Greening the Government Through Efficient Energy Management

[Federal Register Volume 64, Number 109 (Tuesday, June 8, 1999)]

[Presidential Documents]

[Pages 30851-30860]

From the Federal Register Online via the Government Publishing Office [www.gpo.gov]

[FR Doc No: 99-14633]

[[Page 30849]]

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Part IV

The President

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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