§ 2911. Energy policy of the Department of Defense

• (a) The Secretary of Defense shall ensure the readiness of the armed forces for their military missions by pursuing energy security and energy resilience.
• (b) In order to achieve the policy set forth in subsection (a), the Secretary of Defense may—
  • (1) establish metrics and standards for the assessment of energy resilience;
  • (2) require the Secretary of a military department to perform mission assurance and readiness assessments of energy power systems for mission critical assets and supporting infrastructure, applying uniform mission standards established by the Secretary of Defense;
  • (3) require the Secretary of a military department to establish and maintain an energy resilience master plan for an installation;
  • (4) authorize the use of energy security and energy resilience, including the benefits of on-site generation resources that reduce or avoid the cost of backup power, as factors in the cost-benefit analysis for procurement of energy; and
  • (5) in selecting facility energy projects that will use renewable energy sources, pursue energy security and energy resilience by giving favorable consideration to projects that provide power directly to a military facility or into the installation electrical distribution network.
• (c)
  • (1) The Secretary of Defense shall submit to the congressional defense committees the energy performance goals for the Department of Defense regarding transportation systems, support systems, utilities, and infrastructure and facilities.
  • (2) The energy performance goals shall be submitted annually not later than the date on which the President submits to Congress the budget for the next fiscal year under section 1105 of title 31 and cover that fiscal year as well as the next five, l0, and 20 years. The Secretary shall identify changes to the energy performance goals since the previous submission.
  • (3) The Secretary of Defense shall include the energy security and resilience goals of the Department of Defense in the installation energy report submitted under section 2925(a) of this title for fiscal year 2018 and every fiscal year thereafter. In the development of energy security and resilience goals, the Department of Defense shall conform with the definitions of energy security and resilience under this title. The report shall include the amount of critical energy load, together with the level of availability and reliability by fiscal year the Department of Defense deems necessary to achieve energy security and resilience.
• (d)
  • (1) The Secretary of Defense shall develop a comprehensive master plan for the achievement of the energy performance goals of the Department of Defense, as set forth in laws, executive orders, and Department of Defense policies.
  • (2) The master plan shall include the following:
    • (A) A separate master plan, developed by each military department and Defense Agency, for the achievement of energy performance goals.
    • (B) The use of a baseline standard for the measurement of energy consumption by transportation systems, support systems, utilities, and facilities and infrastructure that is consistent for all of the military departments.
    • (C) A method of measurement of reductions or conservation in energy consumption that provides for the taking into account of changes in the current size of fleets, number of facilities, and overall square footage of facility plants.
    • (D) Metrics to track annual progress in meeting energy performance goals.
    • (E) A description of specific requirements, and proposed investments, in connection with the achievement of energy performance goals reflected in the budget of the President for each fiscal year (as submitted to Congress under section 1105(a) of title 31 ).
    • (F) The up-to date list of energy-efficient products maintained under section 2915(e)(2) of this title .
  • (3) Not later than 30 days after the date on which the budget of the President is submitted to Congress for a fiscal year under section 1105(a) of title 31 , the Secretary shall submit the current version of the master plan to Congress.
• (e) For the purpose of developing and implementing the energy performance goals and energy performance master plan, the Secretary of Defense shall consider at a minimum the following:
  • (1) Opportunities to reduce the current rate of consumption of energy, the future demand for energy, and the requirement for the use of energy.
  • (2) Opportunities to enhance energy resilience to ensure the Department of Defense has the ability to prepare for and recover from energy disruptions that affect mission assurance on military installations.
  • (3) Opportunities to implement conservation measures to improve the efficient use of energy.
  • (4) Opportunities to pursue alternative energy initiatives, including the use of alternative fuels and hybrid-electric drive in military vehicles and equipment.
  • (5) Opportunities for the high-performance construction, lease, operation, and maintenance of buildings.
  • (6) Cost effectiveness, cost savings, and net present value of alternatives.
  • (7) The value of diversification of types and sources of energy used.
  • (8) The value of economies-of-scale associated with fewer energy types used.
  • (9) The value of the use of renewable energy sources.
  • (10) The value of incorporating electric, hybrid-electric, and high efficiency vehicles into vehicle fleets.
  • (11) The potential for an action to serve as an incentive for members of the armed forces and civilian personnel to reduce energy consumption or adopt an improved energy performance measure.
  • (12) Opportunities for improving energy security for facility energy projects that will use renewable energy sources.
  • (13) Opportunities to leverage financing provided by a non-Department entity to address installation energy needs.
• (f) For the purpose of implementing the energy performance master plan, the Secretary of Defense shall provide that the selection of energy conservation measures, including energy efficient maintenance, shall be limited to those measures that—
  • (1) are readily available;
  • (2) demonstrate an economic return on the investment;
  • (3) are consistent with the energy performance goals and energy performance master plan for the Department; and
  • (4) are supported by the special considerations specified in subsection (c).
• (g)
  • (1) It shall be the goal of the Department of Defense—
    • (A) to produce or procure not less than 25 percent of the total quantity of facility energy it consumes within its facilities during fiscal year 2025 and each fiscal year thereafter from renewable energy sources; and
    • (B) to produce or procure facility energy from renewable energy sources whenever the use of such renewable energy sources is consistent with the energy performance goals and energy performance master plan for the Department and supported by the special considerations specified in subsection (c).
  • (2) To help ensure that the goal specified in paragraph (1)(A) regarding the use of renewable energy by the Department of Defense is achieved, the Secretary of Defense shall establish an interim goal for fiscal year 2018 for the production or procurement of facility energy from renewable energy sources.
  • (3)
    • (A) The Secretary of Defense shall establish a policy to maximize savings for the bulk purchase of replacement renewable energy certificates in connection with the development of facility energy projects using renewable energy sources.
    • (B) Under the policy required by subparagraph (A), the Secretary of a military department shall submit requests for the purchase of replacement renewable energy certificates to a centralized purchasing authority maintained by such department or the Defense Logistics Agency with expertise regarding—
      • (i) the market for renewable energy certificates;
      • (ii) the procurement of renewable energy certificates; and
      • (iii) obtaining the best value for the military department by maximizing the purchase of renewable energy certificates from projects placed into service before January 1, 1999 .
    • (C) The centralized purchasing authority shall solicit industry for the most competitive offer for replacement renewable energy certificates, to include a combination of renewable energy certificates from new projects and projects placed into service before January 1, 1999 .
    • (D) Subparagraph (B) does not prohibit the Secretary of a military department from entering into an agreement outside of the centralized purchasing authority if the Secretary will obtain the best value by bundling the renewable energy certificates with the facility energy project through a power purchase agreement or other contractual mechanism at the installation.
    • (E) Nothing in this paragraph shall be construed to authorize the purchase of renewable energy certificates to meet Federal goals or mandates in the absence of the development of a facility energy project using renewable energy sources.
    • (F) This policy does not make the purchase of renewable energy certificates mandatory, but the policy shall apply whenever original renewable energy certificates are proposed to be swapped for replacement renewable energy certificates.

§ 2912. Availability and use of energy cost savings

• (a) An amount of the funds appropriated to the Department of Defense for a fiscal year that is equal to the amount of energy cost savings realized by the Department, including financial benefits resulting from shared energy savings contracts entered into under section 2913 of this title , shall remain available for obligation under subsection (b) or (c), as the case may be, until expended, without additional authorization or appropriation.
• (b) Except as provided in subsection (c) with respect to operational energy cost savings, the Secretary of Defense shall provide that the amount that remains available for obligation under subsection (a) and the funds made available under section 2916(b)(2) of this title shall be used as follows:
  • (1) One-half of the amount shall be used for the implementation of additional energy resilience, mission assurance, weather damage repair and prevention, energy conservation, and energy security measures, including energy resilience and energy conservation construction projects, at buildings, facilities, or installations of the Department of Defense or related to vehicles and equipment of the Department, which are designated, in accordance with regulations prescribed by the Secretary of Defense, by the head of the department, agency, or instrumentality that realized the savings referred to in subsection (a).
  • (2) One-half of the amount shall be used at the installation at which the savings were realized, as determined by the commanding officer of such installation consistent with applicable law and regulations, for—
    • (A) improvements to existing military family housing units;
    • (B) any unspecified minor construction project that will enhance the quality of life of personnel; or
    • (C) any morale, welfare, or recreation facility or service.
• (c) The amount that remains available for obligation under subsection (a) that relates to operational energy cost savings realized by the Department shall be used for the implementation of additional operational energy resilience, efficiencies, mission assurance, energy conservation, or energy security within the department, agency, or instrumentality that realized that savings.
• (d) Financial incentives received from gas or electric utilities under section 2913 of this title shall be credited to an appropriation designated by the Secretary of Defense. Amounts so credited shall be merged with the appropriation to which credited and shall be available for the same purposes and the same period as the appropriation with which merged.

§ 2913. Energy savings contracts and activities

• (a)
  • (1) The Secretary of Defense shall develop a simplified method of contracting for shared energy savings contract services that will accelerate the use of these contracts with respect to military installations and will reduce the administrative effort and cost on the part of the Department of Defense as well as the private sector.
  • (2) In carrying out paragraph (1), the Secretary of Defense may—
    • (A) request statements of qualifications (as prescribed by the Secretary of Defense), including financial and performance information, from firms engaged in providing shared energy savings contracting;
    • (B) designate from the statements received, with an update at least annually, those firms that are presumptively qualified to provide shared energy savings services;
    • (C) select at least three firms from the qualifying list to conduct discussions concerning a particular proposed project, including requesting a technical and price proposal from such selected firms for such project; and
    • (D) select from such firms the most qualified firm to provide shared energy savings services pursuant to a contractual arrangement that the Secretary determines is fair and reasonable, taking into account the estimated value of the services to be rendered and the scope and nature of the project.
  • (3) In carrying out paragraph (1), the Secretary may also provide for the direct negotiation, by departments, agencies, and instrumentalities of the Department of Defense, of contracts with shared energy savings contractors that have been selected competitively and approved by any gas or electric utility serving the department, agency, or instrumentality concerned.
• (b) The Secretary of Defense shall permit and encourage each military department, Defense Agency, and other instrumentality of the Department of Defense to participate in programs conducted by any gas or electric utility for the management of energy demand or for energy conservation.
• (c) The Secretary of Defense may authorize any military installation to accept any financial incentive, goods, or services generally available from a State or local government or gas or electric utility, to adopt technologies and practices that the Secretary determines are in the interests of the United States and consistent with the energy performance goals for the Department of Defense.
• (d)
  • (1) The Secretary of Defense may authorize the Secretary of a military department having jurisdiction over a military installation to enter into agreements with gas or electric utilities to design and implement cost-effective demand and conservation incentive programs (including energy management services, facilities alterations, and the installation and maintenance of energy saving devices and technologies by the utilities) to address the requirements and circumstances of the installation.
  • (2) If an agreement under this subsection provides for a utility to advance financing costs for the design or implementation of a program referred to in that paragraph to be repaid by the United States, the cost of such advance may be recovered by the utility under terms no less favorable than those applicable to its most favored customer.
  • (3) Subject to the availability of appropriations, repayment of costs advanced under paragraph (2) shall be made from funds available to a military department for the purchase of utility services.
  • (4) An agreement under this subsection shall provide that title to any energy-saving device or technology installed at a military installation pursuant to the agreement vest in the United States. Such title may vest at such time during the term of the agreement, or upon expiration of the agreement, as determined to be in the best interests of the United States.

§ 2914. Energy resilience and conservation construction projects

• (a) The Secretary of Defense may carry out a military construction project for energy resilience, energy security, or energy conservation, not previously authorized, using funds appropriated or otherwise made available for that purpose.
• (b)
  • (1) When a decision is made to carry out a project under this section, the Secretary of Defense shall notify the appropriate committees of Congress of that decision. The project may then be carried out only after the end of the 14-day period beginning on the date the notification is received by such committees in an electronic medium pursuant to section 480 of this title .
  • (2) The Secretary of Defense shall include in each notification submitted under paragraph (1) the following information:
    • (A) In the case of a military construction project for energy conservation, the justification and current cost estimate for the project, the expected savings-to-investment ratio, simple payback estimates, and the project’s measurement and verification cost estimate.
    • (B) In the case of a military construction project for energy resilience or energy security, the rationale for how the project would enhance mission assurance, support mission critical functions, and address known vulnerabilities.
• (c) Not later than 90 days after the end of each fiscal year (beginning with fiscal year 2017), the Secretary of Defense shall submit to the appropriate committees of Congress a report on the status of the planned and active projects carried out under this section (including completed projects), and shall include in the report with respect to each such project the following information:
  • (1) The title, location, a brief description of the scope of work, the original project cost estimate, and the current working cost estimate.
  • (2) In the case of a military construction project for energy conservation—
    • (A) the original expected savings-to-investment ratio and simple payback estimates and measurement and verification cost estimate;
    • (B) the most current expected savings-to-investment ratio and simple payback estimates and measurement and verification plan and costs; and
    • (C) a brief description of the measurement and verification plan and planned funding source.
  • (3) In the case of a military construction project for energy resilience or energy security, the rationale for how the project would enhance mission assurance, support mission critical functions, and address known vulnerabilities.
  • (4) Such other information as the Secretary considers appropriate.

§ 2915. Facilities: use of renewable forms of energy and energy efficient products

• (a) The Secretary of Defense shall encourage the use of energy systems using solar energy or other renewable forms of energy as a source of energy for military construction projects (including military family housing projects) and facility repairs and renovations where use of such form of energy is consistent with the energy performance goals and energy performance master plan for the Department of Defense developed under section 2911 of this title and supported by the special considerations specified in subsection (e) of such section.
• (b)
  • (1) The Secretary concerned shall require that the design for the construction, repair, or renovation of facilities (including family housing and back-up power generation facilities) requires consideration of energy systems using solar energy or other renewable forms of energy when use of a renewable form of energy—
    • (A) is consistent with the energy performance goals and energy performance master plan for the Department of Defense developed under section 2911 of this title ; and
    • (B) supported by the special considerations specified in subsection (e) of such section.
  • (2) The Secretary concerned shall require that contracts for construction resulting from such design include a requirement that energy systems using solar energy or other renewable forms of energy be installed if such systems can be shown to be cost effective.
• (c)
  • (1) For the purposes of this section, an energy system using solar energy or other renewable forms of energy for a facility shall be considered to be cost effective if the difference between (A) the original investment cost of the energy system for the facility with such a system, and (B) the original investment cost of the energy system for the facility without such a system can be recovered over the expected life of the facility.
  • (2) A determination under paragraph (1) concerning whether a cost-differential can be recovered over the expected life of a facility shall be made using the life-cycle cost methods and procedures established pursuant to section 544(a) of the National Energy Conservation Policy Act ( 42 U.S.C. 8254(a) ).
• (d) In order to equip a military construction project (including a military family housing project) with heating equipment, cooling equipment, or both heating and cooling equipment using solar energy or other renewable forms of energy or with a passive energy system using solar energy or other renewable forms of energy, the Secretary concerned may authorize an increase in any otherwise applicable limitation with respect to the number of square feet or the cost per square foot of the project by such amount as may be necessary for such purpose. Any such increase under this subsection shall be in addition to any other administrative increase in cost per square foot or variation in floor area authorized by law.
• (e)
  • (1) The Secretary of Defense shall ensure, to the maximum extent practicable, that energy efficient products meeting the requirements of the Department of Defense are used in construction, repair, or renovation of facilities by or for the Department carried out under chapter 169 of this title if such products are readily available and their use is consistent with the energy performance goals and energy performance master plan for the Department developed under section 2911 of this title and supported by the special considerations specified in subsection (e) of such section.
  • (2)
    • (A) The Secretary of Defense shall prescribe a definition of the term “energy-efficient product” for purposes of this subsection and establish and maintain a list of products satisfying the definition. The definition and list shall be developed in consultation with the Secretary of Energy to ensure, to the maximum extent practicable, consistency with definitions of the term used by other Federal agencies.
    • (B) The Secretary shall modify the definition and list of energy-efficient products as necessary to account for emerging or changing technologies.
    • (C) The list of energy-efficient products shall be included as part of the energy performance master plan developed pursuant to section 2911(d)(2) of this title .
  • (3) In determining the energy efficiency of products, the Secretary shall consider products that—
    • (A) meet or exceed Energy Star specifications; or
    • (B) are listed on the Federal Energy Management Program Product Energy Efficiency Recommendations product list of the Department of Energy.

§ 2916. Sale of electricity from alternate energy and cogeneration production facilities

• (a) The Secretary of a military department may sell, contract to sell, or authorize the sale by a contractor to a public or private utility company of electrical energy generated from alternate energy or cogeneration type production facilities which are under the jurisdiction (or produced on land which is under the jurisdiction) of the Secretary concerned. The sale of such energy shall be made under such regulations, for such periods, and at such prices as the Secretary concerned prescribes consistent with the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2601 et seq.).
• (b)
  • (1) Except as provided in paragraph (3), proceeds from sales under subsection (a) shall be credited to the appropriation account currently available to the military department concerned for the supply of electrical energy.
  • (2) Subject to the availability of appropriations for this purpose, proceeds credited under paragraph (1) may be used to carry out military construction projects under the energy performance plan developed by the Secretary of Defense under section 2911(c) 1 1 See References in Text note below. of this title, including minor military construction projects authorized under section 2805 of this title that are designed to increase energy conservation.
  • (3) In the case of proceeds from a sale of electrical energy generated from any geothermal energy resource—
    • (A) 50 percent shall be credited to the appropriation account described in paragraph (1); and
    • (B) 50 percent shall be deposited in a special account in the Treasury established by the Secretary concerned which shall be provided directly to the commander of the military installation in which the geothermal energy resource is located to be used for—
      • (i) military construction projects described in paragraph (2) that benefit the military installation where the geothermal energy resource is located; or
      • (ii) energy or water security projects that—
        • (I) benefit the military installation where the geothermal energy resource is located;
        • (II) the commander of the military installation determines are necessary; and
        • (III) are directly coordinated with local area energy or groundwater governing authorities.
• (c) Before carrying out a military construction project described in subsection (b) using proceeds from sales under subsection (a), the Secretary concerned shall notify Congress of the project, the justification for the project, and the estimated cost of the project. The project may be carried out only after the end of the 14-day period beginning on the date the notification is received by Congress in an electronic medium pursuant to section 480 of this title .

§ 2917. Development of geothermal energy on military lands

• (a) The Secretary of a military department may develop, or authorize the development of, any geothermal energy resource within lands under the Secretary’s jurisdiction, including public lands, for the use or benefit of the Department of Defense if that development is in the public interest, as determined by the Secretary concerned, and will not deter commercial development and use of other portions of such resource if offered for leasing.
• (b) The development of a geothermal energy project under subsection (a) should include consideration of energy security in the design and development of the project.

§ 2918. Fuel sources for heating systems; prohibition on converting certain heating facilities

• (a)
  • (1) The Secretary of the military department concerned shall provide that the primary fuel source to be used in any new heating system constructed on lands under the jurisdiction of the military department is the most cost effective fuel for that heating system over the life cycle of the system.
  • (2) The Secretary of Defense shall prescribe regulations for the determination of the life-cycle cost effectiveness of a fuel for the purposes of paragraph (1).
• (b) The Secretary of a military department may not convert a heating facility at a United States military installation in Europe from a coal-fired facility to an oil-fired facility, or to any other energy source facility, unless the Secretary determines that the conversion—
  • (1) is required by the government of the country in which the facility is located; or
  • (2) is cost-effective over the life cycle of the facility.

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

• (a) 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:
  • (1) An electric utility.
  • (2) An independent system operator.
  • (3) A State agency.
  • (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.
• (b) Financial incentives received from an entity specified in subsection (a) shall be—
  • (1) received as a cost reduction in the utility bill for a facility; or
  • (2) deposited into the fund established under subsection (c) for use, to the extent provided for in an appropriations Act, by the military department, Defense Agency, or instrumentality receiving such financial incentive for energy management initiatives.
• (c) There is established in the Treasury a fund to be known as the “Energy Savings Financial Incentives Fund”. The Fund shall consist of any amount deposited in the Fund pursuant to subsection (b)(2) and amounts appropriated or otherwise made available to the Fund by law.

§ 2922. Liquid fuels and natural gas: contracts for storage, handling, or distribution

• (a) The Secretary of Defense and the Secretary of a military department may each contract for storage facilities for, or the storage, handling, or distribution of, liquid fuels or natural gas.
• (b) The period of a contract entered into under subsection (a) may not exceed 5 years. However, the contract may provide options for the Secretary to renew the contract for additional periods of not more than 5 years each, but not for more than a total of 30 years.
• (c) A contract under this section may contain an option for the purchase by the United States of the facility covered by the contract at the expiration or termination of the contract, without regard to subsections (a) and (b) of section 3324 of title 31 , and before approval of title to the underlying land by the Attorney General.

§ 2922a. Contracts for energy or fuel for military installations

• (a) Subject to subsection (b), the Secretary of a military department may enter into contracts for periods of up to 30 years—
  • (1) under section 2917 of this title ; and
  • (2) for the provision and operation of energy production facilities on real property under the Secretary’s jurisdiction or on private property and the purchase of energy produced from such facilities.
• (b) A contract may be made under subsection (a) only after the approval of the proposed contract by the Secretary of Defense.
• (c) The costs of contracts under this section for any year may be paid from annual appropriations for that year.
• (d) The Secretary concerned shall ensure energy security and energy resilience are included as critical factors in the provision and operation of energy production facilities under this section.

§ 2922b. Procurement of energy systems using renewable forms of energy

• (a) In procuring energy systems the Secretary of a military department shall procure systems that use solar energy or other renewable forms of energy whenever the Secretary determines that such procurement is possible, suited to supplying the energy needs of the military department under the jurisdiction of the Secretary, consistent with the energy performance goals and energy performance plan for the Department of Defense developed under section 2911 of this title , and supported by the special considerations specified in subsection (e) of such section.
• (b) The Secretary of Defense shall from time to time study uses for solar energy and other renewable forms of energy to determine what uses of such forms of energy may be reliable in supplying the energy needs of the Department of Defense. The Secretary of Defense, based upon the results of such studies, shall from time to time issue policy guidelines to be followed by the Secretaries of the military departments in carrying out subsection (a) and section 2915 of this title .

§ 2922c. Procurement of gasohol as motor vehicle fuel

• (a) Consistent with the vehicle management practices prescribed by the heads of affected departments and agencies of the Federal Government and consistent with Executive Order Number 12261, whenever the Secretary of Defense enters into a contract for the procurement of unleaded gasoline that is subject to tax under section 4081 of the Internal Revenue Code of 1986 for motor vehicles of a department or agency of the Federal Government other than the Department of Defense, the Secretary shall buy alcohol-gasoline blends containing at least 10 percent domestically produced alcohol in any case in which the price of such fuel is the same as, or lower than, the price of unleaded gasoline.
• (b) Whenever the Secretary issues a solicitation for bids to procure unleaded gasoline under subsection (a), the Secretary shall expressly include in such solicitation a request for bids on alcohol-gasoline blends containing at least 10 percent domestically produced alcohol.

§ 2922d. Procurement of fuel derived from coal, oil shale, and tar sands

• (a) The Secretary of Defense shall develop a strategy to use fuel produced, in whole or in part, from coal, oil shale, and tar sands (referred to in this section as a “covered fuel”) that are extracted by either mining or in-situ methods and refined or otherwise processed in the United States in order to assist in meeting the fuel requirements of the Department of Defense when the Secretary determines that it is in the national interest.
• (b) The Secretary of Defense may enter into one or more contracts or other agreements (that meet the requirements of this section) to procure a covered fuel to meet one or more fuel requirements of the Department of Defense.
• (c) A covered fuel may be procured under subsection (b) only if the covered fuel meets such standards for clean fuel produced from domestic sources as the Secretary of Defense shall establish for purposes of this section in consultation with the Department of Energy.
• (d) Subject to applicable provisions of law, any contract or other agreement for the procurement of covered fuel under subsection (b) may be for one or more years at the election of the Secretary of Defense.
• (e) In order to facilitate the procurement by the Department of Defense of covered fuel under subsection (b), the Secretary of Defense may carry out a comprehensive assessment of current and potential locations in the United States for the supply of covered fuel to the Department.

§ 2922e. Acquisition of certain fuel sources: authority to waive contract procedures; acquisition by exchange; sales authority

• (a) The Secretary of Defense may, for any purchase of a defined fuel source, 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—
  • (1) that market conditions for the defined fuel source have adversely affected (or will in the near future adversely affect) the acquisition of that defined fuel source by the Department of Defense; and
  • (2) the waiver will expedite or facilitate the acquisition of that defined fuel source for Government needs.
• (b) A waiver under subsection (a) may be made with respect to a particular contract or with respect to classes of contracts. Such a waiver that is applicable to a contract for the purchase of a defined fuel source may also be made applicable to a subcontract under that contract.
• (c) The Secretary of Defense may acquire a defined fuel source or services related to a defined fuel source by exchange of a defined fuel source or services related to a defined fuel source.
• (d) The Secretary of Defense may sell a defined fuel source of the Department of Defense if the Secretary determines that the sale would be in the public interest. The proceeds of such a sale shall be credited to appropriations of the Department of Defense for the acquisition of a defined fuel source or services related to a defined fuel source. Amounts so credited shall be available for obligation for the same period as the appropriations to which the amounts are credited.

§ 2922f. Preference for energy efficient electric equipment

• (a) In establishing a new requirement for electric equipment referred to in subsection (b) and in procuring electric equipment referred to in that subsection, the Secretary of a military department or the head of a Defense Agency, as the case may be, shall provide a preference for the procurement of the most energy efficient electric equipment available that meets the requirement or the need for the procurement, if providing such a preference is consistent with the energy performance goals and energy performance plan for the Department of Defense developed under section 2911 of this title and supported by the special considerations specified in subsection (e) of such section.
• (b) Subsection (a) applies to the following electric equipment:
  • (1) Electric lamps.
  • (2) Electric ballasts.
  • (3) Electric motors.
  • (4) Electric refrigeration equipment.

§ 2922g. Preference for motor vehicles using electric or hybrid propulsion systems

• (a) In leasing or procuring motor vehicles for use by a military department or Defense Agency, the Secretary of the military department or the head of the Defense Agency shall provide a preference for the lease or procurement of motor vehicles using electric or hybrid propulsion systems, including plug-in hybrid systems, if the electric or hybrid vehicles—
  • (1) will meet the requirements or needs of the Department of Defense; and
  • (2) are commercially available at a cost, including operating cost, reasonably comparable to motor vehicles containing only an internal combustion or heat engine using combustible fuel.
• (b) Subsection (a) does not apply with respect to tactical vehicles designed for use in combat.
• (c) The preference required by subsection (a) does not preclude the Secretary of Defense from authorizing the Secretary of a military department or head of a Defense Agency to provide a preference for another vehicle technology that reduces the consumption of fossil fuels if the Secretary of Defense determines that the technology is consistent with the energy performance goals and plan of the Department required by section 2911 of this title .

§ 2922h. Limitation on procurement of drop-in fuels

• (a) Except as provided in subsection (b), the Secretary of Defense may not make a bulk purchase of a drop-in fuel for operational purposes unless the fully burdened cost of that drop-in fuel is cost-competitive with the fully burdened cost of a traditional fuel available for the same purpose.
• (b)
  • (1) Subject to the requirements of paragraph (2), the Secretary of Defense may waive the limitation under subsection (a) with respect to a purchase.
  • (2) Not later than 30 days after issuing a waiver under this subsection, the Secretary shall submit to the congressional defense committees notice of the waiver. Any such notice shall include each of the following:
    • (A) The rationale of the Secretary for issuing the waiver.
    • (B) A certification that the waiver is in the national security interest of the United States.
    • (C) The expected fully burdened cost of the purchase for which the waiver is issued.
• (c) In this section:
  • (1) The term “drop-in fuel” means a neat or blended liquid hydrocarbon fuel designed as a direct replacement for a traditional fuel with comparable performance characteristics and compatible with existing infrastructure and equipment.
  • (2) The term “traditional fuel” means a liquid hydrocarbon fuel derived or refined from petroleum.
  • (3) The term “operational purposes”—
    • (A) means for the purposes of conducting military operations, including training, exercises, large scale demonstrations, and moving and sustaining military forces and military platforms; and
    • (B) does not include research, development, testing, evaluation, fuel certification, or other demonstrations.
  • (4) The term “fully burdened cost” means the commodity price of the fuel plus the total cost of all personnel and assets required to move and, when necessary, protect the fuel from the point at which the fuel is received from the commercial supplier to the point of use.

§ 2924. Definitions

In this chapter:

• (1) The term “defined fuel source” means any of the following:
  • (A) Petroleum.
  • (B) Natural gas.
  • (C) Coal.
  • (D) Coke.
• (2) The term “energy-efficient maintenance” includes—
  • (A) the repair of military vehicles, equipment, or facility and infrastructure systems, such as lighting, heating, or cooling equipment or systems, or industrial processes, by replacement with technology that—
    • (i) will achieve energy savings over the life-cycle of the equipment or system being repaired; and
    • (ii) will meet the same end needs as the equipment or system being repaired; and
  • (B) improvements in an operation or maintenance process, such as improved training or improved controls, that result in energy savings.
• (3) The term “hybrid”, with respect to a motor vehicle, means a motor vehicle that draws propulsion energy from onboard sources of stored energy that are both—
  • (A) an internal combustion or heat engine using combustible fuel; and
  • (B) a rechargeable energy storage system.
• (4) The term “operational energy” means the energy required for training, moving, and sustaining military forces and weapons platforms for military operations. The term includes energy used by tactical power systems and generators and weapons platforms.
• (5) The term “petroleum” means natural or synthetic crude, blends of natural or synthetic crude, and products refined or derived from natural or synthetic crude or from such blends.
• (6) The term “renewable energy source” means energy generated from renewable sources, including the following:
  • (A) Solar, including electricity.
  • (B) Wind.
  • (C) Biomass.
  • (D) Landfill gas.
  • (E) Ocean, including tidal, wave, current, and thermal.
  • (F) Geothermal, including electricity and heat pumps.
  • (G) Municipal solid waste.
  • (H) New hydroelectric generation capacity achieved from increased efficiency or additions of new capacity at an existing hydroelectric project. For purposes of this subparagraph, hydroelectric generation capacity is “new” if it was placed in service on or after January 1, 1999 .
  • (I) Thermal energy generated by any of the preceding sources.

§ 2925. Annual Department of Defense energy management reports

• (a) Not later than 120 days after the end of each fiscal year, the Secretary of Defense shall submit to the congressional defense committees an installation energy report detailing the fulfillment during that fiscal year of the energy performance goals for the Department of Defense under section 2911 of this title , including progress on energy resilience at military installations according to metrics developed by the Secretary. The Secretary shall ensure that mission operators of critical facilities provide to personnel of military installations any information necessary for the completion of such report. Each report shall contain the following:
  • (1) A description of the progress made to achieve the goals of the Energy Policy Act of 2005 ( Public Law 109–58 ), section 2911(g) of this title , section 553 of the National Energy Conservation Policy Act ( 42 U.S.C. 8259b ), the Energy Independence and Security Act of 2007 ( Public Law 110–140 ), and the energy performance goals for the Department of Defense during the preceding fiscal year, including progress on energy resilience at military installations according to metrics developed by the Secretary.
  • (2) A description of the energy savings, return on investment, and enhancements to installation mission assurance realized by the fulfillment of the goals described in paragraph (1).
  • (3) Details of all utility outages degrading energy resilience at military installations (excluding planned outages for maintenance reasons), whether caused by on- or off-installation disruptions, including the total number of outages and their locations, the duration of each outage, the financial effect of each outage, whether or not the mission was affected, the downtimes (in minutes or hours) the mission can afford based on mission requirements and risk tolerances, the responsible authority managing the utility, and measures taken to mitigate the outage by the responsible authority.
  • (4) Details of a military installation’s total energy requirements and critical energy requirements (including critical energy loads in electric and thermal loads and the associated downtime tolerances for critical energy loads), and the current energy resilience and emergency backup systems servicing critical energy requirements, including, at a minimum—
    • (A) energy resilience and emergency backup system power requirements;
    • (B) the critical missions, facility, or facilities serviced;
    • (C) system service life;
    • (D) capital, operations, maintenance, and testing costs; and
    • (E) other information the Secretary determines necessary.
  • (5) A list of energy resilience projects awarded by the Department of Defense by military department and military installation, whether appropriated or alternative financed for the reporting fiscal year, including project description, award date, the critical energy requirements serviced (including critical energy loads in electric and thermal loads), expected reliability of the project (as indicated in the awarded contract), life cycle costs, savings to investment, fuel type, and the type of appropriation or alternative financing used.
  • (6) A list of energy resilience projects planned by the Department of Defense by military department and military installation, whether appropriated or alternative financed for the next two fiscal years, including project description, fuel type, expected award date, and the type of appropriation or alternative financing expected for use.
  • (7) At the discretion of the Secretary of Defense, a classified annex, as appropriate.
• (b)
  • (1) Simultaneous with the annual report required by subsection (a), the Secretary of Defense, acting through the Assistant Secretary of Defense for Energy, Installations, and Environment, shall submit to the congressional defense committees a report on operational energy management and the implementation of the operational energy strategy established pursuant to section 2926(d) of this title .
  • (2) The annual report under this subsection shall address and include the following:
    • (A) Statistical information on operational energy demands, in terms of expenditures and consumption, for the preceding five fiscal years, including funding made available in regular defense appropriations Acts and any supplemental appropriation Acts.
    • (B) An estimate of operational energy demands for the current fiscal year and next fiscal year, including funding requested to meet operational energy demands in the budget submitted to Congress under section 1105 of title 31 and in any supplemental requests.
    • (C) A description of each initiative related to the operational energy strategy and a summary of funds appropriated for each initiative in the previous fiscal year and current fiscal year and requested for each initiative for the next five fiscal years.
    • (D) An evaluation of progress made by the Department of Defense—
      • (i) in implementing the operational energy strategy, including the progress of key initiatives and technology investments related to operational energy demand and management; and
      • (ii) in meeting the operational energy goals set forth in the strategy.
    • (E) A description of the alternative fuel initiatives of the Department of Defense, including funding and expenditures by account and activity for the preceding fiscal year, including funding made available in regular defense appropriations Acts and any supplemental appropriation Acts.
    • (F) An evaluation of practices used in contingency operations during the previous fiscal year and potential improvements to such practices to reduce vulnerabilities associated with fuel convoys, including improvements in tent and structure efficiency, improvements in generator efficiency, and displacement of liquid fuels with on-site renewable energy generation. Such evaluation should identify challenges associated with the deployment of more efficient structures and equipment and renewable energy generation, and recommendations for overcoming such challenges.
    • (G) Such recommendations as the Assistant Secretary considers appropriate for additional changes in organization or authority within the Department of Defense to enable further implementation of the energy strategy and such other comments and recommendations as the Assistant Secretary considers appropriate.
  • (3) If a report under this subsection is submitted in a classified form, the Secretary shall concurrently submit to the congressional defense committees an unclassified version of the information required by this subsection.

§ 2926. Operational energy

• (a) In carrying out section 2911(a) of this title , the Secretary of Defense shall ensure the types, availability, and use of operational energy promote the readiness of the armed forces for their military missions.
• (b) The Secretary of Defense may—
  • (1) require the Secretary of a military department or the commander of a combatant command to assess the energy supportability of systems, capabilities, and plans;
  • (2) authorize the use of energy security, cost of backup power, and energy resilience as factors in the cost-benefit analysis for procurement of operational equipment; and
  • (3) in selecting equipment that will use operational energy, give favorable consideration to the acquisition of equipment that enhances energy security, energy resilience, energy conservation, and reduces logistical vulnerabilities.
• (c) The Assistant Secretary of Defense for Energy, Installations, and Environment, in consultation with the heads of the appropriate Department of Defense components, shall—
  • (1) oversee the operational energy activities of the Department of Defense and oversee the investments of the Department in such activities;
  • (2) make recommendations to the Secretary regarding the policies and investments that affect the use of operational energy across the Department of Defense;
  • (3) establish guidelines and recommend to the Secretary policy to improve warfighting capability through energy security and energy resilience;
  • (4) encourage collaboration with and leveraging of investments made by the Department of Energy, the Department of Agriculture, and other relevant Federal agencies to advance alternative fuel development to the benefit of the Department of Defense; and
  • (5) certify the budget associated with the investment of the Department of Defense in alternative fuel activities in accordance with subsection (e)(4).
• (d)
  • (1) The Assistant Secretary of Defense for Energy, Installations, and Environment shall be responsible for the establishment and maintenance of a department-wide transformational strategy for operational energy. The strategy shall establish near-term, mid-term, and long-term goals, performance metrics to measure progress in meeting the goals, and a plan for implementation of the strategy within the military departments, the Office of the Secretary of Defense, and the Defense Agencies.
  • (2) The Secretary of each military department shall designate a senior official within each armed force under the jurisdiction of the Secretary who shall be responsible for operational energy plans and programs for that armed force. The officials so designated shall be responsible for coordinating with the Assistant Secretary and implementing initiatives pursuant to the strategy with regard to that official’s armed force.
  • (3) The Chairman of the Joint Chiefs of Staff shall designate a senior official under the jurisdiction of the Chairman who shall be responsible for operational energy plans and programs for the Joint Chiefs of Staff and the Joint Staff. The official so designated shall be responsible for coordinating with the Assistant Secretary and implementing initiatives pursuant to the strategy with regard to the Joint Chiefs of Staff and the Joint Staff.
  • (4) By authority of the Secretary of Defense, the Assistant Secretary shall prescribe policies and procedures for the implementation of the strategy. The Assistant Secretary shall make recommendations to the Secretary of Defense and Deputy Secretary of Defense and provide guidance to the Secretaries of the military departments and the officials designated under paragraph (2) with respect to specific operational energy plans and programs to be carried out pursuant to the strategy.
  • (5) Updates to the strategy required by paragraph (1) shall be submitted to the congressional defense committees as soon as practicable after the modifications to the strategy are made.
• (e)
  • (1) The Assistant Secretary of Defense for Energy, Installations, and Environment shall review and make recommendations to the Secretary of Defense regarding all budgetary and financial matters relating to the operational energy strategy.
  • (2) The Secretary of Defense shall require that the Secretary of each military department and the head of each Defense Agency with responsibility for executing activities associated with the strategy transmit their proposed budget for those activities for a fiscal year to the Assistant Secretary for review before submission of the proposed budget to the Under Secretary of Defense (Comptroller).
  • (3) The Assistant Secretary shall review a proposed budget transmitted under paragraph (2) for a fiscal year and, not later than January 31 of the preceding fiscal year, shall submit to the Secretary of Defense a report containing the comments of the Assistant Secretary with respect to the proposed budget, together with the certification of the Assistant Secretary regarding whether the proposed budget is adequate for implementation of the strategy.
  • (4) Not later than 30 days after the date on which the budget for a fiscal year is submitted to Congress pursuant to section 1105 of title 31 , the Secretary of Defense shall submit to Congress a report on the proposed budgets for that fiscal year that were reviewed by the Assistant Secretary under paragraph (3).
  • (5) For each proposed budget covered by a report under paragraph (4) for which the certification of the Assistant Secretary under paragraph (3) is that the budget is not adequate for implementation of the strategy, the report shall include the following:
    • (A) A copy of the report set forth in paragraph (3).
    • (B) A discussion of the actions that the Secretary proposes to take, together with any recommended legislation that the Secretary considers appropriate, to address the inadequacy of the proposed budget.
    • (C) An appendix prepared by the Chairman of the Joint Chiefs of Staff describing—
      • (i) the progress made by the Joint Requirements Oversight Council in implementing the energy Key Performance Parameter; and
      • (ii) details regarding how operational energy is being addressed in defense planning, scenarios, support to strategic analysis, and resulting policy to improve combat capability.
    • (D) An appendix prepared by the Under Secretary for Defense for Acquisition and Sustainment certifying that and describing how the acquisition system is addressing operational energy in the procurement process, including long-term sustainment considerations, and how programs are extending combat capability as a result of these considerations.
    • (E) A separate statement of estimated expenditures and requested appropriations for that fiscal year for the activities of the Assistant Secretary in carrying out the duties of the Assistant Secretary.
    • (F) Any additional comments that the Secretary considers appropriate regarding the inadequacy of the proposed budgets.
  • (6) For each proposed budget covered by a report under paragraph (4) for which the certification of the Assistant Secretary under paragraph (3) is that the budget is adequate for implementation of the strategy, the report shall include the items set forth in subparagraphs (C), (D), and (E) of paragraph (5).
• (f)
  • (1) The Secretary of a military department shall submit to the Assistant Secretary of Defense for Energy, Installations, and Environment the results of all studies and initiatives conducted by the military department in connection with the operational energy strategy.
  • (2) The Assistant Secretary shall have access to all records and data in the Department of Defense (including the records and data of each military department) necessary in order to permit the Assistant Secretary to carry out the duties of the Assistant Secretary.