operations, and FEMP is currently developing a systematic, comprehensive approach to resilience portfolio planning to assist agencies in identifying mission risk and prioritizing projects. Agency resilience planning resources and case studies will be available on FEMP’s webpage for Portfolio Resilience Planning and

Implementation.

Implementation Actions:

This section lists specific actions or follow-up activities for E.O. 13834 implementation, such as revisions to guidance, development of technical resources, or interagency coordination.

Agencies are required to complete the specific actions or follow-up activities as assigned in this section.

To the extent that these Instructions are updated or amended, CEQ will revise these sections to reflect any completed actions.

https://www.energy.gov/eere/femp/portfolio-resilience-planning-and-implementation https://www.energy.gov/eere/femp/portfolio-resilience-planning-and-implementation

A. Building Efficiency and Management

1. Energy Reduction

E.O. 13834 Section 2(a): Achieve and maintain annual reductions in building energy use and implement energy efficiency measures that reduce costs.

Progress Metrics:

Metrics:

British thermal units (Btu) used per gross square foot (GSF) of Federal building space (Btu/GSF).

Performance

Measures:

Achieved 30 percent reduction in Btu/GSF relative to fiscal year (FY) 2003 and demonstrates annual progress for each fiscal year.

Progress

Milestones:

Agencies will identify targeted reduction for the next fiscal year in the annual

Sustainability Plans.

Requirements and Priority Strategies:

Section 431 of the Energy Independence and Security Act of 2007 (EISA), titled Energy

Reduction goals for Federal buildings, directed agencies to reduce energy intensity—the energy consumed per GSF of Federal building space—annually to achieve a 30 percent reduction by FY

2015, compared to a FY 2003 baseline (42 U.S.C. § 8253(a)).3 Performance toward the energy reduction goal will be measured on whether the agency has achieved a 30 percent reduction in energy intensity from FY 2003 and has demonstrated continued progress in reducing energy intensity in the reporting year.

As performance is assessed at the agency level, rather than at the individual building level, agencies should evaluate opportunities across their building portfolios to maximize return on investment by implementing no cost, low-cost, and life cycle cost-effective energy reduction strategies.

To achieve and maintain annual reductions in total energy use and costs and continued reductions in energy intensity, agency strategies should emphasize optimizing building energy performance and implementing cost-effective energy conservation measures (ECMs)4 identified through on-going energy and water facility evaluations (as discussed in further detail in Section

III.A.7, Building Evaluations, Benchmarking, and Energy Management). Agencies are also encouraged to participate in available utility incentive programs to increase energy efficiency as well as energy demand management programs as described in 42 U.S.C. § 8256(c). With respect to new buildings and major renovations, strategies must ensure compliance with energy-efficiency performance standards (42 U.S.C. § 6834(a)(3)(A)) and design standards for new and existing buildings (42 U.S.C. § 6834(a)(3)(D)(i)(III)).

Credits toward Annual Progress Calculations: In accordance with ongoing practice, agencies may receive credit toward annual progress using methodologies contained in FEMP’s Reporting

3 In accordance with 42 U.S.C. § 8253(a)(2) and established guidance, agencies may exclude certain Federal facilities from the energy intensity reduction requirements. See Energy Performance Requirements of Section 543 of the National Energy Conservation Policy Act as Amended by the Energy Policy Act of 2005.

4 Energy conservation measures are measures that are applied to a Federal building that improve energy efficiency and are life cycle cost-effective and that involve energy conservation, cogeneration facilities, renewable energy sources, improvements in operations and maintenance, or retrofit activities (42 U.S.C. § 8259(4)).

https://www.energy.gov/eere/downloads/reporting-guidance-federal-agency-annual-report-energy-management-42-usc-8258 https://www.energy.gov/eere/femp/downloads/guidelines-establishing-criteria-excluding-buildings-energy-performance https://www.energy.gov/eere/femp/downloads/guidelines-establishing-criteria-excluding-buildings-energy-performance

Guidance for Federal Agency Annual Report on Energy Management. Adjustments to energy intensity calculations will be accounted for separately in annual progress data, to transparently show progress from the base year with and without the adjustments.

i. Energy Intensity Improvements in Goal-Excluded Buildings: Agencies will be credited for verified energy efficiency improvements at goal-excluded buildings, in accordance with FEMP’s reporting guidance for the Annual Report on Energy

Management.

ii. Source Energy Savings Projects that Increase Site-delivered Energy: Agencies may receive a “site/source credit” for projects that save source energy but increase site-delivered energy (e.g., on-site combined heat and power (CHP) is an optional credit that may be applied in a reporting year).

iii. On-Site Renewable Energy: Agencies may receive credit toward annual progress for energy from renewable energy systems installed on a Federal facility, provided that the agency retains the renewable energy certificates (RECs), buys replacement RECs, or can otherwise confirm ownership of the environmental attributes as described in Section

III.A.2: Renewable Energy.

iv. Normalization for Weather: FEMP has developed methodologies5 to measure impacts of localized weather on energy intensity of buildings using benchmarking data reported to

DOE’s web-based EISA 432 Compliance Tracking System. If weather-adjusted Btu consumption for benchmarked buildings is lower than unadjusted consumption, agencies may request that the adjusted Btu be used to assess annual progress.

Tracking and Reporting:

Agencies are instructed to report energy intensity performance through the Annual Energy

Report and identify yearly improvement targets in their Sustainability Plans, in accordance with annual instructions.

To assist with effective program management, data points tracked as indicators currently include:

Average energy cost (cost per site-delivered million Btu).

Total Btu (billions) and cost (in dollars) of energy consumed.

Guidance and Resources:

FEMP’s Federal Comprehensive Annual Energy Reporting Requirements and Guidance

(42 U.S.C. § 8258).

See related guidance referenced in Building Evaluations, Benchmarking, and Energy

Management.

FEMP’s Facility and Fleet Optimization website provides resources and information on practices and technologies for energy efficiency.

GSA’s Proving Ground (GPG) evaluates benefits and performance of next generation building technologies for energy and water savings in Federal facilities.

FEMP’s EISA 432 Compliance Tracking System website.

5 Contained in FEMP’s Reporting Guidance for Federal Agency Annual Report on Energy Management.

https://www.energy.gov/eere/downloads/reporting-guidance-federal-agency-annual-report-energy-management-42-usc-8258 https://ctsedwweb.ee.doe.gov/CTSDataAnalysis/Default.aspx?ReturnUrl=%2fCTSDataAnalysis%2fComplianceOverview.aspx https://www.energy.gov/eere/downloads/reporting-guidance-federal-agency-annual-report-energy-management-42-usc-8258 https://www.energy.gov/eere/femp/facility-and-fleet-optimization https://www.gsa.gov/governmentwide-initiatives/sustainability/emerging-building-technologies/about-gsa%E2%80%99s-proving-ground-gpg https://ctsedwweb.ee.doe.gov/CTSDataAnalysis/Default.aspx?ReturnUrl=%2fCTSDataAnalysis%2fComplianceOverview.aspx https://www.energy.gov/eere/downloads/reporting-guidance-federal-agency-annual-report-energy-management-42-usc-8258

2. Renewable Energy

E.O. Section 2(b): Meet statutory requirements relating to the consumption of renewable energy and electricity.

Progress Metrics:

Metrics: Percent of total electricity consumed from renewable sources.

Performance

Measures:

At least 7.5 percent of total electricity consumption.

Progress

Milestones:

Agencies will identify target percentage consumption for the next fiscal year in annual Sustainability Plans.

Requirements and Priority Strategies:

Section 203 of the Energy Policy Act of 2005 (EPAct), titled Federal purchase requirement, directed the Federal Government to consume a minimum percentage of renewable electricity each fiscal year (42 U.S.C. § 15852). To meet this requirement, each agency shall consume at least 7.5 percent of its total electricity from renewable sources. Renewable electricity is defined as electric energy generated from solar, wind, biomass, landfill gas, ocean (including tidal, wave, current, and thermal), geothermal, municipal solid waste, or new hydroelectric generation capacity achieved from increased efficiency or additions of new capacity at an existing hydroelectric project.6

Non-electric or thermal renewable energy, including geothermal heat pumps, does not count toward the statutory renewable electricity requirement, but is currently tracked as an indicator.

Agencies may use all of the following options for meeting the renewable electricity requirement, and should prioritize renewable energy strategies that enable on-site generation, enhance energy resilience of Federal facilities, and reduce costs:

1. Installing on-site renewable electricity generation at a Federal facility;

2. Purchasing electricity from renewable sources (produced either on- or off-site) with associated renewable energy certificates (RECs);7 and

3. Purchasing RECs.

Credit for Energy Produced at Federal Facilities or Federal or Indian Land8: In accordance

42 U.S.C. § 15852(c), agencies will receive “bonus” credit equivalent to doubling the amount of renewable electricity used or purchased if the energy is:

1. Produced and used on-site at a Federal facility;

2. Produced on Federal lands and used at a Federal facility; or

3. Produced on Indian land and used at a Federal facility.

6 As defined in 42 U.S.C. § 15852(b)(2). For hydroelectric, “new” means placed in service after 1/1/1999, consistent with the definition of new hydroelectric generation capacity in section 2852 of the National Defense

Authorization Act for Fiscal Year 2007 as amended by section 2842 of the National Defense Authorization Act for

Fiscal Year 2010 (10 U.S.C. § 2911(e)).

7 A REC represents ownership of the environmental and other non-power attributes associated with generation of one megawatt-hour (MWh) of renewable electricity.

8 As defined in title XXVI of the Energy Policy Act (EPAct) of 1992 (25 U.S.C. § 3501 et seq.).

A renewable energy source that converts renewable fuels into useful electricity qualifies as long as the primary equipment converting the fuel to electricity is located on Federal or Indian lands, even if all or a portion of the fuel is delivered from non-Federal lands.

On-site Renewable Electricity: To count on-site energy consumption toward the renewable electricity requirement, an agency must retain ownership of associated RECs.9

In cases where RECs are sold, agencies should obtain replacement RECs, also referred to as a “REC swap,” in order to claim consumption of the renewable energy in accordance with the guidelines for purchased RECs below.

If an agency directly consumes electricity from an on-site renewable energy source, but registration of RECs is not available or practical, the agency may count consumption toward the target if the agency retains records verifying system operations (for unmetered systems), energy production (metered systems), and ownership of the environmental attributes.

Purchase of Renewable Electricity: Agencies have various options to purchase renewable electricity, including from a utility provider or through a power purchase agreement (PPA). Electricity produced by a renewable energy source placed into service within 15 years prior to the start of the reporting fiscal year may be counted toward the renewable electricity requirement. All purchases of renewable electricity must be substantiated through the exclusive ownership of RECs by the reporting agency, or through records demonstrating that RECs have been retired on behalf of the agency by the supplier.

Purchasing RECs: As with renewable energy purchases, RECs from projects placed in service within 15 years can be counted toward the renewable electricity requirement.

Tracking Progress and Reporting:

Agencies report renewable energy consumption through the Annual Energy Report and will identify a yearly consumption target in their Sustainability Plans, in accordance with annual instructions.

To assist with effective program management, data points tracked as indicators currently include:

Percent of total energy (electric and thermal) from renewable sources.

Guidance and Resources:

FEMP provides up-to-date information on renewable energy project implementation and purchasing, including best practice documents, templates, and tools, such as the:

Guide to Integrating Renewable Energy in Federal Construction;

Large-Scale Federal Renewable Energy Projects Guide;

Procuring Solar Energy: A Guide for Federal Facility Decision Makers;

Energy Savings Performance Contract Energy Sales Agreements website; and the

REopt platform, a decision support model to optimize energy systems for buildings, campuses, communities, and microgrids.

9 Agency retained RECs from renewable electricity generated on Federal or Indian land are exempted from the placed in service requirement.

https://energy.gov/node/756801 https://www.energy.gov/eere/femp/downloads/large-scale-federal-renewable-energy-projects https://energy.gov/node/927246 https://www.energy.gov/eere/femp/energy-savings-performance-contract-energy-sales-agreements https://reopt.nrel.gov/

EPA’s Green Power Partnership website.

GSA, the Defense Logistics Agency (DLA), and DOE’s Western Area Power

Administration (WAPA) purchase renewable electricity and RECs on behalf of agencies.

Agencies may also consult with FEMP regarding technical support and procurement options for on-site projects.

Implementation Actions:

Within 180 days of these Instructions, FEMP, in consultation with CEQ and OMB, will issue a renewable energy resource guide, to include best practices and technical clarifications for meeting the renewable electricity requirement, in accordance with

Energy Policy Act of 2005 (EPAct) (42 U.S.C. § 15852(a)) and E.O. 13834.

https://www.epa.gov/greenpower

3. Water Management

E.O 13834 Section 2(c): Reduce potable and non-potable water consumption, and comply with stormwater management requirements.

Progress Metrics:

Metrics:

Potable water intensity, measured in gallons per GSF of Federal building space.

Performance

Measures:

Achieved 20 percent reduction relative to FY 2007 and demonstrates annual progress for each fiscal year.

Progress

Milestones:

Agencies will identify targeted reduction for the next fiscal year in annual

Sustainability Plans.

Requirements and Priority Strategies:

Reducing potable and non-potable water consumption: Performance toward the water management goal will be assessed based on potable water intensity; however, agencies should implement a comprehensive water management strategy that prioritizes reducing potable and non-potable consumption from freshwater (groundwater and surface water) sources, eliminating unnecessary use, and increasing water use efficiency for Federal facility operations.10 In addition, agencies should identify and implement measures to replace use of freshwater with alternative water11 where feasible and consistent with State and local laws.

As performance is measured at the agency level, rather than at the individual building level, agencies should evaluate opportunities across their portfolios and implement no cost, low cost, and life cycle cost-effective measures to maximize return on investment. Metering (in accordance with Federal building metering guidance) and completing a water balance analysis12 can both assist agencies in optimizing water management at the building, facility, or campus level. Agencies should also track use of non-potable freshwater and alternative water as part of an overall water management strategy to reduce consumption and costs.

To achieve and maintain annual reductions in total water use and costs and to continue reductions in potable water intensity, agency strategies should emphasize optimizing building water performance by implementing cost-effective water savings measures identified through on-going energy and water facility evaluations (as discussed in further detail in Section III.A.7, Building Evaluations, Benchmarking, and Energy Management).

10 E.O. 13834 does not affect water transfers, water rights, or water deliveries in response to official negotiated agreements; water used for wildland firefighting; or contracts to supply water for authorized uses from Federal projects.

11 Alternative water is water from non-freshwater sources, such as on-site harvested rainwater and stormwater, harvested sump pump/foundation water, gray water, air-cooling condensate, reject water from water purification systems, reclaimed wastewater, or water derived from other water reuse strategies.

12 A water balance analysis identifies the proportion of water consumption for specific end uses, compares total water supplied against the water consumed for each specific end use, and nets out total water loss (leaks) in a particular building, facility, or campus.

https://www.energy.gov/sites/prod/files/2014/11/f19/metering_guidance.pdf

Calculating potable water gallons/GSF - Generally, buildings and associated GSF should be the same as that reported for both energy goal subject buildings and goal excluded facilities under 42

U.S.C. § 8253(a).

Agencies may take the following exclusions and adjustments when reporting water use data, consistent with methodologies provided in the annual reporting instructions issued by FEMP:

Where potable freshwater is displaced with alternative water: Agencies may deduct alternative water gallons from total potable water consumption.

Non-water using facilities: If a significant portion of an agency’s building portfolio does not have potable water service (e.g., facilities that use energy, but are unoccupied),13 the corresponding GSF may be deducted.

Other exclusions: Consistent with reporting under previous guidance, agencies may exclude water use and/or GSF for central utility plants; certain leased spaces where the agency does not pay for water utilities; and buildings where energy use is skewed because the building is undergoing disposal or major renovations.

Stormwater Management: Agencies must meet statutory requirements related to stormwater management. Stormwater is water generated from rain and snowmelt events that flow over land or impervious surfaces, such as paved streets, parking lots, and building rooftops, and does not soak into the ground. Section 438 of EISA (42 U.S.C. § 17094) establishes requirements on new agency construction projects (i.e., development and redevelopment projects involving a Federal facility with a footprint that exceeds 5,000 square feet) to manage stormwater and preserve and/or restore predevelopment hydrology.

Tracking and Reporting:

Agencies are instructed to report potable water consumption data through the Annual Energy

Report and identify yearly improvement targets in their Sustainability Plans, in accordance with annual instructions.

To assist with effective program management, data points tracked as indicators currently include:

Average water cost (measured per thousand gallons).

Total gallons (in thousands) and total cost (in dollars) of potable water consumed.

Guidance and Resources:

EPA’s Technical Guidance on Implementing the Stormwater Runoff Requirements for

Federal Projects under Section 438 of the Energy Independence and Security Act.

FEMP’s Water Efficiency in Federal Buildings and Campuses website provides resources on water conservation strategies, practices, training, and tools.

EPA’s WaterSense website provides list of certified water-efficient products, information, and water conservation strategies.

EPA provides resources on use of natural infrastructure to address stormwater runoff.

GSA provides resources and best practices for green roofs on Federal facilities.

FEMP’s Federal Building Metering Guidance (per 42 U.S.C. § 8253(e)).

13 An unoccupied building is considered a building occupied one hour or less per person per day on average.

https://www.epa.gov/sites/production/files/2015-08/documents/epa_swm_guidance.pdf https://www.epa.gov/sites/production/files/2015-08/documents/epa_swm_guidance.pdf https://www.energy.gov/eere/femp/water-efficiency-federal-buildings-and-campuses https://www.epa.gov/watersense https://www.epa.gov/green-infrastructure https://www.gsa.gov/about-us/organization/office-of-governmentwide-policy/office-of-federal-highperformance-buildings/resource-library/integrative-strategies/green-roofs https://sftool.gov/explore/green-building/section/76/planted-roof/system-overview https://www.energy.gov/sites/prod/files/2014/11/f19/metering_guidance.pdf https://www.gsa.gov/cdnstatic/FY%202018%20FRPP%20DATA%20DICTIONARY%20final.pdf

Implementation Actions:

Within 180 days of these Instructions, FEMP will consolidate previously issued guidance and technical materials into an integrated web resource, and issue a plan on developing an updated Federal water management resource guide that provides direction on how to design and optimize water use at Federal facilities, track and report water use, expand use of alternative water, use water balance methodologies, and implement water conservation measures that promote energy efficiency in accordance with 42 U.S.C. § 6834(a)(3).

4. Performance Contracting

E.O. 13834 Section 2(d): Utilize performance contracting to achieve energy, water, building modernization, and infrastructure goals.

Progress Metrics:

Metrics:

Investment value14 of performance contracts awarded in dollars; and

Number of contracts awarded.

Performance

Measures:

Performance contracts awarded in the fiscal year.

Progress

Milestones:

Agencies will identify planned investment in dollars and planned number of projects/contract awards for the next two fiscal years in annual sustainability plans.

Requirements and Priority Strategies:

Performance contracts are public-private partnerships between an agency and either an energy services company (ESCO) or a utility to implement energy and water efficiency improvements in

Federal facilities as authorized under 10 U.S.C. §§ 2866 and 2913, 42 U.S.C. § 8256(c), and 42

U.S.C. § 8287 et seq. Energy savings performance contracts (ESPCs) and utility energy service contracts (UESCs) can be cost-effective tools to increase facility efficiency, improve operations, and enhance resilience while also addressing needed capital improvements and maintenance backlogs.

Agencies should assess performance contracting opportunities as part of comprehensive facility portfolio planning. When evaluating projects, agencies should evaluate all identified energy and water conservation measures, including all energy related cost savings and any potential benefits from other ancillary savings, leverage performance contracts in combination with direct appropriations funding, and, where possible, bundle projects of varying paybacks into a combined project that is life cycle cost-effective to maximize efficiency and economic benefits.

Federal Performance Contracting Vehicles:

Energy Savings Performance Contract (ESPC): A partnership with an ESCO for a term of up to 25 years. FEMP and the U.S. Army Corps of Engineers (USACE) provide streamlined turnkey procurement assistance for agencies with technical support throughout the life of the contract.

ESPC ENABLE: A FEMP program on GSA’s Schedule 84 that provides a turnkey, streamlined contracting process to implement small scale projects with a limited scope in six months or less, focusing on highly cost-effective ECMs such as lighting, water, heating, ventilation and air conditioning (HVAC) replacement or controls, solar photovoltaics (PV), and water conservation measures.

Utility Energy Service Contract (UESC): A limited-source contract between a Federal agency and a serving utility for energy management services, including energy and water efficiency improvements and demand-reduction services.

14 Includes the cost of the equipment, labor for installation, and other direct project costs associated with the performance contract, but not the cost of financing.

Tracking and Reporting:

Agencies are instructed to report performance contract data through the Annual Energy Report, and identify yearly planned investment and number of contract awards in their Sustainability

Plans, in accordance with annual instructions.

Projects awarded using DOE’s indefinite delivery, indefinite quantity (IDIQ) ESPC contract provide automated data collection and verification through e-Project Builder, a cyber-secure, web-based data management system maintained by the Lawrence Berkley National Laboratory

(LBNL). Agencies should use e-Project Builder to improve tracking and accuracy of data for projects implemented through any ESPCs, UESCs, or funded through direct obligations. Data collected through e-Project Builder may be transmitted to FEMP to facilitate streamlined tracking of project savings and annual reporting.

To assist with effective program management, data points tracked as indicators currently include:

Total dollar value of ECMs identified for potential investment in DOE’s EISA 432

Compliance Tracking System.

Number of performance contracts awarded in the reporting year.

Agency direct investment for the reporting year.

Annual energy saved (Btus) per $1 of direct investment.

Guidance and Resources:

Federal Energy and Water Efficiency Project Financing

Procuring Energy Management Services with the GSA Areawide Contract

Resources for Implementing Federal Energy Savings Performance Contracts

Utility Energy Service Contracts for Federal Agencies

Methods and Procedures for Energy Savings Performance Contracting (10 CFR part 436, subpart B)

Implementation Actions:

Within 180 days of these Instructions, FEMP will develop a plan to update its ESPC guidance. In the interim, FEMP will provide clarifications on application and scope of available energy and water conservation measures, and options for combining performance contracting with other funding sources.

FEMP will issue updated guidance for use of e-Project Builder for ESPCs, UESCs, and appropriated projects in order to streamline, automate, and improve data collection and tracking for investments and project performance.

https://eprojectbuilder.lbl.gov/home/#/login https://ctsedwweb.ee.doe.gov/CTSDataAnalysis/Default.aspx?ReturnUrl=%2fCTSDataAnalysis%2fComplianceOverview.aspx https://energy.gov/node/2473972 https://app_gsagov_prod_rdcgwaajp7wr.s3.amazonaws.com/Procuring_Energy_Management_Services_with_the_GSA_Areawide_Contract_08-2015.pdf https://energy.gov/node/850331 https://energy.gov/node/2473980 https://www.gpo.gov/fdsys/pkg/CFR-1999-title10-vol3/pdf/CFR-1999-title10-vol3-part436-subpartB.pdf

5. Sustainable Buildings

E.O. Section 2(e): Ensure that new construction and major renovations conform to applicable building energy efficiency requirements and sustainable design principles; consider building efficiency when renewing or entering into leases; implement space utilization and optimization practices; and annually assess and report on building conformance to sustainability metrics.

Progress Metrics:

Metrics:

Percentage of buildings qualifying as sustainable buildings; and

Percentage of GSF qualifying as sustainable.

For owned buildings > 10,000 GSF.

Performance

Measures:

At least 15 percent of buildings or GSF qualifying as sustainable; and

Annual progress (either buildings or GSF).

Progress

Milestones:

Agencies will identify targeted percentage for the next fiscal year in annual

Sustainability Plans.

Requirements and Priority Strategies:

There are a range of statutory requirements and references related to sustainable building design, construction, and operation. For E.O. 13834 implementation, a sustainable Federal building has the same meaning as a high-performance green building (42 U.S.C. § 17061(13)), which, when compared to similar buildings, reduces energy, water, and material use; improves occupant health and productivity; minimizes air and water pollution and waste generation; acquires sustainable products and services; increases reuse and recycling activities; and is located near multiple transportation modes.

Agencies may qualify sustainable buildings, including existing buildings, new construction, and major renovations, using one of the following:

1. The Guiding Principles for Sustainable Federal Buildings and Associated Instructions

(Guiding Principles), developed in 2008 and updated in 2016; or

2. Third-party building certifications systems or standards identified by GSA’s Office of

High Performance Buildings.

Agencies that choose to use a third-party building certification system to certify a new building or an existing building undergoing major renovation must choose a system that meets criteria identified by DOE at 10 CFR part 433, subpart C and 10 CFR part 435, subpart C. For new construction and major renovations, agencies are required to meet energy efficiency and sustainable design standards established by DOE at 10 CFR part 433 and 10 CFR part 435.

Threshold for calculating sustainable building progress: Beginning in FY 2019, the calculation for percentage of sustainable buildings will be based on owned buildings of 10,000

GSF or greater. Any building qualified prior to FY 2019, regardless of size, will be

“grandfathered” and included in annual calculations (added to both the numerator and denominator), provided that the building continues to meet any requirements for requalification.

Newly qualified buildings smaller than 10,000 GSF are eligible for bonus credit toward the annual GSF progress calculation only. GSF will be added to both the numerator and denominator.

https://www.sustainability.gov/pdfs/guiding_principles_for_sustainable_federal_buildings.pdf https://www.sustainability.gov/pdfs/guiding_principles_for_sustainable_federal_buildings.pdf

Leasing: Agencies are required to lease space in ENERGY STAR qualified buildings unless excepted in accordance with 42 U.S.C. § 17091:

No space is available in a building described in subsection (a) that meets the functional requirements15 of an agency, including locational needs;

The agency proposes to remain in a building that the agency has occupied previously;

The agency proposes to lease a building of historical, architectural, or cultural significance (as defined in 40 U.S.C. § 3306(a)(4)) or space in such a building; or

The lease is for not more than 10,000 gross square feet of space.

Agencies should also consider options to lease space in buildings that qualify as sustainable where cost effective and in accordance with the aforementioned parameters. Agencies may choose to track and report sustainability of leased space; however, these buildings will be tracked separately and will not count toward progress on sustainable building goals.

Space Utilization and Optimization: Agencies should optimize space usage to avoid unnecessary real property expenditures. Activities should be consistent with the National

Strategy for the Efficient Use of Real Property, which aims to improve the utilization of Federal

Government-owned buildings and improve the cost effectiveness and efficiency of the government-wide portfolio.

Tracking and Reporting:

Agencies are to report annually on sustainable Federal building status in GSA’s real property database and the Federal Real Property Profile Management System (FRPP MS), pursuant to 40

U.S.C. § 524.16 Detailed instructions are issued annually by GSA in the FRPP MS Data

Dictionary.

To assist with effective program management, data points tracked as indicators currently include:

Number of sustainable buildings.

Percentage of leased space, as identified in FRPP MS17, in sustainable buildings (if reported by the agency).

Guidance and Resources:

Guiding Principles for Sustainable Federal Buildings and Associated Instructions

GSA’s Office of High-Performance Buildings develops policy and guidance on high performance buildings, focusing on innovative strategies that reduce costs, enable agency missions, enhance human health and performance, and minimize environmental impacts.

GSA’s Sustainable Facilities Tool.

FEMP’s Guiding Principles for Sustainable Federal Buildings website provides access to training, tools, implementation resources, and technical support for agencies to implement sustainable design.

15 Cost competitiveness is a functional requirement.

16 Instructions for reporting building sustainability status and metrics are provided through GSA’s annual Guidance for Real Property Inventory Reporting and the FRPP MS Data Dictionary, available on GSA’s Federal Real Property

Profile Guidance Library website.

17 Leased space is reported in FRPP MS as RSF or USF https://www.performance.gov/reduce/reduce_the_footprint.html https://www.performance.gov/reduce/reduce_the_footprint.html https://www.gsa.gov/policy-regulations/policy/real-property-policy/asset-management/federal-real-property-profile-management-system-frpp-ms https://www.sustainability.gov/pdfs/guiding_principles_for_sustainable_federal_buildings.pdf https://www.gsa.gov/about-us/organization/office-of-governmentwide-policy/office-of-federal-highperformance-buildings https://sftool.gov/ https://www.energy.gov/eere/femp/guiding-principles-sustainable-federal-buildings https://www.gsa.gov/policy-regulations/policy/real-property-policy/asset-management/federal-real-property-profile-management-system-frpp-ms https://www.gsa.gov/policy-regulations/policy/real-property-policy/asset-management/federal-real-property-profile-management-system-frpp-ms

ENERGY STAR Portfolio Manager can be used to track building compliance with the

Guiding Principles.

Net-Zero…