H. Con. Res. 71 (115th Congress)

Concurrent Resolution on the Budget
for Fiscal Year 2018

Section 5109

Subtitle A—Budget Enforcement

(a) In General.—The Director of the Congressional Budget Office shall estimate provisions of any bill or joint resolution, or amendment thereto or conference report thereon, that provides the authority to enter into or modify any covered energy savings contract on a net present value basis (NPV).

(b) NPV Calculations.—The net present value of any covered energy savings contract shall be calculated as follows:

(1) The discount rate shall reflect market risk.

(2) The cash flows shall include, whether classified as mandatory or discretionary, payments to contractors under the terms of their contracts, payments to contractors for other services, and direct savings in energy and energy-related costs.

(3) The stream of payments shall cover the period covered by the contracts but not to exceed 25 years.

(c) Definition.—As used in this section, the term “covered energy savings contract” means—

(1) an energy savings performance contract authorized under section 801 of the National Energy Conservation Policy Act; or

(2) a utility energy service contract, as described in the Office of Management and Budget Memorandum on Federal Use of Energy Savings Performance Contracting, dated July 25, 1998 (M–98–13), and the Office of Management and Budget Memorandum on the Federal Use of Energy Saving Performance Contracts and Utility Energy Service Contracts, dated September 28, 2015 (M–12–21), or any successor to either memorandum.

(d) Enforcement in the House of Representatives.—In the House of Representatives, if any net present value of any covered energy savings contract calculated under subsection (b) results in a net savings, then the budgetary effects of such contract shall not be counted for purposes of titles III and IV of the Congressional Budget Act of 1974, this concurrent resolution, or clause 10 of rule XXI of the Rules of the House of Representatives.

(e) Classification of Spending.—For purposes of budget enforcement, the estimated net present value of the budget authority provided by the measure, and outlays flowing therefrom, shall be classified as direct spending.

(f) Sense of the House of  Representatives.—It is the sense of the House of Representatives that—

(1) the Director of the Office of Management and Budget, in consultation with the Director of the Congressional Budget Office, should separately identify the cash flows under subsection (b)(2) and include such information in the President’s annual budget submission under section 1105(a) of title 31, United States Code; and

(2) the scoring method used in this section should not be used to score any contracts other than covered energy savings contracts.

Counsel Notes
H. Con. Res. 71, as Passed by the House

This section was included as section 309 of H. Con. Res. 71 (115th Congress), as it was adopted by the House of Representatives. The section originally considered for S. Con. Res. 11 (114th Congress) but was rejected in favor of further specific study. It was included in H. Con. Res. 27 (114th Congress), which was reported by the House Budget Committee but never agreed to by the House. The further specific study was never conducted.


Section 5108
H. Con. Res. 71 (Final)


Section 5110
H. Con. Res. 71 (Final)

[BCR  § 010.43]