S.Amdt. 2379

1. Adds SEC. 827. MULTIYEAR PROCUREMENT AUTHORITY FOR THE DEPARTMENT OF DEFENSE FOR THE PURCHASE OF SYNTHETIC FUELS at the end of subtitle B of title VIII

   Adds a section

   Inserted: SEC. 827. MULTIYEAR PROCUREMENT AUTHORITY FOR THE DEPARTMENT OF DEFENSE FOR THE PURCHASE OF SYNTHETIC FUELS.

   Inserted: (a) Multiyear Procurement Authorized.--

   Inserted: (1) In general.--Chapter 141of title 10, United States Code, as amended by section 826cc of this Act, is further amended by adding at the end the following new section:

   Inserted: "Sec. 2410r Multiyear procurement authority: purchase of synthetic fuels

   Inserted: "(a) Multiyear Contracts Authorized.--Subject to subsections (b) and (c), the head of an agency may enter into contracts for a period not to exceed 10 years for the purchase of synthetic fuels.

   Inserted: "(b) Limitations on Contracts for Periods in Excess of Five Years.--The head of an agency may exercise the authority in subsection (a) to enter a contract for a period in excess of five years only if the head of the agency determines, on the basis of a business case prepared by the agency, that--

   Inserted: "(1) the proposed purchase of fuels under such contract is cost effective for the agency; and

   Inserted: "(2) it would not be possible to purchase fuels from the source in an economical manner without the use of a contract for a period in excess of five years.

   Inserted: "(c) Limitation on Lifecycle Greenhouse Gas Emissions.--The head of an agency may not purchase synthetic fuels under the authority in subsection (a) unless the lifecycle greenhouse gas emissions from such fuels are not greater than the lifecycle greenhouse gas emissions from conventional petroleum-based fuels that are used in the same application.

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

   Inserted: "(1) The term 'head of an agency' has the meaning given that term in section 2302(1) of this title.

   Inserted: "(2) The term 'synthetic fuel' means any liquid, gas, or combination thereof that--

   Show 11 more inserted paragraphsShow less

   Inserted: "(A) can be used as a substitute for petroleum or natural gas (or any derivative thereof, including chemical feedstocks); and

   Inserted: "(B) is produced by chemical or physical transformation of domestic sources of energy.".

   Inserted: (2) Clerical amendment.--The table of sections at the beginning of chapter 141 of such title, as so amended, is further amended by adding at the end the following new item:

   Inserted: "2410r. Multiyear procurement authority: purchase of synthetic fuels.".

   Inserted: (b) Regulations.--

   Inserted: (1) In general.--Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall prescribe regulations requiring the head of an agency initiating a multiyear contract as authorized by section 2410r of title 10, United States Code (as added by subsection (a)), to find that--

   Inserted: (A) there is a reasonable expectation that throughout the contemplated contract period the head of the agency will request funding for the contract at the level required to avoid contract cancellation;

   Inserted: (B) there is a stable design for all related technologies to the purchase of synthetic fuels as so authorized; and

   Inserted: (C) the technical risks associated with such technologies are not excessive.

   Inserted: (2) Minimum anticipated savings.--The regulations required by paragraph (1) shall provide that, in any case in which the estimated total expenditure under a multiyear contract (or several multiyear contracts with the same prime contractor) under section 2410r of title 10, United States Code (as so added), are anticipated to be more than (or, in the case of several contracts, the aggregate of which is anticipated to be more than) $540,000,000 (in fiscal year 1990 constant dollars), the head of an agency may initiate such contract under such section only upon a finding that use of such contract will result in savings exceeding 10 percent of the total anticipated costs of procuring the synthetic fuel concerned through annual contracts. If such estimated savings will exceed 5 percent of the total anticipated costs of procuring the synthetic fuel concerned through annual contracts, but not exceed 10 percent of such costs, the head of the agency may initiate such contract under such section only upon a finding in writing that an exceptionally strong case has been made with regard to findings required in paragraph (1).

   Inserted: (3) Limitation on use of authority.--No contract may be entered into under the authority in section 2410r of title 10, United States Code (as so added), until the regulations required by paragraph (1) are prescribed.

   Original wording

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

Read automatically from the Congressional Record. Check the original before relying on it.

As printed