Treasury Strategic Sustainability Performance

Plan

June2011

Office of the

ASM/CFO
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Section 1: Agency Policy and Strategy

Agency Policy Statement
I. Agency Policy Statement

The Treasury Department is the executive agency responsible for promoting economic 

prosperity and ensuring the financial security of the United States. Treasury is 

responsible for a wide range of activities, including advising the President on economic 

issues, encouraging sustainable economic growth, and supervising financial institutions. 

Treasury operates systems critical to the nation's finances, such as coin and currency 

production, disbursement of payments to the public, revenue collection, and borrowing.

Treasury is committed to demonstrating leadership in environmental stewardship 

through compliance with environmental and energy statutes, regulations, and Executive 

Orders. Treasury's headquarters (Departmental Offices) and its bureaus are collectively 

responsible for accomplishing these goals. Current priorities include:

• Following through on energy reduction projects throughout Treasury to ensure 

the aggressive goals for reducing greenhouse gas (GHG) emissions are met by

2020.

• Implementing a wiping solution recycling system that will save an estimated 12 

million gallons of water on an annual basis at the Bureau of Engraving and 

Printing in Washington, DC.

• Obtaining Leadership in Energy and Environmental Design (LEED) certification 

and complying with the Guiding Principles for Federal Leadership in High 

Performance and Sustainable Buildings at the West Point Mint facility and at 

Main Treasury in Washington, DC.

• Integrating the social cost of carbon into the budgeting process to ensure 

appropriate consideration when projects are selected for funding.

• Improving the life cycle environmental management of electronic assets.

Recent accomplishments at Treasury include:

• Treasury achieved all "green" ratings on the July 2010 and January 2011 OMB 

Sustainability and Energy Scorecard.

• The January 2011 Treasury GHG Inventory reveals emission reductions of

13.9% from the 2008 baseline for Scope 1&2. This places Treasury ahead of 

plan to reach its Scope 1&2 FY2020 GHG reduction goal.

• The Denver Mint, Main Treasury, and Treasury Annex buildings are all 

being powered with 100% renewable energy through the purchase of 

Renewable Energy Credits (RECs).

• The San Francisco Mint installed a "cool roof' that reduces the heat island effect

and reduces stormwater runoff while providing habitat for wildlife.

• The Treasury Data Center Consolidation Plan was finalized in August, 2010.

Treasury is a leader in environmental management, minimizing waste and GHG 

emissions, as well as reusing and recycling material. Our challenges include integrating 

social costs into the budgetary process; and addressing the sustainability impacts of 

planned staff increases at the IRS.

Dan Tangherlini, Assistant Secretary for Management 

and Chief Financial Officer

Date
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II. Sustainability and the Agency Mission

Treasury remains resolute in being the steward of U.S. economic and financial systems and an influential participant 

in the global economy. Performing this mission in an environmentally-friendly manner compliments, rather than contradicts, Treasury’s goals.

Treasury will conduct its business in a way that reaffirms its commitment to protecting the environment. Achieving 

the sustainability goals outlined in this plan is consistent with Treasury’s mission of serving the American people and 

strengthening national security by managing the U.S. Government's finances effectively.

Treasury is in the process of migrating to more efficient electronic infrastructure operations. Server virtualization, 

power management, and data center consolidation are initiativesthat will drastically reduce energy consumption. Energy 

reduction projects such as these will reduce greenhouse gas emissions and save money by lowering energy, water, and 

gas consumption. Adopting sustainable practices will ultimately reduce maintenance and operating expenses, use less 

energy overall and ensure that what is used will come from cleaner sources.

Notable challenges faced by Treasury bureaus include how to handle furnace shut-downs associated with the move

to a four-10 hour day work schedule at the U.S. Mint in Denver. The availability of alternative fuel vehicle refueling 

stations continues to be a issue nationwide. Developing a systematic way of making choices to put in place projects 

that will reduce greenhouse gas emissions in the midst of dramatic budget reductions is a challenge. Planned staff increases at IRS could significantly alter IRS’ carbon footprint. Finally, Congressional mandatesrelating to raw materials 

for both paper money and coins limit Treasury’s ability to explore more sustainable feedstock.

It is valuable to understand the structure of the Department of the Treasury when considering the implementation of 

this plan. Treasury had approximately 125,880 employees in April 2011. This number doesn’t include contractors or 

interns working in our facilities. Treasury owns 11 of its operating facilities and leases over 680 others. Treasury 

consists of the policy offices in Treasury headquarters, known as the Departmental Offices (DO), and 11 other bureaus. 

These bureaus will be referred to by their acronyms or initialisms throughout this report.

BEP – Bureau of Engraving and Printing

BPD – Bureau of Public Debt

DO – Departmental Offices

FinCEN – Financial Crimes Enforcement Network

FMS – Financial Management Service

IRS – Internal Revenue Service

Mint – United States Mint

OCC – Office of the Comptroller of the Currency

OIG – Office of the Inspector General

OTS – Office of Thrift Supervision

TIGTA – Treasury Inspector General for Tax Administration
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TTB - Alcohol and Tobacco Tax and Trade Bureau

The IRS is the largest bureau - employing almost 90% of Treasury personnel. Both BEP and the U.S. Mint have manufacturing facilities. In this report, the terms “Department” and “Treasury” mean the entire department, including all 

bureaus. Treasury uses a mix of centralized planning and reporting that occurs at the Departmental level, such as with 

the OMB scorecards, and decentralized planning and implementation that occurs at the bureau level, such as through 

Environmental Management Systems and agency specific budgets. The Office of Environment, Safety, and Health in 

Departmental Offices submits environmental and energy reports on behalf of the Agency. All bureaus have personnel 

dedicated to implementing environmental, energy, and fleet management programs. Many people are full time environmental professionals, and others have this responsibility as collateral duty.

Size and Scope of Operations Number Comment

Total # Employees 125881

Total Acres Land Managed 167

Total # Facilities Owned 11

Total # Facilities Leased

(GSA lease) 562

Total # Facilities Leased

(Non-GSA) 124

Total Facility Gross Square Feet

(GSF) 12865100

Operates in # of Locations throughout U.S. 697

Operates in # of Locations outside of U.S. 0

Total # Fleet Vehicles Owned 3237

Total # Fleet Vehicles Leased 625

Total # Exempted-Fleet Vehicles

(Tactical, Emergency, etc.) 0

Total Operating Budget FY 2010 

($MIL) 19863

Total # Contracts Awarded FY 2010 38030

Total Amount Contracts Awarded FY 2010 

($MIL) 5844

Total Amount Spent on Energy Consumption FY 2010 

($MIL) 46

Total BTU Consumed per GSF 0.452

Total Gallons of Water Consumed per GSF 30.2

Total Scope 1&2 GHG Emissions

(Comprehensive) FY 2008 Baseline MMTCO2e .2633017

Total Scope 1&2 GHG Emissions

(Subject to Agency Scope 1&2 Reduction Target) FY 2008 Baseline MMTCO2e .2633017

Total Scope 3 GHG Emissions

(Comprehensive) FY 2008 Baseline MMTCO2e .5100492
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Size and Scope of Operations Number Comment

Total Scope 3 GHG Emissions

(Subject to Agency Scope 3 Reduction Target) FY 2008 Baseline MMTCO2e .5100492

III.Greenhouse Gas Reduction Goals

The Department of the Treasury has set ambitious goals in all areas of greenhouse gas (GHG) emission reduction. 

Scope 1 and 2 GHG emissions refer to releases from those assets that are directly owned by the government or relate 

to energy generated for use by the government. The baseline year was 2008 and the reduction target was set for 2020. 

Projections show that if Treasury met energy reduction targets in Executive Orders 13423 and 13514, Scope 1&2 

emissions would decrease by 22 percent. However, Treasury has set a more ambitious goal of reducing emissions by

33 percent.

Treasury has a specific plan to reach the Scope 1 and 2 GHG emissions goal. We have identified 30 energy reduction 

projects throughout our bureaus. These projects include conducting comprehensive energy audits, implementing major 

renovations on buildings and manufacturing facilities, utilizing renewable energy sources, reducing petroleum use, 

downsizing the agency fleet, and changing production schedules at some manufacturing facilities.

Greenhouse Gas Scope 3 emissions presented a data collection challenge. Using the spreadsheet tool that was provided 

by the Office of the Federal Environmental Executive in 2009, we estimated a portion of our emission inventory. This 

partial inventory was based on estimates of the transmission and distribution (T&D) losses from purchased energy, 

contracted waste disposal, and employee travel, including commuting. Employee travel was the largest contributor, 

followed by the T&D losses. Our challengesin setting a goal included the correlation between the number of employees 

and the corresponding GHG releases, for example from commuting and wastewater treatment. Treasury could grow 

significantly in the coming years but the magnitude of potential growth in employees is difficult to forecast. So, for 

the purposes of goal setting, we have assumed steady state conditions for the number of employees between now and

2020.

We set a goal of reducing Scope 3 GHG emissions from the 2008 baseline level by 11% by 2020. We will work to 

achieve this goal by decreasing energy usage (which directly results in less energy loss), reducing our solid waste disposal, and continuing to encourage alternate work arrangements to decrease travel where appropriate and in a way that 

does not impede our mission.

The IRS is utilizing projects funded through the American Recovery and Reinvestment Act (ARRA) in order to meet 

emissions reduction goals. ARRA funding is being used to support projects at the Austin, Ogden and Brookhaven 

campuses. The Andover, Austin and Ogden projects, which are already in progress, include elements such as lighting 

retrofits, chiller and cooling tower replacements, fan system repair, and geothermal HVAC installation, among other 

initiatives. Energy and emissions savings from the ARRA projects are expected to be realized in FY11 and FY12 in 

Andover and Austin, in FY12 in Ogden, and after FY12 in Brookhaven, as the Brookhaven project is just entering the 

construction phase.

IV. Plan Implementation
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Treasury is committed to effective implementation of E.O. 13514, 13423, and other applicable Executive Orders and 

statutes. The activities to meet targets in these requirements will be integrated into daily operations and maintenance 

of our facilities.

a. Internal Coordination, Communication, and Dissemination to the Field

Many officesthroughout Treasury continue to be involved with the evolution of this plan and oversee the various areas 

of sustainability, including the Office of Environment, Safety, and Health; Office of the Procurement Executive; Office 

of Asset Management; Office of Performance Budgeting; and the Chief Information Office. These offices collected 

information from the respective offices in the Treasury bureaus and gathered their input on their internal goals, which 

assisted in measuring progress toward agency goals.

The new requirements of the Sustainability Plan were communicated to all Treasury bureaus through joint Environmental and Energy council meetings and by frequent email messages, as the requirements in the plan template from 

OFEE changed. The final plan that is submitted to OFEE will be distributed to the leadership throughout Treasury, 

including the heads of each of Treasury’s 11 Bureaus, as well as the environment, energy, and fleet management professionals.

b. Leadership and Accountability

Treasury has identified a Senior Sustainability Officer to have overall responsibility for the Sustainability Plan. Responsibility for implementing the requirements in executive orders is embedded in the position descriptions and performance plans of the Senior Sustainability Officer, and Environmental, Energy and Real Property staff.

Coordination and dissemination of the plan to the field offices comes from Main Treasury to the environmental and 

energy points of contact. When new information is received by the contacts, it is then disseminated to all appropriate 

personnel for their review to ensure that they are aware of the goals that have been set. We will also incorporate sustainability-related metrics in Treasury-STAT accountability reports and sessions. This process is further described in 

paragraph d.

c. Agency Policy and Planning Integration

Treasury continues to integrate sustainable practices into all areas of procurement, operations, information technology, 

and finances. We continue to update, implement, and maintain existing plans and policies to include sustainability. 

Department-wide policies are addressed through a series of Treasury Directives, which include requirements in Executive Orders 13423 and 13514.The 4-year strategic plan is being developed at the same time this plan is being finalized, 

and draft sustainability language has been proposed and is being edited to include in the strategic plan. Progress toward 

sustainability goals is included in various documents such as the annual energy reports and the bi-Annual Office of 

Management and Budget (OMB) scorecards. For the last four reporting periods, Treasury is the only agency to be rated 

green in both progress and status in all areas of sustainability/energy/fleet management.

The sustainability goals in Executive Orders and regulations are also tracked through the formal Environmental Management Systems (EMS) that exists within many of Treasury’s larger facilities. The EMSs contain goals outlined in 

Executive Orders and Treasury’s Environmental Management and Sustainability Program Directive, 75-09, and specifically address leadership and accountability.

d. Methods for Periodic Monitoring and Evaluation of Progress

Semi-annual reporting of sustainability and energy metrics through the OMB scorecard process provides important 

information regarding the progress toward sustainability goals. Tracking and reporting of greenhouses gas emissions
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through an annual inventory submission sheds light on the effectiveness of projects that have been designed to reduce

Treasury’s carbon footprint.

Each bureau is responsible for implementing projects to reduce energy consumption (e.g., electricity, natural gas, petroleum) and consequently decrease greenhouse gas emissions. These projects will be tracked by the Office of Environment, Safety, and Health within Departmental Offices. The metrics will be confirmation that the project began by the 

proposed start date, and that the project progression is measured against the proposed completion date. A longer term 

metric is to measure the decreases in energy used. Initiatives to reduce the size of our fleet, purchase more efficient 

vehicles, and decrease miles driven will be tracked by the Office ofAsset Management. We are also continuing to assess 

the feasibility of using budgetary systems to track costs of projects as well. Additionally, all Bureaus are required to 

submit quarterly reports as part of the Treasury STAT accountability initiative. Performance against established milestones are then reviewed in sessions with leadership from each Bureau and agency leadership. A few key sustainability 

metrics common to all bureaus will be incorporated into these reports to ensure they receive high-level visibility.

Table 1 provides a crosswalk of the different elements of this plan and whether or not they are reflected in current 

plans.

(Please note: The Department of the Treasury is a mix of centralized planning and reporting that occurs at the Departmental level, such as with the OMB Scorecard, and decentralized planning and implementation that occurs at the bureau 

level, such as through formalized Environmental Management Systems. Some bureaus also have their own strategic 

plans. A “Yes” in this table reflects a “Yes” within the Department, but does not necessarily imply a “Yes” for all 

bureaus.)

Originating Report / 

Plan

Scope 1

& 2

GHG 

Reduction

Scope 3

GHG 

Reduction

Develop 

andMaintain 

Agency 

Comprehensive 

GHG Inventory

High-Performance Sustainable 

Design/Green 

Buildings

Regional and 

Local 

Planning

Water 

Use Efficiency 

and 

Management

Pollution 

Prevention and 

Waste 

Elimination

SustainableAcquisition

Electronic Stewardship 

and Data 

Centers

Agency 

Specific 

Innovation

GPRA Strategic Plan No No No No No No No No No No

Agency Capital Plan Yes No No No No Yes Yes Yes Yes Yes

A-11 300s No No No No No No No Yes Yes Yes

Annual GHG Inventory 

and Energy Data Report Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

EISA Section 432 Facility 

Evaluations/Project 

Reporting/Benchmarking

Yes No No No No Yes No Yes Yes Yes

Budget Yes Yes Yes Yes No Yes Yes Yes Yes No

Asset Management Plan /

3 Year Timeline Yes Yes Yes N/A N/A Yes Yes Yes Yes Yes

Circular A-11 Exhibit 53s No No No No No No Yes No Yes No

OMB Scorecards Yes Yes Yes Yes No Yes Yes Yes Yes Yes
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Originating Report / 

Plan

Scope 1

& 2

GHG 

Reduction

Scope 3

GHG 

Reduction

Develop 

andMaintain 

Agency 

Comprehensive 

GHG Inventory

High-Performance Sustainable 

Design/Green 

Buildings

Regional and 

Local 

Planning

Water 

Use Efficiency 

and 

Management

Pollution 

Prevention and 

Waste 

Elimination

SustainableAcquisition

Electronic Stewardship 

and Data 

Centers

Agency 

Specific 

Innovation

DOE's Annual Federal 

Fleet Report to Congress 

and the President

Yes Yes Yes N/A N/A N/A N/A N/A N/A N/A

DataCenterConsolidation

Plan Yes Yes No No Yes No No Yes Yes Yes

Environmental

Management System Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Instructions for 

Implementing Climate 

Change Adaptation 

Planning

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Other

(reports, policies, plans, 

etc.)

V. Evaluating Return on Investment

Treasury attempts to balance the demands of being an effective steward of government resources and carefully considers 

all purchases and expenses, while also making necessary investments in our facilities and equipment to assist in moving 

the United States toward sustainability. Monetary and non-monetary impacts are considered with major projects.

a. Economic Lifecycle Cost/Return on Investment

Our bureaus consider the economic lifecycle costs and return on investment for major initiatives. For example, the 

BPD performs a life cycle cost analysis on potential energy, water saving and environmental initiatives to determine 

the economic impact of the project. This cost analysis allows the project to have a ten (10) year simple payback while 

still qualifying for implementation. In accordance with OMB Circulars A-4, A-11 and A-94, TTB utilizes the Capital 

Planning and Investment Control (CPIC) processto select, control, and evaluate investments. TTB includes quantitative 

and qualitative benefits, lifecycle analysis, and Return on Investment ( ROI) as part of each investment evaluation. 

The CPIC process, combined with leveraging Exhibit 300 forms, helpsstrengthen alignment of the Bureau’sinvestments 

with mission needs by ensuring the CPIC process mapsto the Bureau’sstrategic goalsthrough strategic portfolio reviews. 

The United States Mint Financial Department evaluates the ROI for sustainability projects. The Mint is developing 

internal policy and guidance for calculating ROI, including steps for performing cost benefit analysis and cost effectiveness analysis, following guidance in OMB Circulars A-4 and A-94. Mint projects, initiatives and efforts will be 

prioritized based on lifecycle return on investment while taking into account economic, social, and mission related 

costs and benefits.

DO examines the difference between benefits and costs to ascertain the net present value so senior leadership can determine whether a project is justifiable on economic principles or not, or which project from a range of options is the 

most economically feasible. Operations and Maintenance costs are listed over a period of performance. This approach 

of considering costs and benefits can also be used to determine the risks of deferred investments, by analyzing the socalled “do-nothing” option against the range of other investments. Properly characterizing the potential costs associated
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with deferring investments allows managers to make decisions based on the range of possibilities and unintended 

consequences.

b. Social, Environmental, and Mission-Specific Costs and Benefits

The Office of Environment, Safety and Health has been working with the DO and Bureau Budget Offices to provide 

guidance on how to consider social and environmental costs and benefits for major initiatives in the coming years. 

Specifically on the issue of greenhouse gas emissions, Treasury will use a Social Costs of Carbon (SCC) model as an 

ROI input for sustainability related projects that may appear not to be cost beneficial considering initial economic investments balanced against annualized savings. Savings may be in the form of decreased energy purchases and decreased 

operating and maintenance costs.

This approach will involve two steps: 1) Determining the amount of carbon dioxide that the project will prevent from 

being released; 2) Multiplying that amount by an acceptable cost/carbon coefficient; and 3) Applying this product as

a benefit over the period of performance. The amount of carbon dioxide deferred will be determined based on coefficients 

provided by the Department of Energy Federal Energy Management Program (FEMP) in their spreadsheets to help 

determine greenhouse gas Scope 1, 2, and 3 emissions. For instance, if an energy efficiency project is projected to save 

X number of Mega-Watt Hours of electricity annually, the budget analyst will multiply that number by the coefficients 

that convert energy usage to metric tons of carbon dioxide equivalent, or mtCO2e.

The amount of deferred carbon released will then be monetized by multiplying the mtCO2e by the SCC, based on the 

results of the Interagency Working Group on Social Cost of Carbon, United States Government as documented in the 

Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order 12866 . Currently that value is $21.40 

per metric ton of CO21. The SCC accounts for changes in net agricultural productivity, human health, property damages 

from increased flooding, and the value of ecosystem services.

c. Operations & Maintenance and Deferred Investments

Each bureau is responsible for implementing projects to reduce energy consumption (e.g., electricity, natural gas, petroleum) and consequently decrease greenhouse gas emissions. These projects will be tracked quarterly by the Bureau 

responsible for funding each project. The metrics will be confirmation that the project was started by the proposed 

start date, and percent progress on the project measured against the proposed completion date. A longer term metric

is to measure the decreases in energy used. Initiatives to decrease the size of our fleet, purchase more efficient vehicles, 

and decrease miles driven will be tracked by the Office of Asset Management. We are also in the process of determining 

how we may be able to use budgetary systems to track costs of projects as well.

The Treasury bureaus identified 30 projects over the next 3 years related to energy and sustainability resource investments. This information has been submitted to OMB through the Circular A-11, Section 25 process.

d. Climate Change Risk and Vulnerability

Treasury is a large agency with facilities throughout the United States. We have facilities on the coasts, such as the

San Francisco Mint, that will likely be impacted more directly due to climate change than other facilities. In June of

2011, Treasury will issue its climate change adaptation policy. This will be followed by other analyses to increase 

understanding of the possible effects of climate change on the Treasury mission and its operations.
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VI.Transparency

The complete Strategic Sustainability Performance Plan will eventually be available on the Fed Center website. Results 

of the Treasury Greenhouse Gas Inventory can be found on data.gov and the OMB Sustainability and Energy Scorecards 

are now being posted on the White House Council on Environmental Quality (CEQ) webpage.

Section 2: Performance Review & Annual Update

I. Summary of Accomplishments

Treasury has worked hard to continue our leadership in environmental management in the past year. We were honored 

to again receive green ratings in all measured areas of the Office of Management and Budget Sustainability and Energy 

Scorecard. There have been significant steps taken to ensure environmental sustainability throughout all Treasury 

bureaus. Some specific initiatives and accomplishments are discussed in this section.

Renewable Energy/Energy Efficiency: Treasury has increased its purchase of Renewable Energy Credits (RECS). 

Currently, all the energy required to power the Denver Mint, Main Treasury and Treasury Annex buildings in Washington, DC is from renewable sources through these certificates.

In FY 2009, the United States Mint at Philadelphia completed a comprehensive energy and water evaluation and retrocommissioning. The retro-commissioning uncovered 21 energy conservation measures, eleven of which were closed 

out in FY 2010. This resulted in a total energy savings of 2,022,180 kWh of electricity and 7,839 Mlbs of steam, for

a reduction in Scope 1 and 2 GHG emissions of 1,050 MTCO2e and 1,380 MTCO2e, respectively. The impact for the

Mint was a reduction in the Bureau’s Scope 1 and 2 GHG emissions of five percent below the FY 2008 baseline.

IRS is working to reduce energy use and green their consumption activities. In FY10, IRS reduced energy intensity 

by 17 percent from FY03 baseline levels at facilities for which they are responsible for operations and maintenance. 

IRS also purchased over 9 percent of our electricity through Renewable Energy Credits. In addition, our Andover, 

Austin and Memphis campuses have received the Energy Star rating for the past three years.

In FY 2010, the Mint obtained 11.8 percent of its total energy from renewable sources. This exceeds the requirement 

of the EPAct for all Federal agencies to obtain five percent of their total energy from renewable sources by FY 2010 

and 7.5 percent by FY 2013. In FY 2010, the Mint successfully concluded a Power Purchasing Agreement to supply 

the Denver Mint with wind energy for 100 percent of its electricity use. This reduced the facility’s GHG emissions by

3,762 MTCO2e and the bureau’s Scope 1 and 2 GHG emissions by eight percent below the FY 2008 baseline.

To meet the energy reduction targets, the Bureau of Engraving and Printing (BEP) replaced and renovated many utility 

infrastructure components with higher efficiency components. Completed projects from FY 2010 to 2nd quarter of FY

2011 include rebuilding the compressed air plant at BEP’s Washington DC Facility (DCF), and replacing the thermal 

oxidizer and controls on air handling units serving production areas at the Western Currency Facility (WCF). The outyear plan includes rebuilding the chiller plant, replacing lighting, and replacing three steam boilers at WCF; installing 

a supervisory control and data acquisition (SCADA) system to monitor and control utilities equipment, and installing 

variable frequency drives (VFDs) on cooling towers at DCF. The BEP utilizes and will continue to utilize the UESC 

vehicle to accomplish most of these projects.

Greening theTreasury Fleet. In FY2010, Treasury eliminated 15 SUVs, and purchased 19 hybrid vehicles. Petroleum 

use has decreased over 50% from the 2005 baseline which is well above the 10% established FY2010 goal. Currently,
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25% of the Senior Executive Fleet has been replaced with more fuel efficient vehicles. In June 2011, a 240 volt AFV

charging station will be installed at the Main Treasury building.

Greenhouse Gas Scope 1 and 2 Commitments: Treasury set an ambitious goal to reduce GHG emissions 33% by

2020. Results of the FY 2010 GHG inventory reveal a 13.9% reduction from the 2008 baseline figure. We have 

identified 30 energy efficient facility projects and numerous opportunities to green our fleet that will continue to help 

us accomplish this goal.

Electronic Stewardship: Treasury has made significant progress in the areas of electronic stewardship and power 

management.

Server Virtualization: The IRS virtualization project goal is to virtualize serversin the Data Centersin order to reduce 

the real estate footprint. This effort focuses both on new systems and servers that are overdue for refreshment. The 

IRS is virtualizing its x86 environments and to date has virtualized over 400 serversin the lab/development environment, 

over 1300 servers in the production environment, and over 400 servers in other business unit environments. Approximately 2,000 physical servers are projected to be retired as a result of virtualization by the end of FY 2013.

Sustainable Buildings: The former multiple building IRS Philadelphia campus was vacated and released as of April

15, 2011, and IRS is now occupying a renovated historic facility in Philadelphia, which they believe will receive 

Leadership in Energy and Environmental Design (LEED) Silver certification. In addition, in Memphis, a Utility Energy 

Services Contract was awarded for the implementation of energy conservation measures.

Additionally, the new Real Estate Facilities Management Headquarters office in Arlington, Virginia opened as a prototype office that serves as a model for future IRS office designs. The workstations are an innovation in office design 

that incorporates translucent panels that allow natural light to permeate the workplace. The space uses the Intelligent 

Office Workplace Alternatives (IOWA) concept, providing workstations that house employees who come to the office regularly as well as "hoteling”/shared workstations for employees who telework. The office space is also LEED 

Silver certified for commercial interiors.

Data Center Consolidation: This year the IRS has focused a thorough examination of physical data centers and 

hardware infrastructure inventories. Through a Preliminary Inventory Assessment for the Treasury Data Center Consolidation initiative: 15 data center locations were identified, housing over 4800 servers on 1300 racks and hosting

475 major business applications. The centralization of servers and server virtualization efforts are a priority for the 

IRS. IRS is working to complete a comprehensive utilization review at 15 primary data centers. The review will be 

used to inform data center consolidation efforts currently being planned. The Treasury Data Center Consolidation Plan 

was implemented in August of 2010.

II. Goal Performance Review

GOAL 1: Scope 1 & 2 Greenhouse Gas Reduction

a. Goal Description – The Department of the Treasury will reduce Scope 1 and 2 Greenhouse Gas emissions 33% by

2020, as compared with the 2008 baseline. 

This goal has the following sub-goals:

a. Buildings

1) Reduce Facility Energy Intensity
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2) Renewable Electricity Installation & Use

3) Reduce per capita energy consumption through space management policies. 

b. Fleet

1) Reduce Petroleum Use in Fleet Vehicles

2) Increase Use of Alternative Fuels in Fleet AFVs

3) Optimize Use of Vehicles and Right-Size Fleet

4) Increase Use of Low Emission and High Fuel Economy Vehicles

5) Replace conventional senior executive fleet with low-GHG emitting, highly-efficient vehicles.

6) Agencies operating shuttle buses should discuss efforts to streamline existing routes by consolidating ridership 

with other agencies. Identify specific challenges related to consolidation of and/or sharing of transportation services 

with other agencies.

7) Discuss agency’s effortsto implementsustainable transportation options by: acquiring low GHG emitting vehicles 

such as hybrids and AFVs; optimizing the number of vehicles in the agency's fleet, using alternative fuel in AFVs and 

FFVs; developing alternative fuel infrastructure; direct spending on training; and procurement of environmentally 

preferable motor vehicle products. Identify specific challenges in implementing these or other items related to implementation of sustainable transportation within your agency.

b. Agency lead for goal – The overall progress toward the goal will be the responsibility of the Office of Environment, 

Safety, and Health, Departmental Offices Operations, under the Office of the Assistant Secretary for Management 

(ASM). The Head of each bureau will ultimately be responsible for implementing energy reduction projects and decreases 

to fleet inventories within their bureaus, but the operational responsibilities are designated down, as explained in the 

Implementation methods section below.

c. Implementation methods –

Buildings:

Treasury identified 30 energy efficient initiatives to improve building efficiencies and reach energy reduction goals. 

Also, bureaus have been asked to reconsider their existing fleets and make changesin terms of total number of vehicles, 

size of vehicles, and use of alternative fuels. The projects are being tracked by the Office of Environment, Safety, and 

Health, within Departmental Offices Operations. The bureaus report regularly on progress in starting the projects and 

progress toward completion. Agency Directives and Implementation Plans, such as the Sustainable Buildings Implementation Plan and the Electronics Stewardship Implementation Plan, were updated in FY2010 to include guidance 

to reduce GHG emissions.

At the field level, each bureau has a representative responsible for implementing energy reduction projects and offices 

responsible for audits and corrective actions. For example, at Treasury’s largest bureau, the IRS, the Agency Lead is 

the Director of Real Estate and Facilities Management, Agency-Wide Shared Services. A sampling of approaches 

taken by some of the Bureaus to reduce Scope 1&2 GHG emissions are highlighted here.

The GSA, in collaboration with the IRS, is implementing several ARRA-funded improvement projects. In Austin, the 

ARRA project has included replacing chillers, cooling towers, fans, and hot/chill water piping to increase efficiency. 

The project is also planned to encompass retrofitting the lighting, installing new motors and variable frequency drives
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on air handlers, upgrading the building automation system, sealing exterior doors, and installing a solar photovoltaic 

system. Efficiency improvements are projected to help reduce energy consumption and GHG emissions starting in 

FY11 and continuing through FY12. As in Austin, the Ogden campus ARRA project also includes lighting retrofits, 

as well as repairs to the fan systems and variable air volume (VAV) boxes. Emissions and energy reductions from the 

Ogden efforts are projected to be realized in FY12. In Brookhaven, the ARRA project will include the replacement of 

old chillers with new energy-efficient chillers, the installation of a new computerized building management system 

controlling heating and air-conditioning, and an upgrade of parking lot lighting. The Brookhaven ARRA project is 

projected to yield energy and emissions savings after FY12. The ARRA project in Andover will provide for a complete 

interior renovation for the facility, install a geothermal HVAC system and energy efficient lighting, as well as a new 

roof for the facility, significantly reducing energy usage. The Andover facility has been designed to receive LEED 

Silver Certification, with projected energy savings starting in FY11 and being fully realized in FY13.

In addition to the projects designed to reduce emissions, in FY10, the National Energy Program Manager (NEPM)

purchased over 9 percent of IRS FY10 energy purchases through Renewable Energy Credits to help meet energy goals.

Currently, the United States Mint at Philadelphia purchases steam for its operations from a provider that generates 

steam using electricity from a coal-intensive electric grid. The Philadelphia Mint will switch from this purchased steam 

to steam generated on-site produced using natural gas boilers, which is less carbon intensive. The Denver Mint will 

also implement the same project, even though the facility’s steam is provided by a vendor who uses natural gas, because 

switching to site-generated steam will reduce the facility’s Scope 3 GHG emissions from transmission and distribution 

losses associated with purchased steam. The estimates are that this project will reduce the Bureau’s Scope 1 and 2

GHG emissions by 12.2 percent and help the Mint achieve the EISA requirementsfor reducing building energy intensity.

Three existing boilers at the BEPs Western Currency Facility (WCF) in Ft. Worth, Texas will be replaced with new 

high efficiency, low nitrogen oxide boilers. Funding was approved inApril of 2011 at an investment cost of $2.5 million. 

This project is expected to be completed at the end of FY 2012 and will result in an estimated reduction of 2433 

metric tons of carbon dioxide emissions.

At present, the Mints at Denver and Philadelphia leave their circulating coin presses on when not being used for production. The Mint will install a “sleep mode” on circulating coin presses to reduce its energy consumption when not 

in use. The Mint estimates that this project will reduce the Bureau’s Scope 1 and 2 GHG emissions by 4.4 percent 

and help the Mint achieve the EISA goal for reducing building energy intensity.

Install five new energy efficient chillers in Central Power Plant to replace existing chillers. This project also eliminates 

Ozone Depleting Substances (ODS). Investment cost is $3.6 million. Estimated energy reduction is 1.5 MM KwH 

per year. This project is underway and completion is now estimated to be June 2011.

Fleet:

The Fleet Management office has ordered three Chevrolet Volt electric vehicles that are scheduled to arrive by the 2

nd 

Quarter of FY2012. One is to go to the IRS in Los Angeles, CA, and the other 2 will be used by BEP and DO in the 

Washington, DC area.

The Bureau of Engraving and Printing (BEP) has taken aggressive measures to continuously right-size the fleet to reduce 

fossil fuel usage, increase alternative fuel usage, and reduce greenhouse gas emissions. The reduction of the fleet included 

the use of the minimum standard vehicles(4-cylinder) that meet the minimum emissions and alternative fuel requirements. 

In conjunction, we have had success in reducing our agency fleet usage requirements by encouraging the use of public/mass transportation, combining trips, car pooling, and teleconferencing and video conferencing whenever possible.
15

Internal policy reviews have been performed annually to ensure management oversight and fleet program control 

measures are enforced.

The BEP has been able to reduce the number of vehicles in the motor pool by 31% (48 vehicles in 2005 to 33 vehicles 

in 2010). To meet the petroleum fuel reduction and non-petroleum (alternative/E-85) fuel increase targets, BEP has 

converted all vehicles in the motor pool (excluding some mission critical law enforcement vehicles) from petroleum 

only to alternative/flex fuel. The BEP has consistently held the alternative fuel to petroleum fuel ratio above 75% in 

FY 2008, FY 2009 and FY 2010. The BEP has also consistently exceeded petroleum fuel reduction and non-petroleum 

fuel increase targets of 2% and 10% per year respectively from FY 2005 thru FY 2009. The “right sizing” of the fleet 

has also contributed significantly to the Bureau’s reduction in greenhouse gas emissions. The BEP has reduced 

greenhouse gas emission by 8% from FY2009 to FY2010 (from 9.2 to 8.5 metric tons of CO2e).

d. Positions – The work to reduce GHG emissions is primarily completed by dedicated employees in the larger 

Treasury bureaus that own their own buildings or have delegated lease authority. These bureaus include the IRS, US 

Mint, BEP, OTS, and DO who have dedicated energy and environmental staff. In the smaller bureaus that do not own 

their buildings but do have fleets, employees often perform these tasks as collateral duty. At this time, Treasury has 

not identified a need to increase FTEs to accomplish this goal2

e. Planning Table – The following table illustrates the annual percent reduction targets for various items that impact

Scope 1 and 2 GHG emissions.

. SCOPE 1&2 GHG TARGET Unit FY10 FY11 FY12 FY13 FY14 FY15 ... FY20

...

...

30

...

...

...

...

Buildings

Buildings

Buildings Energy Intensity Reduction Goals

(BTU/SF reduced from FY03 base year) % 15 18 21 24 27 30

Buildings Planned Energy Intensity Reduction

(BTU/SF reduced from FY03 base year) %

Buildings Renewable Electricity Goals

(Percent of electricity from renewable sources) % 5 5 5 7.5

Buildings Planned Renewable Electricity Use

(Percent of electricity from renewable sources) %

Fleet Petroleum Use Reduction Targets

(Percent reduction from FY05 base year) % 10 12 14 16 18 20

Fleet Planned Petroleum Use Reduction

(Percent reduction from FY05 base year) %

Fleet Alternative Fuel Use in Fleet AFV Target

(Percent increase from FY05 base year) % 61 77 95 114 136 159

Fleet Planned Alternative Fuel Use in Fleet AFV 

(Percent increase from FY05 base year) %

Fleet

Senior Executive Fleet Replaced with Low-GHG, High

Efficiency Vehicles

(Percent replaced from FY08 base year)

%

. Other as defined by agency
16

. SCOPE 1&2 GHG TARGET Unit FY10 FY11 FY12 FY13 FY14 FY15 ... FY20

.

Total Scope 1&2 GHG Emissions

(Comprehensive) MMTCO2e ...

...

...

.

Total Scope 1&2 GHG Emissions

(Subject to Agency Scope 1&2 GHG Reduction Target) MMTCO2e

.

Overall Agency Scope 1 & 2 Reduction

(reduced from FY08 base year) %

Goal-Specific Items

f. Agency status – FY2010 represents the first year that Treasury has conducted a complete GHG inventory. The 

resulting Scope 1&2 data indicates nearly a 14% reduction in emissions as compared to the FY2008 baseline. Treasury 

set an aggressive goal of reducing GHG 33% by 2020 and the inventory results place us ahead of our planned goal. 

Treasury bureausidentified 30 projectsto reduce energy usage and several opportunitiesto green the fleet. Some projects 

are currently being designed and implemented, and we continue to track the progress of these projects. We are also 

continuing to explore ways to measure progress through the budgeting system. A number of other factors should help 

all agencies to move toward their goals, as we assume that there will generally be more “green energy” available.

Treasury used the Department of Energy’s Federal Energy Management Program’s (FEMP) Annual GHG and Sustainability Data Report to collect agency-aggregated data necessary for calculating Scope 1, 2, and 3 GHG emissions in 

the commonly-used, native units of energy consumption and fugitive emissions as well as activity data for estimating 

Scope 3 indirect emissions. The workbook aligns with the CEQ GHG Reporting Guidance and transparently incorporates 

all of the approved methodologies and conversion factors contained in the GHG ReportingTechnical Support Document. 

It provides users with the summation of their calculated emissions as well as other performance results for other sustainability goals.

This new Data Report also satisfies previous agency reporting requirements to FEMP for facility and operations energy 

and water use. The Data Report also accepts outputs from the Federal Automotive Statistical Tool (FAST) to calculate 

the GHG emissions from Federal covered fleet fuel use.

g. Return on Investment – Currently, there have been no projects or initiatives cancelled or suspended due to a lower 

than expected return on investment (ROI). Likewise, no projects have been expanded due to a higher than expected 

ROI.

h. Highlights – The IRS has created a governance process and a tracking database to use in the identification and 

evaluation of projects designed to improve energy efficiency and the environment. This Energy Project Prioritization 

Database (EPPD) will track project descriptions, cost measures, timelines, projected energy and water savings, savings 

to investment ratio, and other relevant measures. Proposed energy efficiency projects will be evaluated through the 

EPPD and through a process involving subject matter expert review and leadership approval.

On August 1, 2010, the Denver Mint signed an agreement with its local utility (Xcel Energy) to power the facility with

100 percent renewable electricity from wind energy. In FY 2010, they obtained 5,106 MWh of renewable electricity 

from wind power as a result of this project. Thisreduced the Denver Mint’s Scope 1 and 2 GHG emissions by 21 percent. 

Overall, the project reduced the United States Mint’s Scope 1 and 2 GHG emissions by nine percent in FY 2010, from

42,016 MTCO2e to 38,253 MTCO2e.

Beginning in FY 2011, the project will supply the Denver Mint with 13,000-18,000 MWh of renewable electricity 

each year. This will reduce the facility’s Scope 1 and 2 GHG emissions by approximately 70 percent and the Bureau’s
17

Scope 1 and 2 GHG emissions by approximately 26 percent below the FY 2008 baseline. This project resulted in the 

United States Mint successfully achieving the EPAct 2005 and EO 13423 requirements for agency renewable energy 

installation and use.

For the WCF (BEP), the reduction of Scope 1 and 2 GHG emissions centers on several projects to include: 

Replacment was completed January 19, 2010 of the thermal oxidizer with a more energy efficient version. For one

complete year of operation the natural gas use by the regenerative thermal oxidizer (RTO) has been reduced 37%

(normalized by production days) and overall the total facility consumption of natural gas has been reduced by 3.7%.

GOAL 2: Scope 3 Greenhouse Gas Reduction & Develop and MaintainAgency Comprehensive

Greenhouse Gas Inventory

a. Goal Description – The Department of the Treasury will reduce Scope 3 Greenhouse Gas emissions 11% by 2020, 

as compared with the 2008 baseline.

This goal has the following sub-goals:

a. Reduce GHG emissions from Treasury employee business travel and commuting 

b. Reduce contracted waste diverted to landfills

c. Reduce Transmission and Distribution loss associated with power transfer to Treasury facilities

d. Discussion of planned Treasury activity or policy implementation to improve data accuracy and overall data collection 

and analysis methods related to Scope 3 GHG emissions.

e. Discussion of the methods used by Treasury to calculate its scope 3 GHG emissions. 

f. Discussion of the development of Treasury's FY 2010 Greenhouse Gas inventory.

b. Agency lead for goal – The sub-goals have different areas of responsibility. The reduction of Transmission and 

Distribution (T&D) is directly related to the reduction in overall energy use. The measure of progress toward this goal 

will be the responsibility of the Office of Environment, Safety, and Health, Departmental Offices Operations, under 

the Office of the Assistant Secretary for Management (ASM). The Head of each bureau will ultimately be responsible 

for implementing energy reduction projects within their bureaus, but the operational responsibilities are designated 

down, as explained in the Implementation methods section for Goal 1. These same offices will be responsible for the 

reduction in waste diverted to landfills. The Office of Assets Management under the ASM is the Office that oversees 

the Treasury fleets and will be responsible for tracking reductionsin businesstravel. The Bureau Heads will be responsible for implementing policies to assist in decreasing travel including commutes, but the operational responsibilities 

are designated down, as explained previously.

c. Implementation methods – The inventory was developed using guidance from the Federal Energy Management

Program (DOE) and includes the following:

· Purchased electricity transmission and distribution losses;

· Business air travel;
18

· Business ground travel;

· Employee commuting;

· Contracted solid waste; and

· Contracted wastewater treatment.

The transmission and distribution losses are directly related to the amount of energy that is consumed, and Treasury’s 

plan to decrease energy usage that is explained in the Scope 1 and 2 Greenhouse Gas Reduction goal. Business air 

travel, business ground travel, employee commuting, and contracted wastewater treatment are all dependent on how 

many employees are in the agency. Treasury will likely increase in size due to anticipated staff increases at IRS, 

therefore it is difficult to accurately predict how many FTE will be in the Department in 2020. However, for purposes 

of goal setting, we have assumed steady state on the number of employees between 2008 and 2020. To decrease both 

business travel and commuting, our bureaus will continue to experiment with alternate work arrangements and alternatives to business travel to decrease the Scope 3 emissions, but approach specific targets in a way to ensure the agency 

continues to meet its mission goals.

We have already taken significant steps to green our fleet, as was discussed earlier. Recent information from the 

Treasury Travel Program indicates that some rental car companies are offering hybrid vehicles with government rates. 

However the rental rates are typically 22% higher and the rental company must be contacted directly.

Employees at the BPD are encouraged to attend meetings via video or phone conferencing when possible. When travel 

is necessary, employees are encouraged to travel together and use the most efficient vehicles needed for the trip.

Treasury used the Default Methodology Survey located on the FEMP Reporting Portal website to collect commuter 

information used to calculate the Scope 3 emissions estimate. The survey provided a “bare-bones” approach and required 

input information about the total number of miles travelled during FY2010 using each of the common modes of 

transportation (personal vehicle, van, car pool, bus, transit rail, etc.). The link to the anonymous survey was emailed 

to Treasury employees by the individual Bureau points of contact.

In order to determine contracted solid waste disposal levels and Scope 3 emissions from waste disposal, IRS utilizes 

waste management records from facilities over which it has operations and maintenance control. The IRS also uses 

energy bills and site records regarding electric/natural gas/steam use and wastewater treatment to calculate Scope 1 

and 2 emissions. IRS field sites submit data for their specific facilities, and IRS Headquarters Real Estate & Facilities 

Management employees review field data prior to submission. IRS is confident in the accuracy of the inventory data 

due to the fact that it is based on actual records from energy, utility and waste contracts.

The IRS analyzes the waste stream to determine possibilities to help the agency meet the goal. Currently there are aggressive recycling programs in place, so new opportunities may be limited.

TTB noted that they monitor employee travel in order to evaluate and analyze travel trends. This allows them to implement strategies and accommodations for transit, travel, training, and conferences that will actively reduce carbon 

emissions associated with commuting and travel by agency staff. They promote webinars and live meeting sessions 

through Microsoft Outlook, teleconferences and video conferences.

d. Positions – The work on tracking and reducing GHG emissions, including scope 3, is primarily completed by dedicated employees in the larger bureaus, and often as collateral duty by employees in the smaller bureaus. At this time, 

Treasury has not identified a need to increase employees to accomplish this goal.
19

e. Planning Table – The following table illustrates the annual percent reduction targets for various items that impact

Scope 3 GHG emissions.

SCOPE 3 GHG TARGET Units FY10 FY11 FY12 FY13 FY14 FY15 ... FY20

Total Scope 3 GHG Emissions

(Comprehensive) MMTCO2e .536565 ...

...

... 11

Total Scope 3 GHG Emissions

(Subject to Agency Scope 3 GHG Reduction Target) MMTCO2e .536565

Overall Agency Scope 3 Reduction

(reduced from FY08 base year) % 0 1.1 2.2 3.3 4.4 5.5

Other, as defined by agency % ...

Goal-Specific Items

f. Status – This is the first year that Treasury has conducted a complete GHG inventory. Treasury takes advantage

of a GHG Inventory Management Plan (IMP) to provide a framework for the management of GHG accounting within 

the Agency. The IMP is a way to manage inventory quality and outlines the data, methodologies, and tools required

to perform the annual GHG inventory in an accurate, reliable, and repeatable manner. Details related to GHG data 

collection and verification methods can be found in the IMP. Notable challenges facing Treasury bureaus include how 

to handle furnace shut-downs associated with the move to a four-10 hour day work schedule at the U.S. Mint in Denver. 

The availability of alternative fuel vehicle refueling stations continues to be an issue on a nationwide basis. Also, 

Congressional mandates relating to raw materials for both paper money and coins limit Treasury’s ability to explore 

more sustainable feedstock.

Inventory results indicate a 4% increase in Scope 3 emissions as compared to the FY2008 baseline. This could be a 

result of improved data collection techniques resulting in more accurate inventory information for 2010 as compared 

to 2008. We will continue to adjust the FY2008 figures as inventory collection methods improve. Treasury set a goal 

of reducing Scope 3 GHG emissions 11% by 2020 which remains a very realistic and attainable goal.

g. Return on Investment – Currently, there have been no projects or initiatives cancelled or suspended due to a lower 

than expected return on investment (ROI). Likewise, no projects have been expanded due to a higher than expected 

ROI.

h. Highlights – N/A

GOAL 3: High-Performance Sustainable Design / Green Buildings & Regional and Local

Planning

a. Goal Description – The Department of the Treasury will increase the inventory of buildings meeting the Guiding

Principles for Federal Leadership in High Performance and Sustainable Buildings (i.e., Guiding Principles). 

This goal has the following sub-goals:
20

a. Beginning in FY 2020, all new Treasury buildings are to be designed to achieve zero-net energy by FY

2030.

b. All new construction, major renovation or repair and alteration of Treasury buildings will comply with 

the, “Guiding Principles for Federal Leadership in High Performance and Sustainable Buildings (Guiding Principles),” 

in.

c. At least 15% of Treasury’s existing government-owned buildings, agency direct-leased buildings, delegated 

authority leased buildings, and FRPP-reported leased buildings meet Guiding Principles by FY 2015 [5,000 GSF 

threshold for existing buildings and building leases].

d. Demonstrate annual progresstoward 100% conformance with Guiding Principlesfor entire building inventory 

by 2015 and thereafter.

e. Incorporate sustainable practices into Treasury’s policy and planning for new Federal facilities and leases, 

and into lease renewal strategies.

f. Demonstrate use of cost-effective, innovative building and sustainable landscape strategies to minimize 

energy, water and materials consumption.

g. Operate and maintain, and conduct all minor repairs and alterations for existing building systems to reduce 

energy, water and materials consumption in a manner that achieves a net reduction in agency deferred maintenance 

costs.

h. Optimize performance of Treasury’s real property portfolio – dispose and consolidate excess and underutilized property, co-locate field offices, consolidate across metropolitan and regional locations.

i. Reduce need for new building and field office space by utilizing technologies to increase telework opportunities and expand delivery of services (over the internet or electronically).

j. Conserve, rehabilitate, and reuse historic Federal properties, using current best practices and technology. 

k. Align Treasury space actions (new leases, new construction, consolidation) with agency Scope 1&2 and

Scope 3 GHG reduction targets.

b. Agency lead for goal – The overall progress toward the goal will be the responsibility of the Office of Asset Management, under the Office of the Assistant Secretary for Management (ASM). The Head of each bureau will ultimately 

be responsible for implementing sustainable design projects within their bureaus, but the operational responsibilities 

are designated down, as previously explained.

c. Implementation methods – All new construction or major renovations to federal buildings that are occupied by 

the Treasury will comply with the Guiding Principles, since GSA now requires all new construction and major renovationsto meet Leadership in Energy and Environmental Design (LEED) Silver certification. Treasury continues exploring 

options for increasing sustainability and meeting Guiding Principles in leased space, and is considering including 

LEED provisionsin future lease agreements, though we have notset specific targets, which will require further dialogue 

with GSA. Treasury will pursue waysto promote water and energy efficiency, improve indoor environments and reduce 

the impact of materials and sustainable designs in buildings occupied by Treasury. The US Mint and Departmental 

Offices are conducting assessments to achieve the US Green Building Council’s (USGBC) Leadership in Energy and 

Environmental Design (LEED) silver or platinum certification by 2015. The IRS continues to explore ways to pursue 

LEED ratings within the context and control of their lease agreements. In addition, Treasury occupies several facilities 

that have achieved the Environmental Protection Agency Energy Star rating.
21

In IRS facilities for which we have operations & maintenance control, as equipment repairs and replacement become 

necessary, the NEPM and FEMs seek to procure more energy-efficient equipment that will help to reduce energy use. 

The IRS O&M contracts specify that equipment repairs and replacements must utilize higher efficiency Energy Star 

equipment whenever possible.

As of April 28, 2011, 11% of IRS’ direct leased inventory meets the Guiding Principles. The Human Capital Office 

is currently developing an updated IRS telework policy.

The BPD has taken steps to reduce water consumption through landscaping irrigation efficiencies which include: 

weekly adjustment of the irrigation controller (timer) run time to allow for seasonal changes in weather, only running 

sprinklers during the morning hours, taking steps to reduce water run-off, ensuring sprinkler heads are not blocked by 

vegetation, and using drip irrigation where practical

d. Positions – The work on making Treasury’s inventory of buildings compliant with the Guiding Principles is 

primarily completed by dedicated employees in the larger bureaus, and often as collateral duty by employees in the 

smaller bureaus. At this time, Treasury has not identified a need to increase FTEs to accomplish this goal.

e. Planning Table – The following table illustrates the annual percent targets for Treasury owned and leased facilities 

to be in compliance with the Guiding Principles. (Note: Treasury has not set a specific goal for leased facilities, but 

instead has relied on GSA to secure leases in such buildings. Treasury has, however, communicated with GSA that it 

is our desire to work in buildings that meet the Guiding Principles).

GOAL 3 Targets Units FY10 FY11 FY12 FY13 FY14 FY15 ... FY20

Owned Buildings % 0 9 9 18 18 18 ...

FRPP-Reported Leased Buildings % 0 ...

Total Buildings % 0

Other

(Buildings), as defined by agency

Other

(Reg/Local Planning), as defined by agency

Goal-Specific Items

9 9 18 18 18 ...

...

...

f. Agency status – This year continued Treasury’s progress toward ensuring our buildings are sustainable. Treasury 

owns 11 buildings and leases the remainder. We have identified two buildings, Treasury’s Main Building and the U.S. 

Mint in West Point, to apply for LEED certification. Main Treasury LEED Certification application paperwork was 

submitted in April 2011 to the USGBC. Certification is expected in late May or early June of 2011. This achievement 

along with LEED certification of the West Point facility, will accomplish our goal of having 15% of our buildings 

meet the Guiding Principles through our LEED certification.

g. Return on Investment – Currently, there have been no projects or initiatives cancelled or suspended due to a lower 

than expected return on investment (ROI). Likewise, no projects have been expanded due to a higher than expected 

ROI.

h. Highlights – The United States Mint at San Francisco has installed a “cool roof”. The new roof is a combination 

of a white roof that reduces the urban heat island effect and a green roof that reduces stormwater runoff and provides
22

a habitat for wildlife. The project satisfied the LEED requirements for construction waste management, material reuse, 

recycled content and regional materials.

Regional and Local Planning

a. Goal Description – The Department of the Treasury will ensure that regional and local planning includes consideration of environmental impacts.

This goal has the following sub-goals:

a. Incorporate consultation with local and metropolitan planning organizations regarding the impact, or potential impact, of Federal actions on local transportation infrastructure and local development plansinto existing policy 

and guidance.

b. Align agency policies to increase effectiveness of local planning efforts regarding transportation, energy 

resources and the environment.

c. Increase effectiveness of regional measures that enhance integrity of local ecosystems and watersheds.

d. Update Treasury policy and guidance to ensure that all Environmental Impact Statements (EIS’s) and Environmental Assessments (EA’s) required under the National Environmental Policy Act (NEPA) for proposed new or 

expanded Federal facilities, and as appropriate, identify and analyze impacts associated with energy (including alternative energy sources) and climate change.

e. Integrate methods and practices necessary to achieve the goals of this plan into Treasury master planning 

documents (i.e., high-performance, sustainable building goals, pollution prevention and waste reduction goals, water 

use reduction goals, sustainable acquisition goals, electronic stewardship and data center consolidation, etc.).

f. Update Treasury policy and guidance to ensure coordination and (where appropriate) consultation with 

Federal, State, Tribal and local management authorities regarding impacts to local ecosystems, watersheds and environmental management associated with proposed new or expanded Federal facilities.

g. Discuss Treasury participation in critical local and regional efforts and initiatives (i.e., Executive Order 

on Chesapeake Bay Protection and Restoration, Executive Order on Stewardship of the Ocean, Our Coasts, and the 

Great Lakes, etc.).

b. Agency lead for goal – The overall progress toward the goal will be the responsibility of the Office of Asset Management, under the Office of the Assistant Secretary for Management (ASM). The Head of each bureau will ultimately 

be responsible for implementing regional planning within their bureaus, with the operational responsibilities designated 

down, as previously explained.

c. Implementation methods – Existing plans and new “green” contracts will assist with minimizing the impacts to 

local watersheds and ecosystems by providing opportunities to reduce waste streams from Treasury activities. The 

Public Transportation Incentive Program (PTIP) encourages Treasury employeesto commute via public transportation, 

helping to reduce traffic congestion, energy consumption and vehicular pollution. Whenever possible, Treasury will 

work with local transportation planning groups in an effort to bring public transportation opportunities to Treasury 

employees that do not currently have them.
23

Treasury continues to update environmental directives so that NEPA documents for any new construction or building 

rehabilitation will analyze the use of alternative energy sources where possible. Treasury Directive (TD) 72-02 (Acquisition, Utilization, Management and Disposal of Treasury Real PropertyAsset) wassigned by theAssistant Secretary 

for Management and Chief Financial Officer on September 24, 2009. It establishes policy and responsibility for acquiring, using, managing, and disposing of real property assets. This directive complies with Executive Order 13327 

(Federal Real Property Asset Management) and the “Guiding Principles for Asset Management” established by the 

Federal Real Property Council (FRPC) and FRPC and Treasury Strategic and Asset Management Plans. This directive 

also incorporates requirements set forth by E.O. 13423 (Strengthening Federal Environmental, Energy, and Transportation Management) of January 24, 2007, which have been implemented in the Treasury Sustainable Buildings Program 

and Implementation Plan. This plan addresses energy efficiency, acquisition, sustainable buildings goals and requirements 

prescribed in Executive Order 13514, Federal Leadership in Environmental, Energy, and Economic Performance. 

Treasury will include provisions in contracts to ensure conformance with Federal Management Regulations and this 

directive, and encourage lease provisions that support sustainable design and development, energy efficiency, and 

verification of building performance requirements set forth by EO 13423.

Under the Department’s Energy Program (TD 75-04), our bureaus are required to work with GSA and local energy 

providers to achieve economies (by way of energy saving contracts) and to promote innovation and enhance transportation program support initiatives (i.e., TD 74-10 (Public Transit Benefits Program)) in these local areas as well. As 

required byTD 72-02, Treasury bureaus with GSA delegated leasing authority are implementing GSA lease requirements 

and sustainable building location planning and preferencesfor any new facilities and leases consistent with theASM/CFO 

goal to be a leader in environmental management and sustainability.

Treasury Directive 72-03 ( Location of New Offices and Facilitiesin Rural Areas) sets Departmental policy on locating 

new Treasury offices and other facilities in rural areas and conforms to the Rural Development Act of 1972. Under 

this TD, establishment or relocation of any new Treasury facilities(involving more than 50 employees), must be approved 

by the Deputy Chief Financial Officer. The following must be considered: Efficient performance of the Department's 

missions and programs regarding the convenience of the public served, and to the maintenance and improvement of 

safe and healthful working conditions for employees. Other considerations in locating facilitiesinclude: Use of existing 

government-owned facilities which are adequate or economically adaptable; impact on other Treasury organizations, 

Federal agencies, and State and local governments; the proximity to supporting services (equipment maintenance and 

supply, mail, etc.).

d. Positions – The work on regional and local planning is primarily completed by dedicated environmental, energy, 

and/or asset management employees, but may be collateral duty for some staff. At this time, Treasury has not identified 

a need to increase the number of employees to accomplish this goal.

e. Planning Table – Not Applicable.

f. Agency status – Treasury is in the process of reviewing directives to determine how local and regional planning for 

sustainability may be better imbedded into our policies. This goal invokes a larger focus on sustainability considerations 

into our negotiationsfor building space, and invites opportunitiesto co-locate when possible with other Treasury bureaus 

and federal agencies in the area to conserve resources.

g. Return on Investment – Currently, there have been no projects or initiatives cancelled or suspended due to a lower 

than expected return on investment (ROI). Likewise, no projects have been expanded due to a higher than expected 

ROI.

h. Highlights – N/A
24

GOAL 4: Water Use Efficiency and Management

This goal has the following sub-goals:

a. Reduce potable water use intensity by at least 26% by FY 2020.

b. Reduce industrial, landscaping, and agricultural water use by at least 20% by FY 2020. 

c. Identify and implement water reuse strategies.

d. Achieve objectives established by EPA in Stormwater Guidance for Federal Facilities.

e. Incorporate appropriate reduction strategies for non-potable water use into Treasury policy and planning.

b. Agency lead for goal – The overall progress toward the goal will be the responsibility of the Office of Environment, 

Safety, and Health, Departmental Offices Operations, under the Office of the Assistant Secretary for Management 

(ASM). The Head of each bureau will ultimately be responsible for implementing water use reduction projects within 

their bureaus, with the operational responsibilities designated down as previously explained.

c. Implementation methods – The Department of the Treasury continues work to improve water efficiency through 

facility improvements, such as more efficient fixtures, and other means to help achieve reductions in potable and 

landscaping/agricultural water use. The energy managers at each covered facility have established a water management 

plan based on the Federal Energy Management Programs(FEMP) 14 Best Management Practicesfor water management. 

Each site is incorporating the applicable best management practices to reduce potable water consumption. Also, the 

water audits required by EISA 2007 will identify projects for water conservation. Consistent with EPA stormwater 

guidance, any Treasury project involving new construction or rehabilitation to an existing building with a footprint 

greater than 5,000 square feet will attempt to maintain or restore the hydrology of the property regarding temperature, 

rate, volume, and duration of flow.

The BEP is developing strategies to continue reducing water consumption. In addition, BEP is in the process of implementing a wiping solution recycling system. The current wiping solution process (which uses a solution to clean the 

wiping rollers in the Intaglio presses) accounts for approximately 25% of the BEP’s total potable water consumption. 

In FY2011, the BEP expects to implement a system to reduce water consumption from this wiping solution process 

by 95%, amounting to approximately 12 million gallons annually. The BEP is utilizing a Utility Energy Service Contract 

(UESC) for this project and it is estimated that the business case will be submitted by September 1, 2011.

The United States Mint is required to conduct comprehensive energy and water evaluations for one quarter of its 

covered facilities each year. These evaluations frequently identify water conservation measures. The Mint intends to 

implement these water conservation measures by capitalizing them internally or bundling them with cost-effective 

energy conservation measures in UESCs.

The Mint will implement a project to recover condensate from air handling units and use it for cooling tower makeup. This project will be rolled into the proposed Utility Energy Service Contract with Philadelphia Gas Works. The 

simple payback for this project is 11 years, with an annual cost savings of $1,187. The Mint will continue to investigate 

and implement water reuse strategies focusing on the wastewater treatment process.
25

To conform to EPA's reduction of potable water use, BPD has initiated a plan to harvest rain water and air conditioning 

condensation for the purpose of irrigation. This plan will be introduced as part of the energy audit conducted in early 

summer, 2011 for approval.

d. Positions – The work on water management is primarily completed by dedicated energy management employees, 

but may be collateral duty for some staff. At this time, Treasury has not identified a need to increase the number of 

employees to accomplish this goal.

e. Planning Table – The table below illustrates the annual percent targets for reducing water use as compared to the 

baseline year.

Water Use Efficiency & MGMT Units FY10 FY11 FY12 FY13 FY14 FY15 ... FY20

Potable Water Reduction Targets

(gal/SF reduced from FY07 base year) % 6 8 10 12 14 16 ... 26

...

... 20

... 20

Planned Potable Water Reduction

(gal/SF reduced from FY07 base year) % 20

Industrial, Landscaping, and Agricultural Water Reduction Targets

(gal reduced from FY10 base year) % 2 4 6 8 10

Planned Industrial, Landscaping, and Agricultural Water Reduction

(gal reduced from FY10 base year) % 2 4 6 8 10

Other, as defined by agency ...

Goal-Specific Items

f. Agency status – This year continued Treasury’s progress toward reducing water use. In FY 2010, Treasury reduced 

usage by approximately 20% compared to the 2007 baseline by implementing best management practices at our covered 

facilities. Treasury also updated the Energy Management Program directive in FY 2009 to explicitly require bureaus 

to reduce water consumption by at least 2 percent annually, or 16 percent by the end of 2015. Treasury has already 

surpassed that goal.

g. Return on Investment – Currently, there have been no projects or initiatives cancelled or suspended due to a lower 

than expected return on investment (ROI). Likewise, no projects have been expanded due to a higher than expected 

ROI.

h. Highlights – The Facility Energy Manager (FEM) at each covered IRS facility has established a water management 

plan based on the Federal Energy Management Programs (FEMP) Best Management Practices for water management. 

Each site is incorporating the applicable best management practices to reduce potable water consumption. Also, the 

water audits required by EISA 2007 are utilized to identify projects for water conservation.

In FY 2009, the United States Mint at Philadelphia completed a comprehensive energy and water evaluation and retrocommissioning. The water evaluation uncovered numerous water conservation measures that the Mint successfully 

implemented in FY 2010. This reduced the facility’s water consumption from 25 million gallons in FY 2007 to 19.5 

million gallons in FY 2010.
26

GOAL 5: Pollution Prevention and Waste Reduction

a. Goal Description- The Department of the Treasury will reduce pollution by applying strategies at the sources of 

generation.

a. Increase source reduction of pollutants and waste.

b. Divert at least 50% non-hazardous solid waste by FY 2015, excluding construction and demolition (C&D)

debris.

c. Discuss Treasury strategies to reduce municipal solid waste sent to landfills and how implementation will 

assist the agency in achieving FY 2020 GHG reduction targets [See Goals 1 and 2 above].

d. Divert at least 50% C&D materials and debris by FY 2015, and discuss methods used to monitor and track 

progress.

e. Reduce printing paper use.

f. Increase use of uncoated printing and writing paper containing at least 30% postconsumer fiber.

g. Reduce and minimize the acquisition, use, and disposal of hazardous chemicals and materials, and discuss 

how implementation will assist the agency in achieving FY 2020 GHG reduction targets [See Goals 1 and 2 above].

h. Increase diversion of compostable and organic materials from the waste stream

i. Implement integrated pest management and landscape management practices to reduce and eliminate the 

use of toxic and hazardous chemicals and materials.

j. Increase Treasury use of acceptable alternative chemicals and processes

k. Report in accordance with Sections (301-313) of the Emergency Planning and Community Right-to-Know

Act (EPCRA) of 1986.

b. Agency lead for goal – The overall progress toward the goal will be the responsibility of the Office of Environment, 

Safety, and Health, Departmental Offices Operations, under the Office of the Assistant Secretary for Management 

(ASM). The Head of each bureau will ultimately be responsible for implementing pollution prevention projects within 

their bureaus, but with operational responsibilities designated down, as previously explained.

c. Implementation methods – The Department of the Treasury reduces pollution and waste by applying strategies to 

prevent generating it in the first place. When waste is generated, Treasury attempts to reuse and recycle as much as 

possible to prevent material from going to landfills. Treasury will update its Toxic and Hazardous Chemicals Management 

Plan in CY 2011, and broaden it to be a more comprehensive Pollution Prevention plan. The Office of the Procurement 

Executive has been working to embed language into disposal contracts over the coming year that specifically requires 

diversion targets according to our Departmental goals.

Several initiatives are occurring within Treasury’s bureaus to accomplish this goal. The IRS is the largest bureau and 

consequently generates the most waste. The IRS will inventory its covered facilities to establish a baseline and specific 

strategies for non-hazardous solid waste reduction. The IRS will divert 50% construction and demolition (C&D) waste 

and work with GSA to ensure all construction projects completed on behalf of the IRS include provisions to reduce 

construction and demolition waste. The IRS has a Program Management Office in REFM that will develop guidance 

and monitor implementation of the diversion of Construction and Demolition debris in IRS construction and alteration
27

projects. The IRS construction projects will have specifications that include provisionsfor reduction of C&D incorporated 

in the contract language. IRS will conduct a broad environmental awareness campaign on reducing paper usage and 

the need for duplex printing. Existing contracts will be modified to reduce or eliminate the use of toxic and hazardous 

chemicals and materials by the contractor. The IRS will look for opportunities to divert compostable and organic 

materials from the waste stream and use alternative chemicals and processes.

The BEP currently diverts approximately 29% of all non-hazardous industrial and municipal solid waste from disposal 

to various forms of recycling at its facilities, and will modify contracts to increase diversion of C&D waste. The project 

to recycle wiping solution, discussed under Goal 4, will reduce plant sludge significantly. Currently, approximately

1,700 tons of waste-water pretreatment plant sludge is generated annual which make this one of the BEP’s largest nonhazardous industrial waste streams. Of that total, 1,100 tons are landfilled and 600 tons are burned for energy recover.

The BPD is on track to achieve the goal of diverting 50% of its waste from landfills by FY 2015. The BPD is currently 

diverting 45% of its waste and has an agreement in place with several local recycling sources to recycle various items. 

The bureau will continue to explore opportunities to improve solid waste diversion with additional awareness training 

and new opportunities for recycling. Hazardous chemical use has been minimized. BPD’s janitorial department has 

substituted the standard cleaning products with new environmental friendlier versions. Bio-based products are being 

evaluated for use in the maintenance department, and would replace standard paints and thinners. Service contracts 

include a clause that all pesticides, and cleaning agents must follow guidelines outlined within the appropriate environmental Executive Orders. The TTB regularly encourages employees to reduce printing and paper use by utilizing 

Share Point, shared drives and web pages to disseminate information. In addition, TTB has developed software applications for on-line submission of tax forms, label approvals, and tax permits, which results in a significant reduction 

in paper use. The TTB has encouraged building management and employees to reduce solid waste generation; but as 

is the case with many of the Treasury Bureaus, they have no baseline because they lease space through GSA, and nonhazardous waste is calculated for the whole building rather than by individual tenants.

As appropriate at contract renewals, IRS is incorporating standard language regarding landscape and pest management 

practices to reduce the use of toxic/hazardous chemicals and materials.

The IRS will work with GSA to ensure all construction projects completed on behalf of the IRS include provisions to 

reduce construction and demolition waste. IRS construction projects will have specificationsthat include provisions 

for reduction of C&D incorporated in the contract language.

d. Positions – The work on pollution prevention and waste elimination is primarily completed by employees at the 

individual Treasury facilities, and may be collateral duty for some staff. At this time, Treasury has not identified a 

need to increase the number of employees to accomplish this goal.

e. Planning table – The table below illustrates the annual percent targets for diverting waste from landfills compared 

to the amount of waste generated.

Pollution Prevention & Waste Reduction Units FY10 FY11 FY12 FY13 FY14 FY15 ... FY20

...

...

Non-Hazardous Solid Waste Diversion Targets

(Non-C&D) % 5 10 20 30 40 50

C&D Material & Debris Diversion Targets %
28

Pollution Prevention & Waste Reduction

If agency uses on-site or off-site waste-to-energy, estimated total 

weight of materials managed through waste-to-energy

Units

Tons

FY10

1031

FY11 FY12 FY13 FY14 FY15 ...

...

FY20

Number of sites or facilities with on-site composting programs

Number of sites or facilities recycling through off-site composting 

programs

If agency has on-site or off-site composting programs, estimated total 

weight of materials diverted to composting

#

#

Tons or 

pounds

0 0 0 0 0

0 1 1 1 1

0

0 ...

1 ...

...

% of agency-operated offices/sites with a recycling program % 85

If agency offices located in multi-tenant buildings, % of those % 91 buildings with a recycling program

...

...

% of agency-operated residential housing with recycling programs % N/A N/A N/A N/A N/A N/A ...

Other, as defined by agency

Goal-Specific Items

...

f. Agency status – Treasury has been actively pursuing opportunities to minimize waste and prevent pollution. The 

new IRS copier contract will have impact in the out years as new copiers are deployed. Currently, there are

4,283 copiers in service and more than 3,000 will be replaced with new contract copiers and will be set to duplex print. 

This will have minimal impact on paper usage in FY 2011 but greater impact in out years and as more new copiers are 

deployed. REFM estimates the impact on the paper usage in copiers may be a 2% reduction in FY11 and an additional

10% reduction in each of the subsequent FYs.

At the Memphis campus, IRS is implementing a chemical-free water treatment process for cooling towers; IRS will 

evaluate the success of this initiative and consider the potential for implementation at other facilities.

Currently, the Main Treasury building dining facility is using compostable disposable products. While they are not 

being composted, they will fully decompose in a land fill within 90 days as opposed to the 20+ years that it takes for 

other standard foodservice disposables. Treasury had hoped to eventually compost these items along with pre- and 

post-production food waste. Following an analysis with the facilities office to determine the logistics and costs associated 

with this project, Treasury is currently not able to implement the plan but will re-evaluate this project in the future.

The BEP’s largest municipal and non-hazardous industrial waste streams are currency paper and waste water treatment 

plant sludge. The Bureau generates approximately 1,750 tons/year of currency paper, which includes trimmed edges 

and disintegrated or shredded currency notes. Approximately 725 tons of currency trim is recycled, 950 tons are burned 

for energy recovery, and 75 tons are landfilled. During FY2011 the Bureau has started projects to identify waste diversion reuse and recycling opportunities for these waste streams. The Bureau must increase diversion of these materials to meet the FY2015 50% waste diversion target.

The BEP currently recycles 32 percent of non-hazardous industrial and municipal solid waste.

g. Return on Investment – Currently, there have been no projects or initiatives cancelled or suspended due to a lower 

than expected return on investment (ROI). Likewise, no projects have been expanded due to a higher than expected 

ROI.
29

h. Highlights – Under the guidance of the San Francisco Green Team, an employee organized group focused on sustainability, the United States Mint at San Francisco has implemented an extensive recycling program. They achieved 

a diversion rate of over 99 percent. Out of a total waste production of 434,869 pounds, only 3,692 pounds of waste 

were sent to the landfill. The San Francisco Mint recycles plastic, paper, cardboard, metal, electronics waste, and 

some hazardous waste.

GOAL 6: Sustainable Acquisition

a. Goal Description- The Department of the Treasury will ensure that purchases of goods and services are from sustainable sources.

This goal has the following sub-goals:

a. Ensure 95% of new contract actions, including task and delivery orders under new contracts and existing 

contracts, require the supply or use of products and servicesthat are energy efficient (Energy Star or FEMP-designated), 

water efficient, biobased, environmentally preferable (excluding EPEAT-registered products), non-ozone depleting, 

contain recycled content, or are non-toxic or less toxic alternatives.

b. Update Treasury affirmative procurement plans (also known as green purchasing plans or environmentally 

preferable purchasing plans), policies and programs to ensure that all mandated Federally-designated products and 

services are included in all relevant acquisitions.

b. Agency lead for goal – The overall progress toward the goal will be the responsibility of the Office of the Procurement 

Executive, under the Office of the Assistant Secretary for Management (ASM). The Head of each bureau will ultimately 

be responsible for implementing pollution prevention projects within their bureaus, with the operational responsibilities 

designated down, as was previously explained.

c. Implementation methods – The Treasury Department has updated agency affirmative procurement plans (also 

known as green purchasing plans or environmentally preferable purchasing plans), policies, and programs to ensure 

that Federally-mandated designated products and services are included in all relevant acquisitions. The IRS has set 

goals in accordance with federally mandated Executive Orders. The IRS will advance sustainable acquisition to ensure 

that 95% of new contract actions, including task and delivery orders, for products and services are energy-efficient 

(Energy Star® or Federal Energy Management Program (FEMP) designated), water-efficient, bio-based, environmentally 

preferable (e.g., Electronic Product Environmental Assessment Tool (EPEAT) certified), non-ozone depleting, contain 

recycled content, or are non-toxic or lesstoxic alternatives, where such products and services meet agency performance 

requirements. The IRS currently has limited methods of measuring sustainability; however, a re-write of their Contract 

Writing System in early FY 12 to include enhancements will allow them to monitor the purchase of environmentally 

preferred products/services and ensure applicable clauses and provisions are included in all contracts and solicitations. 

The IRS has in place an agency affirmative procurement plan that ensures all Federally-mandated designated products 

and services are included in all relevant acquisitions.

The method of implementation of this goal is achieved through the issuance of the IRS Green Procurement Plan (GPP), 

and extensive training on the buying green program. Policy and Procedures (P&P), Buying Green, contains the IRS

GPP and is revised annually. The GPP has been updated to include requirements set forth in E.O. 13514. The IRS 

Office of Procurement Policy and the Real Estate Facilities Management (REFM), Environmental Coordinator, are 

both responsible for providing training on buying green. On-line training has been implemented via our Electronic 

Learning Management System (ELMS). Annual training is required for IRS contracting officers, contract specialists, 

and contracting officer’stechnical representatives (COTRs). Purchase card holders are also trained by way of annual
30

and refresher Purchase Card holder training. Thisis monitored through a database. The IRS will conduct random reviews 

of contract files during semi-annual Verification and Validation (V&V) . Six IRS facilities have Environmental Management Systemsthat include the purchase of environmentally preferred products/services. The IRS’long-term energy 

strategy is to issue energy contracts under the Energy Savings Performance Program (ESPC). These are contracting 

vehicles that allow energy projects without special appropriations to pay for facilities improvements.

The FMS actively implements green purchasing according to E.O. 13423, and uses Federal Business Opportunities 

(FedBizOpps) to publicize and promote requirements for green products and services and/or sustainable acquisitions. 

The FMS also requires that green purchasing requirements roll down to subcontractors. The Procurement Services 

Division at DO implemented a mandatory Green Purchasing Training for all Departmental Offices’Contract Personnel, 

COTRs, and Purchase Card holders. FinCEN requires all of its electronic equipment to meet or exceed Energy-Star 

and EPEAT requirements. The results of this assessment will enable the bureau to define planned new contract actions 

related to ongoing sustainability.

In FY 2011, the United States Mint will begin implementing its sustainable acquisition strategy by training all contract 

officers, COTRs, and purchase card holders in Federal green purchasing requirements, developing a system to track 

and report sustainable contract actions, and by reporting all sustainable contract actions to the ESHE Division, the 

Treasury Department, and OMB for review.

d. Positions – The IRS commented that implementing the Buying Green program would be more efficiently monitored 

by a full time employee (FTE). At present, only one Procurement Analyst has full responsibility for the program, in 

addition to her full-time duty as the IRS Small Business Specialist. Budgetary constraints prevent the agency from 

obtaining any additional FTE’s for this program.

e. Planning Table – The following table illustrates the annual percent targets for new contracts that will include green 

acquisition language. (Note: FY10 data cannot be reported with a high level of confidence. However, for FY2011,

a tracking system is in place that will provide accurate data which will be included in the 2012 Sustainability Plan.)

Sustainable Acquisition Units FY10 FY11 FY12 FY13 FY14 FY15 ... FY20

... hold

... hold

... hold

... hold

... hold

... hold

... hold

...

New Contract Actions Meeting Sustainable Acquisition Requirements % 95 hold hold hold hold

Energy Efficient Products

(Energy Star, FEMP-designated, and low standby power devices) % 95 hold hold hold hold

Water Efficient Products % 95 hold hold hold hold

Biobased Products % 95 hold hold hold hold

Recycled Content Products % 95 hold hold hold hold

Environmentally Preferable Products/Services

(excluding EPEAT - EPEAT in included in Goal 7) % 95 hold hold hold hold

SNAP/non-ozone depleting substances % 95 hold hold hold hold

Other, as defined by agency

SUSTAINABLE ACQUISITION CONTRACT REVIEW 1st QTR FY 11 2nd QTR FY 11 3rd QTR FY 11 

(planned)

4th QTR FY 11 

(planned)

Total # Agency Contracts 1672 3483
31

SUSTAINABLE ACQUISITION CONTRACT REVIEW 1st QTR FY 11 2nd QTR FY 11 3rd QTR FY 11 

(planned)

4th QTR FY 11 

(planned)

Total # Contracts Eligible for Review 84 80

Total Contracts Eligible Contract Reviewed

(i.e., 5% or more eligible based on previous OMB guidance) 88 110

# of Compliant Contracts 62 97

Total % of Compliant Contracts 87 95

To complete the compliance monitoring portion of the OMB Environmental Stewardship Scorecard for the 2nd Quarter, 

an Ad Hoc report was generated in the Federal Procurement Data System - Next Generation (FPDS-NG) for the period 

of 1/1/11 through 3/31/11. The report included all Procurement Instrument Identifiers (PIIDS) generated during that 

period, sorted by Product Service Code (PSC). Sorting by PSC allowed us to identify products and services by commodity, to more visibly identify the applicable contract actions to determine whether they included requirements for 

green products and services. A random sample of the applicable actions were reviewed that represented the required

5% or greater sample.

Goal-Specific Items

f. Agency status – Treasury has made significant progress in the area of green purchasing and has plans to meet the

95 percent goal by the end of FY 2011. The IRS procurement offices are working on several contractsto improve energy 

efficiency at various buildings. In the first quarter of FY2011, the Treasury executed a total of 1672 contract actions. 

The IRS GPP has been updated to include guidance from the EO 13514 as appropriate.

The Mint and OCC are in the process of preparing a Bureau Affirmative Procurement Plan (APP). At DO, 100 percent 

of contract specialists completed green purchasing training in FY 2010. Green purchasing is also part of the training 

for all new purchase card holders and approving officials.

g. Return on Investment – Currently, there have been no projects or initiatives cancelled or suspended due to a lower 

than expected return on investment (ROI). Likewise, no projects have been expanded due to a higher than expected 

ROI.

h. Highlights – The most challenging aspect of implementing a successful sustainable acquisition program at the 

United States Mint will be getting COTRs to accept responsibility for buying green. The Mint Procurement Division 

has very little control over the technical aspects of the bureau’s contracts. Because contracting officers depend on 

COTRsto supply the technical knowledge, COTRs will need to be the Mint personnel who ensure the bureau’s applicable 

contracts satisfy at least one of the Federal green purchasing requirements. To achieve the bureau’s sustainable acquisition goal, the Mint will have to train all of its COTRs in green purchasing in a way that motivates them to “buy green”.

GOAL 7: Electronic Stewardship and Data Centers

a. Goal Description- The Department of the Treasury will ensure that the use of electronic equipment employs sustainable practices throughout all lifecycles.
32

a. Ensure acquisition of EPEAT registered, ENERGY STAR qualified, and FEMP designated electronic office 

products when procuring electronics in eligible product categories.

b. Establish and implement policy and guidance to ensure use of power management, duplex printing, and 

other energy efficient or environmentally preferred options and features on all eligible Treasury electronic products.

c. Update Treasury policy to reflect environmentally sound practices for disposition of all agency excess or 

surplus electronic products.

d. Discussion of how Treasury will increase the quantity of electronic assets disposed through sound disposition practices.

e. Discussion of how Treasury will require IT planning/Life Cycle Manager to replace and or waive equipment 

that does not meet “Green” compliance requirements.

f. Update Treasury policy to ensure implementation of best management practices for energy efficient 

management ofservers and Federal data centers, including how the agency will meet data center reduction goalsincluded 

in the Federal Data Center Consolidation Initiative.

b. Agency lead for goal – The overall progress toward the goal will be the responsibility of the Chief Information 

Office, under the Office of the Assistant Secretary for Management (ASM). The Head of each bureau will ultimately 

be responsible for implementing sustainable acquisitions within their bureaus, but the operational responsibilities are 

designated down, as previously explained.

c. Implementation methods – The Treasury Electronic Stewardship Program provides Treasury-wide guidance on 

meeting the electronicsstewardship requirements of Executive Orders and other related federal mandates. It establishes 

Department-wide efforts and implementation strategies to:

· Improve the life cycle environmental management of electronic assets, including acquisition, operations, and 

maintenance, and end of like disposition;

· Track and ensure accurate measurement and timely reporting of Treasury’s progress toward meeting electronic 

stewardships goals; and

· Achieve the standards of success in sustainable electronics stewardship as defined and measured by the Office 

of Management and Budget (OMB) Environmental Management Scorecard or superseding metric.

Treasury’s Electronic Stewardship plan was updated in 2010 to include the requirements in E.O. 13514. The Treasury 

bureaus have made significant progress in meeting electronic stewardship goals. The IRS has the majority of the 

electronic equipment and data centers in the Department of the Treasury. The IRS will establish and publish policy 

and guidance to ensure the power management of monitors, computers, printers and scanners are used where tax processing production is not impacted.

The new national copier contract which will be awarded on or about May 31, 2011, and will require all newly leased 

copiers to have duplex printing set as the default and to have power management features turned on. Older copiers 

will be replaced as their lease expires. There are 4,283 older copiers in place currently and more than 3000 will be 

replaced in late FY 2011 or early FY 2012.

Printers also have Power Save settings set to reduce energy consumption when not in use. IRS acquired the EiPower 

Saver Solution Software from Altiris to manage the power management settings on our IRS workstation computers 

(desktops and laptops). The software allows for systems to be available when needed, for example, they can be turned
33

on when patches/updates are required and turned off when done. This reduces PC energy waste and the carbon footprint 

by powering downs PCs in IRS offices during non-work hours. Deployment is scheduled for early August 2011 pending 

completion of infrastructure upgrade which is scheduled for June 2011.

The Comprehensive Printing Strategy (CPS) is a planned approach to using enhanced technology to meet IRS’ printing 

needs more cost-effectively, securely, reliably, and in an environmentally friendly way. It will affect the distribution, 

management and servicing of printers and copiers/printers/scanners(known as copier/multifunction devices or “C/MFD”) 

throughout IRS. CPS will save IRS more than 60% of printing costs over five years; better protect the privacy of taxpayer information, reduce printer downtime, save paper, and comply with Government-wide and Treasury-wide “Green” 

guidance.

Considerable gains have been achieved through Server Virtualization and Consolidation efforts. Physical servers are 

being converted to Virtual Servers which is decreasing the real estate footprint. The new virtual environments have 

been deployed to all sites. Server virtualization will achieve increased CPU utilization in the data centers.

Disposition Practices: It is IRS policy under the Internal Revenue Manual (IRM) 1.14.12 to “use environmentally 

sound practices with respect to disposition of agency electronic equipment that has reached the end of its useful life.”

100% of non-usable electronics equipment is reused or recycled. IRS transfers non-usable electronic equipment to 

eligible schools/education non-profits through the CFL program under Executive Order 12999 and reportsthese transfers 

to the Department of Treasury for reporting to GSA. Electronic equipment that is not reused isrecycled through Unicor. 

EPA has already conducted due diligence activities for Unicor to ensure they follow environmentally sound recycling 

practices.

The Real Estate & Facilities Management (REFM) continues to coordinate with Modernization & Information Technology Services (MITS) on the Data Center Consolidation Plan to determine which data centers to sub-meter. The 

IRS faces challengesto sub-metering its current data centerssince building infrastructure was not constructed to support 

separate metering, and a substantial cost is likely required for sub-metering at our data centers. IRS is in the process 

of conducting an analysis to assess which potential campus data center to meter, as consolidation efforts would affect 

this decision.

The BPD has enabled the hibernation feature on all eligible personal computers, and is currently undergoing a comprehensive study to move towards better managed printing through networked, centralized printing, scanning, copying 

devices. BPD also participates in the Federal Electronics Challenge (FEC) with Treasury as a "Facility Partner," and 

recycles 100% of electronic equipment devices (computers, etc.) through UNICOR.

The United States Mint initiated data center consolidation and virtualization efforts in 2003. Since that time the Mint 

has reduced the number of physical servers by more than 70%. In 2010 the Mint reduced the physical footprint of its 

Washington, DC region data centers by 80%, increased utilization rates to approximately 75%, and installed state of 

the art power management technologies including sub-metering that will enable energy-usage monitoring. Going 

forward, the Mint is exploring expanding the use of virtualization technologiesto support disaster recovery and business 

continuity needs.A policy and guidance to ensure use of power management, duplex printing, and other energy efficient 

or environmentally preferred options and features on all eligible agency electronic products was implemented as part 

of the FEC Challenge procurement and acquisition program. The guidelines for purchasing green products will update 

to reflect best management practices for energy efficient management of servers and Federal data centers. The Mint 

recycles electronic assets through donations to non-profit organizations and/or recycling through private recyclers 

and/or GSA Xcess program. The Mint will verify recyclers are certified under the Responsible Recyclers(R2) guidance 

or equivalent.

d. Positions – The work on electronic stewardship is primarily completed by dedicated employees at the individual

Treasury facilities, and may be collateral duty for some staff. The IRS has a Facility Energy Manager (FEM) at each
34

of its covered facilities. They work in the building delegation section and perform the requirements of the FEM as a 

collateral duty. At this time, Treasury has not identified a need to increase the number of employees to accomplish this 

goal.

e. Planning table – The table below shows the annual percent targets for electronic stewardship.

ELECTRONIC STEWARDHIP & DATA CENTERS Units FY10 FY11 FY12 FY13 FY14 FY15

% of electronic product acquisition covered by current Energy Star specificationsthat 

must be energy-star qualified 100 100 100 hold hold hold

% of covered electronic product acquisitions that are EPEAT- registered 100 100 100 hold hold hold

% of covered electronic product acquisitions that are FEMP- designated 100 100 100 hold hold hold

% of agency, eligible PC, Laptops, and Monitors with power management actively 

implemented and in use 51 100 100 100 hold hold

% of agency, eligible electronic printing products with duplexing features in use 67 95 100 100 hold hold

% of electronic assets covered by sound disposition practices 100 100 100 100 hold hold

% of agency data centers independently metered, advanced metered, or sub-metered to 

determine monthly

(or more frequently) Power Utilization Effectiveness (PUE)

0 10 15 20 25 25

Reduction in the number of agency data centers 41 39 38 38 38 35

% of agency data centers operating with an average CPU utilization greater than 65% 5 5 10

Maximum annual weighted average Power Utilization Effectiveness

(PUE) for agency.

3.48 1.8 1.7

Goal-Specific Items

f. Agency status –Plans are to move most administrative systems into cloud based computing as new systems go live. 

Metering necessary to measure energy usage at BEP managed data centers is undergoing planning and design. And 

TIGTA is currently reviewing and implementing energy efficiencies and environmentally preferred options on eligible 

Treasury electronic products, and has policies in place to ensure all agency excess or surplus electronic products are 

donated if possible or disposed of according to Responsible Recycler guidelines.

The Memphis data center is fully-metered/sub metered. As mentioned previously, sub metering a building offers significant challenges and costs, and the IRS is finalizing the design and is developing a business case to provide metering 

for the chilled water at the Martinsburg data centers. The electrical metering for the Martinsburg main building data 

center has been included in the ongoing GSA prospectus-level Mechanical/Electrical/Plumbing (MEP) projectscheduled 

to be completed in FY12.

In FY 2011, the United States Mint will take the following actions to finish implementing its Plan of Action and 

Milestones (POAM): 1. Enable power management features on computers, laptops, and printers and; 2. implement 

best practices for data center energy efficiency.

g. Return on Investment – Currently, there have been no projects or initiatives cancelled or suspended due to a lower 

than expected return on investment (ROI). Likewise, no projects have been expanded due to a higher than expected 

ROI.
35

h. Highlights – N/A

GOAL 8: Agency Innovation & Government-Wide Support

Treasury has taken an innovative approach to meeting and exceeding the goals in Executive Orders 13423 and 13514. 

Some of the recent achievements from Treasury include:

· The Denver Mint, Main Treasury, and Treasury Annex buildings are all being powered with 100% renewable 

energy through the purchase of Renewable Energy Credits (RECs).

· Treasury and the Department of Commerce were attempting to consolidate vehicle fleetsin and effort to reduce 

costs and the individual agencies carbon footprint. However, after several discussions and “brain-storming” sessions, 

it was determined that vehicle parking in the DC Metro area, and security issues would make combining the fleets 

unpractical.

· The San Francisco Mint installed a “cool roof” that reduces the heat island effect and reduces stormwater runoff 

while providing habitat for wildlife. The project satisfied the LEED requirements for construction waste management, 

material reuse, recycled content and use of regional materials.

· The Bureau of Engraving and Printing has collaborated with the Department of the Treasury to identify Real 

Property Profile space reduction opportunities. The use of the Bureau’s existing warehouse to share space with other 

Treasury Bureaus with expiring leases is being explored.

Treasury is a leader in environmental management, minimizing waste and GHG emissions, recycling material, and 

preventing pollution. We are meeting our sustainability challenges with innovative solutions.

AGENCY INNOVATION & Government-Wide Support 

Programs, Projects, Initiatives that support Gov-wide efforts 

Other, as defined by agency

Goal-Specific Items

Section 3: Agency Self Evaluation

Units FY10 FY11 FY12 FY13 FY14 FY15 ... FY20

Agency Self Evaluation

Does your Sustainability Plan incorporate and align sustainability goals, GHG targets and overarching objectives 

for sustainability with the Agency Strategic Plan? Yes

Answer

Does it provide annual targets, strategies and approaches for achieving the 2015 and 2020 goals? Yes

Is the Sustainability Plan consistent with the FY2012 President's Budget? Yes
36

Agency Self Evaluation Answer

Doesthe Sustainability Plan integrate allstatutory and Executive Order requirementsinto a single implementation 

framework for advancing sustainability goals along with existing mission and management goals, making the 

best use of existing and available resources?

Yes

Does your plan include methods for obtaining data needed to measure progress, evaluate results, and improve 

performance? Yes

Other Key Questions for 2011:

1. Did your agency meet by 12/30/10 due date and/or is it now able to demonstrate comprehensive implementation of 

the EO 13423 Electronic Stewardship goals? Yes

· Acquire at least 95% EPEAT-registered electronics

· Enable energy star or power management features on 100% of eligible PCs

· Extends the life and/or uses sound disposition practices for its excess or surplus electronics

2. Is your agency tracking and monitoring all of its contract awardsfor inclusion of requirementsfor mandatory federallydesignated green products in 95% of relevant acquisitions? Yes

3. Has your agency completed energy evaluations on at least 75% of its facilities? Yes. With completion of the IRS’ 

Covington facility and the Denver Mint expected over the next 6 months, we anticipate reaching the 75% goal by the 

end of the 1st quarter of FY2012

4. Will your agency meet the deadline of October 1, 2012 (EPACT’05 Sec 103) for metering of energy use? Yes

5. If your agency reports in the FRPP, will it be able to report by December 2011 that at least 7% of its inventory meets 

the High Performance Sustainable Guiding Principles? Yes.

The reduction in energy use must become a core element of procurement, finance, office services, human resources, 

manufacturing, engineering, facilities management, and protection activities. The FY 2011 and FY2012 budget submissions through the OMB Circular A-11, Section 25 include sustainability actions that take into consideration alternative financing mechanisms such as utility energy savings contracts. A few of Treasury’s planned activities that will 

have an impact on sustainability are listed below.

a . Planned Actions

Greening the Treasury Fleet

Installation of a 240V electrical charging station at the Main Treasury for hybrid and electric vehicles.

Sustainable Acquisition

Integrating the social cost of carbon into the budgeting process to ensure appropriate consideration when projects are 

selected for funding.
37

Continue efforts with bureaus to identify opportunities for “greening” contract requirements.

Sustainable Buildings

Obtaining Leadership in Energy and Environmental Design (LEED) certification and complying with the Guiding 

Principles for Federal Leadership in High Performance and Sustainable Buildings at the West Point Mint facility and 

the Main Treasury’s in Washington, DC.

Completion and implementation of the Main Treasury and Annex building EMS. IRS expects EMS declaration for the

Kansas City campus.

Water Use Efficiency and Management

The BEP Washington DC facility is submitting the business case for the wiping solution recycling system and expects 

to implement this system during CY 2011. When operational, this system will save an estimated 12 million gallons of 

water annually.

Pollution Prevention & Waste Reduction

At the Memphis IRS campus, a chemical-free water treatment process for the cooling towers is being implemented.

Greenhouse Gas Scope 1 and 2

Begin FY2011 Treasury GHG Inventory process by September 2011. TTB intends to close four offices allowing those 

employees to telework 100% of the time.

Electronic Stewardship

Implement and activate 100% power management IRS-wide by September 2011.
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Endnotes

1Values are in 2007 numbers, assuming a discount rate of 3 percent.

2Though Treasury has not identified a specific need for additional employees at the time, Departmental Offices are 

still evaluating the necessary resources required to implement all the provisions of this plan. This comment applies to 

all goals.
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