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Federal Requirements

Distributed energy resources (DER) and combined heat and power (CHP) systems have many potential benefits at Federal facilities. One is helping federal agencies to meet their energy management goals. This page provides excerpts from legislation and policies that may be of interest to federal agencies considering DER at their facilities. You can also view each document in greater detail through the links below.

Executive Order 13423

DER and CHP systems may help your facility meet the federal energy management goals outlined in Executive Order 13423 (PDF 104 KB, 7 pp). Some of the sections that may be applicable to a DER or CHP system installation are noted below. Download Adobe Reader.

  • Agencies shall reduce energy consumption per gross square foot by 3 percent annually through the end of fiscal year 2015, or 30 percent by the end of fiscal year 2015, relative to the FY 2003 baseline.
  • At least half of the statutorily required renewable energy consumed by the agency in a fiscal year comes from new renewable sources (in service after January 1, 1999).

Guidance for Providing Credit Toward Energy Efficiency Goals for Cost-Effective Projects Where Source Energy Use Declines But Site Energy Use Increases

This guidance (PDF 1.5 MB, 37 pp), issued on April 26, 2000, establishes the following requirement relevant to certain DER projects: The Federal Government shall strive to reduce total energy use and associated greenhouse gas and other air emissions, as measured at the source. To that end, agencies shall undertake life-cycle cost-effective projects in which source energy decreases, even if site energy use increases. In such cases, agencies will receive credit toward energy reduction goals through guidelines developed by DOE. This guidance applies directly to the use of CHP systems, where site energy use may increase, but overall efficiency and site energy consumption decreases.

Presidential Directive on Energy Conservation at Federal Facilities

Issued on May 3, 2001, this Presidential Directive asks federal facility managers to "Consider adding on-site generation using micro-turbines, fuel cells, combined heat and power, renewable, or other appropriate technology."