661 
‘‘$125,000,000 for each of the fiscal years 2007, 2008, 
2009, 2010, 2011, and 2012’’. 
PART 7—ENERGY SAVINGS PERFORMANCE 
CONTRACTING 
SEC. 9081. 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 insert-
ing ‘‘means— 
‘‘(A) a reduction’’; 
(3) by striking the period at the end and insert-
ing a semicolon; and 
(4) by adding at the end the following: 
‘‘(B) the increased efficient use of an exist-
ing energy source by cogeneration or heat re-
covery, and installation of renewable energy sys-
tems; 
‘‘(C) if otherwise authorized by Federal or 
State law (including regulations), the sale or 
transfer of electrical or thermal energy gen-
erated onsite but in excess of Federal needs, to 
utilities or non-Federal energy users; and 
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‘‘(D) the increased efficient use of existing 
water sources in interior or exterior applica-
tions.’’. 
SEC. 9082. FINANCING FLEXIBILITY. 
Section 801(a)(2) of the National Energy Conserva-
tion Policy Act (42 U.S.C. 8287(a)(2)) is amended by add-
ing at the end the following: 
‘‘(E) SEPARATE CONTRACTS.—In carrying out a con-
tract under this title, a Federal agency may— 
‘‘(i) enter into a separate contract for energy 
services and conservation measures under the con-
tract; and 
‘‘(ii) provide all or part of the financing nec-
essary to carry out the contract.’’. 
SEC. 9083. AUTHORITY TO ENTER INTO CONTRACTS; RE-
PORTS. 
(a) AUTHORITY TO ENTER INTO CONTRACTS.—Sec-
tion 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)) 
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is amended by inserting ‘‘and any termination penalty ex-
posure’’ after ‘‘the energy and cost savings that have re-
sulted from such contracts’’. 
(c) CONFORMING AMENDMENT.—Section 2913 of 
title 10, United States Code is amended by striking sub-
section (e). 
SEC. 9084. PERMANENT REAUTHORIZATION. 
Section 801 of the National Energy Conservation 
Policy Act (42 U.S.C. 8287) is amended by striking sub-
section (c). 
SEC. 9085. TRAINING FEDERAL CONTRACTING OFFICERS 
TO NEGOTIATE ENERGY EFFICIENCY CON-
TRACTS. 
(a) PROGRAM.—The Secretary of Energy shall create 
and administer in the Federal Energy Management Pro-
gram a training program to educate Federal contract ne-
gotiation and contract management personnel so that such 
contract officers are prepared to— 
(1) negotiate energy savings performance con-
tracts; 
(2) conclude effective and timely contracts for 
energy efficiency services with all companies offering 
energy efficiency services; and 
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