Executive Order 13123:

Greening the Government Through

Efficient Energy Management

Guidance Documents for Federal Agencies

December 2000

Federal Energy Management Program

Office of Energy Efficiency and Renewable Energy

U.S. Department of Energy
Executive Order 13123:

Greening the Government Through

Efficient Energy Management

Guidance Documents for Federal Agencies

December 2000

To order a copy of this Guidance Report,

call the Energy Efficiency and Renewable Energy Clearinghouse

at 1-800-363-3732 or view the report online

at www.eren.doe.gov/femp/aboutfemp/guidances.html.
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

Contents

Implementation Guidance for Executive Order 13123.................................. 1

Criteria for Exempting Facilities from the Goals of

Executive Order 13123 and Guidance for Reporting Exemptions................ 2

Guidelines: Executive Order 13123, Section 203

Performance Goals for Industrial, Laboratory, Research,

and Other Energy-Intensive Facilities............................................................. 5

Guidance on Life-Cycle Cost Analysis Required by

Executive Order 13123 .................................................................................... 9

Guidance for Providing Credit Toward Energy Efficiency

Goals for Cost-Effective Projects Where Source Energy Use

Declines But Site Energy Use Increases ....................................................... 12

Guidance on Federal Government Renewable Energy Goal ........................ 16

Guidance for Counting Renewable Energy Projects and

Green Energy Purchases Toward Progress in Reaching

Greenhouse Gas and Energy Reduction Goals; and Guidance

for Estimating Greenhouse Gas Emissions Attributable to

Facility Energy Use ........................................................................................ 18

Guidance to Federal Agencies for Determining Baseline

Water Usage ................................................................................................... 25

Guidance to Establish Water Efficiency Improvement Goal

for Federal Agencies ...................................................................................... 28

Guidance for Preparing the Executive Order 13123

Implementation Plan for FY 2001 ................................................................. 30

GSA’s Model Lease Provisions Required Under Section 505(d) .................. 32

The “Whole Building Design Guide” Meets Requirements Stated

in Executive Order 13123 Guidance Documents ......................................... 33

i
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

Executive Order 13123, Greening the Government through Efficient Energy

Management, calls for Federal agencies to improve the energy efficiency of their

buildings, promote the use of renewable energy, and reduce greenhouse gas

emissions associated with energy use in their buildings, among other energy-related

requirements. Signed in June of 1999, Executive Order 13123, also directed the

Department of Energy to work with other Federal agencies to develop a variety of

guidance, criteria, tools, and other information to assist agencies in implementing the

provisions of the Order. This booklet packages these guidance documents into one

useful reference source. These documents are also available electronically on

FEMP’s Web site www.eren.doe.gov/femp. Executive Order 13123 can be found in

its entirety at www.eren.doe.gov/femp/aboutfemp/exec13123.html.

These guidance documents were drafted by special working groups convened by the

Interagency Energy Management Task Force, which is chaired by FEMP. The

working groups contributing to the Executive Order implementation guidance

documents were:

• Energy Intensive Facilities Working Group,

• Project Financing Working Group,

• Renewable Energy Working Group,

• Reporting Working Group,

• Technical Tools/Training Working Group,

• Utility Markets Working Group, and

• Water Conservation Working Group.

FEMP would like to thank all of the agency representatives on the working groups

for their efforts. The resulting guidance provide a strong framework for

implementation of energy efficiency, renewable energy, and water conservation

policy in Federal facilities well into the future.

An additional guidance document is included in this booklet: Guidance for Preparing

the Executive Order 13123 Implementation Plan for FY 2001. This outline was developed

by the Office of Management and Budget in collaboration with FEMP and the

Interagency Energy Management Task Force. These plans describe how agencies

should plan to apply strategies identified in the Executive Order to energy efficiency

projects and activities in the coming year.

See page i for a listing of all the documents contained in this booklet.

Beth Shearer, Director

Federal Energy Management Program

Implementation Guidance for Executive Order 13123

1
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

Criteria for Exempting Facilities from the Goals of

Executive Order 13123 and Guidance for Reporting Exemptions

December 8, 1999

Section 502(b) of Executive Order 13123 requires DOE to “establish criteria for determining which facilities are exempt

from the Order. . .(and) provide guidance for agencies to report proposed exemptions.” This guidance was developed by

the Reporting Working Group of the Interagency Energy Management Task Force. The technical contact for more

information is Rick Klimkos, FEMP, 202-586-8287.

These criteria and accompanying guidance fulfill

the requirement under Section 502(b) of Executive

Order 13123. The Secretary of Energy, in

collaboration with other agency heads, is required

to “establish criteria for determining which

facilities are exempt from the order. In addition,

DOE must provide guidance for agencies to report

proposed exemptions.” These criteria and

guidance will be incorporated into the annual DOE

Reporting Guidance for the Annual Report to

Congress on Federal Government Energy Management

for FY 2000. In subsequent years, these criteria

will be subject to change as implementation issues

arise and are addressed.

Three Categories of Buildings Under Executive Order

13123

Executive Order 13123 establishes three categories

of Federal buildings and facilities pertaining to

compliance with the goals and other requirements

of the Order. These categories are:

1) Standard buildings/facilities subject to

Section 202, Energy Efficiency Improvement

Goals: “Through life-cycle cost-effective

measures, each agency shall reduce energy

consumption per gross square foot of its

facilities, excluding facilities covered in

Section 203 of this order, by 30 percent by

2005 and 35 percent by 2010 relative to

1985.”

2) Industrial, laboratory, research, and other

energy-intensive facilities subject to the

goals of Section 203, Industrial and

Laboratory Facilities: “Through life-cycle

cost-effective measures, each agency shall

reduce energy consumption per square foot,

per unit of production, or per other unit as

applicable by 20 percent by 2005 and 25

percent by 2010 relative to 1990.”

3) Exempt facilities as defined under Section

704: “a facility. . .for which an agency uses

DOE-established criteria to determine that

compliance with the Energy Policy Act of

1992 or this order is not practical.”

Standard buildings/facilities include, but are not

limited to, the following types of buildings:

• Office buildings,

• Retail/stores,

• Schools,

• Churches/chapels,

• Gymnasiums,

• Libraries,

• Clinics,

• Warehouses,

• Jails, and

• Multi- and single-family residences.

The types of buildings that agencies may classify as

either standard buildings or as industrial,

laboratory, research, or energy-intensive

facilities include, but are not limited to:

• Laboratories,

• Research hospitals,

continued on next page

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EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

• Computer centers, and

• Bulk document handling/processing

facilities.

Many facilities that house energy intensive

operations offer great opportunities for saving

large amounts of energy. In many cases,

investments in energy efficiency measures can pay

off particularly quickly in these types of facilities.

Therefore, it may benefit the agency to keep these

buildings in the standard buildings category to

help the agency meet the 30 and 35 percent

reduction goals.

Under the Order, industrial facilities should be

classified as energy-intensive and be subject to the

goals of Section 203. Section 706 defines

“industrial facility” as “any fixed equipment,

building, or complex for production,

manufacturing, or other processes that uses large

amounts of capital equipment in connection with,

or as part of, any process or system, and within

which the majority of energy use is not devoted to

the heating, cooling, lighting, ventilation, or to

service the water heating energy load requirements

of the facility.” DOE understands that heating,

cooling, ventilating, and water heating functions

may also be an integral part of the industrial

process. Therefore, “heating, cooling, lighting,

ventilation, or to service the water heating energy

load requirements” should be interpreted in this

definition as referring to normal (non-process)

energy loads for occupancy requirements.

Criteria for Exempting Facilities from Executive Order

13123 Goals

The following facilities may be exempted from

Section 201, Greenhouse Gas Reduction Goal,

Section 202, Energy Efficiency Improvement Goals

for standard buildings and facilities, and the goals

of Section 203, Industrial and Laboratory Facilities

of Executive Order 13123.

CRITERIA FOR EXEMPTING FACILITIES FROM THE GOALS OF EXECUTIVE ORDER 13123 AND GUIDANCE FOR

REPORTING EXEMPTIONS

continued from previous page

• Buildings and facilities in which it is

technically infeasible to implement energy

efficiency measures or where conventional

performance measures are rendered

meaningless by an overwhelming proportion of process-dedicated energy. For these

exemptions, a finding of impracticability

must be approved by the Department of

Energy as outlined in Section 543(c) of the

National Energy Conservation Policy Act, as

amended by the Energy Policy Act of 1992.

Buildings and facilities where it is technically

infeasible to implement energy efficiency

measures, may be exempted. Agencies must

provide a justification that explains why it is

technically infeasible. Facilities with energyintensive processes where agencies can

clearly demonstrate that process-dedicated

energy overwhelms other building energy

consumption, and the fluctuation in the

operation of the process would significantly

impact meeting the aforementioned goals of

the Executive Order, may be exempted.

Agencies must provide a justification that

explains why process-dedicated energy in

these facilities may impact the Agencies

ability to meet the goals.

The finding of impracticability must be submitted

to the DOE Assistant Secretary for Energy

Efficiency and Renewable Energy for approval and

may be renewed in subsequent years by providing a

statement to DOE declaring no significant change

in building status. For buildings where exemptions

are granted, agencies should undertake energy

audits and are strongly encouraged to implement

all life-cycle cost-effective measures per the

recommendation of the audit.

• Structures such as outside parking garages

which consume essentially only lighting

continued on next page

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EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

energy, yet are classed as buildings. While

great opportunity exists for energy efficiency

measures in such structures, the relatively

lower energy use per square foot of the

unconditioned space should not be counted

as “building” space. Energy used for airport

and street lighting not directly associated

with a building may also be considered

exempt from goals.

• Buildings where energy usage is skewed

significantly due to reasons such as:

buildings entering or leaving the inventory

during the year, buildings down-scaled

operationally to prepare for

decontamination, decommissioning and

disposal, and buildings undergoing major

renovation and/or major asbestos removal.

These buildings may be exempted only

during the fiscal year when energy usage is

skewed. Energy efficiency measures should

be considered for down-scaled buildings

awaiting disposal if the measures pay for

themselves prior to building demolition.

• Federal ships that consume “Cold Iron

Energy,” (energy used to supply power and

heat to ships docked in port) and airplanes

or other vehicles that are supplied with

utility-provided energy.

Guidance for Agencies to Report Proposed Exemptions

Although buildings found exempt according to the

previously-stated criteria are not subject to the

requirements of Sections 202 and 203 of Executive

Order 13123, DOE will continue to collect energy

consumption data for these buildings under the

new reporting category of “Exempt Buildings.”

This ensures that accurate reporting on overall

Federal energy consumption is maintained.

Agencies will report energy consumption and costs

under these four categories in FY 2000:

1) Buildings & Facilities,

2) Industrial, Laboratory, Research or EnergyIntensive Facilities,

CRITERIA FOR EXEMPTING FACILITIES FROM THE GOALS OF EXECUTIVE ORDER 13123 AND GUIDANCE FOR

REPORTING EXEMPTIONS

continued from previous page

3) Exempt Facilities, and

4) Vehicles & Equipment.

Agencies should report aggregate energy

consumption in exempt buildings for each energy

type in the reporting units listed below:

Electricity (Megawatt Hours)

Fuel Oil (Thousands of Gallons)

Natural Gas (Thousand Cubic Feet)

LPG/Propane (Thousands of Gallons)

Coal (Short Ton)

Purchased Steam (Billion Btu)

Other (Billion Btu)

Each agency will submit to DOE its aggregate

annual costs for each fuel type consumed in its

exempt buildings.

Each agency shall also submit to DOE a list of the

buildings/facilities exempted from the

requirements of the Order. For each building or

facility listed, the agency shall provide the gross

square footage of the building and the justification

for exclusion. This information must also be

included in the agency’s annual report to the

President. Section 303 (b) of Executive Order

13123 states that “each agency’s annual report to

the President shall. . .include a listing and

explanation of exempt facilities.”

Buildings with Fully-Serviced Leases

DOE assumes that agencies will not list or report

energy consumption in buildings with fullyserviced leases, where the landlord is responsible

for paying energy bills. In these cases, the agency

has little control over building operations and

cannot implement energy efficiency measures.

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EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

Guidelines:

Executive Order 13123, Section 203 Performance Goals

for Industrial, Laboratory, Research, and

Other Energy-Intensive Facilities

December 2, 1999

These guidelines fulfill the requirements of Section 502(a) and Section 502(c) of Executive Order 13123. Section 502

directs DOE to “issue guidelines to assist agencies in measuring energy per square foot, per unit of production, or other

applicable unit in industrial, laboratory, research, and other energy-intensive facilities.” Section 502(c) directs DOE to

“develop guidance to assist agencies in calculating appropriate energy baselines for previously exempt facilities and

facilities occupied after 1990 in order to measure progress toward goals.” This guidance was developed by the Reporting

Working Group of the Interagency Energy Management Task Force. The technical contact for more information is Rick

Klimkos, FEMP, 202-586-8287.

Overview of Requirements

Section 203 of Executive Order 13123, Industrial

and Laboratory Facilities, requires that “through

life-cycle cost-effective measures, each agency shall

reduce energy consumption per square foot, per

unit of production, or per other unit as applicable

by 20 percent by 2005 and 25 percent by 2010

relative to 1990. No facilities will be exempt from

these goals unless they meet new criteria for

exemptions, as issued by DOE.” These guidelines

will be incorporated into the annual DOE

Reporting Guidance for the Annual Report to

Congress on Federal Government Energy Management

for FY 2000. In subsequent years these guidelines

will be subject to change as implementation issues

arise and are addressed.

This requirement builds upon goals previously

created under Executive Order 12902 for

industrial facilities by mandating a further

reduction target for 2010, establishing a

framework for measuring performance, and

expanding the types of facilities covered to include

laboratories, research and other energy-intensive

facilities. Exemptions from performance goals

under Executive Order 13123 are also more strict

than those under the previous Executive Order

and the National Energy Conservation Policy Act

(NECPA) as amended by the Energy Policy Act of

1992. These exemption criteria are addressed

separately in the Department of Energy’s guidance

to agencies required under Section 502(b) of

Executive Order 13123.

These Guidelines fulfill two requirements under

Executive Order 13123. These are that the

Secretary of Energy, in collaboration with other

agency heads, shall:

• Issue guidelines to assist agencies in

measuring energy per square foot, per unit

of production, or other applicable unit in

industrial, laboratory, research, and other

energy-intensive facilities (Section 502(a));

and

• Develop guidance to assist agencies in

calculating appropriate energy baselines for

previously exempt facilities and facilities

occupied after 1990 in order to measure

progress toward goals (Section 502(c)).

continued on next page

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EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

Measuring Performance Toward the Goals for

Industrial/Laboratory/Research/Other EnergyIntensive Facilities

Three Options for Measuring Performance

Under the framework established by the Executive

Order, agencies should select from three main

options for measuring progress toward the 20

percent and 25 percent goals for industrial/

laboratory/research/other energy-intensive

facilities. The options are:

1) Use a rate-based measure of annual energy

consumed per number of production units

produced in that same year (Btu/production

unit). This approach offers the best measure

of energy efficiency performance for

industrial facilities in that energy

consumption is normalized to reflect actual

output.

2) Use a rate-based measure of annual energy

consumed per number of other applicable

units for that same year (Btu/performance

unit). This option may be more useful for

measuring performance of laboratory,

research, and other energy-intensive

facilities. Applicable units having a valid

correlation with the energy-intensive process

being measured might include:

- the number of experiments performed

(Btu/experiment);

- the weight of product produced (Btu/

ton);

- the number of customers served (Btu/

customers served);

- the cash value of the product produced

(Btu/$); and

- manpower associated with the process

(Btu/labor hours expended).

GUIDELINES: EXECUTIVE ORDER 13123, SECTION 203 PERFORMANCE GOALS FOR INDUSTRIAL, LABORATORY,

RESEARCH, AND OTHER ENERGY-INTENSIVE FACILITIES

continued from previous page

3) Use Btu-per-gross-square-foot (Btu/GSF) as

a broad indicator of energy efficiency in

industrial/laboratory/research/other energyintensive buildings. This approach has

shortcomings as a measure of performance

where production levels fluctuate from year

to year, but, it offers the advantage of

allowing numerous facilities with varying

functions to be easily aggregated into an

agency-wide performance measure. If this

approach is used, supporting documentation

(and savings estimates) of energy efficiency

measures, including projects undertaken

may be provided to demonstrate compliance

with the Order.

Aggregating Data to Determine Agency-Wide

Performance

Agencies can apply any one of these options at the

facility level, provided the square footage,

production, or performance data is available for

the appropriate reporting period. The difficulty

arises, however, when attempting to aggregate the

output-based measures used under Options 1 and

2 in order to determine agency-wide performance.

Many agencies undertake many different types of

operations and the range of energy consumed to

produce one unit of output can vary widely

depending on the operation. In cases where

operations vary so widely in energy intensity

that production units or performance units are

not appropriate measures, or in cases when this

output data is unavailable, the Btu/GSF measure

under Option 3 will have to be used by default.

In these cases, an agency may wish to establish

separate performance indicators for each process

operation and report these separately to DOE

along with the aggregated Btu/GSF. In this way,

the agency can be credited with progress in

individual operations which may not be reflected

in the overall Btu/GSF progress.

continued on next page

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EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

Selecting Which Option to Use

If an entire agency has only one type of industrial

operation manufacturing a sole product,

production units are definitely the most

appropriate measure of output and Option 1

should be used. Multiple operations within an

agency can be combined under Option 1 into an

agency-wide measure by summing the production

units for all operations and dividing the total into

the combined energy consumption of all

operations. Agencies should exercise caution,

however, if the range of energy consumed to

produce one unit of output varies widely from one

operation to another. In these instances,

fluctuation in production levels of the more

energy-intensive operations will skew the overall

performance measure.

In cases where the number of production units

produced vary widely between different operations

at an agency, output might best be measured with

an Option 2 performance unit, such as tons, in

order to accommodate the different types of goods

or hardware produced.

A key consideration when choosing a measure of

output is availability of data. Under Options 1 and

2, information on product output should be

available for the FY 1990 reporting period

coinciding with the energy consumed in order to

establish a meaningful baseline. This is discussed

in more detail in the next section.

Calculating Appropriate Energy Baselines for

Previously Exempt Buildings and Facilities

Baseline Development for Agencies with Available

Consumption Data

Some agencies have already reported to DOE

energy consumption for industrial, laboratory,

research and other energy-intensive facilities that

were formerly considered “Excluded Buildings.”

(“Excluded Buildings” in this case refers to

exclusion from the 30- and 35-percent Btu/GSF

reduction goal for ordinary buildings and

facilities.) In these cases, the Btu side of the

performance measure ratio is already known.

DOE’s database contains consumption data for the

following agencies for the FY 1990 base year under

the former “Excluded Buildings” category:

Agency Billion Btu

Defense 39,209.1

Energy 11,649.9

NASA 7,135.0

Transportation 3,064.0

Agriculture 2,204.2

U.S. Information Agency 1,406.9

General Services Admin. 160.6

For these agencies, all that is needed to establish a

baseline is a statement on the type of performance

measure that will be used and the gross square

footage, production unit, or performance unit

associated with the consumption for that period.

This number is then divided into the consumption

figure to calculate the baseline Btu/GSF, Btu/

production unit, or Btu/other performance unit

ratio.

Output/Performance Data Unavailable for FY 1990

Base Year

If output or performance data comporting with

energy consumption is not available for any year,

the agency should consider by default the Btu/GSF

performance measure. If output or performance

data is available for later years but not for the FY

1990 base year, then an agency should estimate

output or performance for FY 1990. This can be

done by taking the performance ratio (Btu/output

or performance) from the earliest available year

after 1990 and applying it to the known energy

consumption for FY 1990. For example, in 1992,

an agency’s performance ratio for energy-intensive

facilities was 1,250,000 Btu/production unit. In

1990, the agency’s energy-intensive facilities used

GUIDELINES: EXECUTIVE ORDER 13123, SECTION 203 PERFORMANCE GOALS FOR INDUSTRIAL, LABORATORY,

RESEARCH, AND OTHER ENERGY-INTENSIVE FACILITIES

continued from previous page

continued on next page

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EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

50 billion Btu, but the number of production units

was unknown. Production units are estimated for

FY 1990 as follows:

50,000,000,000 Btu ÷ 1,250,000 Btu/prod. unit =

40,000 production units

This approach essentially calculates a baseline

based on the performance ratio from the year

closest to FY 1990. Thus, in the absence of FY

1990 data elements, agencies may use known data

from later years to establish their baseline. Any

procedure used to estimate an agency’s baseline

must be fully justified and documented the

agency’s report to DOE.

Non-Energy-Intensive Buildings Previously Reported as

“Excluded Buildings”

It is possible that some buildings were improperly

excluded from the ordinary building energy

baseline. In addition, under the stricter exemption

criteria of the new Executive Order, previously

exempt buildings need to be re-examined. If a

building that was previously excluded is now

added to the ordinary building inventory, the

baseline needs to be adjusted to reflect this.

Returning non-energy-intensive facilities to the

ordinary building inventory involves re-submitting

Annual Energy Management Data Reports to DOE

(including consumption by fuel type in specified

reporting units, costs by fuel type, and gross

square footage). These reports should be resubmitted for all prior years back to the FY 1985

base year, adding the fuel-specific data for the

formerly-excluded buildings to the existing data

under the ordinary Buildings/Facilities category.

DOE’s Federal Energy Management Program

office can provide assistance with this data

reallocation.

GUIDELINES: EXECUTIVE ORDER 13123, SECTION 203 PERFORMANCE GOALS FOR INDUSTRIAL, LABORATORY,

RESEARCH, AND OTHER ENERGY-INTENSIVE FACILITIES

continued from previous page

1985 Base Year Adjustments for Industrial/Laboratory/

Research/Other Energy-Intensive Facilities

Agencies should ensure that the energy

consumption, costs, and GSF data for Industrial/

Laboratory/Research/Other Energy-Intensive

Facilities are, in fact, excluded from the ordinary

building baseline. This is to ensure that the data

used to measure progress toward the 30- and 35-

percent reduction goals are not skewed. In other

words, to avoid double counting and incorrect

measurement of performance, agencies must

recalculate their 1985 baseline to only include

ordinary buildings (i.e., office buildings, residences,

etc.). Likewise, energy and square footage data for

all subsequent years must be separated into either

the industrial/laboratory/research/other energyintensive facilities category or the ordinary

buildings category. In the very least, the energyintensive facility data needs to be isolated and

removed from ordinary buildings data for FY 1985

to ensure consistent reporting for the ordinary

building goals.

8
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

Guidance on Life-Cycle Cost Analysis

Required by Executive Order 13123

April 26, 2000

Section 502(d) of Executive Order 13123 directs DOE to “issue guidance to clarify how agencies determine the life-cycle

cost for investments required by the Order, including how to compare different energy and fuel options and assess the

current tools.” This guidance was developed by a small working group comprised of representatives from the National

Institute of Standards and Technology and FEMP. The technical contact for more information is Ted Collins, FEMP,

202-586-8017. The length of this guidance document necessitates re-printing only the Executive Summary. To read the

full text, see www.eren.doe.gov/femp/aboutfemp/pdfs/lifecycleguidance.pdf.

Executive Summary

Section 401 of Executive Order 13123 requires

that “Agencies shall use life-cycle cost analysis in

making decisions about investments in products,

services, construction, and other projects to lower

the Federal Government’s costs and to reduce

energy and water consumption...”

The purpose of this guidance is to “clarify how

agencies determine the life-cycle cost for

investments required by the Order, including how

to compare different energy and fuel options and

assess the current tools” (Section 502(d)); and

“assist agencies in ensuring that all project cost

estimates, bids, and agency budget requests for

design, construction and renovation of facilities are

based on life-cycle costs.” (Section 505(a))

Definition of Life-Cycle Costs

Section 707 of Executive Order 13123 defines lifecycle costs as “...the sum of present values of

investment costs, capital costs, installation costs,

energy costs, operating costs, maintenance costs,

and disposal costs over the life-time of the project,

product, or measure.”

Life-cycle cost analysis (LCCA) is an economic

method of project evaluation in which all costs

arising from owning, operating, maintaining, and

disposing of a project are considered important to

the decision. LCCA is particularly suited to the

evaluation of design alternatives that satisfy a

required performance level, but that may have

differing investment, operating, maintenance, or

repair costs; and possibly different life spans.

LCCA can be applied to any capital investment

decision, and is particularly relevant when high

initial costs are traded for reduced future cost

obligations.

Scope of Guidance

This guidance summarizes the life-cycle cost (LCC)

requirements of Executive Order 13123. Decisionmakers should be aware that the use of LCCA is

required by law and Executive Order and that

relevant LCC procedures and tools are well

developed and have been supported by the

Department of Energy’s Federal Energy

Management Program (FEMP) and other agencies

for over 20 years. This guidance provides a

discussion of LCCA that combines generic presentvalue analysis with the LCCA regulatory criteria

(10 CFR 436A) promulgated by FEMP. These

criteria apply specifically to energy and water

conservation and renewable energy projects in

Federal buildings.

Products, Services, and Other Projects Covered by

Executive Order 13123

The projects, products, services, construction, and

other projects mentioned in Executive Order

13123 that are to be evaluated using LCCA,

include but are not limited to the following (all are

subject to LCC criteria in 10 CFR 436A):

continued on next page

9
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

• Energy and water conservation, and

renewable energy projects in Federal

buildings, industrial facilities, and

laboratories;

• Energy savings performance contracts and

utility contracts and other alternative

financing contracting mechanisms;

• Bundling of energy efficiency products with

renewable energy products and retirement

of inefficient equipment on an accelerated

basis;

• ENERGY STAR and other energy-efficient

products, strategies, and tools; including

sustainable building design, model lease

provisions, industrial facility efficiency

improvements, and off-grid generation;

• Electricity use; and

• Mobile equipment.

Evaluation of ESPCs and Utility Contracts

The general principles of LCCA also apply to the

evaluation of projects considered for alternative

financing through an Energy Savings Performance

Contract (ESPC) or a Utility Contract (UC). LCCA

can be used to compare the costs of the existing

equipment over a given time period with the costs

over the same time period of an energy

conservation measure (ECM) proposed by an

energy service company. The costs of performing a

feasibility study, setting up and administering the

contract, and financing the project through the

energy service company can all be included in the

LCCA. LCCA allows the analyst to compare the

life-cycle costs of financed ECMs with those of

agency-funded ECMs, the latter implemented

either immediately or in a future year.

Assumptions and requirements regarding

financing-related input data, study periods, and

inflation treatment need to be considered.

GUIDANCE ON LIFE-CYCLE COST ANALYSIS REQUIRED BY EXECUTIVE ORDER 13123

continued from previous page

Bundling of Energy Efficiency Projects

Section 401 of Executive Order 13123 states that

“Where appropriate, agencies shall consider the

life-cycle costs of combinations of projects,

particularly to encourage bundling of energy

efficiency projects with renewable energy projects.

Agencies shall also retire inefficient equipment on

an accelerated basis where replacement results in

lower life-cycle costs.”

Individual energy conservation measures should

be bundled together to optimize energy, cost, and/

or environmental benefits of a project. Renewable

energy measures and other measures that save

great amounts of energy, improve energy-related

infrastructure, reduce air pollution, or reduce

greenhouse gas emissions may be bundled with

other ECMs as long as the overall project is lifecycle cost effective. All items in the bundle must be

complementary, i.e., an integral part of the project,

and no single ECM should be significantly costineffective. Furthermore, energy managers should

take an integrated systems approach when defining

the scope of a building retrofit or other energyrelated project. In many cases, a decision about one

ECM will directly affect the scope or type of other

ECMs.

Life-Cycle Cost for Energy-Using Products

When purchasing energy-using products, agencies

should perform an LCCA to assure that they are

making a cost-effective selection. Pursuant to the

FAR Section 23.704, agencies can purchase costeffective energy-efficient products even if the first

cost is higher than a less efficient product.

Basis for LCCA Guidance

This guidance does not supersede agency practices

that are prescribed by or pursuant to law,

Executive Order, or other relevant documents. It

continued on next page

10
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

is meant to assist agencies in conducting life-cycle

cost analyses of investments in products, services,

construction, and other projects. The methodology

is explained in the context of energy and water

conservation and renewable energy projects in

federal buildings according to 10 CFR 436A, but it

is applicable to any products, services, and other

projects where future operational savings are

traded off against higher initial investment costs.

The LCC methodology and procedures of 10 CFR

436A (as explained in NIST Handbook 135) are

consistent with American Society for Testing and

Materials (ASTM) Standards on Building

Economics, in particular ASTM Standard Practices

E917, E964, E1057, E1074, E1121, and E1185.

The supporting NIST LCC computer software

(BLCC) can generally be used to analyze any type

of project whose costs can be categorized as:

• initial investment costs,

• operation and maintenance costs,

• energy costs and water costs,

• capital replacement costs,

• residual values, and

• financing costs.

Additional Reference Materials

The FEMP LCC rules in 10 CFR 436A are

explained in NIST Handbook 135 Life-Cycle Costing

Manual for the Federal Energy Management Program

and its annual supplement Energy Indices and

Discount Factors for Life-Cycle Cost Analysis.

Appendix A of this guidance refers the reader to

additional Government documents that provide

guidance on meeting the LCCA requirements of

Executive Order 13123:

• Facilities Standards for the Public Buildings

Service. This GSA document provides

general guidance on LCCA for buildings and

building systems.

• Whole Building Design Guide provides

guidance on sustainable building design.

• Criteria/Standards for Economic Analysis/LifeCycle Costing for MILCON Design. This DOD

Tri-Services Memorandum of Agreement

provides guidance on LCCA for military

construction design.

Authority

This LCC guidance is issued under the authority

of Executive Order 13123, June 3, 1999. The use

of life-cycle costing to evaluate energy and water

conservation, and renewable energy projects in the

Federal Government arises from the requirements

of the National Energy Conservation Policy Act

(NECPA) of 1978 (PL 95-619), as amended; the

Energy Policy Act of 1992 (PL 102-486); and

subsequent legislation and Executive Orders. The

LCC rules and regulations, codified in 10 CFR

436, Subpart A, Life-Cycle Cost Methodology and

Procedures, were published by DOE in 45 FR 5820

on January 23, 1980, and amended in 1990 and

1996 (FR, Vol. 55, No. 224, November 20, 1990;

FR, Vol. 61, No. 123, June 25, 1996).

To read the full text of this guidance, see

www.eren.doe.gov/femp/aboutfemp/pdfs/

lifecycleguidance.pdf.

GUIDANCE ON LIFE-CYCLE COST ANALYSIS REQUIRED BY EXECUTIVE ORDER 13123

continued from previous page

11
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

Guidance for Providing Credit Toward Energy Efficiency Goals

for Cost-Effective Projects Where Source Energy Use Declines

But Site Energy Use Increases

April 26, 2000

Section 502(e) of Executive Order 13123 directs DOE to “issue guidance for providing credit toward energy efficiency

goals for cost-effective projects where source energy use declines but site energy use increases.” This guidance was

developed by the Reporting Working Group of the Interagency Energy Management Task Force. Input from natural gas

and electricity industry groups was coordinated by the Alliance to Save Energy and considered in the development of this

guidance. The technical contact for more information is Rick Klimkos, FEMP, 202-586-8287.

This guidance fulfills the requirement under

Section 502(e) of Executive Order 13123. The

Secretary of Energy, in collaboration with other

agency heads, is required to “issue guidance for

providing credit toward energy efficiency goals for

cost-effective projects where source energy use

declines but site energy use increases.” This

guidance will be incorporated into the annual DOE

Reporting Guidance for the Annual Report to

Congress on Federal Government Energy Management

for FY 2000. In subsequent years, this guidance

will be subject to change as implementation issues

arise and are addressed.

Section 206 of the Order establishes the following

requirement pertaining to source-measured

energy consumption:

Source Energy. The Federal Government

shall strive to reduce total energy use and

associated greenhouse gas and other air

emissions, as measured at the source. To that

end, agencies shall undertake life-cycle costeffective projects in which source energy

decreases, even if site energy use increases.

In such cases, agencies will receive credit

toward energy reduction goals through

guidelines developed by DOE.

Background

Energy measured at the point of use is termed “site

energy”. Energy measurement that accounts for

the generation, transmission and distribution of

the energy is called “source energy”. Whichever

way consumption is measured, cost-effectiveness

remains the mandated criteria for assessing,

selecting, and funding potential Federal energy

efficiency projects.

In June 1996, the Federal Interagency Energy

Policy Committee (656 Committee) unanimously

approved a policy statement that encourages costeffective energy projects that result in reduced

energy consumption regardless of whether that

consumption is measured on a site basis or source

basis. The purpose of this policy statement was to

remove any perceived bias against projects which

are cost effective and save energy when measured

on a source basis but may not necessarily save

energy when measured on a site basis. The most

common example of this would be a fuel-switching

project which substitutes lower cost natural gas for

electricity. This policy remains in effect in that

while Federal agencies should continue measuring

and accounting for energy use at the point of use at

the facility site, energy efficiency projects that

result in operational cost savings and reduced

source-measured energy consumption are also

encouraged.

continued on next page

12
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

The Department of Energy’s Annual Report to

Congress on Federal Government Energy Management,

will continue to report facility consumption both

ways and refers to source-measured energy as

primary consumption and site-measured energy as

net consumption. When tracking performance

toward the mandated reduction goals for buildings

and facilities, Btu-per-gross-square-foot will be

measured on a site basis, although sourcemeasured consumption is also reported in

accompanying tables.

Crediting Project-Specific Source Energy Declines

Performance toward the energy efficiency goals

established by Executive Order 13123 under

Section 202 (Energy Efficiency Improvement

Goals) and Section 203 (Industrial and Laboratory

Facilities) are measured on an agency-wide basis.

Therefore the impact of an individual project

would be negligible on an agency-wide basis.

Therefore, to make an impact on an agency-wide

basis, an agency would have to complete numerous

projects where source energy use declines but site

energy use increases.

Agencies should continue to report energy

consumption as in the past, i.e., aggregated and

submitted in the units shown in the table below for

each energy type.

Based on these submissions DOE will calculate

energy consumption in site-delivered Btu and Btuper-gross-square-foot. DOE will also calculate Btu

per gross square foot on a source basis.

Agencies will receive credit for projects on their

scorecard evaluation for life-cycle cost-effective

projects where source energy declines and site

energy increases. For each completed project

where source energy use declines but site energy

use increases, agencies should calculate source

energy savings for the reported fiscal year.

Agencies may use the national average source

conversion factors used by DOE or may choose

factors from the particular utility or steam

provider. The conversion factors traditionally

used by DOE are:

Electricity 11,600 Btu/kilowatt hour

Purchased Steam 1,390 Btu/pound

The electricity conversion factor has been used

since 1985 by DOE for Federal energy reporting

and includes energy lost in the generation process

(66%), electricity used in the utility plant (2%),

electricity lost in the transmission and distribution

process (3%), and electricity delivered to the

customer’s site (29%). If an agency is using a

conversion factor obtained from its utility, it should

include each of these components and be properly

documented in the agency’s report to DOE.

GUIDANCE FOR PROVIDING CREDIT TOWARD ENERGY EFFICIENCY GOALS FOR COST-EFFECTIVE PROJECTS

WHERE SOURCE ENERGY USE DECLINES BUT SITE ENERGY USE INCREASES

continued from previous page

Energy Type Reporting Unit Site Conversion Factor

Electricity (Megawatt Hours) 3,412 Btu/kilowatt hour

Fuel Oil (Thousands of Gallons) 138,700 Btu/gallon

Natural Gas (Thousands Cubic Feet) 1,031 Btu/cubic foot

LPG/Propane (Thousands of Gallons) 95,500 Btu/gallon

Coal (Short Ton) 24,580,000 Btu/short ton

Purchased Steam (Billion Btu) 1,000 Btu/pound

Other (Billion Btu)

continued on next page

13
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

GUIDANCE FOR PROVIDING CREDIT TOWARD ENERGY EFFICIENCY GOALS FOR COST-EFFECTIVE PROJECTS

WHERE SOURCE ENERGY USE DECLINES BUT SITE ENERGY USE INCREASES

continued from previous page

Agencies should use the following worksheet for each applicable project in order to

document source energy reductions and site energy increases:

PROJECT WORKSHEET EXAMPLE

Base Case (pre-project implementation)

Line 1 Annual Source Energy Used MMBtu 475 MMBtu

Line 2 Annual Site Energy Used MMBtu 128 MMBtu

New Project

Line 3 Annual Source Energy Used MMBtu 258 MMBtu

Line 4 Annual Site Energy Used MMBtu 233 MMBtu

Subtract Line 3 from Line 1, this is:

Line 5 Annual Source Energy Used MMBtu 217 MMBtu

Subtract Line 2 from Line 4, this is:

Line 6 Annual Site Energy Increase MMBtu 105 MMBtu

Once this worksheet is completed for each applicable project, compile the data from Line 5

and Line 6 for each project into the format below (as shown in the example):

ANNUAL COMPILATION WORKSHEET

Annual Source Annual Site

Name of Project Energy Saved Energy Increase

1) Water Heater Retrofit MMBtu MMBtu

2) 25 Water Heaters Replaced MMBtu MMBtu

3) 15 Water Heaters Replaced MMBtu MMBtu

Total MMBtu MMBtu

EXAMPLE

Annual Source Annual Site

Name of Project Energy Saved Energy Increase

1) Water Heater Retrofit 217 MMBtu 105 MMBtu

2) 25 Water Heaters Replaced 5,425 MMBtu 2,625 MMBtu

3) 15 Water Heaters Replaced 3,255 MMBtu 1,575 MMBtu

Total 8,897 MMBtu 4,305 MMBtu

14
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

Submit this project compilation worksheet to DOE.

To remove the perception that there is any

disincentive to implementing these types of

projects, DOE will work with the Office of

Management and Budget to ensure that

appropriate credit is given on the agency’s

scorecard. Credit will be applied to the component

of the scorecard dealing with the energy efficiency

improvement goals of Section 202 or 203, as

appropriate.

Additional Benefits and Recognition of Projects that

Reduce Source Energy

(1) Impact on Greenhouse Gas Reduction Goal:

In measuring progress toward the new

greenhouse gas reduction goal, greenhouse gas

emission calculations will be based on sourcemeasured energy. Therefore, projects that result

in source energy reductions will directly contribute

to an agency’s performance toward the greenhouse

gas reduction goal of Section 201 of the Order.

(2) Reductions in Source Energy per Gross Square

Foot: Agency progress toward energy reduction

goals will be tracked in the Annual Report to

Congress on Federal Government Energy Management

on a source-measured basis as well as on a sitemeasured basis. This will highlight agency

achievements in source energy reductions as

directed under Section 206 of the Order.

GUIDANCE FOR PROVIDING CREDIT TOWARD

ENERGY EFFICIENCY GOALS FOR COST-EFFECTIVE

PROJECTS WHERE SOURCE ENERGY USE DECLINES

BUT SITE ENERGY USE INCREASES

continued from previous page

15
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

Guidance on Federal Government Renewable Energy Goal

May 15, 2000

Section 503(b) of Executive Order 13123 directs DOE to develop for the first time a goal for the amount of energy

generated at Federal facilities from renewable energy. This goal was developed by the Renewable Energy Working Group

of the Interagency Energy Management Task Force. The technical contact for more information is Anne Sprunt

Crawley, FEMP, 202-586-1505.

This guidance fulfills the requirement for the

Secretary of Energy to establish a Federal

renewable energy goal under section 503(b) of

Executive Order 13123, and consistent with

Section 204:

“Sec. 204. Renewable Energy. Each agency

shall strive to expand the use of renewable

energy within its facilities and its activities by

implementing renewable energy projects and

by purchasing electricity from renewable

energy sources.”

“Sec. 503. Within 1 year of this order, the

Secretary of Energy, in collaboration with

other agency heads, shall:

(b) develop goals for the amount of

energy generated at Federal facilities

from renewable energy technologies;”

Recommendation

The Secretary of Energy recommends that the

Federal Government strive to have the equivalent

of 2.5 percent of facilities’ electricity consumption

come from new renewable energy sources by 2005.

New renewable energy would include any

renewable energy acquired by the Federal

Government after 1990. Using 1998 Federal

energy consumption data, the goal would equal

1,355 gigawatt-hours (GWh) of electricity

consumption annually or 4.6 trillion Btu. A

preliminary analysis found 173 GWh of new

renewable energy already in use or available under

contract in the Federal sector.

To accomplish a meaningful goal, agencies will

require maximum flexibility to obtain renewable

energy in a manner that makes the most economic

sense, and apply it wherever it is most

advantageous. Although the goal is measured

against facility electricity use because that is where

the greatest opportunity for renewable energy

exists, agencies will be allowed to substitute

renewable energy generated or used in many

situations, including transportation, energyintensive facilities, or outside a facility. For

example:

• on- and off-grid power technologies;

• thermal technologies;

• renewable transportation fuels (ethanol,

hydrogen derived from renewable energy,

etc.);

• passive solar energy captured by equipment

and building design;

• renewable energy mechanical power;

• renewable energy from projects on Federal

facilities facilitated by the host agency – for

example, a geothermal project on Federal

land where the host agency assisted with

siting; and

• renewable energy used by clients of a Federal

agency, if the agency provided financial or

project development support – for example,

solar energy on public housing.

For purchases of renewable energy, agencies will

be required to submit information in their annual

reports. FEMP will offer a voluntary, on-line

continued on next page

16
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

reporting system that will request a minimum

amount of information for all other projects in

order to estimate renewable energy output. FEMP

will be responsible for developing engineering

estimation techniques for converting project

information into estimates of renewable energy use.

Agencies will not be required to develop their own

estimates, beyond the information requested by the

on-line reporting system.

Since the goal is based on 2.5 percent of the

Government’s consumption of electricity, the

targeted level of renewable energy use will be

recalculated each year to account for changes in

Federal energy consumption.

Agencies should also report in their scorecards and

annual reports the efforts they have made to create

opportunities for renewable energy use. Reports

should focus on agency efforts to implement the

mechanisms cited in the Executive Order:

renewable power purchasing, use of energy savings

from other projects to purchase renewable energy,

bundling renewable energy with other measures in

ESPCs, sustainable building design, and

purchasing renewable energy equipment.

GUIDANCE ON FEDERAL GOVERNMENT RENEWABLE

ENERGY GOAL

continued from previous page

17
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

Guidance for Counting Renewable Energy Projects and Green

Energy Purchases Toward Progress in Reaching Greenhouse Gas

and Energy Reduction Goals; and Guidance for Estimating

Greenhouse Gas Emissions Attributable to Facility Energy Use

May 15, 2000

Two separate Executive Order 13123 requirements (Section 503(a) and 503(b)) for guidance to be developed by DOE

(in collaboration with other agencies) are combined into this document. The approaches outlined in the document below

were developed by the Utility Working Group of the Interagency Energy Management Task Force. The technical contact

for more information is Brad Gustafson, FEMP, 202-586-2204.

Background

This guidance fulfills the requirement for the

Secretary of Energy under section 503(a) and

503(e) of Executive Order 13123:

“Sec. 503. Within 1 year of this order, the

Secretary of Energy, in collaboration with other

agency heads, shall:

(a) Provide guidance for counting renewable

and highly efficient energy projects and

purchases of electricity from renewable and

highly efficient energy sources toward

agencies’ progress in reaching greenhouse

gas and energy reduction goals;

(e) Issue guidelines for agency use estimating

the greenhouse gas emissions attributable to

facility energy use. These guidelines shall

include emissions associated with the

production, transportation and use of energy

consumed in Federal facilities;”

This guidance outlines how agencies may report

renewable energy projects and green energy

purchases so that they receive credit toward the

Executive Order’s greenhouse gas, energy

reduction, and renewable energy goals. This

guidance also outlines the approach DOE will use

to estimate greenhouse gas emissions from the

aggregate facility energy consumption data that

agencies report to DOE’s Federal Energy

Management Program (FEMP). It is important to

note that the emission estimates will be calculated

by FEMP and will result in no additional reporting

burden on Federal agencies unless they choose to

refine those estimates.

Two Types of Renewable and Green Activities

Recognized

There are two types of renewable or green energy

use that will be counted toward Executive Order

goals, each with different reporting requirements.

The first type involves purchases of electricity or fuel

characterized as “green” and often including

renewable energy as a major component. The

second type involves agency-owned or agencysponsored renewable energy projects, including onsite generation, passive solar design in new

construction or building renovation, and off-grid

generation as examples.

Crediting Green Energy Purchases Toward Goal

Progress

Under regular circumstances, an agency purchases

electricity conventionally-generated from whatever

continued on next page

18
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

resources are at its local utility’s disposal. This

electricity consumption is reported to DOE and

factored into the agency’s performance toward the

energy and greenhouse gas reduction goals. With

the advent of retail competition, however, Federal

agencies may have opportunities to purchase

renewable or cleaner energy in the competitive

market as part of green power pricing programs.

Federal agencies may now get credit for these

activities toward meeting the goals of Executive

Order 13123 by reporting information on these

special purchases in the format shown in Exhibit A.

This format will be incorporated into the Agency

Annual Energy Management Data Report form

distributed as part of DOE/FEMP’s Reporting

Guidance for the Annual Report to Congress on Federal

Government Energy Management. (Regular

purchases from local utilities of conventionallygenerated electricity do no have to be reported in

this format.) The form will also capture data on

purchases of biomass or landfill gas and thermal

energy from renewable energy sources to ensure

credit from these purchases as well.

For green electricity purchases, agencies need to

provide annual electricity usage and costs for the

facilities included in the purchase and the State in

which the facilities are located. Agencies also need

to indicate (yes or no) if all of its facilities in that

State are included in the purchase. In order to

properly credit the agency with greenhouse gas

reductions attributable to the competitive

purchase, agencies also need to indicate the

component shares of the different resources

comprising the generation mix (e.g., percentage of

generation from renewable energy, coal, natural

gas, hydro, nuclear, etc.); this information can be

obtained from the retail supplier.

Renewable Energy Goals. All renewable energy (as

defined by the Executive Order) purchases will be

credited 100 percent toward agencies’ renewable

energy goals. Only energy purchases that specify

renewable energy in the purchase contract will be

reported in the Exhibit A format. Renewable

energy or energy from other technologies that is

inadvertently delivered as part of a local utility’s

normal generation mix will not be reported

separately.

Greenhouse Gas Goals. Agency reports on new

purchases of renewable energy, energy from

highly-efficient technologies, or energy from

technologies that substantially reduce greenhouse

gas emissions since 1990 will be used to adjust

agencies’ greenhouse gas emission estimates.

Renewable energy or energy from other

technologies inadvertently delivered as part of the

local utility’s normal generation mix will not be

considered as this is already captured in the State’s

emission factor.

Energy Reduction Goals. Only actual

conventional energy use will be used to calculate

energy use per square foot of facilities. Renewable

energy components of green energy purchases

separately reported to FEMP will be subtracted

from agency total energy consumption.

Crediting Renewable Energy Projects Toward Goal

Progress1

Renewable Energy Goal. For renewable energy

projects, FEMP will use existing project tracking

databases at DOE and other agencies to the extent

GUIDANCE FOR COUNTING RENEWABLE ENERGY PROJECTS AND GREEN ENERGY PURCHASES TOWARD

PROGRESS IN REACHING GREENHOUSE GAS AND ENERGY REDUCTION GOALS

continued from previous page

continued on next page

1 Government-owned renewable energy projects that serve

grid-connected facilities or reduce purchased fossil fuel use

displace reported energy consumption, automatically

crediting performance toward greenhouse gas and energy

reduction goals. Only actual conventional energy use

(captured mainly from utility bills) will be used to calculate

energy use per square.

19
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

possible to ensure these projects are credited

toward agencies’ progress in using renewable

energy. To count projects that are currently not

being tracked, FEMP will establish an electronic

registry on the Internet that agencies can use to

provide project information that is not accounted

for in agency-wide reports or existing tracking

systems. Agency participation will be voluntary;

however, if an agency does not report its renewable

energy projects in some form, these projects will

not be counted toward the agency’s renewable

energy goals. In order to minimize the reporting

burden, the registry will be designed to collect the

bare minimum of project information FEMP needs

to estimate the energy value of the projects and

credit them to the sponsoring agency. For

example, the capacity rating in kilowatts, agency

contact, and location would be all the information

necessary to estimate the output of a photovoltaic

system.

DOE Approach for Estimating Greenhouse Gas

Emissions

Section 201 of Executive Order 13123, Greening the

Government through Efficient Energy Management, for

the first time establishes a greenhouse gas

reduction goal for Federal Government facilities.

This goal applies to standard buildings subject to

the energy efficiency goals of Section 202 and

industrial, laboratory, and other energy-intensive

facilities subject to the goals of Section 203. The

requirement states:

“Through life-cycle cost-effective energy measures,

each agency shall reduce its greenhouse gas

emissions attributed to facility energy use by 30

percent by 2010 compared to such emissions levels

in 1990. In order to encourage optimal investment

in energy improvements, agencies can count

greenhouse gas reductions from improvements in

GUIDANCE FOR ESTIMATING GREENHOUSE GAS EMISSIONS ATTRIBUTABLE TO FACILITY ENERGY USE

continued from previous page

continued on next page

nonfacility energy use toward this goal to the

extent that these reductions are approved by the

Office of Management and Budget (OMB).”

DOE/FEMP has the primary responsibility for

developing methods to monitor and report

progress by agencies in reducing greenhouse gas

emissions over time. In the past, FEMP tracked

and reported aggregate energy use for all Federal

agencies and estimated carbon emissions using

national fuel-specific emission factors. This

approach, however, results in less accurate

emission estimates for electricity use because

carbon emission factors for electricity vary

significantly by utility and State depending on the

resource used to generate the electricity (e.g., coal,

gas, nuclear, hydro).

To obtain a greater level of accuracy in estimating

emissions from electricity use, FEMP has

developed a new approach that places little or no

additional reporting burden on the agencies.

Agencies may continue to report their aggregated

national-level electricity consumption data as they

have in the past. FEMP will then take that total

consumption figure and apportion it across the

States in which the agency has facility locations.

FEMP will then multiply the apportioned

electricity usage by the appropriate regional-level

carbon emission factor assigned to each State.

Once emissions from electricity use are calculated,

these will be added to the emissions estimated from

the other fuels used by the agency to determine

total carbon emissions. (National factors may be

appropriately used for fuel oil, natural gas, LPG/

propane, coal, and purchased steam.)

20
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

GUIDANCE FOR ESTIMATING GREENHOUSE GAS EMISSIONS ATTRIBUTABLE TO FACILITY ENERGY USE

continued from previous page

How FEMP Will Apportion Electricity Use Across

States

In most cases, FEMP will estimate State electricity

usage by determining the percentage of facility

floor area for the agency and apportioning the

reported total electricity use according to that

percentage. For the purposes of estimating

changes in greenhouse gas emissions over time,

FEMP is assuming that floor area can be used as a

reasonable proxy to represent the State-level usage

pattern for electricity consumption for an agency.

FEMP will use historical square footage data for

Government-owned buildings from the General

Services Administration’s Office of

Governmentwide Policy, Office of Real Property to

determine each State’s percentage floor area for

each agency. Agencies will be given an opportunity

to review these percentages to confirm consistency

with their own records and knowledge of facility

distribution. If an agency, through its own

information systems, can readily obtain floor area

data broken out by State, the agency should

provide this information to FEMP to determine the

apportionment percentages.

Agencies May Provide Electricity Use Data

Disaggregated by State

For estimating carbon emissions, the greatest level

of accuracy is achieved when an agency has Statespecific electricity consumption data readily

available, and provides this data to FEMP. FEMP

encourages those agencies that can provide Statespecific electricity data to do so as part of their

annual energy report to DOE. For larger agencies

that would find this reporting onerous, the

approach outlined in this guidance document is

offered as an alternative.

In conclusion, agencies may refine or enhance

their emission estimates in two ways:

• Agencies may disaggregate total electricity

consumption by the State in which the

electricity is consumed (report electricity

consumption broken out by State).

• Agencies may report, and receive credit for,

special purchases of electricity generated

from renewable energy sources as discussed

earlier in this guidance document.

continued on next page

21
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

continued from previous page EXHIBIT A Format for Reporting Green Energy Purchases To Receive Credit Toward Executive Order Goals

continued on next page

22
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

EXHIBIT B

Carbon Coefficients for Estimating Carbon Emissions

FEMP will use factors derived from data from the Energy Information Administration (EIA) for estimating

carbon emissions from non-electric fuels on a nation-wide basis. The regional emissions factors for

electricity were calculated by summing the annual EIA data on electricity sales and carbon emissions for each

State in a given region. These sums were then used to calculate the regional emissions/kWh (which were

then converted to MMTCE/Quad). This value will be used for each State in a particular region.

Non-Electric Fuel National Coefficients

Million Metric Tons of Carbon Equivalent (MMTCE) per Quad

(or Metric Tons of Carbon/Billion Btu)

continued from previous page

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999* 2000*

Fuel Oil 19.95 19.95 19.95 19.95 19.95 19.95 19.95 19.95 19.95 19.95 19.95

Natural Gas 14.47 14.47 14.47 14.47 14.47 14.47 14.47 14.47 14.47 14.47 14.47

LPG/Propane 16.99 16.98 16.99 16.97 17.01 17.00 16.99 16.99 16.99 16.99 16.99

Coal 25.58 25.60 25.62 25.61 25.63 25.63 25.61 25.63 25.63 25.63 25.63

Purchase Steam 35.63 35.63 35.63 35.63 35.63 35.63 35.63 35.63 35.63 35.63 35.63

*Preliminary

Source: EIA’s Emissions of Greenhouse Gases in the United States, 1998, Tables 11 and B1, DOE/EIA0573(98), October 1999. The factor for purchased steam is derived from the coefficient for coal adding

associated losses for generation and transportation (using a factor of 1.39 to convert site-delivered to

primary energy).

continued on next page

23
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

continued from previous page

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999* 2000*

AK 49.51 TBD TBD TBD TBD TBD TBD 44.66 44.66 44.66 44.66

AL, GA, MS, NC, 43.28 TBD TBD TBD TBD TBD TBD 45.27 45.27 45.27 45.27

TN, VA

AR, KS, LA, MO, OK 57.92 TBD TBD TBD TBD TBD TBD 57.74 57.74 57.74 57.74

AZ, CO, NM 82.50 TBD TBD TBD TBD TBD TBD 68.44 68.44 68.44 68.44

CA 15.12 TBD TBD TBD TBD TBD TBD 13.42 13.42 13.42 13.42

CT, MA, ME, NH, 33.08 TBD TBD TBD TBD TBD TBD 32.27 32.27 32.27 32.27

RI, VT

DC, DE, MD, NJ, PA 47.39 TBD TBD TBD TBD TBD TBD 43.36 43.36 43.36 43.36

FL 46.61 TBD TBD TBD TBD TBD TBD 44.34 44.34 44.34 44.34

HI 61.59 TBD TBD TBD TBD TBD TBD 49.47 49.47 49.47 49.47

IA, MN, NE, ND, SD 73.55 TBD TBD TBD TBD TBD TBD 66.89 66.89 66.89 66.89

ID, MT, NV, OR, 41.83 TBD TBD TBD TBD TBD TBD 40.12 40.12 40.12 40.12

UT, WA, WY

IL, WI 44.50 TBD TBD TBD TBD TBD TBD 51.37 51.37 51.37 51.37

IN, KY, MI, OH, WV 82.23 TBD TBD TBD TBD TBD TBD 77.30 77.30 77.30 77.30

NY 40.59 TBD TBD TBD TBD TBD TBD 25.95 25.95 25.95 25.95

TX 55.75 TBD TBD TBD TBD TBD TBD 52.42 52.42 52.42 52.42

Exhibit B (continued)

Electricity Regional Coefficients

Million Metric Tons of Carbon Equivalent (MMTCE) per Site-Delivered Quad

(or Metric Tons of Carbon/Billion Btu)

*Preliminary

Note: Regions match those defined in EIA’s Electricity Market Module of the National Energy Modeling

System.

Sources: For 1990 generation (for emissions factors): EIA, Electric Power Annual 1991 Volume II, Tables 26

and 73, DOE/EIA-0348(98)/2, December 1991 (used 1990 data).

For 1997 generation (for emissions factors): EIA, Electric Power Annual 1998 Volume II, Tables 4 and 61,

DOE/EIA-0348(98)/2, December 1998 (used 1997 data).

For carbon emissions: EIA, Electric Power Industry Estimated Carbon Emissions 1990 and 1997.

24
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

Guidance to Federal Agencies

for Determining Baseline Water Usage

December 2, 1999

Section 207 of Executive Order 13123 states that “through life-cycle cost-effective measures, agencies shall reduce water

consumption and associated energy use in their facilities to reach the goals set under section 503(f) of this order.” Section

502(f) and 503(f) direct DOE, in collaboration with other agencies, to provide guidance to assist each agency to determine

a baseline of water consumption and to establish water conservation goals for Federal agencies. The two guidance

documents below were developed by the Water Conservation Working Group of the Interagency Energy Management

Task Force. The technical contact for more information is Stephanie Tanner, National Renewable Energy Laboratory,

202-646-5218.

Background

Executive Order 13123 encourages Federal

agencies to reduce costs and implement costeffective water efficiency improvements at Federal

facilities. The Secretary of Energy must provide

guidance to assist each agency to determine a

baseline of water consumption, and will establish

water conservation goals for Federal agencies by

June 3, 2000.

Baseline water information will be used to describe

total estimated Federal water usage and monitor

the impact of future water efficiency

improvements. It is likely that available data is

incomplete, so an important component of this

process will be to assess the existing data, improve

the estimation process, and ultimately to collect

more complete data on water use at Federal

facilities. Agencies are encouraged to focus

baseline development efforts on the subset of

buildings comprising the majority of water usage.

Baseline Water Usage

Agencies shall establish baseline potable water

usage at facilities owned by the United States

Government. The baseline year is defined as FY00

(October 1, 1999 through September 30, 2000).

Data shall be reported in Million Gallons per Year

(MGY). Agencies should use actual data where

available, or make a best estimate where actual data

are not available.

Facilities Where Actual Data Are Available

Agencies should use data from one or more of the

following sources: facility meter(s), the local water/

wastewater supplier(s) and/or metered well(s) and

spring(s). If multiple data sources are used, care

should be taken to not “double count.”

Facilities Where Actual Data Are Not Available

Agencies with facilities where no actual water usage

information is available should estimate water

usage. If a facility has had a recent water use

survey, agencies can use those results to estimate

water use. Otherwise, to achieve a reasonable

estimate, agencies should, at a minimum:

1. Identify the significant factors which

determine water usage, such as number of

beds in a hospital, number of prisoners,

number of employees and visitors,

production units and /or irrigated acreage;

2. Determine the numeric value for those

factors;

3. Then, multiply the numeric value by water

use indices to be provided by the Federal

Energy Management Program. FEMP will

provide water use indices for hospital beds,

continued on next page

25
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

prisoners, employees, dwelling units, and

schools. Agencies with other significant or

unusual water usage should contact FEMP

for assistance.

Schedule/Reporting

Agencies shall report FY00 water usage to the

Department of Energy in their Fiscal Year 2000

annual energy reports. DOE shall provide a

reporting format to Federal agencies by June 2000.

Federal water usage will thereafter be reported

every two years beginning in 2002. Agencies will

also report water conservation measures

implemented and water saved on an annual basis.

It is anticipated that the total estimated Federal

water usage would decrease over time, due to

future implementation of water efficiency

measures. DOE recognizes that some agencies

may have future increases in water usage for

legitimate reasons such as changes in numbers of

visitors, employees, and production. In the FY

2000 report, agencies should describe those factors

that would explain any future increases in water

usage. These factors may be similar to those

identified in the baseline estimation methodology

described above.

Attachments:

Table 1 Water Conversion Chart

Table 2 Draft-Federal Water Use Indices

GUIDANCE TO FEDERAL AGENCIES FOR

DETERMINING BASELINE WATER USAGE

continued from previous page

Table 1

Water Conversion Chart

Volume Conversion

1 gallon (gal) = 8.34 pounds

1 cubic foot (ft3) = 7.47 gallons

1 unit (Ccf) = 748 gallons

1 acre-foot (AF) = 325,851 gallons

1 acre-foot (AF) = 43,560 cubic feet

1 million gallons/day (MGD) = 1121 acre feet/year

Metric Conversions

1 acre = 0.4 hectares

1 gallon = 3.8 liters

1 cubic foot = 0.03 cubic meters

continued on next page

26
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

 Gallons/unit/per day

Category User Unit Range Typical

Commercial

Airport Passenger 4-5 3

Apartment house Person 100-200 100

Boarding house Person 25-50 40

Hotel Guest 40-60 50

Employee 8-13 10

Lodging house and tourist home Guest 30-50 40

Motel Guest 25-40 35

Motel with kitchen Guest 25-60 40

Laundry (self-service) Machine 400-650 550

Office Employee 8-20 15

Public Lavatory User 3-6 5

Restaurant (including toilet)

Conventional Customer 8-10 9

Short-order Customer 3-8 8

Shopping center Parking Space 1-3 2

Employee 8-13 10

Open Space

Non-turf Acre 785

Turf Acre 1571

Recreational

Apartment, resort Person 50-70 60

Bowling alley Alley 150-250 200

Camp

Pioneer type Person 15-30 25

with toilet and bath Person 35-50 45

Day, with meals Person 10-20 15

Day, without meals Person 8-18 13

Trailer Trailer 75-150 125

Campground Person 20-40 30

Country club

Members 80-125 100

Employee 10-15 50

Dormitory (bunk house) Person 20-45 35

Fairground Visitor 1-2 3

Picnic park with flush toilets Visitor 5-10 6

Swimming pool and beach Customer 5-15 10

Employee 8-15 10

Visitor center Visitor 4-8 5

Institutional

Assembly hall Seat 2-4 3

Hospital medical Bed 130-250 150

Employee 5-15 10

Hospital mental Bed 80-150 120

Employee 5-15 10

Prison Inmate 80-150 120

Employee 5-15 90

Rest home Resident 5-120 90

Employee 5-15 10

School day

with cafeteria, gym and showers Student 15-30 25

with cafeteria only Student 10-20 15

without café & gym Student 5-15 10

School, boarding Student 50-100 75

Table 2

Draft-Federal Water Use Indices

27
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

Guidance to Establish Water Efficiency

Improvement Goal for Federal Agencies

May 10, 2000

Agencies shall reduce potable water usage by

implementing life cycle cost-effective water

efficiency programs that include a water

management plan, in accordance with Table 2, and

not less than 4 separate FEMP Water Efficiency

Improvement Best Management Practices (BMP),

listed in Table 1. BMPs can be considered

implemented at a facility when all the following

criteria are met:

1. Water Management Plans have been

developed/revised and incorporated into

existing facility planning processes and

operating plans; and

2. Applicable Operations & Maintenance

Options have been put into practice, and

Retrofit/Replacement Options have been

reviewed within the last 2 years and those

appropriate for implementation have been

identified; and

3. Applicable cost-effective Retrofit/

Replacement Options have been

implemented.

The schedule for implementation is as follows:

05% of facilities by 2002

15% of facilities by 2004

30% of facilities by 2006

50% of facilities by 2008

80% of facilities by 2010

The Department of Energy will review agencies’

progress in 2005, and may revise the water

efficiency improvement goal at that time. Agencies

should also refer to the FEMP web site for

information about reporting baseline water

consumption and cost.

Table 2 – Facility Water Management Planning

Guidelines

Background

A successful water management program starts

with development of a comprehensive water

management plan. This plan should provide clear

information about how a facility uses its water,

from the time it is piped onto the facility through

its ultimate disposal. Knowing how you currently

use water and what it costs will enable you to make

the most appropriate water management decisions.

This plan should be included with existing facility

operating plans.

Implementation

Develop or update facility water management plans

to include at a minimum the following:

1) Operation and Maintenance (O&M)

recommendations. Include appropriate

O&M recommendations from the FEMP

Best Management Practices in facility

operating plans or procedure manuals.

2) Utility Information. Appropriate utility

information should include the following:

a) Contact information for all water and

wastewater utilities.

b) Current rate schedules and alternative

schedules appropriate for your usage or

facility type. You want to be sure you are

paying the best rate.

continued on next page

28
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

c) Copies of water/sewer bills for the past 2

years. This will help you identify

inaccuracies and determine that you are

using the appropriate rate structure.

d) Information on financial or technical

assistance available from the utilities to

help with facility water planning and

implementing water efficiency programs.

Sometimes energy utilities offer assistance

on water efficiency.

e) Contact information for the agency or

office that pays the water/sewer bills.

f) Production information, if the facility

produces its water and/or treats its own

wastewater.

3) Facility information. At a minimum,

perform a walk-through audit of the facilities

to identify all major water using processes;

location and accuracy of water measurement

devices; main shut off-valves; verify

operating schedules and occupancy of

buildings. Because of reporting

requirements in Executive Order 13123,

facilities should include a description of

actions necessary to improve the accuracy of

their water usage data. This can include a

metering (or other measurement) plan for

the facility.

4) Emergency response information. Develop

water emergency and/or drought

contingency plans that will describe how

your facility will meet minimum water needs

GUIDANCE TO ESTABLISH WATER EFFICIENCY IMPROVEMENT GOAL FOR FEDERAL AGENCIES

continued from previous page

in an emergency or reduce water

consumption in a drought or other water

shortage. This should be done in

conjunction with your local water supplier.

5) Comprehensive Planning. Inform staff

contractors and the public of the priority

your agency or facility places on water and

energy efficiency. Ensure that they take

water supply, wastewater, storm water issues

and water efficiency BMPs into account at

the earliest stages of planning and design for

renovation and new construction.

Table 1 – FEMP Water Efficiency Improvement

Best Management Practices

Agencies shall implement a water management

program that includes not less that four of the

following best management practices:

BMP # 1 – Public Information and Education

Programs

BMP # 2 – Distribution System Audits, Leak

Detection & Repair

BMP # 3 – Water Efficient Landscape

BMP # 4 – Toilets and Urinals

BMP # 5 – Faucets and Showerheads

BMP # 6 – Boiler/Steam Systems

BMP # 7 – Single-Pass Cooling Systems

BMP # 8 – Cooling Tower Systems

BMP # 9 – Miscellaneous High Water-Using

Processes

BMP #10 – Water Reuse and Recycling

Detailed descriptions of the ten BMPs can be

downloaded from www.eren.doe.gov/femp/

resources/water/draft_docs.html.

29
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

Guidance for Preparing the Executive Order 13123

Implementation Plan for FY 2001

The Implementation Plan should be formatted as described below. The format generally follows the outline

for the Annual Report. Although the Implementation Plan will be submitted as an attachment to the Annual

Report, the Plan should be considered a stand-alone document. Therefore, please do not refer to the

Annual Report for Section I, Part A, or for any other part of the Plan that you feel may be redundant with

the Annual Report. This Plan should be brief and should describe only activities planned for the next fiscal

year.

I. Management and Administration. This

section will describe (1) the agency’s

establishment of an energy management

infrastructure and (2) the agency’s plans to

use management tools in implementing

Executive Order 13123.

A. Energy Management Infrastructure

1. Senior Agency Official. Identify the

agency’s senior energy official and

describe the official’s role and

responsibilities.

2. Agency Energy Team. Identify the

members of the team and describe the

team’s responsibilities.

B. Management Tools

1. Awards (Employee Incentive

Programs). Describe the agency’s

plans to use employee incentive

programs to reward exceptional

performance in implementing

Executive Order 13123.

2. Performance Evaluations. Describe

agency plans to include successful

implementation of provisions of

Executive Order 13123 in the position

descriptions and performance

evaluations of members of the agency

energy team and facility/energy

mangers.

3. Training and Education. Describe

plans to ensure that all appropriate

personnel receive training for energy

management requirements. Describe

plans to develop and implement

agency outreach programs that

include education, training, and

promotion of ENERGY STAR® and other

energy efficient products for Federal

purchase card users.

4. Showcase Facilities. Describe plans

to construct or renovate exemplary

facilities that the agency plans to

designate as Showcase Facilities.

Discuss why the facilities will be

considered Showcase Facilities (i.e.,

discuss the facility design, the

improvements made in energy or

water efficiency, the use of renewable

energy, etc.).

II. Implementation Strategies. The purpose of

this section is to describe plans to use

strategies to reduce energy consumption and

improve energy efficiency. It is not expected

that each agency will employ every strategy;

rather, each strategy identified in Executive

Order 13123 is listed as a subsection to

remind agency officials of the existence of

these strategies and to encourage their use

continued on next page

30
EXECUTIVE ORDER 13123 GUIDANCES - DECEMBER 2000

where practical and life-cycle cost effective.

If certain strategies will not be used, please

explain why not.

A. Life-Cycle Cost Analysis. Outline plans

to institute procedures to ensure the use

of life-cycle cost analysis in making

investment decisions about in products,

services, construction, and other projects

to lower the Federal Government’s costs

and to reduce energy and water

consumption. Report on plans to

implement the 10-Year Simple Payback

Rule. (Under EPACT, energy

conservation projects that will pay back

investment costs within 10 years must be

undertaken).

B. Facility Energy Audits. Describe the

number/percentage of agency facilities

that will be audited for energy and water

efficiency during the next fiscal year.

(Approximately 10% of facilities should

be audited each year). Describe the

prioritization criteria for audits (e.g.,

oldest facilities, most energy intensive

facilities, etc.)

C. Financing Mechanisms. Provide

narrative information related to the

planned use of Energy-Savings

Performance Contracts (ESPCs) and

Utility Energy Services Contracts

(UESCs).

D. ENERGY STAR® and Other

Energy-Efficient Products. Describe

steps to be taken to promote the

purchase of ENERGY STAR® products and/

or products that are in the upper 25

percent of energy efficiency as designated

by FEMP. Note whether energy efficient

criteria will be incorporated into all guide

specifications and product specifications

GUIDANCE FOR PREPARING THE EXECUTIVE ORDER 13123 IMPLEMENTATION PLAN FOR FY 2001

continued from previous page

developed for new construction and

renovation. Also note whether such

criteria will be incorporated into product

specification language. (See the ENERGY

STAR® products and “green” products

web sites by GSA [www.fss.gsa.gov/

environ], DOE [www.eren.doe.gov/femp/

procurement/begin.html], and EPA

[www.epa.gov/uiseerko/index.html]).

E. ENERGY STAR® Buildings. Report the

number and percentage of buildings that,

in the next fiscal year, are expected to

meet the ENERGY STAR® Building criteria

and to be officially designated ENERGY

STAR® Buildings. (Buildings must rank in

the top 25 percent in energy efficiency

relative to comparable commercial and

Federal buildings to be eligible for the

ENERGY STAR® Buildings designation. See

www.epa.gov/buildings/label).

F. Sustainable Building Design. Report

whether sustainable building design

principles will be incorporated into the

siting, design, and construction of new

facilities. (See www.wbdg.org for a

description of sustainable building design

principles).

G. Energy Efficiency in Lease Provisions.

Describe how energy and water efficiency

will be considered when agencies enter

into new leases or renegotiate/extend

existing leases (e.g., preference for

buildings with sustainable design and

development, preference for certified

ENERGY STAR® Buildings, etc.).

continued on next page

31
GUIDANCE FOR PREPARING THE EXECUTIVE ORDER

13123 IMPLEMENTATION PLAN FOR FY 2001

continued from previous page

H. Industrial Facility Efficiency

Improvements. Highlight planned

activities to explore efficiency

opportunities in energy-intensive

facilities. This may include activity in the

following areas: steam systems, boiler

operation, air compressor systems,

industrial processes, fuel switching,

cogeneration, and other efficiency and

renewable energy technologies.

I. Highly Efficient Systems. Describe

plans for new construction and/or

retrofit projects for which combined

cooling, heating, and power systems will

be installed. Report whether local

natural resources will be surveyed to

optimize use of available biomass,

geothermal, or other naturally occurring

energy sources.

J. Off-Grid Generation. Describe plans for

installing new solar hot water, solar

electric, solar outdoor lighting, small

wind turbines, fuel cells, and other offgrid alternatives.

K. Water Conservation. Highlight activities

to be undertaken to improve water

efficiency. Discuss plans to develop and

implement Water Management Plans and

Best Management Practices for efficient

use of water (Note: FEMP will issue in

July 2000 new guidance entitled Water

Efficiency Improvement Goal for Federal

Agencies. Water Management Plans and

Best Management Practices are described

in this guidance. The guidance will be

available on FEMP’s web site

[www.eren.doe.gov/femp/aboutfemp/

water.html]).

GSA’s Model Lease Provisions

Required Under Section 505(d)

The General Services Administration has issued

the first installment of leasing energy and

environmental business practices and solicitations

for offers (SFO) language to implement Executive

Order 13123.

Section 505(d) of the Order requires GSA to

develop model lease provisions that incorporate

provisions for energy efficiency and sustainable

design. Specifically, the Order requires that

agencies:

“shall incorporate lease provisions that

encourage energy and water efficiency

wherever life-cycle cost-effective. Build-tosuit lease solicitations shall contain criteria

encouraging sustainable design and

development, energy efficiency, and

verification of building performance.

Agencies shall include a preference for

buildings having the ENERGY STAR® building

label in their selection criteria for acquiring

leased buildings. In addition, all agencies

shall encourage lessors to apply for the

ENERGY STAR® building label and to explore

and implement projects that would reduce

costs to the Federal Government, including

projects carried out through the lessors’

Energy-Savings Performance Contracts or

utility energy-efficiency service contracts.”

In response to the requests of EO 13123, GSA’s

Public Buildings Service developed Energy,

Environmental, and Sustainable Design Business

Practices for Lease Acquisitions and Standard SFO

Paragraphs.

The complete acquisition can be found on the

GSA Web site at http://hydra.gsa.gov/pbs/pe/

green-lease.htm.

32
The “Whole Building Design Guide” Meets Requirements Stated

in Executive Order 13123 Guidance Documents

Section 505(a) of Executive Order 13123, Greening

the Government Through Efficient Energy Management,

requires the General Services Administration to

issue guidance to assist agencies in ensuring that all

cost and budget activities for design, construction,

and renovation are life-cycle costs. This guidance

can be found in the “Whole Building Design

Guide,” which is located at www.wbdg.org. The

“Whole Building Design Guide” also contains

information regarding sustainable design and

development principles for new construction, as

instructed in Section 504 of the Executive Order.

The “Whole Building Design Guide” is a complete

Internet resource to a wide range of

building-related design guidance, criteria and

technology.

Executive Order 13123 directs Federal agencies to

apply the principles of Sustainable Design to the

siting, design, and construction of new facilities.

The Executive Order also directs agencies to

optimize life-cycle costs, reduce pollution

prevention and other environmental and energy

costs associated with the construction, life-cycle

operation, and decommissioning of facilities.

The “Whole Building Design Guide” reminds us

that sustainability is a mode of thinking and acting

responsibly. The basic objectives of sustainability

are to:

1. Reduce the consumption of energy, land,

and other nonrenewable resources.

2. Minimize the waste of materials, water, and

other limited resources.

3. Create livable, healthy, and productive

environments.

The essential principles of Sustainable Design and

Development can be organized into the following

categories:

• Site,

• Energy,

• Materials,

• Water,

• Indoor Environmental Quality (IEQ), and

• Operations & Maintenance (O&M).

Sustainable Design and Development is a

comprehensive strategy to create buildings,

facilities and infrastructure that minimize the use

of resources and reduce harmful effects on the

environment. It is an integrated, synergistic

approach in which all phases of the facility life-cycle

are considered. The result is an optimal balance of

cost, environmental, societal and human benefits

while meeting the mission and function of the

intended facility or infrastructure. In general

terms, “reduce, reuse and recycle” are its key

strategies.

The “Whole Building Design Guide” tells us that

incorporating sustainable features in facilities need

not lead to higher initial cost. For example, Federal

agencies have completed buildings that consume

between 30 percent and 50 percent less energy

than traditional structures at minimal or no

additional cost.

Sustainable Design and Development supports an

increased commitment to environmental

stewardship and conservation. It also provides a

critical framework for the evaluation of all new

Federal facilities and for the major renovation and

alteration of existing Federal buildings and

facilities.

33
U.S. DEPARTMENT OF ENERGY

FEDERAL ENERGY MANAGEMENT PROGRAM, EE-90

WASHINGTON, DC 20585-0121

OFFICIAL BUSINESS