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EO 12893Executive OrderClinton · D Quiet signal

Executive Order 12893

Principles for Federal Infrastructure Investments

This executive order establishes cost-benefit analysis and efficiency principles for federal infrastructure spending on transportation, water, energy, and environmental programs. It requires agencies to submit implementation plans by March 15, 1994, and to apply these principles to budget submissions starting with fiscal year 1996 and legislative proposals beginning March 15, 1994.

Federal Register 59 FR 4233
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Impact dates

  1. FY 1996 budget submission preparation (principles apply to major programs >$50M)

  2. Agencies submit initial implementation plans to OMB

  3. Agencies must employ principles for legislative proposals

Key directives

  • Agencies shall submit initial implementation plans to OMB by March 15, 1994
  • Plans must list actions to provide data and analysis for future budget submissions
  • Plans should be consistent with OMB Circular A-94
  • Beginning with FY 1996 budget submission, agencies must use principles to justify major infrastructure programs (>$50M annual)
  • Beginning March 15, 1994, agencies must employ section 2 principles for legislative proposals and provide supporting analyses at OMB request
  • Agencies shall seek private sector participation in infrastructure investment and management
  • Federal Government should promote market-based mechanisms for managing infrastructure

Who is ordered

Timeline

Immediate

  • Agencies must develop plans for systematic benefit-cost analysis
  • OMB to provide implementation guidance

Near term (90d)

  • Initial plans due to OMB by March 15, 1994
  • Legislative proposals must employ section 2 principles starting March 15, 1994

Long term

  • FY 1996 budget submissions must use principles to justify major infrastructure programs (>$50M annual)
  • Ongoing requirement for periodic operational reviews and private sector participation efforts

Risks & tensions

  • Nonmarket benefits (environmental) theoretically given 'same weight' as market benefits, but quantification requirement may systematically undervalue them
  • Private sector participation mandate may conflict with public interest in some infrastructure areas
  • Judicial review disclaimer (Section 7) means no enforcement mechanism beyond OMB pressure
  • Vague: 'should' vs 'shall' language creates uneven binding force across provisions
Executive Order 12893: Principles for Federal Infrastructure Investments · Executive Orders