On September 10, 1973, President Nixon issued Executive Order No. 11738, which provides that federal contracts, grants, and loans may not be awarded to persons or facilities violating the Federal Water Pollution Control and Clean Air Acts. This directive supersedes Executive Order No. 11602 of June 29, 1971, which applied only to the Clean Air Act, and restates that order's provisions regarding exemption procedures, designation of convicted persons and facilities, and enforcement.

The order directs the Administrator of the Environmental Protection Agency to prepare and publish a list of persons and facilities that, despite conviction for violation of §113(c)(1) of the Clean Air Act or §309(c) of the FWPCA, have failed to correct the circumstances that led to their conviction. Persons on this list would be ineligible to receive federal contracts, grants, or loans. A clause requiring compliance with both statutes must be included in all federally awarded cntracts, grants, and loans. Federal contract and grant compliance officers are instructed to report suspected violations immediately, for enforcement action by the Department of Justice.