USE OF FINANCIAL INCENTIVES PROVIDED AS PART OF ENERGY SAVINGS AND WATER CONSERVATION ACTIVITIES.

SEC. 2804. USE OF FINANCIAL INCENTIVES PROVIDED AS PART OF ENERGY SAVINGS AND WATER CONSERVATION ACTIVITIES. (a) Energy Savings.—Section 2865 of title 10, United States Code, is amended— (1) in subsection (b)—111 STAT. 1991 (A) in paragraph (1), by striking out “and financial incentives described in subsection (d)(2)”; (B) in paragraph (2), by striking out “section 2866(b)” both places it appears and inserting in lieu thereof “section 2866(a)(3)”; and (C) by adding at the end the following new paragraph: “(3) Financial incentives received from gas or electric utilities under subsection (d)(2), and from utilities for management of water demand or water conservation under section 2866(a)(2) 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.”; and (2) in subsection (f), by adding at the end the following new sentence: “The Secretary shall also include in each report the types and amount of financial incentives received under subsection (d)(2) and section 2866(a)(2) of this title during the period covered by the report and the appropriation account or accounts to which the incentives were credited”. (b) Water Conservation.—Section 2866(b) of such title is amended to read as follows: “(b) Use of Financial Incentives and Water Cost Savings.—(1) Financial incentives received under subsection (a)(2) shall be used as provided in section 2865(b)(3) of this title. “(2) Water cost savings realized under subsection (a)(3) shall be used as provided in section 2865(b)(2) of this title.”.