[Federal Register Volume 76, Number 52 (Thursday, March 17, 2011)]
[Rules and Regulations]
[Pages 14587-14588]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-6233]


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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: Final rule.

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SUMMARY: DoD is adopting as final, without change, the interim rule

[[Page 14588]]

amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to implement section 828 of the National Defense Authorization Act for 
Fiscal Year 2008.

DATES: Effective Date: March 17, 2011.

FOR FURTHER INFORMATION CONTACT: Ms. Amy G. Williams, 703-602-0328.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD published an interim rule at 75 FR 34942 on June 21, 2010, to 
amend 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)). Section 828 of the National Defense Authorization 
Act (NDAA) for Fiscal Year (FY) 2008 (Pub. L. 110-181) authorizes DoD 
to enter into a contract for a period in excess of five years only if 
the head of the contracting activity determined, 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.

II. Executive Order 12866

    This rule is not a significant regulatory action and, therefore, 
was not subject to review under section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

III. Executive Order 13563

    In accordance with Executive Order 13563, Improving Regulation and 
Regulatory Review, dated January 18, 2011, DoD has determined that this 
rule is not excessively burdensome to the public, and is consistent 
with DoD's intent to purchase electricity from sources of renewable 
energy in the most cost-effective manner.

IV. Regulatory Flexibility Act

    This final rule is not expected to have a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because there 
are a very limited number of small businesses engaged in the sale of 
energy-related services, to include the sale of renewable energy. The 
market for renewable fuels is highly volatile and is less predictable 
than other fuel markets. Renewable-energy and alternative-fuel projects 
are capital-intensive investments and involve the construction of 
production facilities, which limits small-entity participation.
    Although no significant economic impact on small business is 
anticipated, DoD has prepared a final regulatory flexibility analysis 
consistent with 5 U.S.C. 604. A copy of the analysis is summarized 
below and may be obtained from the point of contact specified herein. 
The analysis is summarized as follows:
    The objective of this rule is to implement section 828 of the NDAA 
for FY 2008. Section 828 authorized the Department of Defense (DoD) 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)). This final rule establishes the conditions under 
which the head of the contracting activity may enter into a contract 
for the purchase of renewable energy not to exceed 10 years. Section 
828 allows DoD to award a contract for a period in excess of five 
years: (1) Only after a determination of the cost effectiveness of the 
proposed purchase has been made based upon a business case analysis, 
and (2) if 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 final rule will apply to DoD contractors engaged in the sale 
of energy-related services to include the sale of renewable energy.
    This rule does not duplicate, overlap, or conflict with any other 
Federal rules. DoD considers the approach described in the interim rule 
published at 75 FR 34942 on June 21, 2010, to be the most practical and 
beneficial for both Government and industry.
    DoD invited comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities. No comments were received.

V. Paperwork Reduction Act

    This rule does not impose additional information collection 
requirements that require the approval of the Office of Management and 
Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 48 CFR Parts 217 and 241

    Government procurement.

Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.

Interim Rule Adopted as Final Without Change

    Accordingly, the interim rule amending 48 CFR parts 217 and 241, 
which was published at 75 FR 34942 on June 21, 2010, is adopted as a 
final rule without change.

[FR Doc. 2011-6233 Filed 3-16-11; 8:45 am]
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