TEXT

By the authority vested in me as President by the Constitution
and the laws of the United States of America, including the
Energy Policy and Conservation Act (Public Law 94-163, 89 Stat.
871, 42 U.S.C. 6201 et seq.) as amended by the Energy Policy Act
of 1992 (Public Law 102-486, 106 Stat. 2776) and section 301 of
title 3, United States Code, I hereby order as follows:

PART 1-DEFINITIONS

For the purposes of this order:

Section 101. The "Act" means the Federal energy management
provisions of the Energy Policy and Conservation Act, as amended
by the Energy Policy Act of 1992.

Sec. 102. The term "comprehensive facility audit" means a survey
of a building or facility that provides sufficiently detailed
information to allow an agency to enter into energy or water
savings performance contracts or for invite inspection and bids
by private upgrade specialists for direct agency-funded energy or
water efficiency investments.  It shall include information such
as the following:

     (a) the type, size, energy use, and performance of the major
     energy using systems and their interaction with the building
     envelope, the climate and weather influences, usage
     patterns, and related environmental concerns:

     (b) appropriate energy and water conservation maintenance  
     and operating procedures;

     (c) recommendations for the acquisition and installation of
     energy conservation measures, including solar and other
     renewable energy and water conservation measures; and

     (d) a strategy to implement the recommendations.

Sec. 103. The term "cost-effective" means providing a payback
period of less than 10 years, as determined by using the methods
and procedures developed pursuant to 42 U.S.C. 8254 and to 10 CFR
436.


Sec. 104. The term "demand side management" refers to utility-
sponsored programs that increase energy efficiency and water
conservation or the management of demand.  The term includes load
management techniques.

Sec. 105. The term "energy savings performance contracts" means
contracts that provide for the performance of services for the
audit, design, acquisition, installation, testing, operation,
and, where appropriate, maintenance and repair, of an identified
energy or water conservation measure or series of measures at one
or more locations.

Sec. 106. The term "agency" means an executive agency as defined
in 5 U.S.C. 105.  For the purpose of this order, military
departments, as defined in 5 U.S.C. 102, are covered under the
auspices of the Department of Defense.

Sec. 107. The term "Federal building" means any individual
building, structure, or part thereof, including the associated
energy water-consuming support systems, which is constructed,
renovated, or purchased in whole or in part for use by the
Federal Government and which consumes energy or water.  In any
provision of this order, the term "Federal building" shall also
include any building leased in whole or in part for use by the
Federal Government where the term of the lease exceeds 5 years
and the lease does not prohibit implementation of the provision
in question.

Sec. 108. The term "Federal facility" means any building or
collection of buildings, grounds, or structure, as well as any
fixture or part thereof, which is owned by the United States or
any Federal agency or which is held by the United States or any
Federal agency under a lease-acquisition agreement under which
the United States or a Federal agency will receive fee simple
title under the terms of such agreement without further
negotiation.  In any provision of this order, the term "Federal
facility" shall also include any building leased in whole or in
part for use by the Federal Government where the term of the
lease exceeds 5 years and the lease does not prohibit
implementation of the provision in question.

Sec. 109. The term "franchising" means that an agency would
provide the services of its employees to other agencies on a
reimbursable basis.

Sec. 110. The term "gainsharing" refers to incentive systems that
allocate some portion of savings resulting from gains in
productivity to the workers who produce those gains.

Sec. 111. The term "industrial facilities" means any fixed
equipment, building, or complex for the production of goods that
uses large amounts of capital equipment in connection with, or as
part of, any process or system, and within which the majority of
energy use is not devoted to the heating, cooling, lighting,
ventilation, or to service the hot water energy load requirements
of the building.

Sec. 112. The term "life cycle cost" refers to life cycle cost
calculated pursuant to the methodology established by 10 CFR
436.11.

Sec. 113. The term "prioritization survey" means a rapid
assessment that will be used by an agency to identify those
facilities with the highest priority projects based on the degree
of cost effectiveness and to schedule comprehensive facility
audits prior to project implementation.  The prioritization
survey shall include information such as the following:

     (a)  the type, size, energy and water use levels of the
major energy and water using systems in place at the facility;
and

     (b)  the need, if any, for acquisition and installation of
cost-effective energy and water conservation measures, including
solar and other renewable energy resource measures.

Sec. 114. The term "shared energy savings contract" refers to a
contract under which the contractor incurs the cost of
implementing energy savings measures (including, but not limited
to, performing the audit designing the project, acquiring and
installing equipment, training personnel, and operating and
maintaining equipment) and in exchange for providing these
services, the contractor gains a share of any energy cost savings
directly resulting from implementation of such measures during
the term of the contract.

Sec. 115. The term "solar and other renewable energy sources"
includes, but is not limited to, agriculture and urban waste,
geothermal energy, solar energy, and wind energy.

Sec. 116. The term "utility" means any person, State, or agency
that is engaged in the business of producing or selling
electricity or engaged in the local distribution of natural gas
or water to any ultimate consumer.

PART 2--INTERAGENCY COORDINATION

Sec. 201. Interagency Coordination.  The Department of Energy
("DOE") shall take the lead in implementing this order through
the Federal Energy Management Program ("FEMP").  The Interagency
Energy Policy Committee ("656 Committee") and the Interagency
Energy Management Task Force ("Task Force") shall serve as forums
to coordinate issues involved in implementing energy efficiency,
water conservation, and solar and other renewable energy in the
Federal sector.

PART 3--AGENCY GOALS AND REPORTING REQUIREMENTS FOR ENERGY AND
WATER EFFICIENCY IN FEDERAL FACILITIES

Sec. 301. Energy Consumption Reduction Goals.  (a) Each agency
shall develop and implement a program with the intent of reducing
energy consumption by 30 percent by the year 2005 based on energy
consumption per-gross-square-foot of its buildings in use, to the
extent that these measures are cost-effective.  The 30 percent
reductions shall be measured relative to the agency's 1985 energy
use.  Each agency's implementation program shall be designed to
speed the introduction of cost-effective, energy-efficient
technologies into Federal facilities, and to meet the goals and
requirements of the Act and this order.

     (b)  Each agency shall develop and implement a program for
its industrial facilities in the aggregate with the intent of
increasing energy efficiency by at least 20 percent by the year
2005 as compared to the 1990 benchmark, to the extent these
measures are cost-effective, and shall implement all cost-
effective water conservation projects.  DOE, in coordination with
the 656 Committee, shall establish definitions and appropriate
indicators of energy and water efficiency, and energy and water
consumption and costs, in Federal industrial facilities for the
purpose of establishing a base year of 1990.

Sec. 302. Energy and Water Surveys and Audits of Federal
Facilities.  (a) Prioritization Survey.  Each agency responsible
for managing Federal facilities shall conduct a prioritization
survey, within 18 months of the date of this order, on each of
the facilities the agency manages.  The surveys shall be used to
establish priorities for conducting comprehensive facility
audits.

     (b)  Comprehensive Facility Audits.  Each agency shall
develop and begin implementing a 10-year plan to conduct or
obtain comprehensive facility audits, based on prioritization
surveys performed under section 302(a) of this order.

          (1)  Implementation of the plan shall ensure that 
          comprehensive facility audits of approximately 10
          percent of the agency's facilities are completed each
          year.  Agencies responsible for managing less than 100
          Federal facilities shall plan and execute approximately
          10 comprehensive facility audits per year until all
          facilities have been audited.
          
          (2)  Comprehensive audits of facilities performed 
          within the last 3 years may be considered current for
          the purposes of implementation.

          (3)  "No-cost" audits, such as those outlined in
          section 501(c) of this order, shall be utilized to the
          extent practicable.

     (c)  Exempt Facilities.  Because the mission within
facilities exempt from the energy and water reduction
requirements under the Act may not allow energy efficiency and
water conservation in certain operations, actions shall be taken
to reduce all other energy and water waste using the procedures
described in the Act and this order.  Each agency shall develop
and implement a plan to improve energy and water efficiency in
such exempt facilities.  The prioritization surveys are intended
to allow agencies to refine their designation of facilities as
"exempt" or "industrial," so that only individual buildings in
which industrial or energy-intensive operations are conducted
remain designated as "exempt" or "industrial." Within 21 months
of the date of this order, each agency shall report to FEMP and
to the Office of Management and Budget ("OMB") the redesignations
that the agency is making as a result of the prioritization
surveys.  Agencies may seek exemptions for their facilities
pursuant to the Energy Policy and Conservation Act, as amended.

     (d)  Leased Facilities.  Agencies shall conduct surveys and
audits of leased facilities to the extent practicable and to the
extent that the recommendations of such surveys and audits could
be implemented under the terms of the lease.


Sec. 303. Implementation of Energy Efficiency and Water
Conservation Projects.  (a) Implementation of New Audit
Recommendations.  Within 1 year of the date of this order,
agencies shall identify, based on preliminary recommendations
from the prioritization surveys required under section 302 of
this order, high priority facilities to audit and shall complete
the first 10 percent of the required comprehensive facility
audits.  Within 180 days of the completion of the comprehensive
facility audit of each facility, agencies shall begin
implementing cost-effective recommendations for installation of
energy efficiency, water conservation, and renewable energy
technologies for that facility.

     (b)  Implementation of Existing Audits.  Within 180 days of
the date of this order, agencies shall begin to implement cost-
effective recommendations from comprehensive audits of facilities
performed within the past 3 years, for installation of energy
efficiency, water conservation, and renewable energy
technologies.

Sec. 304. Solar and Other Renewable Energy.  The goal of the
Federal Government is to significantly increase the use of solar
and other renewable energy sources.  DOE shall develop a program
for achieving this goal cost-effectively and, within 210 days of
the date of this order, submit the program to the 656 Committee
for review.  DOE shall lead the effort to assist agencies in
meeting this goal.

Sec. 305. Minimization of Petroleum-Based Fuel Use in Federal
Buildings and Facilities.  All agencies shall develop and
implement programs to reduce the use of petroleum in their
buildings and facilities by switching to a less-polluting and
nonpetroleum-based energy source, such as natural gas or solar
and other renewable energy sources.  Where alternative fuels are
not practical or cost-effective, agencies shall strive to improve
the efficiency with which they use the petroleum.  Each agency
shall survey its buildings and facilities that utilize petroleum-
based fuel systems to determine where the potential for a dual-
fuel capability exists and shall provide dual-fuel capability
where cost-effective and practicable.

Sec. 306. New Space.  (a) New Federal Facility Construction. 
Each agency involved in the construction of a new facility that
is to be either owned by or leased to the Federal Government
shall:

          (1)  design and construct such facility to minimize the
          life cycle cost of the facility by utilizing energy
          efficiency, water conservation, or solar or other
          renewable energy technologies;

          (2)  ensure that the design and construction of
          facilities meet or exceed the energy performance
          standards applicable to Federal residential or
          commercial buildings as set forth in 10 CFR 435, local
          building standards, or a Btu-per-gross-square-foot
          ceiling as determined by the Task Force within 120 days
          of the date of this order, whichever will result in a
          lower life cycle cost over the life of the facility;

          (3)  establish and implement, within 270 days of the 
          date of this order, a facility commissioning program
          that will ensure that the construction of such
          facilities meets the requirements outlined in this
          section before the facility is accepted into the
          Federal facility inventory; and

          (4)  Utilize passive solar design and adopt active 
          solar technologies where they are cost-effective.

     (b) New Leases For Existing Facilities.  To the extent
practicable and permitted by law, agencies entering into leases,
including the renegotiation or extension of existing leases,
shall identify the energy and water consumption of those
facilities and seek to incorporate provisions into each lease
that minimize the cost of energy and water under life cycle
analysis, while maintaining or improving occupant health and
safety.  These requirements may include renovation of proposed
space prior to or within the first year of each lease. 
Responsible agencies shall seek to negotiate the cost of the
lease, taking into account the reduced energy and water costs
during the term of the lease.

     (c)  Government-Owned Contractor-Operated Facilities.  All
Government owned contractor-operated facilities shall comply with
the goals and requirements of this order.  Energy and water
management goals shall be incorporated into their management
contracts.

Sec. 307. Showcase Facilities.  (a) New Building Showcases.  When
an agency constructs at least five buildings in a year, it shall
designate at least one building, at the earliest stage of
development, to be a showcase highlighting advanced technologies
and practices for energy efficiency, water conservation, or use
of solar and other renewable energy.

     (b)  Demonstrations in Existing Facilities.  Each agency
shall designate one of its major buildings to become a showcase
to highlight energy or water efficiency and also shall attempt to
incorporate cogeneration, solar and other renewable energy
technologies, and indoor air quality improvements.  Selection of
such buildings shall be based on considerations such as the level
of nonfederal visitors, historic significance, and the likelihood
that visitors will learn from displays and implement similar
projects.  Within 180 days of the date of this order, each agency
shall develop and implement plans and work in cooperation with
DOE and, where appropriate, in consultation with the General
Services Administration ("GSA"), the Environmental Protection
Agency ("EPA"), and other appropriate agencies, to determine the
most effective and cost-effective strategies to implement these
demonstrations.

Sec. 308. Annual Reporting Requirements.  (a) As required under
the Act, the head of each agency shall report annually to the
Secretary of Energy and OMB, in a format specified by the
Secretary and OMB after consulting with the 656 Committee.  The
report shall describe the agency's progress in achieving the
goals of this order.

     (b)  The Secretary of Energy shall report to the President
and the Congress annually on the implementation of this order. 
The report should provide information on energy and water use and
cost data and shall provide the greatest level of detail
practicable for buildings and facilities by energy source.

Sec. 309. Report on Full Fuel Cycle Analysis.  DOE shall prepare
a report on the issues involved in instituting life cycle
analysis for Federal energy and product purchases that address
the full fuel cycle costs, including issues concerning energy
exploration, development, processing, transportation, storage,
distribution, consumption, and disposal, and related impacts on
the environment.  The report shall examine methods for conducting
life cycle analysis and implementing such analysis in the Federal
sector and shall make appropriate recommendations.  The report
shall be forwarded to the President for review.

Sec. 310. Agency Accountability.  One year after the date of this
order, and every 2 years thereafter, the President's Management
Council shall report to the President about efforts and actions
by agencies to meet the requirements of this order.  In addition,
each agency head shall designate a senior official, at the
Assistant Secretary level or above, to be responsible for
achieving the requirements of this order and shall appoint such
official to the 656 Committee.  The 656 Committee shall also work
to ensure the implementation of this order.  The agency senior
official and the 656 Committee shall coordinate implementation
with the Federal Environmental Executive and Agency Environmental
Executives established under Executive Order No. 12873.

PART 4--USE OF INNOVATIVE FINANCING AND CONTRACTUAL MECHANISMS

Sec. 401. Financing Mechanisms.  In addition to available
appropriations, agencies shall utilize innovative financing and
contractual mechanisms, including, but not limited to, utility
demand side management programs, shared energy savings contracts,
and energy savings performance contracts, to meet the goals and
requirements of the Act and this order.

Sec. 402. Workshop for Agencies.  Within a reasonable time of the
date of this order, the Director of OMB, or his or her designee,
and the Task Force shall host a workshop for agencies regarding
financing and contracting for energy efficiency, water
efficiency, and renewable technology projects.  Based on the
results of that meeting, the Administrator, Office of Procurement
Policy ("OFPP"), shall assist the Administrator of General
Services and the Secretary of Energy in eliminating unnecessary
regulatory and procedural barriers that slow the utilization of
such audit, financing, and contractual mechanisms or complicate
their use.  All actions that are cost-effective shall be
implemented through the process required in section 403 of this
order.

Sec. 403. Elimination of Barriers.  Agency heads shall work with
their procurement officials to identify and eliminate internal
regulations, procedures, or other barriers to implementation of
the Act and this order.  DOE shall develop a model set of
recommendations that will be forwarded to the Administrator of
OFPP in order to assist agencies in eliminating the identified
barriers.

PART 5--TECHNICAL ASSISTANCE, INCENTIVES, AND AWARENESS

Sec. 501. Technical Assistance.  (a) To assist Federal energy
managers in implementing energy efficiency and water conservation
projects, DOE shall, within 180 days of the date of this order,
develop and make available through the Task Force:

          (1)  guidance explaining the relationship between water
          use and energy consumption and the energy savings
          achieved through water conservation measures;

          (2)  a model solicitation and implementation guide for 
          innovative funding mechanisms referenced in section 401
          of this order;

          (3)  a national list of companies providing water 
          services in addition to the list of qualified energy
          service companies as required by the Act;

          (4)  the capabilities and technologies available
          through the national energy laboratories; and

          (5)  an annually-updated guidance manual for Federal 
          energy managers that includes, at a minimum, new sample
          contracts or contract provisions, position
          descriptions, case studies, recent guidance, and
          success stories.

     (b)  The Secretary of Energy, in coordination with the
Administrator of General Services, shall make available through
the Task Force, within 180 days of the date of this order:

          (1)  the national list of qualified water and energy 
          efficiency contractors for inclusion on a Federal
          schedule; and

          (2)  a model provision on energy efficiency and water
          conservation, for inclusion in new leasing contracts.

     (c)  Within 180 days of the date of this order, the
Administrator of General Services shall:

          (1)  contact each utility that has an area-wide
          contract with GSA to determine which of those utilities
          will perform "no-cost" audits for energy efficiency and
          water conservation and potential solar and other
          renewable energy sources that comply with Federal life
          cycle costing procedures set forth in Subpart A, 10 CFR
          436;

          (2)  for each energy and water utility serving the 
          Federal Government, determine which of those utilities
          offers demand-side management services and incentives
          and obtain a list and description of those services and
          incentives; and

          (3)  prepare a list of those utilities and make that
list available to all Federal property management agencies
through the Task Force.

     (d)  Within 18 months of the date of this order, the
Administrator of General Services, in consultation with the
Secretary of Energy, shall develop procurement techniques,
methods, and contracts to speed the purchase and installation of
energy, water, and renewable energy technologies in Federal
facilities.  Such techniques, methods, and contracts shall be
designed to utilize both direct funding by the user agency,
including energy savings performance contracting, and utility
rebates.  To the extent permitted by law, the Administrator of
OFPP shall assist the Administrator of General Services and the
Secretary of Energy by eliminating unnecessary regulatory and
procedural barriers that would slow the implementation of such
methods, techniques, or contracts or complicate their use.

     (e)  Agencies are encouraged to seek technical assistance
from DOE to develop and implement solar and other renewable
energy projects.

     (f)  DOE shall conduct appropriate training for Federal
agencies to assist them in identifying and funding cost-effective
projects.  This training shall include providing software and
other technical tools to audit facilities and identify
opportunities.  To the extent that resources are available, DOE
shall work with utilities and private sector to encourage their
participation in Federal sector programs.

     (g)  DOE, in coordination with EPA, GSA, and the Department
of Defense ("DOD"), shall develop technical assistance services
for agencies to help identify energy efficiency, water
conservation, indoor air quality, solar and other renewable
energy projects, new building design, fuel switching, and life
cycle cost analysis.  These services shall include, at a minimum,
a help line, computer bulletin board, information and education
materials, and project tracking methods.  Agencies shall identify
assistance needed to meet the goals and requirements of the Act
and this order and seek such assistance from DOE.

     (h)  The Secretary of Energy and the Administrator of
General Services shall explore ways to stimulate energy
efficiency, water conservation, and use of solar and other
renewable energy sources and shall study options such as new
building performance guidelines, life cycle value engineering,
and designer/builder incentives such as award fees.  The studies
shall be completed within 270 days of the date of this order. 
OFPP will issue guidance to agencies on life cycle value
engineering within 6 months of the completion of the studies.

     (i)  The Secretary of Energy and the Administrator of
General Services shall develop and distribute through the Task
Force a model building commissioning program within 270 days of
the date of this order.

     (j)  The lists, guidelines, and services in this section of
the order shall be updated periodically.

Sec. 502. Retention of Savings and Rebates.  (a) Within a
reasonable time after the date of this order, the Direct of OMB,
along with the Secretary of Energy, the Secretary of Defense, and
the Administrator of General Services, to the extent practicable
and permitted by law, shall develop guidelines and implement
procedures to allow agencies, in fiscal year 1995 and beyond, to
retain utility rebates and incentives received by the agency and
savings from energy efficiency and water conservation efforts as
provided in section 152 of the Energy Policy Act of 1992 and 10
U.S.C. 2865 and 2866.

Sec. 503. Performance Evaluations.  To recognize the
responsibilities of facility managers, designers, energy
managers, their superiors, and, to the extent practicable and
appropriate, others critical to the implementation of this order,
heads of agencies shall include successful implementation of
energy efficiency, water conservation, and solar and other
renewable energy projects in their position descriptions and
performance evaluations.

Sec. 504. Incentive Awards.  Agencies are encouraged to review
employee incentive programs to ensure that such programs
appropriately reward exceptional performance in implementing the
Act and this order.  Such awards may include monetary incentives
such as Quality Step Increases, leave time awards and
productivity gainsharing, and nonmonetary and honor awards such
as increased authority, additional resources, and a series of
options from which employees or teams of employees can choose.

Sec. 505. Project Teams/Franchising.  (a) Agencies are encouraged
to establish Energy Efficiency and Environmental Project Teams
("Project Teams") to implement energy efficiency, water
conservation, and solar and other renewable energy projects
within their respective agencies.  DOE shall develop a program to
train and support the Project Teams, which should have particular
expertise in innovative financing, including shared energy
savings and energy saving performance contracting.  The purpose
of the program is to enable project teams to implement projects
quickly and effectively in their own agencies.

     (b)  Agencies are encouraged to franchise the services of
their Project Teams.  The ability to access the services of other
agencies' teams will foster excellence in project implementation
through competition among service providers, while providing an
alternative method to meet or exceed the requirements of the Act
and this order for agencies that are unable to devote sufficient
personnel to implement projects.

Sec. 506. FEMP Account Managers.  FEMP shall develop a customer
service program and assign account managers to agencies or
regions so that each project may have a designated account
manager.  When requested by an agency, the account manager shall
start at the audit phase and follow a project through
commissioning, evaluation, and reporting.  The account manager
shall provide technical assistance and shall have responsibility
to see that all actions possible are taken to ensure success of
the project.

Sec. 507. Procurement of Energy Efficient Products by Federal
Agencies.  (a) "Best Practice" Technologies.  Agencies shall
purchase energy-efficient products in accordance with the
guidances issued by OMB, in consultation with the Defense
Logistics Agency ("DLA"), DOE, and GSA, under section 161 of the
Energy Policy Act of 1992.  The guidelines shall include listings
of energy-efficient products and practices used in the Federal
Government.  At a minimum, OMB shall update the listings
annually.  DLA, DOE, and GSA shall update the portions of the
listings for which they have responsibility as new products
become available and conditions change.

          (1)  Each agency shall purchase products listed as 
          energy-efficient in the guidelines whenever
          practicable, and whenever they meet the agency's
          specific performance requirements and are cost-
          effective.  Each agency shall institute mechanisms to
          set targets and measure progress.

          (2)  To further encourage a market for highly-energy-
          efficient products, each agency shall increase, to the
          extent practicable and cost-effective, purchases of
          products that are in the upper 25 percent of energy
          efficiency for all similar products, or products that
          are at least 10 percent more efficient than the minimum
          level that meets Federal standards.  This requirement
          shall apply wherever such information is available,
          either through Federal or industry-approved testing and
          rating procedures.

          (3)  GSA and DLA, in consultation with DOE, other 
          agencies, States, and industry and other nongovernment
          organizations, shall provide all agencies with
          information on specific products that meet the energy-
          efficiency criteria of this section.  Product
          information should be made available in both printed
          and electronic formats.

     (b) Federal Market Opportunities.  DOE, after consultation
with industry, utilities, and other interested parties, shall
identify advanced energy-efficient and water-conserving
technologies that are technically and commercially feasible but
not yet available on the open market.  These technologies may
include, but are not limited to, the advanced appliance
technologies referenced in section 127 of the Energy Policy Act
of 1992.  DOE, in cooperation with OMB, GSA, DOD, the National
Institute of Standards and Technology ("NIST"), and EPA, shall
issue a "Federal Procurement Challenge" inviting each Federal
agency to commit a specified fraction of their purchases within a
given time period to advanced, high-efficiency models of
products, provided that these anticipated future products can
meet the agency's energy performance, functionality, and cost
requirements.

     (c)  Accelerated Retirement of Inefficient Equipment.  DOE,
in consultation with GSA and other agencies, shall establish
guidelines for the cost-effective early retirement of older,
inefficient appliances and other energy and water-using equipment
in Federal facilities.  Such guidelines may take into account
significant improvements in energy efficiency and water
conservation, opportunities to down-size or otherwise optimize
the replacement equipment as a result of associated improvements
in building envelope, system, or industrial process efficiency
and reductions in pollutant emissions