Attach-2-Tech4-W912C324R0002-E.O. 14057 Implementing Instructions.pdf

Implementing Instructions for

Executive Order 14057

Catalyzing Clean Energy Industries and Jobs

Through Federal Sustainability

The White House Council on Environmental Quality

August 2022 i

Table of Contents

● 1. Introduction o 1.1 Purpose o 1.2 Authority o 1.3 Overarching Policy and Directives

● 2. Governance, Oversight, and Organization o 2.1 Agency Chief Sustainability Officers (CSOs) o 2.2 Chief Sustainability Officer Council o 2.3 Working Groups, Committees, and Task Forces o 2.4 Incorporation of E.O. Requirements into Agency Policy and Procedures

● 3. Reporting, and Performance Management o 3.1 Agency Planning and Reporting o 3.2 Targets o 3.3 Performance Management o 3.4 Data Reporting and Collection

● 4. Sustainability Goals and Targets o 4.1 GHG Emissions Reduction o 4.2 Carbon Pollution-Free Electricity o 4.3 Zero-Emission Vehicle Fleet o 4.4 Net-Zero Emissions Buildings, Campuses, and Installations o 4.5 Waste Management o 4.6 Net-Zero Emissions Procurement o 4.7 Climate Resilient Infrastructure and Operations o 4.8 Electronics Stewardship o 4.9 Incorporating Environmental Justice o 4.10 Climate- and Sustainability-Focused Workforce

● Appendix A: Definitions ................................................................................................... A-i

● Appendix B: List of Acronyms and Abbreviations........................................................ B-i

● Appendix C: Summary of Planning and Reporting Timeline ...................................... C-i

1. Introduction

1.1 Purpose

These Implementing Instructions (Instructions) provide Federal executive departments and agencies (agencies) with direction for implementing Executive Order (E.O.) 14057, Catalyzing

Clean Energy Industries and Jobs through Federal Sustainability.1 Independent agencies are encouraged to consider the Instructions and implement E.O. 14057, consistent with applicable law.

1.2 Authority

The Council on Environmental Quality (CEQ) issues the Instructions pursuant to section

510(b) of E.O. 14057, which directs the Chair of CEQ, in consultation with the Director of the Office of Management and Budget (OMB), to issue implementing guidance for agencies that provide directions, strategies, and recommended actions to meet the policies and goals of

E.O. 14057.2 The Instructions also implement and are consistent with OMB Memorandum

M-22-06, Catalyzing Clean Energy Industries and Jobs through Federal Sustainability (M-

22-06),3 which the Director of OMB, Chair of CEQ, and National Climate Advisor issued pursuant to section 510(a) of E.O. 14057.

CEQ, in consultation with OMB, may update or amend the Instructions or issue additional guidance. Agencies may issue supplementary internal instructions or guidance regarding implementation of E.O. 14057 consistent with the Instructions and other guidance documents issued by CEQ or OMB.

1.3 Overarching Policy and Directives

E.O. 14057 outlines a coordinated, whole-of-government approach, along with individual agency goals and actions, to transform Federal procurement and operations to reduce greenhouse gas (GHG) emissions and environmental impacts and secure a transition to clean energy and sustainable technologies. It establishes that the Federal Government will lead by example to achieve a carbon pollution-free electricity sector by 2035 and net-zero emissions economy-wide by 2050, using its scale and procurement power to achieve:

• 100 percent carbon pollution-free electricity on a net annual basis by 2030, including 50 percent 24/7 carbon pollution-free electricity;

• 100 percent zero-emission vehicle acquisitions by 2035, including

100 percent zero emission light-duty vehicle acquisitions by 2027;

1 86 Fed. Reg. 70,935 (Dec. 13, 2021), https://www.federalregister.gov/documents/2021/12/13/2021-

27114/catalyzing-clean-energy-industries-and-jobs-through-federal-sustainability.

2 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.

3 https://www.whitehouse.gov/wp-content/uploads/2021/12/M-22-06.pdf.

https://www.federalregister.gov/documents/2021/12/13/2021-27114/catalyzing-clean-energy-industries-and-jobs-through-federal-sustainability https://www.federalregister.gov/documents/2021/12/13/2021-27114/catalyzing-clean-energy-industries-and-jobs-through-federal-sustainability https://www.whitehouse.gov/wp-content/uploads/2021/12/M-22-06.pdf

• A net-zero emissions building portfolio by 2045, including a 50 percent emissions reduction by 2032;

• A 65 percent reduction in scope 1 and 2 GHG emissions from Federal operations by 2030 from 2008 levels;

• Net-zero emissions from Federal procurement, including a Buy Clean policy to promote use of construction materials with lower embodied emissions;

• Climate resilient infrastructure and operations; and

• A climate- and sustainability-focused Federal workforce.

Achieving these ambitious commitments requires action by each and every agency, starting today. Accordingly, E.O. 14057 sets forth specific goals for agencies, requires them to set annual targets, and establishes an integrated approach to planning and managing performance—setting the foundation for a decade of action to cut GHG emissions from Federal operations and drive greater sustainability government-wide.

2. Governance, Oversight, and Organization

2.1 Agency Chief Sustainability Officers (CSOs)

Section 502 of E.O. 14057 directs heads of agencies to designate an Agency CSO charged with ensuring effective implementation of the E.O. within the agency. Consistent with section IV.D of

M-22-06, Agency CSOs are responsible for:

• Leading agency planning, implementation, and related actions to achieve the policy and goals of the E.O. and achievement of targets established under the E.O.;

• Coordinating with agency leadership across policy and management functions (e.g., the

Agency’s Chief Financial Officer, Chief Information Officer, and Chief Acquisition

Officer);

• Reporting to the Chair of CEQ and Director of OMB regarding agency progress toward sustainability goals and targets;

• If invited by the Chair of CEQ, representing the agency on the CSO Council;

• Providing plans, reports, information, and assistance necessary to the Director of OMB, the Chair of CEQ, and the Federal CSO;

• Convening regular meetings of relevant agency bureaus, components, or offices as necessary for effective implementation; and

• Ensuring that regional facilities and personnel are integrated into sustainability planning, policies, and implementation.

Upon the departure of the Agency CSO, the agency must designate a new Agency CSO and notify the Chair of CEQ at chair@ceq.eop.gov.

2.2 Chief Sustainability Officer Council

Consistent with section 504 of E.O. 14057, the CSO Council advises the Director of OMB and the Chair of CEQ on the performance of agency responsibilities under E.O. 14057. The

Federal Chief Sustainability Officer chairs the CSO Council and the members include:

• Agency CSOs invited by the Chair of CEQ;

• OMB’s Associate Director for Climate, Energy, Environment, and Science;

• CEQ’s Senior Director for Environmental Justice;

• The Director of the Department of Energy (DOE) Federal Energy Management

Program (DOE-FEMP);

• The Director of the General Services Administration (GSA) Office of Federal High-

Performance Green Buildings; and

• Other representatives designated by the heads of agencies and invited by the Chair of

CEQ.

The Chair of CEQ may invite other members or change the composition of the Council consistent with section 504(b) of E.O. 14057. As Chair of the CSO Council, the Federal CSO may establish subcommittees to provide input, advice, or recommendations to the CSO

Council.

2.3 Working Groups, Committees, and Task Forces

Leaders Working Groups: Section 508 of E.O. 14057 establishes several Federal Leaders

Working Groups around priority E.O. goals to monitor progress and report to the National

Climate Task Force semiannually on actions, findings, and progress. M-22-06 outlines the member agencies of each working group. CEQ will initiate the formation and coordinate the work of the individual Working Groups.

Interagency Working Groups: Section 504(c) of E.O. 14057 provides that the Chair of CEQ may establish additional committees, interagency groups, or task forces to support E.O.

implementation. Additionally, the Office of the Federal CSO may coordinate with existing

Federal interagency working groups whose activities support achievement of the goals of the

E.O.

mailto:chair@ceq.eop.gov

2.4 Incorporation of E.O. Requirements into Agency Policy and Procedures

Consistent with section 507 of E.O. 14057, agencies must issue or revise existing agency policies, directives, and guidance, as appropriate, including employee training, to ensure alignment with the goals and requirements of the E.O., these Instructions, and further guidance issued to implement the E.O. Agencies should continue to use effective management strategies, such as environmental management systems (EMS) and energy management systems (EnMS), if they align with and support their agency needs and facilitate implementation and progress toward

E.O. goals.

Agencies that provide government-wide training, resources, and technical support related to

Federal sustainability and climate adaptation requirements and implementation, including DOE-

FEMP, GSA, the Environmental Protection Agency (EPA), and the Department of Agriculture

(USDA), should review, update, and maintain materials, trainings, and other resources to ensure that information regarding Federal policies, priorities, guidance, and best management practices are current and aligned with goals and requirements of the E.O., these Instructions, and further guidance issued to implement the E.O.

3. Reporting and Performance Management

3.1 Agency Planning and Reporting

Section 503 of E.O. 14057 directs Principal agencies to report to the Chair of CEQ and the

Director of OMB regarding agency implementation and progress toward the goals of the E.O.

Under section IV.C of M-22-06, contributing agencies subject to executive policy must implement the duties of Principal agencies, where appropriate and consistent with the scope of the agency’s operations. The E.O. also encourages independent agencies to meet the E.O.’s requirements, including these instructions.

Agency Sustainability Plan: Under section 503 of E.O. 14057, Principal agencies must develop and submit a Sustainability Plan, consistent with CEQ guidance, which will set the annual timeline for reporting. In consultation with CEQ, other agencies may elect to develop plans and provide reporting.

Agency Climate Adaptation and Resilience Plan (CAP): Principal agencies, as well as agencies required to submit a Climate Action Plan under section 211 of E.O. 14008, Tackling the Climate

Crisis at Home and Abroad,4 must annually update and submit a Climate Adaptation and

Resilience Plan or progress report to CEQ and OMB., as required by section 503(b) of E.O.

14057. CEQ will provide directions annually on such plans or progress reports.

Plan Submission, Review, and Approval: Agencies must submit Sustainability Plans and CAPs to CEQ and OMB by June 30 of each year, unless otherwise specified in the annual guidance provided by CEQ. After CEQ review and OMB approval, CEQ will make plans publicly

4 86 Fed. Reg. 7,619 (Feb. 1, 2021), https://www.federalregister.gov/documents/2021/02/01/2021-02177/tackling-the-climate-crisis-at-home-and-abroad.

https://www.federalregister.gov/documents/2021/02/01/2021-02177/tackling-the-climate-crisis-at-home-and-abroad https://www.federalregister.gov/documents/2021/02/01/2021-02177/tackling-the-climate-crisis-at-home-and-abroad available on the website of the Office of the Federal CSO,5 and agencies also must make plans publicly available on their agency websites.

3.2 Targets

These instructions outline targets and progress metrics for certain goals of E.O. 14057. CEQ and

OMB may revise targets and progress metrics as appropriate and consistent with the E.O.’s goals and requirements.

Agency-Established Targets: Section 201 of E.O. 14057 requires the head of each agency to propose agency-specific targets, including annual progress targets, where applicable, for GHG emissions reductions; carbon pollution-free electricity (CFE); zero-emission vehicle (ZEV) fleets; net-zero emission buildings, campuses, and installations; and energy and water efficiency.

Target setting process: CEQ and OMB will issue guidance for setting initial targets. Agencies must propose targets for review and approval by CEQ and OMB within 90 days of receiving target setting guidance, unless the guidance directs otherwise.

Consistent with section 509(c) of E.O. 14057, DOE-FEMP will develop tools and associated data and analysis to assist agencies in projecting agency progress. CEQ, in coordination with OMB, will keep agency CSOs and staff apprised of the planned schedule for setting initial agency targets across E.O. goals.

Adjustments to annual progress targets: Agencies may adjust annual progress targets for future fiscal years, with the concurrence of CEQ and OMB, as part of the annual priority goal target and planning process described in section 3.3.

3.3 Performance Management

Planning and Portfolio Management Reviews: E.O. 14057 sets ambitious goals in sectors that are rapidly developing and changing, requiring innovation within and outside of the Federal

Government. Accordingly, planning, implementation, and performance management for certain goals under the E.O. requires a more dynamic, collaborative, and iterative approach.

Annual priority goal target and planning process: As set forth in the Instructions, agencies must develop annually and submit to CEQ streamlined, data driven Strategic Plans for the CFE, ZEV, and buildings goals. CEQ and OMB will review the plans and, where appropriate, meet with agency staff to discuss progress to date and future plans for implementation, and to identify successful practices, challenges, and needs for technical support. CEQ and OMB review of the

Strategic Plans and related discussions with agencies are intended to be an internal collaborative process to assist agencies in developing detailed, robust plans to achieve goals and targets.

Principal agencies must report publicly on targets, strategies, actions, and progress through the

Annual Sustainability Plan.

CEQ, in coordination with OMB, will develop annually and provide agencies with CFE, ZEV, and Buildings Strategic Plan templates to facilitate streamlined, data-driven plans and calculate

5 https://www.sustainability.gov.

http://www.sustainability.gov/ expected outcomes and results, including progress toward agency-established targets. DOE-

FEMP and GSA will support the planning process with relevant data analysis and tools.

Incorporation of targets into OMB scorecard: OMB will select agency-established targets and additional performance measures and incorporate them into annual agency scorecards.

Sustainability portfolio management reviews: Beginning in fiscal year (FY) 2023, CEQ and

OMB will conduct annual portfolio management reviews with principal agencies consisting of meetings with Agency CSOs and other senior agency leaders to review agency progress toward goals and key performance indicators and to discuss areas of exceptional performance and areas of challenge or delayed progress.

3.4 Data Reporting and Collection

Consistent with section 503 of E.O. 14057 and section IV.A of M-22-06, agencies must track progress and provide reporting consistent with these Instructions. To streamline reporting and data analysis, monitor progress, and measure performance, agency progress and performance data will be collected, to the extent possible, through established Federal reports and systems, including:

• Annual Energy Management Data Report6(Annual Energy Report): Agencies submit this annual report to DOE-FEMP. It includes reporting of annual energy, and water use, CFE, investments in facility efficiency, new building design compliance, metering, and GHG emissions data.

• Energy Independence and Security Act of 2007 (EISA) 432 Compliance Tracking

System7 (CTS): DOE-FEMP manages this system, which tracks compliance with statutory requirements for building benchmarking, audits, and implementation of energy conservation measures (ECMs) and water conservation measures (WCMs).

• Federal Automotive Statistical Tool8 (FAST): DOE’s Idaho National Laboratory, in coordination with GSA, maintains this system for data on vehicle inventories, acquisitions, electric vehicle supply equipment (EVSE) installations, fuel use, and mileage.

• Federal Real Property Profile Management System9 (FRPP-MS): GSA manages this system for real property data, including data on sustainable buildings.

• Other Reporting Tools: CEQ or OMB may identify other data collection and reporting tools or request supplemental data. For a summary of reporting requirements, systems, and deadlines, see Appendix C.

6 https://www.energy.gov/eere/femp/articles/annual-energy-management-data-report.

7 https://www.eisa-432-cts.eere.energy.gov/EISACTS/Login.aspx.

8 https://fastweb.inl.gov.

9 https://www.realpropertyprofile.gov/FRPPMS/FRPP_Login.

https://www.energy.gov/eere/femp/articles/annual-energy-management-data-report https://www.eisa-432-cts.eere.energy.gov/EISACTS/Login.aspx https://fastweb.inl.gov/ https://www.realpropertyprofile.gov/FRPPMS/FRPP_Login

4. Sustainability Goals and Targets

4.1 GHG Emissions Reduction

4.1.1 Policy

It is therefore the policy of my Administration for the Federal Government to lead by example in order to achieve . . . net-zero emissions economy-wide by no later than 2050. (Sec. 101 of E.O.

14057)

Each agency shall reduce its scope 1, 2, and 3 greenhouse gas emissions, as defined by the

Federal Greenhouse Gas Accounting and Reporting Guidance, by setting and meeting targets for fiscal year 2030 measured from a fiscal year 2008 baseline. (Sec. 202 of E.O. 14057)

4.1.2 Overview

E.O. 14057 establishes a policy that the Federal Government will lead by example to help transition the Nation to a net-zero emissions economy by 2050 by setting ambitious government-wide goals for a 65 percent reduction in scope 1 and 2 GHG emissions by 2030 from 2008 levels and achieving net-zero emissions procurement. To achieve these government-wide goals, the

E.O. requires agencies to set individual scope 1 and scope 2 reduction targets, as well as scope 3 reduction targets, and meet building, fleet, and operational goals aimed at reducing these emissions.

4.1.3 Progress Metrics

Targets:

Agencies will set individual 2030 GHG reduction targets for scope 1, scope 2, and scope 3 emissions.

Metrics:

Percentage reduction of emissions measured in metric tons of carbon dioxide equivalent (MTCO2e) from the baseline year as established by the E.O.

Progress Milestone: Agencies will set net annual progress targets based on CEQ guidance.

4.1.4 Scope 1, 2, and 3 and Associated Emissions Sources

The illustration below shows common sources of Federal scope 1, 2, and 3 emissions. Note that there are additional sources of scope 3 emissions beyond those represented here, including categories of Federal supply chain emissions.

4.1.5 Agency Planning and Reporting

Reporting of GHG emissions and emissions reductions:

Scope 1 and 2 Emissions: Agencies must report scope 1 and 2 emissions as part of the Annual

Energy Management Data Report, due annually on January 31 to DOE-FEMP.

Scope 3 Emissions: Consistent with section 302 of E.O. 14057, GSA, in coordination with CEQ and OMB, must assess systems and methodologies to track and report government-wide and agency-specific scope 3 emissions. This assessment should consider all 15 categories of scope 3 emissions, availability of data, the scale of categories of emissions in relation to the Federal

Government’s total emissions, as well as the potential to use data to inform emissions reduction strategies. Based on the results of the assessment and in coordination with CEQ and OMB, GSA must develop systems to provide annual reporting of scope 3 emissions, at the Federal and agency level, as appropriate, and calculate relevant categories of scope 3 emissions using the best available methodologies and data sources, due annually on or before January 31. Agencies with existing initiatives to track and report scope 3 emissions must coordinate with CEQ and GSA to ensure that agency systems and approaches align with government-wide tracking and reporting methodologies.

Setting Agency Targets:

Consistent with section 201 of E.O. 14057, agencies must propose agency-specific targets for both scope 1 and scope 2, as well as scope 3 reductions based on CEQ and OMB’s forthcoming guidance. CEQ and OMB will review and approve targets and may incorporate them into OMB scorecards.

Scope 1 and 2 Targets: Consistent with sections 102 and 202 of E.O. 14057 and the approach taken under previous Executive Orders,10 agencies must measure scope 1 and 2 reductions from a FY 2008 baseline. Consistent with section 509(c) of the E.O. and section IV.A.3 of M-22-06, DOE-FEMP must develop and provide agencies with agency scope 1 and scope 2 GHG target setting tools and instructions. The tools should take into account projected GHG reductions resulting from each agencies achievement of their CFE, ZEV, and building--related GHG goals.

Scope 3 Targets: In coordination with CEQ and OMB, GSA must develop tools to establish appropriate baselines and assist agencies in setting scope 3 targets. When directed, each agency must develop and submit a FY 2030 target, along with annual progress targets, based on CEQ guidance. GSA, in coordination with CEQ, OMB, and other appropriate agencies, must develop and provide tools to assist agencies in developing their scope 3 targets. In coordination with

OMB, CEQ will identify the need for baseline adjustments or new baselines, taking into consideration the addition of supply chain emissions into scope 3 tracking, availability of agency historical data, and the methodologies for quantifying scope 3 emissions identified by GSA.

10 This approach is consistent with those taken under previous Executive Orders, including E.O. 13514, Federal

Leadership in Environmental, Energy, and Economic Performance, 74 Fed. Reg. 52,117 (Oct. 8, 2009), https://www.federalregister.gov/documents/2009/10/08/E9-24518/federal-leadership-in-environmental-energy-and-economic-performance; E.O. 13693, Planning for Federal Sustainability in the Next Decade, 80 Fed. Reg. 15,869

(Mar. 25, 2015), https://www.federalregister.gov/documents/2015/03/25/2015-07016/planning-for-federal-sustainability-in-the-next-decade; and E.O. 13834, Efficient Federal Operations, 83 Fed. Reg. 23,771 (May 22, 2018), https://www.federalregister.gov/documents/2018/05/22/2018-11101/efficient-federal-operations.

https://www.federalregister.gov/documents/2009/10/08/E9-24518/federal-leadership-in-environmental-energy-and-economic-performance https://www.federalregister.gov/documents/2009/10/08/E9-24518/federal-leadership-in-environmental-energy-and-economic-performance https://www.federalregister.gov/documents/2015/03/25/2015-07016/planning-for-federal-sustainability-in-the-next-decade https://www.federalregister.gov/documents/2015/03/25/2015-07016/planning-for-federal-sustainability-in-the-next-decade https://www.federalregister.gov/documents/2018/05/22/2018-11101/efficient-federal-operations

4.2 Carbon Pollution-Free Electricity

4.2.1 Policy

[T]he Federal Government shall use its scale and procurement power to achieve . . . 100 percent carbon pollution-free electricity on a net annual basis by 2030, including 50 percent 24/7 carbon pollution-free electricity . . . . (Sec. 102(a)(i) of E.O. 14057)

[A]gencies shall facilitate new carbon pollution-free electricity generation and energy storage capacity by authorizing use of [Federal] real property assets . . . . (Sec. 203 of E.O. 14057)

4.2.2 Overview

E.O. 14057 directs the Federal Government, as the largest consumer of electricity in the Nation, to lead by example in transitioning to 100 percent CFE and to use its purchasing power to accelerate a full transition of the electricity sector to CFE by 2035. The E.O. emphasizes the need for a coordinated, whole-of-government approach to achieve these goals. This will require significant cross-agency collaboration, changes to how agencies plan and execute energy procurement, and enhancements to agency capabilities to measure and track CFE consumption, as well as 24/7 CFE, while technologies, market rules, and procurement mechanisms for CFE continue to develop.

The Instructions provide initial direction for agencies to establish critical systems and begin planning around the CFE goal, including expanding agency information on consumption, measurement systems, and supply arrangements. In addition, the Instructions provide guidance to enable agencies to take action in FY 2022, as a foundational year, to increase CFE purchasing through both existing mechanisms and innovative procurement strategies. Agencies should consult with CEQ when developing strategies or taking action to achieve the CFE goal, to ensure alignment with a whole-of-government approach.

CEQ and OMB will develop further guidance for agencies on implementation of the CFE provisions of E.O. 14057 and M-22-06, including more detailed instructions on the 24/7 CFE goal and planning, purchasing, and accounting for hourly matched CFE. When developing strategies and negotiating energy contracts, agencies should consider that CFE procurements and investments will need to meet the 100 percent net annual and 50 percent 24/7 hourly targets.

4.2.3 Progress Metrics

Targets:

100 percent net annual CFE use by FY 2030.

50 percent 24/7 CFE by FY 2030.

Metrics: CFE percentage of total annual megawatt hours consumed.

Progress

Milestone:

Agencies will set net annual CFE progress targets beginning with

FY 2023.

4.2.4 Requirements and Priority Strategies

Net Annual CFE Goal:

Progress toward the net annual CFE goal will be measured by adding purchased CFE, on-site

CFE, purchased energy attribute certificates (EACs), and grid-supplied CFE. Agencies must match consumption with all eligible CFE strategies except grid-supplied CFE by obtaining and retiring EACs consistent with the criteria listed in section 4.2.5.

• Purchased CFE is electricity purchased from a qualifying CFE generation source with the associated EACs, i.e., the original associated energy attributes have not been separately sold, transferred, or retired. Subject to agency contracting authority, agencies can purchase CFE and the associated EAC from a utility provider (including through a green tariff), retail service provider, energy supply contractor, or through a power purchase agreement (PPA).

• On-site CFE is electricity generated at a Federal facility. To count CFE produced at a

Federal facility toward the net annual CFE requirement, an agency must obtain and retire the EACs sourced from the on-site CFE generation. If an agency directly produces from an on-site CFE source, but registration of EACs is not available or practicable, an agency may count generation toward the CFE requirement if the agency retains records verifying

CFE generator operations (for unmetered systems) or energy production (for metered systems).

• Purchased EACs are EACs that are procured independently from the agency’s purchases of physical power, often referred to as “unbundled” EACs.

• Grid-supplied CFE is CFE delivered as part of default electricity service or the electricity grid mix from a utility or electric service provider (in contrast to purchased CFE, in which the CFE and associated EAC are specified contractually). To ensure standardized calculation of grid-supplied CFE across the Federal Government, DOE-FEMP must provide necessary data on grid-supplied CFE, by Emissions and Generation Resource

Integrated Database (eGRID)11 subregion, using a residual mix methodology that subtracts CFE and unbundled EACs that third parties have purchased, retired or claimed.

As market data regarding the CFE content of delivered electricity becomes available, CEQ and OMB may refine methods for calculating for grid-supplied CFE.

11 https://www.epa.gov/egrid.

Net Annual

CFE

Purchased

On-site

CFE

Purchased

EACs

Grid- Supplied https://www.epa.gov/egrid

4.2.5 Requirements for applying EACs toward CFE goals

In order for electricity procured or produced to count toward net annual CFE progress, an agency must obtain and retire the associated EAC for all strategies identified in section 4.2.4 except grid-supplied CFE.

To count toward the net annual CFE goal, subject to the specific exemptions in sections 4.2.6,

4.2.7 and 4.2.8, agencies must source EACs from generation resources that:

• Produce CFE;

• Were placed in service on or after October 1, 2021, either as a new resource or as new capacity at an existing resource modified to increase output; and

• Deliver CFE to the same grid region of Federal facility consumption.

EACs may be generated within six months prior to or three months after the net annual CFE compliance year.12

4.2.6 Bridge EACs

In addition to supporting the goal of 100 percent CFE consumption by 2030, the Federal procurement strategy for CFE supports the broader E.O. 14057 goal to achieve a carbon pollution-free electricity sector by 2035. During this transition, existing and potential CFE generation technologies may require long lead times between when an agency signs a supply contract, and the technology begins to deliver CFE and associated EACs. These lead times also may be subject to extension due to supply, construction, market, or other disruptions.

To accommodate the development and deployment of these CFE technologies, an agency may elect to purchase bridge EACs up to the contracted quantities of megawatt hours during the period between execution of a contract for CFE generation and the date when the CFE generation is placed in service. The agency would count these bridge EACs toward its CFE goal until the supply contract begins to deliver CFE and associated EACs, no later than 2035.

Agencies should give preference to EACs from generators placed into service after October 1, 2021, and within the same region. However, where an agency can demonstrate that it will advance the government-wide goals of E.O. 14057, including leading by example to achieve a carbon-pollution free electricity sector and reduce greenhouse gas emissions, agencies may elect to purchase bridge EACs from a CFE generation source that is placed in service prior to October

1, 2021, or that is delivered to a different grid region of Federal facility consumption.

4.2.7 Sale and replacement of EACs for on-site CFE

If EACs are sold to a third party to support the development of on-site CFE production, the agency may count the electricity toward the CFE goal if the agency secures replacement EACs that are of equivalent megawatt hours and sourced from CFE generation that is delivered to the

12 The use of EACs to meet 24/7 CFE goals will be subject to a more restrictive timing alignment, requiring alignment for when EACs are generated to when facility electricity is actually consumed.

same grid region. In this case of EAC replacement, agencies may choose to procure EACs from a

CFE generation source placed in service prior to October 1, 2021.

4.2.8 Reconciliation with EPAct 2005 Renewable Energy Accounting

Existing renewable energy purchase contracts or renewable energy generation that count toward the 7.5 percent minimum consumption requirements in 42 U.S.C. 15852 but that do not meet the requirements in section 4.2.5 may count towards net annual CFE goals subject to a 7.5 percent cap. For purposes of meeting net annual CFE requirements, agencies must report actual renewable energy production.13 Purchase contracts executed or on-site generation placed in service must include associated EACs, per the requirements in section 4.2.5, to be counted toward the CFE goal.

4.2.9 Tracking and Reporting for CFE

DOE-FEMP will incorporate data on each agency’s FY 2021 CFE baseline and track progress toward the CFE goals in the Annual Energy Report.

4.2.10 24/7 CFE Goal

Section 203 of E.O. 14057 sets the goal that agencies match facility electrical energy use on an hourly basis to achieve 50 percent 24/7 CFE by 2030.

CEQ and OMB will issue guidance on methodologies for 24/7 CFE accounting and requirements for reporting and measuring progress toward the 50 percent 24/7 CFE goal in FY 2023, or when sufficient accounting and data management systems for tracking and reporting have been developed.

Pending further guidance and to establish a foundation for meeting 24/7 CFE requirements, in

FY 2022, agencies must report on their approach to producing or obtaining, including from electricity providers, their hourly facility consumption profiles by grid region. Beginning with the January 2023 Annual Energy Report, where agencies have the data, agencies must report the percentage of their electricity consumption by grid region on an hourly basis.

4.2.11 Government-Wide Coordination of CFE Procurement

Consistent with section 509(a) of E.O. 14057 and its role of coordinating E.O. implementation, CEQ will collaborate with OMB, energy procuring agencies such as GSA, the Department of

Defense (DOD), and DOE, and agency energy leads to facilitate development of government-wide programs, systems, and processes to enable aggregation of demand and efficient, coordinated, and innovative procurement of CFE to meet the E.O. 14057 goals. CEQ also will collaborate with GSA, DOE, and DOD to identify priority areas and service territories for demand aggregation, as well as opportunities for GSA’s Federal Rate Intervention Working

Group to further support interagency coordination.

13 The “double bonus” toward Energy Policy Act (EPAct) consumption requirements that is counted for renewable energy produced at a Federal facility or on Tribal land, per 42 U.S.C. 15852(c), does not apply toward the CFE goal.

Geographic and Regulatory Considerations for Procurement and Demand Aggregation

Retail Electric Choice Markets: In deregulated electricity markets where consumers may choose their electricity provider, most agencies purchase electricity through commodity contracts managed by GSA or the Defense Logistics Agency (DLA), thereby aggregating loads and leveraging the Federal Government’s collective purchasing power. In developing plans for CFE purchase in these regions, agencies should coordinate with GSA or DLA.

Vertically Integrated Utility Markets: In regulated electricity markets, consistent with the Federal

Acquisition Regulations sections 41.204 through 41.206, agencies must procure electricity from their serving utilities through task orders issued under GSA areawide contracts, separate contracts (subject to agency contracting authority), or interagency agreements. In these markets, each serving utility has an assigned agency that serves as the utility lead agency to coordinate discussions with the serving utility, which may include CFE options that can meet the aggregated

Federal loads of sites within the service territory. In developing plans for CFE purchases in these regions, agencies should coordinate with the relevant utility lead agencies.

Agency Planning, Reporting, and Target Setting: Consistent with section 201 of E.O. 14057, each principal agency must develop and submit an initial CFE Strategic Plan for FY 2023 and beyond, based on CEQ and OMB’s forthcoming guidance and template. Plans must address the agency’s current inventory of electricity supply contracts, the agency’s approach to producing or obtaining their hourly electricity consumption data by grid region, and initial strategies for implementation to achieve the E.O.’s CFE goals. Agencies must update their plans annually, beginning in FY 2024, based on further CEQ and OMB guidance.

Agency Point of Contact: Agency CSOs should identify one or more points of contact responsible for developing their agency’s CFE Strategic Plan.

Further Guidance: In coordination with DOE-FEMP and EPA and in consultation with OMB, CEQ will issue guidance in FY 2023 on methodologies for CFE accounting to measure progress toward meeting the 24/7 hourly matched CFE goal.

4.3 Zero-Emission Vehicle Fleet

4.3.1 Policy

[T]he Federal Government shall use its scale and procurement power to achieve . . . 100 percent zero-emission vehicle acquisitions by 2035, including 100 percent zero-emission light-duty vehicle acquisitions by 2027 . . . . (Sec. 102(a)(ii) of E.O. 14057)

Each agency with a fleet comprising at least 20 vehicles shall develop and annually update a zero-emission fleet strategy . . . . (Sec. 204 of E.O. 14057)

4.3.2 Overview

The Federal Government operates the largest non-tactical vehicle fleet in the world, with more than 600,000 light-, medium-, and heavy-duty vehicles.14 Transitioning agency vehicles to ZEVs will cut scope 1 GHG emissions, improve public health, help accelerate a rapidly changing transportation sector, and support the development of the domestic ZEV and EVSE industry.

Achieving the 100 percent ZEV goals requires expanded coordination among agencies, particularly among those responsible for fleet management, as well as those responsible for facility and energy management, capital planning, and budgeting. The Federal Government can accelerate achievement of the ZEV goals through new avenues for external coordination with state and local governments, utilities, EVSE providers, and others. The Instructions and the resources included below establish a foundation for planning, target-setting, coordination, and cross-agency collaboration for each agency to achieve the ZEV goals.

4.3.3 Progress Metrics

Target

100 percent of light-duty vehicle acquisitions are ZEVs by 2027.

100 percent medium-duty vehicle (MDV) and heavy-duty vehicle

(HDV) acquisitions are ZEVs by 2035.

Metrics ZEVs as percentage of annual light-duty vehicle (LDV) acquisitions.

ZEVs as percentage of annual MDV and HDV acquisitions.

Progress Milestone Agencies will set annual acquisition targets in consultation with CEQ and OMB, beginning in FY 2022.

14 GSA, Federal Fleet Report (May 25, 2022), https://www.gsa.gov/policy-regulations/policy/vehicle-management-policy/federal-fleet-report.

https://www.gsa.gov/policy-regulations/policy/vehicle-management-policy/federal-fleet-report https://www.gsa.gov/policy-regulations/policy/vehicle-management-policy/federal-fleet-report

4.3.4 Requirements and Priority Strategies: Vehicle Acquisition

Applicability: The ZEV goals and requirements of E.O. 14057, with the exception of the annual

Zero-emissions Fleet Strategic Plan requirement (section 204), apply to agencies regardless of the number of vehicles in their fleet. The Strategic Plan requirement applies to all agencies that that own, operate, lease, or otherwise control 20 or more non-tactical automobiles or motor vehicles (including light-, medium-, and heavy-duty vehicles) located in the United States, regardless of whether the agency’s number of total vehicles constitute a vehicle fleet under 42

U.S.C. 13211. An agency’s entire fleet of vehicles is subject to the E.O.’s requirements, including law enforcement, pursuit and non-pursuit, and emergency response vehicles, unless the agency head specifically exempts them under section 602 of the E.O. Agencies should apply the

ZEV goals to overseas vehicles, wherever appropriate ZEV models are available, servicing can meet travel requirements, and fueling infrastructure (including a stable host-nation electrical grid) can be feasibly established and or accessed.

Agencies also must ensure that government-owned, contractor-operated vehicles are acquired and managed in accordance with E.O. 14057’s goals and requirements, to the same extent as agency-operated vehicles, and include such requirements in relevant new contracts. Agencies also should include requirements in relevant contracts, where a central purpose of the contract is to provide vehicle transportation services of people or materials on a Federal site, to ensure contractor-owned vehicles operated under such contracts are consistent with the ZEV goals.

Accelerating ZEV acquisitions: To achieve the E.O. 14057 goal of a 100 percent ZEV fleet, agencies should not limit themselves to acquiring ZEVs only where a “like for like” vehicle or vehicle class substitution is available.

• In the event that a planned or targeted ZEV model is not available for a specific vehicle type and configuration, agencies must consider other vehicle types where another ZEV model is offered that meets agency needs. Agencies should look for comparable vehicles that meet performance requirements, including other standard item numbers (SINs) (i.e., other vehicle subclasses) within the same vehicle segment.

• Agencies should include MDVs and HDVs in their annual ZEV acquisition plans consistent with expected availability of new vehicle models in these vehicle classes and begin acquiring such vehicles as they come to market.

• Agencies should deploy managed charging (i.e., controlled by smart chargers with embedded meters to ensure charging occurs at non-peak electric usage times) and also plan for bi-directional charging (i.e., charging that allows electricity to flow both into the vehicle and back from the vehicle to the facility or grid) technology projects in all vehicle classes, though particularly where MDVs and HDVs and their larger batteries can support energy resiliency and load management by serving as mobile energy storage banks.

4.3.5 Requirements and Priority Strategies: Electric Vehicle Supply Equipment (EVSE)

Achieving E.O. 14057’s ZEV targets requires rapid deployment of EVSE, which comprises battery and plug-in hybrid electric vehicle charging infrastructure and other types of refueling infrastructure, such as hydrogen fueling stations for fuel cell electric vehicles. In developing and executing ZEV strategies, agencies also must ensure availability of sufficient EVSE to support a fully ZEV fleet, including planning, financing, and deploying EVSE in advance of vehicle acquisitions.

EVSE planning: EVSE planning, installation, and operational management requires close collaboration between an agency’s fleet and facility staff. CEQ will coordinate with OMB, DOE, and GSA to provide agencies with ZEV and EVSE acquisition and deployment tools and fleet data management systems, as well as employee training, to enable effective EVSE planning and deployment.

The following existing resources also are available to assist agencies in planning for EVSE:

• DOE’s Alternative Fuel Vehicle (AFV) Screening Tool in the Fleet Sustainability

Dashboard (FleetDASH),15 which assesses opportunities to switch current vehicles to

ZEVs, given agency reported usage data.

• DOE’s EVI-LOCATE Tool, which will support the planning, design, and cost estimation process for EVSE installation.

• DOE’s EV U-Finder Tool,16 which identifies Federal utility program contacts and EV or

EVSE incentives by zip code.

● GSA’s EVSE Utilities Dashboard, which provides a list searchable by state of all ZEV and EVSE incentives of which federal agencies may be able to take advantage.

● GSA’s fact sheet on how agencies can pay to charge at publicly available EVSE.

• DOE’s ZEV Ready Program, which will help determine an individual site’s readiness to incorporate ZEVs.

Funding options for EVSE: Agencies should employ all available acquisition and funding mechanisms and technical support to accelerate EVSE deployment and lower overall costs, including:

Utilities: Many utilities offer facility assessments, site planning, financial assistance, incentives, and planning tools for EVSE deployment. Agencies should ensure that facilities coordinate with electric utility providers in EVSE planning, and identify resources and support that can accelerate EVSE planning, financing, and installation. In certain situations, GSA areawide agreements with utilities may facilitate such utility assistance.

15 https://federalfleets.energy.gov/FleetDASH.

16 https://www.energy.gov/eere/femp/articles/electric-vehicle-utility-finder-ev-u-finder.

http://gsa.gov/evse http://gsa.gov/evse https://federalfleets.energy.gov/FleetDASH/ https://www.energy.gov/eere/femp/articles/electric-vehicle-utility-finder-ev-u-finder

GSA Government-wide acquisition solutions: Agencies should purchase EVSE through GSA’s

Blanket Purchase Agreements (BPAs)17 and through GSA Advantage.18 GSA’s indefinite delivery, indefinite quantity (IDIQ)19 contracts, which will provide design-build construction services for EVSE installation, are expected to be available in the summer of 2022.

Performance contracts: In certain situations, agencies may be able to use energy savings performance contracts (ESPCs), utility energy service contracts (UESCs), and DOE’s Assisting

Federal Facilities with Energy Conservation Technologies (AFFECT)20 grant funding for EVSE installation projects that can be incorporated into broader facility upgrades (see section 4.4.8).

Other non-Federal and local resources: Agencies also may be able to access resources (e.g., state and local grant programs), planning tools, and technical support from state and local governments, not-for-profit organizations, regional coalitions, and other organizations, such as local Clean Cities coalitions.

EVSE for leased space: In leased facilities or office space, agencies should work with building owners and operators to expand EVSE availability for charging fleet vehicles. Agencies should use the forthcoming GSA guidance on EVSE deployment in leased spaces to expand EVSE availability in their leased facilities.

EVSE operations: Agencies must separately track energy used for vehicle charging and overall facility energy consumption. Vehicle charging energy data is best captured directly from networked (“smart”) EVSE installed at the facility or through standalone electric meters or submeters. Submeters dedicated to EVSE loads can complement networked EVSE. Networked

EVSE or submetering allows facility and fleet managers to coordinate on managed charging, which involves charging of ZEVs at non-peak times, when possible, to avoid peak pricing, demand charges, and periods of high grid-emission intensity. Agencies also may develop the energy data through manual estimation of electricity used by each vehicle at a facility using the vehicle’s fuel economy rating and electric miles traveled via DOE’s Calculator for Estimating

Electricity Consumption in Federal Electric Vehicles,21 if necessary, although this method does not allow for directly managing charging. Whichever method is employed, it should allow agencies to isolate the energy used for fleets from facility energy use so agencies can properly account for electricity usage for their facilities and fleets.

4.3.6 Fleet Management Practices to Support and Accelerate ZEV Deployment

Telematics: Telematics are technology-based hardware tools that collect and record vehicle operational data. Manufacturers can install telematics in vehicles as standard equipment, or

17 https://www.gsa.gov/buying-selling/purchasing-programs/gsa-multiple-award-schedule/schedule-features/blanket-purchase-agreements.

18 https://gsaschedule.com/marketing-your-gsa-schedule/gsa-advantage.

19 https://www.gsa.gov/small-business/register-your-business/explore-business-models/indefinite-delivery-indefinite-quantity-contracts#:~:text=Indefinite%20delivery%2C%20indefinite%20quantity%20contracts%20provide%20for%20an%2

0indefinite%20quantity,require%20during%20the%20contract%20period.

20 https://www.energy.gov/eere/femp/assisting-federal-facilities-energy-conservation-technologies-affect-federal-agency-call.

21 https://www.energy.gov/sites/default/files/2020/12/f81/ev-electricity-in-gge-calculator.xlsx.

https://www.gsa.gov/buying-selling/purchasing-programs/gsa-multiple-award-schedule/schedule-features/blanket-purchase-agreements https://www.gsa.gov/buying-selling/purchasing-programs/gsa-multiple-award-schedule/schedule-features/blanket-purchase-agreements https://gsaschedule.com/marketing-your-gsa-schedule/gsa-advantage/ https://www.gsa.gov/small-business/register-your-business/explore-business-models/indefinite-delivery-indefinite-quantity-contracts#:~:text=Indefinite%20delivery%2C%20indefinite%20quantity%20contracts%20provide%20for%20an%20indefinite%20quantity,require%20during%20the%20contract%20period.

https://www.gsa.gov/small-business/register-your-business/explore-business-models/indefinite-delivery-indefinite-quantity-contracts#:~:text=Indefinite%20delivery%2C%20indefinite%20quantity%20contracts%20provide%20for%20an%20indefinite%20quantity,require%20during%20the%20contract%20period.

https://www.gsa.gov/small-business/register-your-business/explore-business-models/indefinite-delivery-indefinite-quantity-contracts#:~:text=Indefinite%20delivery%2C%20indefinite%20quantity%20contracts%20provide%20for%20an%20indefinite%20quantity,require%20during%20the%20contract%20period.

https://www.gsa.gov/small-business/register-your-business/explore-business-models/indefinite-delivery-indefinite-quantity-contracts#:~:text=Indefinite%20delivery%2C%20indefinite%20quantity%20contracts%20provide%20for%20an%20indefinite%20quantity,require%20during%20the%20contract%20period.

https://www.energy.gov/eere/femp/assisting-federal-facilities-energy-conservation-technologies-affect-federal-agency-call https://www.energy.gov/eere/femp/assisting-federal-facilities-energy-conservation-technologies-affect-federal-agency-call https://www.energy.gov/sites/default/files/2020/12/f81/ev-electricity-in-gge-calculator.xlsx telematics can be added as an aftermarket product. Consistent with section I.C.3.b of M-22-06, agencies must deploy telematics and collect and use fleet operational data to inform fleet planning and vehicle acquisition strategies, as well as ZEV and EVSE operational management.

• Deploying telematics: GSA policy requires…