S.Amdt. 2316

1. Adds SEC. 827. PROCUREMENT OF UNCONVENTIONAL FUEL at the end of subtitle B of title VIII

   Adds a section

   Inserted: SEC. 827. PROCUREMENT OF UNCONVENTIONAL FUEL.

   Inserted: (a) Procurement Authorized.--Subchapter II of chapter 173 of title 10, United States Code, is amended by adding at the end the following new section:

   Inserted: "Sec. 2922g. Procurement of unconventional fuel

   Inserted: "(a) Long Term Contracts for Unconventional Fuel.--The Secretary of Defense may enter into contracts for the procurement of unconventional fuel. The term of any contract under this section may be such period as the Secretary considers appropriate, but not more than 25 years.

   Inserted: "(b) Waiver Authority.--(1) In procuring unconventional fuel, the Secretary may waive the application of any provision of law prescribing procedures to be followed in the formation of contracts, prescribing terms and conditions to be included in contracts, or regulating the performance of contracts if the Secretary determines that--

   Inserted: "(A) the waiver is necessary to procure such unconventional fuel for Government needs; and

   Inserted: "(B) In case of a contract in excess of 5 years, it would not be possible to procure such unconventional fuel from the source in an economical manner without the use of a contract for a period in excess of five years.

   Inserted: "(2) Any waiver that is applicable to a contract for the procurement of unconventional fuel under this subsection may also, at the election of the Secretary, apply to a subcontract under that contract.

   Inserted: "(c) Pricing Authority for Unconventional Fuel Purchased From Domestic Sources.--(1) The Secretary shall ensure that any purchase of unconventional fuel under a contract under this section is cost effective for the Department of Defense.

   Inserted: "(2) The Secretary may procure unconventional fuel from domestic sources at a price higher than comparable petroleum products, or include a price guarantee for the procurement of unconventional fuel from such sources, if the Secretary determines that--

   Inserted: "(A) such price is necessary to develop or maintain an assured supply of unconventional fuel produced from domestic sources; and

   Inserted: "(B) supplies of unconventional fuel from domestic sources cannot be effectively increased or obtained at lower prices.

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   Inserted: "(d) Obligation of Funds.--At the time of award of any contract for the procurement of unconventional fuel under this section in excess of one year, the Secretary may obligate annually funds sufficient to cover the annual costs of the contract. In the event that funds are not available for the continuation of the contract in any subsequent years, the contract shall be cancelled or terminated. The Secretary may fund any cancellation or termination liability out of funds originally available at the time of award, funds currently available at the time termination liability is incurred, or funds specifically appropriated for those payments.

   Inserted: "(e) Definitions.--In this section:

   Inserted: "(1) The term 'domestic source' means a facility (including feedstock) located physically in the United States that produces or generates unconventional fuel.

   Inserted: "(2) The term 'unconventional fuel' means transportation fuel that is derived from a feedstock other than conventional petroleum and includes transportation services related to the delivery of such fuel.".

   Inserted: (b) Clerical Amendment.--The table of sections for at the beginning of subchapter II of chapter 173 of such title is amended by adding at the end the following new item:

   Inserted: "2922g. Procurement of unconventional fuel.".

   Original wording

   At the end of subtitle B of title VIII, add the following:

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As printed