CLARIFICATION OF ENERGY CONSERVATION MEASURES FOR THE DEPARTMENT OF DEFENSE.

SEC. 2804. CLARIFICATION OF ENERGY CONSERVATION MEASURES FOR THE DEPARTMENT OF DEFENSE. (a) Energy Efficient Maintenance.—Subsection (a) of section 2865 of title 10, United States Code, is amended— (1) in paragraph (3), by inserting “, including energy efficient maintenance”, after “conservation measures”; and (2) by adding at the end the following new paragraph: “(4) In paragraph (3), the term ‘energy efficient maintenance’ includes— “(A) the repair by replacement of equipment or systems, such as lighting, heating, or cooling equipment or systems or industrial processes, with technology that— “(i) will achieve the most cost-effective 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 reduced costs through energy savings”. (b) Use of Savings and Use of Proceeds From Electricity Sales.—Subsection (b) of such section is amended— (1) in paragraph (1)— 107 STAT. 1886 (A) by striking out “The Secretary shall provide that two-thirds” and inserting in lieu thereof “Two-thirds”; and (B) by striking out “for any fiscal year beginning after fiscal year 1990”; and (2) in paragraph (2), by striking out “(2) The amount” and all that follows through “the Secretary of Defense.” and inserting in lieu thereof the following: “(2) The Secretary shall provide that the amount that remains available for obligation under paragraph (1) and section 2866(b) of this title, and the funds made available under section 2483(b)(2) of this title, shall be used as follows: “(A) One-half of the amount shall be used for the implementation of additional energy conservation measures and 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 savings referred to in paragraph (1) or in section 2866(b) of this title.”. (c) Covered Utilities.—Subsection (d)(1) of such section is amended by adding before the period the following: “or by any utility for water conservation activities”.