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Executive Order 12893

Issued by William J. Clinton on Wednesday 26 January 1994

Principles for Federal Infrastructure Investments

Federal Register, Volume 59 Issue 20 (Monday, January 31, 1994)

[Federal Register Volume 59, Number 20 (Monday, January 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[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 

                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 

                (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 

                    (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 
                    (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 

                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.)>

                THE WHITE HOUSE,

                    January 26, 1994.

[FR Doc. 94-2261
Filed 1-27-94; 3:45 pm]
Billing code 3195-01-P

Revokes: EO 11063, November 20, 1962 (in part); EO 12259, December 31, 1980

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