150 Energy Project Financing: Resources and Strategies for Success
THE ENERGY POLICY ACT OF 2005The first major piece of national energy legislation since the En-
ergy Policy Act of 1992, EPAct 2005 was signed by President George W.
Bush on August 8, 2005 and became effective January 1, 2006. The major
thrust of EPAct 2005 is energy production. However, there are many im-
portant sections of the act that do help promote energy efficiency and
energy conservation. There are also some significant impacts on federal
energy management. Highlights are described below:Federal Energy Management- The United States is the single largest energy user, with about a
$10 billion energy budget. Forty-four percent of this budget was
used for non-mobile buildings and facilities. The United States is
also the single largest product purchaser, with $6 billion spent for
energy using products, vehicles, and equipment.
Energy Management Goals- An annual energy reduction goal of 2% is in place from fiscal year
2006 to fiscal year 2015, for a total energy reduction of 20%. - Electric metering is required in all federal building by the year
2012. - Energy efficient specifications are required in procurement bids
and evaluations. - Energy efficient products to be listed in federal catalogs include
Energy Star and FEMP recommended products by GSA and De-
fense Logistics Agency. - Energy Service Performance Contracts (ESPCs) are reauthorized
through September 30, 2016. - New federal buildings are required to be designed 30% below
ASHRAE standard or the International Energy Code (if life-cycle
cost effective.) Agencies must identify those that meet or exceed
the standard. - Renewable electricity consumption by the federal government can-
not be less than: 3% from fiscal year 2007-2009, 5% from fiscal year
2010-2012, and 7.5% from fiscal year 2013-present. Double credits
are earned for renewables produced on the site or on federal lands
and used at a federal facility, as well as renewables produced on
Native American lands.