Presidential DocumentExecutive Order 1289394-2261
Principles for Federal Infrastructure Investments
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 31, 1994
Signed
January 26, 1994
Issuing agencies
Executive Office of the President
Full Text
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<title>Federal Register, Volume 59 Issue 20 (Monday, January 31, 1994)</title>
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[Federal Register Volume 59, Number 20 (Monday, January 31, 1994)]
[Presidential Documents]
[Pages 4233-4235]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 94-2261]
[[Page Unknown]]
[Federal Register: January 31, 1994]
Presidential Documents
Federal Register
Vol. 59, No. 20
Monday, January 31, 1994
____________________________________________________________________
Title 3--
The President
Executive Order 12893 of January 26, 1994
Principles for Federal Infrastructure Investments
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 protection.
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 principles:
(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 costs should be quantified and
monetized to the maximum extent practicable. All types
of benefits and costs, both market and nonmarket,
should be considered. To the extent that environmental
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, but 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 features, but also on
operational practices. To improve these practices,
agencies should conduct periodic reviews of the
operation and maintenance of existing facilities.
(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 techniques.
(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 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 recipients' 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 programs.
Sec. 6. Guidance. The Office of Management and Budget
shall provide guidance to the agencies on the
implementation of this order.
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, its agencies or instrumentalities, its
officers or employees, or any other person.
(Presidential Sig.)<Clinton1>><Clinton2>
THE WHITE HOUSE,
January 26, 1994.
[FR Doc. 94-2261
Filed 1-27-94; 3:45 pm]
Billing code 3195-01-P
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</html>Indexed from Federal Register on January 31, 1994.
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