Session: Meeting Energy and Sustainability Goals with Renewables
Leveraging Your Renewable Energy Options to Maximize Goal Progress
Chris Tremper
U.S. Dept. of Energy, Federal Energy Management Program
August 10, 2016
Rhode Island Convention Center • Providence, Rhode Island
Federal Government Renewable Electricity Use
9.5%
9.2%
9.0%
8.8%
8.3%
992,546
4500K
8.0%
929,021
943,471
7.2%
4000K
8.5%
7.5%
7.0%
Renewable Electricity (MWh)
847,815
6.5%
3500K
5.3%
3000K
5.8%
6.0%
520,337
5.5%
5.0%
665,015
2500K
3,232,347
4.2%
2,837,789
2,570,408
4.0%
417,433
2000K
2,411,406
3.4%
304,542
3.5%
2,218,583
1500K
3.0%
1,827,709
926,830
2.5%
1,350,350
2.0%
1000K
307,262
500K
557,735
453,581
0K
2008
2009
354,848
220,797
257,905
2010
2011
716,955
738,614
1.5%
1.0%
323,815
487,346
312,384
370,686
328,897
525,641
0.5%
0.0%
2012
2013
Renewable Energy Category
Renewable Energy as a Percentage of Electricity Use
Electricity Purchases and Agency Owned (Off-Site)
Bonus Credit for On-Site Renewable Energy
Agency Owned (On-Site)
REC Purchases (Off-Site)
4.5%
2014
2015
RE as a Percentage of Facility Electricity
5000K
Federal Agency Progress Toward Renewable Electricity Target
FDIC
138.3%
EPA
121.3%
33.5%
State
USDA
29.4%
VA
24.5%
DOE
19.8%
SSA
19.5%
OPM
19.0%
TRSY
18.6%
RRB
17.7%
USACE
16.6%
15.3%
DOI
FY 24
12.3%
FY 22-FY 23
13.0%
FY 20-FY 21
FY 18-FY 19
14.3%
FY 16-FY 17
TVA
FY 13-FY 15
DOL
FY 10-FY 12
FY 07-FY 09
SI
12.3%
GSA
FY 25 and thereafter
DOT
12.0%
HHS
11.2%
10.5%
NASA
DOC
10.0%
NARA
9.7%
HUD
8.9%
DHS
8.5%
Federal Government
8.3%
DOJ
5.2%
DOD
3.6%
USPS 0.1%
0% 2%
4%
6%
8%
10% 12% 14% 16% 18% 20% 22% 24% 26%
FY 2015 Renewable Electric Energy as a % of Electricity Use
28%
30%
32%
34%
Overall Government Progress Toward Facility Energy Efficiency Goals,
FY 2003 - FY 2015
130K
FY 2015 Progress
BTU per GSF: 98,408
-23% Reduction vs 2003
120K
110K
100K
Btu per Gross Square Foot
90K
80K
EISA/E.O. 13423 Goal:
BTU per GSF: 89,163
(30% Reduction in 2015 vs 2003)
70K
60K
E.O. 13693 Goal:
BTU per GSF: 73,806
(25% Reduction in 2025 vs 2015)
50K
40K
30K
20K
10K
0K
PRELIMINARY DATA
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Energy Intensity Reduction Goals
• Facility energy intensity reduction goals (2.5% per year, reaching 25% by 2025 vs. 2015)
– Numerator subtracts all on‐site renewable energy (renewable electric energy and renewable thermal energy, with RECs or REC replacements) whether in goal subject or goal excluded facilities
– Numerator subtracts measured and verified energy conservation in goal excluded facilities
– Numerator subtracts weather‐normalized energy intensity reported in CTS if it is advantageous
– Agencies that achieved 30% or greater reduction in Energy Intensity during the 2003 to 2015 goal period may choose an alternative target of a combined total reduction in Energy Intensity of 47.5% from 2003 to 2025
5
Energy Exchange: Federal Sustainability for the Next Decade
Federal Government Progress toward Scope 1 and 2 Greenhouse Gas Reduction Goal
51,336,099
50M
48,970,828
46,837,668
45M
43,555,062
42,609,097
42,430,055
42,307,226
40M
Metric Tons of CO2e
35M
30,339,385
30M
25M
20M
15M
10M
5M
0M
2008
2010
2011
-4.6%
-8.8%
2012
-15.2%
2013
-17.0%
Steam and Hot Water
Industrial Process Emissions
Stationary Emissions
Chilled Water
Fugitive Emissions and Incinerators
Target Emissions Total
Other
Vehicles and Equipment
Net Electricity Emissions
Covered Fleets
2014
2015
2025 Target
-17.3%
-17.6%
-40.9%
PRELIMINARY DATA
Clean and Renewable Energy Targets
Clean Energy and Renewable Energy Targets for Federal Facilities
400000
350000
Billion BTUs
300000
Clean Energy
250000
Renewable Energy, Electric
200000
Non‐Renewable Energy
150000
100000
50000
0
FY15
FY16
FY17
Renewable Electric Target
Clean Energy Target
Cumulative Energy Intensity Reduction
7
FY18
FY15
7.5%
FY19
FY20
FY21
FY22
FY23
FY24
FY25
FY16
10.0%
10.0%
FY17
10.0%
10.0%
FY18 FY19 FY20
15.0% 15.0% 20.0%
13.0% 13.0% 16.0%
FY21
20.0%
16.0%
FY22
25.0%
20.0%
FY23
25.0%
20.0%
FY24
27.5%
22.5%
FY25
30.0%
25.0%
2.5%
5.0%
7.5%
15.0%
17.5%
20.0%
22.5%
25.0%
10.0% 12.5%
Energy Exchange: Federal Sustainability for the Next Decade
Importance of Renewable Electric Target for Clean Energy
Renewable Electric Target: By FY 2025, 30 percent of the total amount of electric energy consumed by each agency shall be renewable energy, 10% in FY16 and FY17, 15% in FY18 and FY19, 20% in FY20 and FY21, 25% in FY22 and FY23, 27.5% in FY24, 30% in FY25 and thereafter. •
Agencies to use renewable energy based on following priorities:
1. Install agency‐funded renewable energy on‐site and retain RECs
2. Contract for energy that includes the installation of a renewable energy project on‐site or off‐site from a Federal facility and retains RECs;
3. Purchase electricity and corresponding RECs (bundled RECs); and
4. Purchase (unbundled) RECS
•
When purchasing unbundled RECs or bundled RECs (last two priorities) sources must have been placed into service within 10 years prior to start of the fiscal year to count under this goal.
•
Agencies must still own RECs or have clear ownership of equivalent renewable and environmental attributes to meet renewable electric target
Energy Exchange: Federal Sustainability for the Next Decade
Clean Energy in EO 13693
•
•
•
9
Renewable Electric Energy includes:
•
– solar, – wind, – biomass, – landfill gas, – ocean (including tidal, wave, current, and thermal), – geothermal, – geothermal heat pumps, – Micro turbines (powered by renewable fuels), – municipal solid waste, or – new hydroelectric generation capacity achieved from increased efficiency or additions of new capacity at an existing hydroelectric project; No longer includes hydrokinetic, does not allow hydroelectric energy added to an existing dam that has not been used for hydropower in the past
Alternative Energy includes:
– Thermal renewable energy (including from CHP and fuel cell systems)
–
Small modular nuclear reactor output
–
CHP and fuel cells powered by fossil fuels, but only the amount of output left after subtracting the amount of natural gas (thermal component) and/or electricity (eGRID factor) that would produce the same amount of BTUs/electricity
–
Other alternative energy: if agreed, FEMP can petition CEQ on behalf of agencies to include mechanical, ocean/aquifer, and daylighting in the “Other” category. Energy Exchange: Federal Sustainability for the Next Decade
Federal Government Clean Energy Use as a Percentage of Federal Facility Energy Consumption
6.5%
24M
6.5%
6.2%
6.1%
3,386,565
6.0%
3,169,820
5.6%
3,219,124
20M
2,892,744
Clean Energy (Million Btu)
18M
5.0%
2,269,031
16M
4.5%
4.5%
4.0%
11,028,767
1,775,391
14M
9,682,537
8,770,231
8,227,719
1,424,282
12M
1,039,096
3.3%
3.0%
3.1%
7,569,806
4,607,393
2.5%
1,897,781
8M
2,960,814
6M
2,658,539
2,643,886
2,748,122
2.0%
4,053,023
3,433,540
4M
1.5%
1,673,239
7,247,466
5,799,043
2M
3,690,119
6,448,218
6,853,064
6,937,913
4,073,792
3,411,565
1.0%
0.5%
0M
2008
Clean Energy Category
4.0%
3.5%
6,236,570
10M
3,162,344
5.5%
0.0%
2009
2010
2011
2012
2013
Bonus Credit for On-Site Renewable Energy
Total Agency Owned (On-Site)
REC Purchases (Off-Site)
Clean Energy from Renewables (% Facility Energy Use)
Total Energy Purchases and Agency Owned (Off-Site)
2014
2015
Percentage of Facility Energy Use
22M
Choices
• Sources On/Off Federal or Indian Land?
• Owned, or Purchased?
• Energy, RECs, Null Power, None of The Above (hosted‐only)?
• Electric or Non‐Electric?
• Short‐term or Long‐term commitment?
• Which Technology/Fuel?
• Age of the Source (purchases only)?
• Geography (State RPSs)
11
Implications
Energy Intensity Impact
Bonus‐Eligibility
GHG Impact
Clean Energy
– Renewable Electric (w bonuses)
– Alternative Energy
• Cost/Benefit of Action
•
•
•
•
– Energy Security
– Environmental
– Meet E.O./Statutory goals
Energy Exchange: Federal Sustainability for the Next Decade
Leverage: On Federal or Indian Land
•
•
•
•
•
12
Bonus for renewable electric target:
– RECs, Green Power, or Agency‐Owned
– On‐ or Off‐ the agency site
On‐site generation/consumption at an agency facility is SUBTRACTED from energy intensity – electric or thermal
If agency does not own the RECs, but purchases replacement RECs: – Allows reclaiming the bonus for electric sources
– If agency uses energy (null power), subtracts from energy intensity for thermal and electric sources
If source is not on‐site, – The source has to be less than 10 years old; except
– If the source is owned by a Federal agency or Indian tribe there is no age limit except for hydropower (placed in service after 1/1/1999)
Counts toward the DOD goal (no bonuses) even without RECs
Energy Exchange: Federal Sustainability for the Next Decade
On Federal or Indian Land, REC Replacement, Energy Used by Agency
1.
Agency or a developer installs a renewable electricity project on Federal or Indian Land
2.
Agency arranges to use the electricity, but not the RECs
3.
1000 MWh
Agency or developer disposes Electricity
of the RECs, uses part of proceeds to reduce agency electricity costs – up to $400/MWh for sale of RECs, replaced by RECs at $1/MWh, leaves $399 MWh of potential cost reduction
13
1000 MWh
RECs
Energy Exchange: Federal Sustainability for the Next Decade
On Federal or Indian Land, REC Replacement, Energy Not Used by Agency
1.
Developer installs a renewable electricity project on Federal or Indian Land
2.
Agency only hosts the project, does not use the electricity, developer sells electricity
3.
Developer disposes of the RECs, agency does not directly benefit beyond terms of land use agreement
4.
Agency buys replacement RECs
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1000 MWh
Electricity
1000 MWh
RECs
Energy Exchange: Federal Sustainability for the Next Decade
On Federal or Indian Land, REC Replacements
• REC replacements restore all agency benefits for Renewable Electricity Target; Clean Energy progress; and lower or zero GHG Emissions from the RECs
• ONLY if the agency uses the energy from the source, the Energy Intensity Reduction is restored
• Agency renewable electricity cost usually lower, if it uses the electricity
• Agency/Federal government receives whatever compensation is negotiated/allowed for land use
• Third‐party REC purchaser uses them to comply with renewable portfolio standards or other renewable purchase requirements
• REC replacements can be from any qualified off‐site renewable source that meets the 10‐year age restriction
15
Energy Exchange: Federal Sustainability for the Next Decade
What Could Possibly Go Wrong: REC Replacement Sensitivities
• Ownership of RECs from agency on‐site projects can raise issues of government property and proper disposal – consult procurement experts
• The age restriction on REC sources is a new requirement that is applied to REC purchases every year; must less than 10 years old
• Land use issues involving developers siting projects on Federal land is complex and can vary by agency –
expert advice is needed
16
Energy Exchange: Federal Sustainability for the Next Decade
What Could Possibly Go Wrong: REC Replacement Sensitivities
• Value of RECs in RPS compliance markets depends on:
– Timing
– Location
– Competition
– Source
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Energy Exchange: Federal Sustainability for the Next Decade
Renewable Electric Energy From Projects on Federal or Indian Land
Agency Owns Energy and RECs from Project
Hosted Project (RECs)
Hosted Project (Green Energy)
RECs Transferred but Energy Used by Agency
All RECs
All RECs
Partial RECs
All RECs
Partial RECs
No RECs
Yes
Yes
Yes, Replacement Allowed
Yes
Bonus
Replacement Allowed
Bonus for Renewable
Electric Target
Yes
No
No
Yes
Yes, Replacement
Allowed
Yes, Replacement
Allowed
Energy Intensity Reduced
0*
0*
0*
0*
>0*
>0***
GHG Impact
Yes
Yes
Partial
(except DoD)
Yes
Partial
(except DoD)
No
(except DoD)
Clean Energy
Yes
Yes
Yes, Replacement
Allowed
Yes
Yes, Replacement
Allowed
Yes, Replacement
Allowed
Renewable Electric Target
No
No
No
No
Yes
Yes
Null Power
100%
100%
0‐99%****
100%
1‐99%****
0%
REC %age
*0 GHG emissions except biomass. ** 0 GHG emissions from project, impact on emissions estimated by amount of avoided emissions at location of source. ***Energy is no longer renewable so emissions based on equivalent amount of conventional energy, electricity for electricity, natural gas for non‐electric. ****0% Hosted Project (RECs) is only for projects that are on a Federal/Indian site but deliver no power or RECs, basically the project is just using Federal land. When Hosted Project (Green Energy) goes to 0% it becomes RECs Transferred but Energy Used by Agency.
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Energy Exchange: Federal Sustainability for the Next Decade
Renewable Non‐Electric Energy From Projects on Federal or Indian Land
Agency Owns Energy and RECs from Project
Hosted Project (RECs)
Hosted Project (Green Energy)
RECs Transferred but Energy Used by Agency
All RECs
All RECs
Partial RECs
All RECs
Partial RECs
No RECs
No
No
No
No
No
No
Bonus
Yes
No
No
Yes
Yes, Replacement
Allowed
Yes, Replacement
Allowed
Energy Intensity Reduced
0*
0*
0*
0*
>0*
>0***
GHG Impact
Yes
Yes
Partial
(DoD Full)
Yes
Partial
(DoD Full)
No
Clean Energy
No
No
No
No
No
No
Renewable
Electric Target
No
No
No
No
Yes
Yes
Null Power
100%
100%
0‐99%****
100%
1‐99%****
0%
REC %age
*0 GHG emissions except biomass. ** 0 GHG emissions from project, impact on emissions estimated by amount of avoided emissions at location of source. ***Energy is no longer renewable so emissions based on equivalent amount of conventional energy, electricity for electricity, natural gas for non‐electric. ****0% Hosted Project (RECs) is only for projects that are on a Federal/Indian site but deliver no power or RECs, basically the project is just using Federal land. When Hosted Project (Green Energy) goes to 0% it becomes RECs Transferred but Energy Used by Agency.
19
Energy Exchange: Federal Sustainability for the Next Decade
NOT On Federal or Indian Land (Mostly Purchases)
•
•
•
•
•
•
20
RECs, Green Power, or Agency‐Owned sources of renewable electricity count
Off‐Site sources ADD to energy intensity – electric or thermal
If agency does not own the RECs but does use the energy, GHG emissions are calculated as if the energy came from the grid (electric) or fossil fuels (thermal)
Generates emissions from T&D losses
The source has to be less than 10 years old:
– Unless it is owned by a Federal agency, or
– The purchase mechanism qualifies was initiated as a long‐term contract (10 years or greater) as explained in REC Guidance
Counts toward DOD Goal, with or without RECs
Energy Exchange: Federal Sustainability for the Next Decade
Purchases from Off‐Site, Not On Federal or Indian Land
3. Purchase electricity and corresponding RECs; and
4. Purchase RECS
• Renewable electricity target and clean energy target
– Electricity counts toward both, thermal energy only toward clean energy
– No bonus for electricity because these categories are not on Federal or Indian land
• GHG emissions – Calculated based on emissions from fuel/source
– Electricity purchases cause Scope 3 emissions from T&D losses
• Do not reduce energy intensity because they are not on‐site
21
Energy Exchange: Federal Sustainability for the Next Decade
REC Ownership and Claims
• Renewable electric, clean energy, energy intensity and GHG claims for renewable energy sources require agencies own the renewable and related attributes – as embodied in RECs
• Be careful of claims of “using,” “hosting,” “generating,” “avoiding emissions” without ownership of attributes
• FTC Green Guides explains their view of false claims concerning renewable energy use in §260.15 Renewable energy claims
• REC ownership requirement does not apply to DOD’s separate NDAA renewable energy goal at 10 U.S.C. § 2911(e)
22
Energy Exchange: Federal Sustainability for the Next Decade
Summary
• On‐site projects (on Federal or Indian land)
– deliver the most progress on agency goals
• Renewable, Clean Energy, Energy reduction, GHG
– are persistent in time and insulated from volatility in supply and cost
• Purchases of unbundled RECs and bundled RECs from off‐site – offer short‐term progress but are vulnerable to changes in supply and cost over time, – are subject to the new 10‐year age restriction in most cases – Are good for sites with no renewable opportunities
• Goals are agency‐wide—consider portfolio approach
23
Energy Exchange: Federal Sustainability for the Next Decade
FEMP Contacts and Key References
•
Chris Tremper, Program Analyst (202) 586‐7632
[email protected]
•
EO 13693, Planning for Sustainability in the Next Decade, www.gpo.gov/fdsys/pkg/FR‐
2015‐03‐25/pdf/2015‐07016.pdf
•
Rachel Shepherd, Renewable Energy Program Manager, (202) 586‐9209
[email protected]
•
•
Tracy Niro, Renewable Procurement Program
(202) 431‐7601
[email protected]
Implementing Instructions for Executive Order 13693 Planning for Federal Sustainability in the Next Decade, www.whitehouse.gov/sites/default/files/do
cs/eo_13693_implementing_instructions_ju
ne_10_2015.pdf
•
Federal Renewable Energy Certificate Guide, Office of Federal Sustainability, Council on Environmental Quality
sustainability.gov/Resources/Guidance_rep
orts/Federal‐Renewable‐Energy‐Certificate‐
Guide‐June‐16‐2016‐Final‐Version.pdf
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Energy Exchange: Federal Sustainability for the Next Decade