[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 658 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 658
To extend the authority for Energy Savings Performance Contracts and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 19, 2003
Mr. Bingaman (for himself and Mr. Dorgan) introduced the following
bill; which was read twice and referred to the Committee on Energy and
Natural Resources
_______________________________________________________________________
A BILL
To extend the authority for Energy Savings Performance Contracts and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Energy Savings Performance Contracts
Amendments Act of 2003''.
SEC. 2. PERMANENT EXTENSION.
Section 801(c) of the National Energy Conservation Policy Act (42
U.S.C. 8287(c)) is repealed.
SEC. 3. COST SAVINGS FROM REPLACEMENT FACILITIES.
Section 801(a) of the National Energy Conservation Policy Act (42
U.S.C. 8287(a)) is amended by adding at the end the following new
paragraph:
``(3)(A) In the case of an energy savings contract or energy
savings performance contract providing for energy savings through the
construction and operation of one or more buildings or facilities to
replace one or more existing buildings or facilities, benefits
ancillary to the purpose of such contract under paragraph (1) may
include savings resulting from reduced costs of operation and
maintenance at such replacement buildings or facilities when compared
with costs of operation and maintenance at the buildings or facilities
being replaced.
``(B) Notwithstanding paragraph (2)(B), aggregate annual payments
by an agency under an energy savings contract or energy savings
performance contract referred to in subparagraph (A) may take into
account (through the procedures developed pursuant to this section)
savings resulting from reduced costs of operation and maintenance as
described in subparagraph (A).''.
SEC. 4. ENERGY SAVINGS.
Section 804(2) of the National Energy Conservation Policy Act (42
U.S.C. 8287c(2)) is amended to read as follows:
``(2) The term `energy savings' means--
``(A) a reduction in the cost of energy or water,
from a base cost established through a methodology set
forth in the contract, used in an existing federally
owned building or buildings or other federally owned
facilities as a result of--
``(i) the lease or purchase of operating
equipment, improvements, altered operation and
maintenance, or technical services;
``(ii) the increased efficient use of
existing energy sources by cogeneration or heat
recovery, excluding any cogeneration process
for other than a federally owned building or
buildings or other federally owned facilities;
or
``(iii) the increased efficient use of
existing water sources; or
``(B) in the case of a replacement building or
facility described in section 801(a)(3), a reduction in
the cost of energy, from a base cost established
through a methodology set forth in the contract, that
would otherwise be utilized in one or more existing
federally owned buildings or other federally owned
buildings by reason of the construction and operation
of the replacement building or facility.''.
SEC. 5. ENERGY SAVINGS CONTRACT.
Section 804(3) of the National Energy Conservation Policy Act (42
U.S.C. 8287c(3)) is amended to read as follows:
``(3) The terms `energy savings contract' and `energy
savings performance contract' mean a contract which provides
for--
``(A) the performance of services for the design,
acquisition, installation, testing, operation, and,
where appropriate, maintenance and repair, of an
identified energy or water conservation measure or
series of measures at one or more locations; or
``(B) energy savings through the construction and
operation of one or more buildings or facilities to
replace one or more existing buildings or
facilities.''.
SEC. 6. ENERGY OR WATER CONSERVATION MEASURE.
Section 804(4) of the National Energy Conservation Policy Act (42
U.S.C. 8287c(4)) is amended to read as follows:
``(4) The term `energy or water conservation measure'
means--
``(A) an energy conservation measure, as defined in
section 551(4) (42 U.S.C. 8259(4)); or
``(B) a water conservation measure that improves
water efficiency, is life cycle cost effective, and
involves water conservation, water recycling or reuse,
improvements in operation or maintenance efficiencies,
retrofit activities or other related activities, not at
a Federal hydroelectric facility.''.
SEC. 7. REVIEW.
Within 180 days after the date of the enactment of this Act, the
Secretary of Energy shall complete a review of the Energy Savings
Performance Contract program to identify statutory, regulatory, and
administration obstacles that prevent Federal agencies from fully
utilizing the program. In addition, this review shall identify all
areas for increasing program flexibility and effectiveness, including
audit and measurement verification requirements, accounting for energy
use in determining savings, contracting requirements, and energy
efficiency services covered. The Secretary shall report these findings
to the Committee on Energy and Commerce of the House of Representatives
and the Committee on Energy and Natural Resources of the Senate, and
shall implement identified administrative and regulatory changes to
increase program flexibility and effectiveness to the extent that such
changes are consistent with statutory authority.
SEC. 8. PILOT PROGRAM TO EXPAND ENERGY SAVINGS PERFORMANCE CONTRACTS TO
NON-BUILDING PROJECTS.
Title VIII of the National Energy Conservation Policy Act (42
U.S.C. 8287-8287c) is amended by adding at the end the following:
``SEC. 805. PILOT PROGRAM FOR ENERGY SAVINGS PERFORMANCE CONTRACT
INVESTMENTS IN NON-BUILDING ENERGY SAVINGS PROJECTS.
``(a) Authorization.--The Secretary of Defense and the heads of
other interested Federal agencies are authorized, on a pilot basis, to
enter into up to ten energy savings performance contracts under this
Title for the purpose of achieving savings, secondary savings, and
benefits incidental to those purposes, in non-building energy
efficiency improvement projects.
``(b) Selection of Projects.--The Secretary of Energy, in
consultation with the Secretary of Defense and the heads of other
interested Federal agencies, shall select up to ten contract projects
for this pilot program. The projects shall be selected to demonstrate
the applicability and benefit of energy savings performance contracting
to a range of non-building energy efficiency improvement projects.
``(c) Definitions.--For the purposes of this section:
``(1) The term `non-building' means any vehicle, device, or
equipment that is transportable under its own power by land,
sea, or air and consumes energy from any fuel source for the
purpose of such transportability, or to maintain a controlled
environment within such vehicle, device or equipment; or any
Federally owned equipment used to generate electricity or
transport water.
``(2) The term `secondary savings', means additional energy
or cost savings that are a direct consequence of the energy
savings that result from the energy efficiency improvements
that were financed and implemented pursuant to the energy
savings performance contract. Such `secondary savings' may
include, but are not limited to, energy and cost savings that
result from a reduction in the need for fuel delivery and
logistical support. In the case of electric generation
equipment, secondary savings may include the benefits of
increased efficiency in the production of electricity.
``(d) Report.--No later than three years after the enactment of
this section, the Secretary of Energy shall report to the Congress on
the progress and results of this program. Such report shall include: a
description of all projects undertaken; the energy and cost savings,
secondary savings, other benefits and problems resulting from such
projects; and the overall cost-benefit of such projects. The report
shall also include recommendations, developed in consultation with
those agencies that undertook projects under the program, as to whether
the authorization to enter into energy savings performance contract for
non-building projects should be extended, expanded, or otherwise
modified.''.
SEC. 9. UTILITY INCENTIVE PROGRAMS.
Section 546(c)(3) of the National Energy Conservation Policy Act
(42 U.S.C. 8256(c)(3)) is amended by striking ``facilities'' and
inserting ``facilities, equipment and vehicles''.
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