refrigeration equipment without having an adverse 
impact on air conditioning performance (including 
cooling capacity) or equipment useful life; 
‘‘(B) determined by the Administrator of the 
Environmental Protection Agency to be environ-
mentally safe; and 
‘‘(C) shown to increase seasonal energy effi-
ciency ratio (SEER) or energy efficiency ratio 
(EER) when tested by the National Institute of 
Standards and Technology according to Department 
of Energy test procedures without causing any ad-
verse impact on the system, system components, the 
refrigerant or lubricant, or other materials in the 
system. 
Results of testing described in subparagraph (C) shall be 
published in the Federal Register for public review and 
comment. For purposes of this section, a hardware device 
or primary refrigerant shall not be considered an additive. 
‘‘(e) REGULATIONS.—Not later than 180 days after 
the date of the enactment of this section, the Secretary 
shall issue guidelines to carry out this section.’’. 
(b) CONFORMING AMENDMENT.—The table of con-
tents of the National Energy Conservation Policy Act is 
further amended by inserting after the item relating to 
section 552 the following new item:
‘‘Sec. 553. Federal procurement of energy efficient products.’’.
SEC. 105. ENERGY SAVINGS PERFORMANCE CONTRACTS. 
(a) LIMITATIONS.—
(1) IN GENERAL.—Section 801(a) of the Na-
tional Energy Conservation Policy Act (42 U.S.C. 
8287(a)) is amended by adding at the end the fol-
lowing subparagraph: 
‘‘(E) All Federal agencies combined may not, after 
the date of enactment of the Energy Policy Act of 2005, 
enter into more than a total of 100 contracts under this 
title. Payments made by the Federal Government under 
all contracts permitted by this subparagraph combined 
shall not exceed a total of $500,000,000. Each Federal 
agency shall appoint a coordinator for Energy Savings 
Performance Contracts with the responsibility to monitor 
the number of such contracts for that Federal agency and 
the investment value of each contract. The coordinators 
for each Federal agency shall meet monthly to ensure that 
the limits specified in this subparagraph on the number 
of contracts and the payments made for the contracts are 
not exceeded.’’. 
(2) DEFINITION.—Section 804(1) of the Na-
tional Energy Conservation Policy Act (42 U.S.C. 
8287c(1)) is amended to read as follows: 
‘‘(1) The term ‘Federal agency’ means the De-
partment of Defense, the Department of Veterans 
Affairs, and the Department of Energy. ’’.
(3) VALIDITY
OF
CONTRACTS.—The amend-
ments made by this subsection shall not affect the 
validity of contracts entered into under title VIII of 
the National Energy Conservation Policy Act (42 
U.S.C. 8287 et seq.) before the date of enactment 
of this Act, or of contracts described in subsection 
(h). 
(b) PERMANENT EXTENSION.—Effective October 1, 
2006, section 801(c) of the National Energy Conservation 
Policy Act (42 U.S.C. 8287(c)) is repealed. 
(c) PAYMENT OF COSTS.—Section 802 of the Na-
tional Energy Conservation Policy Act (42 U.S.C. 8287a) 
is amended by inserting ‘‘, water, or wastewater treat-
ment’’ after ‘‘payment of energy’’. 
(d) ENERGY SAVINGS.—Section 804(2) of the Na-
tional Energy Conservation Policy Act (42 U.S.C. 
8287c(2)) is amended to read as follows: 
‘‘(2) The term ‘energy savings’ means a reduc-
tion in the cost of energy, water, or wastewater 
treatment, from a base cost established through a 
methodology set forth in the contract, used in an ex-
isting federally owned building or buildings or other 
federally owned facilities as a result of—
‘‘(A) the lease or purchase of operating 
equipment, improvements, altered operation and 
maintenance, or technical services; 
‘‘(B) the increased efficient use of existing 
energy sources by cogeneration or heat recov-
ery, excluding any cogeneration process for 
other than a federally owned building or build-
ings or other federally owned facilities; or 
‘‘(C) the increased efficient use of existing 
water sources in either interior or exterior ap-
plications.’’. 
(e) ENERGY SAVINGS CONTRACT.—Section 804(3) of 
the National Energy Conservation Policy Act (42 U.S.C. 
8287c(3)) is amended to read as follows: 
‘‘(3) The terms ‘energy savings contract’ and 
‘energy savings performance contract’ mean a con-
tract that provides for the performance of services 
for the design, acquisition, installation, testing, and, 
where appropriate, operation, maintenance, and re-
pair, of an identified energy or water conservation 
measure or series of measures at 1 or more loca-
tions. Such contracts shall, with respect to an agen-
cy facility that is a public building (as such term is 
defined in section 3301 of title 40, United States 
Code), be in compliance with the prospectus require-