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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 meet energy management goals. This page provides excerpts from legislation and regulations policies that may be of interest to Federal agencies considering DER or CHP.

Executive Order 13423

DER and CHP systems may help Federal facilities meet the energy management goals outlined in Executive Order 13423. According to the executive order:

• Agencies shall reduce energy consumption per gross square foot by 3% annually through the end of fiscal year 2015 or 30% by the end of fiscal year 2015 relative to the fiscal year 2003 baseline.

• At least half of the statutorily required renewable energy consumed by Federal agencies in a fiscal year must come from new renewable sources in service after January 1, 1999.

Guidance

Executive Order 13423 guidance (PDF 1.5 MB) outlines the process for providing credit toward energy efficiency goals from cost-effective projects where source energy use declines but site energy use increases. Download Adobe Reader.

The guidance establishes that, 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.
• 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.