Federal Aviation Administration retained savings program proposal [report]

D.J. Hostick, L.L. Larson, C.J. Hostick
1998 unpublished
Federal legislation allows federal agencies to retain up to 50% of the savings associated with implementing energy efficiency and water conservation measures and practices. Given budget pressures to reduce expenditures, the use of retained savings to fund additional projects represents a source of funds outside of the traditional budget cycle. The Southwest Region Federal Aviation Administration (FAA) has tasked Pacific Northwest National Laboratory (PNNL) to develop a model retained savings
more » ... retained savings program for Southwest Region FAA use and as a prototype for consideration by the FAA. PNNL recommends the following steps be taken in developing a Southwest Region FAA retained savings program: Establish a retained savings mechanism. Determine the level at which the retained savings should be consolidated into a fund. The preliminary recommendation is to establish a revolving efficiency loan fund at the regional level. Such a mechanism allows some consolidation of savings to fund larger projects, while maintaining a sense of facility "ownership" in that the funds will remain within the region. Establish revolving fund guidelines, administrative procedures, and tracking procedures. Issues include promoting facility involvement, designing low overhead administrative procedures, determining how fund oversight will be conducted within the existing management organization, and establishing performance measures to determine if the revolving fund concept results, in tangible, long-term savings to the Southwest Region FAA. Web-based tools can probably be applied as part of this implementation. Identify potential projects. Use tools, such as Federal Energy Decision Screening (FEDS), to identify cost-effective energy projects and estimated savings associated with those projects (PNNL 1996). Savings should be verified by estimating baseline and post-implementation energy consumption through metering. Alternatively, the baseline and savings can be estimated using the measures outlined in the U.S. Department of Energy's (DOE) Federal Energy Management Programk (FEW) workshop, "Successful Energy Savings Performance Contracting." As agency budgets continue to tighten and traditional sources of energy efficiency and water conservation investment funds dry up, the need for an investment-funding mechanism fueled by savings will continue to increase.
doi:10.2172/658303 fatcat:7yywq3xperanjdpmtotwhozdt4