For other versions of this document, see http://wikileaks.org/wiki/CRS-R40111 ------------------------------------------------------------------------------ ¢ ¢ ¢ ¢ ¢ Prepared for Members and Committees of Congress ¢ ¢ In the early 1970s, Congress began mandating reductions in energy consumed by federal agencies; primarily by improving building efficiency, and reducing fossil fuel use. Early legislation mandated a 10% reduction in federal building energy and a recent Executive Order mandates a 30% further reduction by 2015. President-elect Obama has included the goal of improving public building energy efficiency in his administration's economic recovery plan. This report reviews energy conservation legislation and Executive Orders that apply to the Department of Defense, directives and instructions to the military departments and agencies on implementing the legislation and orders, Defense spending on facility energy over the last decade, annual Defense appropriations that fund energy-conservation improvements, and Defense energy conservation investments. In FY2007, Defense spending on energy to operate its facilities reached almost $3.5 billion. In the last decade, Congress has appropriated $443 million in Defense energy conservation projects, and the value of contracts to install energy savings improvements has exceeded $2.8 billion. While the Defense Department has reduced its energy consumption, its energy spending increased due to higher energy prices. Congress continues to look at furthering energy efficiency improvements in aging Defense facilities and buildings as a means to rein in energy consumption and spending. ¢ Background ..................................................................................................................................... 1 Energy Efficiency Legislation ......................................................................................................... 1 Energy Policy Act of 2005 (P.L. 109-58) .................................................................................. 2 Energy Independence and Security Act of 2007 (P.L. 110-140) ............................................... 3 National Defense Authorization Act for FY2007 (P.L. 109-364).............................................. 4 National Defense Authorization Act for FY2009 (P.L. 110-417).............................................. 4 Executive Order 13423.................................................................................................................... 5 Defense Energy Policies.................................................................................................................. 7 Defense Energy Consumption and Spending .................................................................................. 8 Renewable Electric Energy Purchases .......................................................................................... 10 Defense Energy Efficiency Improvements.................................................................................... 10 Energy Conservation Investment Program.............................................................................. 10 Energy Savings Performance Contracts ...................................................................................11 Utility Energy Savings Contracts............................................................................................ 12 Policy Considerations and Options for Congress .......................................................................... 13 Figure 1. DOD Electricity Cost vs. Electricity Rates ...................................................................... 9 Figure 2. DOD Natural Gas Costs vs. Citygate Price...................................................................... 9 Table 1. Meeting EPACT 2005 Renewable Energy Goals Through EO13423 ............................... 6 Table 2. DOD Facility Energy Spending vs. O&M Budget ............................................................ 8 Table 3. DOD Facility Energy Consumption .................................................................................. 8 Table 4. Renewable Electricity Use vs. Total Electricity Use ....................................................... 10 Table 5. National Defense Authorizations for Energy Conservation Projects................................11 Table 6. DOD Energy Conservation Investment Program .............................................................11 Table 7. DOD ESPCs .................................................................................................................... 12 Table 8. DOD UESCs.................................................................................................................... 13 Table A-1.Legislation Introduced Since the 107th Congress Addressing DOD Facility Energy Consumption.................................................................................................................. 15 Table A-2. National Defense Authorization Acts .......................................................................... 21 ¢ ¡ Appendix. Legislation ................................................................................................................... 15 Author Contact Information .......................................................................................................... 21 Acknowledgments ......................................................................................................................... 22 ¢ The Department of Defense (DOD) accounts for approximately 63% of the energy consumed by federal facilities and buildings.1 This makes DOD the single largest energy consumer in the United States, even though consuming only 1% of national site-delivered energy.2 Its annual spending on facility energy has averaged over $3.4 billion recently. In the early 1970s, Congress began mandating reductions in energy consumed by federal agencies, primarily by improving the efficiency of buildings and facilities, and by reducing fossil fuel use. Initially, a 10% energy reduction goal was established for federal buildings as measured against a 1985 baseline.3 By fiscal year (FY) 2005, DOD reported a 28.3% reduction in energy consumption compared to the baseline. Recent legislation and Executive Orders establish further energy reduction goals. President-elect Obama's recently publicized economic recovery plans include improvements in public building energy efficiency. Recently introduced bills in Congress have called for establishing national building efficiency codes. This report reviews the energy conservation provisions in past and recent legislation applicable to DOD, Executive Orders that apply to all federal facilities4 and operations, and the Office of the Secretary of Defense (OSD) directives and instructions to the military departments and agencies. DOD spending on facility energy is annually reported to Congress as originally mandated by the National Energy Conservation Policy Act (NECPA). Data reported over the last decade have been summarized in this report. Annual defense appropriations that fund energy conservation measures along with DOD energy conservation investments are also summarized. This report does not cover the subject of transportation fuels. ¢ ¢ Federal government initiatives aimed at reducing energy consumption can be traced back to the start of the Federal Energy Management Program (FEMP) in 1973. The 1978 National Energy Conservation Policy Act (NECPA), Public Law (P.L.) 95-619, began the program of retrofitting federal buildings to improve energy efficiency. The 1985 Deficit Reduction Act (P.L. 99-272) amended NECPA by authorizing energy savings contracts of up to 25 years. The 1992 Energy Policy Act further amended NECPA by adopting Energy Savings Performance Contracts (ESPCs) that offered federal agencies a novel means of making energy efficiency improvements to aging buildings and facilities (see discussion below). NECPA required federal agencies, including DOD, to report annually on the energy consumption by their buildings, 1 Assistant Secretary, Energy Efficiency and Renewable Energy, Annual Report to Congress on Federal Government Energy Management Programs, U.S. Department of Energy, September 26, 2006, pp. Table A-3, http://www1.eere.energy.gov/femp/about/annual_report.html. 2 When measured in terms of energy delivered to the point of use or site-delivered energy consumption, the Government consumed 1.1 quads during FY2005 of the total 99.84 quads used in the United States. 3 Measured on a Btu-per-gross-square-foot (Btu/gsf) basis. 4 For the purposes of the Energy Independence and Security Act of 2007, the term `facility" means any building, installation, structure, or other property (including any applicable fixtures) owned or operated by, or constructed or manufactured and leased to, the Federal Government. ¢ operations, and vehicles.5 Overall federal energy consumption is reported annually to Congress by the Department of Energy (DOE) Federal Energy Management Program (FEMP).6 The Federal Energy Management Improvement Act of 1988 (P.L. 100-615) amended NECPA by requiring each agency to achieve a 10% reduction in energy consumption in federal buildings by FY1995 when measured against an FY1985 baseline in terms of British thermal units per gross square foot (Btu/gsf) of building area.7 More recently, two major energy bills have been enacted with provisions generally pertaining to all federal agency facilities--the Energy Policy Act of 2005 (EPACT ­ P.L. 109-58)8 and the 9 Energy Independence and Security Act of 2007 (EISA ­ P.L. 110-140). Annual DOD appropriation bills have also included energy provisions specifically pertaining to defense facilities. Legislation pertaining to the energy efficiency of federal and DOD buildings is summarized below. For bills introduced since the 107th Congress, refer to the Appendix of this report. ¢ ¢ · Section 103. Energy Use Measurement and Accountability amended Section 543 of the NECPA with the mandate for using advanced meters to reduce electricity use in federal buildings by October 1, 2012.10 · Section 109. Federal Building Performance Standards amended the Energy Conservation and Production Act11 by adopting the 2004 International Energy Conservation Code, and requiring revised energy efficiency standards and a 30% reduction in energy consumption of new federal buildings over the previous standards. · Section 203. Federal Purchase Requirement requires that the federal government offset its electric energy consumption with an increasing percentage of "renewable energy" from 3% starting in 2005 to not less than 7.5% by 2013 and each fiscal year thereafter.12 Renewable energy is defined as electrical energy generated from solar, wind, biomass, landfill gas, ocean (including tidal, wave, current, and thermal), geothermal, municipal solid waste, or new hydroelectric generation capacity achieved from increased efficiency or additions of new capacity at an existing hydroelectric project. 5 42 U.S.C.A. § 8251 Sec. 303 ­ Annual Reports to the President. 6 See U.S. Department of Energy, Efficiency and Renewable Energy, Annual Report to Congress, http://www1.eere.energy.gov/femp/about/annual_report.html. 7 42 U.S.C. § 8253 (a) (1). 8 See CRS Report RL33302, Energy Policy Act of 2005: Summary and Analysis of Enacted Provisions, by Mark Holt et al. 9 See CRS Report RL34294, Energy Independence and Security Act of 2007: A Summary of Major Provisions, by Fred Sissine. 10 See Department of Energy, Guidelines for Electric Metering in Federal Buildings, DOE/EE-0312, February 3, 2006. 11 42 U.S.C. § 6834. 12 42 U.S.C. § 15852(a). ¢ ¢ ¢ · Section 431. Energy Reduction Goals for Federal Buildings amends the National Energy Conservation Policy Act (NECPA)13 by mandating a 30% energy reduction in federal buildings by 2015 relative to a 2005 baseline. · Section 432. Management of Energy and Water Efficiency in Federal Buildings requires DOE to issue guidelines and criteria that each federal agency will follow for designating "covered facilities", assigning energy managers, and implementing comprehensive energy and water evaluations. For the purpose of energy and water evaluations, covered facilities constitute at least 75% of facility energy use at each facility. · Section 433. Federal Building Energy Efficiency Performance Standards requires 55% reduced fossil energy use in new federal buildings and major renovations by 2010 relative to a 2003 baseline, and 100% by 2030. · Section 434. Management of Federal Building Efficiency requires that federal agencies ensure the energy life-cycle cost effectiveness of major equipment replacements (such as heating and cooling systems) and renovations or expansion of existing space. · Section 435. Leasing prohibits federal agencies from leasing buildings that have not earned an EPA Energy Star label.14 · Section 436. High Performance Green Federal Buildings directs the establishment of federal high-performance green building standards for all types of federal facilities,15and the establishment of green practices that can be used throughout the life of a federal facility. · Section 514. Permanent Authorization enacts permanent authorization of Energy Savings Performance Contracts (ESPC), and restricts federal agencies from limiting the duration of ESPCs to less than 25 years or limiting the total amount of obligations. · Sec. 518. Study of Energy and Cost Savings in Nonbuilding Applications directs DOD to study the potential use of ESPCs in nonbuilding applications, which include vehicles and federally owned equipment that generate electricity or transport water. · Section 526. Procurement and Acquisition of Alternative Fuels prohibits federal agencies from procuring alternative or synthetic fuels, unless contract provisions 13 42 U.S.C. § 8253(a) (1). 14 In 1992 the US Environmental Protection Agency (EPA) introduced ENERGY STAR as a voluntary labeling program designed to identify and promote energy-efficient products to reduce greenhouse gas emissions. Computers and monitors were the first labeled products. Through 1995, EPA expanded the label to additional office equipment products and residential heating and cooling equipment. In 1996, EPA partnered with the US Department of Energy for particular product categories. The ENERGY STAR label is now on major appliances, office equipment, lighting, home electronics, and more. EPA has also extended the label to cover new homes and commercial and industrial buildings. http://www.energystar.gov/index.cfm?c=about.ab_history. 15 Consistent with the requirements of Section 305(a)(3)(D) of the Energy Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)). ¢ stipulate that life-cycle greenhouse gas emissions do not exceed equivalent conventional fuel emissions produced from conventional petroleum sources.16 £ Subtitle E (Energy Security), reorganizes 10 U.S.C 2865 to establish new energy performance goals for DOD, establish new goals for using renewable energy, and encourage energy efficiency products and renewable forms of energy in new construction. More specifically: · Section 2851. Consolidation and Enhancement of Laws to Improve Department of Defense Energy Efficiency and Conservation reorganizes 10 U.S.C. 2865 by the insertion of (new) Chapter 173--Energy Security, which requires the establishment of energy performance goals for transportation systems, support systems, utilities and infrastructure; leaves any appropriated funds equal to energy cost savings available for obligation until expended; requires development of a simplified method for contracting energy savings contract services; and authorizes energy conservation construction projects not previously authorized using appropriated funds after notification to Congress. · Section 2852. Department of Defense Goal Regarding Use of Renewable Energy to Meet Electricity Needs amends 10 U.S.C. 2911 by making it DOD's goal to produce or procure at least 25% of its electric energy consumption from renewable sources by the year 2025. · Section 2853. Congressional Notification of Cancellation Ceiling for Department of Defense Energy Savings Performance Contracts requires Congressional notice when federal agencies award an energy savings performance contract that contains a clause setting forth a cancellation ceiling in excess of $7,000,000.17 · Section 2854. Use of Energy Efficiency Products in New Construction requires that to the maximum extent practicable, energy efficient products meeting Defense Department requirements must be used in new facility construction. £ · Section 902. Director of Operational Energy Plans and Programs amends 10 U.S.C. 139 by directing the appointment of a director responsible for the oversight of energy required for training, moving, and sustaining military forces and weapons platforms for military operations. · Section 2831. Certification of Enhanced Use Leases for Energy-related Projects amends 10 U.S.C. 26679(h) by requiring certification that a lease exceeding 20 years for an energy production project is consistent with DOD performance goals. 16 The provision was included to ensure that federal agencies are not spending taxpayer dollars on new fuel sources that will exacerbate global warming--a response to proposals under consideration by the Air Force to develop coal-to- liquid fuels. Letter of March 17, 2008, from Chairman, House Committee on Oversight and Government Reform to Chairman, Senate Committee on Energy and Natural Resources. 17 Federal Acquisition regulations--Part 17 Special Contracting Methods--define "cancellation ceiling" to mean the maximum cancellation charge that the contractor can receive in the event of cancellation. ¢ · Section 2832. Annual Report on Department of Defense Installations Energy Management amends 10 U.S.C. 29259(a) by revising the subsection heading to "Annual Report Related to Installations Energy Management" and adding the reporting requirement for a description and estimate of the progress made by the military departments in meeting the certification requirements for sustainable green-building standards in construction and major renovations as required by Section 433 of EISA 2007. ¡ In signing Executive Order (EO) 13423 - Strengthening Federal Environmental, Energy and Transportation Management, President Bush revoked five earlier executive orders affecting 18 federal agencies' energy and environmental management. Section 11 of the order consolidates and strengthens the five Executive Orders and two Memorandums of Understanding (MOU) and establishes new and updated goals, practices, and reporting requirements for environmental, energy, and transportation performance and accountability.19 In some cases the new executive order puts in place replacement energy and environmental efficiency goals for previous goals with target dates that have passed. The new Executive Order also implements and supplements provisions of the EPACT dealing with energy and environmental management by federal agencies. The combination of EPACT (Title I, Part A) and EO13423 define the current energy efficiency objectives for federal agencies. EO13423 directs all federal agencies, including DOD, to improve energy efficiency and reduce greenhouse gas emissions through reduction of energy intensity (3% annually through the end of FY2015, and 30% by the end of FY2015, relative to each agency's baseline energy use in FY2003). Progress in reaching building energy efficiency goals are scored by agencies in terms of reductions in energy consumption versus gross building area (Btu/gsf). For the energy reduction goals of EPACT and EO13423, some inherently inefficient industrial types of buildings are excluded from this scoring. EO13423 (Section 2f) mandates specific energy reduction targets for new construction and renovations. Executive branch agencies are directed to meet objectives set in the Federal Leadership in High Performance and Sustainable Buildings Memorandum of Understanding ("Sustainable Buildings MOU").20 The Sustainable Buildings MOU calls for new buildings to be 30% more cost efficient than industry standards, and for buildings undergoing major renovations to be 20% more cost efficient than a pre-renovation, 2003 baseline. Federal agencies are 18 The President, "Strengthening Federal Environmental, Energy, and Transportation Management," 72 Federal Register 3919-3923, January 26, 2007. 19 Specifically, Section 11 of EO13423 revokes the following prior executive orders: EO13101 Greening the Government Through Waste Prevention, Recycling, and Federal Acquisition (September 14, 1998), EO13123 Greening the Government Through Efficient Energy Management (June 3, 1999), EO13134 Developing and Promoting Biobased Products and Bioenergy (August 12, 1999), EO13148 Greening the Government Through Leadership in Environmental Management (April 21, 2000), and EO13149 Greening the Government Through Federal Fleet and Transportation Efficiency (April 21, 2000). See "Fact Sheet, Executive Order 13423, Strengthening Federal Environmental, Energy and Transportation Management," Office of the Federal Environmental Executive at http://ofee.gov/eo/ EO_13423FactSheet.pdf accessed (Accessed November 17, 2008). 20 The Sustainable Building MOU is available at http://www.fedcenter.gov/_kd/Items/ actions.cfm?action=Show&item_id=4713&destination=ShowItem (accessed on November 17, 2008). ¢ encouraged to incorporate sustainable practices into projects underway, and are also encouraged to sell or dispose of unneeded assets.21 Executive Order 13123, now revoked, had directed improvements in building energy efficiency, promoted the use of renewable energy, and set goals for reduction of greenhouse gas (GHG) emissions associated with energy use in buildings, among other energy-related requirements. The revoked order had also served as the basis of DOD's instruction to the services on energy use. In contrast, the new Executive Order 13423 has no specific GHG reduction target. However, Section 2.a of the new Executive Order does include the goal of cutting GHG emissions by federal agencies through reductions in the energy intensity of agency operations, but does not specify a GHG reduction target. EPACT only credited electricity from renewable energy sources in meeting federal purchase requirements. EO13423 now requires that at least half of the EPACT renewable energy requirement comes from new (put in service after January 1, 1999) renewable energy sources. Agencies may also use new non-electric renewable energy sources to meet the requirement for new renewable energy. (Examples of non-electric renewable energy include thermal energy from solar ventilation pre-heat systems, solar heating and cooling systems, solar water heating, ground source heat pumps, biomass heating and cooling, thermal uses of geothermal and ocean resources.) However, these non-electric renewable energy sources cannot be used to meet the EPACT renewable electricity requirement (see Table 1).22 TCAPE gniteeM .1 elbaT 32431OE hguorhT slaoG y grenE elbaweneR 5002 stnemeriuqer esah crup l aredef gniteem ni detide rc secruos ygrene elbawene R ecruoS ygrenE 9002-7002 2102-9002 tuo-3102 50` TCAPE cirtcelE %3 %5 %5.7 32431 OE dlO cirtcelE %5.1 %5.2 %57.3 laoG muminiM weN cirtcelE %5.1 %5.2 %57.3 latoT %3 %5 %5.7 32431 OE dlO cirtcelE %3 %5 %5.7 laoG lluF weN cirtcelE-noN %5.1 %5.2 %57.3 latoT %5.4 %5.7 %52.11 .32431 redrO evitucexE dna TCAPE rof ecnadiuG tnemeriuqeR ygrenE elbaweneR PMEF/EOD .S.U :ecruoS muminim neewteB .9991 ,1 yraunaJ ot roirp ecivres otni tup esoht era secruos ygrene elbawener dlO :setoN elbawener cirtcele dna cirtcele elbawener-non wen fo noitanibmoc yna esu nac seicnega laredef ,laog lluf dna fo sesahcrup ,32431 OE dna TCAPE fo sesoprup roF .stnemeriuqer 32431OE teem ot secruos ygrene morf sCER revewoh ;sesahcrup ygrene elbawener sa emas eht detaert era )sCER( setacifitreC ygrenE elbaweneR ..tnemeriuqer 32421 OE eht ot desu eb ylno nac ygrene cirtcele-non fo secruos elbawener deifilauq 21 Office of Management and Budget, Instructions for Implementing Executive Order 13423, March 29, 2007, p. 25, http://www.whitehouse.gov/omb/memoranda/2007.html. 22 U.S. Department of Energy, Energy Efficiency and Renewable Energy, Renewable Energy Requirement Guidance for EPACT and Executive Order 13423, January 28, 2008, p. 5, http://www1.eere.energy.gov/femp/pdfs/epact05_fedrenewenergyguid.pdf. ¢ For the purpose of meeting the energy intensity reduction goals under EPACT (Btu/gsf), the credit agencies receive for renewable energy purchases started to phase out in FY2008, and will be reduced to zero by FY2011. Finally, EO13423 requires each federal agency to annually report to the President. The Office of Management and Budget (OMB) provides general reporting guidance in Circular No. A-11 (Section 55 ­ Information on Energy Use, Costs, and Efficiency). Detailed reporting guidance is provided in a recent DOE memorandum to federal agency energy coordinators.23 ¢ The Office of the Secretary of Defense (OSD) has issued directives and instructions to the military departments and agencies on implementing EO13423 and complying with energy legislation. In an October 23, 2007 Energy Awareness Campaign memorandum to the service departments and agencies, the Under Secretary of Defense underscored the energy conservation goals of EO13423 and established October as an Energy Awareness month. The memorandum effectively superseded an earlier January 2005 memorandum that referenced EO13123 - Greening the Government through Efficient Energy Management. DOD's primary guidance on installation energy management appears in DOD Instruction 4170.11.24 The instruction applies to all military departments and agencies, and pertains to all phases of administration, planning, programming, budgeting, operations, maintenance, training, and materiel acquisition activities that affect the supply, reliability and consumption of facilities energy. In reference to Instruction 4170.11, a November 18, 2005 memorandum on Installation Energy Policy Goals establishes goals of reducing greenhouse gases, reducing energy and water consumption, expanding renewable energy procurement, and reducing petroleum use. It also directs the completion of eligible utility privatization in a process established under the Deputy Secretary of Defense. Further guidance to DOD's installation and facility managers is provided in the DOD Energy Managers Handbook.25 In particular, the guidance endorses the sustainable building design approach for building and facility life-cycles, and encourages DOD components to obtain the U.S. Green Building Council's Leadership in Energy and Environment Design (LEED) certification.26 DOD responded to the EPACT Section 103 electric metering provision by revising instructions on installation energy management to require metering at all appropriate facilities in Department of Defense Metering Plan. 23 Letter from Richard Kidd, Program Manager, Federal Energy Management Program, Office of Energy Efficiency and Renewable Energy, to Federal Agency Energy Coordinators, Reporting Guidance for FY2008 Annual Report on Federal Government Energy Management, September 8, 2008, http://www1.eere.energy.gov/femp/about/ reporting_guidance.html. 24 Office of the Deputy Under Secretary of Defense / Installations and Environment, Department of Defense Installations Energy Management Program, November 22, 2005, http://www.acq.osd.mil/ie/irm/Energy/ Energy_Home/energyAbout.shtml. 25 Office of the Under Secretary of Defense, Department of Defense Energy Manager's Handbook, August 25, 2005, http://www.acq.osd.mil/ie/irm/Energy/EnergyManagerSupport/energyManagerSupport.shtml. 26 See U.S. Green Building Council, http://www.usgbc.org/. Home, http://www.acq.osd.mil/ie/energy/index.shtml. Office of the Deputy Under Secretary of Defense for Installations and Environment, Facility Energy Directorate 27 charged to commercial and industrial customers, as shown in Figure 1. average electricity costs in cents per kilowatt-hr (kWh) have stayed between the range of rates Over the current decade, both electricity rates and natural gas prices steadily increased. DOD's .toof-erauqs-ssorg-rep-utB ni fo smret ni noitpmusnoc ygrene gnidliub llarevo gnirusaem fo sesoprup rof utB ot detrevnoc dna DOD yb sruoh-ttawagem ni detroper si noitpmusnoc ygrene cirtcelE .sepyt ygrene rehto dna ,maets desahcrup ,laoc ,enaporp/GPL ,sag larutan ,lio leuf ,yticirtcele sedulcni dna ;sgnidliub tpmexe dna ,lairtsudni ,dradnats tnuocca otni sekat noitpmusnoC :setoN .lmths.xedni/ygrene/ei/lim.dso.qca.www//:ptth ,tropeR tnemeganaM ygrenE ,)tnemnorivnE dna snoitallatsnI( esnefeD fo yraterceS rednU ytupeD eht fo eciffO :ecruoS 260,812 453,322 516,432 066,732 042,242 910,442 713,152 637,352 778,052 noitpmusnoC 2.459,1 1.759,1 1.211,2 3.390,2 0.471,2 7.381,2 4.281,2 4.002,2 8.991,2 aerA .dlB 7002YF 6002YF 5002YF 4002YF 3002YF 2002YF 1002YF 0002YF 9991YF )utB noillib( noitpmusnoC .sv )teef erauqs noil lim( aerA gnidliuB noitpmusnoC ygrenE ytilicaF DOD .3 elbaT .ecnanetniam dna snoitarepo rof ytirohtua noitagilbo tegdub latot ediW-esnefeD stneserper M&O .gnidneps ygrene ytilicaF esnefeD stneserper EF :setoN ./rellortpmoc/lim.knilesnefed.www//:ptth ,smargorp )1-O( ecnanetniaM dna noitarepO dna )1-M( lennosreP yratiliM ,)rellortpmoC( esnefeD fo yraterceS rednU eht fo eciffO .lmths.xedni/ygrene/ei/lim.dso.qca.www//:ptth ,tropeR tnemeganaM ygrenE ,tnemnorivnE dna snoitallatsnI rof esnefeD fo yraterceS rednU ytupeD eht fo eciffO :ecruoS 6.000,62 1.520,12 6.912,12 8.075,61 7.618,41 1.045,31 3.202,21 4.166,11 2.083,11 M&O 7.634,3 9.694,3 4.179,2 2.218,2 9.465,2 1.416,2 2.297,2 6.304,2 9.352,2 EF 7002YF 6002YF 5002YF 4002YF 3002YF 2002YF 1002YF 0002YF 9991YF )noi llim $( tegduB M&O .sv gnidnepS ygrenE ytilicaF DOD .2 elbaT period, as has gross building area. energy consumption (express in British Thermal Units ­ Btu) has been decreasing over the same (LPG). Renewable energy represented 8.7% of facility electricity use. As shown in the Table 3, natural gas at 33%, fuel oil at 11%. The balance was made up of coal and liquefied petroleum gas (In FY2001, it ran as high as 23%.) Electricity represented 45% of energy consumed, followed by roughly 13% of Defense-wide operations and maintenance (O&M) budget obligation authority. FY2007 DOD spent over $3.4 billion on energy consumed by its facilities as shown in Table 2; DOD reportedly occupies over 545,000 facilities on 536 military installations worldwide.27 In ¢ ¢ .esu fo noitacol s'remotsuc laudividni hcae ot ti reviled dna ,etagytic eht ta sag larutan eht fo pihsrenwo ekat sCDL ,yllacipyT .tsoc s'ynapmoc noitubirtsid lacol eht stneserper ecirp etagytiC :setoN .lmths.xedni/ygrene/ei/lim.dso.qca.www//:ptth ,tropeR tnemeganaM ygrenE ,)tnemnorivnE dna snoitallatsnI( esnefeD fo yraterceS rednU ytupeD eht fo eciffO dna ;lmth.7060btp/txt/rea/ueme/vog.eod.aie.www//:ptth 7002-9491 ,secirP stropmI dna ,etaG ytiC ,daehlleW saG larutaN 7.6 elbaT AIE/EOD S.U :ecruoS 20 20 20 20 20 20 20 20 19 0 0 0 0 0 0 0 0 9 7 6 5 4 3 2 1 0 9 0.00 2.00 4.00 Citygate Price 6.00 DOD Cost 8.00 $ / Thou Cu Ft 10.00 12.00 teeF c ibuC dnasuohT reP $ ecirP etagytiC .sv stsoC saG larutaN DOD .2 erugiF falling citygate price is not explained in any DOD reporting. transmission pipeline for distribution to it customers. The spike in DOD's cost relative to the (LDC) citygate (Figure 2). The citygate is the point at which the LDC takes gas from the DOD natural gas costs have generally tracked the price of gas at the local distribution company .evisnetni ygrene ylralucitrap era taht serutcurts era seitilicaf tpmexE .sepyt ytilicaf lairtsudni dna dradnats denibmoc TCAPE rednu gnitropeR .sepyt gnidliub tpmexe dna ,lairtsudni ,dradnats :seirogetac eerht rednu detroper saw noitpmusnoc ygrene ,TCAPE ot suoiverP :setoN .lmths.xedni/ygrene/ei/lim.dso.qca.www//:ptth ,tropeR tnemeganaM ygrenE ,)tnemnorivnE dna snoitallatsnI( esnefeD fo yraterceS rednU ytupeD eht fo eciffO dna ;lmth.0180btp/txt/rea /ueme/vog.eod.aie.www//:ptth 7002-0691 ,yticirtcelE fo secirP liateR egarevA 01.8 elbaT AIE/EOD S.U :ecruoS 20 20 20 20 20 20 20 20 19 07 06 05 04 03 02 01 00 99 0 1 2 Industrial 3 4 DOD average 5 Commerical 6 7 Cents / kWh 8 9 setaR yticirtcelE .sv tsoC yticirtcelE DOD .1 erugiF ¢ ¢ ¢ Reporting requirements for renewable energy have changed over the last decade due to new legislated mandates and Executive Orders. EPACT Section 203 requires federal agencies to replace electricity consumption with increasing amounts of renewable energy. Federal agencies must also meet the new renewable energy requirements of EO13423. In 1999, DOD had not yet begun reporting on renewable energy. A limited capacity of photovoltaic (solar) panels had been installed, but operating statistics under the category of self-generated power had not been compiled until FY2001. As shown in Table 4, DOD began reporting grid-purchased renewable energy in FY2000. For FY2007, DOD reported using over 1.6 million MWH of renewable electricity, which represented 5.5% of overall electricity consumption. The renewable energy goal by 2025 is 25% of total electricity use. esU yticirtcelE lato .sv esU yticirtcelE elbaweneR .4 elba T T )sruoh-tta wageM( 0002YF 1002YF 2002YF 3002YF 4002YF 5002YF 6002YF 7002YF elbaweneR 670,461 279,252 295,123 000,134 322,405 151,524,1 282,832,1 429,936,1 .celE latoT 813,242,03 495,369,92 958,253,03 354,747,92 751,666,03 296,495,92 935,297,92 301,656,92 % 5.0 8.0 0.1 4.1 6.1 8.4 1.4 5.5 tnemeganaM ygrenE ,)tnemnorivnE dna snoitallatsnI( esnefeD fo yraterceS rednU ytupeD eht fo eciffO :ecruoS .lmths.xedni/ygrene/ei/lim.dso.qca.www//:ptth ,tropeR latoT .yticirtcele detareneg-fles dna stiderc yticirtcele elbawener desahcrup sedulcni elbaweneR :setoN .sgnidliub tpmexe dna ,lairtsudni ,dradnats sedulcni yticirtcele ¢ ¢ Despite reductions in energy consumption, annual energy spending increased up through FY2006 and would likely have been higher without investment in energy efficiency improvements. DOD programs improvements through the Defense Energy Conservation Investment Program (ECIP), and takes advantage of ESPCs, and Utility Energy Savings Contracts (UESCs). Improvements are funded directly through the Defense Military Construction (MILCON) program, and indirectly through Operation and Maintenance (O&M) appropriations. ¢ Between 1999 and 2009, Congress appropriated $442.9 million in Defense Energy Conservation Projects (summarized in Table 5). These projects are accomplished through the DOD Energy Conservation Investment Program (ECIP), which designates projects that specifically save or reduce Defense energy costs, and are funded under MILCON. ¢ 5 elbaT stcejorP noitavresnoC ygrenE rof snoitazirohtuA esnefeD lanoitaN . )noillim $( 9002YF -0002YF 0002YF 1002YF 2002YF 3002YF 4002YF 5002YF 6002YF 7002YF 8002YF 9002YF 56-601 .L.P -901 .L.P -801 .L.P -801 .L.P -701 .L.P -701 .L.P -601 .L.P -901 .L.P -011 .L.P -011 .L.P 361 573 631 413 701 893 463 181 714 3.1 0.05 0.05 0.05 5.43 1.72 0.51 0.55 0.07 0.09 .troper siht ot xidneppA eht fo 2-A elbaT ni dedivorp era seltit llib ehT :etoN According to the Office of the Secretary of Defense: "OSD centrally controls ECIP funding allocation on a by-project basis. In FY 1999 ECIP funds were allocated to those projects with the highest savings to investment ratio (SIR) and the best payback periods, regardless of component. In FY 2001, the Department revised this process to allocate funds based on the components' percentage of total DOD installations BTU consumption. Within the allocated amount, the Component prioritizes their projects based on a combination of SIR and the priorities emphasized by the Energy Policy Act of 2005, Executive Order (EO) 13423, and the Energy Independence and Security Act of 2007. The Department emphasizes the use of ECIP in reducing energy consumption and greenhouse gas emissions, and increasing the use of renewable energy." 28 Between 2001 and 2007, DOD in turn allocated $260.3 million for 193 ECIP projects (summarized in Table 6). margorP tnemtsevnI noitavresnoC ygrenE DOD .6 elbaT )n oill im $( g nidnepS .sv stcejorP 1002YF 2002YF 3002YF 4002YF 5002YF 6002YF 7002YF # stcejorP 81 22 23 63 24 34 64 $ gnidnepS 9.41 7.02 5.42 3.74 7.84 6.94 6.45 /ei/lim.dso.qca.www//:ptth ,)ygrenE & snoitallatsnI( esnefeD fo yraterceS rednU ytupeD eht fo eciffO :ecruoS .lmths.pice/pice/ygrene .detroper ton erew 0002 dna 9991 rof snoitacollA :setoN ¢ ESPCs complement DOD's Energy Conservation Investment Program and Defense Energy Conservation appropriations by providing additional energy efficiency improvements. Qualified Energy Service Companies (ESCOs) finance the improvements through the savings realized by the facility, typically over a life-cycle of 10 to 25 years.29 These contracts include infrastructure 28 OSD Installations and Environment, Energy Conservation Investment Program {http://www.acq.osd.mil/ie/irm/Energy/ecip/ecip.shtml} 29 The Federal Energy Management Program (FEMP) established the U. S. Department of Energy Qualified List of Energy Service Companies (DOE Qualified List) in accordance with the Energy Policy Act of 1992 and 10 CFR 436. The DOE Qualified List (PDF 270 KB) comprises private industry firms that have submitted an application and been qualified by the Qualification Review Board. This board consists of representatives from the Federal Interagency Energy Management Task Force and DOE staff. http://www1.eere.energy.gov/femp/financing/superespcs_qualifiedescos.html ¢ improvements and new equipment to help reduce energy consumption. Examples include new thermal storage systems, chillers, boilers, lights, motors, energy monitoring and control systems, and water saving devices. In return for providing the financing, the ESPC contractor receives a specified share of any resulting energy cost savings. Between 1999 and 2007, DOD awarded 248 ESPCs for a value exceeding $2.8 billion (summarized in Table 7). ESPCs are funded through O&M appropriations. The Congressional Budget Office's (CBO) view of ESPCs found that they imposed a future financial obligation on the federal government. CBO began scoring ESPCs as mandatory spending, coinciding with the expiration of the 1990 Budget Enforcement Act (P.L. 101-508) pay-as-you-go (PAYGO) rules. The CBO scoring reflects how ESPCs create future commitments to appropriations, consistent with how appropriations-funded ECIPs would be scored throughout the budget.30 The Government Accountability Office (GAO) finds that the benefits of ESPCs could be achieved using upfront funds (that is, fully funded in advance) and with lower financing costs, but agencies generally do not receive sufficient funds upfront for doing so and see ESPCs as a necessary supplement to upfront funding in order to achieve the energy savings benefits.31 sCPSE DOD .7 elbaT )noil lim $( eul aV tcartn oC . sv )#( srebmuN tcartnoC 9991YF 0002YF 1002YF 2002YF 3002YF 4002YF 5002YF 6002YF 7002YF # CPSE 54 85 03 23 43 5 51 91 01 $ eulaV 9.01 6.414 4.813 6.695 9.945 2.61 0.141 5.685 4.071 tnemeganaM ygrenE ,ygrenE & snoitallatsnI rof esnefeD fo yraterceS rednU ytupeD eht fo eciffO :ecruoS .lmths.niam/troper_tmgmygrene/ygrene/ei/lim.dso.qca.www//:ptth ,egap tropeR na timbus ot deriuqer era seicnegA laredeF .despal yliraropmet dah ytirohtua CPSE ,4002YF gniruD :setoN dednema sa APCEN rednu margorP tnemeganaM ygrenE laredeF s'EOD ot yllaunna tropeR tnemeganaM ygrenE evitucexE dna TCAPE ot eud 4002 ecnis semit lareves degnahc sah tnetnoc dna tamrof ehT .2991 TCAPE yb ot yltcerid troper eht sedivorp osla DOD .7002 ASIE ot eud 8002YF rof niaga egnahc ylekil lliw tI .32431 redrO .seettimmoc esnefed lanoissergnoc eht ¢ ¢ DOD Utility Energy Savings Contracts (UESC) are financed and implemented through utility companies, similar in some respects to ESPCs. Essentially, the same energy efficiency improvements can be accomplished through UESCs as ESPCs. With a UESC, the utility typically finances the capital costs of the project, and is repaid over the contract term from the cost savings generated by the energy efficiency measures.32 The installation or facility pays for the improvement through O&M appropriated funds. There are no statutory energy savings guarantees for UESCs, unlike ESPCs. Although a facility manager may request such a guarantee at the time of a project's installation. Between 1999 and 2006, DOD reported placing 241 UESCs worth $967.6 million (summarized in Table 8). 30 For further information, see CRS Report RL32543, Energy Savings Performance Contracts: Reauthorization Issues. 31 U.S. Government Accountability Office, Energy Savings - Performance Contracts Offer Benefits, but Vigilance Is Needed to Protect Government Interests, GAO-05-340, June 2005, http://www.gao.gov/new.items/d05340.pdf. 32 U.S. Department of Energy Federal Energy Management Program, Financing Mechanisms, Utility Energy Savings Contracts ¢ sCSEU DOD .8 elbaT )noil lim $( eul aV tcartn oC . sv )#( srebmuN tcartnoC 9991YF 0002YF 1002YF 2002YF 3002YF 4002YF 5002YF 6002YF 7002YF # CSEU 0 14 44 14 13 02 22 71 52 $ eulaV 9.0 7.841 9.041 2.321 1.251 9.68 5.38 5.79 9.331 tnemeganaM ygrenE ,ygrenE & snoitallatsnI rof esnefeD fo yraterceS rednU ytupeD eht fo eciffO :ecruoS .lmths.niam/troper_tmgmygrene/ygrene/ei/lim.dso.qca.www//:ptth ,egap tropeR ¢ DOD spending on energy consumed by its facilities worldwide can make up as much as 23% of its annual Operating and Maintenance budget. More than $3.4 billion was spent annually in FY2006 and FY2007. DOD has steadily decreased its buildings' energy-intensity in response to mandated energy reduction goals through investment in energy conservation projects. Over the last decade, Congress has appropriated $443 million in DOD energy conservation projects, DOD investment in energy conservation adds another $250 million, and the value of Energy Savings Performance Contracts (ESPCs) exceeds $2.8 billion. Despite the investments, DOD annual energy spending has been increasing since 1999, as have electricity and particularly natural gas prices. Further investment in energy conservation is expected to meet the future mandated energy reduction goals. ESPCs have become a preferred means of making energy efficiency improvements because, in part, funds do not have to be directly appropriated (or programmed). However, as Energy Savings Contractors (ESCOs) assume a certain risk in guaranteeing savings through ESPCs, the risk is factored into their cost. Also, ESPC commitments may extend up to 25 years--an indication of the time needed to recoup the ESCO's investment. As energy efficiency improvements made through UESCs do not necessarily come with savings guarantees and thus risk, the lower cost may translate into higher savings. Federal agencies may not be taking full advantage of this savings opportunity. This may be due to individual utilities limited role promoting UESCs, installation managers' unfamiliarity with UESCs, and ESCOs influence in promoting ESPCs. Aging buildings may have limits in meeting energy efficiency goals, and investment in energy conservation may eventually see diminishing returns in energy savings. Overall goals may be achieved, ultimately, through the replacement of older building with new buildings built to LEED standards and even newer "high-performance" building standards being developed the American Society of Heating, Refrigerating and Air Conditioning Engineers (ASHRAE).33 Whether future investments in energy conservation projects and ESPC commitments should give way to replacing older inefficient building with new construction is an issue that Congress may eventually wish to consider. As an alternative, Congress may wish to consider expanding the EISA Section 518 EPSC provision (non-building applications), to study renovating energy- inefficient buildings to LEED and high-performance standards. 33 The ASHRAE initiative, known as the Standard for the Design of High-Performance Green Buildings Except Low- Rise Residential Buildings, or Standard 189, is being developed with the U.S. Green Building Council (USGBC) and the Illuminating Engineering Society of North America (IESNA), and could ultimately become a prerequisite under the LEED rating system. http://archrecord.construction.com/news/daily/archives/080131standards.asp. ¢ Finally, though DOD's average utility energy costs fall in the range of national energy prices, Congress may wish to consider how DOD's energy costs (not just consumption) could be reduced further. As the single largest national energy consumer, DOD might leverage its buying power in negotiating lower utility rates. setanimreT .noitamrofni lautcartnoc detaler dna seitivitca tcejorp tolip no seettimmoc lanoissergnoc etairporppa eht ot yvaN eht fo yraterceS eht morf troper a seriuqeR .stnuocca noitcurtsnoc yratilim ni stcejorp gnisuoh deinapmoccanu yratilim fo noitcurtsnoc rof detairporppa stnuoma morf ,seettimmoc lanoissergnoc etairporppa eht fo noitacifiton roirp syad 09 ot tcejbus ,dnuF hcus ot refsnart a sezirohtuA .stcejorp tolip eht rednu seitivitca tuo yrrac ot dnuF tnemevorpmI gnisuoH esnefeD fo tnemtrapeD eht sezilitU .stinu hcus ot dengissa srebmem rof gnisuoh rof ecnawolla cisab laitrap fo setar rehgih tes ot esnefeD fo yraterceS eht sezirohtuA .gnisuoh hcus ot secrof demra eht fo srebmem ngissa )2( dna ;noissessop ro yrotirret .S.U yna gnidulcni ,setatS detinU eht ni gnisuoh deinapmoccanu yratilim fo noitcurtsnoc ro noitisiuqca eht rof rotces etavirp eht esu ot stcejorp tolip eerht ot pu tuo yrrac )1( :ot yvaN eht fo yraterceS eht sezirohtuA )3082 .ceS(" ............... - segnahC gnisuoH ylimaF yratiliM dna margorP noitcurtsnoC yratiliM :A eltitbuS - snoisivorP lareneG :IIIVXX eltiT" ............. ".stcejorp noitavresnoc ygrene niatrec tuo yrrac ot yraterceS eht sezirohtuA .snoitacol dna snoitallatsni deificeps ta stnuoma deificeps ni stcejorp noitcurtsnoc yratilim tuo yrrac dna ytreporp laer eriuqca ot yraterceS eht sezirohtuA )1042 .ceS( - seicnegA esnefeD :VIXX eltiT" ............... ".margorp eht rof sdnuf E&TDR deificeps skramraE .yrtsudni dna ,seicnega laredeF etairporppa ,ygrenE fo yraterceS eht htiw noitarepooc ni margorp tnempoleved ygolonhcet llec leuf elcihev a tuo yrrac ot yraterceS eht stceriD )542 .ceS(" gnisuoh yratiliM ]llib ecnerefnoc fo yrammus morf[ .seicnega esnefed yb stcejorp noitavresnoc ygrenE 413-701 :oN waL cilbuP emaceB 2002/2/21 tnempoleved ygolonhcet llec leuf elciheV 3002 raeY lacsiF rof tcA noitazirohtuA esnefeD lanoitaN pmutS boB pmutS .peR 6454 .R.H ht701 aerA tcejbuS eltiT lliB rosnopS # lliB ssergnoC ht Table A-1.Legislation Introduced Since the 107 Congress Addressing DOD Facility Energy Consumption ¡ sezirohtuA .stcejorp noitavresnoc ygrene niatrec tuo yrrac ot yraterceS eht sezirohtuA .snoitacol dna snoitallatsni deificeps ta stnuoma deificeps ni stcejorp noitcurtsnoc yratilim tuo yrrac dna ytreporp laer eriuqca ot esnefeD fo yraterceS eht sezirohtuA - seicnegA esnefeD :VIXX eltiT" .evitaitinI seitilicaF tneiciffE toliP .1002/82/21 no 701-701 .L.P emaceb hcihw ,8341 .S ees ,noitca rehtruf roF .seicnega esnefed yb stcejorp noitavresnoc ygrenE .2002 raeY lacsiF rof tcA noitazirohtuA noitcurtsnoC yratiliM niveL .neS 8141 .S 701 ht " .sleuf evitanretla fo esu eht rof sretemarap gnitarepo )2( dna ;teelf elcihev laredeF eht rof senilediug ymonoce leuf egareva muminim )1( :ebircserp ot 2991 fo tcA yciloP ygrenE eht sdnemA .stcejorp ecnamrofrep sgnivas ygrene tnemelpmi ot seicnega laredeF ot snaol ekam ot knaB ygrenE laredeF eht sehsilbatsE .ecnanetniam dna noitarepo fo stsoc decuder niatrec morf gnitluser sgnivas tnuocca otni ekat yam tcartnoc ecnamrofrep sgnivas ygrene na rednu ycnega laredeF a yb stnemyap launna etagergga eht taht seralceD .sgnidliub lanoissergnoc ni serusaem sgnivas retaw dna ygrene tnemelpmi dna poleved ot lotipaC eht fo tcetihcrA eht stcurtsnI .stcudorp tneiciffe ygrene deificeps erucorp )3( dna ;esu ygrene sti retembus ro retem )2( ;segatnecrep raey radnelac debircserp gniwollof detnemelpmi si noitcuder ygrene deificeps taht os seitilicaf laredeF sti ot serusaem noitavresnoc ygrene ylppa )1( :ycnega hcae taht etadnam ot tcA yciloP noitavresnoC ygrenE lanoitaN eht sdnemA .ytivitcudorP ygrenE laredeF fo eciffO eht EOD nihtiw hsilbatse ot )EOD( tcA noitazinagrO ygrenE fo tnemtrapeD eht sdnemA .senilediug debircserp gniwollof sdradnats ecnamrofrep ycneiciffe ygrene gnidliub laredeF desiver etaglumorp ot ygrenE fo yraterceS eht stcurtsnI .edoC laitnediseR lanoitanretnI eht fo esoht deecxe ro teem taht snoitacificeps niatnoc llahs sdradnats ycneiciffe ygrene gnidliub laredeF taht edivorp ot tcA noitcudorP dna noitavresnoC ygrenE eht sdnemA" .sdradnats ycneiciffe ygrene sgnidliub laredeF .1002 fo tcA tnemeganaM ygrenE ytilicaF laredeF hyaB .neS 8531 .S 701 ht ".)sraey owt ot pu rof elbaliava ,yltnerruc( dednepxe litnu elbaliava niamer ot snoitallatsni yratilim ta dezilaer sgnivas ygrene fo sdriht-owt ot pu swollA )5082 .ceS(" ................. ".7002 YF fo dne eht ta ytirohtua tcejorp tolip aerA tcejbuS eltiT lliB rosnopS # lliB ssergnoC laer eriuqca ot yraterceS eht sezirohtuA - seicnegA esnefeD :VIXX eltiT" ................ ".margorp eht rof sdnuf E&TDR deificeps skramraE .yrtsudni dna ,seicnega laredeF etairporppa fo sdaeh eht ,ygrenE fo yraterceS eht htiw noitarepooc ni margorp tnempoleved ygolonhcet llec leuf elcihev a tuo yrrac ot yraterceS eht stceriD )442 .ceS(" ................... ].L.P lanif ni ton ,llib dessap etaneS dednema ni dedulcnI ".margorp esu ygrene elbawener fo noitartsnomed eht rof sdnuf E&TDR yvaN deificeps skramraE )812 .ceS("[ gnisuoh yratiliM .2002/2/21 .seicnega no 413-701 waL cilbuP emaceb hcihw ,6454 .R.H ees ,noitca rehtruf roF esnefed yb stcejorp noitavresnoc ygrenE .etaneS dessap sa ,6454 .R.H ni 4152 .S detutitsbus etaneS eht ,2002/72/6 nO .ylevitcepser seettimmoC secivreS demrA etaneS dna esuoH tnempoleved ygolonhcet llec leuf elciheV eht morf sllib noitazirohtua esnefed erew 4152 .S dna 6454 .R.H :etoN noitartsnomed ygrene elbaweneR .3002 raeY lacsiF rof tcA noitazirohtuA esnefeD lanoitaN pmutS boB niveL .neS 4152 .S 701 ht ".ssergnoC ot troper a seriuqeR .tcA siht fo tnemtcane eht retfa sraey ruof evitaitinI eht tuo yrrac ot ytirohtua s'yraterceS eht setanimreT .snoitallatsni gnitapicitrap ta secivres troppus edivorp dna stessa latipac eganam ot dnuF tcejorP ycneiciffE noitallatsnI eht yrusaerT eht ni sehsilbatsE .noitallatsni hcae rof nalp tnemeganam a seriuqeR .)nesohc snoitallatsni eht fo seettimmoc esnefed eht ot noitacifiton gniriuqer( etapicitrap ot tnemtraped yratilim hcae fo snoitallatsni owt ot pu etangised ot yraterceS eht sezirohtuA .snoitallatsni yratilim fo noitarepo eht fo ssenevitceffe dna ycneiciffe eht gnisaercni rof laitnetop eht enimreted ot ,evitaitinI seitilicaF tneiciffE toliP eht sa nwonk eb ot ,margorp tolip a tuo yrrac ot yraterceS eht sezirohtuA )2182 .ceS(" ".ytreporp hcus revo noitcidsiruj dah taht tnemtraped yratilim eht yb noitarotser latnemnorivne ro riaper dna ecnanetniam ytilicaf rof elbaliava noitallatsni yratilim desolc a morf ytreporp DOD fo selas fo sdeecorp eht ekam ot 9491 fo tcA secivreS evitartsinimdA dna ytreporP laredeF eht sdnemA - noitartsinimdA seitilicaF dna ytreporP laeR :B eltitbuS" ......................... ".eltit siht yb dezirohtua stcejorp noitcurtsnoc fo tsoc latot eht stimiL .DOD fo snoitcnuf gnisuoh ylimaf yratilim dna ,noitisiuqca dnal ,noitcurtsnoc yratilim 1002 retfa sraey lacsif rof )DOD( esnefeD fo tnemtrapeD eht ot snoitairporppa aerA tcejbuS eltiT lliB rosnopS # lliB ssergnoC pu otni retne ot margorp tolip a tnemelpmi )3( dna ;stnemeriuqer ecivres tbed eht deecxe sgnivas deetnaraug sa gnol os serusaem noitavresnoc ygrene ecnanif ot tcartnoc eht rednu snoitagilbo rucni )2( ;stifeneb yrallicna dna sgnivas ygrene eveihca ot redro ni tcartnoc ecnamrofrep sgnivas ygrene na otni retne )1( :ot esnefeD fo yraterceS eht sezirohtuA" stcartnoC ecnamrofreP sgnivaS ygrenE .4002 fo tcA sgnivaS ygrenE esnefeD lanoitaN snilloC .neS 8132 .S 801 ht .snoitacilppa gnidliubnon ni stcartnoc ecnamrofrep sgnivas ygrene net ot pu otni retne ot margorp tolip a tnemelpmi ot yraterceS eht sezirohtuA .stnemeriuqer deificeps teem taht sdohtem dna serudecorp noitatnemelpmi gnihsilbatse selur lanif eussi ot yraterceS eht stceriD .stnemeriuqer ecivres tbed eht deecxe sgnivas deetnaraug sa gnol os serusaem noitavresnoc ygrene ecnanif ot tcartnoc eht rednu snoitagilbo rucni )2( dna ;stifeneb dna sgnivas ygrene yrallicna gniveihca fo esoprup elos eht rof )sraey 52 ot pu fo doirep a rof( tcartnoc ecnamrofrep sgnivas ygrene na otni retne )1( :ot esnefeD fo yraterceS eht sezirohtuA" stcartnoC ecnamrofreP sgnivaS ygrenE .3002 fo tcA sgnivaS ygrenE esnefeD lanoitaN nosliW .peR 9333 .R.H 801 ht ".margorp eht rof sdnuf E&TDR deificeps skramraE .yrtsudni dna ,seicnega laredeF etairporppa fo sdaeh eht ,ygrenE fo yraterceS eht htiw noitarepooc ni margorp tnempoleved ygolonhcet llec leuf elcihev a tuo yrrac ot yraterceS eht stceriD )442 .ceS(" ................. ].L.P lanif ni ton ,llib dessap etaneS dednema ni dedulcnI ".margorp esu ygrene elbawener fo noitartsnomed eht rof sdnuf E&TDR yvaN deificeps skramraE )812 .ceS("[ ".2002/2/21 no 413-701 .L.P emaceb hcihw ,6454 .R.H ees ,noitca rehtruf roF .)noitazirohtua esnefeD fo tnemtrapeD( A noisiviD 4152 .S ot dednopserroc 5152 .S :etoN" .3002 raeY lacsiF rof tcA noitazirohtuA esnefeD fo tnemtrapeD pmutS boB niveL .neS 5152 .S 701 ht ".eltit siht yb dezirohtua stcejorp noitcurtsnoc fo tsoc latot eht stimiL .DOD fo snoitcnuf gnisuoh ylimaf yratilim dna ,noitisiuqca dnal ,noitcurtsnoc yratilim rof 2002 retfa sraey lacsif rof DOD ot snoitairporppa sezirohtuA .stcejorp noitavresnoc ygrene niatrec tuo yrrac ot yraterceS eht sezirohtuA .snoitacol dna snoitallatsni deificeps ta stnuoma deificeps ni stcejorp noitcurtsnoc yratilim tuo yrrac dna ytreporp aerA tcejbuS eltiT lliB rosnopS # lliB ssergnoC smargorp ecruoser ycneiciffe ygrene tnemelpmi ot seitirohtua yrotaluger etats eriuqer )2( dna ;dradnats oiloftrop elbawener laredef a htrof tes )1( :ot 8791 fo tcA seiciloP yrotalugeR ytilitU cilbuP eht sdnemA" ............. ".ygrene elbawener fo stnuoma deificeps emusnoc tnemnrevog laredef eht taht eriuqer )2( dna ;sreilppus dna srerutcafunam elibomotua tneiciffe-leuf rof seetnaraug naol edivorp )1( :ot 5002 fo tcA yciloP ygrenE eht sdnemA" .stcartnoc ecnamrofrep sgnivas ygrenE .............. .leuf noitatropsnart dna yticirtcele - tnemeriuqer noitpmusnoc ".noitpmusnoc ygrene elbawener tnemnrevog laredeF muelortep decuder eveihca ot stnemeriuqer noitavresnoc teelf laredef htrof tes ot tcA noitavresnoC dna yciloP ygrenE eht sdnemA" .noitpmusnoc muelortep decuder teelf laredeF .6002 fo tcA ytiruceS ygrenE decnahnE namagniB .neS 7472 .S 901 ht ".noitpmusnoc muelortep teelf sti ni noitcuder %03 a tsael ta eveihca ycnega laredef hcae 6102YF yb taht gniriuqer snoitaluger eussi ot ygrenE fo yraterceS eht stceriD" .noitpmusnoc muelortep decuder teelf laredeF .tcA ytiruceS naciremA rof seciohC leuF dna elciheV hyaB .neS 5202 .S 901 ht ".selibomotua ycnega evitucexe rof sdradnats yfidom ot wal noitatropsnart laredef sdnemA" ".selcihev laredef ytud thgil yb esu leuf evitanretla gninrevog stnemeriuqer ecnailpmoc yfidom ot 2991 fo tcA yciloP ygrenE eht dna ACPE sdnemA" ".gnithgil ratS ygrenE gnidulcni ,secnailppa detangised PMEF dna secnailppa ratS ygrenE htiw deppiuqe dna deifilauq ratS ygrenE eb ot esnefeD .selcihev fo tnemtrapeD eht fo evitaitini noitazitavirp gnisuoh yratilim eht rednu laredef ytud thgil yb esu leuf evitanretlA detcurtsnoc gnisuoh lla eriuqer )2( dna ;edoC noitavresnoC ygrenE lanoitanretnI 4002 eht ot sdradnats ecnamrofrep gnidliub laredef tcejbus .detar ratS ygrenE gnisuoh yratiliM )1( :ot )APCE( tcA noitcudorP dna noitavresnoC ygrenE eht sdnemA" .sdradnats ycneiciffe ygrene sgnidliub laredeF .5002 fo tcA enotsrenroC ycneiciffE ygrenE pmaW .peR 3623 .R.H 901 ht ".snoitidnoc dna smret tcartnoc gnidulcni ,senilediug noitatnemelpmi htrof steS .snoitacilppa gnidliubnon ni ,stifeneb latnedicni dna ,sgnivas yradnoces ,sgnivas ygrene gniveihca fo esoprup eht rof stcartnoc ecnamrofrep sgnivas ygrene net ot aerA tcejbuS eltiT lliB rosnopS # lliB ssergnoC .)decudortni sa( yrammuS lliB SIL morF :setoN .tsilaicepS hcraeseR noitamrofnI SRC ,revolG loraC yb delipmoC :ecruoS ".sloohcs cilbup dna sgnidliub laredef ni ycneiciffe ygrene gninrevog stnemeriuqer sebircserP" ............ sdradnats ycneiciffe ygrene sgnidliub laredeF ".htob ro ,leuf diuqil-ot-sag ,leuf diuqil-ot-laoc eb ot raey radnelac a ni esnefeD fo tnemtrapeD eht yb dezilitu leuf fo tnuoma latot eht seriuqeR" .tnemeriuqer leuf diuqil-ot-sag ro diuqil-ot-laoC .7002 fo tcA ygrenE eruceS dna tneiciffE ,elbaileR ,naelC legaH .neS 2061 .S ht 011 .0202 retfa %05 dna ,0102 retfa desaeler dradnats ro edoc ledom hcae fo snoitide ni %03 yb sedoC gnidliuB ledoM lanoitan etadpU .sedoc ycneiciffe ygrene gnidliuB etatS sedoc gnidliub ni ycneiciffe ygrene retaerg egaruocne oT llegniD .peR 9276 .R.H ht 011 ".margorp ezirp elcihev cirtcele dirbyh ni-gulp a tuo yrrac )3( dna ;lio naht rehto secruos morf devired sleuf yb deilppus eb ot dnamed leuf dnuorg s'noitan eht fo egatnecrep detaudarg deificeps a rof gnillac nalp noitca na ssergnoC ot timbus )2( ;)selcihev dirbyh ni-gulp leuf elbixelf ro dirbyh .selcihev dirbyh ni-gulp ro dirbyh leuf elbixelf eb selcihev leuf evitanretla eb ot deriuqer selcihev laredef fo - leuf elbixelf rof tnemeriuqer teelf laredeF %03 tsael ta taht gnidulcni( noitpmusnoc muelortep 'steelf laredef eht ni noitcuder %02 a tsael ta eriuqer )1( :ot ygrenE fo yraterceS eht stceriD" .noitpmusnoc muelortep decuder teelf laredeF .tcA ygrenE dna selciheV ni noitavonnI hguorht noitcudeR ecnednepeD legnE .peR 076 .R.H ht 011 ".tcartnoc hcus tnemelpmi ot yrassecen gnicnanif eht edivorp )2( dna ;serusaem noitavresnoc dna secivres ygrene rof tcartnoc etarapes a otni retne )1( :ot ycnega laredef a ezirohtua ot tcA yciloP noitavresnoC ygrenE lanoitaN eht sdnemA" ".seitilitu sag dna seitilitu cirtcele edulcni taht aerA tcejbuS eltiT lliB rosnopS # lliB ssergnoC aandrews@crs.loc.gov, 7-6843 Policy Specialist in Energy and Energy Infrastructure Anthony Andrews .000,000,55$ fo tnuoma eht ni ,edoC setatS detinU ,01 eltit fo 5682 noitces rednu stcejorp noitavresnoc ygrene tuo yrrac yam esnefeD fo yraterceS eht ,)6()a(5042 noitces ni snoitairporppa fo noitazirohtua eht ot tnausrup detairporppa stnuoma gnisU stcejorP noitavresnoC ygrenE 3042 .ceS .7002YF rof tcA noitazirohtuA esnefeD lanoitaN renraW nhoJ 463-901 .L.P .000,000,05$ fo tnuoma eht ni ,edoC setatS detinU ,01 eltit fo 5682 noitces rednu stcejorp noitavresnoc ygrene tuo yrrac yam esnefeD fo yraterceS eht ,)5()a(3042 noitces ni snoitairporppa fo noitazirohtua eht ot tnausrup detairporppa stnuoma gnisU stcejorP noitavresnoC ygrenE 2042 .ceS .6002YF rof tcA noitazirohtuA esnefeD lanoitaN 361-901 .L.P .000,000,05$ fo tnuoma eht ni ,edoC setatS detinU ,01 eltit fo 5682 noitces rednu stcejorp noitavresnoc ygrene tuo yrrac yam esnefeD fo yraterceS eht ,)7()a(4042 noitces ni snoitairporppa fo noitazirohtua eht ot tnausrup detairporppa stnuoma gnisU stcejorP noitavresnoC ygrenE 3042 .ceS .5002YF rof tcA noitazirohtuA esnefeD lanoitaN nagaeR .W dlanoR 573-801 .L.P .000,000,05$ fo tnuoma eht ni ,edoC setatS detinU ,01 eltit fo 5682 noitces rednu stcejorp noitavresnoc ygrene tuo yrrac yam esnefeD fo yraterceS eht ,)6()a(5042 noitces ni snoitairporppa fo noitazirohtua eht ot tnausrup detairporppa stnuoma gnisU stcejorP noitavresnoC ygrenE .4042 .ceS .4002YF rof tcA noitazirohtuA esnefeD lanoitaN 631-801 .L.P .000,135,43$ fo tnuoma eht ni ,edoC setatS detinU ,01eltit fo 5682 noitces rednu stcejorp noitavresnoc ygrene tuo yrrac yam esnefeD fo yraterceS eht ,)6()a(4042 noitces ni snoitairporppa fo noitazirohtua eht ot tnausrup detairporppa stnuoma gnisU stcejorP noitavresnoC ygrenE .3042 .ceS .3002YF rof tcA noitazirohtuA esnefeD lanoitaN pmutS boB 413-701 .L.P .000,001,72$ fo tnuoma eht ni ,edoC setatS detinU ,01eltit fo5682 noitces rednu stcejorp noitavresnoc ygrene tuo yrrac yam esnefeD fo yraterceS eht ,)6()a(3042 noitces ni snoitairporppa fo noitazirohtua eht ot tnausrup detairporppa stnuoma gnisU stcejorP noitavresnoC ygrenE .2042 .ceS .2002YF rof tcA noitazirohtuA esnefeD lanoitaN 701-701 .L.P .000,000,51$ fo tnuoma eht ni ,edoC setatS detinU ,01 eltit fo 5682 noitces rednu stcejorp noitavresnoc ygrene tuo yrrac yam esnefeD fo yraterceS eht ,)7()a(3042 noitces ni snoitairporppa fo noitazirohtua eht ot tnausrup detairporppa stnuoma gnisU stcejorP noitavresnoC ygrenE .2042 .ceS .1002YF rof tcA noitazirohtuA esnefeD lanoitaN ecnepS .D dyolF 893-601 .L.P .000,862,1$ fo tnuoma eht ni ,edoC setatS detinU ,01eltit fo 5682 noitces rednu stcejorp noitavresnoc ygrene tuo yrrac yam esnefeD fo yraterceS eht ,)6()a(5042 noitces ni snoitairporppa fo noitazirohtua eht ot tnausrup detairporppa stnuoma gnisU stcejorP noitavresnoC ygrenE .4042 .ceS .0002YF rof tcA noitazirohtuA esnefeD lanoitaN 56-601 .L.P eltiT waL cilbuP stcA noitazirohtuA esnefeD lanoitaN .2-A elbaT ¢ Carol Glover, Information Research Specialist ¢ ------------------------------------------------------------------------------ For other versions of this document, see http://wikileaks.org/wiki/CRS-R40111