Glossary
Government and public sector

What is EISA Section 432 and the Energy Act of 2020?

Definition

EISA Section 432, codified at 42 U.S.C. 8253(f), requires US federal agencies to evaluate, improve and benchmark the energy and water use of their largest facilities. The Energy Act of 2020 tightened it.

Which federal facilities are covered

Each agency designates covered facilities that together account for at least 75 percent of its total facility energy use, per DOE's Federal Energy Management Program (FEMP). Energy service companies and auditors working on those sites follow the same rules.

Cycle, deadlines and reporting

Every covered facility needs a comprehensive energy and water evaluation every four years. Agencies log progress, including annual benchmarking of metered buildings, in FEMP's EISA 432 Compliance Tracking System.

The Energy Act of 2020, signed on 27 December 2020, requires each life cycle cost-effective measure found in an evaluation to be implemented within two years of the evaluation's completion, and requires performance contracting for at least 50 percent of identified measures. DOE applies both rules to evaluations completed on or after that date.

The same act set 1 October 2022 as the date by which federal buildings had to be water metered, with advanced meters giving at least daily data.

What Aqueduct tracks inside the two-year window

An evaluation is a snapshot taken once in four years. Aqueduct keeps a weather-normalized baseline per covered building, regressed on cooling and heating degree days from 6 to 12 months of uploaded bills, so an energy manager can see whether a measure installed after the evaluation is actually holding. Daily water reads from sub-meters sit in the same view, ready to export for the tracking system.

Questions

EISA Section 432 and the Energy Act of 2020: common questions

EISA Section 432 is the federal law behind energy and water management at large federal facilities. It sets a four-year evaluation cycle, annual benchmarking and project follow-up, administered through DOE's Federal Energy Management Program. Federal water metering rules are covered on the water outcomes page.

DOE says they fall under the earlier statute and do not count toward the two-year or performance contracting rules unless the Compliance Tracking System record is updated with a new completion date before contract award.

No. Section 432 binds federal agencies only. Cities and states set their own duties through benchmarking ordinances and building performance standards, which often borrow the same evaluation and benchmarking ideas.

Because half of identified measures must go through performance contracting, a large share of evaluation findings ends up financed by contracts that carry their own savings verification duties, described under ESPC and UESC.

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