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Executive Order: Strengthening Federal Environmental, Energy, and

Transportation Management

Sec. 2. Goals for Agencies. In implementing the policy set forth in section 1 of this order,
the head of each agency shall:

(a) improve energy efficiency and reduce greenhouse gas emissions of the agency,
through reduction of energy intensity by (i) 3 percent annually through the end of
fiscal year 2015, or (ii) 30 percent by the end of fiscal year 2015, relative to the
baseline of the agency's energy use in fiscal year 2003;

(c) beginning in FY 2008, reduce water consumption intensity, relative to the baseline
of the agency's water consumption in fiscal year 2007, through life-cycle cost-
effective measures by 2 percent annually through the end of fiscal year 2015 or 16
percent by the end of fiscal year 2015;

d) within 30 days after the date of this order (i) designate a senior civilian officer of
the United States, compensated annually in an amount at or above the amount payable
at level IV of the Executive Schedule, to be responsible for implementation of this
order within the agency, (ii) report such designation to the Director of the Office of
Management and Budget and the Chairman of the Council on Environmental Quality,
and (iii) assign the designated official the authority and duty to (A) monitor and
report to the head of the agency on agency activities to carry out subsections (a) and
(b) of this section, and (B) perform such other duties relating to the implementation of
this order within the agency as the head of the agency deems appropriate;

(e) ensure that contracts entered into after the date of this order for contractor operation
of government-owned facilities or vehicles require the contractor to comply with the
provisions of this order with respect to such facilities or vehicles to the same extent as the
agency would be required to comply if the agency operated the facilities or vehicles;

From the US Department of Energy, Federal Energy Management Program

Effective O&M (Operations and Maintenance) is one of the most cost-effective methods
for ensuring reliability, safety, and energy efficiency. Inadequate maintenance of energy-
using systems is a major cause of energy waste in both the Federal government and the
private sector. Energy losses from steam, water and air leaks, uninsulated lines,
maladjusted or inoperable controls, and other losses from poor maintenance are often
considerable. Good maintenance practices can generate substantial energy savings and
should be considered a resource. Moreover, improvements to facility maintenance
programs can often be accomplished immediately and at a relatively low cost.
O&M are the activities related to the performance of routine, preventive, predictive,
scheduled, and unscheduled actions aimed at preventing equipment failure or decline
with the goal of increasing efficiency, reliability, and safety.

Operational Efficiency represents the life-cycle cost-effective mix of preventive,
predictive, and reliability-centered maintenance technologies, coupled with equipment
calibration, tracking, and computerized maintenance management capabilities all
targeting reliability, safety, occupant comfort, and system efficiency.

Energy Savings and Beyond
It has been estimated that O&M programs targeting energy efficiency can save 5% to
20% on energy bills without a significant capital investment. From small to large sites,
these savings can represent thousands to hundreds-of-thousands of dollars each year, and
many can be achieved with minimal cash outlays.

Beyond the potential for significant cost and energy/resource savings, an O&M program
operating at its peak "operational efficiency" has other important implications:

• A well-functioning O&M program is a safe O&M program. Equipment is
maintained properly mitigating any potential hazard arising from deferred
• In most Federal buildings, the O&M staff are not only responsible for the
comfort, but also for the health and safety of the occupants. Of increasing
productivity (and legal) concern are indoor air quality (IAQ) issues within these
buildings. Proper O&M reduces the risks associated with the development of
dangerous and costly IAQ situations.
• Properly performed O&M ensures that the design life expectancy of equipment
will be achieved, and in some cases exceeded. Conversely, the costs associated
with early equipment failure are usually not budgeted for and often come at the
expense of other planned O&M activities.
• An effective O&M program more easily complies with Federal laws such as the
Clean Air Act and the Clean Water Act.
• A well functioning O&M program means not always answering complaints.
Rather, it is proactive in its response and corrects situations before they become
problems. This model minimizes callbacks and keeps occupants satisfied while
allowing more time for scheduled maintenance.

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