text: 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  U.S.C. 8287(c)) is repealed.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''.
target: Energy Savings Performance Contracts Amendments Act of 2003 - Amends the National Energy Conservation Policy Act (NECPA) to: (1) repeal the termination dates governing the authority to enter into energy savings performance contracts (thus extending such authority indefinitely); (2) allow as an approved benefit ancillary to an energy savings contract or energy savings performance contract providing for energy savings through construction of replacement facilities those savings resulting from reduced operation and maintenance costs at such facilities; and (3) authorize the Secretary of Defense and the heads of other interested Federal agencies to enter into a pilot program for energy savings performance contract investments in non-building energy efficiency improvement projects.
feat_title: A bill to extend the authority for Energy Savings Performance Contracts and for other purposes.