The Basics

Environmental Management Systems

By Katherine McIntire Peters and Kellie Lunney

What Is It?

The government uses environmental management systems as comprehensive frameworks to improve the energy efficiency of federal facilities and transportation fleets, cut costs and reduce adverse effects on the environment. A 2007 executive order dubbed EMS the "primary management approach" in the government's effort to become greener. Environmental management systems are like environmentally specific versions of the President's Management Agenda.

This approach to green government has been around since the 1990s, but became a requirement for agencies in an April 2002 executive order. The EMS framework incorporates governmentwide performance metrics that enable agencies to review their compliance with environmental regulations and laws on an ongoing basis. Agencies ranging from the Centers for Disease Control and Prevention to the Defense Department have put in place EMS strategies to oversee various green government initiatives. For instance, CDC has tried to reduce hazardous waste by using an electronic system that manages records and tracks toxins. This approach has helped the agency identify more opportunities for minimizing waste. The General Services Administration, which shepherds the federal government's green portfolio, has several environmental management systems for areas including energy and water conservation, recycling and sustainable design.

Why Should I Care?

Congress and the Bush administration have become aggressive about pushing agencies to adopt more environmentally friendly management and procurement practices as the cost of oil rises and the issue of climate change moves to the forefront of the national political agenda. That trend is likely to continue under the next administration, be it Republican or Democratic.

In a 2007 executive order, President Bush directed agencies to improve energy efficiency and reduce greenhouse gases in buildings and transportation by 30 percent and water consumption by 16 percent by the end of 2015. Congress raised the green bar even higher with the passage of the 2007 Energy Independence and Security Act, which requires federal managers to cut fossil fuel use at new and renovated government facilities by 55 percent by 2010 and 100 percent by 2030.

By the end of fiscal 2007 just a few thousand facilities were targeted as appropriate for EMS implementation - a fraction of the government's real estate. Agencies were left to determine which buildings would qualify based on size, complexity and potential to affect the environment. It's likely, however, that more agencies will launch an EMS to manage their buildings and fleets, as public sentiment shifts toward greener living in the face of rising gas, food and utility costs and environmental degradation. While the price of oil seems to have stabilized at the moment, it's still high and demand is not going to disappear, making alternatives more important than ever. Both presumptive presidential nominees believe the federal government should lead the effort to conserve energy and save money. In the current climate, federal agencies will be expected to pinch pennies and get creative about energy use - much like the average American consumer.

What Are the Requirements?

Both Executive Order 13423, which designates EMS as the strategic mechanism for managing green government initiatives, and the Energy Independence and Security Act set targets for reducing federal agencies' dependence on oil.

Under E.O. 13423, agencies must:

* Reduce petroleum consumption by 2 percent annually through 2015 and increase alternative fuel consumption by 10 percent annually during the same period.

* Increase energy efficiency by 30 percent by 2015.

* Cut greenhouse gas emissions by 30 percent by 2015.

* Invest in renewable power. At least 50 percent of renewable energy purchases must come from new sources in service after Jan. 1, 1999.

* Buy more efficient technology. Ninety-five percent of annual electronic purchases must meet Electronic Product Environmental Assessment Tool standards (EPEAT is a program of the nonprofit Green Electronics Council); be sure all computer components have Energy Star features (Energy Star is a program jointly managed by the Energy Department and Environmental Protection Agency to certify energy-efficient products and practices); and all electronics must be reused, recycled, donated or sold in accordance with environmentally sound management practices.

The Energy Independence and Security Act requires agencies to:

* Replace all general purpose lighting by 2013 with Energy Star products or those designated under Energy's Federal Energy Management Program.

* Install devices on appliances that limit standby energy use.

* Establish a plan to ensure all facilities built after 2025 achieve zero net energy use (meaning they produce as much energy as they consume), and retrofit all buildings by 2050 to achieve zero net energy use.

* Reduce total energy use in existing buildings by 30 percent by 2015, based on 2005 consumption rates.

* Reduce fossil fuel use in new buildings and major renovations by 55 percent by 2010 and eliminate fossil fuel use in new buildings by 2030.

* Meet at least 30 percent of hot water demand in new buildings and renovations using solar equipment if it proves cost-effective over the life cycle of the building.

* Lease only facilities that have earned an Energy Star label from the Environmental Protection Agency.

How's It Going?

Federal agencies have made a lot of progress in reducing energy consumption. Since 1985, GSA, which owns or leases 352 million square feet of office space in about 8,600 buildings in the United States, has cut energy consumption in public buildings by 30 percent and carbon emissions from facilities by 281 thousand metric tons, the equivalent of removing 210,000 vehicles from the road for a year. More than 80 federal buildings now are certified under the Leadership in Energy and Environmental Design program, a nationally recognized benchmark for the design, construction and operation of green buildings, and more than 200 have received the Energy Star label. To earn the label, buildings must demonstrate they use about 35 percent less energy than average.

But meeting the escalating conservation targets set by EISA and E.O. 13423 will be a challenge. For one thing, many officials worry that technology does not yet exist that would enable agencies to meet some of the most rigorous milestones. In the area of vehicle emissions goals, there isn't enough national infrastructure to support widespread use of flex fuel and other alternative fuel vehicles that would allow agencies to meet the stricter standards. In addition, agencies face spending restrictions that affect their ability to make the best long-term energy-use decisions. For example, senior officials at GSA are seeking exemption from a law that prohibits the agency from entering into utility contracts for longer than 10 years, a prohibition that limits their leverage in purchasing renewable energy. Renewable power plant developers often need longer-term purchase agreements to finance and build increased capacity using sources such as sun and wind.

GSA, with its enormous purchasing power (it spends 25 percent of the government's procurement dollars), will lead the way for most agencies. This year, as required by EISA, it established an Office of Federal High-Performance Green Buildings to coordinate green government efforts. The office, while not yet fully staffed, is headed by Kevin Kampschroer, who has been leading the agency's efforts in sustainable design. The new office's charter is to develop technical standards for all federal facilities, establish green practices for building operations and maintenance, develop metrics for measuring life-cycle costs, and identify best practices in budgeting and contracting. It has its work cut out for it.

Vendors Solutions Center