Federal Procurement of Energy-Efficient Products

June 17. 2009 Slide 1

Federal Procurementof Energy-Efficient Products

Christopher PayneLawrence Berkeley National Laboratory

April 2, 2010


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


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


Why?

• Energy and cost savings

• Pollution prevention

• Lead by example

• Transform markets


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


How?

• Product Energy-Efficiency Specifications

• Agency Support and Institutionalization of EE Procurement

• Analysis and Documentation

• Low Power Standby

• Outreach and Partnerships

• Bulk Procurement


Purchasing Specifications

• Market research and energy use analysis

• Understanding buyer’s needs

• Recommend efficiency levels

• Prepare specifications

• Review and update specifications

• Post Product Lists


Institutionalization

• Federal Supply Services (GSA & DLA)

• Agency procurement policies– Federal Acquisition Regulations

– Guide Specifications

– Model Contract Language

• Procurement Working Group


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”


Standby Power

• Market research

• Level setting

• Product listing

• Coordinate with other market transformation actors


Outreach & Partnerships

• Market Transformation Actors

• Standards Bodies

• Industry Associations

• Efficiency Advocates

• State and Local Government

• Other Research Institutions


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)


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


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


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


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


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


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


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


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

Federal Procurement of Energy-Efficient Products

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