Executive Order (EO) EO 13423, Strengthening Federal Environmental, Energy, and Transportation Management, Signed by President Bush on January 2

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1 Western Sustainability Pollution Prevention Network Presidential Executive Orders Regarding Energy Efficiency and Renewable Energy Projects Phill Consiglio Southern California Edison

2 Executive Order (EO) EO 13423, Strengthening Federal Environmental, Energy, and Transportation Management, Signed by President Bush on January 24, 2007 Instructs Federal agencies to conduct their environmental, transportation, and energy-related related activities under the law in support of their respective missions in an environmentally, economically and fiscally sound, integrated, t continuously improving, i efficient, i and sustainable manner The Order sets goals in the following areas: Energy Efficiency Renewable Energy Recycling Electronics Stewardship Water Conservation - Acquisition - Toxic Chemical Reduction - Sustainable Buildings - Fleets E.O rescinds several previous EOs, including E.O , E.O , E.O , E.O , and E.O In addition, the order requires more widespread use of Environmental Management Systems (EMS) as the framework in which to manage and continually improve these sustainable practices.

3 EO (cont.) Distributed Generation. Where life-cycle cost effective, each agency shall implement distributed generation systems in new construction or retrofit projects, including renewable systems such as solar electric, solar lighting, geo (or ground coupled) thermal, small wind turbines, as well as other generation systems such as fuel cell, cogeneration, or highly efficient alternatives. In addition, agencies are encouraged to use distributed generation systems when a substantial contribution is made toward enhancing energy reliability or security. Metering. To the maximum extent practicable, agencies should install metering devices that measure consumption of potable water, electricity, and thermal energy in Federal buildings and other facilities and grounds. Data collected shall be incorporated into Federal tracking systems and be made available to Federal facility managers. Agencies should consider inclusion of metering requirements in all ESPCs and UESCs, as appropriate. p Auditing. Agencies should conduct energy and water audits of at least 10 percent of facility square footage annually and conduct new audits at least every 10 years, thereafter. This audit requirement can be met by audits done in conjunction with ESPC or UESC projects. Energy Star Tools. For applicable facilities, agencies should meet Energy Star Building criteria, and score the energy performance of buildings using the Energy Star Portfolio Manager rating tool as part of comprehensive facility audits. Agencies may use the Energy Star Portfolio Manager rating tool to track energy and water use in all facilities. Labs21. Agencies should explore efficiency opportunities in applicable facilities and programs such as the Labs21 partnership to encourage the development of sustainable, high performance, and low-energy laboratories nationwide. Energy Purchasing. Agencies should purchase electricity and thermal energy from sources that use high efficiency and low-carbon generating technologies in order to reduce greenhouse gas intensity to the extent possible. Water Efficient Products. Where applicable, agencies should purchase WaterSense (SM) labeled products and choose irrigation contractors who are certified through a WaterSense labeled program.

4 Funding Projects EO The following instruments should be utilized to the maximum extent practical to implement energy efficiency management projects, water management projects, and renewable energy projects with energy conservation measures (ECMs) having long- and short-term term payback periods that t can be incorporated into life-cycle cost effective contracts. Appropriated funds may be combined with Energy Savings Performance Contracts (ESPCs) and Utility Energy Service Contracts (UESCs) to leverage government funding and optimize project scope and reductions in energy use and cost of facility operations. Renewable energy measures shall be considered in each ESPC or UESC proposal and be implemented where practical. ESPCs can facilitate te and accelerate completion of large projects that t can incorporate ECMs with long- and short-term term payback periods, through life-cycle cost-effective performance contracts. UESCs enable projects in States where the utility companies are permitted and encouraged to perform energy savings services, especially in peak load constrained regions of the country. Direct Appropriated Funding. Appropriations should be requested in annual budget requests and prioritized for application in projects or measures that do not generate savings sufficient to support private sector financing or for application as cost share to ESPCs/UESCs so that larger, more comprehensive projects can be undertaken.. Enhanced Use Leasing. This tool can be utilized for large or long-term renewable and cogeneration projects and where appropriate and authorized. Ratepayer Incentives. Incentives such as ratepayer supported rebates from public benefit funds or utilities should be utilized at every opportunity to enhance energy reduction. Retention of Funds. Retention of unused appropriated funds directly related to energy and water cost savings by all agencies can be used for reinvestment in energy or water conservation and sustainable building requirements.

5 Implementing EO UESC at SCE Energy Efficiency and Renewable Energy Project Development and Management for Federal Customers Free Preliminary i Audits Investment Grade Audits Project Development Financing Construction Management Commissioning M&V Turn-Key Design/Bid/Build or Design/Build

6 EO EO 13514, "Federal Leadership in Environmental, Energy, and Economic Performance," was signed by President Obama on 5 October This EO does not rescind/eliminate the requirements of EO Instead, it expands on the energy reduction and environmental performance requirements for Federal agencies identified in EO The goal: "to establish an integrated strategy towards sustainability in the Federal Government and to make reduction of greenhouse gas emissions (GHG) a priority for Federal agencies." Federal agencies are required to meet a series of deadlines critical to achieving the GHG reduction goals of the EO: By 5 November 2009 each agency submitted the name of their Senior Sustainability Officer (SSO) to the CEQ Chair and OMB Director; On 4 January 2010 a percentage reduction target for agency-wide reductions of scope 1 and 2 GHG emissions in absolute terms by fiscal year 2020, relative to a fiscal year 2008 baseline of the agency's scope 1 and 2 GHG is due to the CEQ Chair and OMB Director; On 2 June 2010 Scope 3 targets and the Strategic Sustainability Performance Plan is due to the CEQ Chair and the OMB Director (NOTE: Section 8 of the EO describes the Strategic Sustainability Performance Plan required contents); 31 January 2011 the comprehensive GHG inventory is due from each of the agencies to the CEQ Chair and OMB Director.

7 EO (cont.) In addition to guidance, recommendations, and plans which are due by specific dates, EO lays out the following numerical targets for agencies: Reduce petroleum consumption by 2% per year through FY2020 (applies to agencies with fleets of more than 20 vehicles) (Baseline FY2005). Reduce by 2% annually: Potable water intensity by FY2020 (26% total reduction) (Baseline FY2007). Industrial, landscaping, and agricultural water intensity by FY2020 (20% total reduction) (Baseline FY2010). Achieve 50% or higher diversion rate: Non-hazardous solid waste by FY2015. Construction and demolition materials and debris by FY2015. Ensure at least 15% of existing buildings and leases (>5,000 gross sq ft) meet the Guiding Principles by FY2015, with continued progress towards 100%. Ensure 95% of all new contracts, including non-exempt contract modifications, require products and services that are energy-efficient, efficient, water-efficient, efficient, biobased, environmentally preferable, non-ozone ozone depleting, contain recycled-content, content, non- toxic or less-toxic alternatives.

8 EO (cont.) This EO also sets non-numerical numerical targets that agencies must reach, including: Increase renewable energy and renewable energy generation on agency property. Pursue opportunities with vendors and contractors to reduce GHG emissions (i.e., transportation options and supply chain activities). Reduce building energy intensity. Ensure all new Federal buildings that enter the planning process in 2020 and thereafter are designed to achieve zero-net-energy energy standards by Use low GHG emitting vehicles, including AFVs, and optimize the number of vehicles in agency fleets. Implement water management strategies including water-efficient efficient and low-flow fixtures. Implement source reduction to minimize waste and pollutant generation. Decrease use of chemicals directly associated with GHG emissions. Participate i t in transportation t ti planning and recognize existing infrastructure t in regions/communities. Ensure procurement preference for EPEAT-registered electronic products.

9 EO (cont.) Beyond targets, EO calls for specific management strategies to improve sustainability including: Develop and implement innovative, agency-specific policies and practices to reduce scope 3 GHG emissions in agency operations. Manage existing buildings to reduce energy, water, and materials consumption. Implement and achieve objectives in EPA's Stormwater Management Guidance. Reduce paper use and acquire paper containing at least 30% postconsumer fiber. Minimize the acquisition, use, and disposal of toxic and hazardous materials. Employ environmentally sound practices for the disposition of all agency excess or surplus electronic products. Procure Energy Star and FEMP-designated electronic equipment. Continue implementation of existing EMS programs. The full text of the required targets and strategies can be found within Executive Order Information relating to EO can be obtained through the following links below: Regulations, Guidance, and Policy Supporting Information and Tools Lessons Learned Training, Presentations, and Briefings Conferences and Events

10 The Difficulty of Going from Audit to Implementation These are Unfunded Mandates Development Cycles are Very Long The Customer Must Determine Which Contracting Vehicle is Best for Them Contracting Officers are Apprehensive and Need to Understand the Guidance and the Law Not All Programs Offer All Services Vehicle and Fleet Fuels Fuel Neutrality Ongoing Maintenance Real-Time Monitoring Smart-Meter and Smart-Grid Upgrades Behind the Customer s Meter

11 What We Have Done at SCE A Lot of Energy Efficiency Projects Preliminary Audits Investment Grade Audits Design/Bid/Build Lighting HVAC Controls Design/Build Lighting HVAC Controls Renewable Energy Projects Maintenance On-Going Maintenance Several Photovoltaic Installations Grid Connected (Parking Canopies in the Desert) Non-Grid Connected Hybrid A Large Wind Project Demand Response Staff at Federal Facilities

12 Questions Phill Consiglio (626)