
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-107 Section 317]
[CITE: 10USC2865]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
     CHAPTER 169--MILITARY CONSTRUCTION AND MILITARY FAMILY HOUSING
 
  SUBCHAPTER III--ADMINISTRATION OF MILITARY CONSTRUCTION AND MILITARY 
                             FAMILY HOUSING
 
Sec. 2865. Energy savings at military installations

    (a) Energy Performance Goal and Plan.--(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, including energy efficient maintenance or water efficient 
maintenance, under such plan shall be limited to those with a positive 
net present value over a period of 10 years or less.
    (4) In paragraph (3), the term ``energy efficient maintenance or 
water efficient maintenance'' includes--
        (A) the repair by replacement of equipment or systems, such as 
    lighting, heating, or cooling equipment or systems, industrial 
    processes, or water efficiency applications, 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 or water cost savings.

    (b) Use of Energy Cost Savings.--(1) 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, 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 Secretary shall provide that the amount that remains 
available for obligation under paragraph (1) and section 2866(a)(3) of 
this title, and the funds made available under section 2867(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(a)(3) of this title.
        (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) 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.
    (c) Shared Energy Savings Contracts.--(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) 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 or by any utility for 
water conservation activities.
    (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 in that paragraph to be repayed by the 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.
    (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 appropriate 
committees of Congress 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.
    (f) Annual Report.--Not later than December 31 of each year, 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. 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.

(Added Pub. L. 101-510, div. B, title XXVIII, Sec. 2851(a), Nov. 5, 
1990, 104 Stat. 1803; amended Pub. L. 102-484, div. B, title XXVIII, 
Sec. 2801, Oct. 23, 1992, 106 Stat. 2604; Pub. L. 103-160, div. B, title 
XXVIII, Sec. 2804, Nov. 30, 1993, 107 Stat. 1885; Pub. L. 103-337, div. 
A, title X, Sec. 1070(a)(14), Oct. 5, 1994, 108 Stat. 2856; Pub. L. 104-
106, div. A, title XV, Sec. 1502(a)(27), div. B, title XXVIII, 
Sec. 2819, Feb. 10, 1996, 110 Stat. 506, 555; Pub. L. 105-85, div. A, 
title III, Sec. 371(d)(2), div. B, title XXVIII, Sec. 2804(a), Nov. 18, 
1997, 111 Stat. 1706, 1990.)


                               Amendments

    1997--Subsec. (b)(1). Pub. L. 105-85, Sec. 2804(a)(1)(A), struck out 
``and financial incentives described in subsection (d)(2)'' after 
``savings contracts''.
    Subsec. (b)(2). Pub. L. 105-85, Sec. 2804(a)(1)(B), substituted 
``section 2866(a)(3)'' for ``section 2866(b)'' in introductory 
provisions and in subpar. (A).
    Pub. L. 105-85, Sec. 371(d)(2), substituted ``section 2867(b)(2)'' 
for ``section 2483(b)(2)'' in introductory provisions.
    Subsec. (b)(3). Pub. L. 105-85, Sec. 2804(a)(1)(C), added par. (3).
    Subsec. (f). Pub. L. 105-85, Sec. 2804(a)(2), inserted at end ``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.''
    1996--Subsec. (a)(3). Pub. L. 104-106, Sec. 2819(a), substituted 
``energy efficient maintenance or water efficient maintenance'' for 
``energy efficient maintenance''.
    Subsec. (a)(4). Pub. L. 104-106, Sec. 2819(b)(1), substituted 
``energy efficient maintenance or water efficient maintenance'' for 
``energy efficient maintenance'' in introductory provisions.
    Subsec. (a)(4)(A). Pub. L. 104-106, Sec. 2819(b)(2), substituted 
``systems, industrial processes, or water efficiency applications,'' for 
``systems or industrial processes,'' in introductory provisions.
    Subsec. (a)(4)(B). Pub. L. 104-106, Sec. 2819(b)(3), inserted before 
period at end ``or water cost savings''.
    Subsec. (e)(2). Pub. L. 104-106, Sec. 1502(a)(27), substituted 
``appropriate committees of Congress'' for ``Committees on Armed 
Services and Appropriations of the Senate and House of 
Representatives''.
    1994--Subsec. (a)(4)(B). Pub. L. 103-337 inserted period at end.
    1993--Subsec. (a)(3). Pub. L. 103-160, Sec. 2804(a)(1), inserted ``, 
including energy efficient maintenance,'' after ``conservation 
measures''.
    Subsec. (a)(4). Pub. L. 103-160, Sec. 2804(a)(2), added par. (4).
    Subsec. (b)(1). Pub. L. 103-160, Sec. 2804(b)(1), substituted ``Two-
thirds'' for ``The Secretary shall provide that two-thirds'' and struck 
out ``for any fiscal year beginning after fiscal year 1990'' after 
``described in subsection (d)(2),''.
    Subsec. (b)(2). Pub. L. 103-160, Sec. 2804(b)(2), added introductory 
provisions and subpar. (A) and struck out former introductory provisions 
and subpar. (A) which read as follows: ``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.''
    Subsec. (d)(1). Pub. L. 103-160, Sec. 2804(c), inserted before 
period at end ``or by any utility for water conservation activities''.
    1992--Subsec. (a). Pub. L. 102-484, Sec. 2801(e)(1), inserted 
heading.
    Subsec. (b). Pub. L. 102-484, Sec. 2801(e)(2), inserted heading.
    Subsec. (b)(1). Pub. L. 102-484, Sec. 2801(c), substituted 
``subsection (d)(2)'' for ``paragraph (3)(B)''.
    Subsec. (b)(3). Pub. L. 102-484, Sec. 2801(a)(1), struck out par. 
(3) which read as follows: ``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, to 
    adopt technologies and practices that the Secretary determines are 
    cost-effective for the Federal Government.''
    Subsec. (c). Pub. L. 102-484, Sec. 2801(e)(3), inserted heading.
    Subsecs. (d), (e). Pub. L. 102-484, Sec. 2801(a)(3), (b), added 
subsecs. (d) and (e). Former subsec. (d) redesignated (f).
    Subsec. (f). Pub. L. 102-484, Sec. 2801(a)(2), (d), (e)(4), 
redesignated subsec. (d) as (f), inserted heading, and substituted ``not 
later than December 31 of each year'' for ``Beginning with fiscal year 
1991 and by no later than December 31, 1991, and of each year 
thereafter''.

                  Section Referred to in Other Sections

    This section is referred to in sections 2866, 2867 of this title.
