(1) Each agency shall establish a program of incentives for
conserving, and otherwise making more efficient use of, energy as a
result of entering into contracts under subchapter VII of this
(2) The Secretary shall, not later than 18 months after October
24, 1992, and after consultation with the Director of the Office of
Management and Budget, the Secretary of Defense, and the
Administrator of General Services, develop appropriate procedures
and methods for use by agencies to implement the incentives
referred to in paragraph (1).
(b) Federal Energy Efficiency Fund
(1) The Secretary shall establish a Federal Energy Efficiency
Fund to provide grants to agencies to assist them in meeting the
requirements of section 8253 of this title.
(2) Not later than June 30, 1993, the Secretary shall issue
guidelines to be followed by agencies submitting proposals for such
grants. All agencies shall be eligible to submit proposals for
grants under the Fund.
(3) The Secretary shall award grants from the Fund after a
competitive assessment of the technical and economic effectiveness
of each agency proposal. The Secretary shall consider the following
factors in determining whether to provide funding under this
(A) The cost-effectiveness of the project.
(B) The amount of energy and cost savings anticipated to the
(C) The amount of funding committed to the project by the
agency requesting financial assistance.
(D) The extent that a proposal leverages financing from other
(E) Any other factor which the Secretary determines will result
in the greatest amount of energy and cost savings to the Federal
(4) There are authorized to be appropriated, to remain available
to be expended, to carry out this subsection not more than
$10,000,000 for fiscal year 1994, $50,000,000 for fiscal year 1995,
and such sums as may be necessary for fiscal years thereafter.
(c) Utility incentive programs
(1) Agencies are authorized and encouraged to participate in
programs to increase energy efficiency and for water conservation
or the management of electricity demand conducted by gas, water, or
electric utilities and generally available to customers of such
(2) Each agency may accept any financial incentive, goods, or
services generally available from any such utility, to increase
energy efficiency or to conserve water or manage electricity
(3) Each agency is encouraged to enter into negotiations with
electric, water, and gas utilities to design cost-effective demand
management and conservation incentive programs to address the
unique needs of facilities utilized by such agency.
(4) If an agency satisfies the criteria which generally apply to
other customers of a utility incentive program, such agency may not
be denied collection of rebates or other incentives.
(d) Financial incentive program for facility energy managers
(1) The Secretary shall, in consultation with the Task Force
established pursuant to section 8257 of this title, establish a
financial bonus program to reward, with funds made available for
such purpose, outstanding Federal facility energy managers in
agencies and the United States Postal Service.
(2) Not later than June 1, 1993, the Secretary shall issue
procedures for implementing and conducting the award program,
including the criteria to be used in selecting outstanding energy
managers and contributors who have -
(A) improved energy performance through increased energy
(B) implemented proven energy efficiency and energy
conservation techniques, devices, equipment, or procedures;
(C) developed and implemented training programs for facility
energy managers, operators, and maintenance personnel;
(D) developed and implemented employee awareness programs;
(E) succeeded in generating utility incentives, shared energy
savings contracts, and other federally approved performance based
energy savings contracts;
(F) made successful efforts to fulfill compliance with energy
reduction mandates, including the provisions of section 8253 of
this title; and
(G) succeeded in the implementation of the guidelines
established under section 8262e (!1) of this title.
(3) There is authorized to be appropriated to carry out this
subsection not more than $250,000 for each of the fiscal years
1993, 1994, and 1995.
(e) Retention of energy and water savings
An agency may retain any funds appropriated to that agency for
energy expenditures, water expenditures, or wastewater treatment
expenditures, at buildings subject to the requirements of section
8253(a) and (b) of this title, that are not made because of energy
savings or water savings. Except as otherwise provided by law, such
funds may be used only for energy efficiency, water conservation,
or unconventional and renewable energy resources projects. Such
projects shall be subject to the requirements of section 3307 of