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TITLE X — GENERAL PROVISIONS

P. L. 108-375

House Conference Report 108-767

(a) IN GENERAL. — Section 801(c) of the National Energy Conservation Policy Act (42 U.S.C. 8287(c)) is amended by striking ‘‘2003’’ and inserting ‘‘2006’’.

(b) PAYMENT OF COSTS. — Section 802 of the National Energy Conservation Policy Act (42 U.S.C. 8287a) is amended by inserting ‘‘, water, or wastewater treatment’’ after ‘‘payment of energy’’.

(c) ENERGY SAVINGS. — Section 804(2) of the National Energy Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to read as follows:

‘‘(2) The term ‘energy savings’ means a reduction in the cost of energy, water, or wastewater treatment, from a base cost established through a methodology set forth in the contract, used in an existing federally owned building or buildings or other federally owned facilities as a result of —

‘‘(A) the lease or purchase of operating equipment, improvements, altered operation and maintenance, or technical services;

‘‘(B) the increased efficient use of existing energy sources by cogeneration or heat recovery, excluding any cogeneration process for other than a federally owned building or buildings or other federally owned facilities; or

‘‘(C) the increased efficient use of existing water sources in either interior or exterior applications.’’.

(d) ENERGY SAVINGS CONTRACT. — Section 804(3) of the National Energy Conservation Policy Act (42 U.S.C. 8287c(3)) is amended to read as follows:

‘‘(3) The terms ‘energy savings contract’ and ‘energy savings performance contract’ mean a contract that provides for the performance of services for the design, acquisition, installation, testing, and, where appropriate, operation, maintenance, and repair, of an identified energy or water conservation measure or series of measures at 1 or more locations. Such contracts shall, with respect to an agency facility that is a public building (as such term is defined in section 3301 of title 40, United States Code), be in compliance with the prospectus requirements and procedures of section 3307 of title 40, United States Code.’’.

(e) ENERGY OR WATER CONSERVATION MEASURE.— Section 804(4) of the National Energy Conservation Policy Act (42 U.S.C. 8287c(4)) is amended to read as follows:

‘‘(4) The term ‘energy or water conservation measure’ means —

‘‘(A) an energy conservation measure, as defined in section 551; or

‘‘(B) a water conservation measure that improves the efficiency of water use, is life-cycle cost-effective, and involves water conservation, water recycling or reuse, more efficient treatment of wastewater or stormwater, improvements in operation or maintenance efficiencies, retrofit activities, or other related activities, not at a Federal hydroelectric facility.’’.

(f) REVIEW. — Not later than 180 days after the date of the enactment of this Act, the Secretary of Energy shall complete a review of the Energy Savings Performance Contract program to identify statutory, regulatory, and administrative obstacles that prevent Federal agencies from fully utilizing the program. In addition, this review shall identify all areas for increasing program flexibility and effectiveness, including audit and measurement verification requirements, accounting for energy use in determining savings, contracting requirements, including the identification of additional qualified contractors, and energy efficiency services covered. The Secretary shall report these findings to Congress and shall implement identified administrative and regulatory changes to increase program flexibility and effectiveness to the extent that such changes are consistent with statutory authority.

(g) EXTENSION OF AUTHORITY. — Any energy savings performance contract entered into under section 801 of the National Energy Conservation Policy Act (42 U.S.C. 8287) after October 1, 2003, and before the date of enactment of this Act, shall be deemed to have been entered into pursuant to such section 801 as amended by subsection (a) of this section.

The Senate amendment contained a provision (sec. 1091) that would reauthorize energy savings performance contract authority under section 802 of the National Energy Policy Act (42 U.S.C 8287a) for the Department of Defense and other federal agencies until October 1, 2006.  The provision would also authorize water or wastewater treatment projects to be considered under an energy savings performance contract.

The House bill contained no similar provision.

The House recedes with an amendment to reauthorize this authority until October 1, 2006.