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110th Congress                                            Rept. 110-297
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================
 
                 CARBON-NEUTRAL GOVERNMENT ACT OF 2007

                                _______
                                

                 August 3, 2007.--Ordered to be printed

                                _______
                                

  Mr. Waxman, from the Committee on Oversight and Government Reform, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 2635]

      [Including cost estimate of the Congressional Budget Office]

        The Committee on Oversight and Government Reform, to 
whom was referred the bill (H.R. 2635) to reduce the Federal 
Government's contribution to global warming through measures 
that promote efficiency in the Federal Government's management 
and operations, and for other purposes, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................    11
Background and Need for Legislation..............................    12
Legislative History..............................................    14
Section-By-Section...............................................    15
Explanation of Amendments........................................    21
Committee Consideration..........................................    22
Roll Call Votes..................................................    22
Application of Law to the Legislative Branch.....................    22
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................    22
Statement of General Performance Goals and Objectives............    22
Constitutional Authority Statement...............................    23
Federal Advisory Committee Act...................................    23
Unfunded Mandates Statement......................................    23
Earmark Identification...........................................    23
Committee Estimate...............................................    23
Budget Authority and Congressional Budget Office Cost Estimate...    23
Changes in Existing Law Made by the Bill, as Reported............    30
Additional Views.................................................    36

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Carbon-Neutral 
Government Act of 2007''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.

TITLE I--FEDERAL GOVERNMENT INVENTORY AND MANAGEMENT OF GREENHOUSE GAS 
                               EMISSIONS

Sec. 101. Inventory of Federal Government Greenhouse Gas Emissions.
Sec. 102. Management of Federal Government Greenhouse Gas Emissions.
Sec. 103. Pilot project for purchase of offsets and certificates.
Sec. 104. Savings Clause.
Sec. 105. Definitions.
Sec. 106. Authorization of appropriations.

             TITLE II--FEDERAL GOVERNMENT ENERGY EFFICIENCY

Sec. 201. Federal vehicle fleets.
Sec. 202. Agency analyses for mobility acquisitions.
Sec. 203. Federal procurement of energy efficient products.
Sec. 204. Federal building energy efficiency performance standards.
Sec. 205. Management of Federal building efficiency.
Sec. 206. Leasing.
Sec. 207. Procurement and acquisition of alternative fuels.
Sec. 208. Contracts for renewable energy for executive agencies.
Sec. 209. Government Efficiency Status Reports.
Sec. 210. OMB Government Efficiency Reports and Scorecards.
Sec. 211. Authorization of appropriations.
Sec. 212. Judicial review.

SEC. 2. FINDINGS.

  The Congress finds the following:
          (1) The harms associated with global warming are serious and 
        well recognized. These include the global retreat of mountain 
        glaciers, reduction in snow cover extent, the earlier spring 
        melting of rivers and lakes, the accelerated rate of rise of 
        sea levels during the 20th century relative to the past few 
        thousand years, and increased intensity of hurricanes and 
        typhoons.
          (2) The risks associated with a global mean surface 
        temperature increase above 2  C (36  F) above preindustrial 
        temperature are grave. According to the Intergovernmental Panel 
        on Climate Change, such temperature increases would increase 
        the severity of ongoing alterations of terrestrial and marine 
        environments, with potentially catastrophic results. Ongoing 
        and projected effects include more prevalent droughts in dry 
        regions, an increase in the spread of disease, a significant 
        reduction in water storage in winter snowpack in mountainous 
        regions with direct and important economic consequences, a 
        precipitous rise in sea levels by the end of the century, the 
        potential devastation of coastal communities, severe and 
        irreversible changes to natural ecosystems such as the 
        bleaching and destruction of much of the world's coral, and the 
        potential extinction of 30 percent of all living species.
          (3) That these climate change risks are widely shared does 
        not minimize the adverse effects individual persons have 
        suffered and will suffer because of global warming.
          (4) To preserve the ability to stabilize atmospheric 
        greenhouse gas concentrations at levels likely to protect 
        against a temperature rise above 2  C (36  F) will require 
        reductions of greenhouse gas emissions of 50 percent to 85 
        percent globally.
          (5) Achieving such reductions will require a multitude of 
        actions across the global economy that may each address a 
        relatively minute quantity of emissions, but will be 
        cumulatively significant.
          (6) With only 5 percent of the world population, the United 
        States emits approximately 20 percent of the world's total 
        greenhouse gas emissions, and must be a leader in addressing 
        global warming.
          (7) The United States Government is the largest energy 
        consumer in the United States and is responsible for roughly 
        100,000,000 metric tons of CO2-equivalent emissions 
        annually.
          (8) A reduction in greenhouse gas emissions by Federal 
        agencies would slow the increase of global emissions and hence 
        of global warming. In addition, Federal action would accelerate 
        the pace of development and adoption of technologies that will 
        be critical to addressing global warming in the United States 
        and worldwide.
          (9) A failure by any Federal agency to comply with the 
        provisions of this Act requiring reductions in its greenhouse 
        gas emissions would exacerbate the pace and extent of global 
        warming and the harms caused by the agency beyond what would 
        otherwise occur. Although the emissions increments involved 
        could be relatively small, such a failure allowing 
        incrementally greater emissions would injure all United States 
        citizens.
          (10) Improved management of Government operations, including 
        acquisitions and procurement and operation of Government 
        facilities, can maximize the use of existing energy efficiency 
        and renewable energy technologies to reduce global warming 
        pollution, while saving taxpayers' money, reducing our 
        dependence on oil, enhancing national security, cleaning the 
        air, and protecting pristine places from drilling and mining.
          (11) Enhancing the accountability and transparency of 
        Government operations through setting milestones for agency 
        activities, planning, measuring results, tracking results over 
        time, and public reporting can improve Government management 
        and make Government operations more efficient and cost 
        effective.

TITLE I--FEDERAL GOVERNMENT INVENTORY AND MANAGEMENT OF GREENHOUSE GAS 
                               EMISSIONS

SEC. 101. INVENTORY OF FEDERAL GOVERNMENT GREENHOUSE GAS EMISSIONS.

  (a) In General.--Each agency shall, in accordance with the guidance 
issued under subsection (b), annually inventory and report its 
greenhouse gas emissions for the preceding fiscal year. Each such 
inventory and report shall indicate as discrete categories--
          (1) any direct emission of greenhouse gas as a result of an 
        activity of the agency;
          (2) the quantity of indirect emissions of greenhouse gases 
        attributable to the generation of electricity used by the 
        agency and commercial air travel by agency personnel; and
          (3) the quantity of emissions of greenhouse gases associated 
        with the work performed for the agency by Federal contractors, 
        comprising direct emissions and indirect emissions associated 
        with electricity used by, and commercial air travel by, such 
        contractors.
  (b) Guidance; Assistance.--Not later than 3 months after the date of 
the enactment of this Act, the Administrator shall issue guidance for 
agencies for conducting inventories under this section and reporting 
under section 102. Such guidance shall establish inventory and 
reporting procedures that are at least as rigorous as the inventory 
procedures established under the Environmental Protection Agency's 
Climate Leaders program and shall define the scope of the inventories 
of direct emissions described in subsection (a)(1) to be complete and 
consistent with the national obligation for reporting inventories under 
the United Nations Framework Convention on Climate Change. The 
Administrator shall provide assistance to agencies in preparing their 
inventories.
  (c) Initial Inventory by Agencies.--
          (1) Submission.--Not later than 1 year after the date of the 
        enactment of this Act, each agency shall submit to the 
        Administrator and make publicly available on the agency's 
        website an initial inventory of the agency's greenhouse gas 
        emissions for the preceding fiscal year.
          (2) Certification.--Not later than 6 months after an agency 
        submits an initial inventory under paragraph (1), the 
        Administrator shall review the inventory for compliance with 
        the guidance issued under subsection (b) and--
                  (A) certify that the inventory is technically valid; 
                or
                  (B) decline to certify the inventory and provide an 
                explanation of the actions or revisions that are 
                necessary for the inventory to be certified under 
                subparagraph (A).
          (3) Revision.--If the Administrator declines to certify the 
        inventory of an agency under paragraph (2)(B), the agency shall 
        submit to the Administrator and make publicly available on the 
        agency's website a revised inventory not later than 6 months 
        after the date on which the Administrator provides the agency 
        with the explanation required by such paragraph.
  (d) Federal Land Management.--Beginning not later than 2 years after 
the date of enactment of this Act, the Secretary of the Interior and 
the Secretary of Agriculture shall include as a discrete category in 
any inventory under this section any emission of greenhouse gas and any 
biological sequestration of greenhouse gases associated with land 
managed by the Bureau of Land Management or the Forest Service. Such 
emissions and biological sequestration of greenhouse gases shall not be 
considered for the purposes of setting or measuring progress toward 
targets under section 102.

SEC. 102. MANAGEMENT OF FEDERAL GOVERNMENT GREENHOUSE GAS EMISSIONS.

  (a) Emission Reduction Targets.--Not later than 18 months after the 
date of the enactment of this Act, the Administrator shall promulgate 
annual reduction targets for the total quantity of greenhouse gas 
emissions described in section 101(a), expressed as carbon dioxide 
equivalents, of all agencies, taken collectively, for each of fiscal 
years 2010 through 2050.
  (b) Goals.--The targets promulgated under subsection (a) shall be 
calculated so as--
          (1) to prevent the total quantity of greenhouse gas emissions 
        of all agencies in fiscal year 2011 and each subsequent fiscal 
        year from exceeding the total quantity of such emissions in 
        fiscal year 2010; and
          (2) to reduce such greenhouse gas emissions as rapidly as 
        possible, but at a minimum by a quantity equal to 2 percent of 
        projected fiscal year 2010 emissions each fiscal year, so as to 
        achieve zero net annual greenhouse gas emissions from the 
        agencies by fiscal year 2050.
  (c) Proportionate Share.--Each agency shall limit the quantity of its 
greenhouse gas emissions described in section 101(a) to its 
proportionate share so as to enable the agencies to achieve the targets 
promulgated under subsection (a). The Administrator shall promulgate 
annual reduction targets to be met by each agency to comply with this 
subsection.
  (d) Agency Plans for Managing Emissions.--
          (1) Submission.--Not later than 2 years after the date of the 
        enactment of this Act, each agency shall develop, submit to the 
        Administrator, and make publicly available on the agency's 
        website a plan for achieving the annual reduction targets 
        applicable to such agency under this section through fiscal 
        year 2020. Not later than 2 years before the 10-year period 
        beginning in 2021 and each subsequent 10-year period, the 
        agency shall develop, submit to the Administrator, and make 
        publicly available an updated plan for achieving such targets 
        for the respective period. Each plan developed under this 
        paragraph shall--
                  (A) identify the specific actions to be taken by the 
                agency; and
                  (B) estimate the quantity of reductions of greenhouse 
                gas emissions to be achieved through each such action.
          (2) Certification.--Not later than 6 months after an agency 
        submits a plan under paragraph (1), the Administrator shall--
                  (A) certify that the plan is technically sound and, 
                if implemented, is expected to limit the quantity of 
                the agency's greenhouse gas emissions to its 
                proportionate share under subsection (c); or
                  (B) decline to certify the plan and provide an 
                explanation of the revisions that are necessary for the 
                plan to be certified under subparagraph (A).
          (3) Revision.--If the Administrator declines to certify the 
        plan of an agency under paragraph (2), the agency shall submit 
        to the Administrator and make publicly available on the 
        agency's website a revised plan not later than 6 months after 
        the date on which the Administrator provides the agency with 
        the explanation required by paragraph (2)(B).
  (e) Emissions Management.--
          (1) Requirement.--Each agency shall manage its greenhouse gas 
        emissions to meet the annual reduction targets applicable to 
        such agency under this section.
          (2) Revision of plan.--If any agency fails to meet such 
        targets for a fiscal year, as indicated by the inventory and 
        report prepared by the agency for such fiscal year, the agency 
        shall submit to the Administrator and make publicly available 
        on the agency's website a revised plan under subsection (d) not 
        later than March 31 of the following fiscal year. The 
        Administrator shall certify or decline to certify the revised 
        plan in accordance with subsection (d)(2) not later than 3 
        months after receipt of the revised plan.
          (3) Offsets.--
                  (A) Proposal.--If no national mandatory economy-wide 
                cap-and-trade program for greenhouse gases has been 
                enacted by fiscal year 2010, the Administrator shall 
                develop and submit to the Congress by 2011 a proposal 
                to allow agencies to meet the annual reduction targets 
                applicable to such agencies under this section in part 
                through emissions offsets, beginning in fiscal year 
                2015.
                  (B) Contents.--The proposal developed under 
                subparagraph (A) shall ensure that emissions offsets 
                are--
                          (i) real, surplus, verifiable, permanent, and 
                        enforceable; and
                          (ii) additional for both regulatory and 
                        financial purposes (such that the generator of 
                        the offset is not receiving credit or 
                        compensation for the offset in another 
                        regulatory or market context).
                  (C) Rulemaking.--If by 2012 the Congress has not 
                enacted a statute for the express purpose of codifying 
                the proposal developed under subparagraph (A) or an 
                alternative to such proposal, the Administrator shall 
                implement the proposal through rulemaking.
  (f) Management Strategies for Large Tracts of Public Lands.--The 
Forest Service, the Bureau of Land Management, the National Park 
Service, and the United States Fish and Wildlife Service shall--
          (1) within 2 years after the date of the enactment of this 
        Act, conduct studies of the opportunities for management 
        strategies, and identify those management strategies with the 
        greatest potential, to--
                  (A) enhance net biological sequestration of 
                greenhouse gases on Federal lands they manage while 
                avoiding harmful effects on other environmental values; 
                and
                  (B) reduce negative impacts of global warming on 
                biodiversity, water supplies, forest health, biological 
                sequestration and storage, and related values;
          (2) within 3 years after the date of the enactment of this 
        Act, implement programs on selected land management units in 
        different parts of the Nation to test the management strategies 
        identified as having the greatest potential to achieve the 
        benefits described in paragraph (1); and
          (3) report to the Congress on the results of the studies and 
        the management strategies identified.
  (g) Study on Urban and Wildland-Urban Forestry Programs.--Within 2 
years of the date of enactment of this Act, the Forest Service, in 
consultation with appropriate State and local agencies, shall conduct a 
study of the opportunities of urban and wildland-urban interface 
forestry programs to enhance net biological sequestration of greenhouse 
gases and achieve other benefits.
  (h) Reporting.--
          (1) Reports by agencies.--Not later than December 31 each 
        fiscal year, each agency shall submit to the Administrator and 
        make publicly available on the agency's website a report on the 
        agency's implementation of its plan required by subsection (d) 
        for the preceding fiscal year, including the inventory of 
        greenhouse gas emissions of the agency during such fiscal year.
          (2) Annual report to congress.--The Administrator shall 
        review each report submitted under paragraph (1) for technical 
        validity and compile such reports in an annual report on the 
        Federal Government's progress toward carbon neutrality. The 
        Administrator shall submit such annual report to the Committee 
        on Oversight and Government Reform of the House of 
        Representatives and the Committee on Governmental Affairs of 
        the Senate and make such annual report publicly available on 
        the Environmental Protection Agency's website.
          (3) Electronic submission.--In complying with any requirement 
        of this title for submission of inventories, plans, or reports, 
        an agency shall use electronic reporting in lieu of paper copy 
        reports.

SEC. 103. PILOT PROJECT FOR PURCHASE OF OFFSETS AND CERTIFICATES.

  (a) GAO Study.--No later than April 1, 2008, the Comptroller General 
of the United States shall issue the report requested by the Congress 
on May 17, 2007, regarding markets for greenhouse gas emissions 
offsets.
  (b) Pilot Project.--Executive agencies and legislative branch offices 
may purchase qualified greenhouse gas offsets and qualified renewable 
energy certificates in any open market transaction that complies with 
all applicable procurement rules and regulations.
  (c) Qualified Greenhouse Gas Offsets.--For purposes of this section, 
the term ``qualified greenhouse gas offset'' means a real, additional, 
verifiable, enforceable, and permanent domestic--
          (1) reduction of greenhouse gas emissions; or
          (2) sequestration of greenhouse gases.
  (d) Qualified Renewable Energy Certificates.--For purposes of this 
section, the term ``qualified renewable energy certificate'' means a 
certificate representing a specific amount of energy generated by a 
renewable energy project that is real, additional, and verifiable.
  (e) Guidance.--No later than September 30, 2008, the Administrator 
shall issue guidelines, for Executive agencies, establishing criteria 
for qualified greenhouse gas offsets and qualified renewable energy 
certificates. Such guidelines shall take into account the findings and 
recommendations of the report issued under subsection (a) and shall--
          (1) establish performance standards for greenhouse gas offset 
        projects that benchmark reliably expected greenhouse gas 
        reductions from identified categories of projects that reduce 
        greenhouse gas emissions or sequester carbon in accordance with 
        subsection (c); and
          (2) establish criteria for qualified renewable energy 
        certificates to ensure that energy generated is renewable and 
        is in accordance with subsection (d).
  (f) Report.--The Comptroller General of the United States shall 
evaluate the pilot program established by this section, including 
identifying environmental and other benefits of the program, as well as 
its financial costs and any disadvantages associated with the program. 
No later than April 1, 2011, the Comptroller General shall provide a 
report to the Committee on Oversight and Government Reform of the House 
of Representatives and the Committee on Homeland Security and 
Governmental Affairs of the Senate providing the details of the 
evaluation and any recommendations for improvement.
  (g) Additional Definitions.--In this section:
          (1) Notwithstanding section 105(3) of this Act, the term 
        ``Executive agency'' has the meaning given to such term in 
        section 105 of title 5, United States Code.
          (2) The term ``renewable energy'' has the meaning given that 
        term in section 203(b) of the Energy Policy Act of 2005 (42 
        U.S.C. 15852(b)(2)), except that energy generated from 
        municipal solid waste shall not be renewable energy.
  (h) Authorization.--Of the amount of discretionary funds available to 
each Executive agency or legislative branch office for each of fiscal 
years 2009 and 2010, not more than 0.01 percent of such amount may be 
used for the purpose of carrying out this section. Such funding shall 
be in addition to any other funds available to the Executive agency or 
legislative branch office for such purpose.
  (i) Sunset Clause.--This section ceases to be effective at the end of 
fiscal year 2010.

SEC. 104. SAVINGS CLAUSE.

  Nothing in this Act or any amendment made by this Act shall be 
interpreted to preempt or limit the authority of a State to take any 
action to address global warming.

SEC. 105. DEFINITIONS.

  In this title:
          (1) The term ``Administrator'' means the Administrator of the 
        Environmental Protection Agency.
          (2) The term ``carbon dioxide equivalent'' means, for each 
        greenhouse gas, the quantity of the greenhouse gas that makes 
        the same contribution to global warming as 1 metric ton of 
        carbon dioxide, as determined by the Administrator, taking into 
        account the global warming potentials published by the 
        Intergovernmental Panel on Climate Change.
          (3) The term ``agency'' has the meaning given to that term in 
        section 551 of the National Energy Conservation Policy Act (42 
        U.S.C. 8259).
          (4) The term ``greenhouse gas'' means--
                  (A) carbon dioxide;
                  (B) methane;
                  (C) nitrous oxide;
                  (D) hydrofluorocarbons;
                  (E) perfluorocarbons;
                  (F) sulfur hexafluoride; or
                  (G) any other anthropogenically-emitted gas that the 
                Administrator, after notice and comment, determines 
                contributes to global warming to a non-negligible 
                degree.

SEC. 106. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated such sums as may be necessary 
to implement this title.

             TITLE II--FEDERAL GOVERNMENT ENERGY EFFICIENCY

SEC. 201. FEDERAL VEHICLE FLEETS.

  Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) is 
amended--
          (1) by redesignating subsection (f) as subsection (g); and
          (2) by inserting after subsection (e) the following new 
        subsection:
  ``(f) Vehicle Emission Requirements.--
          ``(1) Prohibition.--No Federal agency shall acquire a light 
        duty motor vehicle or medium duty passenger vehicle that is not 
        a low greenhouse gas emitting vehicle.
          ``(2) Guidance.--Each year, the Administrator of the 
        Environmental Protection Agency shall issue guidance 
        identifying the makes and model numbers of vehicles that are 
        low greenhouse gas emitting vehicles. In identifying such 
        vehicles, the Administrator shall take into account the most 
        stringent standards for vehicle greenhouse gas emissions 
        applicable to and enforceable against motor vehicle 
        manufacturers for vehicles sold anywhere in the United States. 
        The Administrator shall not identify any vehicle as a low 
        greenhouse gas emitting vehicle if the vehicle emits greenhouse 
        gases at a higher rate than such standards allow for the 
        manufacturer's fleet average grams per mile of carbon dioxide-
        equivalent emissions for that class of vehicle, taking into 
        account any emissions allowances and adjustment factors such 
        standards provide.
          ``(3) Definition.--For purposes of this subsection, the term 
        `medium duty passenger vehicle' has the meaning given that term 
        section 523.2 of title 49 of the Code of Federal 
        Regulations.''.

SEC. 202. AGENCY ANALYSES FOR MOBILITY ACQUISITIONS.

  (a) Cost Estimate Requirement.--Each Federal agency that owns, 
operates, maintains, or otherwise funds infrastructure, assets, or 
personnel to provide delivery of fuel to its operations shall apply 
activity based cost accounting principles to estimate the fully 
burdened cost of fuel.
  (b) Use of Cost Estimate.--Each agency shall use the fully burdened 
cost of fuel, as estimated under subsection (a), in conducting analyses 
and making decisions regarding its activities that create a demand for 
energy. Such analyses and decisions shall include--
          (1) the use of models, simulations, wargames, and other 
        analytical tools to determine the types of energy consuming 
        equipment that an agency needs to conduct its missions;
          (2) life-cycle cost benefit analyses and other trade-off 
        analyses for determining the cost effectiveness of measures 
        that improve the energy efficiency of an agency's equipment and 
        systems;
          (3) analyses and decisions conducted or made by others for 
        the agency; and
          (4) procurement and acquisition source selection criteria, 
        requests for proposals, and best value determinations.
  (c) Revision of Analytical Tools.--If a Federal agency employs 
models, simulations, wargames, or other analytical tools that require 
substantial upgrades to enable compliance with this section, the agency 
shall complete such necessary upgrades not later than 2 years after the 
date of enactment of this Act.
  (d) Definition.--For purposes of this section, the term ``fully 
burdened cost of fuel'' means the commodity price for the fuel plus the 
total cost of all personnel and assets required to move and, where 
applicable, protect, the fuel from the point at which the fuel is 
received from the commercial supplier to the point of use.

SEC. 203. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

  (a) Amendments.--Section 553 of the National Energy Conservation 
Policy Act (42 U.S.C. 8259b) is amended--
          (1) in subsection (b)(1), by inserting ``in a product 
        category covered by the Energy Star program or the Federal 
        Energy Management Program for designated products'' after 
        ``energy consuming product'';
          (2) in subsection (b)(2)--
                  (A) by striking ``in writing that'' and all that 
                follows through ``(A) an Energy Star'' and inserting 
                ``in writing that an Energy Star''; and
                  (B) by striking ``account; or'' and all that follows 
                through ``requirements of the agency'' and inserting 
                ``account''; and
          (3) in subsection (c)--
                  (A) by inserting ``list in their catalogues, 
                represent as available, and'' after ``Logistics Agency 
                shall'';
                  (B) by striking ``where the agency'' and inserting 
                ``where the head of the agency''; and
                  (C) by striking ``writing that no Energy Star 
                product'' and all that follows through ``requirements, 
                or'' and inserting ``writing''.
  (b) Catalogue Listing Deadline.--Not later than 6 months after the 
date of enactment of this Act, the General Services Administration and 
the Defense Logistics Agency shall ensure that the prohibition in the 
amendment made under subsection (a)(2)(A) has been fully complied with.

SEC. 204. FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE STANDARDS.

  (a) Standards.--Section 305(a)(3) of the Energy Conservation and 
Production Act (42 U.S.C. 6834(a)(3)) is amended by adding at the end 
the following new subparagraph:
  ``(D) Not later than 1 year after the date of enactment of the 
Carbon-Neutral Government Act of 2007, the Secretary shall establish, 
by rule, revised Federal building energy efficiency performance 
standards that require that:
          ``(i) For new Federal buildings and Federal buildings 
        undergoing major renovations:
                  ``(I) The buildings shall be designed so that the 
                fossil fuel-generated energy consumption of the 
                buildings is reduced, as compared with such energy 
                consumption by a similar building in fiscal year 2003 
                (as measured by Commercial Buildings Energy Consumption 
                Survey or Residential Energy Consumption Survey data 
                from the Energy Information Agency), by the percentage 
                specified in the following table:





``Fiscal Year                            Percentage Reduction
  2010.................................  60
  2015.................................  70
  2020.................................  80
  2025.................................  90
  2030.................................  100.

                  ``(II) Sustainable design principles shall be applied 
                to the siting, design, and construction of such 
                buildings. For building types for which the United 
                States Green Building Council Leadership in Energy and 
                Environmental Design (LEED) certification for New 
                Construction and Major Renovation is applicable, such 
                buildings shall be designed to meet, at a minimum, the 
                LEED silver level standard (or any successor standard 
                thereto), or if any additional capital cost is 
                projected to be recoverable through energy and other 
                operational cost savings within 10 years, the LEED gold 
                level standard (or any successor standard thereto).
          ``(ii) In addition to any use of water conservation 
        technologies otherwise required by this section, water 
        conservation technologies shall be applied to the extent that 
        the technologies are life-cycle cost-effective.''.
  (b) Definitions.--Section 303 of the Energy Conservation and 
Production Act (42 U.S.C. 6832) is amended--
          (1) in paragraph (6), by striking ``which is not legally 
        subject to State or local building codes or similar 
        requirements.'' and inserting ``. Such term shall include 
        buildings built for the purpose of being leased by a Federal 
        agency, and privatized military housing.''; and
          (2) by adding at the end the following new paragraph:
          ``(17) The term `major renovation' means the renovation of a 
        major component or substantial structural part of a building 
        that materially increases the value of the building, 
        substantially prolongs the useful life of the building, or 
        adapts the building to a new or different use.''.

SEC. 205. MANAGEMENT OF FEDERAL BUILDING EFFICIENCY.

  (a) Benchmarking and Recommissioning.--Section 543 of the National 
Energy Conservation Policy Act (42 U.S.C. 8253) is amended by adding at 
the end the following new subsections:
  ``(f) Energy Performance Benchmarking.--
          ``(1) Requirements.--Each Federal agency shall, with respect 
        to each of its Federal buildings with greater than 40,000 
        square feet of space or greater than $75,000 per year in energy 
        costs, annually benchmark the energy efficiency performance of 
        the building and, where feasible, rate that performance 
        compared to similar buildings.
          ``(2) Benchmarking and rating tool.--A Federal agency shall 
        use the Energy Star Portfolio Manager Buildings Benchmark Tool 
        in carrying out paragraph (1). If the building is a type of 
        building for which that tool does not allow rating the 
        building's comparative performance, and the Federal Energy 
        Management Program has identified an appropriate tool for 
        rating the building's comparative performance, the agency may 
        use such tool to benchmark and rate the building's performance.
          ``(3) Use of information to enhance building management.--The 
        Federal facilities manager for each building subject to the 
        requirements in paragraph (1) shall use the benchmark 
        performance, rating, and annual energy costs to identify and 
        evaluate opportunities for improving the building's energy 
        efficiency performance and reducing costs.
          ``(4) Public disclosure.--Each Federal agency shall post the 
        benchmarking information generated under this subsection, along 
        with each building's annual energy use per square foot and 
        energy costs, on the agency's website. The agency shall update 
        such information each year, and shall include in such reporting 
        previous years' information to allow changes in building 
        performance to be tracked over time.
  ``(g) Recommissioning and Diagnostic Energy Audit.--
          ``(1) Requirement.--Each Federal agency shall each year 
        recommission or retrocommission, as applicable, and conduct a 
        diagnostic energy audit with respect to, approximately 20 
        percent of its Federal buildings with greater than 40,000 
        square feet of space or greater than $75,000 per year in energy 
        costs, so that all such buildings are recommissioned or 
        retrocommissioned, as applicable, and audited at least once 
        every 5 years.
          ``(2) Use of information to enhance building management.--The 
        Federal facilities manager for each building and the agency 
        official responsible for facilities management shall use the 
        information produced from the energy audits under paragraph (1) 
        as a management tool for prioritizing capital expenditures for 
        maintenance and building upgrades and allocating such 
        expenditures within a facility and across all of the agency's 
        facilities, as applicable.
  ``(h) Large Capital Energy Investments.--Each Federal agency shall 
ensure that any large capital energy investment in an existing building 
that is not a major renovation but involves replacement of installed 
equipment, such as heating and cooling systems, or involves renovation, 
rehabilitation, expansion, or remodeling of existing space, employs the 
most energy efficient designs, systems, equipment, and controls that 
are life-cycle cost effective. Not later than 6 months after the date 
of enactment of the Carbon-Neutral Government Act of 2007, each Federal 
agency shall develop a process for reviewing each such large capital 
energy investment decision to ensure that the requirement of this 
subsection is met, and shall report to the Office of Management and 
Budget on the process established. This process shall incorporate the 
information produced under subsections (f) and (g). Not later than one 
year after the date of enactment of the Carbon-Neutral Government Act 
of 2007, the Office of Management and Budget shall evaluate and report 
to Congress on each agency's compliance with this subsection.''.
  (b) Metering.--Section 543(e)(1) of the National Energy Conservation 
Policy Act (42 U.S.C. 8253(e)(1)) is amended by inserting ``By October 
1, 2016, each agency shall also provide for equivalent metering of 
natural gas, steam, chilled water, and water, in accordance with 
guidelines established by the Secretary under paragraph (2).'' after 
``buildings of the agency.''.

SEC. 206. LEASING.

  (a) In General.--Except as provided in subsection (b), effective 3 
years after the date of enactment of this Act, no Federal agency shall 
enter into a new contract to lease space in a building that has not 
earned the Energy Star label in the most recent year.
  (b) Exception.--If--
          (1) no space is available in such a building that meets an 
        agency's functional requirements, including locational needs; 
        or
          (2) the agency is proposing to remain in a building that the 
        agency has occupied previously,
the agency may enter into a contract to lease space in a building that 
has not earned the Energy Star label in the most recent year if the 
lease contract includes provisions requiring that, prior to occupancy, 
or in the case of a contract described in paragraph (2) not later than 
6 months after signing the contract, the space will be renovated for 
all energy efficiency improvements that would be cost effective over a 
5-year period or the life of the lease, whichever is greater, including 
improvements in lighting, windows, and heating, ventilation, and air 
conditioning systems.

SEC. 207. PROCUREMENT AND ACQUISITION OF ALTERNATIVE FUELS.

  No Federal agency shall enter into a contract for procurement of an 
alternative or synthetic fuel, including a fuel produced from non-
conventional petroleum sources, for any mobility-related use, other 
than for research or testing, unless the contract specifies that the 
lifecycle greenhouse gas emissions associated with the production and 
combustion of the fuel supplied under the contract must, on an ongoing 
basis, be less than or equal to such emissions from the equivalent 
conventional fuel produced from conventional petroleum sources.

SEC. 208. CONTRACTS FOR RENEWABLE ENERGY FOR EXECUTIVE AGENCIES.

  Section 501(b)(1) of title 40, United States Code, is amended--
          (1) in subparagraph (B), by striking ``A contract'' and 
        inserting ``Except as provided in subparagraph (C), a 
        contract''; and
          (2) by adding at the end the following new subparagraph:
                  ``(C) Renewable energy contracts.--A contract for 
                renewable energy may be made for a period of not more 
                than 20 years. For the purposes of this subparagraph, 
                the term `renewable energy' has the meaning given that 
                term in section 203(b) of the Energy Policy Act of 2005 
                (42 U.S.C. 15852(b)(2)), except that energy generated 
                from municipal solid waste shall not be considered 
                renewable energy.''.

SEC. 209. GOVERNMENT EFFICIENCY STATUS REPORTS.

  (a) In General.--Each Federal agency subject to any of the 
requirements of this Act and the amendments made by this Act shall 
compile and submit to the Director of the Office of Management and 
Budget an annual Government efficiency status report on--
          (1) compliance by the agency with each of the requirements of 
        this Act and the amendments made by this Act;
          (2) the status of the implementation by the agency of 
        initiatives to improve energy efficiency, reduce energy costs, 
        and reduce emissions of greenhouse gases; and
          (3) savings to American taxpayers resulting from mandated 
        improvements under this Act and the amendments made by this Act
  (b) Submission.--Such report shall be submitted--
          (1) to the Director at such time as the Director requires;
          (2) in electronic, not paper, format; and
          (3) consistent with related reporting requirements.

SEC. 210. OMB GOVERNMENT EFFICIENCY REPORTS AND SCORECARDS.

  (a) Reports.--Not later than April 1 of each year, the Director of 
the Office of Management and Budget shall submit an Annual Government 
Efficiency report to the Committee on Oversight and Government Reform 
of the House of Representatives and the Committee on Governmental 
Affairs of the Senate, which shall contain--
          (1) a summary of the information reported by agencies under 
        section 209;
          (2) an evaluation of the Government's overall progress toward 
        achieving the goals of this Act and the amendments made by this 
        Act; and
          (3) recommendations for additional actions necessary to meet 
        the goals of this Act and the amendments made by this Act.
  (b) Scorecards.--The Office of Management and Budget shall include in 
any annual energy scorecard it is otherwise required to submit a 
description of each agency's compliance with the requirements of this 
Act and the amendments made by this Act.

SEC. 211. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated such sums as may be necessary 
to implement this title.

SEC. 212. JUDICIAL REVIEW.

  (a) Final Agency Action.--Any nondiscretionary act or duty under this 
Act or any amendment made by this Act is a final agency action for the 
purposes of judicial review under chapter 7 of title 5, United States 
Code.
  (b) Venue for Certain Actions.--The United States Court of Appeals 
for the District of Columbia Circuit shall have exclusive jurisdiction 
over any petition for review of action of the Administrator in 
promulgating any rule under title I of this Act.
  (c) Limitations.--No action under chapter 7 of title 5, United States 
Code, may be commenced prior to 60 days after the date on which the 
plaintiff has given notice to the Federal agency concerned of the 
alleged violation of this Act or any amendment made by this Act.
  (d) Common Claims.--When civil actions arising under this Act or any 
amendment made by this Act are pending in the same court and involve 
one or more common questions of fact or common claims regarding the 
same alleged Federal agency failure or failures to act, the court may 
consolidate such claims into a single action for judicial review. When 
civil actions arising under this Act or any amendment made by this Act 
are pending in different districts and involve one or more common 
questions of fact or common claims regarding the same alleged Federal 
agency failure or failures to act, such actions may be consolidated 
pursuant to section 1407 of title 28, United States Code.
  (e) Aggrieved Persons.--A person shall be considered aggrieved within 
the meaning of this Act or any amendment made by this Act for purposes 
of obtaining judicial review under chapter 7 of title 5, United States 
Code, if the person alleges--
          (1) harm attributable to a Federal agency's failure to reduce 
        its greenhouse gas emissions in accordance with the 
        requirements under this Act or any amendment made by this Act, 
        or take other actions required under this Act or any amendment 
        made by this Act; or
          (2) a Federal agency's failure to collect and provide 
        information to the public as required by this Act or any 
        amendment made by this Act.
For purposes of this section, the term ``harm'' includes any effect of 
global warming, currently occurring or at risk of occurring, and the 
incremental exacerbation of any such effect or risk that is associated 
with relatively small increments of greenhouse gas emissions, even if 
the effect or risk is widely shared. An effect or risk associated with 
global warming is ``attributable'' to a Federal agency's failure to act 
as described in paragraph (1) if the failure to act results in larger 
emissions of greenhouse gases than would have been emitted had the 
Federal agency followed the requirements of this Act or any amendment 
made by this Act, as any such incremental additional emissions will 
exacerbate the pace, extent, and risks of global warming.
  (f) Remedy.--
          (1) In general.--In addition to the remedies available under 
        chapter 7 of title 5, United States Code, a court may provide 
        the remedies specified in this subsection.
          (2) Payment.--In any civil action alleging a violation of 
        this Act, if the court finds that an agency has significantly 
        violated this Act in its failure to perform any 
        nondiscretionary act or duty under this Act or any amendment 
        made by this Act, the court may award a payment, payable by the 
        United States Treasury, to be used for a beneficial mitigation 
        project recommended by the plaintiff or to compensate the 
        plaintiff for any impact from global warming suffered by the 
        plaintiff. The total payment for all claims by all plaintiffs 
        in any such action shall not exceed the amount provided in 
        section 1332(b) of title 28, United States Code. A court may 
        deny a second payment under this section if the court 
        determines that the plaintiff has filed multiple separate 
        actions that could reasonably have been combined into a single 
        action. No payment may be awarded under this paragraph for 
        violations of an agency's obligation to collect or report 
        information to the public. No court may award any payment under 
        this paragraph in any given year if the cumulative payments 
        awarded by courts under this paragraph in such year are equal 
        to or greater than $1,500,000.
          (3) Costs.--A court may award costs of litigation to any 
        substantially prevailing plaintiff or to any other plaintiff 
        whenever the court determines such an award is appropriate. 
        Such an award is appropriate when such litigation contributes 
        to the Federal agency's compliance with this Act or any 
        amendment made by this Act. Costs of litigation include 
        reasonable attorney fees and expert fees.
          (4) Exclusive remedy.--Notwithstanding any other provision of 
        Federal law--
                  (A) no plaintiff who is awarded a payment under this 
                subsection for a failure to perform a mandatory duty 
                under this Act or any amendment made by this Act may be 
                awarded a payment for such failure under any other 
                Federal law; and
                  (B) no plaintiff may be awarded a payment under this 
                subsection for a failure to perform a mandatory duty 
                under this Act or any amendment made by this Act if the 
                plaintiff has been awarded a payment for such failure 
                under any other Federal law.
  (g) No State Court Action.--No person may bring any action in State 
court alleging a violation of this Act or any amendment made by this 
Act.
  (h) Definition.--In this section, the term ``person'' means a United 
States person. In the case of an individual, such term means a citizen 
or national of the United States.

                          Purpose and Summary

    H.R. 2635, the Carbon-Neutral Government Act, was 
introduced by Rep. Waxman on June 7, 2007. H.R. 2635 promotes 
federal leadership on the actions necessary to avoid a 
dangerous level of global warming by making federal government 
operations carbon-neutral by 2050.
    The bill requires federal agencies to inventory their 
greenhouse gas emissions and reduce net emissions to zero by 
2050; directs EPA to set annual government-wide and agency-
specific emissions targets to achieve these reductions; 
requires agencies to develop plans and publicly report progress 
in meeting the targets; requires agencies to purchase low 
greenhouse gas emitting vehicles; requires agencies to use the 
real cost of fuel in acquisition and procurement decisions; 
strengthens requirements for agencies to procure energy 
efficient products; requires new federal buildings to be 
designed to reduce fossil-fuel generated power consumption and 
meet green buildings standards; requires federal buildings 
managers to employ management strategies for enhancing energy 
efficiency; and clarifies citizens' ability to enforce these 
requirements in federal court.

                  Background and Need for Legislation

    A consensus has emerged over the last several decades that 
the Earth's climate is changing, the global mean temperature is 
increasing, dramatic environmental impacts will occur should 
the temperature of the planet continue to rise, and 
anthropogenic emissions are the primary cause and driver of 
global warming. Studies show that a 2 degree Celsius increase 
in global temperatures could result in the extinction of nearly 
30% of all living species, the bleaching of much of the world's 
coral, increased risk of wider spread of certain diseases, 
increased damage from floods and storms, and increased drought 
in already dry regions. The Intergovernmental Panel on Climate 
Change (IPCC) Working Group III (WGIII) findings suggest that 
in order to prevent global temperatures from exceeding 2 
degrees Celsius above pre-industrial levels it will be 
necessary to reduce global emissions 50%-85% below 2000 levels. 
As the world's largest emitter of greenhouse gases according to 
the IPCC, the United States will need to reduce overall 
emissions on the order of 80% below 1990 levels to reach global 
reductions of this magnitude.
    Reducing greenhouse gas emissions from United States 
government operations is an important piece of the broader 
effort to avoid dangerous global warming. The federal 
government is the single largest energy consumer in the United 
States, consuming over 1.1 quadrillion BTU of energy in FY 2005 
at a cost of $14.5 billion. The preliminary estimate for FY 
2006 is that the government consumed roughly 1.1 quadrillion 
BTU of energy at a cost of $17.7 billion. The carbon emissions 
associated with the federal government's operations are 
correspondingly large, estimated at more than 99 million metric 
tons of CO2 equivalent (MMTCE) in 2005. Reducing 
and, by 2050, eliminating these emissions will help slow global 
warming.
    Setting the federal government on the path to carbon 
neutrality will have other, perhaps even more significant, 
benefits. Importantly, it will send a strong message to the 
nation and the international community that the U.S. government 
is re-engaging and will once again be a leader in fighting 
global warming. Since the United States rejected the Kyoto 
Protocol in 2001, we have lost credibility with other nations, 
including key allies, and have lost influence in the 
international negotiations to address this issue. Adopting 
strong standards for the federal government provides proof to 
the world that the U.S. is committed to avoiding dangerous 
climate change.
    In the absence of federal leadership, states, cities, and 
small towns across America, as well as multi-national 
corporations and small businesses, are taking action to address 
global warming. These efforts are very important, and could be 
enhanced with federal government support and additional federal 
action. As Congress moves to adopt mandatory economy-wide 
requirements for greenhouse gas reductions, committing the 
government to eliminate its own emissions is a tangible 
demonstration that steep reductions can and must be achieved.
    Achieving a carbon-neutral federal government will also 
help America transition to the clean, low-carbon economy of the 
future, driving new technologies, businesses, and jobs. The 
federal government owns or controls vast quantities of energy-
consuming equipment and buildings, and it makes hundreds of 
billions of dollars of purchases every year. Entire industries 
have developed solely to supply the government with goods and 
services. Because government needs drive technology advances 
and create markets for new goods, federal action can help 
develop a more vibrant and cleaner economy.
    Currently, there is no requirement for the federal 
government to track or reduce its greenhouse gas emissions by 
any specified quantity. Executive Order 13123, issued on June 
8, 1999, required most federal facilities (but not other 
federal sources) to reduce their greenhouse gas emissions 30% 
below 1990 levels by 2010. While agencies were making progress 
toward meeting this limited goal, it was revoked on January 24, 
2007, by Executive Order 13423.
    There is also no existing requirement for the federal 
government to limit or reduce its overall energy use. The 
Energy Policy Act of 2005 and E.O. 13423 have some requirements 
related to federal government energy use in specific 
applications. However, many of the Energy Policy Act of 2005 
requirements have significant exemptions or are nonbinding, and 
the executive order requirements are not legally enforceable.
    For example, E.O. 13423 directs agencies to reduce their 
vehicle fleets' consumption of petroleum products by two 
percentage points per year, through 2015, relative to baseline 
consumption in FY 2005, and increase non-petroleum-based fuel 
consumption by 10% annually. With respect to buildings, EPAct 
2005 section 102 requires that agencies reduce energy use per 
square foot in most federal facilities by two percentage points 
per year, starting in FY 2006, compared to the energy use in FY 
2003, for a total of 20% less than the FY 2003 baseline use in 
2020. E.O. 13423 increases this requirement to 3 percentage 
points per year, compared to the FY 2003 baseline. EPAct 
section 203 sets unenforceable goals for the federal government 
to aim to use renewable energy to meet at least 3% of its 
energy use in FY 2007-FY 2009, at least 5% in FY 2010-2012, and 
at least 7.5% from FY 2013 on. E.O. 13423 directs agencies to 
meet at least half of the required quantities using new 
renewable generation.
    In the absence of requirements to reduce total government 
energy use, progress has been uneven and in recent years we 
have lost ground. While federal government energy consumption 
fell each year from FY 1997 through FY 2000, energy consumption 
subsequently rose every year from FY 2001 through FY2004, 
falling again only slightly in FY 2005. In FY 2005, federal 
energy use was almost ten percentage points higher than in FY 
2000, relative to a FY 1985 baseline.
    Nearly two thirds of all energy consumed by the federal 
government in 2005 was for fuel used for mobility. This fuel 
used by vehicles, mobile off-road equipment, weapons platforms, 
and mobile generation equipment emitted over 54 MMTCE. 
Approximately one third of the energy consumed by the federal 
government in 2005 was associated with the operation of federal 
facilities. The federal government owns or leases over 500,000 
facilities, or more than 3.7 billion square feet. Federal 
facilities used more than 397 trillion BTU of energy and 
accounted for nearly 45% of all the carbon emitted by the 
federal government in 2005. These emissions are largely 
attributable to fossil-based electricity generation.
    In addition to the requirements for government-wide 
greenhouse gas emissions reductions, the Carbon Neutral 
Government Act includes specific complementary policies to 
reduce fuel consumption and increase energy efficiency in 
federal operations. These policies address federal vehicle 
fleets, other equipment that uses petroleum derived fuel, such 
as ships, tanks and planes, federal buildings, and procurement 
and acquisitions.
    The Carbon Neutral Government Act is critical to reducing 
the federal government's contribution to global warming, 
reducing the government's dependence on energy derived from 
fossil fuels, enhancing energy security, and saving taxpayer 
dollars spent on energy bills.

                          Legislative History

    H.R. 2635, legislation to reduce the federal government's 
contribution to global warming, was introduced on June 7, 2007, 
and referred to the Committee on Oversight and Government 
Reform.
    The Subcommittee on Government Management, Organization, 
and Procurement held a hearing on the Carbon-Neutral Government 
Act on May 17, 2007. The witnesses were Emily Figdor, Director, 
Federal Global Warming Program, U.S. Public Interest Research 
Group; Jeffrey Harris, Vice President for Programs, Alliance to 
Save Energy; and Marshall E. Purnell, FAIA, First Vice 
President and President-Elect, the American Institute of 
Architects.
    The Committee also solicited the views of the 
Administration on the proposed legislation, as well as H.R. 
823, legislation authorizing government purchase of offsets and 
renewable energy certificates. While the Administration 
indicated that it would not be able to provide official 
Administration views on the bill, staff from GSA, EPA, and DOE 
met with Committee staff to provide informal suggestions and 
technical advice. GSA indicated that it is capable of meeting 
the requirements of the bill. EPA indicated that, with 
sufficient resources, the requirements are achievable. DOE 
raised concerns about the scope of the citizen suit provision, 
which has been narrowed in response, and potential costs to 
agencies. Each of the agencies also provided technical comments 
that are addressed in the bill as reported.
    The Committee held a markup to consider H.R. 2635 on June 
12, 2007, and ordered the bill to be reported, as amended, by 
voice vote.

                           Section-by-Section


Sec. 1. Short title

    The short title of the bill is the Carbon-Neutral 
Government Act of 2007.

Sec. 2. Findings

    This section makes a series of findings regarding the 
scientific consensus on the threat posed by global warming, the 
impacts that have already been observed, the harm global 
warming poses to individuals, the need for widespread and 
cumulatively substantial greenhouse gas emissions reductions to 
protect against dangerous climate change, the role of the U.S. 
government in addressing this problem, and the opportunities to 
reduce emissions while saving taxpayers' money and enhancing 
national security through improved management of U.S. 
government operations.

 TITLE I-FEDERAL GOVERNMENT INVENTORY AND MANAGEMENT OF GREENHOUSE GAS 
                               EMISSIONS

Sec. 101. Inventory of federal government greenhouse gas emissions

    Section 101(a) requires each federal agency to inventory 
and report its greenhouse gas emissions annually, in accordance 
with guidance issued by EPA. Emissions include indirect 
emissions from generation of electricity used by the agency and 
commercial air travel by agency personnel, as well as emissions 
associated with government work that has been outsourced to 
private contractors.
    Section 101(b) directs EPA to, within 3 months of 
enactment, issue guidance for agencies for conducting 
inventories. The guidance must sets procedures at least as 
rigorous as the inventory procedures established under EPA's 
Climate Leaders program, a voluntary program for industry 
greenhouse gas reductions.
    Under section 101(c), agencies' initial inventories are due 
one year after enactment, and must be certified by EPA as 
technically valid. If EPA declines to certify an agency 
inventory, the agency must revise the inventory within 6 
months. Inventories must be publicly reported on agencies' Web 
sites.
    Under section 101(d), emissions from certain federal lands 
and biological sinks on such lands must be included in 
inventories within two years of enactment, but are not included 
in the emissions targets and reductions under section 102.

Sec. 102. Management of federal greenhouse gas emissions

    This section establishes binding annual greenhouse gas 
emissions reductions targets for the federal government, and it 
requires agencies to develop and implement plans to meet those 
targets.
    Subsections 102(a), (b), and (c) require EPA, within 18 
months of enactment, to set annual greenhouse gas emissions 
reductions targets for all federal agencies cumulatively and 
individually, based on the agencies' proportionate shares. The 
targets freeze emissions in FY 2011 at FY 2010 levels and 
reduce gradually to achieve zero net emissions in FY 2050. The 
targets must decrease emissions each year by, at minimum, an 
amount equal to 2% of FY 2010 emissions. The targets for some 
years will necessarily decrease emissions by an amount greater 
than 2% of FY 2010 emissions to achieve zero net emissions in 
FY 2050.
    Under section 102(d), agencies' plans for meeting the 
targets are due within two years of enactment, and the plans 
must be certified by EPA as technically sound. The plans must 
identify the specific actions to be taken by the agency and 
estimate the quantity of greenhouse gas emissions reductions to 
be achieved through each action.
    Section 102(e) addresses emissions reductions. It provides 
that if an agency fails to meet its annual target, the agency 
must revise its plan to provide sufficient reductions to 
achieve the targets. This section also addresses the use of 
emissions offsets to help achieve the reduction targets. It 
provides that if no national mandatory economy-wide cap-and-
trade program for greenhouse gases has been enacted by 2010, 
EPA must provide Congress a proposal to allow agencies to use 
some quantity of emissions offsets to assist in meeting their 
targets. EPA must ensure that emissions offsets are real, 
surplus, verifiable, permanent, enforceable, and additional for 
both regulatory and financial purposes. If, by 2012, Congress 
has not acted on EPA's proposal or an alternative, EPA must 
implement its proposal through rulemaking.
    Section 102(f) provides that agencies with large tracts of 
public lands must study and report on management strategies to 
enhance biological carbon sequestration and minimize harmful 
effects of global warming on federal lands.
    Section 102(g) requires the Forest Service to conduct a 
study on the opportunities to enhance net biological 
sequestration of greenhouse gases and achieve other benefits 
through urban forestry programs.
    Section 102(h) requires agencies to annually report to EPA, 
Congress, and the public (through their websites) on the 
implementation of their plans and their emissions. All 
reporting under this title must be done electronically, rather 
than in paper copies.

Sec. 103. Pilot project for purchase of offsets and certificates

    Section 103(a) requires GAO to issue a report on markets 
for greenhouse gas emissions offsets no later than April 1, 
2008.
    Subsections 103(a), (b), (c), (d), and (i) establish a two-
year pilot project authorizing agencies and legislative branch 
offices to purchase greenhouse gas offsets and renewable energy 
certificates that meet specified criteria, as detailed by EPA 
in guidance.
    Section 103(e) requires GAO to evaluate the results of the 
pilot program and report to Congress by April 1, 2011.
    Section 103(h) provides that agencies and legislative 
branch offices may not spend more than 0.01 percent of 
available discretionary funds on such purchases.

Sec. 104. Savings clause

    This section ensures that nothing in this bill preempts or 
limits State actions to address climate change.

Sec. 105. Definitions

    This section defines key terms in the bill.

Sec. 106. Authorization of appropriations

    This section authorizes the appropriation of such sums as 
are necessary to implement this title.

             TITLE II-FEDERAL GOVERNMENT ENERGY EFFICIENCY

Sec. 201. Federal vehicle fleets

    This section amends section 303 of the Energy Policy Act of 
1992 to require agencies to purchase vehicles for federal 
fleets that have lower greenhouse gas emissions.
    Amended section 303(f)(1) bars agencies from purchasing 
vehicles for federal fleets that are not ``low greenhouse gas 
emitting vehicles.''
    Amended section 303(f)(2) provides that each year, EPA must 
issue guidance identifying the makes and model numbers of low 
greenhouse gas emitting vehicles. In identifying such vehicles, 
the Administrator shall take into account the most stringent 
standards for vehicle greenhouse gas emissions applicable to 
and enforceable against motor vehicle manufacturers for 
vehicles sold anywhere in the United States. The Administrator 
shall not identify any vehicle as a low greenhouse gas emitting 
vehicle if the vehicle emits greenhouse gases at a higher rate 
than such standards allow for a manufacturer's overall fleet 
average emissions for that class of vehicle.
    Currently, the only applicable greenhouse gas emissions 
standards are those adopted by California and other states. 
Those standards will be enforceable if and when EPA grants the 
waiver requested by the state of California under the Clean Air 
Act.

Sec. 202. Agency analyses for mobility acquisitions

    This section corrects an existing disincentive for the 
Department of Defense and other agencies to purchase more 
efficient equipment related to mobility (such as planes and 
tanks) that would provide large cost savings. The disincentive 
stems from the large discrepancy that exists between the cost 
of fuel at the point-of-purchase and the cost of fuel at the 
point-of-use when the fuel must be delivered and protected, 
such as fuel used on a battlefield or for in-air refueling of 
aircraft. The Defense Science Board and others have estimated 
that the real cost of fuel in such applications can range from 
$15 per gallon up to hundreds of dollars per gallon. Current 
analytical models for procurement and acquisition decisions, 
however, assume that the cost of fuel is the purchase price, 
not the cost at the point of use. Thus, such models 
dramatically underestimate the benefits of more fuel-efficient 
equipment, which would reduce the amount of fuel actually used 
by the equipment. Such benefits could include direct cost 
savings, the ability to reallocate resources currently used for 
protecting deliveries, and even reduced casualties.
    Section 202(a) requires agencies that expend resources to 
deliver fuel to their operations to estimate the ``fully 
burdened cost of fuel,'' which is the full cost of moving and, 
where applicable, protecting, the fuel.
    Section 202(b) requires agencies to use these estimates in 
all analyses and decisions about activities that create a 
demand for fuel.
    Section 202(c) mandates that any analytical tools that 
require substantial upgrades to comply with this requirement be 
upgraded within two years of enactment.

Sec. 203. Federal procurement of energy efficient products

    This section amends section 553 of the National Energy 
Conservation Policy Act to strengthen existing requirements 
that agencies purchase, and GSA and DLA supply, energy 
efficient products in the product categories where such 
products are identified. Section 104 of EPAct 2005 currently 
requires agencies only to purchase, and GSA and DLA only to 
supply, Energy Star or FEMP designated products in product 
categories where they are available, where such products are 
cost effective, reasonably available, and meet the functional 
requirements of the agency. However, GSA catalogues currently 
list numerous inefficient products in product categories 
covered by the Energy Star program, and GSA requires no 
documentation or certification from agencies that the 
exemptions apply prior to supplying inefficient products to 
agencies.
    Section 203(a)(2) removes the existing exemption allowing 
agencies to claim that efficient products do not meet their 
functional requirements. It also explicitly bars GSA and DLA 
from listing products in its catalogues that fail to meet these 
criteria.
    Section 203(b) requires GSA and DLA to revise their 
catalogues within six months of enactment to comply with the 
bar on listing inefficient products.

Sec. 204. Federal building energy efficiency performance standards

    This section amends section 305(a)(3) of the Energy 
Conservation and Production Act to significantly strengthen the 
existing performance standards for new federal buildings and 
federal buildings undergoing major renovations. As amended by 
section 109 of the Energy Policy Act of 2005, section 305(a)(3) 
currently requires new federal buildings to be designed to 
consume 30% less energy than required by code, if cost 
effective.
    Under section 204(a), within one year of enactment, DOE 
must issue rules requiring all federal buildings that are new, 
undergoing major renovations, and/or are built for the federal 
government to lease, to meet new performance standards for 
energy consumption. Such buildings must also be certified as 
LEED silver, or where cost effective, LEED gold, under the U.S. 
Green Buildings Council standards. The new performance 
standards for energy consumption are based on a proposal from 
the American Institute of Architects. They require a building 
designed in FY 2010 to consume 60% less fossil fuel-generated 
energy than a comparable building consumed in FY 2003. This 
requirement is strengthened every five years, such that a 
building designed in FY 2030 must consume zero fossil fuel-
generated energy.

Sec. 205. Management of federal building energy efficiency

    This section amends section 543 of the National Energy 
Conservation Policy Act to require agencies to apply specified 
management tools to identify and prioritize opportunities to 
improve the energy efficiency of large federal buildings 
(greater than 40,000 square feet or with greater than $75,000 
annual energy costs).
    New section 543(f) requires agencies to benchmark annually 
the energy efficiency performance of these buildings and rate 
that performance against comparable buildings using an Energy 
Star benchmark tool. This will allow agencies to use a simple 
online tool to determine the baseline energy performance for 
each large building and compare each building's performance to 
that of buildings of a similar size and function. Agencies must 
publicly disclose the benchmarking results as well as their 
energy costs for each large building on the agency's Web site.
    New section 543(g) requires agencies to recommission or 
retrocommission and perform an energy audit of approximately 
20% of its large federal buildings each year, so as to cover 
each large federal building at least once every five years. 
``Commissioning'' is a systematic method for investigating how 
an existing building's systems are operated and maintained, 
which is used to calibrate a building's energy systems for 
optimal performance. Buildings that have already undergone 
commissioning are ``recommissioned,'' while buildings that have 
never been commissioned are ``retrocommissioned.'' Diagnostic 
energy audits identify available cost effective energy savings.
    New section 543(h) requires agencies to develop internal 
processes to ensure that all large capital energy investments 
use the most energy efficient designs, systems, equipment and 
controls that are life-cycle cost effective. Agencies must 
report to OMB on their process for reviewing such investments.
    Section 205(b) amends section 543(e)(1), which requires 
metering of federal buildings, to clarify that the requirements 
include metering of natural gas, steam, chilled water, and 
water. This section provides agencies an additional four years 
to install such meters.

Sec. 206. Leasing

    This section ensures that when agencies lease space in 
existing private sector buildings, they select space in more 
energy efficient buildings.
    Section 206(a) requires an agency, when entering into a new 
contract to lease space in a building, to lease space in an 
Energy Star building. An existing building can earn the Energy 
Star by benchmarking its energy performance to show that its 
energy efficiency performance is in the top 25% of that of 
comparable buildings.
    Section 206(b) provides that an agency may be exempt from 
this requirement if no space is available in an Energy Star 
building that meets the agency's functional needs, including 
location, or if the agency is renewing a lease for currently 
occupied space. For one of these exemptions to apply, the lease 
must provide that the space will be renovated for all energy 
efficiency improvements that would be cost effective over the 
life of the lease (or five years, if the lease is shorter than 
five years).

Sec. 207. Procurement and acquisition of alternative fuels

    This section bars agencies from entering into a contract 
for an alternative fuel for any use related to mobility (other 
than research or testing), unless the contract specifies that 
the fuel's lifecycle greenhouse gas emissions from production 
and combustion will be no greater than such emissions from the 
equivalent conventional fuel.

Sec. 208. Contracts for renewable energy for executive agencies

    This section allows GSA to enter into longer term contracts 
for renewable energy. This will help agencies acquire renewable 
energy from new renewable energy sources by making it easier 
for such projects to obtain financing.
    This section amends USC Title 40, section 501(b)(1), which 
limits GSA from entering into contracts for public utilities 
longer than 10 years. New section 501(b)(1)(C) allows GSA to 
enter into up to 20-year contracts for renewable energy. It 
defines ``renewable energy'' as that term is defined in section 
203(b) of EPAct 2005, except that this definition excludes 
energy generated from municipal solid waste.

Sec. 209. Government efficiency status reports

    This section requires agencies to report annually to OMB 
on: (1) the status of their compliance with the requirements of 
the Act; (2) their implementation of initiatives to improve 
energy efficiency, reduce energy costs and reduce emissions of 
greenhouse gases; and (3) the resulting savings to taxpayers.

Sec. 210. OMB government efficiency reports and scorecards

    This section requires OMB to annually report to Congress on 
the status of agencies' compliance with the requirements of 
this Act and make recommendations for any additional actions 
necessary to meet those requirements. OMB must also include 
agencies' compliance with these requirements in OMB's annual 
energy scorecard.

Sec. 211. Authorization of appropriations

    This section authorizes the appropriation of such sums as 
are necessary to implement this title.

Sec. 212. Judicial review

    This section strengthens citizens' ability to enforce the 
requirements of this Act in court if agencies fail to comply 
with its mandates.
    Section 212(a) provides that agency noncompliance with the 
requirements of this Act is judicially reviewable under the 
Administrative Procedure Act.
    Section 212(b) grants the U.S. Court of Appeals for the 
D.C. Circuit exclusive jurisdiction over petitions for review 
of EPA rulemakings under title I of the Act, consistent with 
the approach to jurisdiction over rulemakings with national 
effect under the Clean Air Act.
    Section 212(c) requires a plaintiff to provide an agency 
with 60 days notice of intent to sue prior to bringing an 
action under these provisions.
    Section 212(d) provides courts authority to consolidate 
actions arising under this Act that involve common questions of 
fact or common claims regarding the same alleged agency failure 
to act.
    Section 212(e) clarifies Congress' intent that any person 
should have standing to bring suit under these provisions if 
the person alleges harm attributable to an agency's failure to 
comply with the Act's requirements or if the person alleges 
that an agency failed to collect and provide information to the 
public as the Act requires. This section defines ``harm'' to 
include any effect of global warming, whether occurring or at 
risk of occurring in the future, and the incremental 
exacerbation of any such effect or risk that is associated with 
small increments of greenhouse gas emissions. It provides that 
an individual is harmed even if the effect or risk is widely 
shared. It also provides that an effect or risk of global 
warming is ``attributable'' to a federal agency's failure to 
comply with a requirement of this Act if the failure results in 
the agency emitting a larger quantity of greenhouse gases than 
it would have emitted had it complied with the requirement. 
This is because any incremental additional emissions will 
necessarily exacerbate the pace, extent, and risks of global 
warming to some degree.
    Section 212(f)(1) provides that courts may prescribe 
certain additional remedies in specified cases under these 
provisions beyond those available under the Administrative 
Procedure Act.
    Section 212(f)(2) provides that with respect to an agency's 
significant violation of any substantive requirement of the Act 
(but not information collection and reporting requirements), a 
court may award a payment from the U.S. Treasury. This payment 
is to be used in a beneficial mitigation project selected by 
the plaintiff to reduce global warming, or to be used to 
compensate the plaintiff for any impact of global warming shown 
to be suffered by the plaintiff. The total payment for all 
claims by all plaintiffs in an action under this provision is 
limited to the amount provided in 28 USC 1332(b) (currently set 
at $75,000). A court may deny a second payment to a given 
plaintiff under this section if the court determines that the 
plaintiff filed multiple separate actions that could reasonably 
have been combined into a single action. Also, a court may not 
award this payment in any given year if the cumulative payments 
already awarded by courts under this provision in that year 
total at least $1,500,000.
    Section 212(f)(3) authorizes a court to award litigation 
costs (including attorney fees and expert fees) when 
appropriate, including when the litigation contributes to the 
agency's compliance with this Act.
    Section 212(f)(4) is intended to prevent plaintiffs from 
``double-dipping'' by obtaining payments under both this 
provision and any other federal law for the same alleged 
failure by a federal agency to perform a mandatory duty under 
this Act.
    Section 212(g) bars an action in state court alleging a 
violation of this Act.
    Section 212(h) provides that only U.S. entities and 
individuals may sue under these provisions.

                       Explanation of Amendments

    The following amendments were adopted in Committee:
    Mr. Waxman offered an amendment, passed by voice vote, 
modifying the provisions in the bill related to judicial 
review. The Waxman amendment removes the specific authorization 
for citizen suits, but retains the language providing for 
judicial review under the Administrative Procedure Act. It also 
defines for purposes of APA review who is ``aggrieved'' by a 
federal agency's failure to comply with the requirements of 
this Act. With respect to the remedy provision allowing a court 
to award a monetary payment, the Waxman amendment provides that 
in any one year, courts may award no more than a total of 
$1,500,000 in monetary payments. The Waxman amendment also 
provides that the right to bring suit to enforce this Act is 
limited to U.S. individuals and entities.
    Mr. McHenry offered an amendment, passed by voice vote, to 
require agencies to report, as part of the annual government 
efficiency status reports required by the bill, on the savings 
to taxpayers resulting from the improvements mandated by the 
bill and the amendments made by the bill.
    Mr. McHenry offered and then withdrew an amendment to title 
I of the legislation providing that no agency may be required 
to take or refrain from taking any action under title I if 
doing so would adversely impact the agency's primary mission.

                        Committee Consideration

    On Tuesday, June 12, 2007, the Committee met in open 
session and favorably ordered H.R. 2635 to be reported to the 
House by a voice vote.

                             Rollcall Votes

    No rollcall votes were held.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to terms and conditions of 
employment or access to public services and accommodations. 
H.R. 2635 would reduce greenhouse gas emissions from executive 
branch agencies. The bill applies to the legislative branch in 
that it would establish a pilot program to allow executive 
agencies and legislative branch offices to purchase qualified 
greenhouse gas offsets. The bill does not relate to employment 
or access to public services and accommodations.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of Rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report, including the need for federal agencies to reduce 
greenhouse gas emissions to help slow global warming.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are reflected in the descriptive portions 
of this report, including requiring federal agencies to reduce 
net greenhouse gas emissions to zero by 2050, establishing 
efficiency standards for federal buildings, establishing 
minimum emissions standards for federal fleet vehicles, and 
strengthening requirements for executive branch procurement of 
energy efficient products.

                   Constitutional Authority Statement

    Under clause 3(d)(1) of rule XIII of the Rules of the House 
of Representatives, the Committee must include a statement 
citing the specific powers granted to Congress to enact the law 
proposed by H.R. 2635. Article I, Section 8, Clause 18 of the 
Constitution of the United States grants the Congress the power 
to enact this law.

                     Federal Advisory Committee Act

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of 5 U.S.C. App., Section 5(b).

                      Unfunded Mandates Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement on 
whether the provisions of the report include unfunded mandates. 
In compliance with this requirement the Committee has received 
a letter from the Congressional Budget Office included herein.

                         Earmark Identification

    H.R. 2635 does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(d), 9(e), or 9(f) of rule XXI.

                           Committee Estimate

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 2635. However, clause 3(d)(3)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause 3(c)(3) of rule XIII of the Rules of 
the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for H.R. 2635 from the Director of 
the Congressional Budget Office:

                                                      June 28, 2007
Hon. Henry A. Waxman,
Chairman, Committee on Oversight and Government Reform,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2635, the Carbon-
Neutral Government Act of 2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                           Peter R. Orszag.
    Enclosure.

H.R. 2635--Carbon-Neutral Government Act of 2007

    Summary: H.R. 2635 would establish targets for greenhouse 
gas reduction and standards for energy efficiency for the 
federal government. Starting in 2010, the bill would require 
federal agencies to reduce emissions of greenhouse gases in 
order to achieve net zero emissions by 2050. In addition, the 
legislation would:
     Establish a two-year pilot program for federal 
purchases of greenhouse gas offsets (as specified in the bill) 
and renewable energy certificates;
     Require agencies to purchase low greenhouse gas-
emitting vehicles;
     Require energy-efficiency standards for new (and 
renovated) federal buildings;
     Permit individuals to sue the federal government 
for damages (of up to $1.5 million per year) caused by global 
warming; and
     Authorize the Environmental Protection Agency 
(EPA) to establish a carbon cap-and-trade program for use by 
federal agencies.
    CBO estimates that enacting this legislation would increase 
direct spending by $20 million in 2008, by $340 million over 
the 2008-2012 period, and by $840 million over the 2008-2017 
period, mostly for the cost of entering into contractual 
commitments to acquire renewable forms of energy and to achieve 
reductions in energy use. In addition, we estimate that 
implementing the bill would increase the federal government's 
operating costs subject to appropriation by $178 million in 
2008 and $1.3 billion over the 2008-2012 period, mostly to 
purchase low greenhouse gas-emitting vehicles and to 
participate in the pilot program for acquiring qualified 
greenhouse gas offsets.
    H.R. 2635 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 2635 is shown in the following table. 
The costs of this legislation fall within nearly all budget 
functions because the bill would affect all executive and 
legislative branch agencies.

            TABLE 1.--ESTIMATED BUDGETARY IMPACT OF H.R. 2635
------------------------------------------------------------------------
                                      By fiscal year, in millions of
                                                 dollars--
                                 ---------------------------------------
                                   2008    2009    2010    2011    2012
------------------------------------------------------------------------
                     CHANGES IN DIRECT SPENDING \1\Estimated Budget Authority......      40      60      80     100     100
Estimated Outlays...............      20      40      80     100     100              CHANGES IN SPENDING SUBJECT TO APPROPRIATIONEstimated Authorization Level...     180     298     295     263     336
Estimated Outlays...............     178     296     295     263    336
------------------------------------------------------------------------
\1\ Enacting H.R. 2635 also would increase direct spending by an
  estimated $100 million per year from 2013 through 2017. Changes in
  direct spending through 2017 are detailed in Table 2.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
2635 will be enacted before the start of 2008, that the 
necessary funds will be provided for each year, and that 
spending will follow historical patterns for ongoing and 
similar initiatives. CBO estimates that enacting H.R. 2635 
would increase direct spending by $20 million in 2008 and $840 
million over the 2008-2017 period. In addition, we estimate 
that implementing the bill would increase discretionary 
spending by $178 million in 2008 and $1.3 billion over the 
2008-2012 period.

Background

    H.R. 2635 would establish targets for reducing the federal 
government's emissions of greenhouse gases.
    Greenhouse Gases. The federal government's emissions of 
greenhouse gases--primarily carbon dioxide, but also methane, 
nitrous oxide, and other chemicals--are the result of a variety 
of processes, including the combustion of fossil fuels, 
industrial activities, and natural processes. Most of the 
carbon dioxide emissions in the United States result from the 
combustion of fossil fuels. There is currently no requirement 
for the federal government to specifically track or reduce its 
greenhouse gas emissions and no reliable comprehensive data 
base of direct and indirect greenhouse gas emissions that 
result from the government's operations. For this estimate, CBO 
estimated the federal government's greenhouse gas emissions 
based on the carbon dioxide coefficients of the various fuels 
consumed. The government emits at least 100 million metric tons 
of carbon dioxide annually through the consumption of fossil 
fuels.
    H.R. 2635 would require agencies to inventory and reduce 
all greenhouse gas emissions, including direct emissions (e.g., 
energy usage in buildings and vehicles) as well as indirect 
emissions (e.g., emissions from the production of energy, 
travel costs, and contractor-related activities). Limited 
information is available on the greenhouse gas emissions of the 
federal government. For this estimate, CBO assumes agencies 
would reduce current energy consumption and purchase qualified 
greenhouse gas offsets to achieve the required 2 percent annual 
reduction in carbon dioxide emissions starting in 2011.
    Methods of Compliance. Under the bill, the federal 
government could lower its energy use or purchase qualified 
greenhouse gas offsets or renewable energy certificates or a 
combination of those approaches to reduce its greenhouse gas 
emissions.
    Energy Conservation Investments. Methods of lowering the 
federal government's energy use could range from inexpensive 
education and outreach campaigns to encourage employees and 
agencies to curtail their energy use, to more costly 
investments in energy conservation improvements to buildings or 
in energy-efficient equipment and vehicles. Agencies typically 
make energy conservation investments using appropriated funds 
or by entering into energy savings performance contracts 
(ESPCs).
    Greenhouse Gas Offsets. Under the bill, greenhouse gas 
offsets would provide a verifiable, enforceable, and permanent 
reduction of greenhouse gas emissions through a reduction in 
emissions or the sequestration (that is, the removal) of 
greenhouse gases (for example, by the permanent storage of 
carbon dioxide emissions). Such reductions in emissions or 
increases in the sequestration of greenhouse gas could be 
achieved by entities other than the federal government--for 
example, by modifications in energy use to reduce carbon 
emissions (such as switching from coal to natural gas) or 
changes in the management of forest lands to increase the 
sequestration of carbon. Those entities could then sell the 
reductions in greenhouse gases that they have achieved to 
others, such as the federal government, that are required to 
reduce emissions.
    The Federal Government's Energy Use and Carbon Dioxide 
Emissions. The federal government is the largest single 
consumer of energy in the United States. According to the 
Department of Energy (DOE), the federal government accounts for 
about 2 percent of the total energy consumed in the United 
States. When measured in terms of energy delivered (net of 
losses in the generation of electricity), the government used 
about 1.1 quadrillion British thermal units (Btu) or quads of 
energy at a cost of $14.5 billion in 2005. Federal buildings 
accounted for 35 percent of the government's energy use, 
vehicles and equipment used about 60 percent, and the remainder 
was used in various industrial processes and support 
facilities. Based on the type of energy used, CBO and others 
have estimated that the federal government's activities--from 
heating and cooling office buildings to operating fighter 
jets--produce at least 100 million metric tons of carbon 
dioxide annually.
    Reducing and Offsetting Carbon Dioxide Emissions. CBO 
expects that 20 percent of the reduction in greenhouse gas 
emissions required of the federal government under H.R. 2635 
before 2017 would stem from reducing energy use. We expect that 
most emissions reduction under the bill in the initial years--
80 percent--would be achieved by purchasing greenhouse gas 
offsets. That estimate reflects the fact that the energy 
conservation potential of existing federal buildings is 
limited--not all of the reduction in greenhouse gas emissions 
required under H.R. 2635 could be obtained by making federal 
buildings more energy efficient. In addition, most federal 
energy use is related to vehicle and equipment operation by the 
Department of Defense and other agencies for purposes that are 
not likely to be significantly reduced in the next few years. 
Thus, the purchase of greenhouse gas offsets is the compliance 
strategy likely to be most widely adopted by federal agencies 
for the first several years following enactment of the 
legislation.

Direct spending

    CBO expects that two provisions of H.R. 2635 would affect 
direct spending; the estimated cost of those provisions are 
shown in Table 2. First, the bill would require federal 
agencies to reduce their greenhouse gas emissions by at least 2 
percent annually to reach net zero emissions by 2050. It also 
would permit individuals to sue the governmentfor its failure 
to reduce those emissions. CBO estimates that enacting the bill would 
increase direct spending by $20 million in 2008, $340 million over the 
2008 092012 period, and $840 million over the 2008-2017 period, for the 
cost of entering into long-term contracts to achieve reductions in 
energy use. Those contracts are known as energy savings performance 
contracts. ESPCs allow agencies to acquire energy-efficiency 
investments and agree to pay private contractors for the cost of those 
investments over several years using the avoided energy costs due to 
the investment.

                                                TABLE 2.--ESTIMATED DIRECT SPENDING EFFECTS OF H.R. 2635
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                       By fiscal year, in millions of dollars--
                                                             -------------------------------------------------------------------------------------------
                                                               2008   2009   2010   2011   2012   2013   2014   2015   2016   2017  2008-2012  2008-2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               CHANGES IN DIRECT SPENDINGEstimated Budget Authority..................................     40     60     80    100    100    100    100    100    100    100       380        880
Estimated Outlays...........................................     20     40     80    100    100    100    100    100    100    100       340        840
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Energy Savings Performance Contracts. Section 102 would 
require federal agencies to reduce their greenhouse gas 
emissions by freezing emissions in 2010 and then working to 
steadily reduce net emissions by at least 2 percent a year to 
achieve net zero greenhouse gas emissions by 2050.
    The obligation to make payments under ESPCs is incurred 
when the government signs a contract. Under current law, 
agencies can use such contracts to acquire new energy-efficient 
equipment and pay for it over a period of several years without 
an appropriation for the full amount of the purchase price. 
Thus, consistent with government accounting principles, CBO has 
determined that the budget should reflect that commitment as 
new obligations at the time that a contract is signed and that 
the authority to enter into those contracts without budget 
authority for the full amount of the purchase price constitutes 
direct spending.
    CBO examined information on past energy conservation 
investments made by the federal government to estimate the cost 
of reducing energy use, and thereby reducing carbon dioxide 
emissions. Based on the cost of energy conservation investments 
made by federal agencies over the past decade, and the 
estimated energy savings achieved by those investments, CBO 
estimates that lowering greenhouse gas emissions through energy 
conservation investments in federal buildings using ESPCs would 
cost $20 million in 2008, $340 million over the 2008-2012 
period, and $840 million over the 2008-2017 period. We estimate 
that this level of energy conservation investment would fulfill 
about 20 percent of the greenhouse gas reduction goal under 
H.R. 2635 over the 2011-2017 period.
    Judicial Review. Section 211 would permit individuals to 
sue the federal government in the United States Court of 
Appeals for the District of Columbia Circuit for failure to 
reduce its greenhouse gas emissions according to the schedule 
outlined in H.R. 2635. Under the bill, if plaintiffs prevailed 
in such lawsuits, payment would be made from the Treasury for 
mitigation projects as recommended by the plaintiff. Under H.R. 
2635, such payments could not exceed a maximum of $1.5 million 
annually. CBO expects that agencies would be able to comply 
with the goals of the legislation over the 2008-2017 period, 
and it is unlikely that such damages would be paid from the 
Treasury.

Spending subject to appropriation

    CBO estimates that implementing H.R. 2635 would have 
discretionary costs of $178 million in 2008 and $1.3 billion 
over the 2008-2012 period, primarily for the purchase of low 
greenhouse gas-emitting vehicles and for participation in the 
pilot program for qualified greenhouse gas offsets (see Table 
3).
    Pilot Program for Purchase of Offsets and Certificates. 
Section 103 would authorize the appropriation of one one-
hundreth of one percent of the discretionary funds made 
available to the executive and legislative branches of the 
federal government in fiscal years 2009 and 2010 to establish a 
two-year pilot program to purchase greenhouse gas emission 
offsets and renewable energy certificates. Renewable energy 
certifications are the rights to the environmental benefits 
from generating electricity from renewable energy sources. 
Since discretionary funding is likely to total in the vicinity 
of $1 trillion for each of the next few years, CBO estimates 
that this provision would cost about $100 million in each of 
fiscal years 2009 and 2010. (The precise amount of this 
authorization would depend on the overall growth in 
discretionary appropriations over the next few years.) CBO 
expects that this pilot program would help prepare agencies to 
develop strategies to reduce greenhouse gas emissions starting 
in 2010.

  TABLE 3.--ESTIMATED SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 2635
------------------------------------------------------------------------
                                      By fiscal year, in millions of
                                                 dollars--
                                 ---------------------------------------
                                   2008    2009    2010    2011    2012
------------------------------------------------------------------------
              CHANGES IN SPENDING SUBJECT TO APPROPRIATIONPilot Program for Purchase of
 Offsets and Certificates:
    Estimated Authorization            0     100     100       0       0
     Level......................
    Estimated Outlays...........       0     100     100       0       0
Greenhouse Gas Reductions:
    Estimated Authorization            0       0       0      60     120
     Level......................
    Estimated Outlays...........       0       0       0      60     120
Federal Vehicle Fleets:
    Estimated Authorization          135     138     140     143     146
     Level......................
    Estimated Outlays...........     135     138     140     143     146
Metering:
    Estimated Authorization           20      20      20      20      20
     Level......................
    Estimated Outlays...........      20      20      20      20      20
Other Provisions:
    Estimated Authorization           10      20      30      40      50
     Level......................
    Estimated Outlays...........       8      18      30      40      50
Other Reports:
    Estimated Authorization           15      20       5       0       0
     Level......................
    Estimated Outlays...........      15      20       5       0       0
Total Changes:
    Estimated Authorization          180     298     295     263     336
     Level......................
    Estimated Outlays...........     178     296     295     263     336
------------------------------------------------------------------------

    Greenhouse Gas Reductions. Section 102 would require 
federal agencies to reduce their greenhouse gas emissions by 
freezing emissions in 2010 and then reducing emissions by at 
least 2 percent each year.
    In the initial years following enactment of H.R. 2635, CBO 
expects that agencies would primarily rely on the purchase of 
qualified greenhouse gas offsets and renewable energy 
certificates to achieve the required reductions in carbon 
dioxide emissions. Under the bill, such offsets could be 
purchased by an agency from other federal or nonfederal 
entities to help meet its own greenhouse gas reduction 
requirements. Offset projects might range from buying credits 
for carbon sequestration that results from planting trees to 
financing energy-efficient upgrades at power plants in other 
cities. A recent Government Accountability Office (GAO) report 
\1\ estimates that the annual costs of such offsets range from 
$5 to $25 per ton. The market for such offsets is currently in 
its infancy, as few entities are actually required to reduce 
greenhouse gas emissions or acquire energy from renewable 
sources. If H.R. 2635 were enacted, the market for such offsets 
would become more regulated, and CBO expects that with 
significant additional demand the price of greenhouse gas 
emission offsets would rise to at least $25 per ton. CBO 
estimates that the federal government would have to purchase 
carbon reduction credits for about 2.2 million metric tons 
annually starting in 2010 to meet the goals of H.R. 2635. We 
estimate that those offsets would cost $60 million in 2011 and 
$179 million over the 2011-2012 period, assuming the 
appropriation of the necessary amounts.
---------------------------------------------------------------------------
    \1\ Government Accountability Office, Legislative Branch Energy 
Audits Are Key to Strategy for Reducing Greenhouse Gas Emissions, GAO-
07-516 (April 2007).
---------------------------------------------------------------------------
    Federal Vehicle Fleets. Section 201 would require federal 
agencies to purchase light-duty and medium-duty passenger 
vehicles that are low greenhouse gas-emitting vehicles. EPA 
would be required each year to issue guidance identifying the 
vehicles that emit low levels of greenhouse gases. Currently, 
the General Services Administration (GSA) purchases around 
60,000 new vehicles annually for the federal government's use. 
Of that amount, approximately 45,000 vehicles are light- and 
medium-duty passenger vehicles. Although there is no current 
standard for low greenhouse gas-emitting vehicles, based on 
information from GSA and GAO, it appears that more fuel-
efficient vehicles, including hybrid and alternative-fuel 
vehicles, would probably add at least $3,000 to the price of a 
standard vehicle. Using that information, CBO estimates that 
acquiring low greenhouse gas-emitting vehicles under H.R. 2635 
would cost about $135 million in 2008 and about $700 million 
over the 2008-2012 period. The federal government also could 
realize cost savings from reduced gasoline purchases if the 
vehicles it purchases achieve greater gasoline mileage. CBO 
expects, however, that any savings in the operating costs of 
federal vehicles would not be significant over the next five 
years.
    Metering. Section 205 would require that all federal 
agencies install meters to record the use of natural gas, 
steam, chilled water, and water by October 1, 2016. Such meters 
could provide data on an hourly or daily time frame to measure 
consumption of electricity. The federal government operates in 
more than 500,000 buildings. Many federal buildings use natural 
gas, steam, chilled water, and water. Based on information from 
the General Services Administration, the Department of Defense, 
and the Department of Energy, CBO expects that about 20 percent 
of those buildings would be economical to meter, and 
implementing the metering provision would cost about $20 
million in 2008 and $100 million over the 2008-2012 period.
    Other Provisions. Other provisions of H.R. 2635 would 
require EPA to oversee and manage the greenhouse gas emissions 
of federal agencies, including establishing a carbon cap-and-
trade program for use by federal agencies. In addition, the 
legislation would add significant new reporting requirements by 
federal agencies on their greenhouse gas emissions and energy 
use. Based on information from agencies and the cost of similar 
requirements, CBO estimates that implementing those provisions 
would cost $8 million in 2008 and about $150 million over the 
2008-2012 period.
    Other Reports. Section 102 would require the Forest 
Service, the Bureau of Land Management, the National Park 
Service, and the United States Fish and Wildlife Service to 
conduct studies to identify management strategies to enhance 
the potential for sequestration of greenhouse gases on federal 
lands and to implement programs on selected sites demonstrating 
sequestration strategies. Carbon sequestration is the process 
by which carbon dioxide is removed from the atmosphere; 
forests, oceans, and soils are natural carbon sinks (areas that 
remove carbon from the atmosphere).
    The studies would be completed within two years of 
enactment, and the projects would be implemented the following 
year. Based on information provided by the agencies, CBO 
estimates that these activities would cost $15 million in 2008 
and $40 million over the 2008-2010 period.
    Intergovernmental and private-sector impact: H.R. 2635 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate prepared by: Federal Costs; Matthew Pickford, 
Robert G. Shackleton, and David Reynolds; Impact on State, 
Local, and Tribal Governments: Elizabeth Cove; Impact on the 
Private-Sector: Amy Petz.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                       ENERGY POLICY ACT OF 1992



           *       *       *       *       *       *       *
TITLE III--ALTERNATIVE FUELS--GENERAL

           *       *       *       *       *       *       *


SEC. 303. MINIMUM FEDERAL FLEET REQUIREMENT.

  (a) * * *

           *       *       *       *       *       *       *

  (f) Vehicle Emission Requirements.--
          (1) Prohibition.--No Federal agency shall acquire a 
        light duty motor vehicle or medium duty passenger 
        vehicle that is not a low greenhouse gas emitting 
        vehicle.
          (2) Guidance.--Each year, the Administrator of the 
        Environmental Protection Agency shall issue guidance 
        identifying the makes and model numbers of vehicles 
        that are low greenhouse gas emitting vehicles. In 
        identifying such vehicles, the Administrator shall take 
        into account the most stringent standards for vehicle 
        greenhouse gas emissions applicable to and enforceable 
        against motor vehicle manufacturers for vehicles sold 
        anywhere in the United States. The Administrator shall 
        not identify any vehicle as a low greenhouse gas 
        emitting vehicle if the vehicle emits greenhouse gases 
        at a higher rate than such standards allow for the 
        manufacturer's fleet average grams per mile of carbon 
        dioxide-equivalent emissions for that class of vehicle, 
        taking into account any emissions allowances and 
        adjustment factors such standards provide.
          (3) Definition.--For purposes of this subsection, the 
        term ``medium duty passenger vehicle'' has the meaning 
        given that term section 523.2 of title 49 of the Code 
        of Federal Regulations.
  [(f)] (g) Authorization of Appropriations.--There are 
authorized to be appropriated for carrying out this section, 
such sums as may be necessary for fiscal years 1993 through 
1998, to remain available until expended.

           *       *       *       *       *       *       *

                              ----------                              


                NATIONAL ENERGY CONSERVATION POLICY ACT



           *       *       *       *       *       *       *
TITLE V--FEDERAL ENERGY INITIATIVE

           *       *       *       *       *       *       *


PART 3--FEDERAL ENERGY MANAGEMENT

           *       *       *       *       *       *       *


SEC. 543. ENERGY MANAGEMENT REQUIREMENTS.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Metering of Energy Use.--
          (1) Deadline.--By October 1, 2012, in accordance with 
        guidelines established by the Secretary under paragraph 
        (2), all Federal buildings shall, for the purposes of 
        efficient use of energy and reduction in the cost of 
        electricity used in such buildings, be metered. Each 
        agency shall use, to the maximum extent practicable, 
        advanced meters or advanced metering devices that 
        provide data at least daily and that measure at least 
        hourly consumption of electricity in the Federal 
        buildings of the agency. By October 1, 2016, each 
        agency shall also provide for equivalent metering of 
        natural gas, steam, chilled water, and water, in 
        accordance with guidelines established by the Secretary 
        under paragraph (2). Such data shall be incorporated 
        into existing Federal energy tracking systems and made 
        available to Federal facility managers.

           *       *       *       *       *       *       *

  (f) Energy Performance Benchmarking.--
          (1) Requirements.--Each Federal agency shall, with 
        respect to each of its Federal buildings with greater 
        than 40,000 square feet of space or greater than 
        $75,000 per year in energy costs, annually benchmark 
        the energy efficiency performance of the building and, 
        where feasible, rate that performance compared to 
        similar buildings.
          (2) Benchmarking and rating tool.--A Federal agency 
        shall use the Energy Star Portfolio Manager Buildings 
        Benchmark Tool in carrying out paragraph (1). If the 
        building is a type of building for which that tool does 
        not allow rating the building's comparative 
        performance, and the Federal Energy Management Program 
        has identified an appropriate tool for rating the 
        building's comparative performance, the agency may use 
        such tool to benchmark and rate the building's 
        performance.
          (3) Use of information to enhance building 
        management.--The Federal facilities manager for each 
        building subject to the requirements in paragraph (1) 
        shall use the benchmark performance, rating, and annual 
        energy costs to identify and evaluate opportunities for 
        improving the building's energy efficiency performance 
        and reducing costs.
          (4) Public disclosure.--Each Federal agency shall 
        post the benchmarking information generated under this 
        subsection, along with each building's annual energy 
        use per square foot and energy costs, on the agency's 
        website. The agency shall update such information each 
        year, and shall include in such reporting previous 
        years' information to allow changes in building 
        performance to be tracked over time.
  (g) Recommissioning and Diagnostic Energy Audit.--
          (1) Requirement.--Each Federal agency shall each year 
        recommission or retrocommission, as applicable, and 
        conduct a diagnostic energy audit with respect to, 
        approximately 20 percent of its Federal buildings with 
        greater than 40,000 square feet of space or greater 
        than $75,000 per year in energy costs, so that all such 
        buildings are recommissioned or retrocommissioned, as 
        applicable, and audited at least once every 5 years.
          (2) Use of information to enhance building 
        management.--The Federal facilities manager for each 
        building and the agency official responsible for 
        facilities management shall use the information 
        produced from the energy audits under paragraph (1) as 
        a management tool for prioritizing capital expenditures 
        for maintenance and building upgrades and allocating 
        such expenditures within a facility and across all of 
        the agency's facilities, as applicable.
  (h) Large Capital Energy Investments.--Each Federal agency 
shall ensure that any large capital energy investment in an 
existing building that is not a major renovation but involves 
replacement of installed equipment, such as heating and cooling 
systems, or involves renovation, rehabilitation, expansion, or 
remodeling of existing space, employs the most energy efficient 
designs, systems, equipment, and controls that are life-cycle 
cost effective. Not later than 6 months after the date of 
enactment of the Carbon-Neutral Government Act of 2007, each 
Federal agency shall develop a process for reviewing each such 
large capital energy investment decision to ensure that the 
requirement of this subsection is met, and shall report to the 
Office of Management and Budget on the process established. 
This process shall incorporate the information produced under 
subsections (f) and (g). Not later than one year after the date 
of enactment of the Carbon-Neutral Government Act of 2007, the 
Office of Management and Budget shall evaluate and report to 
Congress on each agency's compliance with this subsection.

           *       *       *       *       *       *       *


SEC. 553. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

  (a) * * *
  (b) Procurement of Energy Efficient Products.--
          (1) Requirement.--To meet the requirements of an 
        agency for an energy consuming product in a product 
        category covered by the Energy Star program or the 
        Federal Energy Management Program for designated 
        products, the head of the agency shall, except as 
        provided in paragraph (2), procure--
                  (A)  * * *

           *       *       *       *       *       *       *

          (2) Exceptions.--The head of an agency is not 
        required to procure an Energy Star product or FEMP 
        designated product under paragraph (1) if the head of 
        the agency finds [in writing that--
                  [(A) an Energy Star] in writing that an 
                Energy Star product or FEMP designated product 
                is not cost-effective over the life of the 
                product taking energy cost savings into 
                [account; or
                  [(B) no Energy Star product or FEMP 
                designated product is reasonably available that 
                meets the functional requirements of the 
                agency] account.

           *       *       *       *       *       *       *

  (c) Listing of Energy Efficient Products in Federal 
Catalogs.--Energy Star products and FEMP designated products 
shall be clearly identified and prominently displayed in any 
inventory or listing of products by the General Services 
Administration or the Defense Logistics Agency. The General 
Services Administration or the Defense Logistics Agency shall 
list in their catalogues, represent as available, and supply 
only Energy Star products or FEMP designated products for all 
product categories covered by the Energy Star program or the 
Federal Energy Management Program, except in cases [where the 
agency] where the head of the agency ordering a product 
specifies in [writing that no Energy Star product or FEMP 
designated product is available to meet the buyer's functional 
requirements, or] writing that no Energy Star product or FEMP 
designated product is cost-effective for the intended 
application over the life of the product, taking energy cost 
savings into account.

           *       *       *       *       *       *       *

                              ----------                              


                 ENERGY CONSERVATION AND PRODUCTION ACT



           *       *       *       *       *       *       *
TITLE III--ENERGY CONSERVATION STANDARDS FOR NEW BUILDINGS

           *       *       *       *       *       *       *


                              DEFINITIONS

  Sec. 303. As used in this title:
          (1) * * *

           *       *       *       *       *       *       *

          (6) The term ``Federal building'' means any building 
        to be constructed by, or for the use of, any Federal 
        agency [which is not legally subject to State or local 
        building codes or similar requirements.]. Such term 
        shall include buildings built for the purpose of being 
        leased by a Federal agency, and privatized military 
        housing.

           *       *       *       *       *       *       *

          (17) The term ``major renovation'' means the 
        renovation of a major component or substantial 
        structural part of a building that materially increases 
        the value of the building, substantially prolongs the 
        useful life of the building, or adapts the building to 
        a new or different use.

           *       *       *       *       *       *       *


SEC. 305. FEDERAL BUILDING ENERGY EFFICIENCY STANDARDS.

  (a)(1) * * *

           *       *       *       *       *       *       *

  (3)(A) * * *

           *       *       *       *       *       *       *

  (D) Not later than 1 year after the date of enactment of the 
Carbon-Neutral Government Act of 2007, the Secretary shall 
establish, by rule, revised Federal building energy efficiency 
performance standards that require that:
          (i) For new Federal buildings and Federal buildings 
        undergoing major renovations:
                  (I) The buildings shall be designed so that 
                the fossil fuel-generated energy consumption of 
                the buildings is reduced, as compared with such 
                energy consumption by a similar building in 
                fiscal year 2003 (as measured by Commercial 
                Buildings Energy Consumption Survey or 
                Residential Energy Consumption Survey data from 
                the Energy Information Agency), by the 
                percentage specified in the following table:

Fiscal Year                                         Percentage Reduction
    2010......................................................       60 
    2015......................................................       70 
    2020......................................................       80 
    2025......................................................       90 
    2030......................................................      100.
                  (II) Sustainable design principles shall be 
                applied to the siting, design, and construction 
                of such buildings. For building types for which 
                the United States Green Building Council 
                Leadership in Energy and Environmental Design 
                (LEED) certification for New Construction and 
                Major Renovation is applicable, such buildings 
                shall be designed to meet, at a minimum, the 
                LEED silver level standard (or any successor 
                standard thereto), or if any additional capital 
                cost is projected to be recoverable through 
                energy and other operational cost savings 
                within 10 years, the LEED gold level standard 
                (or any successor standard thereto).
          (ii) In addition to any use of water conservation 
        technologies otherwise required by this section, water 
        conservation technologies shall be applied to the 
        extent that the technologies are life-cycle cost-
        effective.

           *       *       *       *       *       *       *

                              ----------                              


                      TITLE 40, UNITED STATES CODE



           *       *       *       *       *       *       *
SUBTITLE I--FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES

           *       *       *       *       *       *       *


CHAPTER 5--PROPERTY MANAGEMENT

           *       *       *       *       *       *       *


SUBCHAPTER I--PROCUREMENT AND WAREHOUSING

           *       *       *       *       *       *       *


Sec. 501. Services for executive agencies

  (a) * * *
  (b) Procurement and Supply.--
          (1) Functions.--
                  (A) * * *
                  (B) Public utility contracts.--[A contract] 
                Except as provided in subparagraph (C), a 
                contract for public utility services may be 
                made for a period of not more than 10 years.
                  (C) Renewable energy contracts.--A contract 
                for renewable energy may be made for a period 
                of not more than 20 years. For the purposes of 
                this subparagraph, the term ``renewable 
                energy'' has the meaning given that term in 
                section 203(b) of the Energy Policy Act of 2005 
                (42 U.S.C. 15852(b)(2)), except that energy 
                generated from municipal solid waste shall not 
                be considered renewable energy.

           *       *       *       *       *       *       *


                            ADDITIONAL VIEWS

    H.R. 2635, the Carbon-Neutral Government Act of 2007, is a 
bold effort to put the Federal Govenment in a leadership 
position in mitigating the build up of carbon dioxide in our 
atmosphere. We agree with Chairman Waxman that the Federal 
Government must be proactive and take an aggressive leadership 
role in this effort to mitigate the harmful effects of climate 
change.
    While H.R. 2635 was ultimately agreed to by unanimous 
consent, several Members of the Committee expressed 
reservations about the bill because of the ``judicial review'' 
provisions. Several Members of the Committee simply preferred 
these provisions be stricken from the bill. In response to 
these concerns, Chairman Waxman engaged in an earnest dialogue 
with us to address these concerns.
    While we wholeheartedly acknowledge that through this 
collaborative process the ``judicial review'' provisions have 
been improved in scope and application and other significant 
safeguards have been put in place to protect against strategic 
behavior on the part of plaintiff's attorneys, some Members 
remain unenthusiastic about including the revised provisions.
    We know there will be further study and consideration of 
these provisions--particularly by the Committee on the 
Judiciary--in light of the potential burden the bill could 
place on the Federal judicial system, the ``standing'' issues 
involved, and the potential precedent setting nature of the 
legislation. We welcome the necessary further review and debate 
by the Judiciary Committee (and others as needed) on the issues 
raised by this bill.

                                   Tom Davis,
                                   Darrell Issa,
                                   Brian Bilbray,
                                   Patrick McHenry.