,,ii  #aacth ,,congress  #ast ,session  
,s4 #afeb  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,november #e1  
#bjac,mr4 ,schatz 7for himself1 ,mr4    
,alexander1 and ,mr4 ,coats7 introduced 
the following bill2 which was read twice
 and referred to the ,committee on      
,energy and ,natural ,resources  ,a     
,,bill  ,to amend the ,national ,energy 
,conservation ,policy ,act to provide   
guidance on utility energy service      
contracts used by ,federal agencies1 and
 for other purposes4  #a4 ,short title  
,this ,act may be cited as the ,utility 
,energy ,service ,contracts ,improvement
 ,act of #bjac4  #b4 ,findings ,congress
 finds that-- 7#a7 the ,federal         
,government is the largest consumer of  
energy in the ,united ,states2  7#b7    
,federal agencies are expected to meet1 
by law1 ,executive order1 and mandate1  
stringent energy efficiency and         
conservation targets2  7#c7 the utility 
energy service contract 7referred to in 
this section as ,,uesc7 was developed to

 provide ,federal agencies an effective 
means to implement energy efficiency1   
renewable energy and water efficiency   
projects1 and has been used successfully
 to invest nearly #b1gjj1jjj1jjj in     
property at ,federal facilities2  7#d7  
the ,general ,services ,administration1 
which manages more than #i1fjj ,federal 
properties and is the lead agency for   
procuring utility services for the      
,federal ,government1 has determined    
that ,u,e,s,cs may extend beyond a      
#aj-year period under the law2  7#e7 the
 ,federal ,energy ,management ,program1 
which oversees the ,,uesc program and is
 a principal office guiding agencies to 
use funding more effectively in meeting 
,federal and agency-specific energy and 
resource management objectives1 has     
determined that ,u,e,s,cs may extend    
beyond a #aj-year period under the law2 
7#f7 extensive precedent exists for     
,federal agencies to contract for energy
 saving services using contracts with   
term limits of more than #aj years but  

not to exceed #be years2  7#g7 a number 
of ,federal agencies1 contrary to       
congressional intent1 have sought to    
limit ,,uesc term limits to periods of  
less than #aj years2 and  7#h7 greater  
flexibility with ,u,e,s,cs will help    
reduce the operational cost of ,federal 
agencies1 ultimately saving money for   
taxpayers4  #c4 ,utility energy service 
contracts ,part #c of title ,v of the   
,national ,energy ,conservation ,policy 
,act is amended by adding after section 
#eec 7#db ,u4,s4,c4 #hbei;b7 the        
following3  #eed4 ,utility energy       
service contracts  7a7 ,in general ,each
 ,federal agency may use1 to the maximum
 extent practicable1 measures provided  
by law to meet energy efficiency and    
conservation mandates and laws1         
including through utility energy service
 contracts4  7b7 ,contract period ,the  
term of a utility energy service        
contract entered into by a ,federal     
agency may have a contract period that  
extends beyond #aj years1 but not to    

exceed #be years4  7c7 ,requirements    
,the conditions of a utility energy     
service contract entered into by a      
,federal agency shall include           
requirements for measurement1           
verification1 and performance assurances
 or guarantees of the savings4  4