EO 12893
Effective Date: January 26, 1994

Responsible Office: Office of the Administrator


A well-functioning infrastructure is vital to sustained economic
growth, to the quality of life in our communities, and to the
protection of our environment and natural resources.  To develop
and maintain its infrastructure facilities, our Nation relies
heavily on investments by the Federal Government.

Our Nation will achieve the greatest benefits from its
infrastructure facilities if it invests wisely and continually
improves the quality and performance of its infrastructure
programs.  Therefore, by the authority vested in me as President
by the Constitution and the laws of the United States of America,
it is hereby ordered as follows:

Section 1. Scope.  The principles and plans referred to in this
order shall apply to Federal spending for infrastructure
programs.  For the purposes of this order, Federal spending for
infrastructure programs shall include direct spending and grants
for transportation, water resources, energy, and environmental

Sec. 2. Principles of Federal Infrastructure Investment.

Each executive department and agency with infrastructure
responsibilities (hereinafter referred to collectively as
"agencies") shall develop and implement plans for infrastructure
investment and management consistent with the following
     (a) Systematic Analysis of Expected Benefits and Costs. 
Infrastructure investments shall be based on systematic analysis
of expected benefits and costs, including both quantitative and
qualitative measures, in accordance with the following:

     (1) Benefits and cost should be quantified and monetized to
     the maximum extent practicable.  All types of benefits and
     costs, both market and other nonmarket benefits and costs
     can be quantified, they shall be given the same weight as
     quantifiable market benefits and costs.

     (2) Benefits and costs should be measured and appropriately
     discounted over the full life cycle of each project.  Such
     analysis will enable informed tradeoffs among capital
     outlays, operating and maintenance costs, and nonmonetary
     costs borne by the public.
     (3) When the amount and timing of important benefits and
     costs are uncertain, analyses shall recognize the
     uncertainty and address it through appropriate quantitative
     and qualitative assessments.

     (4) Analyses shall compare a comprehensive set of options
     that include, among other things, managing demand, repairing
     facilities, and expanding facilities.

     (5) Analyses should consider not only quantifiable measures
     of benefits and costs, bit also qualitative measures
     reflecting values that are not readily quantified.

     (b) Efficient Management.  Infrastructure shall be managed
efficiently in accordance with the following:

     (1) The efficient use of infrastructure depends not only on
     physical design feature, but also on operational practices. 
     To improve these practices, agencies should conduct periodic
     reviews of the operation and maintenance of existing

     (2) Agencies should use these reviews to consider a variety
     of management practices that can improve the return from
     infrastructure investments.  Examples include contracting
     practices that reward quality and innovation, and design
     standards that incorporate new technologies and construction

     (3) Agencies also should use these reviews to identify the
     demand for different levels of infrastructure services. 
     Since efficient levels of service can often best be achieved
     by properly pricing infrastructure, the Federal Government--
     through its direct investments, grants, and regulations --
     should promote consideration of market-based mechanisms for
     managing infrastructure.

     (c) Private Sector Participation.  Agencies shall seek
private seek private sector participation in infrastructure
investment and management.  Innovative public-private initiatives
can bring about greater private sector participation in the
ownership, financing, construction, and operation of the
infrastructure programs referred to in section 1 of this order. 
Consistent with the public interest, agencies should work with
State and local entities to minimize legal and regulatory
barriers to private sector participation in the provision of
infrastructure facilities and services.

     (d) Encouragement of More Effective State and Local
Programs.  To promote the efficient use of Federal infrastructure
funds, agencies should encourage the State and local recipients
of Federal grants to implement planning and information
management systems that support the principles set forth in
section 2(a) through (c) of this order.  In turn, the Federal
Government should use the information from the State and local
recipient's management systems to conduct the system-level
reviews of the Federal Government's infrastructure programs that
are required by this order.

Sec. 3. Submission of Plans. Agencies shall submit initial plans
to implement these principles to the Director of the Office of
Management and Budget ("OMB") by March 15, 1994.  Agency plans
shall list the actions that will be taken to provide the data and
analysis necessary for supporting infrastructure-related
proposals in future budget submissions.  Agency implementation
plans should be consistent with OMB Circular A-94 that outlines
the analytical methods required under the principles set forth in
section 2 of this order.

Sec. 4. Application to Budget Submissions.  Beginning with the
fiscal year 1996 budget submission to OMB, each agency should use
these principles to justify major infrastructure investment and
grant programs.  Major programs are defined as those programs
with annual budgetary resources in excess of $50 million.

Sec. 5. Application to Legislative Proposals.  Beginning March
15, 1994, agencies shall employ the principles set forth in
section 2 of this order and, at the request of OMB, shall provide
supporting analyses when requesting OMB clearance for legislative
proposals that would authorize or reauthorize infrastructure

Sec. 6. Guidance.  The Office of Management and Budget shall
provide guidance to the agencies on the implementation of this

Sec. 7. Judicial Review.  This order is intended only to improve
the internal management of the executive branch and does not
create any right or benefit, substantive or procedural,
enforceable by a party against the United States, it agencies or
instrumentalities, its officers or employees, or any other

                              /s/William J. Clinton

January 26, 1994.


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