There can still be a root password for emergencies, but it wouldn't be available for remote access -- ILOM or some other BMC (or even a serial port concentrator) would be configured for HSPD-12-compliant auth for remote console access, then you would use the root password for system access (though you could also just reboot into a separate operating system, since disk encryption isn't required except for mobile devices).
I'm not sure what the above poster's command or organization was doing to comply with HSPD-12, but they were most likely doing something. The compliant reports are generally public, also.