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.'.
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