PROMOTION OF ENERGY SAVINGS AT MILITARY INSTALLATIONS.

SEC. 2801. PROMOTION OF ENERGY SAVINGS AT MILITARY INSTALLATIONS. (a) Energy Saving Activities.— Section 2865 of title 10, United States Code, is amended— (1) by striking out subsection (b)(3); (2) by redesignating subsection (d) as subsection (f); and (3) by inserting after subsection (c) the following new subsection: “(d) Energy Saving Activities.— (1) 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 electricity demand or for energy conservation. “(2) 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 cost effective for the Federal Government. “(3) Subject to paragraph (4), 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. “(4) (A) If an agreement under paragraph (3) provides for a utility to advance financing costs for the design or implementation of a program referred to m that paragraph to be repayed by the106 STAT. 2605 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. “(B) Subject to the availability of appropriations, repayment of costs advanced under subparagraph (A) shall be made from funds available to a military department for the purchase of utility services. “(C) An agreement under paragraph (3) 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.”. (b) Energy Conservation Construction Projects.— Such section is further amended by inserting after subsection (d), as added by subsection (a)(3), the following new subsection: “(e) Energy Conservation Construction Projects.— (1) 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. “(2) When a decision is made to carry out a project under paragraph (1), the Secretary of Defense shall notify in writing the Committees on Armed Services and Appropriations of the Senate and House of Representatives 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”. (c) Conforming Amendment.— Subsection (b)(1) of such section is amended by striking out “paragraph (3)(B)” and inserting in lieu thereof “subsection (d)(2)”. (d) Technical Amendment.— Subsection (f) of such section, as redesignated by subsection (a)(2), is amended by striking out “Beginning with fiscal year 1991 and by no later than December 31, 1991, and of each year thereafter,” and inserting in lieu thereof “Not later than December 31 of each year,”. (e) Clerical Amendments.— Such section is further amended— (1) in subsection (a), by inserting “Energy Performance Goal and Plan.—” after “(a)”; (2) in subsection (b), by inserting “Use of Energy Cost Savings.—” after “(b)”; (3) in subsection (c), by inserting “Shared Energy Savings Contracts.—” after “(c)”; and (4) in subsection (f), as redesignated by subsection (a)(2), by inserting “Annual Report.—” after “(f)”.