ENERGY EFFICIENCY
AND WATER CONSERVATION AT FEDERAL FACILITIES THE WHITE HOUSE Office of the Press Secretary For Immediate
Release March
8, 1994 EXECUTIVE ORDER #12902 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. Section 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. Section 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. Section 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. Section 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. Section 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. Section 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. Section 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. Section 109.
The term "franchising" means
that an agency would provide the services of its employees to other agencies
on a reimbursable basis. Section 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. Section 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. Section 112.
The term "life cycle cost" refers
to life cycle cost calculated pursuant to the methodology established
by 10 CFR 436.11. Section 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. Section 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. Section 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. Section 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 Section 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 Section 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. Section 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. (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. Section 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 imple- menting 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. Section 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. Section 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. Section 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. Section 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. Section 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. Section 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. Section 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 Section 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. Section 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. Section 403. Elimination of Barriers. Agency heads shall
work with their procurement officials to identify and eliminate internal
regulations, procedures, or other barriers to implemen- tation 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 Section 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. Section 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. Section 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. Section 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. Section 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. Section 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. Section 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. ThesWARNING: Bad vector_ptr parameter (file src/docmem.c, line
657) e 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 Section 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 Section 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. Section 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. Section 703. This order shall be effective immediately.
WILLIAM J. CLINTON
THE WHITE HOUSE,
March 8, 1994. BACK
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