BUDGETING FOR THE FEDERAL ENERGY MANAGEMENT PROGRAM (FEMP)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85-00988R000500030006-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 7
• Document Creation Date: December 14, 2016
• Document Release Date: May 14, 2003
• Sequence Number: 6
• Publication Date: September 6, 1977
• Content Type: MEMO

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TO THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES
r
DD/.A Registry
SUBJECT: Budgeting for the Federal Energy Management Program (FEMP)
The President has directed Federal agencies to examine their activities
to assure appropriate priority has been given to energy conservation.
Agencies should pursue activities necessary to implement Executive Order
No. 12003 relating to Federal Government energy conservation.
This Executive order requires that agencies aim by 1985 to reduce their
energy consumption from 1975 levels: (1) by 20 percent for existing
Federal buildings, (2) by 45 percent for new Federal buildings, and
(3) through meeting specified fuel economy standards for new car purchases.
Copies of Executive Order No. 12003 and the associated White House press
release are attached to this memorandum.
You should identify activities that will help achieve the President's
energy conservation goals. In doing so, please look carefully at your
existing programs to see whether there are areas where tradeoffs can be
made.
There may be a tendency to defer energy conservation improvements in
order to respond to near-term problems that are identified more directly
with the agencies' stated missions. We urge you to be sensitive to this
tendency and take a balanced view giving full consideration to the Presi-
dent's Federal Governent-wide energy reduction goals.
This year staff of the Office of Management and Budget and the Federal
Energy Administration (Department of Energy after October 1, 1977) will
meet with staff of key agencies that have major energy-saving potential
to give guidance with respect to information needed in. addition to that
in their FY 1979 budget requests. For subsequent years, this Office will
publish formal budget guidance on the Federal Energy Management Program
for all executive agencies. In the meant'me, we urge you on your own
initiative to take steps necessary to coyly with the President's Execu-
tive order.
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Office of-the White House Press Secretary
THE WEITJ HOUSE
ENERGY CONSERVATION
The President today signed an executive order on energy
policy and conservation.
The order instructs Federal agencies to:
1. Purchase automobiles which insure that the fleet
average fuel economy exceeds the average fuel economy
under the Energy Policy and Conservation Act by at
least two miles per gallon in 1978 and four miles per
gallon in 1980. The changeover would take place at a
rate of more than 15,000 vehicles per year.
2. Reduce by 1985 energy consumption in existing Federal
buildings by 20 percent from 1975 levels, and in new
buildings by 45 percent. These changes could result in
savings in our balance of payments of up to $344 million
per year at current prices.
year-1976-was about 13-miles per gallon, according to the General
FEDERAL AUTOMOBILE FLEET
In order to set an example for the rest of the country, the
Federal government under this executive order commits itself to
phasing out gas guzzling automobiles by requiring the fleet of
new passenger vehicles purchased or leased by the government to
achieve an average fleet fuel economy substantially higher than
the national standard. The average gas mileage experienced by
the major agency fleets for passenger automobiles during fiscal
In addition, the executive order prohibits the government
from purchasing or leasing a passenger vehicle which does not
achieve at least the national average fuel economy standard.
--According to the General Services Administration, in 1975,
the Federal government owned approximately 95,000 passenger
vehicles and leased an additional 6,000 to 8,000 passenger
vehicles. Approximately one-sixth of the fleet is replaced per
year, according to GSA.
--The estimated petroleum savings in 1980 under the plan
would be 200 to 400 barrels of oil per day; in 1985, the savings
would increase to 500 to 700 barrels per day, according to
Federal Energy Administration estimates.
FEDERAL .DUILDINGS
There are approximately 400,000 federally owned buildings
totalling around 2.5 billion square feet of floor space. In
1975, federal buildings consumed the equivalent of 375,000
barrels of oil per day, roughly 1 percent of total domestic
energy demand.
This executive order aims to achieve cost effective capital
improvements including insulation, modifications of heating,
ventilating and air conditioning systems and installation of
storm windows, heat recovery systems or solar energy systems.
It is expected that such modifications could save up to
20 percent of the energy consumed in existing federal buildings,
or approximately 70,000 barrels of oil equivalent per day. .
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Office the 'White House Press Secretary
RELATING TO ENERGY POLICY AND CONSERVATION
By virtue of the authority vested in me by the
Constitution and the statutes of the United States of
America, including the Energy Policy and Conservation
Act (89 Stat. 871, 42 U.S.C. 6201 et sta.), the Motor
Vehicle Information and Cost Savings Act, as amended
(15 U.S.C. 1901 et seq.), Section 205(a) of the Federal
Property and Administrative Services Act of 1949, as
amended (40 U.S.C. J186(a)), and Section 301 of Title 3 of
the United States Code, and as President of the United
States of America, it is hereby ordered as follows:
Section 1. Section 1 of Executive Order No. 11912
of April 13, 1976, is amended to-read as follows:
"Section 1. (a) The Administrator of General .Services
is designated and empowered to perform, without approval,
ratification or other action by the President, the function
vested in the President by Section 510 of the Motor Vehicle
Information and Cost Savings Act, as amended -(89 Stat. 915,
15 U.S.C. 2010).. In performing this function, the Adminis-
trator of General Services shall:
(1) Promulgate rules which will ensure that the
minimum statutory requirement for fleet average fuel economy
is exceeded (i) for fiscal year 1978 by 2 miles per gallon,
(ii) for fiscal year 1979 by 3 miles per gallon, and (iii)
for fiscal years 1980 and after by 4 miles .per gallon.
(2) Promulgate rules which will ensure that Executive
agencies do not acquire, subsequent.to fiscal year 1977
any passenger automobile unless such automobile meets or
exceeds the average fuel economy standard for the appropriate
model year established by, or pursuant to, Section 502(a)
of the Motor Vehicle !::formation and Cost Savings Act, as
amended (15 U.S.C. 2002(a)); except that, such rules (i) shall
not apply to automobiles designed to perform combat-related
missions for the Armed Forces or. designed to be used in
law enforcement work: or emergency rescue worn:, and (ii) may
provide for granting exemptions for individual automobiles
used for special purposes as determined to be appropriate
by the Administrator of General Services with the concur-
rence of the Administrator of the Federal Energy Administration.
"(b) The Administrator of General Services shall
promulgate rules which will ensure that each class of non-
passenger automobiles acquired by all Executive agencies in
each fiscal year, bC iI nIng with fiscal year 1979, achieve
for such fiscal year a. fleet overage f ue.! economy net less
than the average fuel economy standard for such class,
established pursuant to Section 502(b) of the Motor Vehicle
Information and Cost Savings Act, as amended (89 Stat. 903,.
15 U.S.C. 2002(b)), for the mode- year which includes
January i of,such fiscal year; except that, such rules (l)
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shall not apply to automobiles designed to perform combat-
related.miss.ions for the Armed Forces or designed to be used
in law enforcement work or emergency rescue work, and (2) may
provide for granting exceptions for other categories of auto-
mobiles used for special purposes as determined to be appropriate
by the Administrator of General Services with the concurrence
of the Administrator of the Federal Energy Administration.".
Sec. 2. Executive Order No. 11912 of April 13, 1976,
is further amended by adding the following new Section:
"Sec. 10. (a)(1) The Administrator of the Federal
Energy Administration, hereinafter referred to as the Adminis-
trator, shall develop, with the concurrence of the Director
of the Office of Management and Budget, and in consultation
with the Secretary of Defense, the Secretary of Housing and
Urban Development, the Administrator of Veterans' Affairs,
the Administrator of the Energy Research and Development
Administration, the Administrator of General Services, and
the heads of such other Executive agencies as he deems
appropriate, the ten-year plan for energy conservation with
respect to Government buildings, as provided by section
381(a)(2) of the Energy Policy and Conservation Act
(42 U.S.C. 6361(a)(2)).
(2) The goals established in subsection (b) shall
apply to the following categories of Federally-owned
buildings: (i) office buildings, (ii) hospitals, (iii)
schools, (iv) prison facilities, (v) multi-family dwellings,
(vi) storage facilities, and (vii) such other categories
of buildings for which the Administrator determines the
establishment of energy-efficiency performance goals is
feasible.
"(b) The Administrator shall establish requirements
and procedures, which shall be observed by each agency
unless a waiver is granted by the Administrator, designed
to ensure that each agency to the maximum extent practicable
aims to achieve the following goals:
(1) For the total of all Federally-owned existing
buildings the goal shall be a reduction of 20 percent in the
average annual energy use per gross square foot of floor area
in 1985 from the average energy use per gross square foot
of floor area in 1975. This goal shall apply to all buildings
.for which construction was or design specifications were
`completed prior to the date of promulgation of the guidelines
pursuant to subsection (d) of this Section.
(2) For the tot-al of all Federally-owned new buildings
the goal shall be a reduction of-45 percent in the average
annual energy requirement per gross square foot of floor area
in 1985 from the average annual energy use per gross square
foot of floor area in 1975. This goal shall apply to all
new buildings for which design specifications are completed
after the date of promulgation of the guidelines pursuant
to subsection (d) of this Section.
"(c) The Administrator, .=,,ith the concurrence of the
Director of the Office of Managcment and Budget, in consulta-
tion with the heads of the Executive agencies specified in
subsection (a) and the Director of the National Bureau of
Standards, shall establish, for purposes of developing the
ten-year plan, a practical and effective method for estimating
and comparing life cycle capital and operating costs for
Federal buildings, including residential, commercial, and
industrial type categories. Such method shall be consistent
with the Office of ;'ansgement and Budget Circular 2+0. A-911,
and shall be adopted and used by all agencies in developing
more
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their plans pursuant to subsection (e), annual reports
pursuant to subsection (g), and budget estimates pursuant
to subsection (h). For purposes of this paragraph, the term
"life cycle cost" means the total costs of owning, operating,
and maintaining a building over its economic life, including
its fuel and energy costs, determined on the basis of a
systematic evaluation and comparison of alternative building
systems.
"(d) Not later than November 1, 1977, the Administrator,
with the concurrence of the Director of the Office of
Management and Budget, and after consultation with the
Administrator of General Services and the heads of the
Executive agencies specified in subsection (a) shall issue
guidelines for the plans to be submitted pursuant to
subsection (e).
"(e) (1) The head of each Executive agency that maintains
any existing building or will maintain any new building shall
submit no later than six months after the issuance of guidelines
pursuant to subsection (d), to the Administrator a ten-year
plan designed to the maximum extent practicable to meet
the goals in subsection (b) for the total of existing or
new Federal buildings. Such ten-year plans shall only
consider improvements that are cost-effective consistent
with the criteria established by the Director of the Office
of Management and Budget (OMB Circular A--94) and the method
established pursuant to subsection (c) of this Section. The
plan submitted shall specify appropriate energy-saving
initiatives and shall estimate the expected improvements by
fiscal year in terms of spec'.fic accomplishments -- energy
savings and cost savings -- together with the estimated costs
of achieving the savings.
(2) The plans submitted shall, to the maximum extent'
practicable, include the results of preliminary energy audits
of all existing buildings with over 30,000 gross square feet
of space owned and maintained by Executive agencies. Further,
the second annual report submitted under subsection (g)(2)
of this Section shall, to the maximum extent practicable,
include the results of preliminary energy audits of all
existing buildings with more than 5,000 but not more than
30,000 gross square feet of space. The purpose of such
preliminary energy audits sh.ll be to identify the type,
size, energy use level and major energy using systems of
existing Federal buildings.
(3) The Administrator shall evaluate agency plans
relative to the guidelines established pursuant to subsection (d
for such plans and relative to the cost estimating method
established pursuant to subsection (c). Plans determined to
be deficient by the Administrator will be returned to the
submitting agency head for revision and resubmission within
60 days.
(4) The head of any Executive agency submitting a plan,
should he disagree with the Administrator's determination
with respect to that plan, may appeal to the Director
of the Office of Management and Budget for resolution of
the disagreement.
"(f) The head of each agency submitting a plan or
revised plan determined not deficient by the Administrator
or, on appeal, by the Director of the Office of Management
and Budget, shall implement the plan in accord with approved
budget estimates,
(OVER)
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"(g)(1) Each Executive agency shall submit to the
Administrator an overall plan for conserving fuel and energ.
in all operations of the agency. This overall plan shall
be in addition to and include any ten-year plan for energy
conservation in Government buildings submitted in accord
With Subsection (e).
(2) By July 1 of each year, each Executive agency
shall submit ?a report to the Administrator on progress
made toward achieving the goals established in the overall
plan required by paragraph (1) of this subsection. The
annual report shall include quantitative measures and
accomplishment with respect to energy saving ac.'-..:: taken,
the cost of these actions, the energy saved, the costs saved,
and other benefits realized.
(3) The Administrator shall prepare a consolidated
annual report on Federal government progress toward achieving
the goals, including aggregate quantitative measures of
accomplishment as well as suggested revisions to the ten-year
plan, and submit the report to the President by August 15 of
each year.
"(h) Each agency required to submit a plan shall submit
to the Director of the Office of Management and Budget with
the agency's annual budget submission, and in accordance
with procedures and requirements that the Director shall
establish, estimates for implementation of the agency's plan.
The Director of the Office of Management and Budget shall
consult with the Administrator about the agency budget
estimates.
"(i) Each agency shall program its proposed energy
conservation improvements of buildings so as to give the
highest priority to the most cost-effective projects.
"(j) No agency of the Federal government may enter
into a lease or a commitment to lease a building the
construction of which has not commenced by the effective
date of this Order unless the building will likely meet
or exceed the general goal set forth in subsection (b)(2).
"(k) The provisions of this Section do not apply to
housing units repossessed by the Federal Government.".
JIfINY CARTER
THE WHITE HOUSE,
July 20, 1977.
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