[Weekly Compilation of Presidential Documents Volume 30, Number 10 (Monday, March 14, 1994)]
[Pages 470-477]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Executive Order 12902--Energy Efficiency and Water Conservation at 
Federal Facilities

March 8, 1994

    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

[[Page 471]]

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 
pro- 

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gram 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

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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 
ef- 

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fective 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 quali- 

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fied 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

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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

[[Page 477]]

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 chlorofluoro- 
carbons, 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.

[Filed with the Office of the Federal Register, 11:02 a.m., March 9, 
1994]

Note: This Executive order was published in the Federal Register on 
March 10.