102 
or facility that meets criteria under paragraph 
(1)(B). 
‘‘(B) 
RECOMMISSIONING
AND
RETRO-
FITTING.—As part of the evaluation under sub-
paragraph (A) or on the same schedule the en-
ergy manager shall recommission and retrofit 
each such building and facility if applicable. 
‘‘(3) IMPLEMENTATION OF IDENTIFIED ENERGY 
AND WATER EFFICIENCY MEASURES.— 
‘‘(A) IN GENERAL.—Not later than 2 years 
after the completion of each evaluation under 
paragraph (1), each energy manager— 
‘‘(i) shall fully implement each energy 
and water-saving measure identified in the 
evaluation conducted under paragraph (2) 
that is life-cycle cost-effective and has a 
12-year or shorter simple payback period; 
‘‘(ii) may implement any energy or 
water-saving measure that the Federal 
agency identified in the evaluation con-
ducted under paragraph (1) that is life- 
cycle cost-effective and has longer than a 
12-year simple payback period; and 
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‘‘(iii) may bundle individual measures 
of varying paybacks together into combined 
projects. 
‘‘(B) PAYBACK PERIOD.—For the purpose 
of subparagraph (A), the simple payback period 
of a measure shall be obtained by dividing— 
‘‘(i) the estimated initial implementa-
tion cost of the measure (other than fi-
nancing costs); by 
‘‘(ii) the annual cost savings from the 
measure. 
‘‘(C) COST SAVINGS.—For the purpose of 
subparagraph (B), cost savings shall include net 
savings in estimated— 
‘‘(i) energy and water costs; and 
‘‘(ii) operations, maintenance, repair, 
replacement, and other direct costs. 
‘‘(D) EXCEPTIONS.—The Secretary may 
modify or make exceptions to the calculation of 
a 12-year simple payback under this paragraph 
in the guidelines issued by the Secretary under 
paragraph (5). 
‘‘(E) LIFE-CYCLE
COST-EFFECTIVE.—For 
the purpose of subparagraph (A), determination 
of whether a measure is life-cycle cost-effective 
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shall use methods and procedures developed 
pursuant to section 544. 
‘‘(4) FOLLOW-UP
ON
IMPLEMENTED
MEAS-
URES.—For each measure implemented under para-
graph (3), each energy manager shall ensure that— 
‘‘(A) equipment, including building and 
equipment controls, is fully commissioned at ac-
ceptance to be operating at design specifica-
tions; 
‘‘(B) a plan for appropriate operations, 
maintenance, and repair of the equipment is in 
place at acceptance and is followed; 
‘‘(C) equipment and system performance is 
measured during its entire life to ensure proper 
operations, maintenance, and repair; and 
‘‘(D) energy and water savings are meas-
ured and verified. 
‘‘(5) GUIDELINES.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
issue guidelines and necessary criteria that each 
Federal agency shall follow for implementation 
of— 
‘‘(i) paragraphs (1) and (2) not later 
than 180 days after the date of enactment 
of this subsection; and 
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