42 U.S.C. § 8256

(a) Contracts (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 chapter. (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 subsection: (A) The cost-effectiveness of the project. (B) The amount of energy and cost savings anticipated to the Federal Government. (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 non-Federal sources. (E) Any other factor which the Secretary determines will result in the greatest amount of energy and cost savings to the Federal Government. (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 utilities. (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 demand. (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 efficiency; (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 1 See References in Text note below. 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 title 40 .