Phoenix Convention Center • Phoenix, Arizona

Institutional Change for Sustainability

Institutional Change

Hayes JonesFEMP

August 11, 2015

Energy Exchange: Federal Sustainability for the Next Decade

• Challenge of Energy Management

• Role of Institutional Change in Energy Management

Agenda

Energy Exchange: Federal Sustainability for the Next Decade3

Managing Energy is Challenging

Energy Exchange: Federal Sustainability for the Next Decade

Outcome Based Requirements

ENERGY

42 U.S.C §15852(a)(EPAct 2005 §203)

Renewable Energy Use

42 U.S.C §8253(a)(EISA 2007 §431)

Energy Intensity Reduction

42 U.S.C §6834 (a)(3)(D)(i)(I)(EPAct §109)

Building Energy Efficiency Stds-

Fossil Fuels

GHG

E.O. 13693

Greenhouse Gas Reductions

WATER

E.O. 13693)

Water Conservation &

Reduction

FLEETS

42 U.S.C §6374e(a)(EISA 2007 §142)

Fleets Petroleum Reduction

FACILITIES

E.O. 13693

HPSB Agency Compliance

Design Standards Requirements

ENERGY

42 U.S.C §6834 (a)(3)(A)(iii)(EISA 2007 §523)

Solar Hot Water Heaters

42 U.S.C §6834 (a)(3)(A)(EPAct §109)

Building Energy Efficiency Stds- Design Standards

E.O. 13693)

Zero Net Energy Building

WATER

42 U.S.C §6834 (a)(3)(A)(ii)(EPAct §109)

Federal Building Water Efficiency Standard

FACILITIES

E.O. 13693)

HPSB Facility Compliance - Guiding Principles

Authority/Requirements for Federal Government

Energy Exchange: Federal Sustainability for the Next Decade

Prescriptive Process Requirements

ENERGY

42 U.S.C §8253(e)(EPAct 2005 §103, EISA

2007 §434)

Metering of Energy Use

42 U.S.C §8253(f)(EISA 2007 §432)

Energy/Water Efficiency Management (EISA 432

Evaluations, Benchmarking)

E.O. 13693

New Renewable Energy

EO 13693

ESPC Performance Contracting

FACILITIES

42 U.S.C §17091(a)(EISA 2007 §435)

Energy Star Leasing Requirements

42 U.S.C §8254 (EISA 2007 §441)

Building life-cycle costs

REPORTING

42 U.S.C. § 8258(a)

(NECPA §543,EISA §432)

Gov. Efficiency Status Reports

42 U.S.C. § 15852(d)

(EPAct 2005 §203)

Renewable Reporting

42 U.S.C. § 6374e

(EISA 2007 §142 )

Fleet Fuel Use Reporting

42 U.S.C. § 13218

(EPAct 2005 §705)

Fleet Alt. Fuel Purchasing Reporting

E.O. 13693)

Greenhouse Gas Reporting

PROCUREMENT

42 U.S.C. §8259b

(EISA 2007 §525)

Efficient Product

Procurement

42 U.S.C. §8251 (EPAct 2005 §104)

ES & FEMP Designated

Products Reqs

E.O 13693

Contracts

FLEETS

42 U.S.C §13212(EPAct 1992 §303)

Fleets Purchasing – Alt Fuel

42 U.S.C §16122(b)

(EPAct 1992 §203)

Fleets Purchasing – Fuel Cell/Hydro

42 U.S.C §6374(EPAct 2005 §701)

Use of Alt. Fuels – Dual Fuel Fleet

42 U.S.C §6374(EPAct 1992 §302)

Use of Alt. Fuels – Domestic Fuel

42 U.S.C §17053(a)(EISA 2007 §246)

Fueling Centers

42 U.S.C §13212(EISA 2007 §141)

Fleet Purchasing - GHG

Authority/Requirements for Federal Government

Energy Exchange: Federal Sustainability for the Next Decade6

Funding Challenges

Performance contracts offer a great solution for organizations:• Use proven technologies to save energy• No capital required, paid for with savings

The technology and economics are solved.Why doesn’t everyone want an ESPC?

Energy Exchange: Federal Sustainability for the Next Decade7

We’ve made great progress to date!

Energy Exchange: Federal Sustainability for the Next Decade

Agency Achievement

46.2% reduction from 197520.6% reduction from 2003

19751977

19791981

19831985

19871989

19911993

19951997

19992001

20032005

20072009

20112013

201580,000

100,000

120,000

140,000

160,000

180,000

200,000Federal Facility Energy Intensity, 1975 - 2013

Fiscal Year

Site

Btu

per

Gro

ss S

quar

e F

oot

US Federal Government has made significant strides to reduce energy intensity and GHG emissions – Has reduced building energy

intensity by 46.2% from 1975 and 20.6% from 2003

– Buildings and hospitals 30% and 20% more efficient than CBECs stock.

Energy Exchange: Federal Sustainability for the Next Decade9

How can we continue to improve?

Energy Exchange: Federal Sustainability for the Next Decade10

Technologies

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Institutions and People

Navy Achieved 50% Savings through integration of Technology and Behavior

Energy Exchange: Federal Sustainability for the Next Decade

Develop and provide to agencies systematic, evidence-based guidance, training and tools supporting effective organizational and individual behavior change for achieving the goals of Executive Order 13693.

Increase the effectiveness of FEMP programmatic activities through the application of evidence-based program design principles.

Increase the likelihood that results achieved will be significant and persistent.

FEMP Institutional Change Team

Energy Exchange: Federal Sustainability for the Next Decade

Significant institutional change creates new standard ways of operating that drive energy efficiency, renewable energy utilization and greenhouse gas emission reductions.

Persistence occurs when significant institutional change is embedded into organizational roles, rules and tools in a manner that creates a new, sustainable way of doing business that is transmitted over time through organizational culture.

FEMP Institutional Change Team

Energy Exchange: Federal Sustainability for the Next Decade14

FEMP Institutional Change Team

• Gaps between expected and achieved results are commonplace

• “Simple” or “streamlined” are often neither

• Information is not action• Technology does not equate to

use or consistent use• Organizations and agencies are

complex systems requiring multiple entry points

• Because many barriers are not technical or economic . . .

• The Institutional Change Team . . .

• Acknowledges and addresses these challenges

• Uses a whole-system approach• Emphasizes context• Identifies the gaps and

understands why they exist• Converts knowledge into action• Reframes and expands options

Energy Exchange: Federal Sustainability for the Next Decade

Alignment of context, individual behavior and technology maximizes potential results. And, not or.

FEMP focus is on the institutional context of the Federal government.

Context

TechnologyBehavior

FEMP Institutional Change Team

Energy Exchange: Federal Sustainability for the Next Decade

1. Employer – employee behavior expectations can be modified to encompass sustainable performance

2. Leadership hierarchy exists or can be created3. Modifying key roles can leverage large changes4. Rules can be created or modified to enable, or

reduce barriers, to change5. Tools can be created or modified to enable

change or reduce barriers to change6. Institutional culture can cause changes to persist

Why Institutional Focus?

FEMP Institutional Change Team

Energy Exchange: Federal Sustainability for the Next Decade17

FEMP Institutional Change Team

Continuous Change for Sustainability

Energy Exchange: Federal Sustainability for the Next Decade18

FEMP Institutional Change Team

Energy Exchange: Federal Sustainability for the Next Decade

• Leverage leadership of key roles• Connect to what motivates action (mission)• Make explicit, public commitments • Find success and clone it (bright spots, best practices)• Measure progress and provide actionable feedback• Create enabling institutional, physical environment • Engage individuals and empower action • Plan and build for the long term

Eight Evidence-Based Principles

FEMP Institutional Change Team

Energy Exchange: Federal Sustainability for the Next Decade20

FEMP Institutional Change Team

Continuous Change for Sustainability

Energy Exchange: Federal Sustainability for the Next Decade

Questions?

Federal Energy Management Program

Contact InformationHayes Jones

Hayes.Jones@ee.doe.gov