1. Phoenix Convention Center Phoenix, Arizona An Introduction to EO 13693 Track 4Sustainability Brad Gustafson, P.E., LEED-AP Federal Energy Management Program August 11, 2015

2. Energy Exchange : Federal Sustainability for the Next Decade Topics 1)Energy Goal - Federal Progress 2)Energy Goals (Today and What’s Changed?) 3)Clean Energy 4)Guidance Updates 2

3. Energy Exchange : Federal Sustainability for the Next Decade The Long Road of Progress 46.2% reduction from 1975 20.6% reduction from 2003 US Federal Government has made significant strides to reduce energy intensity and GHG emissions –Has reduced building energy intensity by 46.2% from 1975 and 20.6% from 2003 –Buildings and hospitals 30% and 20% more efficient than CBECs stock. –Has reduced GHG emissions by 17.2% from 2008 –Is credited with using 9.2% of electricity as renewables 3

4. Energy Exchange : Federal Sustainability for the Next Decade Federal Goals in New E.O. 13693 GoalsE.O. 13693 Target Building Energy Use 25% (by 2025) Baseline 2015 Clean Energy - Building Electric Energy and Thermal Energy 25% (by 2025) Renewable Electric Energy Consumed30% (by 2025) Potable Water Use 36% (by 2025) Baseline 2007 GHG Reduction At Least 40% (by 2025) Baseline 2008 Sustainability15% (by 2025) Efficient Investment$4B (by 2016) Vehicle GHG Reduction 30% (by 2025) Baseline 2014 4

5. Energy Exchange : Federal Sustainability for the Next Decade Energy Intensity Goals Facility energy intensity reduction goals (2.5% per year, reaching 25% by 2025 vs. 2015) – All on-site renewable energy (with RECs or REC replacements) reduces energy intensity. – New - Subtracts weather-normalized energy intensity reported in CTS if it is advantageous. – New - Agencies that achieved 30% or greater reduction in Energy Intensity during the 2003 to 2015 goal period may choose an alternative target of a combined total reduction in Energy Intensity of 47.5% from 2003 to 2025. 5

6. Energy Exchange : Federal Sustainability for the Next Decade Site/Source Credit – As in the past, agencies that have projects that save source energy but increase site-delivered energy (i.e., on-site CHP) will receive a "site/source credit." New - Credit for Energy Intensity Improvements in Goal-Excluded Buildings – Even though some Federal buildings are excluded from the energy intensity reduction targets, E.O. 13693 allows agencies to credit verified energy efficiency improvements toward the agency's progress on the Energy Intensity reduction goal. On-Site Renewable Energy Contributes to Energy Intensity Reduction – Btus consumed from renewable energy systems installed on a Federal facility and from which an agency owns the environmental attributes are also deducted from the numerator of the energy intensity equation. 6 III. (Energy) Sustainability Goals for Agencies (E.O. 13693, Section 3)

7. Energy Exchange : Federal Sustainability for the Next Decade New - Normalization for Weather – CEQ will work with FEMP to develop guidance on adjusting agency energy intensity performance based on locality- specific benchmarking findings for individual buildings. (Requires PM.) New - Adjustment for Agency Progress to Date – Agencies that achieve the FY 2015 goal may choose an alternative target of a combined total reduction in energy intensity of 47.5% from 2003 to 2025. Meters – Agencies should continue to meter their Federal facilities. 7 III. (Energy) Sustainability Goals for Agencies (E.O. 13693, Section 3)

8. Energy Exchange : Federal Sustainability for the Next Decade Use remote building energy performance assessment auditing. Use Utility demand management programs. New – Requires use of Environmental Protection Agency (EPA) ENERGY STAR Portfolio Manager for covered buildings. Incorporating, where feasible, the consensus-based, industry standard Green Button data access system into reporting, data analytics, and automation processes. 8 Recommended Tools

9. Energy Exchange : Federal Sustainability for the Next Decade Implementing space utilization and optimization practices and policies Identifying opportunities to transition test-bed technologies to achieve the goals of this section. Conforming, where feasible, to city energy performance benchmarking and reporting requirements. 9 Recommended Tools

10. Energy Exchange : Federal Sustainability for the Next Decade Alternative Energy includes: – Thermal renewable energy (including from CHP and fuel cell systems) – Small modular nuclear reactor output – CHP and fuel cells powered by fossil fuels, but only the amount of output left after subtracting the amount of natural gas (thermal component) and/or electricity (eGRID factor) that would produce the same amount of BTUs/electricity – Other alternative energy: if agreed, FEMP can petition CEQ on behalf of agencies to include mechanical, ocean/aquifer, and daylighting in the “Other” category. 10 Clean Energy in EO 13693

11. Energy Exchange : Federal Sustainability for the Next Decade Renewable Electric Energy includes: – solar, – wind, – biomass, – landfill gas, – ocean (including tidal, wave, current, and thermal), – geothermal, – geothermal heat pumps, – Micro turbines (powered by renewable fuels), – municipal solid waste, or – new hydroelectric generation capacity achieved from increased efficiency or additions of new capacity at an existing hydroelectric project; No longer includes hydrokinetic, does not allow hydroelectric energy added to an existing dam that has not been used for hydropower in the past. 11 Clean Energy in EO 13693

12. Energy Exchange : Federal Sustainability for the Next Decade Technologies where all output energy counts as alternative energy: – Thermal renewable energy including from CHP, micro turbine and fuel cell systems using renewable fuel, electric output counts as renewable electricity, thermal output as alternative energy – Small modular nuclear reactors – Other alternative energy: Agencies may petition CEQ to include other forms of alternative energy that reduce carbon emissions. Measuring Alternative Energy 12

13. Energy Exchange : Federal Sustainability for the Next Decade Importance of Renewable Electric Target for Clean Energy Renewable Electric Target: By FY 2025, 30 percent of the total amount of electric energy consumed by each agency shall be renewable energy, 10% in FY16 and FY17, 15% in FY18 and FY19, 20% in FY20 and FY21, 25% in FY22 and FY23, 27.5% in FY24, 30% in FY25 and thereafter. Agencies to use renewable energy based on following priorities: – Install agency-funded renewable energy on-site and retain RECs – Contract for energy that includes the installation of a renewable energy project on-site or off-site from a Federal facility and retains RECs; – Purchase electricity and corresponding RECs; and – Purchase RECS When purchasing RECs or energy and corresponding RECs (last two priorities) sources shall have been placed into service within 10 years prior to start of the fiscal year. Agencies must still own RECs or have clear ownership of equivalent renewable and environmental attributes to meet renewable electric target 13

14. Energy Exchange : Federal Sustainability for the Next Decade SectionDocument Title Action - New, Major, Minor, Delete, or No Update Status/Schedule/Comments Buildings High-Performance and Sustainable Buildings Guidance (Final, 2008) Update Guiding Principles revisions to be developed by CEQ per EO Section 4. Buildings Federal Building Metering Guidance (Per U.S.C. 8253(e), Metering of Energy Use) Minor Update Action currently underway to tie guidance to the new E.O. Fleet Guidance for Federal Agencies on E.O. 13514 Section 12; Federal Fleet Management Update First draft complete. Final draft scheduled for Mid- August 2015 Renewabl e Energy Renewable Energy Requirement Guidance for EPAct 2005 and E.O. 13423 Delete CEQ E.O. Implementing Instructions and CEQ Renewable Energy Certificate Guidance will provide RE Guidance to Agencies. Old guidance will be deleted once CEQ REC Guidance is published. Reporting Reporting Guidance for Federal Agency Annual Report on Energy Management Minor Update Underway, updated routinely every year. Water Federal Agency Implementation of Water Efficiency and Management Provisions of Executive Order 13514 Minor Update Revisions in planning. FEMP Guidance Documents 14

15. Energy Exchange : Federal Sustainability for the Next Decade FEMP in collaboration with the DOE- Sustainability Performance Office is preparing: EO 13693 Training for Federal Agencies Coming Before December 31, 2015 https://www4.eere.energy.gov/femp/training/ 15 EO 13693 Training

16. Energy Exchange : Federal Sustainability for the Next Decade Thankyou Brad.Gustafson@ee.doe.gov 16

17. Energy Exchange : Federal Sustainability for the Next Decade EO SectionPrevious GoalsNew EO Goals Scope 1 and 2 GHGReduce by 28.7% by FY20 (vs. FY08 baseline), per agency commitment in response to EO 13514 Federal-wide goal is 40% reduction by 2025 (Sec. 1) Scope 3 GHGReduce by 14.6% by FY20 (vs. FY08 baseline), per agency commitment in response to EO 13514 Energy Use Intensity (BTU/GSF)Reduce by 30% (3% annually) by FY15 (vs. FY03 baseline), per EISA 2007 and EO 13423. Reduce 37.5% by FY20, per GSA SSPP. Reduce by 2.5% annually in FY16–25 (vs. NEW FY15 baseline) (Sec. 3(a)(i)) Data Center EfficiencyGeneral: Implement best practices for energy-efficient management Install and monitor advanced energy meters in all data centers by FY18 (Sec. 3(a)(ii)(B)) Establish PUE target of ≤ 1.2–1.4 for new data centers and ≤ 1.5 for existing (Sec. 3(a)(ii)(C)) “Clean Energy” target for electric and thermal energy (includes both renewable electric energy and alternative energy) None10% in FY16–17 13% in FY18–19 16% in FY20–21 20% in FY22–23 25% by FY25 (Sec. 3(b)) Renewable Electricity target10% of annual electric use in FY15, rising to 20% in FY20, per December 2013 Presidential Memo 10% in FY16–17 15% in FY18–19 20% in FY20–21 25% in FY22–23 30% by FY25 (Sec. 3(c)) Potable waterReduce by 26% (2% annually) by FY20 (vs. FY07 baseline) per EO 13514 Reduce by 36% (2% annually) by FY25 (Sec. 3(f)(i)) Energy Goals Old and New 17