# Energy Independence and Security Act of 2007/Title V/Subtitle B
## Subtitle B--Energy Savings Performance Contracting
### SEC. 511. AUTHORITY TO ENTER INTO CONTRACTS; REPORTS.

    (a) In General- Section 801(a)(2)(D) of the National Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)(D)) is amended--
       (1) in clause (ii), by inserting `and' after the semicolon at the end;
       (2) by striking clause (iii); and
       (3) by redesignating clause (iv) as clause (iii).
    (b) Reports- Section 548(a)(2) of the National Energy Conservation Policy Act (42 U.S.C. 8258(a)(2)) is amended by inserting `and any termination penalty exposure' after `the energy and cost savings that have resulted from such contracts'.
    (c) Conforming Amendment- Section 2913 of title 10, United States Code, is amended by striking subsection (e).

### SEC. 512. FINANCING FLEXIBILITY.

Section 801(a)(2) of the National Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)) is amended by adding at the end the following:
                   `(E) FUNDING OPTIONS- In carrying out a contract under this title, a Federal agency may use any combination of--
                      `(i) appropriated funds; and
                      `(ii) private financing under an energy savings performance contract.'.

### SEC. 513. PROMOTING LONG-TERM ENERGY SAVINGS PERFORMANCE CONTRACTS AND VERIFYING SAVINGS.

Section 801(a)(2) of the National Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)) (as amended by section 512) is amended--
       (1) in subparagraph (D), by inserting `beginning on the date of the delivery order' after `25 years'; and
       (2) by adding at the end the following:
                   `(F) PROMOTION OF CONTRACTS- In carrying out this section, a Federal agency shall not--
                      `(i) establish a Federal agency policy that limits the maximum contract term under subparagraph (D) to a period shorter than 25 years; or
                      `(ii) limit the total amount of obligations under energy savings performance contracts or other private financing of energy savings measures.
                   `(G) MEASUREMENT AND VERIFICATION REQUIREMENTS FOR PRIVATE FINANCING-
                      `(i) IN GENERAL- In the case of energy savings performance contracts, the evaluations and savings measurement and verification required under paragraphs (2) and (4) of section 543(f) shall be used by a Federal agency to meet the requirements for the need for energy audits, calculation of energy savings, and any other evaluation of costs and savings needed to implement the guarantee of savings under this section.
                      `(ii) MODIFICATION OF EXISTING CONTRACTS- Not later than 18 months after the date of enactment of this subparagraph, each Federal agency shall, to the maximum extent practicable, modify any indefinite delivery and indefinite quantity energy savings performance contracts, and other indefinite delivery and indefinite quantity contracts using private financing, to conform to the amendments made by subtitle B of title V of the Energy Independence and Security Act of 2007.'.

### SEC. 514. PERMANENT REAUTHORIZATION.

Section 801 of the National Energy Conservation Policy Act (42 U.S.C. 8287) is amended by striking subsection (c).

### SEC. 515. DEFINITION OF ENERGY SAVINGS.

Section 804(2) of the National Energy Conservation Policy Act (42 U.S.C. 8287c(2)) is amended--
       (1) by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively, and indenting appropriately;
       (2) by striking `means a reduction' and inserting `means--
                   `(A) a reduction';
       (3) by striking the period at the end and inserting a semicolon; and
       (4) by adding at the end the following:
                   `(B) the increased efficient use of an existing energy source by cogeneration or heat recovery;
                   `(C) if otherwise authorized by Federal or State law (including regulations), the sale or transfer of electrical or thermal energy generated on-site from renewable energy sources or cogeneration, but in excess of Federal needs, to utilities or non-Federal energy users; and
                   `(D) the increased efficient use of existing water sources in interior or exterior applications.'.

### SEC. 516. RETENTION OF SAVINGS.

Section 546(c) of the National Energy Conservation Policy Act (42 U.S.C. 8256(c)) is amended by striking paragraph (5).

### SEC. 517. TRAINING FEDERAL CONTRACTING OFFICERS TO NEGOTIATE ENERGY EFFICIENCY CONTRACTS.

    (a) Program- The Secretary shall create and administer in the Federal Energy Management Program a training program to educate Federal contract negotiation and contract management personnel so that the contract officers are prepared to--
       (1) negotiate energy savings performance contracts;
       (2) conclude effective and timely contracts for energy efficiency services with all companies offering energy efficiency services; and
       (3) review Federal contracts for all products and services for the potential energy efficiency opportunities and implications of the contracts.
    (b) Schedule- Not later than 1 year after the date of enactment of this Act, the Secretary shall plan, staff, announce, and begin training under the Federal Energy Management Program.
    (c) Personnel To Be Trained- Personnel appropriate to receive training under the Federal Energy Management Program shall be selected by and sent for the training from--
       (1) the Department of Defense;
       (2) the Department of Veterans Affairs;
       (3) the Department;
       (4) the General Services Administration;
       (5) the Department of Housing and Urban Development;
       (6) the United States Postal Service; and
       (7) all other Federal agencies and departments that enter contracts for buildings, building services, electricity and electricity services, natural gas and natural gas services, heating and air conditioning services, building fuel purchases, and other types of procurement or service contracts determined by the Secretary, in carrying out the Federal Energy Management Program, to offer the potential for energy savings and greenhouse gas emission reductions if negotiated with taking into account those goals.
    (d) Trainers- Training under the Federal Energy Management Program may be conducted by--
       (1) attorneys or contract officers with experience in negotiating and managing contracts described in subsection (c)(7) from any agency, except that the Secretary shall reimburse the related salaries and expenses of the attorneys or contract officers from amounts made available for carrying out this section to the extent the attorneys or contract officers are not employees of the Department; and
       (2) private experts hired by the Secretary for the purposes of this section, except that the Secretary may not hire experts who are simultaneously employed by any company under contract to provide energy efficiency services to the Federal Government.
    (e) Authorization of Appropriations- There are authorized to be appropriated to the Secretary to carry out this section $750,000 for each of fiscal years 2008 through 2012.

### SEC. 518. STUDY OF ENERGY AND COST SAVINGS IN NONBUILDING APPLICATIONS.

    (a) Definitions- In this section:
       (1) NONBUILDING APPLICATION- The term `nonbuilding application' means--
          (A) any class of vehicles, devices, or equipment that is transportable under the power of the applicable vehicle, device, or equipment by land, sea, or air and that consumes energy from any fuel source for the purpose of--
             (i) that transportation; or
             (ii) maintaining a controlled environment within the vehicle, device, or equipment; and
          (B) any federally-owned equipment used to generate electricity or transport water.
       (2) SECONDARY SAVINGS-
          (A) IN GENERAL- The term `secondary savings' means additional energy or cost savings that are a direct consequence of the energy savings that result from the energy efficiency improvements that were financed and implemented pursuant to an energy savings performance contract.
          (B) INCLUSIONS- The term `secondary savings' includes--
             (i) energy and cost savings that result from a reduction in the need for fuel delivery and logistical support;
             (ii) personnel cost savings and environmental benefits; and
             (iii) in the case of electric generation equipment, the benefits of increased efficiency in the production of electricity, including revenues received by the Federal Government from the sale of electricity so produced.
    (b) Study-
       (1) IN GENERAL- As soon as practicable after the date of enactment of this Act, the Secretary and the Secretary of Defense shall jointly conduct, and submit to Congress and the President, a report of, a study of the potential for the use of energy savings performance contracts to reduce energy consumption and provide energy and cost savings in nonbuilding applications.
       (2) REQUIREMENTS- The study under this subsection shall include--
          (A) an estimate of the potential energy and cost savings to the Federal Government, including secondary savings and benefits, from increased efficiency in nonbuilding applications;
          (B) an assessment of the feasibility of extending the use of energy savings performance contracts to nonbuilding applications, including an identification of any regulatory or statutory barriers to that use; and
          (C) such recommendations as the Secretary and the Secretary of Defense determine to be appropriate.