Source: https://www.law.cornell.edu/uscode/text/10/2688
Timestamp: 2019-04-21 20:32:53+00:00

Document:
The Secretary of a military department may convey a utility system, or part of a utility system, under the jurisdiction of the Secretary to a municipal, private, regional, district, or cooperative utility company or other entity. The conveyance may consist of all right, title, and interest of the United States in the utility system or such lesser estate as the Secretary considers appropriate to serve the interests of the United States.
If more than one utility or entity referred to in subsection (a) notifies the Secretary concerned of an interest in a conveyance under such subsection, the Secretary shall carry out the conveyance through the use of competitive procedures.
Notwithstanding paragraph (1), the Secretary concerned may use procedures other than competitive procedures, but only in accordance with subsections (c) through (f) of section 2304 of this title, to select the conveyee of a utility system (or part of a utility system) under subsection (a).
With respect to the solicitation process used in connection with the conveyance of a utility system (or part of a utility system) under subsection (a), the Secretary concerned shall ensure that the process is conducted in a manner consistent with the laws and regulations of the State in which the utility system is located to the extent necessary to ensure that all interested regulated and unregulated utility companies and other interested entities receive an opportunity to acquire and operate the utility system to be conveyed.
a reduction in charges for utility services provided by the utility or entity concerned to the military installation at which the utility system is located.
If the utility services proposed to be provided as consideration under paragraph (1) are subject to regulation by a Federal or State agency, any reduction in the rate charged for the utility services shall be subject to establishment or approval by that agency.
Except as provided in paragraph (2), a contract for the receipt of utility services as consideration under subsection (c), or any other contract for utility services entered into by the Secretary concerned in connection with the conveyance of a utility system under this section, may be for a period not to exceed 10 years.
The Secretary of Defense, or the designee of the Secretary, may authorize a contract for utility services described in paragraph (1) to have a term in excess of 10 years, but not to exceed 50 years, if the Secretary determines that a contract for a longer term will be cost effective. The determination of cost effectiveness shall be made using a business case analysis that includes an independent estimate of the level of investment that should be required to maintain adequate operation of the utility system over the proposed term of the contract. The business case analysis must also demonstrate how a privatized system will operate in a manner consistent with subsection (g)(3).
to an appropriation of the military department available for improvements to other utility systems.
Amounts so credited shall be merged with funds in the appropriation to which credited and shall be available for the same purposes, and subject to the same conditions and limitations, as the appropriation with which merged.
The Secretary concerned may require such additional terms and conditions in connection with a conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.
The Secretary concerned shall require in any contract for the conveyance of a utility system (or part of a utility system) under subsection (a) that the conveyee manage and operate the utility system in a manner consistent with applicable Federal and State regulations pertaining to health, safety, fire, and environmental requirements.
The Secretary concerned shall require in any contract for the conveyance of a utility system (or part of a utility system) under subsection (a) that the conveyee manage and operate the utility system in a manner consistent with energy resilience and cybersecurity requirements and associated metrics provided to the conveyee to ensure that the reliability of the utility system meets mission requirements.
The Secretary of Defense, in consultation with the Secretaries of the military departments, shall include in the installation energy report submitted under section 2925(a) of this title a description of progress in meeting energy resilience metrics for all conveyance contracts entered into pursuant to this section.
In lieu of carrying out a military construction project to construct, repair, or replace a utility system, the Secretary concerned may use funds authorized and appropriated for the project to facilitate the conveyance of the utility system under this section by making a contribution toward the cost of construction, repair, or replacement of the utility system by the entity to which the utility system is being conveyed.
A system for the generation and supply of electric power.
A system for the treatment or supply of water.
A system for the collection or treatment of wastewater.
A system for the generation or supply of steam, hot water, and chilled water.
A system for the supply of natural gas.
A system for the transmission of telecommunications.
Equipment, fixtures, structures, and other improvements utilized in connection with a system referred to in paragraph (1).
Real property, easements, and rights-of-way associated with a system referred to in that paragraph.
the military department receives as consideration an amount for the utility infrastructure determined in the same manner as the consideration the Secretary could require under subsection (c) for a conveyance under subsection (a).
The conveyance under this paragraph may consist of all right, title, and interest of the United States or such lesser estate as the Secretary considers appropriate to serve the interests of the United States.
This section shall not apply to projects constructed or operated by the Army Corps of Engineers under its civil works authorities.
A prior section 2688, added Pub. L. 96–125, title VIII, § 804(a)(1), Nov. 26, 1979, 93 Stat. 948; amended Pub. L. 96–418, title VIII, § 804, Oct. 10, 1980, 94 Stat. 1777; Pub. L. 97–22, § 11(a)(9), July 10, 1981, 95 Stat. 138; Pub. L. 97–99, title IX, § 901, Dec. 23, 1981, 95 Stat. 1381, related to use of solar energy systems in new facilities, prior to repeal by Pub. L. 97–214, §§ 7(1), 12(a), July 12, 1982, 96 Stat. 173, 176, effective Oct. 1, 1982, and applicable to military construction projects, and to construction and acquisition of military family housing authorized before, on, or after such date. See section 2915 of this title.
Subsec. (g)(3). Pub. L. 115–232, § 312(e)(2), substituted “shall require” for “may require” and “consistent with energy resilience and cybersecurity requirements and associated metrics” for “consistent with energy resilience requirements and metrics”.
2017—Subsec. (g)(3), (4). Pub. L. 115–91 added pars. (3) and (4).
2015—Subsec. (j). Pub. L. 114–92, § 2813(1), substituted “Conveyance of Additional” for “Construction of” in heading.
“(C) the additional utility infrastructure was planned and coordinated with the entity operating the conveyed utility system; and”.
2011—Subsec. (a). Pub. L. 112–81, § 1061(21)(A), struck out par. (1) designation before “The Secretary of a military department” and struck out pars. (2) and (3) which related to conditions for entry into a contract to convey all or part of a utility system and conditions under which the Secretary concerned could not reconsider conversion to contractor operation under section 2461 of this title for a five-year period, respectively.
2009—Subsec. (a)(2)(A)(ii). Pub. L. 111–84, § 2821(a), substituted “system by 10 percent of the long-term cost for provision of those utility services in the agency tender; and” for “system; and”.
Subsec. (a)(3). Pub. L. 111–84, § 2821(b), added par. (3).
2008—Subsecs. (j), (k). Pub. L. 110–417 added subsec. (j) and redesignated former subsec. (j) as (k).
2006—Subsec. (a). Pub. L. 109–163, § 2823(a), designated existing provisions as par. (1) and added par. (2).
Subsec. (c)(1). Pub. L. 109–163, § 2823(b), substituted “may require” for “shall require” in introductory provisions.
Subsec. (c)(3). Pub. L. 109–163, § 2823(c)(2), redesignated subsec. (c)(3) as (d).
Subsec. (d). Pub. L. 109–163, § 2823(c)(2), redesignated subsec. (c)(3) as (d), substituted “Contracts for Utility Services.—(1) Except as provided in paragraph (2), a contract” for “A contract”, “subsection (c)” for “paragraph (1)”, and “10 years” for “50 years”, and added par. (2). Former subsec. (d) redesignated (e).
Subsec. (e). Pub. L. 109–163, § 2823(c)(1), redesignated subsec. (d) as (e). Former subsec. (e) redesignated (f).
Pub. L. 109–163, § 2823(c)(1), redesignated subsec. (e) as (f). Former subsec. (f) redesignated (g).
Subsec. (g). Pub. L. 109–163, § 2823(c)(1), redesignated subsec. (f) as (g). Former subsec. (g) redesignated (h).
Subsec. (h). Pub. L. 109–163, § 2823(d)(2), substituted “subsection (a)(2)” for “subsection (e)”.
Pub. L. 109–163, § 2823(c)(1), redesignated subsec. (g) as (h). Former subsec. (h) redesignated (i).
Subsecs. (i), (j). Pub. L. 109–163, § 2823(c)(1), redesignated subsecs. (h) and (i) as (i) and (j), respectively.
2000—Subsec. (b). Pub. L. 106–398, § 1 [div. B, title XXVIII, § 2813(a)], designated existing provisions as par. (1) and added pars. (2) and (3).
Subsec. (f). Pub. L. 106–398, § 1 [div. B, title XXVIII, § 2813(b)], designated existing provisions as par. (1) and added par. (2).
Subsecs. (h) to (j). Pub. L. 106–398, § 1 [[div. A], title X, § 1087(a)(15)], redesignated subsecs. (i) and (j) as (h) and (i), respectively.
1999—Subsec. (c)(3). Pub. L. 106–65, § 2812(a), added par. (3).
Subsec. (e)(1). Pub. L. 106–65, § 1067(1), substituted “and the Committee on Armed Services” for “and the Committee on National Security” in introductory provisions.
Subsec. (g). Pub. L. 106–65, § 2812(c)(2), added subsec. (g). Former subsec. (g) redesignated (i).
Subsec. (g)(2)(B). Pub. L. 106–65, § 2812(b), substituted “Real property, easements,” for “Easements”.
Subsecs. (h) to (j). Pub. L. 106–65, § 2812(c)(1), redesignated subsecs. (g) and (h) as (i) and (j), respectively.

References: § 804
 § 804
 § 11
 § 901
 § 312
 § 2813
 § 1061
 § 2821
 § 2821
 § 2823
 § 2823
 § 2823
 § 2823
 § 2823
 § 2823
 § 2823
 § 2823
 § 2823
 § 2823
 § 1
 § 2813
 § 1
 § 2813
 § 1
 § 1087
 § 2812
 § 1067
 § 2812
 § 2812
 § 2812