March 8, 1994
- - - - - - -
and Water Conservation At Federal Facilities
By the authority vested
in me as President by the Constitution and the laws of the United
States of America, including the Energy Policy and Conservation
Act (Public Law 94-163, 89 Stat. 871, 42 U.S.C. 6201 et seq.) as
amended by the Energy Policy Act of 1992 (Public Law 102-486, 106
Stat. 2776) and section 301 of title 3, United States Code, I hereby
order as follows:
Part 1 - Definitions
For the purposes of
The "Act" means the Federal energy management provisions of the
Energy Policy and Conservation Act, as amended by the Energy Policy
Act of 1992.
Sec. 102. The
term "comprehensive facility audit" means a survey of a building
or facility that provides sufficiently detailed information to allow
an agency to enter into energy or water savings performance contracts
or to invite inspection and bids by private upgrade specialists
for direct agency-funded energy or water efficiency investments.
It shall include information such as the following:
(a) the type, size,
energy use, and performance of the major energy using systems and
their interaction with the building envelope, the climate and weather
influences, usage patterns, and related environmental concerns;
(b) appropriate energy
and water conservation maintenance and operating procedures;
for the acquisition and installation of energy conservation measures,
including solar and other renewable energy and water conservation
(d) a strategy to implement
Sec. 103. The
term "cost-effective" means providing a payback period of less than
10 years, as determined by using the methods and procedures developed
pursuant to 42 U.S.C. 8254 and 10 CFR 436.
Sec. 104. The
term "demand side management" refers to utility-sponsored programs
that increase energy efficiency and water conservation or the management
of demand. The term includes load management techniques.
Sec. 105. The
term "energy savings performance contracts" means contracts that
provide for the performance of services for the audit, design, acquisition,
installation, testing, operation, and, where appropriate, maintenance
and repair, of an identified energy or water conservation measure
or series of measures at one or more locations.
Sec. 106. The
term "agency" means an executive agency as defined in 5 U.S.C. 105.
For the purpose of this order, military departments, as defined
in 5 U.S.C. 102, are covered under the auspices of the Department
Sec. 107. The
term "Federal building" means any individual building, structure,
or part thereof, including the associated energy or water-consuming
support systems, which is constructed, renovated, or purchased in
whole or in part for use by the Federal Government and which consumes
energy or water. In any provision of this order, the term "Federal
building" shall also include any building leased in whole or in
part for use by the Federal Government where the term of the lease
exceeds 5 years and the lease does not prohibit implementation of
the provision in question.
Sec. 108. The
term "Federal facility" means any building or collection of buildings,
grounds, or structure, as well as any fixture or part thereof, which
is owned by the United States or any Federal agency or which is
held by the United States or any Federal agency under a lease-acquisition
agreement under which the United States or a Federal agency will
receive fee simple title under the terms of such agreement without
further negotiation. In any provision of this order, the term "Federal
facility" shall also include any building leased in whole or in
part for use by the Federal Government where the term of the lease
exceeds 5 years and the lease does not prohibit implementation of
the provision in question.
Sec. 109. The
term "franchising" means that an agency would provide the services
of its employees to other agencies on a reimbursable basis.
Sec. 110. The
term "gainsharing" refers to incentive systems that allocate some
portion of savings resulting from gains in productivity to the workers
who produce those gains.
Sec. 111. The
term "industrial facilities" means any fixed equipment, building,
or complex for the production of goods that uses large amounts of
capital equipment in connection with, or as part of, any process
or system, and within which the majority of energy use is not devoted
to the heating, cooling, lighting, ventilation, or to service the
hot water energy load requirements of the building.
Sec. 112. The
term "life cycle cost" refers to life cycle cost calculated pursuant
to the methodology established by 10 CFR 436.11.
Sec. 113. The
term "prioritization survey" means a rapid assessment that will
be used by an agency to identify those facilities with the highest
priority projects based on the degree of cost effectiveness and
to schedule comprehensive facility audits prior to project implementation.
The prioritization survey shall include information such as the
(a) the type, size,
energy and water use levels of the major energy and water using
systems in place at the facility; and
(b) the need, if any,
for acquisition and installation of cost-effective energy and water
conservation measures, including solar and other renewable energy
Sec. 114. The
term "shared energy savings contract" refers to a contract under
which the contractor incurs the cost of implementing energy savings
measures (including, but not limited to, performing the audit, designing
the project, acquiring and installing equipment, training personnel,
and operating and maintaining equipment) and in exchange for providing
these services, the contractor gains a share of any energy cost
savings directly resulting from implementation of such measures
during the term of the contract.
Sec. 115. The
term "solar and other renewable energy sources" includes, but is
not limited to, agriculture and urban waste, geothermal energy,
solar energy, and wind energy.
Sec. 116. The
term "utility" means any person, State, or agency that is engaged
in the business of producing or selling electricity or engaged in
the local distribution of natural gas or water to any ultimate consumer.
Part 2 - Interagency
Sec. 201. Interagency
Coordination. The Department of Energy ("DOE") shall take the
lead in implementing this order through the Federal Energy Management
Program ("FEMP"). The Interagency Energy Policy Committee ("656
Committee") and the Interagency Energy Management Task Force ("Task
Force") shall serve as forums to coordinate issues involved in implementing
energy efficiency, water conservation, and solar and other renewable
energy in the Federal sector.
Part 3 - Agency Goals
and Reporting Requirements for Energy and Water Efficiency in Federal
Sec. 301. Energy
Consumption Reduction Goals.
(a) Each agency shall
develop and implement a program with the intent of reducing energy
consumption by 30 percent by the year 2005, based on energy consumption
per-gross-square-foot of its buildings in use, to the extent that
these measures are cost- effective. The 30 percent reductions shall
be measured relative to the agency's 1985 energy use. Each agency's
implementation program shall be designed to speed the introduction
of cost- effective, energy-efficient technologies into Federal facilities,
and to meet the goals and requirements of the Act and this order.
(b) Each agency shall
develop and implement a program for its industrial facilities in
the aggregate with the intent of increasing energy efficiency by
at least 20 percent by the year 2005 as compared to the 1990 benchmark,
to the extent these measures are cost-effective, and shall implement
all cost- effective water conservation projects. DOE, in coordination
with the 656 Committee, shall establish definitions and appropriate
indicators of energy and water efficiency, and energy and water
consumption and costs, in Federal industrial facilities for the
purpose of establishing a base year of 1990.
Sec. 302. Energy
and Water Surveys and Audits of Federal Facilities.
Survey. Each agency responsible for managing Federal facilities
shall conduct a prioritization survey, within 18 months of the date
of this order, on each of the facilities the agency manages. The
surveys shall be used to establish priorities for conducting comprehensive
(b) Comprehensive Facility
Audits. Each agency shall develop and begin implementing a 10-year
plan to conduct or obtain comprehensive facility audits, based on
prioritization surveys performed under section 302(a) of this order.
of the plan shall ensure that comprehensive facility audits of approximately
10 percent of the agency's facilities are completed each year. Agencies
responsible for managing less than 100 Federal facilities shall
plan and execute approximately 10 comprehensive facility audits
per year until all facilities have been audited.
audits of facilities performed within the last 3 years may be considered
current for the purposes of implementation.
audits, such as those outlined in section 501(c) of this order,
shall be utilized to the extent practicable.
(c) Exempt Facilities.
Because the mission within facilities exempt from the energy and
water reduction requirements under the Act may not allow energy
efficiency and water conservation in certain operations, actions
shall be taken to reduce all other energy and water waste using
the procedures described in the Act and this order. Each agency
shall develop and implement a plan to improve energy and water efficiency
in such exempt facilities. The prioritization surveys are intended
to allow agencies to refine their designation of facilities as "exempt"
or "industrial," so that only individual buildings in which industrial
or energy-intensive operations are conducted remain designated as
"exempt" or "industrial." Within 21 months of the date of this order,
each agency shall report to FEMP and to the Office of Management
and Budget ("OMB") the redesignations that the agency is making
as a result of the prioritization surveys. Agencies may seek exemptions
for their facilities pursuant to the Energy Policy and Conservation
Act, as amended.
(d) Leased Facilities.
Agencies shall conduct surveys and audits of leased facilities to
the extent practicable and to the extent that the recommendations
of such surveys and audits could be implemented under the terms
of the lease.
Sec. 303. Implementation
of Energy Efficiency and Water Conservation Projects.
of New Audit Recommendations. Within 1 year of the date of this
order, agencies shall identify, based on preliminary recommendations
from the prioritization surveys required under section 302 of this
order, high priority facilities to audit and shall complete the
first 10 percent of the required comprehensive facility audits.
Within 180 days of the completion of the comprehensive facility
audit of each facility, agencies shall begin implementing cost-effective
recommendations for installation of energy efficiency, water conservation,
and renewable energy technologies for that facility.
of Existing Audits. Within 180 days of the date of this order, agencies
shall begin to implement cost-effective recommendations from comprehensive
audits of facilities performed within the past 3 years, for installation
of energy efficiency, water conservation, and renewable energy technologies.
Sec. 304. Solar
and Other Renewable Energy. The goal of the Federal Government
is to significantly increase the use of solar and other renewable
energy sources. DOE shall develop a program for achieving this goal
cost-effectively and, within 210 days of the date of this order,
submit the program to the 656 Committee for review. DOE shall lead
the effort to assist agencies in meeting this goal.
Sec. 305. Minimization
of Petroleum-Based Fuel Use in Federal Buildings and Facilities.
All agencies shall develop and implement programs to reduce the
use of petroleum in their buildings and facilities by switching
to a less-polluting and non- petroleum-based energy source, such
as natural gas or solar and other renewable energy sources. Where
alternative fuels are not practical or cost-effective, agencies
shall strive to improve the efficiency with which they use the petroleum.
Each agency shall survey its buildings and facilities that utilize
petroleum-based fuel systems to determine where the potential for
a dual-fuel capability exists and shall provide dual-fuel capability
where cost-effective and practicable.
Sec. 306. New Space.
(a) New Federal Facility
Construction. Each agency involved in the construction of a new
facility that is to be either owned by or leased to the Federal
and construct such facility to minimize the life cycle cost of the
facility by utilizing energy efficiency, water conservation, or
solar or other renewable energy technologies;
that the design and construction of facilities meet or exceed the
energy performance standards applicable to Federal residential or
commercial buildings as set forth in 10 CFR 435, local building
standards, or a Btu-per- gross-square-foot ceiling as determined
by the Task Force within 120 days of the date of this order, whichever
will result in a lower life cycle cost over the life of the facility;
and implement, within 270 days of the date of this order, a facility
commissioning program that will ensure that the construction of
such facilities meets the requirements outlined in this section
before the facility is accepted into the Federal facility inventory;
passive solar design and adopt active solar technologies where they
(b) New Leases For
Existing Facilities. To the extent practicable and permitted by
law, agencies entering into leases, including the renegotiation
or extension of existing leases, shall identify the energy and water
consumption of those facilities and seek to incorporate provisions
into each lease that minimize the cost of energy and water under
a life cycle analysis, while maintaining or improving occupant health
and safety. These requirements may include renovation of proposed
space prior to or within the first year of each lease. Responsible
agencies shall seek to negotiate the cost of the lease, taking into
account the reduced energy and water costs during the term of the
Contractor-Operated Facilities. All Government-owned contractor-operated
facilities shall comply with the goals and requirements of this
order. Energy and water management goals shall be incorporated into
their management contracts.
Sec. 307. Showcase
(a) New Building Showcases.
When an agency constructs at least five buildings in a year, it
shall designate at least one building, at the earliest stage of
development, to be a showcase highlighting advanced technologies
and practices for energy efficiency, water conservation, or use
of solar and other renewable energy.
in Existing Facilities. Each agency shall designate one of its major
buildings to become a showcase to highlight energy or water efficiency
and also shall attempt to incorporate cogeneration, solar and other
renewable energy technologies, and indoor air quality improvements.
Selection of such buildings shall be based on considerations such
as the level of nonfederal visitors, historic significance, and
the likelihood that visitors will learn from displays and implement
similar projects. Within 180 days of the date of this order, each
agency shall develop and implement plans and work in cooperation
with DOE and, where appropriate, in consultation with the General
Services Administration ("GSA"), the Environmental Protection Agency
("EPA"), and other appropriate agencies, to determine the most effective
and cost-effective strategies to implement these demonstrations.
Sec. 308. Annual
(a) As required under
the Act, the head of each agency shall report annually to the Secretary
of Energy and OMB, in a format specified by the Secretary and OMB
after consulting with the 656 Committee. The report shall describe
the agency's progress in achieving the goals of this order.
(b) The Secretary of
Energy shall report to the President and the Congress annually on
the implementation of this order. The report should provide information
on energy and water use and cost data and shall provide the greatest
level of detail practicable for buildings and facilities by energy
Sec. 309. Report
on Full Fuel Cycle Analysis. DOE shall prepare a report on the
issues involved in instituting life cycle analysis for Federal energy
and product purchases that address the full fuel cycle costs, including
issues concerning energy exploration, development, processing, transportation,
storage, distribution, consumption, and disposal, and related impacts
on the environment. The report shall examine methods for conducting
life cycle analysis and implementing such analysis in the Federal
sector and shall make appropriate recommendations. The report shall
be forwarded to the President for review.
Sec. 310. Agency
Accountability. One year after the date of this order, and every
2 years thereafter, the President's Management Council shall report
to the President about efforts and actions by agencies to meet the
requirements of this order. In addition, each agency head shall
designate a senior official, at the Assistant Secretary level or
above, to be responsible for achieving the requirements of this
order and shall appoint such official to the 656 Committee. The
656 Committee shall also work to ensure the implementation of this
order. The agency senior official and the 656 Committee shall coordinate
implementation with the Federal Environmental Executive and Agency
Environmental Executives established under Executive Order No. 12873.
Part 4 - Use of Innovative
Financing and Contractual Mechanisms
Sec. 401. Financing
Mechanisms. In addition to available appropriations, agencies
shall utilize innovative financing and contractual mechanisms, including,
but not limited to, utility demand side management programs, shared
energy savings contracts, and energy savings performance contracts,
to meet the goals and requirements of the Act and this order.
Sec. 402. Workshop
for Agencies. Within a reasonable time of the date of this order,
the Director of OMB, or his or her designee, and the Task Force
shall host a workshop for agencies regarding financing and contracting
for energy efficiency, water efficiency, and renewable technology
projects. Based on the results of that meeting, the Administrator,
Office of Procurement Policy ("OFPP"), shall assist the Administrator
of General Services and the Secretary of Energy in eliminating unnecessary
regulatory and procedural barriers that slow the utilization of
such audit, financing, and contractual mechanisms or complicate
their use. All actions that are cost-effective shall be implemented
through the process required in section 403 of this order.
Sec. 403. Elimination
of Barriers. Agency heads shall work with their procurement
officials to identify and eliminate internal regulations, procedures,
or other barriers to implementation of the Act and this order. DOE
shall develop a model set of recommendations that will be forwarded
to the Administrator of OFPP in order to assist agencies in eliminating
the identified barriers.
PART 5 - TECHNICAL
ASSISTANCE, INCENTIVES, AND AWARENESS
Sec. 501. Technical
(a) To assist Federal
energy managers in implementing energy efficiency and water conservation
projects, DOE shall, within 180 days of the date of this order,
develop and make available through the Task Force:
explaining the relationship between water use and energy consumption
and the energy savings achieved through water conservation measures;
(2) a model
solicitation and implementation guide for innovative funding mechanisms
referenced in section 401 of this order;
(3) a national
list of companies providing water services in addition to the list
of qualified energy service companies as required by the Act;
(4) the capabilities
and technologies available through the national energy laboratories;
(5) an annually-updated
guidance manual for Federal energy managers that includes, at a
minimum, new sample contracts or contract provisions, position descriptions,
case studies, recent guidance, and success stories.
(b) The Secretary of
Energy, in coordination with the Administrator of General Services,
shall make available through the Task Force, within 180 days of
the date of this order:
(1) the national
list of qualified water and energy efficiency contractors for inclusion
on a Federal schedule; and
(2) a model
provision on energy efficiency and water conservation, for inclusion
in new leasing contracts.
(c) Within 180 days
of the date of this order, the Administrator of General Services
each utility that has an area-wide contract with GSA to determine
which of those utilities will perform "no-cost" audits for energy
efficiency and water conservation and potential solar and other
renewable energy sources that comply with Federal life cycle costing
procedures set forth in Subpart A, 10 CFR 436;
(2) for each
energy and water utility serving the Federal Government, determine
which of those utilities offers demand-side management services
and incentives and obtain a list and description of those services
and incentives; and
a list of those utilities and make that list available to all Federal
property management agencies through the Task Force.
(d) Within 18 months
of the date of this order, the Administrator of General Services,
in consultation with the Secretary of Energy, shall develop procurement
techniques, methods, and contracts to speed the purchase and installation
of energy, water, and renewable energy technologies in Federal facilities.
Such techniques, methods, and contracts shall be designed to utilize
both direct funding by the user agency, including energy savings
performance contracting, and utility rebates. To the extent permitted
by law, the Administrator of OFPP shall assist the Administrator
of General Services and the Secretary of Energy by eliminating unnecessary
regulatory and procedural barriers that would slow the implementation
of such methods, techniques, or contracts or complicate their use.
(e) Agencies are encouraged
to seek technical assistance from DOE to develop and implement solar
and other renewable energy projects.
(f) DOE shall conduct
appropriate training for Federal agencies to assist them in identifying
and funding cost-effective projects. This training shall include
providing software and other technical tools to audit facilities
and identify opportunities. To the extent that resources are available,
DOE shall work with utilities and the private sector to encourage
their participation in Federal sector programs.
(g) DOE, in coordination
with EPA, GSA, and the Department of Defense ("DOD"), shall develop
technical assistance services for agencies to help identify energy
efficiency, water conservation, indoor air quality, solar and other
renewable energy projects, new building design, fuel switching,
and life cycle cost analysis. These services shall include, at a
minimum, a help line, computer bulletin board, information and education
materials, and project tracking methods. Agencies shall identify
technical assistance needed to meet the goals and requirements of
the Act and this order and seek such assistance from DOE.
(h) The Secretary of
Energy and the Administrator of General Services shall explore ways
to stimulate energy efficiency, water conservation, and use of solar
and other renewable energy sources and shall study options such
as new building performance guidelines, life cycle value engineering,
and designer/builder incentives such as award fees. The studies
shall be completed within 270 days of the date of this order. The
OFPP will issue guidance to agencies on life cycle value engineering
within 6 months of the completion of the studies.
(i) The Secretary of
Energy and the Administrator of General Services shall develop and
distribute through the Task Force a model building commissioning
program within 270 days of the date of this order.
(j) The lists, guidelines,
and services in this section of the order shall be updated periodically.
Sec. 502. Retention
of Savings and Rebates.
(a) Within a reasonable
time after the date of this order, the Director of OMB, along with
the Secretary of Energy, the Secretary of Defense, and the Administrator
of General Services, to the extent practicable and permitted by
law, shall develop guidelines and implement procedures to allow
agencies, in fiscal year 1995 and beyond, to retain utility rebates
and incentives received by the agency and savings from energy efficiency
and water conservation efforts as provided in section 152 of the
Energy Policy Act of 1992 and 10 U.S.C. 2865 and 2866.
Sec. 503. Performance
Evaluations. To recognize the responsibilities of facility managers,
designers, energy managers, their superiors, and, to the extent
practicable and appropriate, others critical to the implementation
of this order, heads of agencies shall include successful implementation
of energy efficiency, water conservation, and solar and other renewable
energy projects in their position descriptions and performance evaluations.
Sec. 504. Incentive
Awards. Agencies are encouraged to review employee incentive
programs to ensure that such programs appropriately reward exceptional
performance in implementing the Act and this order. Such awards
may include monetary incentives such as Quality Step Increases,
leave time awards and productivity gainsharing, and nonmonetary
and honor awards such as increased authority, additional resources,
and a series of options from which employees or teams of employees
Sec. 505. Project
(a) Agencies are encouraged
to establish Energy Efficiency and Environmental Project Teams ("Project
Teams") to implement energy efficiency, water conservation, and
solar and other renewable energy projects within their respective
agencies. DOE shall develop a program to train and support the Project
Teams, which should have particular expertise in innovative financing,
including shared energy savings and energy savings performance contracting.
The purpose of the program is to enable project teams to implement
projects quickly and effectively in their own agencies.
(b) Agencies are encouraged
to franchise the services of their Project Teams. The ability to
access the services of other agencies' teams will foster excellence
in project implementation through competition among service providers,
while providing an alternative method to meet or exceed the requirements
of the Act and this order for agencies that are unable to devote
sufficient personnel to implement projects.
Sec. 506. FEMP Account
Managers. FEMP shall develop a customer service program and
assign account managers to agencies or regions so that each project
may have a designated account manager. When requested by an agency,
the account manager shall start at the audit phase and follow a
project through commissioning, evaluation, and reporting. The account
manager shall provide technical assistance and shall have responsibility
to see that all actions possible are taken to ensure success of
Sec. 507. Procurement
of Energy Efficient Products by Federal Agencies.
(a) "Best Practice"
Technologies. Agencies shall purchase energy-efficient products
in accordance with the guidelines issued by OMB, in consultation
with the Defense Logistics Agency ("DLA"), DOE, and GSA, under section
161 of the Energy Policy Act of 1992. The guidelines shall include
listings of energy-efficient products and practices used in the
Federal Government. At a minimum, OMB shall update the listings
annually. DLA, DOE, and GSA shall update the portions of the listings
for which they have responsibility as new products become available
and conditions change.
(1) Each agency
shall purchase products listed as energy-efficient in the guidelines
whenever practicable, and whenever they meet the agency's specific
performance requirements and are cost-effective. Each agency shall
institute mechanisms to set targets and measure progress.
(2) To further
encourage a market for highly- energy-efficient products, each agency
shall increase, to the extent practicable and cost-effective, purchases
of products that are in the upper 25 percent of energy efficiency
for all similar products, or products that are at least 10 percent
more efficient than the minimum level that meets Federal standards.
This requirement shall apply wherever such information is available,
either through Federal or industry-approved testing and rating procedures.
(3) GSA and
DLA, in consultation with DOE, other agencies, States, and industry
and other nongovernment organizations, shall provide all agencies
with information on specific products that meet the energy-efficiency
criteria of this section. Product information should be made available
in both printed and electronic formats.
(b) Federal Market
Opportunities. DOE, after consultation with industry, utilities,
and other interested parties, shall identify advanced energy-efficient
and water-conserving technologies that are technically and commercially
feasible but not yet available on the open market. These technologies
may include, but are not limited to, the advanced appliance technologies
referenced in section 127 of the Energy Policy Act of 1992. DOE,
in cooperation with OMB, GSA, DOD, the National Institute of Standards
and Technology ("NIST"), and EPA, shall issue a "Federal Procurement
Challenge" inviting each Federal agency to commit a specified fraction
of their purchases within a given time period to advanced, high-efficiency
models of products, provided that these anticipated future products
can meet the agency's energy performance, functionality, and cost
(c) Accelerated Retirement
of Inefficient Equipment. DOE, in consultation with GSA and other
agencies, shall establish guidelines for the cost-effective early
retirement of older, inefficient appliances and other energy and
water-using equipment in Federal facilities. Such guidelines may
take into account significant improvements in energy efficiency
and water conservation, opportunities to down-size or otherwise
optimize the replacement equipment as a result of associated improvements
in building envelope, system, or industrial process efficiency and
reductions in pollutant emissions, use of chlorofluorocarbons, and
other environmental improvements.
(d) Review of Barriers.
Each agency shall review and revise Federal or military specifications,
product descriptions, and standards to eliminate barriers to, and
encourage Federal procurement of, products that are energy-efficient
or water conserving.
Part 6 - Waivers
Sec. 601. Waivers.
Each agency may determine whether certain requirements in this order
are inconsistent with the mission of the agency and seek a waiver
of the provision from the Secretary of Energy. Any waivers authorized
by the Secretary of Energy shall be included in the annual report
on Federal energy management required under the Act.
Part 7 - Revocation,
Limitation, and Implementation
Sec. 701. Executive
Order No. 12759, of April 17, 1991, is hereby revoked, except that
sections 3, 9, and 10 of that order shall remain effective and shall
not be revoked.
Sec. 702. This
order is intended only to improve the internal management of the
executive branch and is not intended to, and does not create, any
right to administrative or judicial review, or any other right or
benefit or trust responsibility, substantive or procedural, enforceable
by a party against the United States, its agencies or instrumentalities,
its officers or employees, or any other person.
Sec. 703. This
order shall be effective immediately.
WILLIAM J. CLINTON
THE WHITE HOUSE,
March 8, 1994.
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