Progress toward the net annual CFE goal will be measured by adding purchased CFE, on-site CFE, purchased energy attribute certificates (EACs), and grid supplied CFE. Agencies must match consumption with all eligible CFE strategies except grid supplied CFE by obtaining and retiring EACs.
- Purchased CFE is electricity purchased from a qualifying CFE generation source with the associated EACs, i.e., the original associated energy attributes have not been separately sold, transferred, or retired. Subject to agency contracting authority, agencies can purchase CFE and the associated EAC from a utility provider (including through a green tariff), retail service provider, energy supply contractor, or through a power purchase agreement (PPA).
- On-site CFE is electricity generated at a federal facility. To count CFE produced at a federal facility toward the net annual CFE requirement, an agency must obtain and retire the EACs sourced from the on-site CFE generation. If an agency directly produces from an on-site CFE source, but registration of EACs is not available or practicable, an agency may count generation toward the CFE requirement if the agency retains records verifying CFE generator operations (for unmetered systems) or energy production (for metered systems).
- Purchased EACs are EACs that are procured independently from the agency’s purchases of physical power, often referred to as “unbundled” EACs.
- Grid-supplied CFE is CFE delivered as part of default electricity service or the electricity grid mix from a utility or electric service provider (in contrast to purchased CFE, in which the CFE and associated EAC are specified contractually). To ensure standardized calculation of grid-supplied CFE across the Federal Government, DOE-FEMP must provide necessary data on grid-supplied CFE, by Emissions and Generation Resource Integrated Database (eGRID)11 subregion, using a residual mix methodology that subtracts CFE and unbundled EACs that third parties have purchased, retired or claimed. As market data regarding the CFE content of delivered electricity becomes available, CEQ and OMB may refine methods for calculating for grid supplied CFE.
E.O. 14057 sets the goal that agencies match facility electrical energy use on an hourly basis to achieve 50 percent 24/7 CFE by 2030.
CEQ and OMB will issue guidance on methodologies for 24/7 CFE accounting and requirements for reporting and measuring progress toward the 50 percent 24/7 CFE goal in FY 2023, or when sufficient accounting and data management systems for tracking and reporting have been developed.
Pending further guidance and to establish a foundation for meeting 24/7 CFE requirements, in FY 2022, agencies must report on their approach to producing or obtaining, including from electricity providers, their hourly facility consumption profiles by grid region. Beginning with the January 2023 Annual Energy Report, where agencies have the data, agencies must report the percentage of their electricity consumption by grid region on an hourly basis.