Army Updates Rules Governing Utility Sales

The Army last month released a long-awaited revision to its regulations governing the acquisition and sale of utilities services.

The revised regulations, AR 420-41, took effect April 3 and incorporate significant changes in energy policy and technology occurring over the past 20 years, according to the Engineering and Support Center, Huntsville. The regulations cover Army policies and responsibilities for the acquisition and sale of utilities and related services for its domestic facilities, including electricity, natural or manufactured gas, water, sewage, thermal energy, chilled water, steam, hot water or high temperature hot water.

The regulations also address renewable energy, onsite generation, demand response and energy financial incentives. The intent of the regulations is the acquisition of life cycle cost-effective utility services commensurate with facility requirements and the sale of utilities and related services to garrison reimbursable customers.

The new regulations:

  • update general Army policies for acquiring and selling utilities and services;
  • incorporate energy-related statutes and executive order requirements related to the purchase of utility services from renewable energy, demand response pricing and environmental concerns;
  • identify considerations for acquiring utilities services from renewable resource projects through power purchase agreements;
  • update approval threshold levels for acquisition contracts and add guidance on waivers from service-related regulations and guidance;
  • provide guidance on preparing, executing and administering solicitations and contracts for acquiring utility services; and
  • provide guidance on acquisition utility contract rate changes.
Dan Cohen
Dan Cohen

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