Objective

To assess the extent of implementation of the three recommendations included in our initial audit report, Compliance With Executive Order 88: Energy Efficiency of State Buildings (2018-S-62).

About the Program

Executive Order 88 (EO 88), issued on December 28, 2012, is the centerpiece of BuildSmart NY – the State’s program for pursuing energy efficiency in certain New York State government buildings while advancing economic growth, environmental protection, and energy security in the State. EO 88 is intended to accomplish broader State policy goals, such as reducing State government utility expenses, fostering investment in smart buildings, protecting the environment and public health by reducing the emissions of greenhouse gases and other pollutants, and supporting economic growth by creating green jobs and stimulating the marketplace for clean energy and energy-efficient products and services.

EO 88 mandated a 20 percent collective improvement in the energy performance of all covered agencies and authorities (collectively referred to as Affected State Entities, or ASEs) by April 1, 2020. This reduction is calculated from a 2010-11 State fiscal year baseline. The New York Power Authority (NYPA), administrator of EO 88, coordinates and monitors ASEs’ compliance and performance toward the collective 20 percent target.

OGS’ Division of Utilities Management (Division) provides support and assistance to the statewide regional buildings and is an advisor to NYPA. The Division also maintains all heating, ventilation, and air conditioning systems and all auxiliary mechanical equipment associated with approximately 14.5 million square feet of OGS-owned office space in the Capital Region. OGS is responsible for 19 buildings and two campuses. Of the 19 buildings, 11 are exempt from EO 88 because of their Energy Star designation. OGS currently has six employees whose job duties relate to EO 88. Employees are assigned to data management, reporting, and energy efficiency projects.

Our initial report, covering the period April 1, 2014 to May 13, 2019, examined whether OGS had developed targets and plans to effectively meet its contributions towards EO 88 and complied with EO 88 guidelines. Our audit found OGS generally had developed targets and plans to contribute toward EO 88 and complied with the guidelines. However, we found OGS had relied on one capital project, Sheridan Avenue Project (SAP), to provide the majority of its energy savings. The SAP was met with criticism from environmental and community advocates, and its implementation was in doubt. If this project failed to move forward, it was unlikely that OGS would meet its goal of reducing energy usage by 20 percent.

The three recommendations in our initial audit report addressed the need for OGS to develop a contingency plan to replace the SAP project and to continue developing energy-saving capital projects to contribute toward the collective 20 percent energy reduction of ASEs.

Key Finding

OGS has made significant progress in correcting the problems we identified in the initial report. All three recommendations have been implemented.