Audit Report: OAS-M-15-03

The Department of Energy's Participation in Energy Incentive Programs

Office of Inspector General

April 8, 2015
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April 8, 2015

The Department of Energy's Participation in Energy Incentive Programs

Designed to offset energy costs, energy incentive programs are typically offered by state agencies and utility providers.  Federal entities are eligible for a variety of incentives, including incentives for energy-efficient, new construction and energy conservation measures in existing facilities.  According to the National Energy Conservation Policy Act (Act), as amended in 2005, Federal agencies are directed to take maximum advantage of financial incentives and other forms of financing to reduce direct energy costs to the Government.

Each Department of Energy (Department) site is responsible for implementing the requirements of the Act and managing its participation in energy incentive programs.  Although available incentive programs vary from site to site, numerous incentive opportunities exist.

Our review of seven Department sites found that they had generally participated in available energy incentive programs.  For example, since 2010, the Thomas Jefferson National Accelerator Facility and the Fermi National Accelerator Laboratory had received about $820,000 and $1.8 million, respectively, in energy incentives for participation in curtailment programs offered by their utility providers.  Additionally, since 2010, Argonne National Laboratory had received more than $350,000 in incentive funding for conservation projects completed at the site.

Two of the seven sites, however, had not taken full advantage of available incentives because personnel were not consistently focused on or aware of available energy incentive programs.  By ensuring that sites are participating in available incentive programs, the Department can maximize energy cost savings.

Topic: Management & Administration