Federal Register, Volume 64 Issue 109 (Tuesday, June 8, 1999)
[Federal Register Volume 64, Number 109 (Tuesday, June 8, 1999)]
[Presidential Documents]
[Pages 30851-30860]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 99-14633]
[[Page 30849]]
_______________________________________________________________________
Part IV
The President
_______________________________________________________________________
Executive Order 13123--Greening the Government Through Efficient Energy
Management
Presidential Documents
Federal Register / Vol. 64, No. 109 / Tuesday, June 8, 1999 /
Presidential Documents
___________________________________________________________________
Title 3--
The President
[[Page 30851]]
Executive Order 13123 of June 3, 1999
Greening the Government Through Efficient Energy
Management
By the authority vested in me as President by the
Constitution and the laws of the United States of
America, including the National Energy Conservation
Policy Act (Public Law 95-619, 92 Stat. 3206, 42 U.S.C.
8252 et seq.), as amended by the Energy Policy Act of
1992 (EPACT) (Public Law 102-486, 106 Stat. 2776), and
section 301 of title 3, United States Code, it is
hereby ordered as follows:
PART 1--PREAMBLE
Section 101. Federal Leadership. The Federal
Government, as the Nation's largest energy consumer,
shall significantly improve its energy management in
order to save taxpayer dollars and reduce emissions
that contribute to air pollution and global climate
change. With more than 500,000 buildings, the Federal
Government can lead the Nation in energy efficient
building design, construction, and operation. As a
major consumer that spends $200 billion annually on
products and services, the Federal Government can
promote energy efficiency, water conservation, and the
use of renewable energy products, and help foster
markets for emerging technologies. In encouraging
effective energy management in the Federal Government,
this order builds on work begun under EPACT and
previous Executive orders.
PART 2--GOALS
Sec. 201. Greenhouse Gases Reduction Goal. Through
life-cycle cost-effective energy measures, each agency
shall reduce its greenhouse gas emissions attributed to
facility energy use by 30 percent by 2010 compared to
such emissions levels in 1990. In order to encourage
optimal investment in energy improvements, agencies can
count greenhouse gas reductions from improvements in
nonfacility energy use toward this goal to the extent
that these reductions are approved by the Office of
Management and Budget (OMB).
Sec. 202. Energy Efficiency Improvement Goals. Through
life-cycle cost-effective measures, each agency shall
reduce energy consumption per gross square foot of its
facilities, excluding facilities covered in section 203
of this order, by 30 percent by 2005 and 35 percent by
2010 relative to 1985. No facilities will be exempt
from these goals unless they meet new criteria for
exemptions, to be issued by the Department of Energy
(DOE).
Sec. 203. Industrial and Laboratory Facilities. Through
life-cycle cost-effective measures, each agency shall
reduce energy consumption per square foot, per unit of
production, or per other unit as applicable by 20
percent by 2005 and 25 percent by 2010 relative to
1990. No facilities will be exempt from these goals
unless they meet new criteria for exemptions, as issued
by DOE.
Sec. 204. Renewable Energy. Each agency shall strive to
expand the use of renewable energy within its
facilities and in its activities by implementing
renewable energy projects and by purchasing electricity
from renewable energy sources. In support of the
Million Solar Roofs initiative, the Federal Government
shall strive to install 2,000 solar energy systems at
Federal facilities by the end of 2000, and 20,000 solar
energy systems at Federal facilities by 2010.
[[Page 30852]]
Sec. 205. Petroleum. Through life-cycle cost-effective
measures, each agency shall reduce the use of petroleum
within its facilities. Agencies may accomplish this
reduction by switching to a less greenhouse gas-
intensive, nonpetroleum energy source, such as natural
gas or renewable energy sources; by eliminating
unnecessary fuel use; or by other appropriate methods.
Where alternative fuels are not practical or life-cycle
cost-effective, agencies shall strive to improve the
efficiency of their facilities.
Sec. 206. Source Energy. The Federal Government shall
strive to reduce total energy use and associated
greenhouse gas and other air emissions, as measured at
the source. To that end, agencies shall undertake life-
cycle cost-effective projects in which source energy
decreases, even if site energy use increases. In such
cases, agencies will receive credit toward energy
reduction goals through guidelines developed by DOE.
Sec. 207. Water Conservation. Through life-cycle cost-
effective measures, agencies shall reduce water
consumption and associated energy use in their
facilities to reach the goals set under section 503(f)
of this order. Where possible, water cost savings and
associated energy cost savings shall be included in
Energy-Savings Performance Contracts and other
financing mechanisms.
PART 3--ORGANIZATION AND ACCOUNTABILITY
Sec. 301. Annual Budget Submission. Each agency's
budget submission to OMB shall specifically request
funding necessary to achieve the goals of this order.
Budget submissions shall include the costs associated
with: encouraging the use of, administering, and
fulfilling agency responsibilities under Energy-Savings
Performance Contracts, utility energy-efficiency
service contracts, and other contractual platforms for
achieving conservation goals; implementing life-cycle
cost-effective measures; procuring life-cycle cost-
effective products; and constructing sustainably
designed new buildings, among other energy costs. OMB
shall issue guidelines to assist agencies in developing
appropriate requests that support sound investments in
energy improvements and energy-using products. OMB
shall explore the feasibility of establishing a fund
that agencies could draw on to finance exemplary energy
management activities and investments with higher
initial costs but lower life-cycle costs. Budget
requests to OMB in support of this order must be within
each agency's planning guidance level.
Sec. 302. Annual Implementation Plan. Each agency shall
develop an annual implementation plan for fulfilling
the requirements of this order. Such plans shall be
included in the annual reports to the President under
section 303 of this order.
Sec. 303. Annual Reports to the President. (a) Each
agency shall measure and report its progress in meeting
the goals and requirements of this order on an annual
basis. Agencies shall follow reporting guidelines as
developed under section 306(b) of this order. In order
to minimize additional reporting requirements, the
guidelines will clarify how the annual report to the
President should build on each agency's annual Federal
energy reports submitted to DOE and the Congress.
Annual reports to the President are due on January 1 of
each year beginning in the year 2000.
(b) Each agency's annual report to the President
shall describe how the agency is using each of the
strategies described in Part 4 of this order to help
meet energy and greenhouse gas reduction goals. The
annual report to the President shall explain why
certain strategies, if any, have not been used. It
shall also include a listing and explanation of exempt
facilities.
Sec. 304. Designation of Senior Agency Official. Each
agency shall designate a senior official, at the
Assistant Secretary level or above, to be responsible
for meeting the goals and requirements of this order,
including preparing the annual report to the President.
Such designation shall be reported by each Cabinet
Secretary or agency head to the Deputy Director for
Management of OMB within 30 days of the date of this
order. Designated officials shall participate in the
Interagency Energy Policy Committee, described in
section
[[Page 30853]]
306(d) of this order. The Committee shall communicate
its activities to all designated officials to assure
proper coordination and achievement of the goals and
requirements of this order.
Sec. 305. Designation of Agency Energy Teams. Within 90
days of the date of this order, each agency shall form
a technical support team consisting of appropriate
procurement, legal, budget, management, and technical
representatives to expedite and encourage the agency's
use of appropriations, Energy-Savings Performance
Contracts, and other alternative financing mechanisms
necessary to meet the goals and requirements of this
order. Agency energy team activities shall be
undertaken in collaboration with each agency's
representative to the Interagency Energy Management
Task Force, as described in section 306(e) of this
order.
Sec. 306. Interagency Coordination. (a) Office of
Management and Budget. The Deputy Director for
Management of OMB, in consultation with DOE, shall be
responsible for evaluating each agency's progress in
improving energy management and for submitting agency
energy scorecards to the President to report progress.
(1) OMB, in consultation with DOE and other
agencies, shall develop the agency energy scorecards
and scoring system to evaluate each agency's progress
in meeting the goals of this order. The scoring
criteria shall include the extent to which agencies are
taking advantage of key tools to save energy and reduce
greenhouse gas emissions, such as Energy-Savings
Performance Contracts, utility energy-efficiency
service contracts, ENERGY STAR and other
energy efficient products, renewable energy
technologies, electricity from renewable energy
sources, and other strategies and requirements listed
in Part 4 of this order, as well as overall efficiency
and greenhouse gas metrics and use of other innovative
energy efficiency practices. The scorecards shall be
based on the annual energy reports submitted to the
President under section 303 of this order.
(2) The Deputy Director for Management of OMB
shall also select outstanding agency energy management
team(s), from among candidates nominated by DOE, for a
new annual Presidential award for energy efficiency.
(b) Federal Energy Management Program. The DOE's
Federal Energy Management Program (FEMP) shall be
responsible for working with the agencies to ensure
that they meet the goals of this order and report their
progress. FEMP, in consultation with OMB, shall develop
and issue guidelines for agencies' preparation of their
annual reports to the President on energy management,
as required in section 303 of this order. FEMP shall
also have primary responsibility for collecting and
analyzing the data, and shall assist OMB in ensuring
that agency reports are received in a timely manner.
(c) President's Management Council. The President's
Management Council (PMC), chaired by the Deputy
Director for Management of OMB and consisting of the
Chief Operating Officers (usually the Deputy Secretary)
of the largest Federal departments and agencies, will
periodically discuss agencies' progress in improving
Federal energy management.
(d) Interagency Energy Policy Committee. This
Committee was established by the Department of Energy
Organization Act. It consists of senior agency
officials designated in accordance with section 304 of
this order. The Committee is responsible for
encouraging implementation of energy efficiency
policies and practices. The major energy-consuming
agencies designated by DOE are required to participate
in the Committee. The Committee shall communicate its
activities to all designated senior agency officials to
promote coordination and achievement of the goals of
this order.
(e) Interagency Energy Management Task Force. The
Task Force was established by the National Energy
Conservation Policy Act. It consists of each agency's
chief energy manager. The Committee shall continue to
work toward improving agencies' use of energy
management tools and sharing information on Federal
energy management across agencies.
[[Page 30854]]
Sec. 307. Public/Private Advisory Committee. The
Secretary of Energy will appoint an advisory committee
consisting of representatives from Federal agencies,
State governments, energy service companies, utility
companies, equipment manufacturers, construction and
architectural companies, environmental, energy and
consumer groups, and other energy-related
organizations. The committee will provide input on
Federal energy management, including how to improve use
of Energy-Savings Performance Contracts and utility
energy-efficiency service contracts, improve
procurement of ENERGY STAR and other energy
efficient products, improve building design, reduce
process energy use, and enhance applications of
efficient and renewable energy technologies at Federal
facilities.
Sec. 308. Applicability. This order applies to all
Federal departments and agencies. General Services
Administration (GSA) is responsible for working with
agencies to meet the requirements of this order for
those facilities for which GSA has delegated operations
and maintenance authority. The Department of Defense
(DOD) is subject to this order to the extent that it
does not impair or adversely affect military operations
and training (including tactical aircraft, ships,
weapons systems, combat training, and border security).
PART 4--PROMOTING FEDERAL LEADERSHIP IN ENERGY
MANAGEMENT
Sec. 401. Life-Cycle Cost Analysis. Agencies shall use
life-cycle cost analysis in making decisions about
their investments in products, services, construction,
and other projects to lower the Federal Government's
costs and to reduce energy and water consumption. Where
appropriate, agencies shall consider the life-cycle
costs of combinations of projects, particularly to
encourage bundling of energy efficiency projects with
renewable energy projects. Agencies shall also retire
inefficient equipment on an accelerated basis where
replacement results in lower life-cycle costs. Agencies
that minimize life-cycle costs with efficiency measures
will be recognized in their scorecard evaluations.
Sec. 402. Facility Energy Audits. Agencies shall
continue to conduct energy and water audits for
approximately 10 percent of their facilities each year,
either independentlyor through Energy-Savings
Performance Contracts or utility energy-efficiency
service contracts.
Sec. 403. Energy Management Strategies and Tools.
Agencies shall use a variety of energy management
strategies and tools, where life-cycle cost-effective,
to meet the goals of this order. An agency's use of
these strategies and tools shall be taken into account
in assessing the agency's progress and formulating its
scorecard.
(a) Financing Mechanisms. Agencies shall maximize
their use of available alternative financing
contracting mechanisms, including Energy-Savings
Performance Contracts and utility energy-efficiency
service contracts, when life-cycle cost-effective, to
reduce energy use and cost in their facilities and
operations. Energy-Savings Performance Contracts, which
are authorized under the National Energy Conservation
Policy Act, as modified by the Energy Policy Act of
1992, and utility energy-efficiency service contracts
provide significant opportunities for making Federal
facilities more energy efficient at no net cost to
taxpayers.
(b) ENERGY STAR and Other Energy
Efficient Products.
(1) Agencies shall select, where life-cycle cost-
effective, ENERGY STAR and other energy
efficient products when acquiring energy-using
products. For product groups where ENERGY
STAR labels are not yet available, agencies
shall select products that are in the upper 25 percent
of energy efficiency as designated by FEMP. The
Environmental Protection Agency (EPA) and DOE shall
expedite the process of designating products as ENERGY
STAR and will merge their current efficiency
rating procedures.
(2) GSA and the Defense Logistics Agency (DLA),
with assistance from EPA and DOE, shall create clear
catalogue listings that designate these
[[Page 30855]]
products in both print and electronic formats. In
addition, GSA and DLA shall undertake pilot projects
from selected energy-using products to show a ``second
price tag'', which means an accounting of the operating
and purchase costs of the item, in both printed and
electronic catalogues and assess the impact of
providing this information on Federal purchasing
decisions.
(3) Agencies shall incorporate energy efficient
criteria consistent with ENERGY STAR and
other FEMP-designated energy efficiency levels into all
guide specifications and project specifications
developed for new construction and renovation, as well
as into product specification language developed for
Basic Ordering Agreements, Blanket Purchasing
Agreements, Government Wide Acquisition Contracts, and
all other purchasing procedures.
(4) DOE and OMB shall also explore the creation
of financing agreements with private sector suppliers
to provide private funding to offset higher up-front
costs of efficient products. Within 9 months of the
date of this order, DOE shall report back to the
President's Management Council on the viability of such
alternative financing options.
(c) ENERGY STAR Buildings. Agencies shall
strive to meet the ENERGY STAR Building
criteria for energy performance and indoor
environmental quality in their eligible facilities to
the maximum extent practicable by the end of 2002.
Agencies may use Energy-Savings Performance Contracts,
utility energy-efficiency service contracts, or other
means to conduct evaluations and make improvements to
buildings in order to meet the criteria. Buildings that
rank in the top 25 percent in energy efficiency
relative to comparable commercial and Federal buildings
will receive the ENERGY STAR building label.
Agencies shall integrate this building rating tool into
their general facility audits.
(d) Sustainable Building Design. DOD and GSA, in
consultation with DOE and EPA, shall develop
sustainable design principles. Agencies shall apply
such principles to the siting, design, and construction
of new facilities. Agencies shall optimize life-cycle
costs, pollution, and other environmental and energy
costs associated with the construction, life-cycle
operation, and decommissioning of the facility.
Agencies shall consider using Energy-Savings
Performance Contracts or utility energy-efficiency
service contracts to aid them in constructing
sustainably designed buildings.
(e) Model Lease Provisions. Agencies entering into
leases, including the renegotiation or extension of
existing leases, shall incorporate lease provisions
that encourage energy and water efficiency wherever
life-cycle cost-effective. Build-to-suit lease
solicitations shall contain criteria encouraging
sustainable design and development, energy efficiency,
and verification of building performance. Agencies
shall include a preference for buildings having the
ENERGY STAR building label in their selection
criteria for acquiring leased buildings. In addition,
all agencies shall encourage lessors to apply for the
ENERGY STAR building label and to explore and
implement projects that would reduce costs to the
Federal Government, including projects carried out
through the lessors' Energy-Savings Performance
Contracts or utility energy-efficiency service
contracts.
(f) Industrial Facility Efficiency Improvements.
Agencies shall explore efficiency opportunities in
industrial facilities for steam systems, boiler
operation, air compressor systems, industrial
processes, and fuel switching, including cogeneration
and other efficiency and renewable energy technologies.
(g) Highly Efficient Systems. Agencies shall
implement district energy systems, and other highly
efficient systems, in new construction or retrofit
projects when life-cycle cost-effective. Agencies shall
consider combined cooling, heat, and power when
upgrading and assessing facility power needs and shall
use combined cooling, heat, and power systems when
life-cycle cost-effective. Agencies shall survey local
natural resources to optimize use
[[Page 30856]]
of available biomass, bioenergy, geothermal, or other
naturally occurring energy sources.
(h) Off-Grid Generation. Agencies shall use off-
grid generation systems, including solar hot water,
solar electric, solar outdoor lighting, small wind
turbines, fuel cells, and other off-grid alternatives,
where such systems are life-cycle cost-effective and
offer benefits including energy efficiency, pollution
prevention, source energy reductions, avoided
infrastructure costs, or expedited service.
Sec. 404. Electricity Use. To advance the greenhouse
gas and renewable energy goals of this order, and
reduce source energy use, each agency shall strive to
use electricity from clean, efficient, and renewable
energy sources. An agency's efforts in purchasing
electricity from efficient and renewable energy sources
shall be taken into account in assessing the agency's
progress and formulating its score card.
(a) Competitive Power. Agencies shall take
advantage of competitive opportunities in the
electricity and natural gas markets to reduce costs and
enhance services. Agencies are encouraged to aggregate
demand across facilities or agencies to maximize their
economic advantage.
(b) Reduced Greenhouse Gas Intensity of Electric
Power. When selecting electricity providers, agencies
shall purchase electricity from sources that use high
efficiency electric generating technologies when life-
cycle cost-effective. Agencies shall consider the
greenhouse gas intensity of the source of the
electricity and strive to minimize the greenhouse gas
intensity of purchased electricity.
(c) Purchasing Electricity from Renewable Energy
Sources.
(1) Each agency shall evaluate its current use of
electricity from renewable energy sources and report
this level in its annual report to the President. Based
on this review, each agency should adopt policies and
pursue projects that increase the use of such
electricity. Agencies should include provisions for the
purchase of electricity from renewable energy sources
as a component of their requests for bids whenever
procuring electricity. Agencies may use savings from
energy efficiency projects to pay additional
incremental costs of electricity from renewable energy
sources.
(2) In evaluating opportunities to comply with
this section, agencies should consider: my
Administration's goal of tripling nonhydroelectric
renewable energy capacity in the United States by 2010;
the renewable portfolio standard specified in the
restructuring guidelines for the State in which the
facility is located; GSA's efforts to make electricity
from renewable energy sources available to Federal
electricity purchasers; and EPA's guidelines on
crediting renewable energy power in implementation of
Clean Air Act standards.
Sec. 405. Mobile Equipment. Each agency shall seek to
improve the design, construction, and operation of its
mobile equipment, and shall implement all life-cycle
cost-effective energy efficiency measures that result
in cost savings while improving mission performance. To
the extent that such measures are life-cycle cost-
effective, agencies shall consider enhanced use of
alternative or renewable-based fuels.
Sec. 406. Management and Government Performance.
Agencies shall use the following management strategies
in meeting the goals of this order.
(a) Awards. Agencies shall use employee incentive
programs to reward exceptional performance in
implementing this order.
(b) Performance Evaluations. Agencies shall include
successful implementation of provisions of this order
in areas such as Energy-Savings Performance Contracts,
sustainable design, energy efficient procurement,
energy efficiency, water conservation, and renewable
energy projects in the position descriptions and
performance evaluations of agency heads, members of the
agency energy team, principal program managers, heads
of field offices, facility managers, energy managers,
and other appropriate employees.
[[Page 30857]]
(c) Retention of Savings and Rebates. Agencies
granted statutory authority to retain a portion of
savings generated from efficient energy and water
management are encouraged to permit the retention of
the savings at the facility or site where the savings
occur to provide greater incentive for that facility
and its site managers to undertake more energy
management initiatives, invest in renewable energy
systems, and purchase electricity from renewable energy
sources.
(d) Training and Education. Agencies shall ensure
that all appropriate personnel receive training for
implementing this order.
(1) DOE, DOD, and GSA shall provide relevant
training or training materials for those programs that
they make available to all Federal agencies relating to
the energy management strategies contained in this
order.
(2) The Federal Acquisition Institute and the
Defense Acquisition University shall incorporate into
existing procurement courses information on Federal
energy management tools, including Energy-Savings
Performance Contracts, utility energy-efficiency
service contracts, ENERGY STAR and other
energy efficient products, and life-cycle cost
analysis.
(3) All agencies are encouraged to develop
outreach programs that include education, training, and
promotion of ENERGY STAR and other energy-
efficient products for Federal purchase card users.
These programs may include promotions with billing
statements, user training, catalogue awareness, and
exploration of vendor data collection of purchases.
(e) Showcase Facilities. Agencies shall designate
exemplary new and existing facilities with significant
public access and exposure as showcase facilities to
highlight energy or water efficiency and renewable
energy improvements.
PART 5--TECHNICAL ASSISTANCE
Sec. 501. Within 120 days of this order, the Director
of OMB shall:
(a) develop and issue guidance to agency budget
officers on preparation of annual funding requests
associated with the implementation of the order for the
FY 2001 budget;
(b) in collaboration with the Secretary of Energy,
explain to agencies how to retain savings and reinvest
in other energy and water management projects; and
(c) in collaboration with the Secretary of Energy
through the Office of Federal Procurement Policy,
periodically brief agency procurement executives on the
use of Federal energy management tools, including
Energy-Savings Performance Contracts, utility energy-
efficiency service contracts, and procurement of energy
efficient products and electricity from renewable
energy sources.
Sec. 502. Within 180 days of this order, the Secretary
of Energy, in collaboration with other agency heads,
shall:
(a) issue guidelines to assist agencies in
measuring energy per square foot, per unit of
production, or other applicable unit in industrial,
laboratory, research, and other energy-intensive
facilities;
(b) establish criteria for determining which
facilities are exempt from the order. In addition, DOE
must provide guidance for agencies to report proposed
exemptions;
(c) develop guidance to assist agencies in
calculating appropriate energy baselines for previously
exempt facilities and facilities occupied after 1990 in
order to measure progress toward goals;
(d) issue guidance to clarify how agencies
determine the life-cycle cost for investments required
by the order, including how to compare different energy
and fuel options and assess the current tools;
(e) issue guidance for providing credit toward
energy efficiency goals for cost-effective projects
where source energy use declines but site energy use
increases; and
[[Page 30858]]
(f) provide guidance to assist each agency to
determine a baseline of water consumption.
Sec. 503. Within 1 year of this order, the Secretary of
Energy, in collaboration with other agency heads,
shall:
(a) provide guidance for counting renewable and
highly efficient energy projects and purchases of
electricity from renewable and highly efficient energy
sources toward agencies' progress in reaching
greenhouse gas and energy reduction goals;
(b) develop goals for the amount of energy
generated at Federal facilities from renewable energy
technologies;
(c) support efforts to develop standards for the
certification of low environmental impact hydropower
facilities in order to facilitate the Federal purchase
of such power;
(d) work with GSA and DLA to develop a plan for
purchasing advanced energy products in bulk quantities
for use in by multiple agencies;
(e) issue guidelines for agency use estimating the
greenhouse gas emissions attributable to facility
energy use. These guidelines shall include emissions
associated with the production, transportation, and use
of energy consumed in Federal facilities; and
(f) establish water conservation goals for Federal
agencies.
Sec. 504. Within 120 days of this order, the Secretary
of Defense and the Administrator of GSA, in
consultation with other agency heads, shall develop and
issue sustainable design and development principles for
the siting, design, and construction of new facilities.
Sec. 505. Within 180 days of this order, the
Administrator of GSA, in collaboration with the
Secretary of Defense, the Secretary of Energy, and
other agency heads, shall:
(a) develop and issue guidance to assist agencies
in ensuring that all project cost estimates, bids, and
agency budget requests for design, construction, and
renovation of facilities are based on life-cycle costs.
Incentives for contractors involved in facility design
and construction must be structured to encourage the
contractors to design and build at the lowest life-
cycle cost;
(b) make information available on opportunities to
purchase electricity from renewable energy sources as
defined by this order. This information should
accommodate relevant State regulations and be updated
periodically based on technological advances and market
changes, at least every 2 years;
(c) develop Internet-based tools for both GSA and
DLA customers to assist individual and agency
purchasers in identifying and purchasing ENERGY
STAR and other energy efficient products for
acquisition; and
(d) develop model lease provisions that incorporate
energy efficiency and sustainable design.
PART 6--GENERAL PROVISIONS
Sec. 601. Compliance by Independent Agencies.
Independent agencies are encouraged to comply with the
provisions of this order.
Sec. 602. Waivers. If an agency determines that a
provision in this order is inconsistent with its
mission, the agency may ask DOE for a waiver of the
provision. DOE will include a list of any waivers it
grants in its Federal Energy Management Programs annual
report to the Congress.
Sec. 603. Scope. (a) This order is intended only to
improve the internal management of the executive branch
and is not intended to create any right, benefit, or
trust responsibility, substantive or procedural,
enforceable by law by a party against the United
States, its agencies, its officers, or any other
person.
(b) This order applies to agency facilities in any
State of the United States, the District of Columbia,
the Commonwealth of Puerto Rico, Guam,
[[Page 30859]]
American Samoa, the United States Virgin Islands, the
Northern Mariana Islands, and any other territory or
possession over which the United States has
jurisdiction. Agencies with facilities outside of these
areas, however, are encouraged to make best efforts to
comply with the goals of this order for those
facilities. In addition, agencies can report energy
improvements made outside the United States in their
annual report to the President; these improvements may
be considered in agency scorecard evaluations.
Sec. 604. Revocations. Executive Order 12902 of March
9, 1994, Executive Order 12759 of April 17, 1991, and
Executive Order 12845 of April 21, 1993, are revoked.
Sec. 605. Amendments to Federal Regulations. The
Federal Acquisition Regulation and other Federal
regulations shall be amended to reflect changes made by
this order, including an amendment to facilitate agency
purchases of electricity from renewable energy sources.
PART 7--DEFINITIONS
For the purposes of this order:
Sec. 701. ``Acquisition'' means acquiring by contract
supplies or services (including construction) by and
for the use of the Federal Government through purchase
or lease, whether the supplies or services are already
in existence or must be created, developed,
demonstrated, and evaluated. Acquisition begins at the
point when agency needs are established and includes
the description of requirements to satisfy agency
needs, solicitation and selection of sources, award of
contracts, contract financing, contract performance,
contract administration, and those technical and
management functions directly related to the process of
fulfilling agency needs by contract.
Sec. 702. ``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 DOD.
Sec. 703. ``Energy-Savings Performance Contract'' means
a contract that provides for the performance of
services for the design, acquisition, financing,
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. Such contracts shall
provide that the contractor must incur costs of
implementing energy savings measures, including at
least the cost (if any) incurred in making energy
audits, acquiring and installing equipment, and
training personnel in exchange for a predetermined
share of the value of the energy savings directly
resulting from implementation of such measures during
the term of the contract. Payment to the contractor is
contingent upon realizing a guaranteed stream of future
energy and cost savings. All additional savings will
accrue to the Federal Government.
Sec. 704. ``Exempt facility'' or ``Exempt mobile
equipment'' means a facility or a piece of mobile
equipment for which an agency uses DOE-established
criteria to determine that compliance with the Energy
Policy Act of 1992 or this order is not practical.
Sec. 705. ``Facility'' means any individual building or
collection of buildings, grounds, or structure, as well
as any fixture 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. It
includes leased facilities where the Federal Government
has a purchase option or facilities planned for
purchase. In any provision of this order, the term
``facility'' also includes any building 100 percent
leased for use by the Federal Government where the
Federal Government pays directly or indirectly for the
utility costs associated with its leased space. The
term also includes Government-owned contractor-operated
facilities.
Sec. 706. ``Industrial facility'' means any fixed
equipment, building, or complex for production,
manufacturing, or other processes that uses large
amounts of capital equipment in connection with, or as
part of, any process
[[Page 30860]]
or system, and within which the majority of energy use
is not devoted to the heating, cooling, lighting,
ventilation, or to service the water heating energy
load requirements of the facility.
Sec. 707. ``Life-cycle costs'' means the sum of the
present values of investment costs, capital costs,
installation costs, energy costs, operating costs,
maintenance costs, and disposal costs, over the
lifetime of the project, product, or measure.
Additional guidance on measuring life-cycle costs is
specified in 10 C.F.R. 436.19.
Sec. 708. ``Life-cycle cost-effective'' means the life-
cycle costs of a product, project, or measure are
estimated to be equal to or less than the base case
(i.e., current or standard practice or product).
Additional guidance on measuring cost-effectiveness is
specified in 10 C.F.R. 436.18 (a), (b), and (c),
436.20, and 436.21.
Sec. 709. ``Mobile equipment'' means all Federally
owned ships, aircraft, and nonroad vehicles.
Sec. 710. ``Renewable energy'' means energy produced by
solar, wind, geothermal, and biomass power.
Sec. 711. ``Renewable energy technology'' means
technologies that use renewable energy to provide
light, heat, cooling, or mechanical or electrical
energy for use in facilities or other activities. The
term also means the use of integrated whole-building
designs that rely upon renewable energy resources,
including passive solar design.
Sec. 712. ``Source energy'' means the energy that is
used at a site and consumed in producing and in
delivering energy to a site, including, but not limited
to, power generation, transmission, and distribution
losses, and that is used to perform a specific
function, such as space conditioning, lighting, or
water heating.
Sec. 713. ``Utility'' means public agencies and
privately owned companies that market, generate, and/or
distribute energy or water, including electricity,
natural gas, manufactured gas, steam, hot water, and
chilled water as commodities for public use and that
provide the service under Federal, State, or local
regulated authority to all authorized customers.
Utilities include: Federally owned nonprofit producers;
municipal organizations; and investor or privately
owned producers regulated by a State and/or the Federal
Government; cooperatives owned by members and providing
services mostly to their members; and other nonprofit
State and local government agencies serving in this
capacity.
Sec. 714. ``Utility energy-efficiency service'' means
demand side management services provided by a utility
to improve the efficiency of use of the commodity
(electricity, gas, etc.) being distributed. Services
can include, but are not limited to, energy efficiency
and renewable energy project auditing, financing,
design, installation, operation, maintenance, and
monitoring.
(Presidential Sig.)
THE WHITE HOUSE,
June 3, 1999.
[FR Doc. 99-14633
Filed 6-7-99; 8:45 am]
Billing code 3195-01-P
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