
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC2688]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
CHAPTER 159--REAL PROPERTY; RELATED PERSONAL PROPERTY; AND LEASE OF NON-
                             EXCESS PROPERTY
 
Sec. 2688. Utility systems: conveyance authority

    (a) Conveyance Authority.--The Secretary of a military department 
may convey a utility system, or part of a utility system, under the 
jurisdiction of the Secretary to a municipal, private, regional, 
district, or cooperative utility company or other entity. The conveyance 
may consist of all right, title, and interest of the United States in 
the utility system or such lesser estate as the Secretary considers 
appropriate to serve the interests of the United States.
    (b) Selection of Conveyee.--(1) If more than one utility or entity 
referred to in subsection (a) notifies the Secretary concerned of an 
interest in a conveyance under such subsection, the Secretary shall 
carry out the conveyance through the use of competitive procedures.
    (2) Notwithstanding paragraph (1), the Secretary concerned may use 
procedures other than competitive procedures, but only in accordance 
with subsections (c) through (f) of section 2304 of this title, to 
select the conveyee of a utility system (or part of a utility system) 
under subsection (a).
    (3) With respect to the solicitation process used in connection with 
the conveyance of a utility system (or part of a utility system) under 
subsection (a), the Secretary concerned shall ensure that the process is 
conducted in a manner consistent with the laws and regulations of the 
State in which the utility system is located to the extent necessary to 
ensure that all interested regulated and unregulated utility companies 
and other interested entities receive an opportunity to acquire and 
operate the utility system to be conveyed.
    (c) Consideration.--(1) The Secretary concerned shall require as 
consideration for a conveyance under subsection (a) an amount equal to 
the fair market value (as determined by the Secretary) of the right, 
title, or interest of the United States conveyed. The consideration may 
take the form of--
        (A) a lump sum payment; or
        (B) a reduction in charges for utility services provided by the 
    utility or entity concerned to the military installation at which 
    the utility system is located.

    (2) If the utility services proposed to be provided as consideration 
under paragraph (1) are subject to regulation by a Federal or State 
agency, any reduction in the rate charged for the utility services shall 
be subject to establishment or approval by that agency.
    (3) A contract for the receipt of utility services as consideration 
under paragraph (1), or any other contract for utility services entered 
into by the Secretary concerned in connection with the conveyance of a 
utility system under this section, may be for a period not to exceed 50 
years.
    (d) Treatment of Payments.--(1) A lump sum payment received under 
subsection (c) shall be credited, at the election of the Secretary 
concerned--
        (A) to an appropriation of the military department concerned 
    available for the procurement of the same utility services as are 
    provided by the utility system conveyed under this section;
        (B) to an appropriation of the military department available for 
    carrying out energy savings projects or water conservation projects; 
    or
        (C) to an appropriation of the military department available for 
    improvements to other utility systems.

    (2) Amounts so credited shall be merged with funds in the 
appropriation to which credited and shall be available for the same 
purposes, and subject to the same conditions and limitations, as the 
appropriation with which merged.
    (e) Notice-and-Wait Requirement.--The Secretary concerned may not 
make a conveyance under subsection (a) until--
        (1) the Secretary submits to the Committee on Armed Services and 
    the Committee on Appropriations of the Senate and the Committee on 
    Armed Services and the Committee on Appropriations of the House of 
    Representatives an economic analysis (based upon accepted life-cycle 
    costing procedures approved by the Secretary of Defense) 
    demonstrating that--
            (A) the long-term economic benefit of the conveyance to the 
        United States exceeds the long-term economic cost of the 
        conveyance to the United States; and
            (B) the conveyance will reduce the long-term costs of the 
        United States for utility services provided by the utility 
        system concerned; and

        (2) a period of 21 days has elapsed after the date on which the 
    economic analysis is received by the committees.

    (f) Additional Terms and Conditions.--(1) The Secretary concerned 
may require such additional terms and conditions in connection with a 
conveyance under subsection (a) as the Secretary considers appropriate 
to protect the interests of the United States.
    (2) The Secretary concerned shall require in any contract for the 
conveyance of a utility system (or part of a utility system) under 
subsection (a) that the conveyee manage and operate the utility system 
in a manner consistent with applicable Federal and State regulations 
pertaining to health, safety, fire, and environmental requirements.
    (g) Assistance for Construction, Repair, or Replacement of Utility 
Systems.--In lieu of carrying out a military construction project to 
construct, repair, or replace a utility system, the Secretary concerned 
may use funds authorized and appropriated for the project to facilitate 
the conveyance of the utility system under this section by making a 
contribution toward the cost of construction, repair, or replacement of 
the utility system by the entity to which the utility system is being 
conveyed. The Secretary concerned shall consider any such contribution 
in the economic analysis required under subsection (e).
    (h) Utility System Defined.--(1) In this section, the term ``utility 
system'' means any of the following:
        (A) A system for the generation and supply of electric power.
        (B) A system for the treatment or supply of water.
        (C) A system for the collection or treatment of wastewater.
        (D) A system for the generation or supply of steam, hot water, 
    and chilled water.
        (E) A system for the supply of natural gas.
        (F) A system for the transmission of telecommunications.

    (2) The term ``utility system'' includes the following:
        (A) Equipment, fixtures, structures, and other improvements 
    utilized in connection with a system referred to in paragraph (1).
        (B) Real property, easements, and rights-of-way associated with 
    a system referred to in that paragraph.

    (i) Limitation.--This section shall not apply to projects 
constructed or operated by the Army Corps of Engineers under its civil 
works authorities.

(Added Pub. L. 105-85, div. B, title XXVIII, Sec. 2812(a), Nov. 18, 
1997, 111 Stat. 1992; amended Pub. L. 106-65, div. A, title X, 
Sec. 1067(1), div. B, title XXVIII, Sec. 2812, Oct. 5, 1999, 113 Stat. 
774, 851; Pub. L. 106-398, Sec. 1 [[div. A], title X, Sec. 1087(a)(15), 
div. B, title XXVIII, Sec. 2813], Oct. 30, 2000, 114 Stat. 1654, 1654A-
291, 1654A-418.)


                            Prior Provisions

    A prior section 2688, added Pub. L. 96-125, title VIII, 
Sec. 804(a)(1), Nov. 26, 1979, 93 Stat. 948; amended Pub. L. 96-418, 
title VIII, Sec. 804, Oct. 10, 1980, 94 Stat. 1777; Pub. L. 97-22, 
Sec. 11(a)(9), July 10, 1981, 95 Stat. 138; Pub. L. 97-99, title IX, 
Sec. 901, Dec. 23, 1981, 95 Stat. 1381, related to use of solar energy 
systems in new facilities, prior to repeal by Pub. L. 97-214, 
Secs. 7(1), 12(a), July 12, 1982, 96 Stat. 173, 176, effective Oct. 1, 
1982, and applicable to military construction projects, and to 
construction and acquisition of military family housing authorized 
before, on, or after such date. See section 2857 of this title.


                               Amendments

    2000--Subsec. (b). Pub. L. 106-398, Sec. 1 [div. B, title XXVIII, 
Sec. 2813(a)], designated existing provisions as par. (1) and added 
pars. (2) and (3).
    Subsec. (f). Pub. L. 106-398, Sec. 1 [div. B, title XXVIII, 
Sec. 2813(b)], designated existing provisions as par. (1) and added par. 
(2).
    Subsecs. (h) to (j). Pub. L. 106-398, Sec. 1 [[div. A], title X, 
Sec. 1087(a)(15)], redesignated subsecs. (i) and (j) as (h) and (i), 
respectively.
    1999--Subsec. (c)(3). Pub. L. 106-65, Sec. 2812(a), added par. (3).
    Subsec. (e)(1). Pub. L. 106-65, Sec. 1067(1), substituted ``and the 
Committee on Armed Services'' for ``and the Committee on National 
Security'' in introductory provisions.
    Subsec. (g). Pub. L. 106-65, Sec. 2812(c)(2), added subsec. (g). 
Former subsec. (g) redesignated (i).
    Subsec. (g)(2)(B). Pub. L. 106-65, Sec. 2812(b), substituted ``Real 
property, easements,'' for ``Easements''.
    Subsecs. (h) to (j). Pub. L. 106-65, Sec. 2812(c)(1), redesignated 
subsecs. (g) and (h) as (i) and (j), respectively.
