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

2. June 17. 2009 Slide 2 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

3. June 17. 2009 Slide 3 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

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

5. June 17. 2009 Slide 5 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

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

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

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

9. June 17. 2009 Slide 9 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”

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

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

12. June 17. 2009 Slide 12 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)

13. June 17. 2009 Slide 13 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

14. June 17. 2009 Slide 14 0 1 2 3 4 5 6 7 8 9 10 Efficiency Number of Models 0% 25% 50% 75% 100% Percentile (100) Setting Energy Efficiency Levels Sets minimum efficiency for purchasing Steps to determine performance levels: 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 Cumulative Percentage Top 25 th

15. June 17. 2009 Slide 15 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

16. June 17. 2009 Slide 16 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

17. June 17. 2009 Slide 17 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

18. June 17. 2009 Slide 18 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

19. June 17. 2009 Slide 19 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 FY00): –15 TBtu/yr (site); $224 M/yr Additional low-standby savings: –Feds: 233 GWh/year –All US: 3994 GWh/year

20. June 17. 2009 Slide 20 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