HOME  |  CONTENTS  |  DISCUSSIONS  |  BLOG  |  QUICK-KITs|  STATES

Google

       Search WWW Search wifcon.com

Back to JWNDAA 2007 Contents

TITLE --TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

Subtitle E -- Energy Security

JWNDAA Section

House Conference Report 109-702

SEC. 2851. CONSOLIDATION AND ENHANCEMENT OF LAWS TO IMPROVE DEPARTMENT OF DEFENSE ENERGY EFFICIENCY AND CONSERVATION.

(a) Creation of New Chapter-

(1) REORGANIZATION OF SECTION 2865 OF TITLE 10- Title 10, United States Code, is amended by inserting after chapter 172 the following new chapter:

`CHAPTER 173--ENERGY SECURITY

`Subchapter

`I.  Energy Security Activities . . . . 2911

`II.  Energy-Related Procurement . . . . 2922

`III.  General Provisions . . . . 2925

`SUBCHAPTER I--ENERGY SECURITY ACTIVITIES

`Sec.

` 2911. Energy performance goals and plan for Department of Defense.

` 2912. Availability and use of energy cost savings.

` 2913. Energy savings contracts and activities.

` 2914. Energy conservation construction projects.

`2915. New construction: use of renewable forms of energy and energy efficient products.

`2916. Sale of electricity from alternate energy and cogeneration production facilities.

`2917. Development of geothermal energy on military lands.

`2918. Fuel sources for heating systems; prohibition on converting certain heating facilities.

`Sec. 2911. Energy performance goals and plan for Department of Defense

`(a) Energy Performance Goals-

(1) The Secretary of Defense shall submit to the congressional defense committees the energy performance goals for the Department of Defense regarding transportation systems, support systems, utilities, and infrastructure and facilities.

`(2) The energy performance goals shall be submitted annually not later than the date on which the President submits to Congress the budget for the next fiscal year under section 1105 of title 31 and cover that fiscal year as well as the next five, l0, and 20 years. The Secretary shall identify changes to the energy performance goals since the previous submission.

`(b) Energy Performance Plan- The Secretary of Defense shall develop, and update as necessary, a comprehensive plan to help achieve the energy performance goals for the Department of Defense.

`(c) Special Considerations- For the purpose of developing and implementing the energy performance goals and energy performance plan, the Secretary of Defense shall consider at a minimum the following:

`(1) Opportunities to reduce the current rate of consumption of energy.

`(2) Opportunities to reduce the future demand and the requirements for the use of energy.

`(3) Opportunities to implement conservation measures to improve the efficient use of energy.

`(4) Opportunities to pursue alternative energy initiatives, including the use of alternative fuels in military vehicles and equipment.

`(5) Cost effectiveness, cost savings, and net present value of alternatives.

`(6) The value of diversification of types and sources of energy used.

`(7) The value of economies-of-scale associated with fewer energy types used.

`(8) The value of the use of renewable energy sources.

`(9) The potential for an action to serve as an incentive for members of the armed forces and civilian personnel to reduce energy consumption or adopt an improved energy performance measure.

`(d) Selection of Energy Conservation Measures-

(1) For the purpose of implementing the energy performance plan, the Secretary of Defense shall provide that the selection of energy conservation measures, including energy efficient maintenance, shall be limited to those measures that--

`(A) are readily available;

`(B) demonstrate an economic return on the investment;

`(C) are consistent with the energy performance goals and energy performance plan for the Department; and

`(D) are supported by the special considerations specified in subsection (c).

`(2) In this subsection, the term `energy efficient maintenance' includes--

`(A) the repair of military vehicles, equipment, or facility and infrastructure systems, such as lighting, heating, or cooling equipment or systems, or industrial processes, by replacement with technology that--

`(i) will achieve energy savings over the life-cycle of the equipment or system being repaired; and

`(ii) will meet the same end needs as the equipment or system being repaired; and

`(B) improvements in an operation or maintenance process, such as improved training or improved controls, that result in energy savings.

`Sec. 2912. Availability and use of energy cost savings

`(a) Availability- An amount of the funds appropriated to the Department of Defense for a fiscal year that is equal to the amount of energy cost savings realized by the Department, including financial benefits resulting from shared energy savings contracts entered into under section 2913 of this title, shall remain available for obligation under subsection (b) until expended, without additional authorization or appropriation.

`(b) Use- The Secretary of Defense shall provide that the amount that remains available for obligation under subsection (a) and the funds made available under section 2916(b)(2) of this title shall be used as follows:

`(1) One-half of the amount shall be used for the implementation of additional energy conservation measures at buildings, facilities, or installations of the Department of Defense or related to vehicles and equipment of the Department, which are designated, in accordance with regulations prescribed by the Secretary of Defense, by the head of the department, agency, or instrumentality that realized the savings referred to in subsection (a).

`(2) One-half of the amount shall be used at the installation at which the savings were realized, as determined by the commanding officer of such installation consistent with applicable law and regulations, for--

`(A) improvements to existing military family housing units;

`(B) any unspecified minor construction project that will enhance the quality of life of personnel; or

`(C) any morale, welfare, or recreation facility or service.

`(c) Treatment of Certain Financial Incentives- Financial incentives received from gas or electric utilities under section 2913 of this title shall be credited to an appropriation designated by the Secretary of Defense. Amounts so credited shall be merged with the appropriation to which credited and shall be available for the same purposes and the same period as the appropriation with which merged.

`(d) Congressional Notification- The Secretary of Defense shall include in the budget material submitted to Congress in connection with the submission of the budget for a fiscal year pursuant to section 1105 of title 31 a separate statement of the amounts available for obligation under this section in that fiscal year.

`Sec. 2913. Energy savings contracts and activities

`(a) Shared Energy Savings Contracts-

(1) The Secretary of Defense shall develop a simplified method of contracting for shared energy savings contract services that will accelerate the use of these contracts with respect to military installations and will reduce the administrative effort and cost on the part of the Department of Defense as well as the private sector.

`(2) In carrying out paragraph (1), the Secretary of Defense may--

`(A) request statements of qualifications (as prescribed by the Secretary of Defense), including financial and performance information, from firms engaged in providing shared energy savings contracting;

`(B) designate from the statements received, with an update at least annually, those firms that are presumptively qualified to provide shared energy savings services;

`(C) select at least three firms from the qualifying list to conduct discussions concerning a particular proposed project, including requesting a technical and price proposal from such selected firms for such project; and

`(D) select from such firms the most qualified firm to provide shared energy savings services pursuant to a contractual arrangement that the Secretary determines is fair and reasonable, taking into account the estimated value of the services to be rendered and the scope and nature of the project.

`(3) In carrying out paragraph (1), the Secretary may also provide for the direct negotiation, by departments, agencies, and instrumentalities of the Department of Defense, of contracts with shared energy savings contractors that have been selected competitively and approved by any gas or electric utility serving the department, agency, or instrumentality concerned.

`(b) Participation in Gas or Electric Utility Programs- The Secretary of Defense shall permit and encourage each military department, Defense Agency, and other instrumentality of the Department of Defense to participate in programs conducted by any gas or electric utility for the management of energy demand or for energy conservation.

`(c) Acceptance of Financial Incentive, Goods, or Services- The Secretary of Defense may authorize any military installation to accept any financial incentive, goods, or services generally available from a gas or electric utility, to adopt technologies and practices that the Secretary determines are in the interests of the United States and consistent with the energy performance goals for the Department of Defense.

`(d) Agreements With Gas or Electric Utilities-

(1) The Secretary of Defense may authorize the Secretary of a military department having jurisdiction over a military installation to enter into agreements with gas or electric utilities to design and implement cost-effective demand and conservation incentive programs (including energy management services, facilities alterations, and the installation and maintenance of energy saving devices and technologies by the utilities) to address the requirements and circumstances of the installation.

`(2) If an agreement under this subsection provides for a utility to advance financing costs for the design or implementation of a program referred to in that paragraph to be repaid by the United States, the cost of such advance may be recovered by the utility under terms no less favorable than those applicable to its most favored customer.

`(3) Subject to the availability of appropriations, repayment of costs advanced under paragraph (2) shall be made from funds available to a military department for the purchase of utility services.

`(4) An agreement under this subsection shall provide that title to any energy-saving device or technology installed at a military installation pursuant to the agreement vest in the United States.

Such title may vest at such time during the term of the agreement, or upon expiration of the agreement, as determined to be in the best interests of the United States.

`Sec. 2914. Energy conservation construction projects

`(a) Projects Authorized- The Secretary of Defense may carry out a military construction project for energy conservation, not previously authorized, using funds appropriated or otherwise made available for that purpose.

`(b) Congressional Notification- When a decision is made to carry out a project under this section, the Secretary of Defense shall notify in writing the appropriate committees of Congress of that decision. The project may then be carried out only after the end of the 21-day period beginning on the date the notification is received by such committees or, if earlier, the end of the 14-day period beginning on the date on which a copy of the notification is provided in an electronic medium pursuant to section 480 of this title.

`SUBCHAPTER II--ENERGY-RELATED PROCUREMENT

`Sec.

`2922. Liquid fuels and natural gas: contracts for storage, handling, or distribution.

`2922a. Contracts for energy or fuel for military installations.

`2922b. Procurement of energy systems using renewable forms of energy.

`2922c. Procurement of gasohol as motor vehicle fuel.

`2922d. Procurement of fuel derived from coal, oil shale, and tar sands.

`2922e. Acquisition of certain fuel sources: authority to waive contract procedures; acquisition by exchange; sales authority.

`2922f. Preference for energy efficient electric equipment.

`SUBCHAPTER III--GENERAL PROVISIONS

`Sec.

`2925. Annual report.

`Sec. 2925. Annual report

`(a) Report Required- As part of the annual submission of the energy performance goals for the Department of Defense under section 2911 of this title, the Secretary of Defense shall submit a report containing the following:

`(1) A description of the progress made to achieve the goals of the Energy Policy Act of 2005 (Public Law 109-58) and the energy performance goals for the Department of Defense during the preceding fiscal year.

`(2) A description of the actions taken to implement the energy performance plan in effect under section 2911 of this title and carry out this chapter during the preceding fiscal year.

`(3) A description of the energy savings realized from such actions.

`(4) An estimate of the types and quantities of energy consumed by the Department of Defense and members of the armed forces and civilian personnel residing or working on military installations during the preceding fiscal year, including a breakdown of energy consumption by user groups and types of energy, energy costs, and the quantities of renewable energy produced or procured by the Department.

`(5) A description of the types and amount of financial incentives received under section 2913 of this title during the preceding fiscal year and the appropriation account or accounts to which the incentives were credited.

`(b) Initial Report- In the first report required under this section, the Secretary of Defense shall include the following:

`(1) Such recommendations for changes to this chapter as the Secretary considers appropriate to improve energy performance.

`(2) A description of how responsibility over energy performance is distributed within the Department of Defense and a discussion on whether such responsibilities should be consolidated within a single entity.

`(3) A discussion of the manner in which the Secretary intends to balance the considerations specified in subsection (c) of section 2911 of this title in developing and implementing the energy performance goals and energy performance plan.

`(4) A discussion of the extent to which non-direct energy costs are considered in making research and development, procurement, and construction decisions.'.

(2) CONFORMING REPEAL- Section 2865 of title 10, United States Code, is repealed.

(b) Inclusion of Additional Energy-Related Sections-

(1) TRANSFER AND REDESIGNATION OF CHAPTER 159 AND 169 PROVISIONS- Sections 2857, 2867, 2689, and 2690 of title 10, United States Code, are--

(A) transferred to chapter 173 of such title, as added by subsection (a)(1);

(B) inserted after section 2914; and

(C) redesignated as sections 2915, 2916, 2917, and 2918, respectively.

(2) TRANSFER AND REDESIGNATION OF CHAPTER 141 PROVISIONS- Sections 2388, 2394, 2394a, 2398, 2398a, 2404, and 2410c of such title are--

(A) transferred to chapter 173 of such title, as added by subsection (a)(1);

(B) inserted after the table of sections of subchapter II of such chapter; and

(C) redesignated as sections 2922, 2922a, 2922b, 2922c, 2922d, 2922e, and 2922f, respectively.

(3) CONFORMING AMENDMENTS- Chapter 173 of such title, as added by subsection (a)(1), is amended--

(A) in section 2915 (former section 2857), as transferred and redesignated by paragraph (1)--

(i) in subsection (a), by striking `would be practical and economically feasible' and inserting `is consistent with the energy performance goals and energy performance plan for the Department of Defense developed under section 2911 of this title and supported by the special considerations specified in subsection (c) of such section'; and

(ii) in subsection (b), by striking `in those cases in which use of such forms of energy has the potential for reduced energy costs';

(B) in subsection (b)(2) of section 2916 (former section 2867), as transferred and redesignated by paragraph (1), by striking `section 2865(a) of this title' and inserting `section 2911(b) of this title';

(C) in subsection (a)(1) of section 2922a (former section 2394), as transferred and redesignated by paragraph (2), by striking `section 2689 of this title' and inserting `section 2917 of this title';

(D) in section 2922b (former section 2394a), as transferred and redesignated by paragraph (2)--

(i) in subsection (a)--

(I) by striking `possible and will be cost effective, reliable, and otherwise suited' and inserting `possible, suited'; and

(II) by striking `his jurisdiction' and inserting `the jurisdiction of the Secretary, consistent with the energy performance goals and energy performance plan for the Department of Defense developed under section 2911 of this title, and supported by the special considerations specified in subsection (c) of such section';

(ii) in subsection (b)--

(I) by striking `cost effective and'; and

(II) by striking `section 2857 of this title' and inserting `section 2915 of this title'; and

(iii) by striking subsection (c); and

(E) in subsection (a) of section 2922f (former section 2410c), as transferred and redesignated by paragraph (2)--

(i) by striking `When cost effective, in' and inserting `In'; and

(ii) by striking `procurement, as the case may be.' and inserting `procurement, if providing such a preference is consistent with the energy performance goals and energy performance plan for the Department of Defense developed under section 2911 of this title and supported by the special considerations specified in subsection (c) of such section.'.

4) APPLICABILITY OF CHAPTER 169 DEFINITIONS- Section 2801(c) of such title is amended by inserting `and chapter 173 of this title' after `chapter' in the matter preceding paragraph (1).

(c) Clerical Amendments-

(1) REFERENCE TO NEW CHAPTER- The table of chapters at the beginning of subtitle A of title 10, United States Code, and at the beginning of part IV of such subtitle, are each amended by inserting after the item relating to chapter 172 the following new item:

`173. Energy Security............................... 2911'.

(2) CHAPTER 141- The table of sections at the beginning of chapter 141 of such title is amended by striking the items relating to sections 2388, 2394, 2394a, 2398, 2398a, 2404, and 2410c.

(3) CHAPTER 159- The table of sections at the beginning of chapter 159 of such title is amended by striking the items relating to sections 2689 and 2690.

(4) CHAPTER 169- The table of sections at the beginning of subchapter III of chapter 169 of such title is amended by striking the items relating to sections 2857, 2865, and 2867.

(d) Conforming Amendment to Water Conservation Authority- Subsection (b) of section 2866 of title 10, United States Code, is amended to read as follows:

`(b) Use of Financial Incentives and Water Cost Savings-

(1) Financial incentives received from utilities for management of water demand or water conservation under subsection (a)(2) shall be credited to an appropriation designated by the Secretary of Defense. Amounts so credited shall be merged with the appropriation to which credited and shall be available for the same purposes and the same period as the appropriation with which merged.

`(2) Water cost savings realized under subsection (a)(3) shall be used as follows:

`(A) One-half of the amount shall be used for water conservation activities at such buildings, facilities, or installations of the Department of Defense as may be designated (in accordance with regulations prescribed by the Secretary of Defense) by the head of the department, agency, or instrumentality that realized the water cost savings.

`(B) One-half of the amount shall be used at the installation at which the savings were realized, as determined by the commanding officer of such installation consistent with applicable law and regulations, for--

`(i) improvements to existing military family housing units;

`(ii) any unspecified minor construction project that will enhance the quality of life of personnel; or

`(iii) any morale, welfare, or recreation facility or service.

`(3) The Secretary of Defense shall include in the budget material submitted to Congress in connection with the submission of the budget for a fiscal year pursuant to section 1105 of title 31 a separate statement of the amounts available for obligation under this subsection in that fiscal year.'.

Consolidation and enhancement of laws to improve Department of Defense energy efficiency and conservation (sec. 2851)

The Senate amendment contained a provision (sec. 2806) that would amend section 2865 of title 10, United States Code, to require the Secretary of Defense to designate energy performance goals consistent, where appropriate, with the Energy Policy Act of 2005 (Public Law 109-58). The provision would also expand the application of the section to include the consideration of alternate energy initiatives for vehicles and military support equipment, and make other technical clarifications. The provision would require the Secretary to ensure energy efficient products that meet the requirements of the Secretary are included in the construction of new facilities for the Department of Defense.

The House bill contained no similar provision.

The House recedes with an amendment that would revise various sections in title 10, United States Code, related to energy usage and conservation, and would incorporate this provision within the revision. Elsewhere in this report, the conferees agree to include a separate provision on the use of energy efficient products in the construction of new facilities.

The conferees intend for the Secretary to establish energy performance goals across all aspects of military operations, training, and the Department’s facilities, which can be evaluated on a consistent basis to determine progress towards achievement. The conferees also acknowledge that certain energy saving measures adopted by the Secretary may not demonstrate an immediate economic payback. Therefore, the conferees agree to expand the Secretary’s flexibility to evaluate energy conservation measures to include consideration of alternate energy initiatives and energy reduction performance goals, as opposed to requiring the Secretary to assess measures based solely on a specific economic return within 10 years to justify the investment.

Senate Armed Services Committee Report 109-254

Inclusion of military transportation and support systems in energy savings programs (sec. 2806)

The committee recommends a provision that would amend section 2865 of title 10, United States Code, to require the Secretary of Defense to designate energy performance goals consistent, where appropriate, with the Energy Policy Act of 2005 (Public Law 109-58). The provision would also expand the application of the section to include the consideration of alternate energy initiatives for vehicles and military support equipment. The provision would also grant the Secretary the authority to consider longer positive net present value returns for certain equipment upgrades supporting industrial processes. The committee notes that recent technological advancements offer the opportunity for the Department of Defense to invest in resources which would conserve energy in military operations, in addition to traditional improvements to facility systems, utilities, and infrastructure. These new technologies, such as alternative fuel vehicles and more efficient engines, have the potential to save the Department substantial operation and maintenance funds in the current environment of relatively high energy prices.

The committee also recognizes that certain upgrades and improvements to large equipment items and systems supporting industrial facilities and processes offer a substantial return on investment over the life-cycle of the item or system, but not within ten years. The committee intends for the Secretary to have the discretion to assess these proposed investments with a more realistic positive net present value requirement.

ABOUT  l CONTACT

Where in Federal Contracting?