
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC8256]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
             CHAPTER 91--NATIONAL ENERGY CONSERVATION POLICY
 
                SUBCHAPTER III--FEDERAL ENERGY INITIATIVE
 
                    Part B--Federal Energy Management
 
Sec. 8256. Incentives for agencies


(a) Contracts

    (1) Each agency shall establish a program of incentives for 
conserving, and otherwise making more efficient use of, energy as a 
result of entering into contracts under subchapter VII of this chapter.
    (2) The Secretary shall, not later than 18 months after October 24, 
1992, and after consultation with the Director of the Office of 
Management and Budget, the Secretary of Defense, and the Administrator 
of General Services, develop appropriate procedures and methods for use 
by agencies to implement the incentives referred to in paragraph (1).

(b) Federal Energy Efficiency Fund

    (1) The Secretary shall establish a Federal Energy Efficiency Fund 
to provide grants to agencies to assist them in meeting the requirements 
of section 8253 of this title.
    (2) Not later than June 30, 1993, the Secretary shall issue 
guidelines to be followed by agencies submitting proposals for such 
grants. All agencies shall be eligible to submit proposals for grants 
under the Fund.
    (3) The Secretary shall award grants from the Fund after a 
competitive assessment of the technical and economic effectiveness of 
each agency proposal. The Secretary shall consider the following factors 
in determining whether to provide funding under this subsection:
        (A) The cost-effectiveness of the project.
        (B) The amount of energy and cost savings anticipated to the 
    Federal Government.
        (C) The amount of funding committed to the project by the agency 
    requesting financial assistance.
        (D) The extent that a proposal leverages financing from other 
    non-Federal sources.
        (E) Any other factor which the Secretary determines will result 
    in the greatest amount of energy and cost savings to the Federal 
    Government.

    (4) There are authorized to be appropriated, to remain available to 
be expended, to carry out this subsection not more than $10,000,000 for 
fiscal year 1994, $50,000,000 for fiscal year 1995, and such sums as may 
be necessary for fiscal years thereafter.

(c) Utility incentive programs

    (1) Agencies are authorized and encouraged to participate in 
programs to increase energy efficiency and for water conservation or the 
management of electricity demand conducted by gas, water, or electric 
utilities and generally available to customers of such utilities.
    (2) Each agency may accept any financial incentive, goods, or 
services generally available from any such utility, to increase energy 
efficiency or to conserve water or manage electricity demand.
    (3) Each agency is encouraged to enter into negotiations with 
electric, water, and gas utilities to design cost-effective demand 
management and conservation incentive programs to address the unique 
needs of facilities utilized by such agency.
    (4) If an agency satisfies the criteria which generally apply to 
other customers of a utility incentive program, such agency may not be 
denied collection of rebates or other incentives.
    (5)(A) An amount equal to fifty percent of the energy and water cost 
savings realized by an agency (other than the Department of Defense) 
with respect to funds appropriated for any fiscal year beginning after 
fiscal year 1992 (including financial benefits resulting from energy 
savings performance contracts under subchapter VII of this chapter and 
utility energy efficiency rebates) shall, subject to appropriation, 
remain available for expenditure by such agency for additional energy 
efficiency measures which may include related employee incentive 
programs, particularly at those facilities at which energy savings were 
achieved.
    (B) Agencies shall establish a fund and maintain strict financial 
accounting and controls for savings realized and expenditures made under 
this subsection. Records maintained pursuant to this subparagraph shall 
be made available for public inspection upon request.

(d) Financial incentive program for facility energy managers

    (1) The Secretary shall, in consultation with the Task Force 
established pursuant to section 8257 of this title, establish a 
financial bonus program to reward, with funds made available for such 
purpose, outstanding Federal facility energy managers in agencies and 
the United States Postal Service.
    (2) Not later than June 1, 1993, the Secretary shall issue 
procedures for implementing and conducting the award program, including 
the criteria to be used in selecting outstanding energy managers and 
contributors who have--
        (A) improved energy performance through increased energy 
    efficiency;
        (B) implemented proven energy efficiency and energy conservation 
    techniques, devices, equipment, or procedures;
        (C) developed and implemented training programs for facility 
    energy managers, operators, and maintenance personnel;
        (D) developed and implemented employee awareness programs;
        (E) succeeded in generating utility incentives, shared energy 
    savings contracts, and other federally approved performance based 
    energy savings contracts;
        (F) made successful efforts to fulfill compliance with energy 
    reduction mandates, including the provisions of section 8253 of this 
    title; and
        (G) succeeded in the implementation of the guidelines 
    established under section 8262e \1\ of this title.
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    \1\ See References in Text note below.

    (3) There is authorized to be appropriated to carry out this 
subsection not more than $250,000 for each of the fiscal years 1993, 
1994, and 1995.

(Pub. L. 95-619, title V, Sec. 546, Nov. 9, 1978, 92 Stat. 3278; Pub. L. 
100-615, Sec. 2(a), Nov. 5, 1988, 102 Stat. 3187; Pub. L. 102-486, title 
I, Sec. 152(f), Oct. 24, 1992, 106 Stat. 2846.)

                       References in Text

    Section 8262e of this title, referred to in subsec. (d)(2)(G), was 
in the original ``section 159'' and was translated as meaning section 
159 of Pub. L. 102-486, title I, Oct. 24, 1992, 106 Stat. 2857, which 
enacted section 8262e of this title, to reflect the probable intent of 
Congress.


                               Amendments

    1992--Subsec. (a). Pub. L. 102-486, Sec. 152(f)(1), (2), substituted 
``Contracts'' for ``In general'' in heading, designated existing 
provisions as par. (1), and redesignated former subsec. (b) as subsec. 
(a)(2) and amended it generally. Prior to amendment, par. (2) read as 
follows: ``The head of each agency shall, no later than 120 days after 
November 5, 1988, implement procedures for entering into such contracts 
and for identifying, verifying, and utilizing, on a fiscal year basis, 
the cost savings resulting from such contracts.''
    Subsec. (b). Pub. L. 102-486, Sec. 152(f)(4), added subsec. (b). 
Former subsec. (b) redesignated par. (2) of subsec. (a).
    Subsecs. (c), (d). Pub. L. 102-486, Sec. 152(f)(3), (4), added 
subsecs. (c) and (d) and struck out former subsec. (c) which read as 
follows: ``The portion of the funds appropriated to an agency for energy 
expenses for a fiscal year that is equal to the amount of cost savings 
realized by such agency for such year from contracts entered into under 
subchapter VII of this chapter shall remain available for obligation, 
without further appropriation, to undertake additional energy 
conservation measures.''
    1988--Pub. L. 100-615 amended section generally, substituting 
statement of incentives for agencies for provisions relating to energy 
performance targets for Federal buildings.


 Energy Efficiency and Water Conservation Measures; Use of Rebates and 
                                 Savings

    Pub. L. 104-52, title VI, Sec. 625, Nov. 19, 1995, 109 Stat. 502, 
provided that:
    ``(a) Beginning in fiscal year 1996 and thereafter, for each Federal 
agency, except the Department of Defense (which has separate authority), 
and except as provided in Public Law 102-393, title IV, section 13 (40 
U.S.C. 490g) with respect to the Fund established pursuant to 40 U.S.C. 
490(f), an amount equal to 50 percent of--
        ``(1) the amount of each utility rebate received by the agency 
    for energy efficiency and water conservation measures, which the 
    agency has implemented; and
        ``(2) the amount of the agency's share of the measured energy 
    savings resulting from energy-savings performance contracts,
may be retained and credited to accounts that fund energy and water 
conservation activities at the agency's facilities, and shall remain 
available until expended for additional specific energy efficiency or 
water conservation projects or activities, including improvements and 
retrofits, facility surveys, additional or improved utility metering, 
and employee training and awareness programs, as authorized by section 
152(f) of the Energy Policy Act (Public Law 102-486) [amending this 
section].
    ``(b) The remaining 50 percent of each rebate, and the remaining 50 
percent of the amount of the agency's share of savings from energy-
savings performance contracts, shall be transferred to the General Fund 
of the Treasury at the end of the fiscal year in which received.''

                  Section Referred to in Other Sections

    This section is referred to in sections 8257, 8258 of this title.
