This paper is one of several reports being prepared by the Energy Task Force on the impact of energy supply and cost trends on nonprofit educational institutions. This particular report focuses on the need to render educational facilities more energy-efficient through a program of capital investments focused on the rehabilitation of existing buildings. The report identifies the advantages offered by federal support of a building rehabilitation program that reduces both energy consumption and costs in the educational sector; it also outlines a phased investment plan for educational institutions involving progressive levels of technical sophistication and expenditure. Several tables that summarize survey data on the energy consumption and energy costs of 46 American colleges and universities are also included. Although the quantitative data applies specifically to institutions of higher education, most of the report applies equally to elementary and secondary schools as well. (Author/JG)