“Presidential Action Climate Plan A Real Time Review” Energy Efficiency in the Federal Sector

1. “Presidential Action Climate PlanA Real Time Review”Energy Efficiency in the Federal Sector Brian T. Castelli Executive Vice President & Chief Operating Officer Wingspread The Johnson Foundation Racine, Wisconsin June 26 - 28, 2007

2. America’s Greatest Energy ResourceMeetsThe World’s Largest Energy Consumer

3. The World’s Largest Energy Consumer - U. S. Federal Government • 1.6 Quadrillion BTUs of Primary Energy 1.6 % of total US energy use • $14.5 billion cost (paid by taxpayers) • 104.3 million metric tons of CO2 emissions 1.8 % of total US emissions • NOTE: 1) A bit more than half of all energy use and 40% of cost is for 500,000 federal buildings/facilities 2) Vehicles and Equipment (mostly Department of Defense) makes up the rest of the energy use and cost

4. Federal Government Energy Reduction Mandates • NECPA (Pub. L. 95–619) - (1988) • Reduce Site Energy (btu/ft2) by 10% below 1985 level by 1995 • EPACT (P.L. 102-486) – (1992) • Reduce Site Energy (btu/ft2) by 20% below 1985 level by 2000 • Exec. Order 13123 (1999) • Reduce Site Energy & Greenhouse Gases by 30% below 1985 level by 2005 and 35% by 2010 – Absolute NOT Intensity • Energy Intensive Operations decrease 20% by 2005 and 25% by 2010 from 1990 level • Established Renewable Energy goal of 2.5% by 2015 • Energy Policy Act 2005 • Reduce Site Energy by 2%/yr (20% total) by 2015 compared to 2003 levels • New Fed. Buildings 30% more efficient than current model code • Exec. Order 13423 (2007) • Reduce Site Energy by 3%/yr (30% total) by 2015 compared to 2003 levels AND rescinded GHG goal

5. Federal Government Energy Reduction RESULTS

6. What Next? • The Presidential Challenge: “Match Federal Energy Intensity Targets to GHG Stabilization Paths” • Include Federal Vehicles and Equipment • Get to 80% reduction from 1990 by 2050* */ This goal is consistent with target reductions from several environmental advocacy groups, such as the Union of Concerned Scientists; multiple pieces of legislation introduced in the U.S. Congress by Congressman Henry Waxman (D-CA), Senator Bernard Sanders (I-VT), and Chair of the Senate Environment and Public Works Committee, Senator Barbara Boxer (D-CA); the stated Plan of democratic Presidential hopeful John Edwards.

7. Trajectories to 80% GHG Reduction by 2050

8. Trajectories to 80% GHG Reduction by 2050

9. Trajectories to 80% GHG Reduction by 2050

10. First Ten Steps on a Path to an 80% GHG Reduction Level by 2050 • Ensure Energy Intensity Targets are Met and Relevant • Require DOE Protocol on Building Exclusions • Continue to track and report source energy • Enhance Congressional & OMB Oversight – use penalties • Enact Legislation to Reinstate GHG Reporting • Enforce Energy-Efficient Purchasing Requirements • Direct Inspectors Generals to Audit Large Solicitations • Enact Legislation requiring GSA & DLA to comply with energy efficient procurement requirements • Establish anonymous Whistle-Blower Forum for vendors

11. First Ten Steps on a Path to an 80% GHG Reduction Level by 2050 • Identify Energy Savings in Buildings and Facilities • Require Agencies to conduct Water and Energy Audits in 10% of square footage annually • DOE certifies quality of audits and tracks cost-effective measures that are NOT implemented • Re-Start FEMP’s SaveEnergy Audits & establish IDIQ awards • Agencies Report to Congress Annually on EPACT05 Metering • Use Experienced Personnel w/EE or Contract for REMs • Create Binding Understandable Requirements for Facility Mangers • Implement all measures < 10 Yr Payback, including O&M • Track Buildings > 1msf through Energy Star Portfolio Manager

12. First Ten Steps on a Path to an 80% GHG Reduction Level by 2050 • Move to Carbon-Neutral New Construction • Develop Federal Policy to achieve Net Zero Energy by 2030 • Emphasize the 30% Savings Goal is a Floor, not a Ceiling • Multiple Rec’s on Build-to-Lease Buildings & Private Housing • Use Smart Growth Criteria in Siting New Federal Facilities • Strengthen Renewable Energy Targets • On-site Renewables, not RECs, count for EE Intensity Goal • DOE assesses RE potential and ratchets up target to a reasonable & achievable level • Use all Available Funding Sources for Energy Projects • President & OMB encourages Agencies to include projects in their annual budgets • Permanently Authorize ESPCs – Pursue ESPCs & UESCs • Enact legislation for 25 yr contracts based on life cycle costs

13. First Ten Steps on a Path to an 80% GHG Reduction Level by 2050 • Expand Polices to Include Transportation & Military Energy Use • Account for full delivered cost of fuel • Congress authorizes pilots for alternative financing for mobility • Create a Federal Fuel Portfolio Standard w/decreasing carbon • Leverage Fed Buying Power – Transform the Market • “Lean” the Federal Supply Chain • Exert leverage through Federal Programs • Enhance FEMP’s New Technology Demonstration Program • Presidential “Challenge” to other levels of Government

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