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March 8, 1994
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Energy Efficiency 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 this order:
Section 101. 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
(c) recommendations for the acquisition and installation of energy conservation
measures, including solar and other renewable energy and water conservation
(d) a strategy to implement the recommendations.
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 of Defense.
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
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 following:
(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
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 Coordination
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
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
Sec. 302. Energy and Water Surveys and Audits of Federal Facilities.
(a) Prioritization 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 facility
(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
(1) Implementation 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.
(2) Comprehensive audits of facilities performed within
the last 3 years may be considered current for the purposes of
(3) "No-cost" audits, such as those outlined in section
501(c) of this order, shall be utilized to the extent
(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
Sec. 303. Implementation of Energy Efficiency and Water Conservation
(a) Implementation 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
(b) Implementation 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
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 Government shall:
(1) design 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;
(2) ensure 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;
(3) establish 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; and
(4) utilize passive solar design and adopt active solar
technologies where they are cost-effective.
(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 lease.
(c) Government-Owned 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 Facilities.
(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
(b) Demonstrations 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
Sec. 308. Annual Reporting Requirements.
(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 Assistance.
(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:
(1) guidance explaining the relationship between water
use and energy consumption and the energy savings achieved through water
(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
(4) the capabilities and technologies available through the
national energy laboratories; and
(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
(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
(1) contact 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
(3) prepare a list of those utilities and make that list
available to all Federal property management agencies through the Task
(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
(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
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 can choose.
Sec. 505. Project Teams/Franchising.
(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 the project.
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
(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 requirements.
(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
(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
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
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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