Report No. 2008-25
April 2008
Complete Audit Report
Missouri Is Making Efforts to Improve Energy Efficiency, But More Could Be Done
The Department of Natural Resources (DNR) and the Office of Administration (OA) are responsible for implementing the state's energy efficiency programs that impact all state agencies and provide assistance to local governments. Our audit objectives included (1) evaluating program requirements, costs, and results; (2) evaluating how Missouri's programs compare to those in place in other states; and (3) identifying improvements or changes needed in laws that could enhance the state's program efforts.
Not all state universities meeting vehicle purchase requirement
In fiscal year 2006, 4 of the applicable 13 state entities subject to the state's vehicle fleet law did not purchase the required percentage of alternative fuel vehicles. State universities represented all of the non-compliant entities. State law requires 70 percent of all new vehicle purchases by the state to be alternative fuel vehicles starting in 2008. Prior to 2008, the requirement had been 50 percent. (See page 7)
Alternative fuel vehicles placed in areas with no alternative fuel available
Our analysis of fleet vehicle locations at the end of 2007 compared to the location of E85 fueling stations showed 29 percent of E85 state fleet flex-fuel vehicles are located in areas where E85 is not readily available. Some agency officials told us they could not easily shift vehicles between divisions because of appropriation and division limitations. (See page 8)
State building energy efficiency improved
Missouri has similar energy efficiency programs to other states but differs in that Missouri's programs are part of OA practices and not codified by state law or Executive Order. Twenty-seven states have mandatory goals to reduce energy consumption within state office buildings. Missouri has a goal to reduce energy use by 15 percent, but the goal is not mandatory. Energy savings contracts have been implemented for 14 million square feet of the total 20 million square feet of state-owned office space. OA projected annual saving of $15.5 million on 5 completed or nearly complete improvement projects. (See page 10)
State not requiring Energy Star® for procurement
Missouri does not require the purchase of Energy Star® rated equipment or appliances by state agencies resulting in potentially higher energy costs. Twenty-seven other states have laws that require or encourage the use of Energy Star® rated equipment. An OA official said it is up to agency officials if they want to request Energy Star® rated items as part of their purchasing requirements. However, the official said Energy Star® equipment would have to be within comparable prices of other available products and if more expensive would likely not be chosen. Other states evaluate the life-cycle costs of the Energy Star® equipment when evaluating purchasing decisions. (See page 12)
Missouri's renewable resource utility law lags behind other states
Missouri does not require utility companies to produce energy from renewable resources. Instead, a 2007 state law only encourages Missouri utility companies to make a good faith effort to generate sufficient energy from renewable technologies. As of August 2007, 25 states including Minnesota, Illinois, Wisconsin, Texas, California, and Vermont require their utility companies to meet similar goals rather than just make an effort to meet them. (See page 13)
Loan program database needs improvement
DNR's database for its local government Energy Loan program has inconsistent data. DNR personnel told us the database records did not always match loan files because personnel had not consistently entered loan origination fees and construction interest into the database. (See page 13)
Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov
