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Executive Order 13123

Greening the Government Through Efficient Energy Management

This executive order mandates comprehensive energy efficiency and renewable energy goals across all federal agencies, requiring 30-35% reductions in energy consumption and greenhouse gas emissions by 2005-2010, expanding solar installations, and institutionalizing life-cycle cost analysis, alternative financing mechanisms, and annual reporting to improve federal energy management.

Federal Register Open PDF 64 FR 30851

Impact dates

  1. 30% greenhouse gas reduction; 35% energy efficiency improvement; 25% industrial/lab energy reduction; 20,000 solar energy systems

  2. 30% energy efficiency improvement; 20% industrial/lab energy reduction

  3. ENERGY STAR building criteria for eligible facilities

  4. 2,000 solar energy systems installed at federal facilities

  5. DOE renewable energy guidance, goals, hydropower standards, bulk purchasing plan, greenhouse gas guidelines, water conservation goals

  6. First annual reports to President due

  7. DOE guidelines for industrial facilities, exemptions, baselines, life-cycle costs, source energy credit, water baselines; GSA guidance on life-cycle costs, renewable electricity info, ENERGY STAR tools, model lease provisions

  8. OMB guidance on FY 2001 budget requests; DOD/GSA sustainable design principles

  9. Agency energy teams formed

  10. Senior agency official designation reported to OMB

Key directives

  • reduce greenhouse gas emissions from facility energy use by 30% by 2010 (1990 baseline)
  • reduce energy consumption per gross square foot by 30% by 2005 and 35% by 2010 (1985 baseline)
  • reduce industrial/lab energy use by 20% by 2005 and 25% by 2010 (1990 baseline)
  • install 2,000 solar energy systems by end of 2000 and 20,000 by 2010
  • use life-cycle cost analysis for all investment decisions
  • maximize Energy-Savings Performance Contracts and utility energy-efficiency service contracts
  • procure ENERGY STAR and top-25% efficient products
  • designate senior agency official at Assistant Secretary level or above
  • form agency energy teams with procurement, legal, budget, management, and technical representatives
  • submit annual reports to President due January 1 each year beginning 2000
  • develop agency energy scorecards through OMB/DOE
  • revoke prior executive orders 12902, 12759, and 12845

Who is ordered

Timeline

Immediate

  • designation of senior agency officials due within 30 days
  • formation of agency energy teams due within 90 days

Near term (90d)

  • OMB guidance on FY 2001 budget requests due within 120 days
  • DOD and GSA sustainable design principles due within 120 days
  • DOE guidelines for industrial/lab facilities, exemptions, baselines, life-cycle costs, source energy credit, and water baselines due within 180 days
  • GSA guidance on life-cycle cost estimates, renewable electricity purchasing information, internet-based ENERGY STAR tools, and model lease provisions due within 180 days
  • first annual reports to President due January 1, 2000

Long term

  • 30% greenhouse gas reduction by 2010 relative to 1990
  • 30% energy efficiency improvement by 2005, 35% by 2010 relative to 1985
  • 20% industrial/lab energy reduction by 2005, 25% by 2010 relative to 1990
  • 2,000 solar systems by end of 2000; 20,000 by 2010
  • ENERGY STAR building criteria for eligible facilities by end of 2002
  • DOE renewable energy guidance, goals, hydropower standards, bulk purchasing plan, greenhouse gas guidelines, and water conservation goals due within 1 year

Risks & tensions

  • vague 'strive' language for renewable energy and source energy goals weakens enforceability
  • life-cycle cost-effectiveness loophole may allow agencies to avoid investments with higher upfront costs
  • DOD exemption for military operations creates significant carve-out for largest federal energy consumer
  • OMB budget constraint that requests 'must be within each agency's planning guidance level' may limit actual funding
  • reliance on Energy-Savings Performance Contracts assumes private sector contractor availability and favorable terms
  • annual reporting starting January 1, 2000 provides limited time for baseline establishment and implementation
  • water conservation goals deferred to DOE guidance within 1 year rather than set in order itself
Executive Order 13123: Greening the Government Through Efficient Energy Management · Executive Orders