J2h FAA_Order_1053_1C Energy-Water Manage.pdf

U.S. DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

National Policy

ORDER

1053.lC

Effective Date:

10/26/17

SUBJ: Energy and Water Management Program for FAA Buildings and Facilities

1. Consistent with its mission to provide the safest, most efficient air transportation system in the world, the Federal Aviation Administration (FAA) strives to manage the acquisition, consumption, and conservation of energy and water resources in a manner that minimizes both the expense and the impact of FAA operations on human health and the environment. Ibis is done in a manner that is designed to meet the requirements of applicable laws, executive orders (EO), regulations and Department of Transportation (DOT) policies, while reducing life cycle cost expenditures.

2. Ibis Order establishes policy, delegates authority, and assigns responsibility for ensuring that F AA's energy and water management goals are achieved. In addition, this Order sets forth procedures for the performance, management, and oversight of the Energy and Water Management Program by Agency personnel.

3. Each Line of Business (LOB) and Staff Office (SO) should supplement this Order with guidelines, instructions, or procedures specific to its needs in a manner that is consistent with this Order.

4. Recognizing that program improvement is a vital element in the Program's effectiveness and responsiveness to F AA's evolving needs, users are encouraged to offer suggestions to update and improve this Order through the use of FAA Form 1320-19, Directives Feedback Information.

Je · er Solom \, J As · s t Administrator '\. Policy, International Affairs, and Environment

Distribution: Electronic Initiated By: AEE-1

10/26/17 1053.1C ii

Table of Contents

Paragraph Page

Chapter 1. General Information ........................................................................................................... 1-1

1. Purpose of This Order ................................................................................................................... 1-1

2. Audience ........................................................................................................................................ 1-1

3. Where Can I Find This Order ....................................................................................................... 1-1

4. Cancellation. .................................................................................................................................. 1-1

5. Explanation of Policy Changes. ................................................................................................... 1-1

6. Scope. ............................................................................................................................................ 1-1

7. Applicability. ................................................................................................................................. 1-1

8. Requirements Overview. .............................................................................................................. 1-1

9. Environmental Management System (EMS). ............................................................................. 1-3

10. Program Structure. ........................................................................................................................ 1-3 Chapter 2. Energy and Water Program Planning ................................................................................ 2-1

1. Introduction. .................................................................................................................................. 2-1

2. Energy and Water Reductions. ..................................................................................................... 2-1

3. Annual Environmental Management Programs (EMP).............................................................. 2-3

4. Budget Planning. ........................................................................................................................... 2-4

Chapter 3. Energy and Water Conservation and Efficiency Projects ................................................ 3-1

1. Introduction. .................................................................................................................................. 3-1

2. Facility Energy and Water Consumption Baseline. .................................................................... 3-1

3. Energy-Efficient Building Equipment. ........................................................................................ 3-1

4. Covered Facilities and Energy and Water Evaluations. .............................................................. 3-1

6. Project Scoping and Combining Energy and Water Conservation Measures into Projects. ..... 3-3

7. Financing Options. ........................................................................................................................ 3-4

8. Retained Savings. .......................................................................................................................... 3-5 Chapter 4. Energy and Water Aspects of Operations & Maintenance (O&M) and Energy

Information 4-1

1. Introduction. .................................................................................................................................. 4-1

2. Performance-Based Maintenance. ............................................................................................... 4-1

3. Commissioning. Commissioning, ............................................................................................... 4-2

4. Metering. ....................................................................................................................................... 4-2

5. Building Temperature Setpoints and Heating, Ventilation, and Air Conditioning (HVAC)

Schedules .............................................................................................................................................. 4-2

6. Sustainable Federal Buildings Guiding Principles in Existing Buildings. ................................. 4-3

Chapter 5. Energy and Water Aspects of New Construction, Major Renovations, and Leases ....... 5-1

1. Introduction. .................................................................................................................................. 5-1

2. Life Cycle Cost Analysis (LCCA). .............................................................................................. 5-1

3. Federal Performance Standards. ................................................................................................... 5-1

4. Energy Modeling. ......................................................................................................................... 5-3

5. Energy and Water Meters. ............................................................................................................ 5-3

6. Stormwater Management. ............................................................................................................ 5-3

7. Historic Properties. ........................................................................................................................ 5-4

8. Fleet Charging Infrastructure........................................................................................................ 5-4

9. Leases. ........................................................................................................................................... 5-4 iii

Chapter 6. Clean Energy....................................................................................................................... 6-1

1. Introduction. .................................................................................................................................. 6-1

2. Clean Energy Consumption. ........................................................................................................ 6-1

a. Identifying Clean Energy Projects. .............................................................................................. 6-1

b. Financing Clean Energy Projects. ................................................................................................ 6-2

3. Renewable Electric Energy Supply. ............................................................................................ 6-2

4. On-Site Renewable Electric Energy. ........................................................................................... 6-2

a. On-site Bonus ................................................................................................................................... 6-3

5. Renewable Electric Energy Purchases from a Utility. ................................................................ 6-3

6. Renewable Energy Certificates (REC) ........................................................................................ 6-3

Chapter 7. Energy and Water Aspects of Product Procurement and Operations .............................. 7-1

1. Introduction. .................................................................................................................................. 7-1

2. Federal Product Procurement Standards. ..................................................................................... 7-1

3. Product Operations........................................................................................................................ 7-2 Chapter 8. Energy and Water Awareness and Training...................................................................... 8-1

1. Introduction. .................................................................................................................................. 8-1

2. Energy and Water Awareness Programs ..................................................................................... 8-1

3. Energy Training. ........................................................................................................................... 8-1

4. Employee Recognition. ................................................................................................................ 8-2

Chapter 9. Energy and Water Tracking and Reporting....................................................................... 9-1

1. Introduction. .................................................................................................................................. 9-1

2. Tracking and Performance Measures. ......................................................................................... 9-1

3. Benchmarking. .............................................................................................................................. 9-1

4. Reporting. ...................................................................................................................................... 9-2

5. Exclusions from Federal Performance Requirements. ................................................................ 9-2 Chapter 10. Administrative Information .............................................................................................. 10-1

1. Distribution. ................................................................................................................................. 10-1

2. Background. ................................................................................................................................ 10-1

3. Authority to Change This Order. ............................................................................................... 10-1

4. Acronyms. ................................................................................................................................... 10-1

5. Definitions. .................................................................................................................................. 10-1

Appendix A. Acronyms List ................................................................................................................A-1 Appendix B. Definitions ...................................................................................................................... B-1

Appendix C. Summary of Requirements ............................................................................................ C-1 Appendix D. Directive Feedback Information ...................................................................................D-1 iv

List of Tables Table Page

Table 2-1. Annual Energy Intensity Reduction Requirements ............................................................. 2-1

Table 2-2. Annual Potable Water Intensity Reduction Requirements ................................................. 2-2 Table 2-3. Annual Industrial, Landscaping, and Agricultural (ILA) Water Consumption Reduction

Requirements ........................................................................................................................................... 2-3 Table 5-1. Fossil Fuel Reduction Requirements ................................................................................... 5-2 Table 6-1. Clean Energy Consumption Requirements ......................................................................... 6-1

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Chapter 1. General Information

1. Purpose of This Order. This Order establishes Federal Aviation Administration (FAA) policies, procedures, and responsibilities for an Energy and Water Management Program consistent with the

Acquisition Management System (AMS), and applicable Federal laws, regulations, Executive Orders

(EO) and Department of Transportation (DOT) policies.

2. Audience. FAA employees and contractors are required to comply with this Order.

3. Where Can I Find This Order. This Order is available on the MyFAA employee website at https://employees.faa.gov/tools_resources/orders_notices and on the public website at http://www.faa.gov/regulations_policies/orders_notices/.

4. Cancellation. This Order cancels FAA Order 1053.1B, Energy and Water Management

Program for FAA Buildings and Facilities, dated 04/08/13.

5. Explanation of Policy Changes. This Order addresses updated energy and water requirements resulting from EO 13693, Planning for Federal Sustainability in the Next Decade (EO 13693); DOT sustainability orders; and other revised legal and regulatory requirements. The previous version of the

Order was published in 2013 and does not reflect current Federal requirements.

6. Scope.

a. Covered Activities. An energy or water management activity is covered by this Order if it meets either of the following requirements:

(1) The activity affects FAA building and facility operating costs; or

(2) The activity is required by applicable legal, regulatory, or policy-driven provisions (e.g., the Energy Policy Act of 2005 (EPAct 2005) (42 United States Code [USC] §15801 et seq.), the Energy

Independence and Security Act of 2007 (EISA) (42 USC §17001 et seq.), and EO 13693).

b. Excluded Activities. Vehicle fleet efficiency and fuels are not included within the scope of this

Order.

7. Applicability. This Order applies to internal FAA actions and activities that affect construction, renovation, acquisition, and operations and maintenance (O&M) of FAA-owned buildings and facilities, and FAA-leased buildings (direct lease and General Services Administration [GSA] lease).

The sustainable federal buildings requirements detailed in Chapters 4 and 5 apply to FAA-owned buildings. This Order also applies to the purchase, operation, and disposal of FAA-procured products

(e.g., computers) that require energy or water as part of their function. Energy and water management requirements associated with this Order will not restrict or inhibit the safe and efficient operation of the

National Airspace System (NAS).

8. Requirements Overview. FAA must achieve the energy and water management requirements specified in the most current Federal laws, regulations, EOs, and DOT policies. The latest version of https://employees.faa.gov/tools_resources/orders_notices http://www.faa.gov/regulations_policies/orders_notices/

1-2 referenced publications must be used in conjunction with this Order. Below is a sample of major, applicable requirements. These and other requirements are further covered in the chapters of this Order.

a. Greenhouse Gas (GHG) Emissions. FAA must reduce GHG emissions in accordance with

DOT established requirements. In June 2015, DOT established a Scope 1 & 2 GHG emissions reduction requirement of 35 percent by fiscal year (FY) 2025, relative to a FY 2008 baseline. Scope 1

GHG emissions are direct GHG emissions from sources that are owned or controlled by FAA, and

Scope 2 GHG emissions are indirect GHG emissions resulting from the generation of electricity, heat, or steam purchased by FAA. In June 2015, DOT also established a Scope 3 GHG emissions reduction requirements of 35 percent by FY 2025, relative to a FY 2008 baseline. Scope 3 GHG emissions are GHG emissions from sources not owned or directly controlled by FAA, but related to such Agency activities as vendor supply chains, delivery services, and employee travel and commuting.

b. Energy. FAA must reduce building energy intensity (i.e., British thermal units/square foot

[Btu/sf]) in goal subject buildings by 2.5 percent annually through the end of FY 2025, relative to a

FY 2015 baseline (EO 13693, Planning for Federal Sustainability in the Next Decade §3(a)(i)). Refer to Chapter 2 for annual energy intensity reduction requirements.

c. Water. FAA must reduce potable water intensity (i.e., gallons/square foot [gal/sf]) 2 percent annually, equal to a 36 percent total reduction, by FY 2025, relative to a FY 2007 baseline (EO 13693

§3(f)(i)). In addition, FAA must reduce industrial, landscaping, and agricultural (ILA) water consumption by 2 percent annually by FY 2025, relative to a FY 2010 baseline (EO 13693 §3(f)(iii)).

Refer to Chapter 2 for the criteria for being considered on track with these requirements.

d. Sustainable Federal Buildings. FAA must ensure that all new major construction, renovation, or repair and alteration of existing owned buildings greater than 5,000 gross square feet

(gsf) comply with the Guiding Principles for Sustainable Federal Buildings (2016 Guiding

Principles) where cost effective (EO 13693 Implementing Instructions §III(D)(3)). In addition, FAA must ensure that 15 percent of the Agency’s existing owned Federal capital asset building inventory greater than 5,000 gsf complies with the 2016 Guiding Principles by FY 2025 and make annual progress towards 100 percent conformance for its building inventory thereafter (EO 13693 §3(h)(ii)).

e. Net-Zero. FAA must ensure, beginning in FY 2020, that all new construction of buildings greater than 5,000 gsf that enters the planning process is designed to achieve energy net-zero by FY

2030 (EO 13693 §3(h)(i)). In addition, as part of FAA’s annual Strategic Sustainability Performance

Plan (SSPP), FAA must identify a percentage of existing buildings over 5,000 gsf intended to be energy, waste, or water net-zero buildings by FY 2025 and implement actions that will allow those buildings to meet that target (EO 13693 §3(h)(iii)). Refer to Chapter 5 for additional information on net-zero buildings.

f. Metering. FAA must install advanced electric metering to the maximum extent practicable, or standard electric metering, in Agency buildings by October 1, 2012 (EPAct 2005 §103, amending

42 USC §8253(e)). FAA must install equivalent meters for natural gas and steam utilities by October

1, 2016 (EISA §434(b), amending 42 USC §8253(e)(1)). FAA must also install water meters

(standard or advanced meters), where life cycle cost effective, to collect and utilize building and

1-3 facility water balance data to improve water conservation and management (EO 13693 §3(f)(ii)).

Refer to Chapter 4 for additional information on metering.

9. Environmental Management System (EMS). In accordance with the FAA Order 1050.21, Environmental Management System (EMS), FAA established a higher-tier EMS and designated appropriate organizational EMSs. The EMS is the tool for managing environmental performance and risks throughout FAA. Achievement of FAA energy and water management goals will be executed through the energy and water environmental management programs (EMP) developed and implemented by each designated EMS as required by EO 13693 §7(i). Energy and water EMPs document objectives and goals, and how they will be accomplished, including roles, responsibilities, milestones and dates, metrics, and measurements of success. These EMPs are established and implemented by designated EMS organizations and should align with FAA higher-tier

EMS energy and water EMPs, as necessary.

10. Program Structure. An effective Energy and Water Management Program requires Agency support, implementation throughout FAA service areas and centers, and support from LOB and SO.

Each LOB and SO-designated energy manager (including Mike Monroney Aeronautical Center- or

William J. Hughes Technical Center-designated energy managers) should have access to the necessary technical, managerial, and financial resources to maximize cost and energy savings. The

Program should integrate the knowledge, skills, and technical manager and building operator expertise to maximize efficiency and achieve the most effective results. It is recognized that FAA organizational structure will continue to evolve during the course of implementing this Order, so that roles and responsibilities, as well as organizational units will change. This Order has been written to allow flexibility to accommodate future changes. Requirements established in this Order apply to the organizational unit responsible for that function (e.g., new construction, purchasing). Based on each organization’s structure, some LOBs/SOs may not have a need for all of these roles.

a. Senior FAA Official. FAA designated the Deputy Assistant Administrator for Policy, International Affairs and Environment (APL-2) as its Chief Sustainability Officer (CSO). Each executive agency is required to designate a CSO, who is responsible for agency conformance with the requirements of EO 13693 (EO 13693 §7(a)). DOT extended this requirement to each operating administration (OA). APL-2 is responsible for working with DOT and other OAs to meet sustainability requirements across DOT. APL-2 provides the FAA senior level guidance, support, and accountability necessary to maximize the effectiveness of Agency sustainability efforts.

b. Office of Environment and Energy (AEE). AEE oversees and facilitates the Energy and

Water Management Program. FAA energy and water policy is developed by AEE, with support from

FAA LOBs and SOs. AEE is responsible for communicating FAA energy and water management requirements. In addition, AEE is responsible for specifying LOB and SO data collection and reporting requirements in support of FAA-wide energy and water reporting. Using the LOB and SO data provided, AEE externally reports FAA compliance with various requirements to DOT. AEE must:

(1) Develop and update FAA energy and water policy;

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(2) Act as the primary point of contact (POC) and liaison with DOT, Department of Energy

(DOE), and other external stakeholders;

(3) Coordinate FAA response to required reports and data calls;

(4) Evaluate the policy’s effectiveness;

(5) Develop and update FAA-wide energy and water requirements;

(6) Set and communicate internal reporting requirements;

(7) Develop and implement energy and water EMPs for the Agency through FAA’s higher-tier EMS;

(8) Disseminate information, such as best practices and training opportunities, to LOB and SO energy managers; and

(9) Promote energy and water awareness activities.

c. LOBs and SOs. FAA LOBs and SOs responsible for facilities or actions and activities that affect construction, renovation, acquisition, and O&M covered by this Order should plan and implement organizational energy and water EMPs. These FAA organizational units should develop guidance, plans, and other documentation and tools, as needed, and include AEE in document review processes prior to issuance. The energy and water EMPs should be reviewed on an annual basis and coordinated with AEE.

(1) Each LOB/SO that operates and maintains a building is responsible for meeting the FAA

GHG targets at the LOB/SO level and reporting progress toward meeting these targets to AEE for

FAA compliance with Federal reporting requirements. Additionally, each LOB/SO that operates and maintains a building for which FAA pays the utilities separately from the lease is responsible for meeting the FAA energy, water, and other consumption targets at the LOB/SO level and reporting progress toward meeting these targets to AEE for FAA compliance with Federal reporting requirements.

(2) Each LOB/SO that operates and maintains FAA owned buildings is responsible for meeting the FAA Sustainable Federal Buildings targets at the LOB/SO level and reporting progress toward meeting these targets to AEE for FAA compliance with Federal reporting requirements. Any

LOB/SO with a long-term leasing arrangement should consult with AEE to determine whether such buildings should be treated as owned buildings for reporting purposes.

(3) Each LOB and SO responsible for facilities must designate a LOB and SO energy manager. Each LOB and SO responsible for facilities should enlist a full-time energy manager or assign energy and water management as a primary responsibility for one or more facility managers.

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(4) For the Air Traffic Organization (ATO), each service area responsible for facilities should enlist a full-time energy manager or assign energy and water management as a primary responsibility for one or more facility managers, as needed by the ATO Energy Program.

(5) Organizations not directly responsible for facilities must designate an energy POC. This

POC will be responsible for coordinating and reporting on the organizational level program and responsibilities, program implementation, strategies, and plans for meeting Agency requirements.

(6) LOB and SO energy managers may further designate local energy managers, facility managers, and energy coordinators at the field organization level, as appropriate. EISA requires an energy manager for every facility, but one energy manager can be responsible for multiple facilities.

The LOB energy manager can hold this responsibility for multiple facilities or delegate it to the facility or field organization level.

d. LOB and SO Executives and Managers. LOB and SO executives and managers must:

(1) Designate LOB and SO energy managers;

(2) Support funding requests for their organizations to implement their programs;

(3) Identify available funding and alternative funding options for Energy and Water

Management Program implementation;

(4) Ensure organization-wide energy and water awareness activities occur;

(5) Encourage employees to incorporate energy and water conservation into everyday activities;

(6) Ensure that the accomplishment of energy and water management requirements are included in the performance standards of those individuals who have been assigned primary responsibility for meeting energy and water conservation requirements and of their immediate supervisors; and

(7) Ensure energy and water management requirements are communicated and coordinated throughout the management chain through the use of energy and water EMPs.

e. LOB and SO Energy Managers. LOB and SO energy managers must:

(1) Develop implementation orders and guidance and other tools, as needed;

(2) Identify and develop energy and water conservation measures;

(3) Communicate regularly with AEE and other energy managers;

(4) Oversee program implementation activities, such as, but not limited to:

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(a) Assisting the organization in developing its energy and water EMPs to develop, document, and track goals that support FAA-wide energy and water requirements as specified by AEE;

(b) Conducting regular energy awareness and outreach activities;

(c) Providing guidance to project managers on facility and system designs to ensure compliance with energy and water efficiency mandates, and the 2016 Guiding

Principles;

(d) Establishing training programs and requirements, as needed;

(e) Nominating FAA personnel and projects for internal and external awards and program recognition;

(f) Providing data and regular reporting on energy and water performance, as requested by AEE; and

(g) Tracking and analyzing energy and resource cost and consumption; and

(5) Identify incentive programs for FAA projects that may qualify;

(6) Control and track the use of retained savings, as needed;

(7) Initiate renewable energy projects that are feasible and cost effective;

(8) Participate in appropriate industry events and training programs; and

(9) Serve as or designate EISA energy managers, as defined and required by EISA §432, amending 42 USC §8253(f)(2)(A).

f. Program Office Project Managers. Program office project managers (e.g., Air Traffic

Organization – Terminal Services [AJT], Technical Operations [AJW]) must budget, plan, design, and implement energy and water conservation measures, in coordination with appropriate stakeholders, as part of their construction or renovation projects and sustainment (i.e., O&M) activities.

g. LOB and SO Energy Points of Contact (POC). LOB and SO energy POCs must:

(1) Document and report on organizational-level programs and responsibilities, program implementation, strategies, and plans for meeting Agency requirements;

(2) Help identify energy and water conservation measures; and

(3) Regularly communicate with AEE and energy managers.

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h. Local Energy Managers, Facility Managers, and Energy Coordinators. Local energy managers, facility managers, and energy coordinators must:

(1) Identify, advocate, and coordinate energy and water conservation measures;

(2) Track, report, and analyze energy and resource cost and consumption;

(3) Participate in facility design reviews, as needed;

(4) Participate in training programs, as needed;

(5) Advance building occupant energy awareness by organizing events and distributing information;

(6) Implement O&M best practices that optimize building performance to support the FAA mission and improve energy and water efficiency; and

(7) Ensure construction contractors follow energy and water best management practices.

i. Procurement Team. The procurement team is a group of relevant program offices, subject matter experts, and other technical specialists that develop the procedures, requirements, and specifications for a procurement to make recommendations to the contracting officer (CO)/real estate contracting officer (RECO). The team must:

(1) Work with information specialists and LOBs/SOs to develop standardized procedures for procuring energy- and water-efficient products;

(2) Ensure all participating organizations, as well as leases, contracts, and agreements entered into, comply with energy-efficient acquisition requirements;

(3) Incorporate appropriate procurement language into equipment specifications that reflect updated energy- and water-efficiency requirements;

(4) Use available guidance and life cycle cost analysis (LCCA) tools to support product procurement decisions; and

(5) Provide acquisition training to designers, COs/RECOs, buyers, contractors, and others who purchase products on behalf of the Federal government.

j. Contracting Officer (CO)/Real Estate Contracting Officer (RECO). The CO/RECO will be a member of the procurement team. The CO/RECO must:

(1) Work to incorporate the procurement team's requirements into any relevant contracts, orders, leases, or agreements;

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(2) Enter into, administer, and terminate contracts/leases and make related decisions pursuant to FAA acquisition policy;

(3) Review every three years the electricity rate schedules with the utility companies for the highest electricity consuming facilities; and

(4) Manage FAA supplier relationships, and ensure the integrity and equity of the contracting process.

k. FAA Fleet Manager. The FAA Fleet Manager must:

(1) Oversee the FAA vehicle fleet’s use of charging infrastructure; and

(2) Be consulted regarding the installation of charging infrastructure for the FAA vehicle fleet.

l. FAA Employees. All FAA employees should:

(1) Support Agency energy and water management requirements by taking appropriate actions to improve Agency efficiency through the course of their work;

(2) Limit use of portable heaters, fans, and other such devices, unless authorized by facility management (41 Code of Federal Regulations [CFR] Part 102-74.190);

(3) Turn off lights and equipment when not needed (41 CFR Part 102-74.160), except during scheduled maintenance or in instances where it could have a negative impact on mission objectives or bears associated risks;

(4) Close or tilt window blinds in warm months to block direct sunlight to the extent practicable, which reduces cooling needs;

(5) In the winter months, open blinds on south-facing windows during the day to allow sunlight to naturally heat workspaces, and, at night, close the blinds to reduce heat loss to the extent practicable;

(6) Photocopy only what is needed, and use double-sided and black and white printing to the extent practicable;

(7) Report leaking faucets and fixtures to building maintenance;

(8) Unplug equipment that drains energy when not in use; and

(9) Submit energy and water conservation measures and O&M suggestions to their local energy manager, facility manager, or energy POC.

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Chapter 2. Energy and Water Program Planning

1. Introduction. This chapter establishes planning requirements for the FAA Energy and Water

Management Program. Program planning is an important step to ensuring compliance with Federal legislation, EOs, and DOT policy. LOBs and SOs are responsible for achieving annual energy and water requirements, developing EMPs, and conducting budget planning.

2. Energy and Water Reductions. FAA energy and water reduction requirements are based on mandates established by Federal legislation, EOs, and DOT policy. The primary program drivers are the energy and water requirements summarized below. Specific requirements and associated FAA policy and roles and responsibilities are discussed in the appropriate chapters of this Order.

a. Energy Intensity. FAA must reduce building energy intensity in goal subject buildings by 25 percent through the end of FY 2025 (i.e., 2.5 percent per year), relative to a FY 2015 baseline (EO

13693 §3(a)(i)). Annual energy intensity reductions, relative to a FY 2015 baseline, must be achieved in accordance with the percentages specified in Table 2-1. Each LOB and SO responsible for the

O&M of buildings (FAA-owned buildings or leased buildings for which FAA pays the utility bill separately from the lease payment) is responsible for achieving the annual energy intensity reductions specified in Table 2-1, and working with AEE to clarify and refine the FY 2015 baseline in accordance with DOE guidance, as necessary.

Table 2-1. Annual Energy Intensity Reduction Requirements

Fiscal Year % Reduction

2016 2.5

2017 5

2018 7.5

2019 10

2020 12.5

2021 15

2022 17.5

2023 20

2024 22.5

2025 25

b. Greenhouse Gas (GHG) Emissions. FAA must meet the FY 2025 GHG emissions reduction requirements established by DOT, relative to a FY 2008 baseline (EO 13693 §2). Reducing energy intensity in buildings and increasing use of renewable energy (both of which are covered in this Order) will help FAA meet this requirement. AEE is responsible for coordinating the development of the GHG reduction requirements across FAA LOBs and SOs, and with DOT. In June

2015, DOT established the Scope 1 & 2 GHG reduction requirement as 35 percent reduction by FY

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2025, relative to a FY 2008 baseline, and the Scope 3 GHG emissions reduction requirement as 35 percent by FY 2025, relative to a FY 2008 baseline. FAA must also reduce fugitive emissions from buildings and equipment by at least 50 percent by FY 2020; and reduce emissions from industrial processes by at least 50 percent by FY 2020 (DOT Order 4352).

c. Potable Water Intensity. FAA must reduce potable water intensity 36 percent by FY 2025

(i.e., 2 percent per year), relative to a FY 2007 baseline (EO 13693 §3(f)(i)). In order to be considered on track with this requirement, annual potable water intensity reductions, relative to a FY 2007 baseline, must be achieved in accordance with the percentages specified in Table 2-2. FAA must also seek to identify, promote, and implement water reuse strategies that reduce potable water consumption. Each LOB and SO responsible for the O&M of facilities (FAA-owned facilities or leased facilities for which FAA pays the utility bill separately from the lease payment) is responsible for achieving the annual potable water intensity reductions specified in Table 2-2, and working with

AEE to clarify and refine the baseline in accordance with DOE guidance, as necessary.

Table 2-2. Annual Potable Water Intensity Reduction Requirements

2015 16

2016 18

2017 20

2018 22

2019 24

2020 26

2021 28

2022 30

2023 32

2024 34

2025 & Onward 36

d. Industrial, Landscaping, and Agricultural (ILA) Water. FAA must reduce ILA water consumption by 30 percent (i.e., 2 percent per year) by FY 2025, relative to a FY 2010 baseline (EO

13693 §3(f)(iii)). In order to be considered on track with this requirement, annual ILA water consumption reductions, relative to a FY 2010 baseline, must be achieved in accordance with the percentages specified in Table 2-3. Each LOB and SO responsible for the O&M of facilities (FAA-owned facilities or leased facilities for which FAA pays the utility bill separately from the lease payment) will establish, validate, and maintain its ILA water consumption baseline; and is responsible for achieving the annual ILA water consumption reductions specified in Table 2-3. To eliminate overlap and preclude the need to change FY 2007 potable water use baselines, LOBs/SOs that included ILA water consumption in their 2007 potable water baseline should continue to measure and track progress against the overall water intensity measure (EO 13693 Implementing Instructions Sec.

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III(B) citing Federal Agency Implementation of Water Efficiency and Management Provisions of EO

13514 Sec. 4.3). AEE and LOB and SO energy managers will work together to clarify and refine the baseline in accordance with DOE guidance, as necessary.

Table 2-3. Annual Industrial, Landscaping, and Agricultural (ILA) Water Consumption

Reduction Requirements

2015 10

2016 12

2017 14

2018 16

2019 18

2020 20

2021 22

2022 24

2023 26

2024 28

2025 & Onward 30

3. Annual Environmental Management Programs (EMP). In accordance with EMS procedures, AEE will develop and annually update the higher-tier energy and water EMPs. LOBs and SOs will develop and annually update energy and water EMPs for their respective organizations. The programs will detail how each organization’s portion of FAA’s overall energy and water management requirements will be met. The programs should include and address the following points:

a. Management and program strategies and timelines for achieving the stated objectives and targets;

b. Organizational roles and responsibilities for program implementation;

c. Methods to evaluate progress (progress indicators), consistent with the overall program metrics established by AEE;

d. Facilities that will be audited;

e. Energy and water conservation measures that will be implemented; and

f. Planned outreach campaigns/themes and activities planned for the year.

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4. Budget Planning. AEE, LOB and SO energy managers, program office project managers, and energy POCs will develop and submit budget requests for their respective organizations, consistent with processes established by DOT and FAA. In support of the National Energy Conservation Policy

Act (NECPA) §8255, LOBs and SOs will identify funds requested for compliance with this Order, and all applicable legal and regulatory requirements, and submit to Financial Services (ABA) as requested to support the annual budget process. This identification of funds will be done in accordance with Office of Management and Budget (OMB) and DOT guidance. Additionally, LOB and SO budgets for proposed construction of Federal facilities are required to comply with EO 13693 and the EO 13693 Implementing Instructions to ensure adherence to Federal sustainable green building requirements.

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Chapter 3. Energy and Water Conservation and Efficiency Projects

1. Introduction. This chapter establishes requirements for identifying and implementing energy and water efficiency and conservation projects at FAA facilities. The primary method for identifying and assessing these projects is through facility evaluations, which are to be completed in accordance with

Federal requirements. All projects, including those being pursued for reasons other than improving energy and water performance, should support the Agency’s overarching program goals identified within this Order. LOBs and SOs should implement these projects using direct appropriations, as well as alternative funding methods to meet energy and water requirements.

2. Facility Energy and Water Consumption Baseline. Facility managers or local energy managers must establish energy and water baselines for each of their facilities to assist in identifying and prioritizing projects during the planning process and evaluating the impact of implemented projects. To meet FAA energy, water, and facility requirements, LOBs and SOs must appropriately baseline energy and water usage, and identify and plan projects that align with the requirements set forth in this Order.

3. Energy-Efficient Building Equipment. Any FAA large capital energy or water investment in an existing building that is not a major renovation but involves replacement of installed equipment (e.g., heating and cooling systems), or involves renovation, rehabilitation, expansion, or remodeling of existing space, must employ the most energy- and water-efficient designs, systems, equipment, and controls that are life cycle cost-effective (EISA §434(a), amending 42 USC 8253(f)).

4. Covered Facilities and Energy and Water Evaluations. FAA will use energy and water evaluations to help identify potential projects. FAA must conduct energy and water evaluations of facilities that meet DOE’s most recent criteria for “covered facilities,” as required by EISA or other prevailing legislation. Covered facilities include those that constitute at least 75 percent of an agency’s facility energy use (EISA §432, amending 42 USC §8253(f)(3)). For the purposes of defining FAA’s covered facilities, LOBs and SOs that are responsible for facilities (e.g., ANG-E, AMC, ATO, AVS, and AFN) must each identify facilities in their organization that account for 75 percent of their energy use and conduct evaluations of those facilities. Evaluations must be conducted by qualified personnel and include specific activities in accordance with DOE guidance.

a. Evaluation Details. FAA requires LOBs and SOs responsible for facilities to conduct energy and water evaluations of approximately 25 percent of their covered facilities annually in a manner that ensures an evaluation of each facility is performed every four years. Evaluations must be completed consistent with the requirements of EISA §432(f)(3), which includes identifying and assessing recommissioning measures (or, if the facility has never been commissioned, retro-commissioning measures) for each facility (EISA §432, amending 42 USC §8253(f)(3)). These evaluations enable effective project planning by identifying opportunities to improve energy and water performance through retrofits, O&M activities, and/or outreach/training to building occupants. Facility evaluations may be accomplished using a variety of mechanisms, such as, but not limited to:

(1) In conjunction with environmental assessments and other regularly scheduled plant or safety inspections, if conducted by qualified FAA personnel or contractors;

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(2) Independently by qualified FAA personnel or contractors;

(3) Through an energy savings performance contract (ESPC) or a utility energy service contract (UESC); or

(4) Through participation in utility energy efficiency programs.

b. Energy and Water Conservation Measure Implementation. Following the evaluation, each energy manager may implement any identified energy or water conservation measure that is life cycle cost-effective (EISA §432, amending 42 USC §8253(f)(4)(A)). If a life cycle cost-effective energy conservation measure (ECM) has a payback period of less than 10 years, it must be implemented (DOT Order 4353, 42 USC 8253(b)). In accordance with EISA requirements, energy managers must ensure the following for each implemented measure:

(1) Equipment, including building and equipment controls, is fully commissioned at acceptance to be operating at design specifications;

(2) A plan for appropriate O&M and repair of the equipment is in place at acceptance and is followed;

(3) Equipment and system performance is measured during its entire life to ensure proper

O&M and repair; and

(4) Energy and water savings are measured and verified.

c. Compliance Tracking System (CTS). Federal agencies are required to use DOE’s EISA

432 CTS to track and report EISA 432 compliance. LOB and SO energy managers must document their covered facilities in CTS, and ensure that these records are kept up-to-date. Updates should include, but are not be limited to:

(1) The annual footprint, including energy consumption and gross square footage;

(2) Completion of energy and water evaluations;

(3) Implementation of identified energy and water conservation measures; and

(4) Follow-up on implemented measures (EISA §432, amending 42 USC §8253(f)(7)(A)).

5. Historic Properties. When a project could affect a historic property (i.e., a building, structure, object or site included in or eligible for the National Register of Historic Places), FAA has responsibilities under Section 106 of the National Historic Preservation Act (NHPA) to consider the effect of its actions on those historic resources (NHPA §106 (54 USC 306108). 1 FAA review follows

1 Regulations implementing Section 106 of the NHPA define “effect” as “alteration to the characteristics of a historic property qualifying it for inclusion in or eligibility for the National Register.” 36 C.F.R. 800.16(i).

3-3 the process, as outlined in the implementing regulations at 36 CFR Part 800, and described in the

Section 106 Handbook: How to Assess the Effects of FAA Actions on Historic Properties under

Section 106 of the National Historic Preservation Act (June 2015), FAA Order 1050.1, Environmental

Impacts: Policies and Procedures, and the 1050.1F Desk Reference (July 2015). Because it is not always obvious whether a property meets the National Register criteria, the first step in this process is to initiate consultation with the State Historic Preservation Officer (SHPO) and/or Tribal Historic

Preservation Officer (THPO) who can help to identify historic properties as well as other individuals or organizations who may have an interest in the affected property. In addition, FAA must ensure that any activity affecting a Federally-owned historic property is carried out in accordance with Section

110 of the NHPA (54 U.S.C. 306101) which requires Federal agencies to manage and maintain these properties in a way that considers the preservation of their historic, archeological, architectural and cultural values, and should utilize best practices and technologies in retrofitting to promote long-term viability of the buildings (EO 13693 Implementing Instructions §III(D)(3)). The Federal Preservation

Officer in AEE-400 can provide additional guidance on this process.

6. Project Scoping and Combining Energy and Water Conservation Measures into Projects.

FAA LOBs and SOs may combine multiple energy and water conservation measures into one project at one or more facilities, as appropriate, to maximize overall project energy and water efficiency and economic savings. When bundling ECMs (e.g., in an ESPC or UESC), the entire bundle must be life -cycle cost- effective.

a. Life Cycle Cost Analysis (LCCA). The application of ECMs to existing Federal buildings must be made using life cycle cost methods and procedures (Federal Energy

Management Improvement Act of 1988, (42 USC 8254)). LCCA must be conducted using the

National Institute of Standards and Technology (NIST) Life Cycle Costing Manual for Federal Energy

Management Program (FEMP). FAA should consider energy cost savings and benefits while evaluating project options and opportunities. Potential savings categories to consider when conducting LCCA include, but are not limited to:

(1) Reduced energy (in Btu) usage;

(2) Reduced water (in thousands of gallons [kgal]) usage;

(3) Avoided utility demand charges; and

(4) Reduced O&M activities.

b. Payback Period and Bundling. Most facilities have the potential for energy and water conservation measures. Some of these opportunities may have payback periods of fewer than two years (e.g., lighting upgrades), while larger projects (e.g., chiller replacements) may have payback periods well over 10 years. If a life cycle cost-effective ECMs in a covered facility has a payback of less than 10 years, it must be implemented (DOT Order 4353, 42 USC 8253(b)).

LOB and SO energy managers or local energy managers may bundle energy and water conservation measures of varying paybacks into one project. More ECMs and greater facility improvements can be included when ECMs with longer term payback periods are bundled with and offset by ECMs with

3-4 shorter payoff terms. Energy managers should recognize that combining multiple measures into one project will minimize the disturbance time at the facility, may result in economies of scale, and may reduce contract and administrative burdens.

7. Financing Options. Projects can be financed through direct appropriations, alternative financing, or a combination of the two types.

a. Budget Justification. Funding and other resource requirements associated with the implementation of this Order must be justified and requested in accordance with existing FAA budgetary and fiscal processes.

b. Alternative Financing. LOB and SO energy managers may pursue the following alternative funding…