Purchase solar systems for Government buildings whenever
they are competitive with conventional systems on a life-
cycle basis, including the "should-cost" feature when

appropriate. Such procurements should be made in a
manner to maximize their favorable impact on the develop-
ment of an industry and should be substantial enough to
initiate use of automated production techniques.

Install the solar systems on Government buildings.

Operate the solar equipped buildings through normal
facility management techniques (i.e., no special in-
strumentation or reporting requirements which would
increase operating cost).

The steps listed under Phase II, above, are sequential in nature for each category of buildings and solar applications, but will not be carried out simultaneously for all categories. The assessment will identify building-region-application combinations with varying levels of economic viability (or with varying levels of subsidy required). These will be rank-ordered from those categories that are immediately cost/beneficial without subsidy (e.g., perhaps water heating in Arizona barracks, competitive with electric resistance heating) to those requiring increasing levels of subsidy. Policy decisions will be required to determine which categories will be implemented at any given time.

The SEGBP has been under consideration for the past year, with substantial interagency coordination and FEA/ERDA contract support (see Section 4.1 below).

FEA, in conjunction with the appropriate agencies, is developing a detailed Implementation Plan. Work is proceeding toward completion of a draft Implementation Plan, detailed guidelines regarding the Project's objectives and goals, and, with special emphasis, analysis of the costs and benefits of the Project. The detailed Implementation Plan should be completed by August 31, 1976. Figure 1 presents the schedule for developing the Implementation Plan. The Plan (Phase I) will provide the

direction to implement immediately the first operational steps of the Project (widespread assessments and decisions to use solar technology where cost-competitive and not precluded by mission constraints). Also, the Plan will detail the costs and benefits of conducting the lifecycle cost analyses on a "should-cost" basis (i.e., costs anticipated when the system under consideration is produced in volume quantities substantial enough to initiate use of automated production techniques) and prepare recommendations for the appropriate level of Federal support.

The following contracts and interagency agreements will provide support to FEA in developing the final Implementation Plan.

4.1.1 Preliminary Development Support

The MITRE Corporation, McLean, Virginia, has supported FEA in developing this present document, including the Draft Implementation Plan (Attachment). MITRE is now supporting FEA in the preparation of a revised Draft Plan, incorporating agency comments and support contractor inputs.

4.1.2 Policy Section and Support

A Federal Contract Research Center, selected by competitive procurement, will assist the FEA to prepare the policy chapters of the final Implementation Plan, by preparing drafts and incorporating appropriate support contractor and agency inputs and comments; and will collaborate closely with the NASA effort (Section 4.1.3, below), by supplying policy materials for implementation chapters and reviewing NASA drafts, to ensure internal consistency in treatment of policy.

4.1.3 Implementation Section and Final Report

The National Aeronautics and Space Administration, through interagency agreement with FEA, will draft the implementation chapters of the Plan, incorporating appropriate support contractor and agency inputs, and will produce a draft Plan incorporating those chapters and the policy chapters (Section 4.1.2, above) and will produce a final version of the Plan responsive to agency comments.

4.1.4 Analysis of Impacts

Arthur D. Little, Inc., Cambridge, Massachusetts, will provide inputs for the Implementation Plan, including (1) impacts of SEGBP commercialization strategy, relationship to other commercialization strategies, and solar heating and cooling energy and economic projections, and (2) life-cycle cost analyses, and industry-market infrastructure analysis.

4.1.5 Industry-Market Infrastructure Analysis

InterTechnology Corporation, Warrenton, Virginia, will provide inputs for the Implementation Plan, including (1) identify and descriptions of each segment of the solar heating and cooling industry infrastructure, requirements and opportunities of each segment (financial opportunities and costs of using automated production techniques, etc.), cost breaks within each segment; requirements of overall infrastructure; and interrelationship between various segments; (2) "should-cost" analysis; draft procedures for using "should costs" in life cycle cost analysis; and (3) review of life-cycle cost analyses supplied by the Government Technical Representative.

4.1.6 Procurement Arrangements

Don Sowle Associates, Arlington, Virginia, will provide inputs to the Implementation Plan, including (1) development and analysis of innovative procurement strategies to stimulate development of industry infrastructure and address various small-business-related problems; (2) discussion of certain problems and opportunities associated with actual implementation of the Project with each construction agency including (a) logistics of multiyear, aggregated collector procurement, etc., (b) analysis of various funding authorization frameworks such as fenced funds, etc., and (c) analysis of current practices regarding procurement decisions--particularly assessment methods such as lifecycle cost assessments, etc.; and (4) analysis of existing statutory and regulatory requirements for actual implementation of the Project.

4.2 Agency Support

The vigorous cooperation of all the Federal agencies involved in building management, or in the development of energy technology or policy, is essential if the SEGBP is to fulfill its goals. This requires that the Plan realistically reflect the needs and operating conditions of the agencies, and thus requires that the agencies participate fully in the development of the Plan. Each agency is expected

to:

(a) Carefully review the present document and make suggestions for
changes that will make the Plan more responsive to agency
needs and more compatible with agency operating conditions.

(b)

(c)

Raise policy problems insufficiently covered, and implementation procedures not included in the drafts of the Plan.

Contribute descriptions of agency activities or plans relevant to the SEGBP.

(d) Review subsequent draft Plans and suggest further revisions as appropriate.

Specific support sought from agencies that have building construction responsibilities, agencies involved in RD&D relevant to solar heating and cooling, and agencies having related policy responsibilities is presented in Figure 2, and discussed below. It is particularly important that the agencies cited analyze those requirements carefully, and participate fully in developing them in final form.

4.2.1 Agencies That Own and Manage Buildings

Agencies such as DOD, GSA, USPS, VA, etc., that own and manage buildings should develop estimates of the number and classification of buildings under their control that could represent potential markets for solar heating and hot water systems. During Phase I, Implementation Plan Development, this information should be supplied by the managing agencies from data that exist within the agency at the present time. It is intended that substantial work to develop new data is to be avoided and certainly detailed buildings surveys or assessments are not required. The objective of Phase I data collection is to provide a reasonable estimate of market size for overall planning purposes.

The essential data required during Phase I should include:

(1)

Hot water requirements in gallons per year, by state