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Federal Procurement of Energy-Efficient Products

Federal Procurement of Energy-Efficient Products. Christopher Payne Lawrence Berkeley National Laboratory April 2, 2010. FEMP’s Mission.

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Federal Procurement of Energy-Efficient Products

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  1. Federal Procurementof Energy-Efficient Products Christopher Payne Lawrence Berkeley National Laboratory April 2, 2010

  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. 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. Why? • Energy and cost savings • Pollution prevention • Lead by example • Transform markets

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

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

  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. Standby Power • Market research • Level setting • Product listing • Coordinate with other market transformation actors

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

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

  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. 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. 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. 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. 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. 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

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