federal procurement of energy-efficient products
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Federal Procurement of Energy-Efficient Products. Christopher Payne Lawrence Berkeley National Laboratory April 2, 2010. FEMP’s Mission. - PowerPoint PPT PresentationTRANSCRIPT
June 17. 2009 Slide 1
Federal Procurementof Energy-Efficient Products
Christopher PayneLawrence Berkeley National Laboratory
April 2, 2010
June 17. 2009 Slide 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
June 17. 2009 Slide 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
June 17. 2009 Slide 4
Why?
• Energy and cost savings
• Pollution prevention
• Lead by example
• Transform markets
June 17. 2009 Slide 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
June 17. 2009 Slide 6
How?
• Product Energy-Efficiency Specifications
• Agency Support and Institutionalization of EE Procurement
• Analysis and Documentation
• Low Power Standby
• Outreach and Partnerships
• Bulk Procurement
June 17. 2009 Slide 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
June 17. 2009 Slide 8
Institutionalization
• Federal Supply Services (GSA & DLA)
• Agency procurement policies– Federal Acquisition Regulations
– Guide Specifications
– Model Contract Language
• Procurement Working Group
June 17. 2009 Slide 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”
June 17. 2009 Slide 10
Standby Power
• Market research
• Level setting
• Product listing
• Coordinate with other market transformation actors
June 17. 2009 Slide 11
Outreach & Partnerships
• Market Transformation Actors
• Standards Bodies
• Industry Associations
• Efficiency Advocates
• State and Local Government
• Other Research Institutions
June 17. 2009 Slide 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)
June 17. 2009 Slide 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
June 17. 2009 Slide 14
0
1
2
3
4
5
6
7
8
9
10
Efficiency
Nu
mb
er o
f M
od
els
0%
25%
50%
75%
100%
Per
cen
tile
(100
)
Setting Energy Efficiency Levels
Sets minimum efficiency for purchasing
Steps to determine performance levels:
1) Collect & review data on product efficiency
2) Rank products from highest to lowest efficiency
3) Calculate top 25th percentile on this ranking
4) Check against other recognized programs
5) Confirm 3 or more manufacturers
Cumulative Percentage
Top 25th
June 17. 2009 Slide 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
June 17. 2009 Slide 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
June 17. 2009 Slide 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
June 17. 2009 Slide 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
June 17. 2009 Slide 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
June 17. 2009 Slide 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