204 
‘‘(3) WAIVER AUTHORITY.—The President may 
reduce or waive the requirement under paragraph 
(1) on a fiscal-year basis if the President determines 
that complying with paragraph (1) for a fiscal year 
would result in— 
‘‘(A) a negative impact on military training 
or readiness activities conducted by the Depart-
ment of Defense; 
‘‘(B) a negative impact on domestic pre-
paredness activities conducted by the Depart-
ment of Homeland Security; or 
‘‘(C) a requirement that a Federal agency 
provide emergency response services in the 
event of a natural disaster or terrorist attack.’’; 
and 
(2) by adding at the end the following: 
‘‘(e) CONTRACTS FOR RENEWABLE ENERGY FROM 
PUBLIC
UTILITY
SERVICES.—Notwithstanding section 
501(b)(1)(B) of title 40, United States Code, a contract 
for renewable energy may be made for a period of not 
more than 50 years.’’. 
SEC. 263. ENERGY SAVINGS PERFORMANCE CONTRACTS. 
(a) RETENTION OF SAVINGS.—Section 546(c) of the 
National Energy Conservation Policy Act (42 U.S.C. 
8256(c)) is amended by striking paragraph (5). 
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205 
(b) SUNSET AND REPORTING REQUIREMENTS.—Sec-
tion 801 of the National Energy Conservation Policy Act 
(42 U.S.C. 8287) is amended by striking subsection (c). 
(c) 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 on-site from renewable energy sources or 
cogeneration, but in excess of Federal needs, to 
utilities or non-Federal energy users; and 
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206 
‘‘(D) the increased efficient use of existing 
water sources in interior or exterior applica-
tions.’’. 
(d) NOTIFICATION.— 
(1) AUTHORITY TO ENTER INTO CONTRACTS.— 
Section 801(a)(2)(D) of the National Energy Con-
servation Policy Act (42 U.S.C. 8287(a)(2)(D)) is 
amended— 
(A) in clause (ii), by inserting ‘‘and’’ after 
the semicolon at the end; 
(B) by striking clause (iii); and 
(C) by redesignating clause (iv) as clause 
(iii). 
(2) REPORTS.—Section 548(a)(2) of the Na-
tional Energy Conservation Policy Act (42 U.S.C. 
8258(a)(2)) is amended by inserting ‘‘and any ter-
mination penalty exposure’’ after ‘‘the energy and 
cost savings that have resulted from such con-
tracts’’. 
(3) CONFORMING AMENDMENT.—Section 2913 
of title 10, United States Code, is amended by strik-
ing subsection (e). 
(e) ENERGY AND COST SAVINGS IN NONBUILDING 
APPLICATIONS.— 
(1) DEFINITIONS.—In this subsection: 
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