Federal Procurement of Energy-Efficient Products Christopher Payne Lawrence

Federal Procurement of Energy-Efficient Products Christopher Payne Lawrence Berkeley National Laboratory April 2, 2010 June 17. 2009 Slide 1

FEMP’s Mission 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

FEMP’s Procurement Program Assists federal agencies in: – meeting statutory and regulatory procurement requirements – meeting statutory and regulatory annual energy consumption reduction goals – reducing operating costs June 17. 2009 Slide 3

Why? • • Energy and cost savings Pollution prevention Lead by example Transform markets June 17. 2009 Slide 4

Program Strategy • Make It Policy: Communicate from the top • Make It Possible: Change purchasing rules and procedures – first-cost vs “full cost” (LCC) • Make It Easy: Efficiency criteria, list of products & sources, DLA & GSA catalogs (etc. ) • Make It Count: Set example for other buyers; coordinate with market transformation programs June 17. 2009 Slide 5

How? • Product Energy-Efficiency Specifications • Agency Support and Institutionalization of EE Procurement • Analysis and Documentation • Low Power Standby • Outreach and Partnerships • Bulk Procurement June 17. 2009 Slide 6

Purchasing Specifications • • • Market research and energy use analysis Understanding buyer’s needs Recommend efficiency levels Prepare specifications Review and update specifications Post Product Lists June 17. 2009 Slide 7

Institutionalization • Federal Supply Services (GSA & DLA) • Agency procurement policies – Federal Acquisition Regulations – Guide Specifications – Model Contract Language • Procurement Working Group June 17. 2009 Slide 8

Analysis & Documentation • • Savings Projections FEMP Annual Report OMB Scorecard Energy and Cost Savings for GPRA EPAct 2005 - Section 104 Exceptions GSA and DLA Reporting Case Studies and “Procurement Audits” June 17. 2009 Slide 9

Standby Power • • Market research Level setting Product listing Coordinate with other market transformation actors June 17. 2009 Slide 10

Outreach & Partnerships • • • Market Transformation Actors Standards Bodies Industry Associations Efficiency Advocates State and Local Government Other Research Institutions June 17. 2009 Slide 11

Why Buy EE Products? • Savings potential – Federal Sector: 15+ TBtu/year; $224 million – All levels of government: Over $1 Billion/year – Using taxpayer dollars wisely, reducing impact on environment • Lead by Example – Federal government is the world’s biggest buyer – Leverage government buying-power to transform the market • Federal Policies – Energy Policy Acts of 2005 and 1992 – Executive Orders 13123 and 13221 – Federal Acquisition Regulations (parts 23 & 52) June 17. 2009 Slide 12

Specifications: Which Products? • • Significant energy use Large volume government purchasing Potential energy/cost savings Widely accepted energy testing/rating method • Product efficiency data available • Multiple suppliers June 17. 2009 Slide 13

Setting Energy Efficiency Levels Steps to determine performance levels: June 17. 2009 100% 9 Cumulative Percentage 8 7 75% Top 25 th 6 5 50% 4 3 Percentile (100) 10 Number of Models 1) Collect & review data on product efficiency 2) Rank products from highest to lowest efficiency 3) Calculate top 25 th percentile on this ranking 4) Check against other recognized programs 5) Confirm 3 or more manufacturers 25% 2 1 Sets minimum efficiency for purchasing 0% 0 Efficiency Slide 14

Updating Specifications • FEMP specifications need regular review & revision to avoid becoming obsolete – Reflect changes in DOE appliance standards or ENERGY STAR – Technology advances, market trends – New products – Revisions: Range from minimal to significant – Address gaps in some existing specifications June 17. 2009 Slide 15

Outreach can work! • “Buying Energy-Efficient Products” binder – 3500 subscribers • Procurement Web site – Most popular FEMP Web site – Among most popular of EERE Web site • Low-standby product data base – Over 4600 models June 17. 2009 Slide 16

Accomplishments • Purchasing criteria for 45+ product types • FEMP criteria used for NEMA Premium™ Motors – Also CEE spec for utility programs • ENERGY STAR adopted FEMP specification – Commercial cooking, ice-makers, pre-rinse valves June 17. 2009 Slide 17

Accomplishments • Agency guidance – FAR language; model procurement language – Procurement included in OMB Scorecard – Guide Specs: UFGS, EPA Green Specs • Documented energy-efficient procurement by 22 state & local agencies – most are using FEMP/ENERGY STAR specs June 17. 2009 Slide 18

Program Impact • Acceptance of FEMP criteria: top 25% and 1 -W standby – Basis for ENERGY STAR label (international) – Mandated in 2005 Energy Policy Act • Manufacturers shifted to low standby • Estimated federal savings (as of FY 00): – 15 TBtu/yr (site); $224 M/yr • Additional low-standby savings: – Feds: 233 GWh/year – All US: 3994 GWh/year June 17. 2009 Slide 19

Conclusion • Procurement is an essential part of energy policy • Procurement is a non-capital intensive and effective means of reaching the -3%/year goal • Program is a proven success in market transformation June 17. 2009 Slide 20