[Federal Register Volume 59, Number 47 (Thursday, March 10, 1994)]
[Presidential Documents]
[Pages 11463-11471]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5834]


[[Page Unknown]]

[Federal Register: March 10, 1994]


  
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Part XIII





The President





_______________________________________________________________________



Executive Order 12902--
Energy Efficiency and Water Conservation at 
Federal Facilities


                        Presidential Documents 


Federal Register
Vol. 59, No. 47
Thursday, March 10, 1994

____________________________________________________________________

Title 3--
The President
                Executive Order 12902 of March 8, 1994

 
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 procedures;
                    (c) recommendations for the acquisition and 
                installation of energy conservation measures, including 
                solar and other renewable energy and water conservation 
                measures; and
                    (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 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 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 resource measures.

                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 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 FEDERAL FACILITIES

                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. (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 audits.

                    (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.
                  (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 implementation.
                  (3) ``No-cost'' 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. (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 facility.

                    (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 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 nonpetroleum-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 renewable energy.

                    (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 these demonstrations.

                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 source.

                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 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; 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 
                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 shall:
                  (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 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 
                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 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 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 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.

                    (Presidential Sig.)>


                THE WHITE HOUSE,

                    March 8, 1994.

[FR Doc. 94-5834
Filed 3-9-94; 11:02 am]
Billing code 3195-01-P