1. Federal Procurement of Energy-Efficient Products: Policy Requirements & Purchasing Tools Christopher Payne Lawrence Berkeley National Laboratory June 17, 2009

2. FEMP Mission Statement FEMP facilitates the federal government’s implementation of sound, cost-effective energy management & investment practices to enhance the nation’s energy security & environmental stewardship June 17. 2009 Slide 2

3. Federal Sector Statistics Consumption –Annual energy consumption: ~400 trillion BTUs –Annual energy cost: ~$5.6 billion Annual purchase of products: ~$4 billion Savings Potential Through Purchasing –Annual Energy Savings: ~15 trillion BTUs –Annual Energy Cost Savings: ~$210 million June 17. 2009 Slide 3

4. Benefits: Procurement of Energy-Efficient Products By using money already being spent, we can: –Meet federal purchasing requirements –Assist in meeting federal energy reduction goals –Reduce operating cost –Prevent pollution –Encourage the production of efficient products June 17. 2009 Slide 4

5. Policy Requirements: Energy-Efficient Products Energy Policy Act of 2005 10 CFR 436, Subpart C Federal Acquisition Regulations Part 23 & 52 Energy Independence & Security Act of 2007 Executive Order 13423 June 17. 2009 Slide 5

6. Energy Policy Act of 2005: Section 104 – Requirements Procurement: –Agencies shall buy only ENERGY STAR ® -qualified or FEMP-designated products Procurement Planning: –Agencies shall incorporate ENERGY STAR ® and FEMP performance criteria into: Guide and project specifications Construction, renovation, and services contracts Evaluation of competitive offers June 17. 2009 Slide 6

7. Energy Policy Act of 2005: Section 104 – Exceptions Agency head documents in writing that: –Product is not life-cycle cost-effective –No energy efficient product meeting functional requirements is “reasonably available” –Product/system is for combat or related missions June 17. 2009 Slide 7

8. 10 CFR 436 – Subpart C: Agency Procurement of Energy-Efficient Products §436.40 Purpose and scope. §436.41 Definitions. §436.42 Evaluation of Life-Cycle Cost Effectiveness. §436.43 Procurement planning. June 17. 2009 Slide 8

9. Federal Acquisition Regulations: Part 23.203 If life-cycle cost-effective and available –When acquiring energy-using products (i) Agencies shall purchase ENERGY STAR ® or other energy-efficient items listed on the Department of Energy’s Federal Energy Management Program (FEMP) Product Energy Efficiency Recommendations product list…. June 17. 2009 Slide 9

10. Federal Acquisition Regulations: Part 52.223-15(b) The Contractor shall ensure that energy-consuming products are energy efficient products (i.e., ENERGY STAR® products or FEMP-designated products) at the time of contract award, for products that are: –Delivered; –Acquired by the Contractor for use in performing services at a Federally-controlled facility; –Furnished by the Contractor for use by the Government; or –Specified in the design of a building or work, or incorporated during its construction, renovation, or maintenance. June 17. 2009 Slide 10

11. Federal Acquisition Regulations: Part 52.223-15(c) The requirements of paragraph (b) apply to the Contractor (including any subcontractor) unless: –The energy-consuming product is not listed in the ENERGY STAR ® Program or FEMP; or –Otherwise approved in writing by the Contracting Officer. June 17. 2009 Slide 11

12. Energy Independence & Security Act of 2007: Sec. 524 – Standby … if an agency purchases an eligible product, the agency shall purchase— – an eligible product that uses not more than 1 watt in the standby power consuming mode of the eligible product; or – if an eligible product described in subparagraph (A) is not available, the eligible product with the lowest available standby power wattage in the standby power consuming mode of the eligible product. June 17. 2009 Slide 12

13. Executive Order 13423 Sec. 2. Goals for Agencies. In implementing the policy set forth is section 1 of this order, the head of each agency shall: (d) require in agency acquisition of goods and services (i) use of sustainable environmental practices, including acquisition of biobased, environmentally preferable, energy-efficient, water-efficient, and recycled-content products…. June 17. 2009 Slide 13

14. Purchasing Tools: ENERGY STAR ® and FEMP Performance requirements Model contract language Energy cost calculators Additional information June 17. 2009 Slide 14

15. Guiding Principles: Selecting Eligible Products Analyze the market for energy-consuming products: –Prevalence in market –Significance of energy consumption –Variation in energy consumption among like products Identify top 25% of energy performance in each category –Performance maintained or enhanced –Efficiency achievable without proprietary technology Verify cost-effectiveness and market availability –Multiple manufacturers –Product differentiation and testing feasible June 17. 2009 Slide 15

16. Covered Products 70+ product types in the following categories: –Lighting –Commercial & Industrial Equipment –Food Service Equipment –Office Equipment –Home Electronics –Appliances –Residential Equipment –Construction & Plumbing Products June 17. 2009 Slide 16

17. Government backed symbol for energy efficiency Available from both federal supply and commercial sources Label on product, packaging, or in owner’s manual Product lists at: www.energystar.gov/products/ June 17. 2009 Slide 17

18. FEMP Purchasing Specifications June 17. 2009 Slide 18

19. Energy Star & FEMP: Additional Activities Listening to federal buyers to provide relevant information and assistance Working with GSA and DLA to improve identification of products in federal supply systems Maintaining current performance specifications Identifying new efficiency opportunities June 17. 2009 Slide 19

20. Web Sites ENERGY STAR Program 888-STAR-YES (888-782-7937) www.energystar.gov/products/ Federal Energy Management Program 800-363-3732 www.eere.energy.gov/femp/procurement/ June 17. 2009 Slide 20