H. R. 5122—407
Secretary to carry out the conveyance, the Secretary shall 
refund the excess amount to the Commonwealth. 
(2) TREATMENT OF AMOUNTS RECEIVED.—Amounts received 
as reimbursement under paragraph (1) shall be credited to 
the fund or account that was used to cover the costs incurred 
by the Secretary in carrying out the conveyance. Amounts 
so credited shall be merged with amounts in such fund or 
account and shall be available for the same purposes, and 
subject to the same conditions and limitations, as amounts 
in such fund or account. 
(d) DESCRIPTION OF REAL PROPERTY.—The exact acreage and 
legal description of the real property to be conveyed under sub-
section (a) shall be determined by a survey satisfactory to the 
Secretary. 
(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States. 
Subtitle E—Energy Security 
SEC. 2851. CONSOLIDATION AND ENHANCEMENT OF LAWS TO IMPROVE 
DEPARTMENT OF DEFENSE ENERGY EFFICIENCY AND 
CONSERVATION. 
(a) CREATION OF NEW CHAPTER.—
(1) REORGANIZATION OF SECTION 2865 OF TITLE 10.—Title 
10, United States Code, is amended by inserting after chapter 
172 the following new chapter: 
‘‘CHAPTER 173—ENERGY SECURITY
‘‘Subchapter 
‘‘I. Energy Security Activities ................................................................................ 2911
‘‘II. Energy-Related Procurement .......................................................................... 2922
‘‘III. General Provisions ......................................................................................... 2925
‘‘SUBCHAPTER I—ENERGY SECURITY ACTIVITIES
‘‘Sec. 
‘‘ 2911. Energy performance goals and plan for Department of Defense. 
‘‘ 2912. Availability and use of energy cost savings. 
‘‘ 2913. Energy savings contracts and activities. 
‘‘ 2914. Energy conservation construction projects. 
‘‘2915. New construction: use of renewable forms of energy and energy efficient 
products. 
‘‘2916. Sale of electricity from alternate energy and cogeneration production facili-
ties. 
‘‘2917. Development of geothermal energy on military lands. 
‘‘2918. Fuel sources for heating systems; prohibition on converting certain heating 
facilities.
‘‘§ 2911. Energy performance goals and plan for Department 
of Defense 
‘‘(a) ENERGY
PERFORMANCE
GOALS.—(1) The Secretary of 
Defense shall submit to the congressional defense committees the 
energy performance goals for the Department of Defense regarding 
transportation systems, support systems, utilities, and infrastruc-
ture and facilities. 
‘‘(2) The energy performance goals shall be submitted annually 
not later than the date on which the President submits to Congress
H. R. 5122—408
the budget for the next fiscal year under section 1105 of title 
31 and cover that fiscal year as well as the next five, l0, and 
20 years. The Secretary shall identify changes to the energy 
performance goals since the previous submission. 
‘‘(b) ENERGY PERFORMANCE PLAN.—The Secretary of Defense 
shall develop, and update as necessary, a comprehensive plan to 
help achieve the energy performance goals for the Department 
of Defense. 
‘‘(c) SPECIAL CONSIDERATIONS.—For the purpose of developing 
and implementing the energy performance goals and energy 
performance plan, the Secretary of Defense shall consider at a 
minimum the following: 
‘‘(1) Opportunities to reduce the current rate of consump-
tion of energy. 
‘‘(2) Opportunities to reduce the future demand and the 
requirements for the use of energy. 
‘‘(3) Opportunities to implement conservation measures to 
improve the efficient use of energy. 
‘‘(4) Opportunities to pursue alternative energy initiatives, 
including the use of alternative fuels in military vehicles and 
equipment. 
‘‘(5) Cost effectiveness, cost savings, and net present value 
of alternatives. 
‘‘(6) The value of diversification of types and sources of 
energy used. 
‘‘(7) The value of economies-of-scale associated with fewer 
energy types used. 
‘‘(8) The value of the use of renewable energy sources. 
‘‘(9) The potential for an action to serve as an incentive 
for members of the armed forces and civilian personnel to 
reduce energy consumption or adopt an improved energy 
performance measure. 
‘‘(d) SELECTION OF ENERGY CONSERVATION MEASURES.—(1) For 
the purpose of implementing the energy performance plan, the 
Secretary of Defense shall provide that the selection of energy 
conservation measures, including energy efficient maintenance, 
shall be limited to those measures that—
‘‘(A) are readily available; 
‘‘(B) demonstrate an economic return on the investment; 
‘‘(C) are consistent with the energy performance goals and 
energy performance plan for the Department; and 
‘‘(D) are supported by the special considerations specified 
in subsection (c). 
‘‘(2) In this subsection, the term ‘energy efficient maintenance’ 
includes—
‘‘(A) the repair of military vehicles, equipment, or facility 
and infrastructure systems, such as lighting, heating, or cooling 
equipment or systems, or industrial processes, by replacement 
with technology that—
‘‘(i) will achieve 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 energy savings.
H. R. 5122—409
‘‘§ 2912. Availability and use of energy cost savings 
‘‘(a) AVAILABILITY.—An amount 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 
entered into under section 2913 of this title, shall remain available 
for obligation under subsection (b) until expended, without addi-
tional authorization or appropriation. 
‘‘(b) USE.—The Secretary of Defense shall provide that the 
amount that remains available for obligation under subsection (a) 
and the funds made available under section 2916(b)(2) of this title 
shall be used as follows: 
‘‘(1) One-half of the amount shall be used for the 
implementation of additional energy conservation measures at 
buildings, facilities, or installations of the Department of 
Defense or related to vehicles and equipment of the Depart-
ment, which are 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 subsection (a). 
‘‘(2) One-half of the amount shall be used at the installation 
at which the savings were realized, as determined by the com-
manding officer of such installation consistent with applicable 
law and regulations, for—
‘‘(A) improvements to existing military family housing 
units; 
‘‘(B) any unspecified minor construction project that 
will enhance the quality of life of personnel; or 
‘‘(C) any morale, welfare, or recreation facility or 
service. 
‘‘(c) TREATMENT OF CERTAIN FINANCIAL INCENTIVES.—Financial 
incentives received from gas or electric utilities under section 2913 
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. 
‘‘(d) CONGRESSIONAL NOTIFICATION.—The Secretary of Defense 
shall include in the budget material submitted to Congress in 
connection with the submission of the budget for a fiscal year 
pursuant to section 1105 of title 31 a separate statement of the 
amounts available for obligation under this section in that fiscal 
year. 
‘‘§ 2913. Energy savings contracts and activities 
‘‘(a) 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 of Defense as well as the private sector. 
‘‘(2) In carrying out paragraph (1), the Secretary of Defense 
may—
‘‘(A) 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;
H. R. 5122—410
‘‘(B) designate from the statements received, with an update 
at least annually, those firms that are presumptively qualified 
to provide shared energy savings services; 
‘‘(C) 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 
‘‘(D) select from such firms the most qualified firm to 
provide shared energy savings services pursuant to a contrac-
tual 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. 
‘‘(3) 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 competi-
tively and approved by any gas or electric utility serving the depart-
ment, agency, or instrumentality concerned. 
‘‘(b) PARTICIPATION IN GAS OR ELECTRIC UTILITY PROGRAMS.—
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 energy demand 
or for energy conservation. 
‘‘(c) ACCEPTANCE OF FINANCIAL INCENTIVE, GOODS, OR SERV-
ICES.—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 tech-
nologies and practices that the Secretary determines are in the 
interests of the United States and consistent with the energy 
performance goals for the Department of Defense. 
‘‘(d) AGREEMENTS WITH GAS OR ELECTRIC UTILITIES.—(1) 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 imple-
ment 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 cir-
cumstances of the installation. 
‘‘(2) If an agreement under this subsection provides for a utility 
to advance financing costs for the design or implementation of 
a program referred to in that paragraph to be repaid 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. 
‘‘(3) Subject to the availability of appropriations, repayment 
of costs advanced under paragraph (2) shall be made from funds 
available to a military department for the purchase of utility serv-
ices. 
‘‘(4) An agreement under this subsection 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.