Rating: Effective

Program Type: Direct Federal

Program Summary:

The Department of Defense (DoD) consumes more than three-fourths of the Federal
government's energy use. DoD spent $6.8 billion in 2001 on energy use, Including
fuels. The Energy Conservation Improvement Program (ECIP) is designed to improve
energy and water efficiency in existing DoD facilities to reduce energy costs.

1. The ECIP program scored well in the purpose and planning sections because the
purpose is clear and DoD has established realistic, attainable goals. DoD manages
this program well. It closely tracks program spending and results, and manages
future budget allocations to the Military Services accordingly. DoD has corrected past
obligation rate problems.

2. The program achieves results. From 1985 through 2001, energy consumption has
been reduced In DoD's buildings by 23% and in Industrial facilities by more than
20%. More Importantly, this reduction was achieved at a net savings. Over the life
of the program, ECIP projects have produced average savings of about four dollars
for every dollar invested.

3. Overall, the program scored well because it is a small, well-targeted program which
assists the Military Services and Defense Agencies.

In response to these findings, the Administration will:

1. Ensure that the program produces high returns on the Investment.

2. Support DoD's efforts to develop new metrics to provide additional information about the program's results, and will allow DoD to develop even more aggressive targets.

3. Propose that this program be funded at $70 million in 2004.

(Actual Performance) (Estimated Performance) (Projected Performance)

The actual EO 13123 Goal is to reduce consumption by 35 percent by 2010. DoD
is on track toward meeting that goal. Military installations spend more than $2.6 billion
annually to procure energy commodities. DoD's energy conservation strategy uses a
balanced approach of appropriated funding and private-sector investments to install
energy savings measures in facilities to reduce consumption and energy costs.
Cost savings pay for installing energy efficient equipment. Since 1985, the energy
consumed per square foot in DoD's buildings decreased by 25.4 percent (including credit
for renewable energy purchase) and we expect to meet the current Federal facility energy
consumption goal.

$88.0

Budget

DD

Form

1390

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For FY 2004. $8.960 million is programmed to provide the Secretary of Defense with the capability to respond to unforeseen facilities requirements. This amount is required to undertake urgent, unforeseen military construction, the deferral of which is deemed inconsistent with national security interests.

The authority for the construction of these facilities is provided by Section 2804 of 10 U.S.C. Both the Armed Services and Appropriations Committees of the House and Senate will be notified by the Secretary of Defense, or his designee, immediately upon reaching a decision to undertake construction under this authority.