DEPARTMENT OF DEFENSE ENERGY SAVINGS PROGRAM

SEC. 2851. DEPARTMENT OF DEFENSE ENERGY SAVINGS PROGRAM (a) In General.— Subchapter III of chapter 169 of title 10, United States Code, is amended by adding at the end the following: “§ 2865. Energy savings at military installations “(a) (1) The Secretary of Defense shall designate an energy performance goal for the Department of Defense for the years 1991 through 2000. “(2) To achieve the goal designated under paragraph (1), the Secretary shall develop a comprehensive plan to identify and accomplish energy conservation measures to achieve maximum cost-effective energy savings. “(3) For the purpose of implementing any energy performance plan, the Secretary shall provide that the selection of energy conservation measures under such plan shall be limited to those with a positive net present value over a period of 10 years or less. “(b) (1) The Secretary shall provide that two-thirds of the portion 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 and financial incentives described in paragraph (3)(B), for any fiscal year beginning after fiscal year 1990 shall remain available for obligation under paragraph (2) through the end of the fiscal year following the fiscal year for which the funds were appropriated, without additional authorization or appropriation. “(2) The amount that remains available for obligation under paragraph (1) shall be utilized as follows: “(A) One-half of the amount shall be used for the implementation of additional energy conservation measures at such buildings, facilities, or installations of the Department of Defense as the head of the department, agency, or instrumentality that realized the savings may designate in accordance with regulations prescribed by the Secretary of Defense. “(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— “(A) 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 electricity demand or for energy conservation; and “(B) may authorize any military installation to accept any financial incentive, generally available from any such utility, to104 STAT. 1804 adopt technologies and practices that the Secretary determines are cost-effective for the Federal Government. “(c) (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 as well as the private sector. “(2) (A) In carrying out paragraph (1), the Secretary of Defense may— “(i) 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; “(ii) designate from the statements received, with an update at least annually, those firms that are presumptively qualified to provide shared energy savings services; “(iii) 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 “(iv) 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. “(B) 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. “(d) Beginning with fiscal year 1991 and by no later than December 31, 1991, and of each year thereafter, the Secretary of Defense shall transmit an annual report to the Congress containing a description of the actions taken to carry out this section, and the savings realized from such actions, during the fiscal year ending in the year in which the report is made.”. (b) Clerical Amendment.— The table of contents for such subchapter is amended by adding at the end the following: “2865. Energy savings at military installations.”.