# Presentation: 717357

## Federal Sustainability:

- Energy, Transportation, and Environmental Management

- David Anderson
- Office of Management and Budget
- January 2006

## Agenda

- Requirements and Federal Performance
- Energy Management
- Transportation Management
- Environmental Management
- Managing for Results

**Notes:**
Thank Doug Faulkner, DOE Acting Assistant Secretary for Energy Efficiency and Renewable Energy, and his staff for compiling data for this presentation.

May want to mention that you will present new scorecards at the end of the presentation, and that you will defer questions on scorecard specifics to the next  session (workshop) facilitated by OMB staff.

Questions will probably arise on 
New scorecards
Possible rewriting of Executive Orders

## Major Goals Executive Order 13123

- Reduce energy consumption per ft2
- 30 percent in 2005 and 35 percent in 2010 relative to 1985 (standard buildings)
- 20 percent in 2005 and 25 percent in 2010 relative to 1990 (industrial and laboratory)
- Reduce petroleum use in facilities
- Increase use of renewable energy

**Notes:**
I’ll start by presenting the major requirements for energy management, then discuss the Federal government’s performance to date.

I’ll follow the same format for transportation and environmental management.

This slide shows the major goals of Executive Order 13123 on Efficient Energy Management.
[Walk through each requirement]

## New Requirements2005 Energy Policy Act

- Reduce energy consumption per ft2
- 2% per year 2006-2015 relative to 2003 (all buildings)
- Increase use of renewable energy
- 3% (2007), 5% (2010), 7.5% (2013)
- New buildings 30% more efficient than ASHRAE or IECC standards
- Electric metering in all buildings by 2012
- Mandatory procurement of EnergyStar® and FEMP-recommended products

**Notes:**
ASHRAE (ash’ ray) stands for American Society of Heating, Refrigeration, and Air conditioning Engineers.
IECC stands for International Energy Conservation Code.
FEMP stands for DOE’s Federal Energy Management Program

The ASHRAE standard applies to residential buildings.
The IECC applies to non-residential buildings.

## Federal Energy Reductions

- (EO 13123)

**Notes:**
Although the Federal Government as a whole did not meet the 2005 goal, we appear to be on track to meet the 2010 goal.

2005 Energy Policy Act goals are more aggressive and present new challenges for Federal agencies beginning in 2006.

## Federal Energy Reductions by Agency

**Notes:**
Good news:
Six agencies met the 30 percent reduction goal for 2005.
Several others came close with more than 27 percent.
Even though DOD’s efforts often help the Federal Government achieve goals as a whole, it is important that each individual agency contribute.

## Petroleum Use Reduction in Buildings

**Notes:**
U.S. Government reduced petroleum use in standard buildings and energy-intensive facilities by 69% compared to FY 1985.
Agencies through the years have shifted from heating oil and propane to electricity and natural gas.
The spike in petroleum-based fuels in 2001 is a result of an increase in the price of natural gas during that year which caused agencies to run their dual-fuel boilers on fuel oil or propane rather than the more expensive natural gas.
[36 trillion btus is equivalent to energy to heat roughly 277,000 homes for a year.] – not completely confident in this calculation.  Will verify.

## Slide 8

**Notes:**
The Government used renewable energy equivalent to 3.0% of its electricity use in 2005 (and exceeded the FEMP goal of 2.5% established under EO 13123).
Approximately 75 percent is from renewable energy purchases; the remainder from on-site generation.
The 2005 Energy Policy Act goal for 2007 is 3 percent.   The Federal government on the whole is there already, but individual agency performance varies.
As shown on Slide 4, the target increases to 5 percent in 2010 and 7.5 percent in 2013.

## Agenda

- Requirements and Federal Performance
- Energy Management
- Transportation Management
- Environmental Management
- Managing for Results

## Major Goals of Executive Order 13149 and EPACT

- 75% of new vehicle acquisitions must be alternative fuel vehicles (AFVs) (EPACT’92)
- 51% use of alternative fuels in AFVs (E.O. 13149)
- 100% use of alternative fuels in AFVs (EPACT’05)
- 3 mpg increase by 2005 compared with 1999 (EO 13149)
- 20 percent reduction in petroleum use in fleets by 2005 compared with 1999 (EO 13149)

## AFV Acquisitions

| Fiscal Year | AFVs Acquired | Total EPAct Credits** | Percent of Acquisition | Total AFV Inventory |
| --- | --- | --- | --- | --- |
| 2000 | 7,922 | 9,188 | 44% | 55,260 |
| 2001 | 8,798 | 9,736 | 45% | 58,242 |
| 2002 | 9,387 | 10,870 | 60% | 65,687 |
| 2003 | 20,387 | 22,848 | 86% | 80,852 |
| 2004 | 14,811 | 17,672 | 95% | 85,119 |
| 2005* | 16,947 | 20,275 | 109% | 95,068 |

- *Preliminary data; source: FAST database
- **Includes additional credits for biodiesel  use and dedicated AFVs (light duty, medium duty, and
-  heavy duty trucks )

**Notes:**
The Federal fleet surpassed the 75 % EPAct requirement by acquiring 109 percent (including credits) of its covered vehicles as AFVs in FY 2005.  
The first column show the total AFVs acquired in each fiscal year; the second column is the total credits earned for the year, including additional credits for biodiesel fuel use and the acquisition of dedicated AFVs that are eligible for multiple credits.  The third column shows the overall performance of the Federal Government by percentage of AFV acquisitions.
This is the third year in a row that the Federal Government has surpassed its EPAct AFV acquisition requirement.  
However, it’s important to note that the requirement applies to each agency, not the Federal government overall.  Some agencies have surpassed their requirements, while others have fallen short...see next slide...

## AFV Acquisitions by Agency

**Notes:**
The yellow line indicates performance of the entire Federal government.
14 agencies met the 75 percent goal.

CSOS stands for Court Security Officer ___?

## Using Alternative Fuel

- Agencies used 6.3 million gasoline gallon equivalents in 2005 (+41% vs. 2004)
- Alternative fuel use increased each year since 2000
- Despite increases, no agency reached 51 percent goal (EO 13149)
- Some data suspect – agencies need to improve data quality

**Notes:**
Agencies increasing use of alternative fuels, but falling short of 51 percent goal.
Data suggests alternative fuel use in AFVs government-wide was around 6 percent. 
U.S. Postal Service accounts for about half of all alternative fuel use
Many AFVs are flex-fuel, and agencies are filling up with gasoline
Compliance low in part because of limited infrastructure

## Improving Fuel Economy

**10 out of 17 agencies** met the goal of a 3 mpg improvement in 2005 vs. 1999
**16 of 17 agencies **have increased the fuel economy of their acquisitions over 1999

## Reducing Petroleum Use

- 15 of 19 agencies have reduced petroleum use compared with 1999
- None of the agencies approach the 20 percent reduction goal required by 2005

**Notes:**
Preliminary data suggests government-wide petroleum use actually increased by 1.2% in 2005 vs. 1999.

DOE is concerned with data quality.

Even if DOE’s concerns are addressed, they believe it’s clear we would not be close to the 20 percent reduction goal.

## Agenda

- Requirements and Federal Performance
- Energy Management
- Transportation Management
- Environmental Management
- Managing for Results

## Major Goals of Executive Orders 13101, 13148 and MOUs

- Submit EMS protocol for all facilities/meet EO requirements (EO 13148)
- Require acquisition of green products (EO 13101/multiple statutes)
- Institute sustainability program for green buildings (MOU)
- Promote electronic stewardship (MOU)

**Notes:**
The requirements/standards for success on the Environmental Management Scorecard are based on 
multiple statutory and Executive Orders
goals and objectives from the new MOU on sustainability, 
last year’s MOU on electronic stewardship 
an April 2003 commitment from the President’s Management Council to improve compliance management (previously known as the PMC compliance initiative.)

Although the standards for this scorecard are more general than the others which have specific attainable metrics, Ed Pinero, the Federal Environmental Executive and his staff have agreed to work closely with individual agency environmental executives (AEEs) to develop plans and a path forward for getting to green on both progress and status.

## Green Procurement

***APP(recycled)17agencies**
****GPP (APP+)   8 agencies**
**No APP ****	****    4 agencies**
- *Affirmative Procurement Program (APP) covers recycled content products
- **Green Procurement Plan (GPP) includes recycled plus at least one other green product preference.

**GPPs should preference:**
- Recycled Content (RCRA/EO13101)
- Energy Star/Efficient (EPACT’05/EO13123)
- Biobased (FSRIA/EO13101)
- Alternative Fuels (EPACT’92 &’05/EO13149)
- Non-Ozone Depleting Substances (CAA/EO13148)
- Environmental Preferable (EO13101)
- Priority Chemicals (EO13148)

**Notes:**
17 federal agencies have affirmative procurement programs in place for recycled content products, which have been required since 1984.  
8 of those agencies expanded their APPs to include other green products, such as energy efficient, environmentally preferable or biobased.  
4 agencies still don’t have an APP in place (USDA, Ed, HHS, and Labor)

The FARM bill of 2000 extended the requirements for a mandatory preference program to biobased products and EPACT’05 extended them to EnergyStar and energy efficient products.
Ideally, we (OFPP-OMB/OFEE) recommend that agencies develop and expand APPs to include all seven (7) of the green product and service areas listed.

## Agenda

- Requirements and Federal Performance
- Energy Management
- Transportation Management
- Environmental Management
- Managing for Results

**Notes:**
I will now describe principles for managing for results, and then distribute the much anticipated new scorecards
I will defer  questions on scorecard specifics to the next  session (workshop) facilitated by OMB staff.
[Questions may arise on 
New scorecard metrics
Possible rewriting of Executive Orders to:
Consolidate them
Bring the goals in alignment with provisions in 2005 Energy Policy Act and other legislation (e.g., Farm bills)]

## Managing for Results

- Achieving results requires:
- A clear definition of success for every program and activity;
- A clear action plan for achieving success;
- A system of accountability to ensure programs perform as promised.

**Notes:**
OMB has been working with all Federal agencies to focus attention and achieve results on management initiatives.
Clay Johnson often says that there are 3 key elements to success
Through the new scorecards, we are emphasizing these key elements.

## Management Scorecards

**Explanation of Status Scores**
**GREEN**—meets all Standards for Success
**YELLOW**—achieved intermediate levels of performance in all the criteria
**RED**—has any one of a number of serious flaws
**Explanation of Progress Scores**
**GREEN**—Implementation is proceeding according to agreed upon plans
**YELLOW**—Slippage in implementation schedule, quality of deliverables, or other issues requiring adjustment in order to achieve scheduled goals
**RED**—Initiative is in serious jeopardy.  Unlikely to realize objectives absent significant management attention and intervention.

**Notes:**
Scorecards I will distribute momentarily meet the principals I just described.

The new scorecards follow the format of scorecards used for the President’s Management Agenda.  

Like PMA scorecards, the new scorecards have specific criteria for achieving Yellow and Green.

Also like PMA scorecards, there are general definitions for Status and Progress color-coded scores, shown on this slide. 

[Describe each one as time permits...]

## Conclusion

- Great progress to date
- Challenging goals require continued progress
- New scorecards will help agencies focus on managing for results
- OMB / OFEE / DOE EPA are here to help

**Notes:**
After presentation, distribute drafts and explain that agencies have until February 10 to review, comment, and complete “Agency action” bullets

OMB will distribute scorecards to agencies electronically by the end of the week with instructions on how to submit comments.