Executive Order 13123
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release |
June 3, 1999 |
EXECUTIVE ORDER 13123
- - - - - - -
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.
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.
- 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.
- 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 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.
- 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.
- 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 (Registered Trademark) 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.
- 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.
- 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.
- 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.
- 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.
- 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.
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 (Registered
Trademark) 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 independently or 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 score card.
- 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.
- ENERGY STAR (Registered Trademark)and Other Energy Efficient
Products.
- 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 (Registered
Trademark) 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 (Registered
Trademark) and will merge their current efficiency rating procedures.
- GSA and the Defense Logistics Agency (DLA), with assistance
from EPA and DOE, shall create clear catalogue listings that designate
these 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.
- Agencies shall incorporate energy efficient criteria
consistent with ENERGY STAR (Registered Trademark)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.
- 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.
- ENERGY STAR (Registered Trademark) Buildings. Agencies shall
strive to meet the ENERGY STAR (Registered Trademark) 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 (Registered Trademark) building label.
Agencies shall integrate this building rating tool into their general
facility audits.
- 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.
- 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 (Registered Trademark) 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.
- 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.
- 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 of available biomass, bioenergy,
geothermal, or other naturally occurring energy sources.
- 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.
- 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.
- 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.
- Purchasing Electricity from Renewable Energy Sources.
- 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:
- 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.
- Awards. Agencies shall use employee incentive programs to reward
exceptional performance in implementing this order.
- 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.
- 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.
- Training and Education. Agencies shall ensure that all
appropriate personnel receive training for implementing this order.
- 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.
- 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 (Registered Trademark) and other energy
efficient products, and life-cycle cost analysis.
- All agencies are encouraged to develop outreach programs
that include education, training, and promotion of ENERGY STAR
(Registered Trademark) 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.
- 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:
- 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;
- in collaboration with the Secretary of Energy, explain to
agencies how to retain savings and reinvest in other energy and water
management projects; and
- 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:
- 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;
- establish criteria for determining which facilities are exempt
from the order. In addition, DOE must provide guidance for agencies to
report proposed exemptions;
- 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;
- 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;
- issue guidance for providing credit toward energy efficiency
goals for cost-effective projects where source energy use declines but
site energy use increases; and
- 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:
- 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;
- develop goals for the amount of energy generated at Federal
facilities from renewable energy technologies;
- support efforts to develop standards for the certification of low
environmental impact hydropower facilities in order to facilitate the
Federal purchase of such power;
- work with GSA and DLA to develop a plan for purchasing advanced
energy products in bulk quantities for use in by multiple agencies;
- 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
- 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:
- 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;
- 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;
- 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
- 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.
- 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.
- This order applies to agency facilities in any State of the
United States, the District of Columbia, the Commonwealth of Puerto
Rico, Guam, 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 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 non-profit
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.
WILLIAM J. CLINTON
THE WHITE HOUSE,
June 3, 1999.
# # #
![Footer bar icon](https://webarchive.library.unt.edu/eot2008/20080916005054im_/http://ceq.hss.doe.gov/nepa/images/footer3.gif)
To submit questions and comments about CEQ NEPAnet, please use the NEPAnet Feedback System.
|