§ 8254. Establishment and use of life cycle cost methods and procedures

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1978

   Pub. L. 95–619 title V § 544 · 92 Stat. 3206

   Enacted · 42 U.S.C. § 8254

   Pub. L. 95–619, title V, § 544, Nov. 9, 1978, 92 Stat. 3277

   Source evidence

   Code source credit
   Pub. L. 95–619, title V, § 544, Nov. 9, 1978, 92 Stat. 3277

   Enacted provision · exact public law section
   SEC. 544. DEFINITIONS. For purposes of this part— 42 USC 8254. (1) The term “Secretary” means the Secretary of Energy. (2) The term “life cycle cost” means the total costs of owning, operating, and maintaining a building over its useful life, including its fuel and energy costs, determined on the basis of a system-atic evaluation and comparison of alternative building systems ; except that in the case of leased buildings, the life cycle cost shall be calculated over the effective remaining term of the lease. (3) The term “preliminary energy audit” means a determination of the energy consumption characteristics of an existing Federal building, including the size, type, rate of energy consumption and major energy using systems of such building and the climate characterizing the region where such building is located. (4) The term “energy survey” means a procedure to be used in determining energy conservation and cost savings likely to result from appropriate energy conserving maintenance and operating procedures and modifications, including the purchase and installation of particular energy-related fixtures to a Federal building. (5) The term “Federal building” means any building, structure, or facility which is constructed, renovated or leased or purchased in whole or in part for use by the United States, and which includes a heating system, a cooling system, or both. (6) The term “construction” means construction and substantial reconstruction or renovation, as determined under rules prescribed by the Secretary. (7) The term “energy performance target” means a rate of energy consumption which is the minimum practically achievable, taking into account life-cycle cost, by adjusting maintenance and operating procedures, or by modifying a Federal building’s equipment or structure, or both.

2. 1988

   Federal Energy Management Improvement Act of 1988

   Pub. L. 100–615 § 2(a) · 102 Stat. 3185

   1. Amended · 42 U.S.C. § 8254

      Pub. L. 100–615 amended section generally

   2. Substituted · 42 U.S.C. § 8254

      Pub. L. 100–615 substituting provisions relating to establishment and use of life cycle cost methods and procedures for provisions defining terms (1) Secretary, (2) life cycle cost, (3) preliminary energy audit, (4) energy survey, (5) Federal building, (6) construction, and (7) energy performance target

   Source evidence

   Code amendment note
   Pub. L. 100–615 amended section generally, substituting provisions relating to establishment and use of life cycle cost methods and procedures for provisions defining terms (1) Secretary, (2) life cycle cost, (3) preliminary energy audit, (4) energy survey, (5) Federal building, (6) construction, and (7) energy performance target.

   Enacted provision · exact public law section
   (a) In General.— Part 3 of title V of the National Energy Conservation Policy Act (42 U.S.C. 8251–8261) is amended to read as follows: “PART 3— FEDERAL ENERGY MANAGEMENT “SEC. 541. FINDINGS. “The Congress finds that— “(1) the Federal Government is the largest single energy consumer in the Nation; “(2) the cost of meeting the Federal Government’s energy requirement is substantial; “(3) there are significant opportunities in the Federal Government to conserve and make more efficient use of energy through improved operations and maintenance, the use of new energy efficient technologies, and the application and achievement of energy efficient design and construction; “(4) Federal energy conservation measures can be financed at little or no cost to the Federal Government by using private investment capital made available through contracts authorized by title VIII of this Act; and “(5) an increase in energy efficiency by the Federal Government would benefit the Nation by reducing the cost of government, reducing national dependence on foreign energy resources, and demonstrating the benefits of greater energy efficiency to the Nation. “SEC. 542. PURPOSE. “It is the purpose of this part to promote the conservation and the efficient use of energy by the Federal Government. “SEC. 543. ENERGY MANAGEMENT GOALS. “(a) Energy Performance Goal for Federal Buildings.— (1) Subject to paragraph (2), each agency shall apply energy conservation measures to, and shall improve the design for the construction of, its Federal buildings so that the energy consumption per gross square foot of its Federal buildings in use during the fiscal year 1995 is at least 10 percent less than the energy consumption per gross square foot of its Federal buildings in use during the fiscal year 1985. “(2) An agency may exclude from the requirements of paragraph (1) any building, and the associated energy consumption and gross square footage, in which energy intensive activities are carried out. Each agency shall identify and list in each report made under section 548(a) the buildings designated by it for such exclusion. “(b) Implementation Steps.— To achieve the goal established in subsection (a), each agency shall— “(1) prepare or update, within 6 months after the date of the enactment of the Federal Energy Management Improvement Act of 1988, a plan describing how the agency intends to meet such goal, including how it will implement this part, designate personnel primarily responsible for achieving such goal, and identify high priority projects; “(2) perform energy surveys of its Federal buildings to the extent necessary; “(3) using such surveys, apply energy conservation measures in a manner which will attain the goal established in subsection (a) in the most cost-effective manner practicable; and “(4) ensure that the operation and maintenance procedures applied under this section are continued. “SEC. 544. ESTABLISHMENT AND USE OF LIFE CYCLE COST METHODS AND PROCEDURES. “(a) Establishment of Life Cycle Cost Methods and Procedures.— The Secretary, in consultation with the Director of the Office of Management and Budget, the Secretary of Defense, the Director of the National Bureau of Standards, and the Administrator of the General Services Administration, shall— “(1) establish practical and effective present value methods for estimating and comparing life cycle costs for Federal buildings, using the sum of all capital and operating expenses associated with the energy system of the building involved over the expected life of such system or during a period of 25 years, whichever is shorter, and using average fuel costs and a discount rate determined by the Secretary; and “(2) develop and prescribe the procedures to be followed in applying and implementing the methods so established. “(b) Use of Life Cycle Cost Methods and Procedures.— (1) The design of new Federal buildings, and the application of energy conservation measures to existing Federal buildings, shall be made using life cycle cost methods and procedures established under subsection (a). “(2) In leasing buildings for its own use or that of another agency, each agency shall give appropriate preference to buildings which minimize life cycle costs. “(c) Use in Non-Federal Structures.— The Secretary shall make available information to the public on the use of life cycle cost methods in the construction of buildings, structures, and facilities in all segments of the economy. “SEC. 545. BUDGET TREATMENT FOR ENERGY CONSERVATION MEASURES. “Each agency, in support of the President’s annual budget request to the Congress, shall specifically set forth and identify funds requested for energy conservation measures. “SEC. 546. INCENTIVES FOR AGENCIES. “(a) In General.— 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 title VIII of this Act. “(b) Implementation.— The head of each agency shall, no later than 120 days after the date of the enactment of the Federal Energy Management Improvement Act of 1988, implement procedures for entering into such contracts and for identifying, verifying, and utilizing, on a fiscal year basis, the cost savings resulting from such contracts. “(c) Use of Savings.— The portion of the funds appropriated to an agency for energy expenses for a fiscal year that is equal to the amount of cost savings realized by such agency for such year from contracts entered into under title VIII shall remain available for obligation, without further appropriation, to undertake additional energy conservation measures. “SEC. 547. INTERAGENCY ENERGY MANAGEMENT TASK FORCE. “(a) In General.— To assist the interagency committee organized under section 656 of the Department of Energy Organization Act (42 U.S.C. 7266) to coordinate the activities of the Federal Government in promoting energy conservation and the efficient use of energy and in informing non-Federal entities of the Federal experience in energy conservation, the Secretary shall establish an Interagency Energy Management Task Force (hereafter in this section referred to as the ‘Task Force’). “(b) Members.— The Task Force shall be composed of the chief energy managers of agencies represented on the interagency committee organized under section 656 of the Department of Energy Organization Act. “(c) Duties.— The Task Force shall meet when the Secretary requests, but not less often than twice a year, to— “(1) assess the progress of the various agencies in achieving energy savings; “(2) collect and disseminate information to agencies, States, State and local governments. Public information. local governments, and the public on effective survey techniques, innovative approaches to the efficient use of energy, incentive programs developed under section 546, innovative contracting methods developed under title VIII of this Act, the use of cogeneration facilities and renewable resources, and other technologies that promote the conservation and efficient use of energy; “(3) coordinate energy surveys conducted by the agencies; “(4) develop options for use in conserving energy; “(5) report to the committee organized under section 656 of Reports. the Department of Energy Organization Act; and “(6) review, from time to time as may be necessary, the regulations relating to building temperature settings to determine whether changes in such regulations would be appropriate to assist in meeting the goals specified in section 543. “SEC. 548. REPORTS. “(a) Reports to the Secretary.— Each agency shall transmit a report to the Secretary, at times specified by the Secretary but at least annually, with complete information on its activities under this part, including information on— “(1) the agency’s progress in achieving the goals established by section 543; and “(2) the procedures being used by the agency pursuant to section 546(b), the number of contracts entered into by such agency under title VIII of this Act, the energy and cost savings that have resulted from such contracts, the use of such cost savings under section 546(c), and any problem encountered in entering into such contracts and otherwise implementing section 546. “(b) Reports to Congress.— The Secretary shall report annually, with respect to each fiscal year beginning after the date of the enactment of this subsection, to the Congress— “(1) on all activities carried out under this part and on the progress made toward achievement of the objectives of this part, including a copy of the list of the exclusions made under section 543(a)(2); “(2) the number of contracts entered into by all agencies under title VIII of this Act, the difficulties (if any) encountered in attempting to enter into such contracts, and proposed solutions to those difficulties; and “(3) the extent and nature of interagency exchange of information concerning the conservation and efficient utilization of energy. “SEC. 549. DEFINITIONS. “For the purposes of this part— “(1) the term ‘agency’ has the meaning given it in section 551(1) of title 5, United States Code; “(2) the term ‘construction’ means new construction or substantial rehabilitation of existing structures; “(3) the term ‘cogeneration facilities’ has the same meaning given such term in section 3(18)(A) of the Federal Power Act (16 U.S.C. 796(18)(A)); “(4) the term ‘energy conservation measures’ means measures that are applied to a Federal building that improve energy efficiency and are life cycle cost effective and that involve energy conservation, cogeneration facilities, renewable energy sources, improvements in operations and maintenance efficiencies, or retrofit activities; “(5) the term ‘energy survey’ means a procedure used to determine energy and cost savings likely to result from the use of appropriate energy related maintenance and operating procedures and modifications, including the purchase and installation of particular energy-related equipment and the use of renewable energy sources; “(6) the term ‘Federal building’ means any building, structure, or facility, or part thereof, including the associated energy consuming support systems, which is constructed, renovated, leased, or purchased in whole or in part for use by the Federal Government and which consumes energy; such term also means a collection of such buildings, structures, or facilities and the energy consuming support systems for such collection; “(7) the term ‘life cycle cost’ means the total costs of owning, operating, and maintaining a building over its useful life (including such costs as fuel, energy, labor, and replacement components) determined on the basis of a systematic evaluation and comparison of alternative building systems, except that in the case of leased buildings, the life cycle costs shall be calculated over the effective remaining term of the lease; “(8) the term ‘renewable energy sources’ includes, but is not limited to, sources such as agriculture and urban waste, goethermal energy, solar energy, and wind energy; and “(9) the term ‘Secretary’ means the Secretary of Energy.”.

3. 1992

   Energy Policy Act of 1992

   Pub. L. 102–486 § 152(d)(1) · 106 Stat. 2776

   Substituted · 42 U.S.C. § 8254(a)

   Pub. L. 102–486, § 152(d)(1), substituted “National Institute of Standards and Technology” for “National Bureau of Standards”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 102–486, § 152(d)(1), substituted “National Institute of Standards and Technology” for “National Bureau of Standards”.

   Enacted provision · exact public law section
   (1) in subsection (a), in the material preceding paragraph (1), by striking out “National Bureau of Standards, and inserting in lieu thereof “National Institute of Standards and Technology,”; and

4. 1992

   Energy Policy Act of 1992

   Pub. L. 102–486 § 152(d)(2) · 106 Stat. 2776

   Substituted · 42 U.S.C. § 8254(b)(2)

   Pub. L. 102–486, § 152(d)(2), substituted “agency shall, after January 1, 1994, fully consider the efficiency of all potential building space at the time of renewing or entering into a new lease.” for “agency shall give appropriate preference to buildings which minimize life cycle costs.”

   Source evidence

   Code amendment note
   Subsec. (b)(2). Pub. L. 102–486, § 152(d)(2), substituted “agency shall, after January 1, 1994, fully consider the efficiency of all potential building space at the time of renewing or entering into a new lease.” for “agency shall give appropriate preference to buildings which minimize life cycle costs.”

   Enacted provision · exact public law section
   (2) in subsection (b)(2), by striking “agency shall” and all that follows through the period at the end and inserting the following: “agency shall, after January 1, 1994, fully consider the efficiency of all potential building space at the time of renewing or entering into a new lease.”.

5. 2007

   Energy Independence and Security Act of 2007

   Pub. L. 110–140 title IV § 441 · 121 Stat. 1492

   Substituted · 42 U.S.C. § 8254(a)(1)

   Pub. L. 110–140 substituted “40” for “25”

   Source evidence

   Code amendment note
   Subsec. (a)(1). Pub. L. 110–140 substituted “40” for “25”.

   Enacted provision · exact public law section
   SEC. 441. PUBLIC BUILDING LIFE-CYCLE COSTS.   Section 544(a)(1) of the National Energy Conservation Policy Act (42 U.S.C. 8254(a)(1)) is amended by striking “25” and inserting “40”.

   Effective date note
   Amendment by Pub. L. 110–140 effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of Pub. L. 110–140, set out as an Effective Date note under section 1824 of Title 2, The Congress.

6 of 6 references resolved to an enrolled provision