[Federal Register Volume 75, Number 118 (Monday, June 21, 2010)]
[Rules and Regulations]
[Pages 34942-34943]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-14938]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 217 and 241
RIN 0750-AG48
Defense Federal Acquisition Regulation Supplement; Multiyear
Contract Authority for Electricity From Renewable Energy Sources (DFARS
Case 2008-D006)
AGENCY: Defense Acquisition Regulations System; Department of Defense
(DoD).
ACTION: Interim rule with request for comments.
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SUMMARY: DoD is issuing an interim rule to implement section 828 of the
National Defense Authorization Act for Fiscal Year 2008. Section 828
authorizes the Secretary of Defense to enter into a contract for a
period not to exceed 10 years for the purchase of electricity from
sources of renewable energy.
DATES: Effective Date: June 21, 2010.
Comment Date: Comments on the interim rule should be submitted in
writing to the address shown below on or before August 20, 2010, to be
considered in the formation of the final rule.
ADDRESSES: Submit comments identified by DFARS Case 2008-D006 by any of
the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
E-mail: [email protected]. Include DFARS Case 2008-D006 in the
subject line of the message.
Fax: 703-602-0350.
Mail: Defense Acquisition Regulations System, Attn:
Cassandra Freeman, OUSD (AT&L) DPAP/DARS, Room 3B855, 3060 Defense
Pentagon, Washington, DC 20301-3060
All comments received will be posted to http://www.regulations.gov,
including any personal information provided.
FOR FURTHER INFORMATION CONTACT: Ms. Cassandra Freeman, 703-602-8383.
Please cite DFARS Case 2008-D006.
SUPPLEMENTARY INFORMATION:
A. Background
This interim rule implements section 828 of the National Defense
Authorization Act for Fiscal Year 2008 (Pub. L. 110-181). It amends
DFARS parts 217 and 241 to authorize the Department of Defense to enter
into a contract for a period not to exceed 10 years for the purchase of
electricity from sources of renewable energy, as that term is defined
in section 203(b)(2) of the Energy Policy Act of 2005 (42 U.S.C.
15852(b)(2)). DoD may exercise this authority to enter into a contract
for a period in excess of five years only if the head of the
contracting activity determines, on the basis of a business case
analysis prepared by DoD, that--
(1) The proposed purchase of electricity under such contract is
cost effective; and
(2) It would not be possible to purchase electricity from the
source in an economical manner without the use of a contract for a
period in excess of five years.
This rule was subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993.
B. Regulatory Flexibility Act
DoD has prepared an initial regulatory flexibility analysis
consistent with 5 U.S.C. 604. The analysis is summarized below and a
copy may be obtained from the point of contact specified herein. There
are a very limited number of small businesses engaged in the sale of
energy-related services to include the sale of renewable energy. Those
small businesses that engage in energy-related activities tend to have
more than one area of competency, such as fossil fuel electric power,
distribution of electric power, or other electric power generation,
etc. With the potential overlap of competencies, it is very likely that
a small business may have more than one of these competencies, thereby
reducing the number of small businesses in these areas. The market for
renewable fuels is highly volatile and does not have the predictability
as compared to other fuel markets. Renewable energy and alternative
fuel projects are capital-intensive investments, and involve the
construction of production facilities which provides limitations to
small entities. At this time, DoD is unable to estimate the number of
small entities to which this rule will apply. DoD invites comments from
small business concerns and other interested parties on the expected
impact of this rule on small entities.
DoD will also consider comments from small entities concerning the
existing regulations in subparts affected by this rule in accordance
with 5 U.S.C. 610. Interested parties must submit such comments
separately and should cite 5 U.S.C. 610 (DFARS Case 2008-D006) in
correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act (Pub. L. 96-511) does not apply because
the
[[Page 34943]]
rule does not impose additional information collection requirements
that require the approval of the Office of Management and Budget under
44 U.S.C. 3501, et seq.
D. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense that urgent and compelling reasons exist to publish an
interim rule prior to affording the public an opportunity to comment.
This interim rule authorizes and establishes conditions under which the
Department of Defense may enter into a contract for a period not to
exceed 10 years for the purchase of electricity from sources of
renewable energy, pursuant to section 828 of the National Defense
Authorization Act for Fiscal Year 2008. It is necessary to publish this
rule prior to obtaining public comments because the statute became
effective upon enactment, and it is imperative that DoD contracting
officers be aware of the conditions under which DoD may enter into such
contracts to ensure that they are in compliance with the requirements
of the Act. However, DoD will consider public comments received in
response to this interim rule in the formation of the final rule.
List of Subjects in 48 CFR Parts 217 and 241
Government procurement.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.
0
Therefore, 48 CFR parts 217 and 241 are amended as follows:
0
1. The authority citation for 48 CFR parts 217 and 241 continues to
read as follows:
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
PART 217--SPECIAL CONTRACTING METHODS
0
2. Section 217.175 is added to read as follows:
217.175 Multiyear contracts for electricity from renewable energy
sources.
(a) The head of the contracting activity may enter into a contract
for a period not to exceed 10 years for the purchase of electricity
from sources of renewable energy, as that term is defined in section
203(b)(2) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b)(2)).
(b) Limitations. The head of the contracting activity may exercise
the authority in paragraph (a) of this section to enter into a contract
for a period in excess of five years only if the head of the
contracting activity determines, on the basis of a business case
analysis (see PGI 217.1, Supplemental Information TAB, for a business
case analysis template and guidance) prepared by the requiring
activity, that--
(1) The proposed purchase of electricity under such contract is
cost effective; and
(2) It would not be possible to purchase electricity from the
source in an economical manner without the use of a contract for a
period in excess of five years.
(c) Nothing in this section shall be construed to preclude the DoD
from using other multiyear contracting authority of DoD to purchase
renewable energy.
PART 241--ACQUISITION OF UTILITY SERVICES
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3. Section 241.103 is amended by redesignating existing paragraph (2)
as paragraph (3); and by adding new paragraph (2) to read as follows:
241.103 Statutory and delegated authority.
* * * * *
(2) See 217.175 for authority to enter into multiyear contracts for
electricity from renewable energy sources.
* * * * *
[FR Doc. 2010-14938 Filed 6-18-10; 8:45 am]
BILLING CODE 5001-08-P