Restructuring, Tight Budgets and Executive Order 13123 Create New Incentives to Reduce Waste in Federal Industrial Facilities

Abstract

This paper discusses the positive impact that electric utility industry restructuring, a reduction in the size of government operations, and the recent Presidential Executive Order 13123 should have on energy use in Federal industrial facilities. The Federal government is the single largest U.S. consumer of energy. Federal industrial and energy intensive operations cost the taxpayer $600 million in FY 1998 and were exempt from mandatory energy reduction goals. Executive Order 13123 requires Federal agencies to reduce energy consumption in industrial and laboratory facilities by 25% by 2010 relative to 1990 levels and sets mandatory goals for energy intensive operations.