40 U.S.C. § 591: Purchase of electricity

Summary

Federal agencies must follow state rules when they buy electricity. They cannot ignore state decisions about which companies can sell power or the service areas set by state regulators and utility franchises. There are two exceptions. Agency heads can use energy‑savings contracts under section 801 of the National Energy Conservation Policy Act (42 U.S.C. 8287). The military can use contracts under section 2394 of title 10, and may buy from another supplier if the franchise utility cannot or will not meet special reliability needs for national defense.

Title 40, §591

Public Buildings, Property, and Works, Source: USLM XML via OLRC

(a)General Limitation on Use of Amounts.—

A department, agency, or instrumentality of the Federal Government may not use amounts appropriated or made available by any law to purchase electricity in a manner inconsistent with state law governing the provision of electric utility service, including—

(1)state utility commission rulings; and

(2)electric utility franchises or service territories established under state statute, state regulation, or state-approved territorial agreements.

(b)Exceptions.—

(1)Energy savings.—

This section does not preclude the head of a federal agency from entering into a contract under section 801 of the National Energy Conservation Policy Act (42 U.S.C. 8287).

(2)Energy savings for military installations.—

This section does not preclude the Secretary of a military department from—

(A)entering into a contract under section 2394 of title 10; or

(B)purchasing electricity from any provider if the Secretary finds that the utility having the applicable state-approved franchise (or other service authorization) is unwilling or unable to meet unusual standards of service reliability that are necessary for purposes of national defense.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 59140:490 note.Pub. L. 100–202, § 101(b) [title VIII, § 8093], Dec. 22, 1987, 101 Stat. 1329–79. In subsection (b)(1), the words “section 801 of the National Energy Conservation Policy Act (42 U.S.C. 8287)” are substituted for “42 U.S.C. 8287” in section 8093 of the Department of Defense Appropriations Act, 1988 as the probable intent of Congress.

Editorial Notes

References in Text

Section 2394 of title 10, referred to in subsec. (b)(2)(A), was renumbered section 2922a of such title by Pub. L. 109–364, div. B, title XXVIII, § 2851(b)(2), Oct. 17, 2006, 120 Stat. 2494.

§591 Purchase of Electricity