TREASURY DIRECTIVE 75-04
DATE: December 31, 2008
SUBJECT: Energy Management Program
1. PURPOSE. This directive establishes policies and assigns responsibilities for establishing and maintaining comprehensive energy programs within the Department and complying with all relevant regulations and Executive Orders.
2. SCOPE. This directive applies to all bureaus, the Departmental Offices (DO), the Office of Inspector General, and the Treasury Inspector General for Tax Administration. The authority of the Inspectors General is set forth in Section 3 of the Inspector General Act and the Internal Revenue Service Restructuring and Reform Act, and is defined in Treasury Order 114-01 (OIG) and Treasury Order 115-01 (TIGTA) or successor orders. The provisions of this directive shall not be construed to interfere with that authority. Bureaus located in space provided through the General Services Administration (GSA) will partner with GSA to ensure Treasury compliance with applicable energy requirements.
3. POLICY. It is the policy of the Department of the Treasury (Department) to implement an energy management program that meets and exceeds the requirements of applicable energy laws, regulations, and Executive Orders, and supports its missions in an environmentally, economically, and fiscally sound, integrated, continuously improving efficient and sustainable manner by:
a. improving energy efficiency of agency facilities, on a gross square foot (BTF/GSF) basis, 3 percent annually through the end of fiscal year (FY) 2015 or 30 percent by 2015 compared to FY 2003 baseline year, thereby reducing greenhouse gas emissions;
b. purchasing renewable energy or renewable energy certificates such that at least half of the statutorily required renewable energy consumed come from new renewable sources, and implementing renewable energy generation projects by not less than 3 percent FY 2007 – 2009, 5 percent FY 2010 – 2012, 7.5 percent FY 2013 and each year thereafter of total electricity consumption and implementing renewable energy generation projects where practical and cost effective;
c. reducing water consumption intensity, beginning in FY 2008, 2 percent annually through the end of FY 2015 or 16 percent through the end of FY 2015, using a baseline year of FY 2007;
d. requiring the acquisition of goods that are energy and water efficient; including, but not limited to ENERGY STAR equipment and ensuring that ENERGY STAR features are enabled;
e. ensuring that new construction and major renovations of agency facilities comply with the “Guiding Principles for Federal Leadership in High Performance and Sustainable Buildings set forth in the Federal Leadership in High Performance and Sustainable Buildings Memorandum of Understanding (2006),” with 15 percent of the agency’s Federal capital building inventory incorporating the sustainable practices in the Guiding Principles by the end of FY 2015;
f. installing standard meters or advanced electric meters on all Treasury occupied buildings by the year 2012 and establishing effective metering programs in accordance with the Energy Policy Act of 2005 (EPAct 2005) and subsequent Department of Energy (DOE) Guidance for Electric Metering in Federal Buildings (Feb 3, 2006). Treasury bureaus shall establish their own implementation plans for accomplishing this installation; and
g. identifying covered facilities and facility energy managers in accordance with Energy Independence and Security Act (EISA) 2007.
4. DEFINITIONS. All definitions pertinent to this directive may be found in Executive Order 13423. All references relate to the Sections of Executive Order 13423. A copy
of the Order is available on the Department of Energy’s website at http://www1.eere.energy.gov/femp/about/eo_fedmgmt.html.
5. BACKGROUND. Executive Orders give specific responsibilities to Heads of Agencies, including implementing sustainable practices and management systems that support them, establishing environmental programs, and designating a Senior Agency Official.
6. RESPONSIBILITIES.
a. The Assistant Secretary for Management and Chief Financial Officer, as the Senior Agency Official (SAO), is responsible for:
1) establishing the overall policy and guidelines to implement the Executive Orders within the Department, as well as oversight of the energy program and reporting to the DOE and the Office of Management and Budget (OMB); and
2) establishing the Treasury Energy Technical Support Team consisting of appropriate procurement, legal, budget, management, human resources, and technical representatives to expedite and encourage the use of appropriations, Energy Savings Performance Contracts (ESPC), Utility Energy Savings Contracts (UESC) and other alternative financing mechanisms necessary to meet the goals and requirements of Executive Orders, EPAct 2005 and EISA 2007.
b. The Heads of Bureaus, the Deputy Assistant Secretary for Departmental Offices Operations (for Departmental Offices), the Inspector General for Tax Administration, and the Inspector General, (as the Executive Orders, EPAct 2005 and EISA 2007 relates to their respective bureaus and offices), are responsible for:
1) implementing a program to ensure compliance with Executive Orders and the goals and requirements of the EPAct 2005 and EISA 2007 as amended;
2) designating a senior bureau office official to serve as Senior Bureau Official (SBO) with responsibility for, but not limited to, meeting the areas described in the Executive Orders, EPAct 2005 and EISA 2007;
3) designating a bureau energy team consisting of appropriate procurement, legal, budget, management, personnel, and technical representatives to expedite and encourage the use of appropriations, ESPC, UESC and other alternative financing mechanisms necessary to meet the goals and requirements of the Executive Orders, EPAct 2005 and EISA 2007;
4) including the funding request necessary to meet the goals of the Order in the bureau’s annual budget submission to the Department, in accordance with OMB guidelines;
5) submitting the annual energy report to Office of Environment, Safety and Health (OESH) in accordance with the annual call letter guidance provided by DOE and OMB;
6) using life-cycle cost analysis in making decisions about investments in products, services, construction, and other projects to lower the Federal Government’s costs and to reduce energy and water consumption (life-cycle cost analysis guidance is available at http://www1.eere.energy.gov/femp/procurement/eep_eccalculators.html);
7) conducting energy audits of the bureau’s facilities as appropriate;
8) ensuring that personnel are using a variety of energy management strategies and tools, where life-cycle cost-effective goals are established to meet the objectives of the Order, including:
a) maximizing the use of available alternative financing contracting mechanisms (Section 403(a)), including ESPC and UESC, when life-cycle cost-effective, to reduce energy use and cost in bureau facilities and operations;
b) where life-cycle cost-effective, selecting ENERGY STAR and other energy-efficient products as identified in the Federal Energy Management Program (FEMP) Energy Efficient Products Guide when acquiring energy-using products;
c) striving to meet the building criteria for energy performance and indoor environmental quality in bureau eligible facilities to the maximum extent practicable;
d) following the sustainable design principles set forth in the Whole Building Design Guide available at http://www.wbdg.org/;
e) when entering into leases, including the renegotiation or extension of existing leases, incorporating lease provisions that encourage energy and water efficiency by following the provisions of GSA’s model green lease available at www.gsa.gov/pbs/pe/green-lease.htm;
f) exploring efficiency opportunities in industrial facilities for steam systems, boiler operations, air compressor systems, industrial processes, and fuel switching, including co-generation and other efficiency and renewable energy technologies;
g) implementing Federal building energy efficiency standards in new Federal building designs to achieve energy consumption levels that are at least 30 percent below the levels established in the American Society of Heating, Refrigeration and Air-Conditioning Engineers (ASHREAE) Standard in the International Energy Code, as appropriate, if life-cycle cost-effective;
h) using off-grid generations systems, including solar hot water, solar electric, solar outdoor lighting, small wind turbines, fuel cells, and other off-grid alternatives, where such systems are life-cycle cost-effective and offer other benefits including energy efficiency, pollution prevention, source energy reductions, avoid infrastructure costs or expedited service; and
i) reducing source energy use by striving to use electricity from clean, efficient, and new renewable sources after 1999, including meeting DOE’s goal for generating electricity from renewable energy technologies.
9) taking advantage of competitive opportunities in the electricity and natural gas markets to reduce costs and enhance services by, among other things, aggregating demand across facilities or bureaus to maximize economic advantage or participate in GSA contracts;
10) striving to minimize the greenhouse gas intensity by purchasing electricity from sources that use highly efficient generating technologies (when such technologies are life-cycle cost-effective);
11) adopting policies and pursuing projects to meet DOE’s renewable energy goal by increasing the use of electricity from new renewable energy sources,
12) seeking to improve the design, construction, and operation of mobile equipment and implementing all life-cycle cost-effective energy efficiency measures that result in a cost savings while improving mission performance, including the use of alternative or renewable based fuels;
13) using employee incentive programs to reward exceptional performance in implementing Executive Orders, EPAct 2005 and EISA 2007;
14) including successful implementation of the provisions of Executive Orders, EPAct 2005, and EISA 2007 in the position descriptions and performance evaluations of bureau heads, members of the agency energy team, principal program managers, heads of field offices, facility managers, facility energy managers and other appropriate employees as applicable;
15) when statutorily authorized, permitting the retention of savings generated from energy and water by the facility that generated the savings as an incentive for that facility to undertake more energy management initiatives, invest in renewable energy systems and purchase electricity from renewable energy sources;
16) ensuring that policies and procurement courses offered by the bureaus include information on Federal energy management tools, including ESPC, UESC, ENERGY STAR and other energy-efficient products, and life-cycle cost analysis;
17) ensuring that all appropriate personnel receive training for implementing Executive Orders, including development of outreach programs that include education, training, and promotion of ENERGY STAR and other energy-efficient products for Federal purchase card users;
18) designating exemplary new and existing facilities with significant public access and exposure as showcase facilities to highlight energy or water efficiency and renewable energy improvements;
19) requesting a waiver to DOE through OESH from the requirements of Executive Orders, EPAct 2005 and EISA 2007 when the bureau determines that a provision is inconsistent with the bureau’s mission;
20) identifying covered facilities and facility energy managers in accordance with Energy Independence and Security Act 2007 (EISA);
21) submitting the bureau OMB semi-annual energy scorecard to the OESH on July 1 and January 1 (or as requested), and providing any additional information as requested;
22) continuing to reduce water consumption intensity compared to 2007 water baseline; 2 percent annually through FY 2015 or 16 percent by the end of FY 2016; cost baseline and implement life-cycle cost-effective programs that include a water management plan by following the DOE guidance available at http://www1.eere.energy.gov/femp/information/publications.html#waterefficiency; and
23) continuing implementation plan in accordance with the Executive Orders, EPAct 2005 and EISA 2007, including requiring installation of meters and advanced electric meters on all federal buildings by the year 2012, consistent with DOE guidance found at http://www1.eere.energy.gov/femp/pdfs/adv_metering.pdf.
c. The Director, Office of Environment, Safety and Health (OESH), under general guidance of the SAO, is responsible for:
1) providing program support to the SAO in implementing the requirements of the energy management laws, the Executive Orders, EPAct 2005 and EISA 2007, and this directive;
2) promoting energy management activities and disseminating related information throughout the Department;
3) assisting in resolving energy management-related problems associated with Departmental actions, activities or programs;
4) developing and administering a Department-wide annual awards program to reward its most innovative programs;
5) coordinating the annual submission of the energy management reports to DOE and OMB; and
6) serving as the technical and management member of the Treasury Energy Council.
d. The Senior Procurement Executive is responsible for:
1) promoting the procurement of energy efficient products through the bureau chief procurement officers;
2) promoting the program through awareness, training as appropriate, and management reporting;
3) promoting the use of energy efficient programs to purchase cardholders; and
4) participating in the Treasury Energy Technical Support Team on procurement-related matters.
7. REPORTING REQUIREMENTS. Annual report submissions shall comply with DOE FEMP guidelines EO 13423. This report shall contain:
a. Office of Management and Budget (OMB) Circular A-11, Exhibit 55 (Annual Energy Management Data Report);
b. Federal Agency Annual Report on Energy Management (Narrative) Annual Energy Management Data Report; (Excel spreadsheet); and
c. OMB Energy Score Card (bi-annual report July & January).
8. AUTHORITIES.
a. Executive Order 13423, "Strengthening Federal Environmental, Energy, and Transportation Management," dated January 24, 2007, available at http://www.ofee.gov.
b. Instructions for Implementing Executive Order 13423, dated March 29, 2007, available at http://ofee.gov/eo/eo13423_instructions.pdf.
c. Federal Energy Management and Planning Program Regulations (10 CFR 436).
9. REFERENCES.
a. Department of Energy "Executive Order 13423 Guidance Documents" available at http://www1.eere.energy.gov/femp/information/publications.html.
b. Office of Federal Procurement Policy (OFPP), Policy Letter 92-4, "Procurement of Environmentally-Sound and Energy-Efficient Products and Services."
c. Department of Energy "Energy Efficient Products Guide" available at http://www1.eere.energy.gov/femp/procurement/.
d. Building Life-Cycle Cost (BLCC) Programs available at http://www1.eere.energy.gov/femp/pdfs/fr_notice_cfr433_434_435.pdf.
e. Department of Energy Guidance for Electric Metering in Federal Buildings, February 3, 2006, available at http://www1.eere.energy.gov/femp/pdfs/adv_metering.pdf.
f. Energy Policy Act 2005 (EPAct 2005) available at http://www1.eere.energy.gov/femp/information/publications.html.
g. Energy Independence and Security Act (EISA) 2007 (Public Law 110-140) available at http://www1.eere.energy.gov/femp/controlledaccess/pdfs/sahl_pres0208.pdf.
10. CANCELLATION. Treasury Directive 75-04, Energy Management Program, dated April 27, 2001, is superseded.
11. OFFICE OF PRIMARY INTEREST. Deputy Assistant Secretary Departmental Offices Operations, Office of the Assistant Secretary for Management and Chief Financial
Officer.
/S/
Peter B. McCarthy
Assistant Secretary for Management
and Chief Information Officer