S5519-118

1. Short title This Act may be cited as the Department of Defense Climate Resilience and Readiness Act.

2. Definitions In this Act: The term climate change means a change of climate that is— attributed directly or indirectly to human activity that alters the composition of the global atmosphere; and in addition to natural climate variability observed over comparable time periods. The term congressional defense committees has the meaning given that term in section 101(a)(16) of title 10, United States Code. The term green manufacturing technology means manufacturing processes that— use low carbon intensity materials; reduce carbon emissions or have low global warming potential during the production of the material or product; and use renewable energy resources in producing the material or product. The term net zero energy means a reduction by an entity in overall energy use, maximization of energy efficiency, and implementation and use of energy recovery and cogeneration capabilities, and an offset of the remaining demand for energy with production of energy from onsite renewable energy sources, such that as much energy is produced by the entity as the entity uses over the course of a year. The term resilience has the meaning given the term energy and climate resiliency in section 2864(f)(3) of title 10, United States Code. The term non-operational sources— means fixed installations, enduring locations, and non-tactical vehicles of the Department of Defense; and does not include sources in connection with the training, moving, and sustaining of the Armed Forces and weapons platforms for military operations and training, including tactical power systems and generators at non-enduring locations of the Department of Defense. The term renewable energy source has the meaning given that term in section 2924(6) of title 10, United States Code. The term United States means the several States, the District of Columbia, and any territory or possession of the United States.

3. Net zero energy by non-operational sources of the Department of Defense The Department of Defense shall achieve aggregate net zero energy across the Department in use of energy by non-operational sources by not later than December 31, 2034. Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report setting forth the strategy of the Department of Defense to achieve the requirement under subsection (a). The report required by paragraph (1) shall set forth the following: The strategy of the Department of Defense to achieve the requirement under subsection (a) for all installations under the jurisdiction of the Department (other than the military departments). The strategy of each military department to achieve the requirement under subsection (a) for all installations under the jurisdiction of such department. An assessment of the manner in which the achievement by the Department of Defense of the requirement under subsection (a) will enhance the readiness of the Armed Forces to address threats posed by Russia, China, Iran, North Korea, and violent extremism. Not later than two years after the submittal of the report required by paragraph (1), and every two years thereafter through December 31, 2034, the Secretary shall submit to Congress a report setting forth the following: A current assessment of the progress of the Department of Defense in implementing the strategy described in paragraph (1), set forth by military department, Defense Agency, and other component or element of the Department. Any updates to the strategy. The Secretary shall consult with the National Academy of Sciences and a federally funded research and development center in developing the report required by paragraph (1) and any update to that report under paragraph (3). The Secretary of Defense may waive the requirement in subsection (a) if the Secretary— determines that achievement of such requirement would adversely affect operational safety, force protection, or the national security interests of the United States; and submits to the congressional defense committees a written notification of the waiver, together with a justification for the waiver. The period of any waiver under paragraph (1) may not exceed 30 days. Any waiver under this subsection may be renewed one or more times, in the manner provided for the initial such waiver under paragraph (1) and for the period provided for in paragraph (2).

4. Inclusion in Annual Energy Management and Resilience Report of Department of Defense of list of military installations that emit the most carbon and estimate of energy consumption by Department For every fiscal year beginning after the date of the enactment of this Act, the Secretary of Defense shall include in the Annual Energy Management and Resilience Report for that fiscal year— a list of the ten installations within each military department that emit the most carbon; an estimate of all energy consumption by the Department of Defense, including greenhouse gas emissions; and an assessment of greenhouse gas emissions at all installations of the Department, disaggregated by operational and non-operational sources. In determining energy consumption and greenhouse gas emissions under paragraphs (2) and (3) of subsection (a), the Secretary shall use metrics established by the Under Secretary of Defense for Acquisition and Sustainment, in consultation with the National Academy of Sciences and a federally funded research and development center.

5. Climate-conscious contracting of Department of Defense Chapter 873 of title 10, United States Code, is amended by adding at the end the following new section: Each Department of Defense contract for the procurement of property or services entered into on or after October 1, 2025, shall include a written estimate by the Department of the total projected energy consumption of all work to be performed under the contract, and a statement of whether the contract will include investments by the contractor or the Department in renewable energy or energy-efficient sources. In making any determination to enter into a contract described in subsection (a), the Secretary of Defense shall take into account— whether the contractor verifiably produces as much renewable energy as the total energy it consumes; and whether there is any order against the contractor by the Environmental Protection Agency, the Department of Justice, or a State attorney general to pay a fine or take remedial action for a violation of an environmental law or regulation of the United States. Each prospective contractor with the Department of Defense shall, as a prerequisite of bidding for a contract with the Department, submit a detailed statement to the Department that includes information regarding— the identification of, the evaluation of potential financial impacts of, and any risk-management strategies relating to— physical risks posed to the contractor by climate change; and transition risks posed to the contractor by climate change; a description of any established corporate governance processes and structures to identify, assess, and manage climate-related risks; and an inventory of annual Scopes 1, 2, and 3 greenhouse gas emissions. Each Department of Defense contract for the procurement of property or services entered into on or after October 1, 2025, shall include a requirement that the contractor pay to the Department of Defense a fee equal to one percent of the value of the contract in the case of a contractor that is not, at the time of the Department’s solicitation of the contract, verifiably producing as much renewable energy as the total energy it consumes. Any contractor required to pay a fee under paragraph (1) with respect to a contract may not offset the cost of such fee by increasing the amount of the proposal for such contract. The Secretary of Defense may waive the requirements in subsections (a) and (b) if the Secretary— determines that such requirements would adversely affect operational safety, force protection, or the national security interests of the United States; or with respect to particular property or services, determines that— market conditions for the property or services have adversely affected (or will in the near future adversely affect) the acquisition of the property or services by the Department of Defense; and the waiver will expedite or facilitate the acquisition of the property or services; and submits to the congressional defense committees a written notification of the waiver, together with a justification for the waiver. The period of any waiver under paragraph (1) may not exceed 30 days. Any waiver under this subsection may be renewed one or more times, in the manner provided for the initial such waiver under paragraph (1) and for the period provided for in paragraph (2). The table of sections at the beginning of chapter 873 of title 10, United States Code, is amended by inserting after the item relating to section 8755 the following new item: There is established in the Treasury of the United States a fund, to be known as the Energy and Climate Resilience Fund (in this subsection referred to as the Fund), to be administered by the Secretary of Defense. Amounts deposited in the Fund shall be used only for climate-related improvements that contribute to the continued operational viability and the resilience of the networks, systems, installations, facilities, and other assets and capabilities of the Department of Defense. Notwithstanding section 3302 of title 31, United States Code, fees collected under section 8756(d) of title 10, United States Code, as added by subsection (a)— shall be deposited into the Fund to carry out the activities described in paragraph (2); to the extent and in the amounts provided in advance in appropriations Acts, shall be available to the Secretary of Defense; and shall remain available until expended. In this subsection, the term climate-related improvements means efforts by the Department of Defense to prepare for, or mitigate the effects of, the following: Extreme weather. Rising sea tides and sea levels. Increased flooding. Drought. Desertification. Wildfires. Thawing permafrost. Such other conditions as the Secretary determines necessary. With respect to contracts awarded by the Department of Defense, the Department shall give a preference to qualified contractors. In making any determination to enter into a contract described in paragraph (1), the Secretary of Defense shall take into account— whether the qualified contractor verifiably produces as much renewable energy as the total energy it consumes; whether the qualified contractor verifiably uses green manufacturing technology; and whether there is any order against the qualified contractor by the Environmental Protection Agency, the Department of Justice, or a State attorney general to pay a fine or take remedial action for a violation of an environmental law or regulation of the United States. The Secretary of Defense shall prescribe such procedures as may be necessary for— contractors to verify that they are qualified contractors; qualified contractors meeting the requirements of paragraph (2) to certify that not more than 25 percent of the amount paid under the contract will be expended on a subcontract to a contractor that is not verifiably meeting those requirements, subject to such necessary and reasonable waivers as the Secretary may prescribe; and recording information on each use of the authority under paragraph (1), including details relevant to the nature of the contract and the qualified contractor, and providing that information to the Comptroller General of the United States. Not later than five years after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the congressional defense committees a report on the individual and aggregate uses of the authority under paragraph (1), using such data as may be available up to that time. The report under subparagraph (A) shall include— an assessment of the frequency and nature of the use of the authority under paragraph (1); and the tendency of contractors to become qualified contractors in order to qualify for the authority under paragraph (1). In this subsection, the term qualified contractor means a contractor that uses green manufacturing technology. With respect to contracts awarded by the Department of Defense, the Department shall award— in fiscal year 2026, not fewer than five percent of contracts to qualified small businesses; by fiscal year 2031, not fewer than 20 percent of contracts to qualified small businesses; and by fiscal year 2034, not fewer than 50 percent of contracts to qualified small businesses. In making any determination to enter into a contract described in paragraph (1), the Secretary of Defense shall take into account— whether the qualified small business verifiably produces as much renewable energy as the total energy it consumes; whether the qualified small business verifiably uses green manufacturing technology or operates with net zero energy; and whether there is any order against the qualified small business by the Environmental Protection Agency, the Department of Justice, or a State attorney general to pay a fine or take remedial action for a violation of an environmental law or regulation of the United States. The Secretary of Defense shall prescribe such procedures as may be necessary for— contractors to verify that they are qualified small businesses; qualified small businesses meeting the requirements of paragraph (2) to certify that not more than 25 percent of the amount paid under the contract will be expended on a subcontract to a contractor that is not verifiably meeting those requirements, subject to such necessary and reasonable waivers as the Secretary may prescribe; and recording information on awards under paragraph (1), including details relevant to the nature of the contract and the qualified small business, and providing that information to the Comptroller General of the United States. Not later than five years after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the congressional defense committees a report on the individual and aggregate awards under paragraph (2), using such data as may be available up to that time. The report under subparagraph (A) shall include— an assessment of the frequency and nature of awards under paragraph (1); and the tendency of small business concerns to become qualified small businesses in order to qualify for awards under paragraph (1). In this subsection: The term qualified small business means a small business concern that verifiably uses green manufacturing technology or operates with net zero energy. The term small business concern has the meaning given that term in section 3 of the Small Business Act (15 U.S.C. 632). 8756.Requirements relating to energy consumption and climate change(a)Projected energy consumptionEach Department of Defense contract for the procurement of property or services entered into on or after October 1, 2025, shall include a written estimate by the Department of the total projected energy consumption of all work to be performed under the contract, and a statement of whether the contract will include investments by the contractor or the Department in renewable energy or energy-efficient sources.(b)Policy on consideration of certain factors in determinations To award contractsIn making any determination to enter into a contract described in subsection (a), the Secretary of Defense shall take into account—(1)whether the contractor verifiably produces as much renewable energy as the total energy it consumes; and(2)whether there is any order against the contractor by the Environmental Protection Agency, the Department of Justice, or a State attorney general to pay a fine or take remedial action for a violation of an environmental law or regulation of the United States.(c)Disclosure of climate-Related risksEach prospective contractor with the Department of Defense shall, as a prerequisite of bidding for a contract with the Department, submit a detailed statement to the Department that includes information regarding—(1)the identification of, the evaluation of potential financial impacts of, and any risk-management strategies relating to—(A)physical risks posed to the contractor by climate change; and(B)transition risks posed to the contractor by climate change;(2)a description of any established corporate governance processes and structures to identify, assess, and manage climate-related risks; and(3)an inventory of annual Scopes 1, 2, and 3 greenhouse gas emissions. (d)Assessment of fees To combat climate change(1)Each Department of Defense contract for the procurement of property or services entered into on or after October 1, 2025, shall include a requirement that the contractor pay to the Department of Defense a fee equal to one percent of the value of the contract in the case of a contractor that is not, at the time of the Department’s solicitation of the contract, verifiably producing as much renewable energy as the total energy it consumes.(2)Any contractor required to pay a fee under paragraph (1) with respect to a contract may not offset the cost of such fee by increasing the amount of the proposal for such contract.(e)Waiver(1)The Secretary of Defense may waive the requirements in subsections (a) and (b) if the Secretary—(A)(i)determines that such requirements would adversely affect operational safety, force protection, or the national security interests of the United States; or(ii)with respect to particular property or services, determines that—(I)market conditions for the property or services have adversely affected (or will in the near future adversely affect) the acquisition of the property or services by the Department of Defense; and(II)the waiver will expedite or facilitate the acquisition of the property or services; and(B)submits to the congressional defense committees a written notification of the waiver, together with a justification for the waiver.(2)The period of any waiver under paragraph (1) may not exceed 30 days.(3)Any waiver under this subsection may be renewed one or more times, in the manner provided for the initial such waiver under paragraph (1) and for the period provided for in paragraph (2).. 8756. Requirements relating to energy consumption and climate change..

8756. Requirements relating to energy consumption and climate change Each Department of Defense contract for the procurement of property or services entered into on or after October 1, 2025, shall include a written estimate by the Department of the total projected energy consumption of all work to be performed under the contract, and a statement of whether the contract will include investments by the contractor or the Department in renewable energy or energy-efficient sources. In making any determination to enter into a contract described in subsection (a), the Secretary of Defense shall take into account— whether the contractor verifiably produces as much renewable energy as the total energy it consumes; and whether there is any order against the contractor by the Environmental Protection Agency, the Department of Justice, or a State attorney general to pay a fine or take remedial action for a violation of an environmental law or regulation of the United States. Each prospective contractor with the Department of Defense shall, as a prerequisite of bidding for a contract with the Department, submit a detailed statement to the Department that includes information regarding— the identification of, the evaluation of potential financial impacts of, and any risk-management strategies relating to— physical risks posed to the contractor by climate change; and transition risks posed to the contractor by climate change; a description of any established corporate governance processes and structures to identify, assess, and manage climate-related risks; and an inventory of annual Scopes 1, 2, and 3 greenhouse gas emissions. Each Department of Defense contract for the procurement of property or services entered into on or after October 1, 2025, shall include a requirement that the contractor pay to the Department of Defense a fee equal to one percent of the value of the contract in the case of a contractor that is not, at the time of the Department’s solicitation of the contract, verifiably producing as much renewable energy as the total energy it consumes. Any contractor required to pay a fee under paragraph (1) with respect to a contract may not offset the cost of such fee by increasing the amount of the proposal for such contract. The Secretary of Defense may waive the requirements in subsections (a) and (b) if the Secretary— determines that such requirements would adversely affect operational safety, force protection, or the national security interests of the United States; or with respect to particular property or services, determines that— market conditions for the property or services have adversely affected (or will in the near future adversely affect) the acquisition of the property or services by the Department of Defense; and the waiver will expedite or facilitate the acquisition of the property or services; and submits to the congressional defense committees a written notification of the waiver, together with a justification for the waiver. The period of any waiver under paragraph (1) may not exceed 30 days. Any waiver under this subsection may be renewed one or more times, in the manner provided for the initial such waiver under paragraph (1) and for the period provided for in paragraph (2).

6. Annual report on effects of climate change on Department of Defense Not later than 180 days after the date of the enactment of this Act, and annually thereafter, the Secretary of Defense shall submit to the congressional defense committees a report on vulnerabilities to military installations and combatant commander requirements resulting from climate change that builds upon the report submitted under section 335(c) of the National Defense Authorization Act for Fiscal Year 2018 (Public Law 115–91; 131 Stat. 1358). The report required by subsection (a) shall include the following: An explanation of the underlying methodology behind the climate vulnerability analysis conducted in preparing the report under section 335(c) of the National Defense Authorization Act for Fiscal Year 2018. An assessment of how climate change affects low-lying military installations, military installations of the Navy and the Marine Corps, and military installations outside the United States. An assessment of how climate change affects access of members of the Armed Forces to training ranges. With respect to a military installation in a country outside the United States, an assessment of the collaboration between the Department of Defense and the military or civilian agencies of the government of that country or nongovernmental organizations operating in that country to adapt to risks from climate change. An assessment of how climate change affects housing safety and food security on military installations. An assessment of the strategic benefits derived from isolating infrastructure of the Department of Defense in the United States from the national electric grid and the use of energy-efficient, distributed, and smart power grids by the Armed Forces in the United States and overseas to ensure affordable access to electricity. A list of the ten military installations within each military department that are most vulnerable to climate change based on the effects of the following: Geographic location. Extreme weather. Rising sea tides and sea levels. Increased flooding. Drought. Desertification. Wildfires. Thawing permafrost. Such other categories as the Secretary determines necessary. A climate vulnerability score, determined by the Secretary, for each military installation of the Department. An overview of mitigations, in addition to current efforts undertaken by the Department, that may be necessary to ensure the continued operational viability and to increase the resilience of the vulnerable military installations identified under paragraph (7), and the estimated costs of those mitigations. An assessment of how adapting to climate change impacts the readiness of the Armed Forces to address the threats posed by Russia, China, Iran, North Korea, and violent extremism. In developing each report under subsection (a), the Secretary of Defense shall consult with the Administrator of the Environmental Protection Agency, the Secretary of Energy, the Administrator of the National Oceanic and Atmospheric Administration, the Administrator of the Federal Emergency Management Agency, the Commander of the Army Corps of Engineers, the Administrator of the National Aeronautics and Space Administration, a federally funded research and development center, and the heads of such other relevant Federal agencies as the Secretary of Defense determines appropriate. The report required by subsection (a) shall be submitted in unclassified form but may contain a classified annex if necessary. Upon submittal of the report required by subsection (a), the Secretary of Defense shall publish the unclassified portion of the report on an internet website of the Department of Defense that is available to the public.

7. Incorporation of climate resilience into existing strategies of the Department of Defense Directive 4715.21 of the Department of Defense, dated January 14, 2016, and entitled Climate Change Adaptation and Resilience, shall remain in effect. Each posture statement submitted to Congress by the Secretary of a military department, the Chairman of the Joint Chiefs of Staff, or the commander of a combatant command shall include a description of the implementation and discharge by such official of the Directive referred to in paragraph (1), including the personnel assigned to implement and discharge the Directive and the progress achieved in such implementation and discharge. The Secretary of Defense, in coordination with the heads of other elements of the intelligence community, the Administrator of the Environmental Protection Agency, the Secretary of Energy, the Administrator of the National Oceanic and Atmospheric Administration, the Administrator of the Federal Emergency Management Agency, the Commander of the Army Corps of Engineers, the Administrator of the National Aeronautics and Space Administration, and the heads of such other relevant Federal agencies as the Secretary of Defense determines appropriate, shall incorporate climate change into the National Defense Strategy, the National Military Strategy, and operational plans of the Department of Defense. In this subsection, the term intelligence community has the meaning given that term in section 3 of the National Security Act of 1947 (50 U.S.C. 3003). Among the cross-functional teams established by the Secretary of Defense pursuant to subsection (c) of section 911 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2345; 10 U.S.C. 111 note) in support of the organizational strategy for the Department of Defense required by subsection (a) of that section, the Secretary shall establish a cross-functional team on the implementation and discharge of the requirements under this section. The cross-functional team required by paragraph (1) shall be established in accordance with subsection (c) of section 911 of the National Defense Authorization Act for Fiscal Year 2017, and shall be governed in its activities in accordance with the provisions of such subsection (c). The cross-functional team required by paragraph (1) shall coordinate with the Chief Sustainability Officer of the Department of Defense while implementing and discharging the requirements under this section. The cross-functional team required by paragraph (1) shall be established by not later than 90 days after the date of the enactment of this Act.

9. Conditions on base realignment and closure activities funded through base closure account of Department of Defense With respect to any Base Realignment and Closure round begun by the Department of Defense after the date of the enactment of this Act, the Department shall consider current and potential vulnerabilities to installations and operations of the Department of Defense resulting from climate change and the resilience of installations of the Department. In this section, the term Base Realignment and Closure round means base realignment and closure activities, including real property acquisition and military construction projects, as authorized by the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101–510; 10 U.S.C. 2687 note) and funded through the Department of Defense Base Closure Account established by section 2906 of such Act (as amended by section 2711 of the Military Construction Authorization Act for Fiscal Year 2013 (division B of Public Law 112–239; 126 Stat. 2140)).