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TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

Subtitle C--Energy Security

P. L. 112-81

House Conference Report 112-329

(a) Purchase and Use of Renewable Energy Certificates- Section 2911(e) of title 10, United States Code, as amended by sections 2821(b)(1)(B) and 2823(a), is further amended by adding at the end the following new paragraph:

`(3)(A) The Secretary of Defense shall establish a policy to maximize savings for the bulk purchase of replacement renewable energy certificates in connection with the development of facility energy projects using renewable energy sources.

`(B) Under the policy required by subparagraph (A), the Secretary of a military department shall submit requests for the purchase of replacement renewable energy certificates to a centralized purchasing authority maintained by such department or the Defense Logistics Agency with expertise regarding--

`(i) the market for renewable energy certificates;

`(ii) the procurement of renewable energy certificates; and

`(iii) obtaining the best value for the military department by maximizing the purchase of renewable energy certificates from projects placed into service before January 1, 1999.

`(C) The centralized purchasing authority shall solicit industry for the most competitive offer for replacement renewable energy certificates, to include a combination of renewable energy certificates from new projects and projects placed into service before January 1, 1999.

`(D) Subparagraph (B) does not prohibit the Secretary of a military department from entering into an agreement outside of the centralized purchasing authority if the Secretary will obtain the best value by bundling the renewable energy certificates with the facility energy project through a power purchase agreement or other contractual mechanism at the installation.

`(E) Nothing in this paragraph shall be construed to authorize the purchase of renewable energy certificates to meet Federal goals or mandates in the absence of the development of a facility energy project using renewable energy sources.

`(F) This policy does not make the purchase of renewable energy certificates mandatory, but the policy shall apply whenever original renewable energy certificates are proposed to be swapped for replacement renewable energy certificates.'.

(b) Reporting Requirements- Section 2925(a) of title 10, United States Code, as amended by section 2822(d), is further amended--

(1) by redesignating paragraphs (4) through (11) as paragraphs (5) through (12), respectively; and

(2) by inserting after paragraph (3) the following new paragraph:

`(4) In addition to the information contained in the table listing energy projects financed through third party financing mechanisms, as required by paragraph (3), the table also shall list any renewable energy certificates associated with each project, including information regarding whether the renewable energy certificates were bundled or unbundled, the purchasing authority for the renewable energy certificates, and the price of the associated renewable energy certificates.'.

The House bill contained a provision (sec. 2824) that would require the Secretary of Defense to establish a policy to maximize savings by directing the centralized, bulk purchase of replacement renewable energy certificates in connection with the development of facility energy projects using renewable energy sources.

The Senate amendment did not contain a similar provision.

The Senate recedes.

House Report 112-078

SECTION 2824--USE OF CENTRALIZED PURCHASING AGENTS FOR RENEWABLE ENERGY CERTIFICATES TO REDUCE COST OF FACILITY ENERGY PROJECTS USING RENEWABLE ENERGY SOURCES AND IMPROVE EFFICIENCIES

This section would amend section 2911(e) of title 10, United States Code, to direct the Secretary of Defense to establish a policy requiring centralized, bulk purchase of replacement renewable energy certificates when entering into agreements for facility energy projects involving renewable technologies to maximize savings for the Department of Defense. This will help the Department of Defense achieve the goal regarding the consumption of electricity from renewable energy sources established by section 203 of the Energy Policy Act of 2005 (42 U.S.C. 15852).