I. Title of the Best Practice

II. Overview of the Best Practice

A. General Description
The Federal Energy Management Program (FEMP) began in 1975 and has a substantial track record of reducing energy use and associated carbon emissions in the U.S. Federal Government, as well helping to develop new opportunities in energy services markets. A series of Executive Orders issued in 1991, 1994 and 1999 has expanded the scope and set progressively more ambitious energy savings targets for this program. Executive Order 13123, signed in June 1999, added the first greenhouse gas reduction program goal of a 30% reduction from facilities from 1990 levels by 2010. This multi-faceted program addresses all federal energy uses from buildings to vehicles to generating plants. The program has three main components: Managing cost through utility purchases; promoting energy efficiency and water conservation; and promoting renewable power and technologies.

The program exceeded its goal of a 10% energy savings by 1995. Additional goals include 20% greater energy efficiency in buildings by 2000, and a 30% improvement by 2005 relative to the year 1985. The program's next challenge, released September 1999, is a 35% building efficiency improvement by 2010 relative to 1985.

B. Special Characteristics of the Best Practice
The FEMP program works within the existing government structure, making each agency responsible for improving its own energy usage while providing coordinated expert support. It seeks to influence private sector markets through example, improvement of market share for energy efficient products, and development of improved private sector financial mechanisms for supporting these improvements.

Investments under the program are based on life-cycle cost-effectiveness. This has not only helped to lower overall costs within the federal sector, but has also helped ensure that program investments provide examples to the private sector of economically attractive savings opportunities. By utilizing Energy Savings Performance Contracts and Utility Energy Services Contracts, the program has helped nurture the development of a private market in the financing and implementation of building energy savings investments and reduced transaction costs.

This program utilizes somewhat different approaches for mature and emerging technologies, and for turn-key and custom applications. It emphasizes, for example, recommended performance levels for mature, turn-key applications. Mature, but custom, applications such as whole building energy improvements, are handled through energy service performance contracts allowing the use of expert advice in selecting among improvement options. Emerging technologies are addressed through the showcase and demonstration aspects of the program.

The legislative and executive changes in this program have been key to its success over the last decade. Without these changes, federal agencies could not have tapped sources of financing via the energy service performance contracts and utility financing programs.

Energy successes--and failures--are tracked and reported in detail on an annual basis. In addition to reporting how each agency is doing, the program provides detailed results from individual energy savings investments.

C. Reasons for Inclusion as Best Practice
Exceeded the requirement of a 10% energy savings per square foot by 1995 and is on course to exceed a 20% reduction by 2000 and a 30% reduction by 2005 relative to the year 1985. In addition to meeting this goal, the program has contributed to an almost 1/3 quadrillion Btu reduction in total net energy use by the U.S. Government.

Address multiple policy objectives. Because this program helps reduce the costs of many other programs, it is largely viewed as benefitting the broad array of public policy objectives. Its integrated approach of looking for potentials for energy, associated carbon dioxide emissions, renewable energy applications, and water savings has helped foster a relatively broad energy and environmental outlook in federal operations.

Build on and strengthen the energy service market for commercial buildings.

Exhibit substantial "learning by doing" over the course of the program, expanding into new areas of opportunity as the program has matured.

III. Categorizing the Best Practice

1. Classification(s) (Indicate main classification(s) only.)
( X ) Regulatory Approach (Policy approaches-- regulations, incentives, etc.)
( ) Practical Action (Action undertaken independently by a social actor)
( ) Social Network Mechanism (Cooperative structure)

2. Social Actor(s) Involved (Indicate main social actor(s) only.)
( ) Citizens
( X ) Central government
( ) State government
( ) Local government
( ) Not-for-profits

3. Sector(s) (Indicate main sector(s) only.)
( X ) Energy
( ) Household
( X ) Transportation
( ) Industrial Enterprises
( ) Other (Non-Industrial) Business
( ) Agriculture/ Land Use/ Forestry
( ) Other (Please specify.)

4. Target Greenhouse Gas(es)
( ) CO2
( ) CH4
( ) N2O
( ) HFC
( ) PFC
( ) SF6
( X ) Other No specific greenhouse gas is targeted. The most recent Executive Order includes a general greenhouse gas reduction goal.

IV. List of References

http://www.eren.doe.gov/femp/

V. Please indicate a person to contact for more information about this Best Practice.

Contact Person:	Beth Shearer
Title:	Director, FEMP
Organization:	U.S. Department of Energy
Email:	elizabeth.shearer@ee.doe.gov
Tel:	202-586-5772
Fax:	202-586-
Address:	1000 Independence Avenue SW, Washington, D.C. 20585-0121 USA