Energy Independence and Security Act of 2007: Major Provisions of Interest to Federal Energy Managers

April 11, 2008

On December 19, 2007, President Bush signed into law the Energy Independence and Security Act of 2007 (EISA, P.L.110140). This article provides brief summaries of those sections of EISA most applicable to Federal energy managers according to general subject area. This article is intended as a reference only; you should refer to the text of the law for more details or other sections relevant to your work.

Facilities

Energy Reduction Goals for Federal Buildings

Section 431 of EISA amends Section 543(a)(1) of the National Energy Conservation Policy Act (42 U.S.C. 8253(a)(1)) and adopts the energy intensity reduction goals of Executive Order 13423 beginning in the year 2008. The amended NECPA section reads as follows:

"SEC. 543. ENERGY MANAGEMENT REQUIREMENTS.

(a) Energy Performance Requirement for Federal Buildings.—(1) Subject to paragraph (2), each agency shall apply energy conservation measures to, and shall improve the design for the construction of, the Federal buildings of the agency (including each industrial or laboratory facility) so that the energy consumption per gross square foot of the Federal buildings of the agency in fiscal years 2006 through 2015 is reduced, as compared with the energy consumption per gross square foot of the Federal buildings of the agency in fiscal year 2003, by the percentage specified in the following table:

Fiscal Year Percentage Reduction
2006 2
2007 4
2008 9
2009 12
2010 15
2011 18
2012 21
2013 24
2014 27
2015 30

Facility Management/Benchmarking

Section 432, Management of Energy and Water Efficiency in Federal Buildings, amends Section 543 of NECPA, and establishes a framework for facility project management and benchmarking. Under this new requirement, agencies must identify all "covered facilities" that constitute at least 75 percent of the agency's facility energy use. A covered facility may be defined as "a group of facilities at a single location or multiple locations managed as an integrated operation." An energy manager must be designated for each of these covered facilities. Each facility energy manager will be responsible for:

  • Completing comprehensive energy and water evaluations (including re-retrocommissioning) of 25 percent of covered facilities each year, so that an evaluation of each such facility is completed at least once every four years.
  • Implementing of identified energy and water efficiency measures; bundling of individual measures of varying paybacks into combined projects is permitted.
  • Following up on implemented measures, including fully commissioning equipment, putting in place O&M plans, and measuring and verifying energy and water savings.

Under Section 432, DOE is directed to issue guidelines on designating energy managers and criteria for covered facilities (due June 16, 2008) and guidelines for project implementation and follow-up measures (due December 19, 2008). The energy manager at each facility is directed to use a web-based tracking system (deployed by DOE) to certify compliance for energy and water evaluations, project implementation and follow up of measures, and estimated cost and savings of measures. The web-based tracking system will be available to Congress, other Federal agencies, and the public, with some specific data exempted from disclosure for national security purposes.

In addition to employing the web-based tracking system, energy managers shall enter energy use data for each metered building into a benchmarking system, such as the Energy Star Portfolio Manager. DOE must select or develop the benchmarking system and issue guidance for its use by December 19, 2008.

OMB is responsible for issuing semiannual energy management scorecards based on the requirements of EISA Section 432 and make these scorecards available to Congress, other Federal agencies, and the public.

Finally, Section 432 authorizes agencies to use appropriations, private financing, or a combination of appropriations and private financing to comply with its requirements.

Performance and Standards for New Building/Major Renovations

Section 323 of EISA, Public Building Energy Efficiency and Renewable Energy Systems, amends Section 3307 of title 40, United States Code, dealing with Congressional approval of proposed projects. It requires that the General Services Administration, in transmitting to Congress a prospectus of a proposed facility, must include"...an estimate of the future energy performance of the building or space and a specific description of the use of energy efficient and renewable energy systems, including photovoltaic systems, in carrying out the project." In addition, "with respect to space to be leased, [GSA] shall include, to the maximum extent practicable, minimum performance requirements requiring energy efficiency and the use of renewable energy." Lastly, Section 323 adds a section to Chapter 33 of title 40 on Use of Energy Efficient Lighting Fixtures and Bulbs. The new section 3313 sets requirements for energy efficient lighting fixtures and bulbs in Federal buildings.

Section 433 of EISA, Federal Building Energy Efficiency Performance Standards, directs DOE to issue revised Federal building energy efficiency performance standards within one year of enactment of Act. The revised standards would specify that"...the buildings shall be designed so that the fossil fuel-generated energy consumption of the buildings is reduced, as compared with such energy consumption by a similar building in fiscal year 2003 (as measured by Commercial Buildings Energy Consumption Survey or Residential Energy Consumption Survey data from the Energy Information Agency), by the percentage specified in the following table:

Percentage Year
55 2010
65 1015
80 2020
90 2025
100 2030

Section 433 also requires that sustainable design principles shall be applied to the siting, design, and construction of buildings subject to the standards. A certification system and level for green buildings shall be identified by DOE in consultation with DOD and GSA, based on Director of Federal High-Performance Green Buildings (GSA) findings. The section provides specific guidance for developing certification program.

Section 433 directs the Federal Acquisition Regulatory Council to consult with the Federal (GSA) and Commercial (DOE) Directors of Federal High-Performance Green Buildings to revise FAR within 2 years of enactment of the Act to require Federal officers and employees to comply with the Act's provisions regarding acquisition, construction, or major renovations. Not later than 90 days from the issuance of the revised standards, the Office of the Federal Procurement Policy is to issue new guidance providing direction and instructions to renegotiate the design of proposed facilities and major renovations for existing facilities to incorporate improvements that are consistent with Section 433.

Section 434 requires that each Federal agency ensure that major replacements of installed equipment (such as heating and cooling systems), or renovation or expansion of existing space, employ the most energy efficient designs, systems, equipment, and controls that are life-cycle cost effective. Not later June 16, 2008 each Federal agency shall—

  1. "develop a process for reviewing each decision made on a large capital energy investment to ensure that the requirements are met; and
  2. report to the Director of the Office of Management and Budget on the process established."

Section 435 prohibits Federal agencies, effective December 19, 2010, from leasing buildings that have not earned an EPA Energy Star label. Exemptions are provided if:

  • no space is available in a labeled building that meets the functional requirements of an agency, including locational needs;
  • the agency proposes to remain in a building that the agency has occupied previously;
  • the agency proposes to lease a building of historical, architectural, or cultural significance (as defined in section 3306(a)(4) of title 40, United States Code) or space in such a building; or
  • the lease is for not more than 10,000 gross square feet of space.

Section 523 requires 30 percent of the hot water demand in new Federal buildings (and major renovations) to be met with solar hot water equipment, provided it is life-cycle cost-effective.

High Performance Buildings

Section 436 of EISA, High-Performance Green Federal Buildings directs GSA to establish a Federal High-Performance Green Building Office and Advisory Committee with a Federal Director to coordinate outreach with other agencies, establish green practices and standards for the Federal sector, review/analyze current Federal budget practices and life-cycle costing issues, certification of new and existing Federal facilities as high-performance green buildings, and make recommendations to Congress. Section 421, Commercial High-Performance Green Buildings, directs DOE to establish a Director and Office of High-Performance Green Buildings (OBT) to coordinate information and outreach activities targeted at the commercial (non-Federal) sector.

Section 439 directs GSA to review the current use of, and design a strategy for increased use of, cost-effective lighting, ground source heat pumps, and other technologies in GSA facilities.

For the purpose of conducting life-cycle cost calculations, Section 441 increases the time period from 25 years, in prior law, to 40 years.

Energy Savings Performance Contracting

Congress demonstrated its interest in facilitating the use of ESPCs by Federal agencies in EISA's Title V, Energy Savings in Government and Public Institutions, Subtitle B, Energy Savings Performance Contracting. The provisions include the following.

  • Section 511 eliminates the advance Congressional reporting requirement for ESPCs that have a cancellation ceiling exceeding $10 million.
  • Section 512 increases ESPC funding flexibility by allowing a combination of appropriated funds and private financing.
  • Section 513 restricts Federal agencies from limiting the duration of ESPCs to less than 25 years or limiting the total amount of obligations. Further, this section permits the criteria for savings verification to satisfy the requirement for energy audits. Also, it directs Federal agencies to modify existing ESPCs to conform with the requirements of this subtitle.
  • Section 514 permanently authorizes ESPCs.
  • Section 515 extends the definition of energy savings reduction to include increased use of an existing energy source by cogeneration or heat recovery, use of excess electrical or thermal energy generated from onsite renewable sources or cogeneration, and increased energy-efficient use of water resources.
  • Section 516 permits agencies to retain the full amount of energy and water cost savings obtained from utility incentive programs.
  • Section 517 authorizes $750,000 per year over five years for a program to train contract officers in negotiating ESPCs.
  • Section 518 directs the Department of Defense (DOD) and DOE to study the potential use of ESPCs in nonbuilding applications, which is defined to include vehicles and federally-owned equipment to generate electricity or transport water.

Metering

EISA Section 434(b), Metering, amends Section 543(e)(1) of NECPA (42 U.S.C. 8253(e)(1)) by inserting after the second sentence the following: "Not later than October 1, 2016, each agency shall provide for equivalent metering of natural gas and steam, in accordance with guidelines established by the Secretary under paragraph (2)."

Energy Efficient Procurement

Section 522 prohibits, except under certain circumstances, the purchase of incandescent light bulbs for use in Coast Guard office buildings.

Section 524 encourages federal agencies to minimize standby energy use in purchases of energy-using equipment.

Section 525 requires Federal procurement to focus on use of Energy Star and Federal Energy Management Program (FEMP)-designated products.

Section 526 prohibits Federal agencies from procuring synfuel unless its life cycle GHG emissions are less than those for conventional petroleum sources.

OMB Reporting

Section 527 directs each Federal agency subject to any requirements under this title to issue an annual report that describes the status of initiatives to improve energy efficiency, reduce energy costs, and reduce greenhouse-gas emissions. Section 528 requires the Office of Management and Budget (OMB) to submit an annual report to Congress that summarizes the information reported under Section 527, evaluates overall progress toward the goals of Section 527, and recommends additional actions needed to meet those goals.

Federal Fleets

EISA Title I, Energy Security Through Improved Vehicle Fuel Economy, Subtitle C, Federal Vehicle Fleets, Section 141 amends Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212). It includes definitions for: Federal agency, Medium Duty Passenger Vehicle, and Member's Representational Allowance and prohibits Federal agencies from acquiring any light-duty motor vehicle or medium-duty passenger vehicle that is not "a low greenhouse gas emitting vehicle" as defined in this subtitle. Alternatively, the agency may demonstrate that it has adopted cost-effective policies to reduce its petroleum consumption sufficiently to achieve a comparable reduction in greenhouse gas emissions.

Under EISA Section 142, Federal agencies are required to achieve by 2015 at least a 20 percent reduction in annual petroleum consumption and a 10 percent increase in annual alternative fuel consumption. The petroleum reduction and alternative fuel increase are to be calculated from a 2005 baseline. Interim milestones will be established by DOE and agencies will report annually on their progress. The regulations governing this program are required to be issued not later than 18 months after enactment.

Section 246, Federal Fleet Fueling Centers, directs each agency to install at least 1 renewable fuel pump at each Federal fleet fueling center by 2010 and requires annual reporting to Congress on agency progress in complying with this requirement.