Federal Programs For Energy Efficiency And Conservation

MARCH 11, 2003

Mr. Chairman, thank you for the opportunity to present testimony regarding Federal programs for energy efficiency and conservation.

The General Services Administration (GSA) has a long history of supporting and participating in efforts to promote Federal energy efficiency in our facilities. We also recognize the importance of our unique leadership role as the Government's landlord in demonstrating that energy efficiency and sound asset management principles are closely linked.

GSA's actions in the area of energy efficiency closely follow mandates set forth in Public Law 102-486 and numerous Executive Orders, most recently, President Bush's Executive Order 13221, Energy-Efficient Standby Power Devices and Executive Order 13123, Greening the Government through Energy Efficiency.

In fact, GSA annually develops an implementation plan to ensure all the energy management strategies identified in Executive Order 13123 are being pursued. Energy reduction and utility cost reduction goals are tracked as part of GSA's performance evaluation to the President. Results are reported to GSA senior management on a quarterly basis. Senior management and regional senior management executives have energy performance included as part of their performance evaluation.

GSA is making good progress toward achieving our goals. Since 1985, GSA has reduced energy usage in our facilities classified as Standard from 83,682 British thermal units (BTU) per gross square foot (GSF) to 66,174 BTU's per GSF. This reduction represents a decrease of 20.9 percent compared with the 1985 base year. The agency achieved this reduction by directly investing in energy conservation opportunities with paybacks of 10 years or less. From 1990 through 2002, GSA invested approximately $316.5 million in energy projects.

Since 1990, GSA has reduced energy usage in our Energy Intensive (industrial and laboratories) buildings from 432 thousand BTU per GSF to 272 thousand per GSF. This represents a decrease of 37.2 percent compared with the 1990 baseline.

GSA also benchmarks performance with comparable facilities operated and managed in the private sector. The utility benchmark, established by the Building Owners and Management Association, indicates PBS is operating , federal facilities, 34% below comparable commercial facilities for the period ending September 30, 2002.

Lastly, GSA is proud of its efforts to earn the ENERGY STAR Building Label for our portfolio. To date, GSA has earned the ENERGY STAR Building Label for 93 of its owned facilities and 1 leased facility with a total square footage of 27,896,356 GSF. This represents approximately 19% of our eligible square footage and 15% of our facilities agency wide.

GSA has a well-developed strategy for providing leadership to energy efficiency and conservation. GSA's energy efficiency actions can be divided into two broad categories: 1) Leadership and Management and 2) Energy Efficiency Performance and Implementation Strategies.

Under Management and Administration, GSA has created an energy management infrastructure designating a Senior Agency Official responsible for meeting the goals and requirements of Executive Orders. GSA has also formed a technical support team consisting of appropriate personnel to expedite and encourage the agency's use of strategies identified in Executive Orders. GSA also utilizes a wide variety of management tools including award programs, performance evaluations, training and education workshops and designation of our buildings as showcase energy facilities.

In addition to the technical support team, GSA activities in energy efficiency and conservation are implemented and managed by a national Energy Center of Expertise. The Center, supported directly by GSA associates from all GSA
regional offices, is responsible for coordinating energy activities nationally. The Center monitors and coordinates energy usage and activities; develops and implements energy savings projects; leverages our purchasing power through national contracts; establishes and manages Energy Savings Performance Contracts (ESPCs) ; and develops annual implementation plans and strategies to achieve our goals.

The second broad category encompassing GSA's energy efficiency actions pertains to Energy Efficiency Performance and Implementation Strategies. To know our portfolio and needs, GSA maintains a 10-year audit plan in which approximately 10% of all space is audited in any given year. Comprehensive audits are performed by a variety of agents: some are performed by in-house personnel, some by utilities, some by Department of Energy's Save Energy Contractors, and some by architect-engineer contractors. Audits identify energy conservation measures that may lead to future energy conservation proposals or other viable alternatives. GSA associates have a wide array of tools to take action designed to improve efficiency and conservation of the current and future portfolio. These include energy projects, use of renewable energy (energy produced by solar, wind, geothermal, and biomass power) and sustainable building design.

Direct appropriations for energy savings projects in today's world are difficult to count on. As a result, GSA is maximizing the use of available alternatively financing contracting mechanisms as a strategy. In 2002 GSA awarded a total of 7 alternatively financed projects, all 7 were ESPC Projects. This brings the total to 23 ESPCs and 19 Utility Energy Savings Contracts (UESCs) currently active and in place. GSA currently has 13 projects that are in various stages of development, anticipating FY2003 award for most of these. The total dollars budgeted for this effort are $179.4 Million.

GSA also considers opportunities for solar and other renewable energy in building design and retrofits. When GSA performs an energy audit of a facility, renewable opportunities are identified and implemented if they are life-cycle cost effective. In FY2002, GSA received an estimated 3,207 million British thermal units (MMBtu) in energy use from self-generated projects. Approximately 156 megawatt hours (MWh) of this coming from GSA's 6 Photovoltaic (PV) installations, 1,779 MMBtu coming from GSA's 5 Solar thermal projects and 897 MMBtu coming from 1 completed geothermal project.

GSA has had very good success in purchased renewable energy as well. In FY2002, GSA purchased a total of 24,306 MWh of electricity from renewable energy through competitive power contracts and the use of green power programs offered by local distribution companies. In FY2002 GSA had active competitive power contracts that contained green power components in 6 of GSA's 11 Regions.

Looking toward the future in our capital program, GSA now requires all new buildings and major repairs and alterations projects for existing buildings to conform to Leadership in Energy and Environmental Design (LEED) Silver requirements. The LEED Green Building Rating System� is a voluntary, consensus-based national standard for developing high-performance, sustainable buildings. Members of the U.S. Green Building Council representing all segments of the building industry developed LEED and continue to contribute to its evolution. Our ultimate goal with the LEED program is to bring new buildings into our inventory that are energy efficient, while optimizing the energy performance of our existing building inventory.

In closing, GSA is committed to providing leadership to energy efficiency and conservation. Energy efficiency makes good business sense and helps fulfill our mission. Meeting the 30% reduction goal in our buildings by the year 2005 and 35% by 2010 is hard work. GSA is currently in the process of issuing a national business strategy to deal with the 2005 and 2010 goals. The strategy will focus on 4 key areas: 1) Efficiency of new buildings entering the portfolio; 2) Leveraging repairs and alterations in existing buildings; 3) Buildings exiting the inventory and 4) Operations of existing buildings.

I would be pleased to answer any questions you or other members of the Committee may have on this matter.