II 116TH CONGRESS 1ST SESSION S. 1498 To require the Secretary of Defense to enhance the readiness of the Depart- ment of Defense to challenges relating to climate change and to improve the energy and resource efficiency of the Department, and for other purposes. IN THE SENATE OF THE UNITED STATES MAY 15, 2019 Ms. WARREN (for herself, Mr. SCHATZ, and Mr. WHITEHOUSE) introduced the following bill; which was read twice and referred to the Committee on Armed Services A BILL To require the Secretary of Defense to enhance the readiness of the Department of Defense to challenges relating to climate change and to improve the energy and resource efficiency of the Department, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Department of Defense 4 Climate Resiliency and Readiness Act’’. 5 SEC. 2. DEFINITIONS. 6 In this Act: 7 VerDate Sep 11 2014 22:32 May 28, 2019 Jkt 034408 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1498.IS S1498 pbinns on DSK79D2C42PROD with BILLS 2 •S 1498 IS (1) CLIMATE CHANGE.—The term ‘‘climate 1 change’’ means a change of climate that is— 2 (A) attributed directly or indirectly to 3 human activity that alters the composition of 4 the global atmosphere; and 5 (B) in addition to natural climate varia- 6 bility observed over comparable time periods. 7 (2) CONGRESSIONAL DEFENSE COMMITTEES.— 8 The term ‘‘congressional defense committees’’ has 9 the meaning given that term in section 101(a)(16) 10 of title 10, United States Code. 11 (3) NET ZERO ENERGY.—The term ‘‘net zero 12 energy’’ means, with respect to each installation of 13 the Department of Defense, a reduction in overall 14 energy use, maximization of energy efficiency, and 15 implementation and use of energy recovery and co- 16 generation capabilities at each installation, and an 17 offset of the remaining demand for energy with pro- 18 duction of energy from onsite renewable energy 19 sources at such installation, such that such installa- 20 tion produces as much energy as it uses over the 21 course of a year. 22 (4) RESILIENCY.—The term ‘‘resiliency’’ 23 means, with respect to each installation of the De- 24 partment of Defense, an anticipation, preparation 25 VerDate Sep 11 2014 22:32 May 28, 2019 Jkt 034408 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1498.IS S1498 pbinns on DSK79D2C42PROD with BILLS 3 •S 1498 IS for, and adaptation of each installation to utility dis- 1 ruptions and changing environmental conditions, and 2 the achievement and maintenance by such installa- 3 tion of the capability to withstand, respond to, and 4 recover rapidly from utility disruptions while ensur- 5 ing the sustainment of mission-critical operations. 6 (5) NON-OPERATIONAL SOURCES.—The term 7 ‘‘non-operational sources’’— 8 (A) means fixed installations, enduring lo- 9 cations, and non-tactical vehicles of the Depart- 10 ment of Defense; and 11 (B) does not include sources in connection 12 with the training, moving, and sustaining of the 13 Armed Forces and weapons platforms for mili- 14 tary operations and training, including tactical 15 power systems and generators at non-enduring 16 locations of the Department of Defense. 17 (6) RENEWABLE ENERGY SOURCE.—The term 18 ‘‘renewable energy source’’ has the meaning given 19 that term in section 2924(6) of title 10, United 20 States Code. 21 (7) UNITED STATES.—The term ‘‘United 22 States’’ means the several States, the District of Co- 23 lumbia, and any territory or possession of the 24 United States. 25 VerDate Sep 11 2014 22:32 May 28, 2019 Jkt 034408 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1498.IS S1498 pbinns on DSK79D2C42PROD with BILLS 4 •S 1498 IS SEC. 3. NET ZERO ENERGY BY NON-OPERATIONAL 1 SOURCES OF THE DEPARTMENT OF DE- 2 FENSE. 3 (a) IN GENERAL.—The Department of Defense shall 4 achieve aggregate net zero energy in use of energy by non- 5 operational sources by not later than December 31, 2029. 6 (b) STRATEGY.— 7 (1) IN GENERAL.—Not later than one year 8 after the date of the enactment of this Act, the Sec- 9 retary of Defense shall submit to Congress a report 10 setting forth the strategy of the Department of De- 11 fense to achieve the requirement under subsection 12 (a). 13 (2) ELEMENTS.—The report required by para- 14 graph (1) shall set forth the following: 15 (A) The strategy of the Department of De- 16 fense to achieve the requirement under sub- 17 section (a) for all installations under the juris- 18 diction of the Department (other than the mili- 19 tary departments). 20 (B) The strategy of each military depart- 21 ment to achieve the requirement under sub- 22 section (a) for all installations under the juris- 23 diction of such department. 24 (C) An assessment of the manner in which 25 the achievement by the Department of Defense 26 VerDate Sep 11 2014 22:32 May 28, 2019 Jkt 034408 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1498.IS S1498 pbinns on DSK79D2C42PROD with BILLS 5 •S 1498 IS of the requirement under subsection (a) will en- 1 hance the readiness of the Armed Forces to ad- 2 dress threats posed by Russia, China, Iran, 3 North Korea, and violent extremism. 4 (3) BIENNIAL UPDATE.—Not later than two 5 years after the submittal of the report required by 6 paragraph (1), and every two years thereafter 7 through December 31, 2029, the Secretary shall 8 submit to Congress a report setting forth the fol- 9 lowing: 10 (A) A current assessment of the progress 11 of the Department of Defense in implementing 12 the strategy described in paragraph (1), set 13 forth by military department, Defense Agency, 14 and other component or element of the Depart- 15 ment. 16 (B) Any updates to the strategy. 17 (4) CONSULTATION.—The Secretary shall con- 18 sult with the National Academy of Sciences and a 19 federally funded research and development center in 20 developing the report required by paragraph (1) and 21 any update to that report under paragraph (3). 22 (c) WAIVER.— 23 VerDate Sep 11 2014 22:32 May 28, 2019 Jkt 034408 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1498.IS S1498 pbinns on DSK79D2C42PROD with BILLS 6 •S 1498 IS (1) IN GENERAL.—The Secretary of Defense 1 may waive the requirement in subsection (a) if the 2 Secretary— 3 (A) determines that achievement of such 4 requirement would adversely affect operational 5 safety, force protection, or the national security 6 interests of the United States; and 7 (B) submits to the congressional defense 8 committees a written notification of the waiver, 9 together with a justification for the waiver. 10 (2) PERIOD.—The period of any waiver under 11 paragraph (1) may not exceed 30 days. 12 (3) RENEWAL.—Any waiver under this sub- 13 section may be renewed one or more times, in the 14 manner provided for the initial such waiver under 15 paragraph (1) and for the period provided for in 16 paragraph (2). 17 SEC. 4. CLIMATE-CONSCIOUS BUDGETING OF DEPARTMENT 18 OF DEFENSE. 19 (a) IN GENERAL.—The Secretary of Defense shall in- 20 clude in the annual budget submission of the President 21 under section 1105(a) of title 31, United States Code— 22 (1) a dedicated budget line item for adaptation 23 to, and mitigation of, climate-related risks to mili- 24 tary networks, systems, installations, facilities, and 25 VerDate Sep 11 2014 22:32 May 28, 2019 Jkt 034408 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1498.IS S1498 pbinns on DSK79D2C42PROD with BILLS 7 •S 1498 IS other assets and capabilities of the Department of 1 Defense; and 2 (2) an estimate of the anticipated adverse im- 3 pacts to the readiness of the Department and the fi- 4 nancial costs to the Department during the year cov- 5 ered by the budget of the loss of, or damage to, mili- 6 tary networks, systems, installations, facilities, and 7 other assets and capabilities of the Department, in- 8 cluding loss of or obstructed access to training 9 ranges, as a result of climate change. 10 (b) DISAGGREGATION OF IMPACTS AND COSTS.—The 11 estimate under subsection (a)(2) shall set forth the ad- 12 verse readiness impacts and financial costs under that 13 subsection by military department, Defense Agency, and 14 other component or element of the Department. 15 SEC. 5. INCLUSION IN ANNUAL ENERGY MANAGEMENT AND 16 RESILIENCE REPORT OF DEPARTMENT OF 17 DEFENSE OF LIST OF MILITARY INSTALLA- 18 TIONS THAT EMIT THE MOST CARBON AND 19 ESTIMATE OF ENERGY CONSUMPTION BY DE- 20 PARTMENT. 21 (a) IN GENERAL.—For every fiscal year beginning 22 after the date of the enactment of this Act, the Secretary 23 of Defense shall include in the Annual Energy Manage- 24 ment and Resilience Report for that fiscal year— 25 VerDate Sep 11 2014 22:32 May 28, 2019 Jkt 034408 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1498.IS S1498 pbinns on DSK79D2C42PROD with BILLS 8 •S 1498 IS (1) a list of the ten installations within each 1 military department that emit the most carbon; 2 (2) an estimate of all energy consumption by 3 the Department of Defense, including greenhouse 4 gas emissions; and 5 (3) an assessment of greenhouse gas emissions 6 at all installations of the Department, disaggregated 7 by operational and non-operational sources. 8 (b) METRICS.—In determining energy consumption 9 and greenhouse gas emissions under paragraphs (2) and 10 (3) of subsection (a), the Secretary shall use metrics es- 11 tablished by the Under Secretary of Defense for Acquisi- 12 tion and Sustainment, in consultation with the National 13 Academy of Sciences and a federally funded research and 14 development center. 15 SEC. 6. CLIMATE-CONSCIOUS CONTRACTING OF DEPART- 16 MENT OF DEFENSE. 17 (a) IN GENERAL.—Chapter 137 of title 10, United 18 States Code, is amended by adding at the end the fol- 19 lowing new section: 20 ‘‘§ 2339b. Requirements relating to energy consump- 21 tion and climate change 22 ‘‘(a) PROJECTED ENERGY CONSUMPTION.—Each 23 Department of Defense contract for the procurement of 24 property or services entered into on or after October 1, 25 VerDate Sep 11 2014 22:32 May 28, 2019 Jkt 034408 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1498.IS S1498 pbinns on DSK79D2C42PROD with BILLS 9 •S 1498 IS 2019, shall include a written estimate by the Department 1 of the total projected energy consumption of all work to 2 be performed under the contract, and a statement of 3 whether the contract will include investments by the con- 4 tractor or the Department in renewable energy or energy- 5 efficient sources. 6 ‘‘(b) POLICY ON CONSIDERATION OF CERTAIN FAC- 7 TORS IN DETERMINATIONS TO AWARD CONTRACTS.—In 8 making any determination to enter into a contract de- 9 scribed in subsection (a), the Secretary of Defense shall 10 take into account— 11 ‘‘(1) whether the contractor verifiably produces 12 as much renewable energy as the total energy it con- 13 sumes; and 14 ‘‘(2) whether there is any order against the con- 15 tractor by the Environmental Protection Agency, the 16 Department of Justice, or a State attorney general 17 to pay a fine or take remedial action for a violation 18 of an environmental law or regulation of the United 19 States. 20 ‘‘(c) DISCLOSURE OF CLIMATE-RELATED RISKS.— 21 Each prospective contractor with the Department of De- 22 fense shall, as a prerequisite of bidding for a contract with 23 the Department, submit a detailed statement to the De- 24 partment that includes information regarding— 25 VerDate Sep 11 2014 22:32 May 28, 2019 Jkt 034408 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1498.IS S1498 pbinns on DSK79D2C42PROD with BILLS 10 •S 1498 IS ‘‘(1) the identification of, the evaluation of po- 1 tential financial impacts of, and any risk-manage- 2 ment strategies relating to— 3 ‘‘(A) physical risks posed to the contractor 4 by climate change; and 5 ‘‘(B) transition risks posed to the con- 6 tractor by climate change; and 7 ‘‘(2) a description of any established corporate 8 governance processes and structures to identify, as- 9 sess, and manage climate-related risks. 10 ‘‘(d) ASSESSMENT OF FEES TO COMBAT CLIMATE 11 CHANGE.—(1) Each Department of Defense contract for 12 the procurement of property or services entered into on 13 or after October 1, 2019, shall include a requirement that 14 the contractor pay to the Department of Defense a fee 15 equal to one percent of the value of the contract in the 16 case of a contractor that is not, at the time of the Depart- 17 ment’s solicitation of the contract, verifiably producing as 18 much renewable energy as the total energy it consumes. 19 ‘‘(2) Any contractor required to pay a fee under para- 20 graph (1) with respect to a contract may not offset the 21 cost of such fee by increasing the amount of the proposal 22 for such contract. 23 VerDate Sep 11 2014 22:32 May 28, 2019 Jkt 034408 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1498.IS S1498 pbinns on DSK79D2C42PROD with BILLS 11 •S 1498 IS ‘‘(e) WAIVER.—(1) The Secretary of Defense may 1 waive the requirements in subsections (a) and (b) if the 2 Secretary— 3 ‘‘(A)(i) determines that such requirements 4 would adversely affect operational safety, force pro- 5 tection, or the national security interests of the 6 United States; or 7 ‘‘(ii) with respect to particular property or serv- 8 ices, determines that— 9 ‘‘(I) market conditions for the property or 10 services have adversely affected (or will in the 11 near future adversely affect) the acquisition of 12 the property or services by the Department of 13 Defense; and 14 ‘‘(II) the waiver will expedite or facilitate 15 the acquisition of the property or services; and 16 ‘‘(B) submits to the congressional defense com- 17 mittees a written notification of the waiver, together 18 with a justification for the waiver. 19 ‘‘(2) The period of any waiver under paragraph (1) 20 may not exceed 30 days. 21 ‘‘(3) Any waiver under this subsection may be re- 22 newed one or more times, in the manner provided for the 23 initial such waiver under paragraph (1) and for the period 24 provided for in paragraph (2).’’. 25 VerDate Sep 11 2014 22:32 May 28, 2019 Jkt 034408 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1498.IS S1498 pbinns on DSK79D2C42PROD with BILLS 12 •S 1498 IS (b) CLERICAL AMENDMENT.—The table of sections 1 at the beginning of chapter 137 of title 10, United States 2 Code, is amended by inserting after the item relating to 3 section 2339a the following new item: 4 ‘‘2339b. Requirements relating to energy consumption and climate change.’’. (c) ENERGY AND CLIMATE RESILIENCY FUND.— 5 (1) IN GENERAL.—There is established in the 6 Treasury of the United States a fund, to be known 7 as the ‘‘Energy and Climate Resiliency Fund’’ (in 8 this subsection re [Text truncated for display. Full text available on Congress.gov.]