‘‘(B) PERFORMANCE CONTRACTING.—Each 
Federal agency shall use performance con-
tracting to address at least 1⁄2 of the measures 
identified under subparagraph (A)(i).’’. 
(b) REPORTS.—Section 548(b) of the National En-
ergy Conservation Policy Act (42 U.S.C. 8258(b)) is 
amended— 
(1) in paragraph (3), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (4), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(5)(A) the status of the energy savings per-
formance contracts and utility energy service con-
tracts of each agency, to the extent that the infor-
mation is not duplicative of information provided to 
the Secretary under a separate authority; 
‘‘(B) the quantity and investment value of the 
contracts for the previous year; 
‘‘(C) the guaranteed energy savings, or for con-
tracts without a guarantee, the estimated energy 
savings, for the previous year, as compared to the 
measured energy savings for the previous year; 
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‘‘(D) a forecast of the estimated quantity and 
investment value of contracts anticipated in the fol-
lowing year for each agency; and 
‘‘(E)(i) a comparison of the information de-
scribed in subparagraph (B) and the forecast de-
scribed in subparagraph (D) in the report of the 
previous year; and 
‘‘(ii) if applicable, the reasons for any dif-
ferences in the data compared under clause (i).’’. 
(c) DEFINITION OF ENERGY CONSERVATION MEAS-
URES.—Section 551(4) of the National Energy Conserva-
tion Policy Act (42 U.S.C. 8259(4)) is amended by strik-
ing ‘‘or retrofit activities’’ and inserting ‘‘retrofit activi-
ties, or energy consuming devices and required support 
structures’’. 
(d) AUTHORITY TO ENTER INTO CONTRACTS.—Sec-
tion 801(a)(2)(F) of the National Energy Conservation 
Policy Act (42 U.S.C. 8287(a)(2)(F)) is amended— 
(1) in clause (i), by striking ‘‘or’’ at the end; 
(2) in clause (ii), by striking the period at the 
end and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(iii) limit the recognition of oper-
ation and maintenance savings associated 
with systems modernized or replaced with 
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the implementation of energy conservation 
measures, water conservation measures, or 
any combination of energy conservation 
measures and water conservation meas-
ures.’’. 
(e) MISCELLANEOUS AUTHORITY; EXCLUDED CON-
TRACTS.—Section 801(a)(2) of the National Energy Con-
servation Policy Act (42 U.S.C. 8287(a)(2)) is amended 
by adding at the end the following: 
‘‘(H) MISCELLANEOUS AUTHORITY.—Not-
withstanding subtitle I of title 40, United 
States Code, a Federal agency may accept, re-
tain, sell, or transfer, and apply the proceeds of 
the sale or transfer of, any energy and water 
incentive, rebate, grid services revenue, or cred-
it (including a renewable energy certificate) to 
fund a contract under this title. 
‘‘(I) EXCLUDED CONTRACTS.—A contract 
entered into under this title may not be for 
work performed— 
‘‘(i) at a Federal hydroelectric facility 
that provides power marketed by a Power 
Marketing Administration; or 
‘‘(ii) at a hydroelectric facility owned 
and operated by the Tennessee Valley Au-
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thority established under the Tennessee 
Valley Authority Act of 1933 (16 U.S.C. 
831 et seq.).’’. 
(f) PAYMENT OF COSTS.—Section 802 of the Na-
tional Energy Conservation Policy Act (42 U.S.C. 8287a) 
is amended by striking ‘‘(and related operation and main-
tenance expenses)’’ and inserting ‘‘, including related op-
erations and maintenance expenses’’. 
(g) DEFINITION
OF
ENERGY
SAVINGS.—Section 
804(2) of the National Energy Conservation Policy Act 
(42 U.S.C. 8287c(2)) is amended— 
(1) in subparagraph (A), by striking ‘‘federally 
owned building or buildings or other federally owned 
facilities’’ and inserting ‘‘Federal building (as de-
fined in section 551)’’ each place it appears; 
(2) in subparagraph (C), by striking ‘‘; and’’ 
and inserting a semicolon; 
(3) in subparagraph (D), by striking the period 
at the end and inserting a semicolon; and 
(4) by adding at the end the following: 
‘‘(E) the use, sale, or transfer of any en-
ergy and water incentive, rebate, grid services 
revenue, or credit (including a renewable energy 
certificate); and 
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‘‘(F) any revenue generated from a reduc-
tion in energy or water use, more efficient 
waste recycling, or additional energy generated 
from more efficient equipment.’’. 
Æ 
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