To authorize the Department of Defense to participate in programs for the management of energy demand or the reduction of energy usage during peak periods.

1. Adds SEC. __. DEPARTMENT OF DEFENSE PARTICIPATION IN PROGRAMS FOR MANAGEMENT OF ENERGY DEMAND OR REDUCTION OF ENERGY USAGE DURING PEAK PERIODS at the appropriate place in title III

   Adds a section

   Inserted: SEC. __. DEPARTMENT OF DEFENSE PARTICIPATION IN PROGRAMS FOR MANAGEMENT OF ENERGY DEMAND OR REDUCTION OF ENERGY USAGE DURING PEAK PERIODS.

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

   Inserted: "Sec. 2919. Department of Defense participation in programs for management of energy demand or reduction of energy usage during peak periods

   Inserted: "(a) Participation in Demand Response or Load Management Programs.--The Secretary of Defense, the Secretaries of the military departments, the heads of the Defense Agencies, and the heads of other instrumentalities of the Department of Defense are authorized to participate in demand response programs for the management of energy demand or the reduction of energy usage during peak periods conducted by any of the following parties:

   Inserted: "(1) An electric utility

   Inserted: "(2) An independent system operator.

   Inserted: "(3) A State agency.

   Inserted: "(4) A third party entity (such as a demand response aggregator or curtailment service provider) implementing demand response programs on behalf of an electric utility, independent system operator, or State agency.

   Inserted: "(b) Treatment of Certain Financial Incentives.--Financial incentives received from an entity specified in subsection (a) shall be received in cash and deposited into the Treasury as a miscellaneous receipt. Amounts received shall be available for obligation only to the extent provided in advance in an appropriations Act. The Secretary concerned or the head of the Defense Agency or other instrumentality, as the case may be, shall pay for the cost of the design and implementation of these services in full in the year in which they are received from amounts provided in advance in an appropriations Act.

   Inserted: "(c) Use of Certain Financial Incentives.--Of the amounts derived from financial incentives awarded to a military installation as described in subsection (b) and provided for in advance by an appropriations Act--

   Inserted: "(1) not less than 100 percent shall be made available for use at such military installation; and

   Inserted: "(2) not less than 30 percent shall be made available for energy management initiatives at such installation.".

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

   Inserted: "2919. Department of Defense participation in programs for management of energy demand or reduction of energy usage during peak periods.".

   The amendment doesn't say where this goes; the clerk decides.

   Original wording

   At the appropriate place in title III, insert the following:

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As printed