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This bill requires the Department of Defense to achieve net zero energy consumption at its non-operational facilities (such as bases and fixed installations) by the end of 2034. The Secretary of Defense must develop and regularly update a comprehensive strategy for meeting this goal and report progress to Congress every two years. The bill allows for short-term waivers only if the secretary determines that meeting the deadline would harm military operations or national security. The legislation establishes new contracting requirements for defense suppliers starting in 2025, including mandatory disclosure of climate-related financial risks and an assessment of contractors' renewable energy use. Contractors that do not produce as much renewable energy as they consume must pay a one-percent fee on their contracts, with funds going to an Energy and Climate Resilience Fund used for climate adaptation projects at military installations. The bill also requires preferences in contracting for companies using clean manufacturing technology and sets increasing targets for awarding contracts to qualified small businesses using green manufacturing, reaching 50 percent by 2034. The Department must produce detailed annual reports on climate vulnerabilities at military installations, including rankings of the ten most vulnerable facilities in each military department, and submit these findings to Congress. Additionally, the bill authorizes up to $250 million annually from 2032 to 2034 for a research and development program focused on energy storage systems and hybrid microgrids to increase military facility resilience and independence from the national electrical grid.

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