Federal energy efficiency and water conservation funding study

This report contains the results of a study required by section 162 of the Energy Policy Act of 1992 (EPAct). It outlines options for financing energy and water conservation measures at Federal facilities as required by Part 3 of Title V of the National Energy Policy and Conservation Act (NECPA) (42 U.S.C. 8251 et seq.) as amended by EPAct. It addresses: (1) the estimated Federal financial investment necessary to install energy and water conservation measures to meet NECPA and Executive Order requirements; (2) the use of revolving funds and other funding mechanisms which offer stable, long-term financing of energy and water conservation measures; and (3) the means for capitalizing such funds. On March 8, 1994, President Clinton signed Executive Order 12902. This Executive Order is an aggressive mandate to improve energy efficiency and water conservation in Federal buildings nationwide. This Executive Order is designed to meet and exceed requirements for Federal energy and water efficiency that were contained in section 152 of EPAct. Section 152 mandated that Federal agencies use all cost effective measures with less than a ten year payback to reduce energy consumption in their facilities by 20% by the year 2000 compared to 1985 levels. In addition, Executive Order 12902 established a requirement to use cost effective measures to reduce energy use by fiscal year 2005 by 30% compared to 1985 energy use. This report provides estimates for the energy and water conservation investments needed to achieve the NECPA and Executive Order goals as well as estimates for the contribution from various funding sources and a review of the mechanisms for funding these investments