‘‘(b) PROCUREMENT OF ENERGY EFFICIENT PROD-
UCTS.—
‘‘(1) REQUIREMENT.—To meet the require-
ments of an executive agency for an energy con-
suming product, the head of the executive agency 
shall, except as provided in paragraph (2), procure—
‘‘(A) an Energy Star product; or 
‘‘(B) a FEMP designated product. 
‘‘(2) EXCEPTIONS.—The head of an executive 
agency is not required to procure an Energy Star 
product or FEMP designated product under para-
graph (1) if the head of the executive agency finds 
in writing that—
‘‘(A) an Energy Star product or FEMP 
designated product is not cost-effective over the 
life of the product taking energy cost savings 
into account; or 
‘‘(B) no Energy Star product or FEMP 
designated product is reasonably available that 
meets the functional requirements of the execu-
tive agency. 
‘‘(3) PROCUREMENT PLANNING.—The head of 
an executive agency shall incorporate into the speci-
fications for all procurements involving energy con-
suming products and systems, including guide speci-
fications, project specifications, and construction, 
renovation, and services contracts that include provi-
sion of energy consuming products and systems, and 
into the factors for the evaluation of offers received 
for the procurement, criteria for energy efficiency 
that are consistent with the criteria used for rating 
Energy Star products and for rating FEMP des-
ignated products. 
‘‘(c) LISTING OF ENERGY EFFICIENT PRODUCTS IN 
FEDERAL CATALOGS.—Energy Star products and FEMP 
designated products shall be clearly identified and promi-
nently displayed in any inventory or listing of products 
by the General Services Administration or the Defense Lo-
gistics Agency. The General Services Administration or 
the Defense Logistics Agency shall supply only Energy 
Star products or FEMP designated products for all prod-
uct categories covered by the Energy Star program or the 
Federal Energy Management Program, except in cases 
where the agency ordering a product specifies in writing 
that no Energy Star product or FEMP designated product 
is available to meet the buyer’s functional requirements, 
or that no Energy Star product or FEMP designated 
product is cost-effective for the intended application over 
the life of the product, taking energy cost savings into ac-
count.
‘‘(d) SPECIFIC PRODUCTS.—(1) In the case of elec-
tric motors of 1 to 500 horsepower, agencies shall select 
only premium efficient motors that meet a standard des-
ignated by the Secretary. The Secretary shall designate 
such a standard not later than 120 days after the date 
of the enactment of this section, after considering the rec-
ommendations of associated electric motor manufacturers 
and energy efficiency groups. 
‘‘(2) All Federal agencies are encouraged to take ac-
tions to maximize the efficiency of air conditioning and 
refrigeration equipment, including appropriate cleaning 
and maintenance, including the use of any system treat-
ment or additive that will reduce the electricity consumed 
by air conditioning and refrigeration equipment. Any such 
treatment or additive must be—
‘‘(A) determined by the Secretary to be effective 
in increasing the efficiency of air conditioning and 
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