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110th Congress                                            Rept. 110-304
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================



 
               ENERGY EFFICIENCY IMPROVEMENT ACT OF 2007

                                _______
                                

                 August 3, 2007.--Ordered to be printed

                                _______
                                

 Mr. Dingell, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 3236]

  The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 3236) to promote greater energy efficiency, 
having considered the same, report favorably thereon without 
amendment and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     5
Subcommittee Consideration.......................................     5
Committee Consideration..........................................     6
Committee Votes..................................................     6
Committee Oversight Findings.....................................    13
Statement of General Performance Goals and Objectives............    13
New Budget Authority, Entitlement Authority, and Tax Expenditures    13
Earmarks and Tax and Tariff Benefits.............................    13
Committee Cost Estimate..........................................    13
Congressional Budget Office Estimate.............................    13
Federal Mandates Statement.......................................    13
Advisory Committee Statement.....................................    13
Constitutional Authority Statement...............................    14
Applicability to Legislative Branch..............................    14
Section-by-Section Analysis of the Legislation...................    14
Changes in Existing Law Made by the Bill, as Reported............    19
Dissenting Views.................................................    67

                          Purpose and Summary

    The purpose of H.R. 3236 is to encourage greater energy 
efficiency throughout the U.S. economy. The bill sets forth 
standards and policies intended to use energy more efficiently 
to meet Americans' growing demand for goods and services. 
Separate subtitles focus on increasing the energy efficiency 
achieved by Americans in virtually all stationary energy 
applications: in appliances, in electric lighting, in new 
homes, in offices and commercial establishments, in Federal 
buildings, in industries, and in schools, hospitals, 
universities, and other public institutions.
    By doing so, the legislation will both reduce our reliance 
on fossil fuels and reduce emissions of greenhouse gases and 
pollutants in a cost-effective manner. Thus the legislation 
helps mitigate environmental problems and limit the economic 
impact of higher energy costs, and represents an important step 
in addressing global climate change.

                  Background and Need for Legislation

    The initial group of provisions in Subtitle A concern 
appliance efficiency. In Sections 101, 102, 103, 107, 114, and 
115, the legislation adopts agreements reached between 
manufacturers concerned and appliance efficiency advocates. 
Enacting these directly into law avoids the need for long and 
potentially contentious Department of Energy (DOE) rulemaking 
processes that might not reach results with similar efficiency 
gains or an equal degree of consensus. A second group of 
provisions, including Sections 104, 105, 106, 108, 109, 110, 
and 111, shortens, clarifies, directs or simplifies the process 
by which the DOE sets such standards in rulemaking processes 
conducted pursuant to the Energy Policy and Conservation Act of 
1975. The goal is to have DOE to set appliance efficiency 
standards on a timely basis, to gear those standards to 
appliance market realities, to complete its current and 
meritorious efforts to make up for a backlog of missed 
deadlines, and to avoid a recurrence of the many delays and 
failures to meet deadlines that have plagued the program since 
its inception.
    Subtitle B contains provisions relating to lighting 
efficiency. Electric lights consume much of the nation's 
electricity output, but use that power with relatively poor 
efficiency. The light offered by a typical incandescent light 
bulb represents less than ten percent of the energy required to 
make the electricity consumed by that bulb. New technologies 
promise dramatic improvements in lighting efficiency, but face 
issues of how quickly they can be available and how fully and 
satisfactorily they can substitute for current inefficient 
lamps. The purpose of this subtitle is to accelerate progress 
toward more efficient lighting and provide Federal leadership 
and guidance. Two of the provisions of this subtitle--Sections 
121 and 122--adopt consensus policy agreements achieved between 
lighting manufacturers and efficiency advocates to set forth 
standards that can be achieved on an agreed timeline. H.R. 3236 
requires the Federal government to take a leading role in 
improving lighting efficiency in its own operations.
    Subtitle C addresses the energy efficiency of residential 
buildings. This Nation's stock of existing buildings represents 
a large proportion of both energy consumption and greenhouse 
gas emissions, consuming much of the national electricity and 
natural gas production for lighting, appliances, and space 
conditioning. It is much more cost-effective to construct a 
building with high energy efficiency than to retrofit it later 
to the same standards. Yet many new buildings are designed and 
built at standards for energy consumption much lower than would 
be cost-effective over their useful lives, perpetuating 
relatively poor energy performance. Building codes set minimum 
standards. They are typically established at State and local 
levels by a consensus process of builders and code officials 
that takes good account of safety and construction practices, 
but seldom reflects adequately the cost of energy to building 
occupants over time. This subtitle provides Federal incentives 
updating the energy-efficiency of State and local building 
codes, and sets goals for further improvements. It also 
requires DOE to establish cost-effective energy-efficiency 
standards for manufactured housing, provides for 
reauthorization of the Weatherization Assistance Program that 
supports improved energy efficiency of low-income housing, and 
expands that program to include energy efficiency practices 
beyond insulation.
    Subtitle D requires the Federal government to assume 
leadership of a major effort to assure that the nation's stock 
of commercial buildings, including the Federal government's own 
thousands of buildings, will increasingly meet high standards 
as ``Green'' buildings and eventually achieve the higher goal 
of requiring zero net energy inputs from fossil fuel sources. 
Commercial and federal buildings are major users of energy, and 
at present few are being built to minimize energy use. New 
technologies and better awareness of updates in design, 
materials, fenestration, lighting, heating, cooling, and other 
building elements and systems can dramatically improve such 
buildings, both from the perspective of energy consumption and 
its impact on the environment and its occupants. Application of 
such techniques and technologies in the Federal sector can make 
Federal buildings a model for the private sector. Both can and 
should benefit from the efforts of non-profit groups to provide 
expert guidance and ratings to recognize the best practices and 
examples. The subtitle creates a Federal office of High-
Performance Green Buildings, and commits that office to 
implement green building standards throughout the Federal 
government. The bill directs the new office to define and enter 
public-private partnerships with a consortium of stakeholder 
interests capable of achieving similar progress in the private 
sector, using public funds as leverage to encourage private 
investment. Each Federal agency must evaluate its own buildings 
for energy and water efficiency, implementing cost-effective 
measures. The purpose of this subsection is to populate the 
U.S. commercial and Federal sectors, over time, with high-
performing and environmentally superior buildings that will 
increase energy efficiency while also offering a better 
interior environment to their occupants.
    Subtitle D also authorizes DOE loan guarantees for projects 
that retrofit and renovate existing buildings to achieve high-
performance green-building standards. Often older buildings are 
candidates for significant energy efficiency improvement, but 
their owners may not be able to finance such investment without 
credit assistance. This bill would allow DOE, in appropriate 
circumstances and with appropriate protections, to offer to 
guarantee loans required to make such renovations.
    Subtitle E creates a program that will identify and recover 
wasted energy from industry and commerce in the United States, 
estimated to amount to between 60 and 90 gigawatts of 
recoverable electric power. The Environmental Protection Agency 
is directed to survey sources of energy that could be recovered 
cost effectively, qualifying such sources for incentives to 
encourage recovery. Incentives will include technical 
assistance, grants during initial years of production, and the 
ability to seek special conditions of sale from local utilities 
for any excess electric power produced, with appropriate 
regulatory approval. Such recovered energy could displace the 
need for more than 100 typical coal-fired power plants, produce 
power with no incremental fuel consumption or emissions of 
greenhouse gas, and do so in downstream locations that may 
reduce congestion on transmission systems. The purpose of this 
section is to identify and end ongoing waste of large amounts 
of energy throughout the economy where it can be captured and 
turned into electricity or useful thermal energy.
    Subtitle F provides assistance to public institutions, 
including schools, hospitals, universities, and other public 
facilities, in overcoming a key obstacle to their ability to 
engage in energy-efficient investments: the lack of up-front 
capital. It does so by creating a revolving loan-fund from 
which such institutions may borrow to invest in energy 
efficiency, paying the loans back with savings over time. Many 
promising and financially-sound investments in capital-
intensive district energy systems or combined heat and power 
systems have not been made for lack of initial capital, and the 
goal of this section is to overcome that barrier with, in the 
long run, no net outlay of Federal dollars.
    Subtitle G is intended to provide significant improvements 
and greater scope to Energy Savings Performance Contracts, 
which allow Federal agencies to enter contracts that guarantee 
energy and cost savings, with the risks and investments made by 
their private contractor counterparties for a profit only 
assured if the savings meet levels promised to the Federal 
agency. Federal agencies share in the savings achieved by 
private investment under these contracts, and Federal capital 
is not at significant risk despite an attribution of direct 
spending that ignores such future savings streams.
    Subtitle H is intended to respond to the need for financial 
counsel to DOE on ways to encourage greater private investment 
in energy efficiency. It creates an Advisory Committee on 
Energy Efficiency Financing. The failure of private actors to 
make energy efficiency investments that are cost-effective with 
short payback periods is an unfortunate reality, and may be 
overcome if the Department has a better awareness of financial 
drivers that motivate--or fail to motivate--such decisions. The 
purpose of the bill is to provide that awareness and assist DOE 
to communicate the financial realities and options that can 
promote energy efficiency throughout the economy.
    Subtitle I creates an Energy Efficiency Block Grant Program 
to provide funds to support the efforts of local governments to 
exercise their own effective leadership in achieving energy 
efficiency objectives. Many of the best opportunities for 
reducing energy consumption while achieving the same or greater 
benefits are found in the nation's cities, and local government 
can often demonstrate the awareness, the flexibility, and the 
policy precision to capture such opportunities more directly 
and effectively than broad national incentives or programs. Yet 
the resources to do so are often not available to local 
governments. In the same way that other national priorities 
have been addressed by making Federal resources available for 
local action, the national priority to achieve greater energy 
efficiency can be addressed in the same manner, and this bill 
does so. It would require localities first to present 
strategies for energy efficiency achievement, and then provide 
grants to carry out such strategies with a broad array of 
policy tools and program options.

                                Hearings

    There was one oversight hearing and one legislative hearing 
held by the Subcommittee on Energy and Air Quality, Committee 
on Energy and Commerce, in connection with the bill reported by 
the Committee.
    The Subcommittee on Energy and Air Quality held a hearing 
entitled, ``Achieving--At Long Last--Appliance Efficiency 
Standards,'' on Tuesday, May 1, 2007. The Subcommittee received 
testimony from the following witnesses: The Honorable Alexander 
A. ``Andy'' Karsner, Assistant Secretary, Energy Efficiency and 
Renewable Energy, U.S. Department of Energy; The Honorable 
Arthur H. Rosenfeld, Ph.D., Commissioner, California Energy 
Commission; Mr. Evan Gaddis, President and CEO, National 
Electrical Manufacturers Association; C. David Myers, Vice 
President, Building Efficiency, Johnson Controls, Inc. 
(President, York International); Joseph M. McGuire, President, 
Association of Home Appliance Manufacturers; Mr. Douglas 
Johnson, Senior Director, Technology Policy & International 
Affairs, Consumer Electronics Association; Andrew deLaski, 
Executive Director, Appliance Standards Awareness Project; 
Charles Harak, Esq., National Consumer Law Center.
    The Subcommittee on Energy and Air Quality held a 
legislative hearing on ``Discussion Drafts concerning Energy 
Efficiency, Smart Electricity Grid, Energy Policy Act of 2005 
Title XVII Loan Guarantees, and Standby Loans for Coal-to-
Liquids Projects,'' on Thursday, May 24, 2007. The Subcommittee 
received testimony from the following witnesses: Mr. David 
Rogers, Deputy Assistant Secretary for Energy Efficiency, 
Department of Energy; Ms. Kateri Callahan, President, Alliance 
to Save Energy; Mr. Jay Birnbaum, Vice President and General 
Counsel, Current Group, LLC; Ms. Katharine A. Fredriksen, 
Principal Deputy Assistant Secretary for Policy and 
International Affairs, U.S. Department of Energy; Mr. Don 
Maley, Vice President, Leucadia International Corporation; and 
Dr. Daniel A. Lashof, Ph.D., Science Director, Climate Center, 
Natural Resources Defense Council.

                       Subcommittee Consideration

    Prior to the introduction of H.R. 3236, its text was 
considered by the Committee's Subcommittee on Energy and Air 
Quality as a Committee Print.
    On Wednesday, June 20, 2007, the Subcommittee on Energy and 
Air Quality met in open markup session and considered the 
Committee Print to promote greater energy efficiency. The 
Committee Print was favorably forwarded to the full Committee, 
amended, by a recorded vote of 17-14. The Committee Print 
forwarded by the Subcommittee was subsequently designated 
Committee Print #1 for full Committee consideration.

                        Committee Consideration

    On Wednesday, June 27, 2007, and Thursday, June 28, 2007, 
the full Committee met in open markup session and ordered the 
Committee Print favorably reported to the House, amended, by a 
recorded vote of 27-18. On July 31, 2007, a clean bill, H.R. 
3236, was introduced with the approved language of the 
Committee Print, and was referred to the full Committee to be 
reported without further consideration.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. Mr. 
Dingell moved that the Committee report the Committee Print, 
amended, favorably to the House. The motion to report the 
Committee Print favorably to the House was agreed to by a 
recorded vote of 27 yeas and 18 nays. The following are the 
recorded votes taken on the motion and on amendments, including 
the names of those members voting for and against.


                      Committee Oversight Findings

    Regarding clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the oversight findings of the 
Committee on the bill are reflected in this report.

         Statement of General Performance Goals and Objectives

    The goals and objectives of H.R. 3236 are to improve the 
energy efficiency of appliances, lights, residential buildings, 
commercial and federal buildings, industrial facilities, public 
institutions, and the Federal government by various means, 
including setting efficiency standards, improving the process 
by which the Department of Energy sets efficiency standards, 
and updating building efficiency codes that States must 
consider.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    Regarding compliance with clause 3(c)(2) of rule XIII of 
the Rules of the House of Representatives, the Committee finds 
that H.R. 3236 would result in no new or increased budget 
authority, entitlement authority, or tax expenditures or 
revenues.

                  EARMARKS AND TAX AND TARIFF BENEFITS

    Regarding compliance with clause 9 of rule XXI of the Rules 
of the House of Representatives, H.R. 3236 does not contain 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 Cost Estimate

    The Committee will adopt as its own the cost estimate 
prepared by the Director of the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974.

                  Congressional Budget Office Estimate

    Regarding clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, a cost estimate on H.R. 3236 by the 
Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974 was not available as of the 
time of the filing of this report by the Committee.

                       Federal Mandates Statement

    The Committee will adopt as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    Regarding section 5(b) of the Federal Advisory Committee 
Act, section 189 of the bill requires the establishment of an 
advisory committee. The Committee finds that establishing the 
advisory committee is the most efficient way of carrying out 
the policies involved.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes, and in the provisions of 
Article I, section 8, clause 1, that relate to expending funds 
to provide for the general welfare of the United States.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


                    SUBTITLE A: APPLIANCE EFFICIENCY

    Section 101. Energy Standards for Home Appliances.--Adopts 
a consensus agreement developed by manufacturers and appliance 
efficiency advocates which sets new appliance efficiency 
standards for residential clothes washers, dishwashers, and 
dehumidifiers, and mandates updated standards by certain dates 
for refrigerators, refrigerator-freezers, and freezers.
    Section 102. Electric Motor Efficiency Standards.--Adopts a 
consensus agreement developed by manufacturers and energy 
efficiency advocates which sets new energy efficiency standards 
for stationary general and special purpose electric motors.
    Section 103. Residential Boilers.--Adopts a consensus 
agreement developed by manufacturers and energy efficiency 
advocates which sets new energy efficiency standards for 
residential boilers.
    Section 104. Regional Variation in Heating or Cooling 
Standards.--Authorizes the Department of Energy (DOE) to 
establish, after a detailed study of costs and benefits 
involving all stakeholders, up to three regional variations in 
energy efficiency appliance standards for non-portable heating 
or air-conditioning products and requires labeling. Any such 
regional standards are to be enforced pursuant to Sections 333 
through 335 of the Energy Policy and Conservation Act.
    Section 105. Procedure for Prescribing New or Amended 
Standards.--Repeals Section 325(p)(1) of the Energy Policy and 
Conservation Act (EPCA), which requires an advanced rulemaking 
process prior to a proposed rulemaking process.
    Section 106. Expediting Appliance Standard Rulemakings.--
Allows the DOE to move expeditiously to a final rule when 
stakeholders submit a consensus position regarding new 
appliance efficiency standards.
    Section 107. Correction of Large Air Conditioning Rule 
Issuance Constraint.--Corrects misinterpretation of the Energy 
Policy Act of 2005 (EPACT), which blocked implementation of 
final rules adopted by DOE on commercial package air-
conditioning equipment, and adopts new appliance efficiency 
standards based on such final rules.
    Section 108. Definition of Energy Conservation Standard.--
Provides that DOE may set more than one performance standard to 
prescribe minimum energy efficiency or maximum energy use for 
covered products (and may of course accept more than one as 
part of a consensus agreement), with separate provisions 
regarding covered products that use or handle water to allow 
standards that cover both water and energy where appropriate.
    Section 109. Providing Regular Schedule for Standards 
Updating, Progress Reports, and Supporting Judicial Discipline 
for Process.--Requires that DOE review appliance efficiency 
standards by 6 years after their establishment and propose new 
standards if warranted based on technical and economic factors. 
Sets a 2-year deadline for finalization of new standards. Where 
DOE determines new standards are not warranted, it must revisit 
that determination after three years. Requires DOE every six 
months to report its progress in keeping on schedule to 
establish new appliance efficiency standards and to report any 
delays or missed deadlines, sending such reports directly to 
relevant Congressional Committees, and also to the court and 
parties involved in an operative consent decree under which DOE 
is presently making up prior failures to meet such deadlines.
    Section 110. Updating Appliance Test Procedures.--Requires 
review of all appliance test procedures every seven years.
    Section 111. Furnace Fan Standard Process.--Requires DOE to 
complete a furnace fan rulemaking by July 1, 2013, that was 
permitted but not required in the Energy Policy Act of 2005 
(EPACT 2005).
    Section 112. Technical Corrections.--Makes technical 
corrections to related provisions of EPACT 2005.
    Section 113. Energy efficient standby power devices.--
Requires Federal agencies that purchase and utilize appliances 
which include external and certain internal standby power 
devices, to purchase only such products that use not more than 
1 watt in the standby mode, or the lowest wattage available for 
such a product, except where impracticable or where the 
performance of the product might thereby be compromised.
    Section 114. External Power Supply Efficiency Standards.--
Adopts consensus appliance efficiency standards for external 
power-supply devices. These are small external transformers or 
chargers that have an output of less than 250 watts and connect 
through separate plugs and wires to provide power to separate 
electronic or electric equipment. Such power-supply devices are 
intended to be covered even though they may support individual 
electric and electronic products that are not covered by 
Federal standards. The bill requires reviews by DOE in 2011 and 
2015 of such standards, with any updated standards effective 2 
years thereafter.
    Section 115. Standby Mode.--Establishes standard that no 
covered consumer or industrial appliance, when in standby mode, 
shall operate with more than 1 watt of electric power, unless 
infeasible or an exception is warranted for medical or defense 
reasons. Provides for testing of appliances to measure power 
consumption in standby mode.

                    SUBTITLE B: LIGHTING EFFICIENCY

    Section 121. Efficient Light Bulbs.--Adopts consensus 
agreement among manufacturers and efficiency advocates for 
general service lamps prohibiting 100-watt incandescent bulbs 
emitting less than 60 lumens per watt in 2012 and thereafter, 
and sets a schedule by which general service electric lamps 
sold must meet stated minimum energy efficiency improvement 
targets. Provides exemptions for special purpose lamps and 
conditional exceptions for other designated lamps. Provides for 
incentives, public education, labeling and sales data tracking 
system. Authorizes DOE to establish civil penalties for failure 
to comply.
    Section 122. Incandescent Reflector Lamps.--Adopts a 
consensus agreement between manufacturers and efficiency 
advocates setting minimum energy efficiency standards for 
incandescent reflector lamps and certain fluorescent lamps.
    Section 123. Use of Energy Efficient Lighting Fixtures and 
Bulbs.--Requires the Federal government to substitute energy-
efficient lighting for incandescent bulbs wherever feasible.

              SUBTITLE C: RESIDENTIAL BUILDING EFFICIENCY

    Section 131. Encouraging Stronger Building Codes.--Requires 
DOE to update the model building codes for minimum energy 
efficiency that State and local agencies must consider, with 
goal of 30 percent improvement in 2010 and 50 percent 
improvement by 2020 relative to current base codes. Provides 
incentive funding and code-inspector training to enable 
compliance by States or localities.
    Section 132. Energy Code Improvements Applicable to 
Manufactured Housing.--Requires manufactured housing to meet 
updated energy efficiency codes unless it is not cost effective 
to do so. Provides for civil penalties if requirements are not 
met.
    Section 133. Baseline Building Designs.--Allows States to 
premise energy budgets in building codes on use of appliances 
with energy efficiency greater than the Federal minimum 
standards.
    Section 134. Reauthorization of Weatherization Assistance 
Program.--Provides increased funding through 2012 for 
weatherization assistance in low-income housing, and authorizes 
Secretary to conduct pilot programs of alternate means of 
decreasing energy consumption for heating and cooling. 
Authorizes grants to weatherization agencies to expand program 
to include other energy benefits of not more than 2 percent of 
appropriated funding when funding exceeds $275 million in each 
fiscal year.

         SUBTITLE D: COMMERCIAL AND FEDERAL BUILDING EFFICIENCY

    Section 141. Definitions.--Defines, among other terms, 
``high-performance green building,'' ``life-cycle'' costs and 
assessments, and ``zero-net-energy building.''
    Section 142. High-Performance Green Buildings.--Establishes 
an Office of High-Performance Green Buildings in DOE (within 
the Office of Energy Efficiency and Renewable Energy), appoints 
a Director, and assigns duties related to high performance 
green buildings. The Director coordinates green building 
activities within the Federal government and creates and enters 
public-private partnerships to leverage private investments to 
achieve green building objectives. Establishes at least one 
Green Building Partnership Consortium of experts and 
stakeholders to participate in such partnerships with Federal 
green building efforts.
    Section 143. Zero-Net-Energy Commercial Buildings Goal.--
Provides for review and adoption of a national goal to reduce 
commercial building energy use and achieve commercial buildings 
that, through efficiency and use of renewable energy, eliminate 
net use of fossil fuels. Sets a goal that this standard will be 
met by all new commercial buildings built after 2025, by 50 
percent of existing commercial buildings by 2035 (through 
retrofit technology), and by all commercial buildings by 2050. 
Provides for various DOE initiatives, including pilot projects.
    Section 144. Public Outreach.--Provides for a public 
outreach effort to provide information on green buildings, 
including ratings, rating services, technical assistance and 
measurement tools.
    Section 145. Budget and Life-Cycle Costing and 
Contracting.--Requires the Director of the new office to 
develop and implement life-cycle budgeting and costing 
methodologies and tools for green buildings.
    Section 146. Incentives.--Requires the Director of the new 
office to identify and implement incentives through recognition 
awards and to allow agencies to retain savings achieved through 
green building practices.
    Section 147. Federal Procurement.--Requires the Director of 
the Office of Federal Procurement to modify procurement 
guidelines to employ green building materials and technologies 
and reduce environmental impacts.
    Section 148. Use of Energy and Water Efficiency Measures in 
Federal Buildings.--Requires Federal agencies to identify for 
each building the energy and water saving measures that could 
be undertaken (with 12-year-or-shorter paybacks), and within 
three years to implement and publicize such measures on the 
Internet and to develop a benchmarking system by which each 
agency's success will be scored. Requires use of highly energy-
efficient water heating equipment in Federal buildings.
    Section 149. Demonstration Project.--Requires five 
demonstration projects of green building technology at Federal 
facilities and four at universities in different regions of the 
U.S.
    Section 150. Energy Efficiency for Data Center Buildings.--
Creates an Environmental Protection Agency (EPA) program to 
assist in achieving greater efficiency in buildings housing 
data centers and server farms.
    Section 151. Authorization of Appropriations.--Authorizes 
funding for the actions required by this subtitle.
    Section 152. Study and Report on Use of Power Management 
Software.--Requires DOE and other Federal entities to study the 
use of software that reduces electricity use by computers and 
monitors when not in active use.

                     SUBTITLE E: INDUSTRIAL ENERGY

    Section 161.--Amends Energy Conservation and Policy Act 
(ECPA) to add three new sections:
    (1) Survey of Waste Industrial Energy Recovery and 
Potential Use.--Requires EPA to survey waste industrial energy 
recovery and potential use, and to create a registry of sites 
with economically feasible waste energy recovery, disqualifying 
any with use of thermal energy that would not be separately 
justifiable, or that fail to demonstrate a reasonable and 
efficient balance between useful thermal and electric energy 
output.
    (2) Incentives for Recovery, Utilization and Prevention of 
Industrial Waste Energy.--Provides grants to support waste 
energy recovery and supports access to market for any excess 
power generated from waste energy, requiring consideration of 
alternate regulatory structures to allow such market access.
    (3) Clean Energy Application Centers.--Strengthens and 
renames existing Combined Heat and Power (CHP) Application 
Centers to provide expert resources on energy efficiency, CHP, 
waste energy recovery, and energy-efficient materials usage, 
working directly with affected industries. Relocates the 
Centers to the Office of Energy Efficiency and Renewable Energy 
at DOE.

          SUBTITLE F: ENERGY EFFICIENCY OF PUBLIC INSTITUTIONS

    Sections 171-175. Energy Efficiency in Public 
Institutions.--Promotes CHP and district energy systems in 
public institutions and public school districts, and provides 
funding to help meet initial capital costs through Federal 
revolving fund loans.
    Section 176. State Energy Program Reauthorization.--
Provides funding through 2012.

           SUBTITLE G: ENERGY SAVINGS PERFORMANCE CONTRACTING

    Section 181. Definition of Energy Savings.--Revises 
definition to include renewable energy, cogeneration, and 
ability to sell power in Energy Savings Performance Contracts 
(ESPCs).
    Section 182. Financing Flexibility.--Allows use of 
appropriated funds as necessary and appropriate in ESPCs along 
with contractor funds.
    Section 183. Authority to Enter Contracts and Reports.--
Provides authority to enter contracts and replaces current 
Congressional notification requirement with an annual Federal 
Energy Management Program (FEMP) report detailing the 
termination penalty exposure of all current projects.
    Section 184. Permanent reauthorization.--Eliminates sunset 
provision of ESPC program authorization.
    Section 185. Training Federal Contracting Officers to 
Negotiate Energy Efficiency Contracts.--Requires the Federal 
Energy Management Program in DOE to train contract officers 
from various Federal agencies in energy-efficiency contracting 
practices.
    Section 186. Promoting Long-Term Energy Savings Performance 
Contracts and Verifying Savings.--Assures that ESPCs are not 
limited to less than 25 years and that the savings are measured 
and verified.

     SUBTITLE H: ADVISORY COMMITTEE ON ENERGY EFFICIENCY FINANCING

    Section 189. Advisory Committee.--Creates an expert 
committee to advise the Department of Energy on ways of 
lowering costs and increasing investments in energy efficiency.

           SUBTITLE I--ENERGY EFFICIENCY BLOCK GRANT PROGRAM

    Sections 191-193. Definitions, Establishment, and 
Allocations.--Defines eligible cities and counties to receive 
grants under the program, creates the Energy Efficiency Block 
Grant Program, and allocates funds 70 percent to local 
governments and 30 percent to States.
    Sections 194-195. Eligible Activities and Requirements.--
Provides that creation of energy efficiency strategies, goals, 
studies, audits, weatherization programs, loan funds, non-
profit organization grants, design, education programs, code 
inspection, zoning, and other programs are among eligible 
activities by local governments to be supported with grants 
made under the program. Requires that local governments first 
create strategy subject to prior approval and that State and 
Local Advisory Committee be created to guide the program.
    Section 196. Review and Evaluation.--Authorizes DOE to 
review and evaluate grant recipients and deny funding for 
failure to comply with DOE guidelines or the recipient's 
strategy.
    Section 197. Technical Assistance and Education Program.--
Requires DOE to provide technical assistance and education to 
State and local governments to spread awareness of 
opportunities for energy efficiency.
    Section 198. Authorizations.--Authorizes funding for grants 
and administration of the program.

          SUBTITLE J--GREEN BUILDINGS RETROFIT LOAN GUARANTEES

    Section 199. Green Buildings Retrofit Loan Guarantees.--
Establishes a federal loan guarantee program under which the 
Director of the Office of High Performance Green Buildings 
would guarantee loans to cover up to 80 percent of the costs to 
retrofit and renovate existing buildings to meet green building 
standards.

         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 AND CONSERVATION ACT

                            TABLE OF CONTENTS

     * * * * * * *

                 TITLE III--IMPROVING ENERGY EFFICIENCY

     * * * * * * *

                  Part E--Industrial Energy Efficiency

Sec. 371. Survey of waste industrial energy recovery and potential use.
Sec. 372. Definitions.
Sec. 373. Survey and registry.
Sec. 374. Waste Energy Recovery Incentive Grant Program.
Sec. 375. Additional incentives for recovery, utilization and prevention 
          of industrial waste energy.
Sec. 376. Clean Energy Application Centers.

           *       *       *       *       *       *       *


TITLE III--IMPROVING ENERGY EFFICIENCY

           *       *       *       *       *       *       *


 Part B--Energy Conservation Program for Consumer Products Other Than 
                              Automobiles

                              DEFINITIONS

  Sec. 321. For purposes of this part:
          (1) * * *

           *       *       *       *       *       *       *

          [(6) The term ``energy conservation standard'' 
        means--
                  [(A) a performance standard which prescribes 
                a minimum level of energy efficiency or a 
                maximum quantity of energy use, or, in the case 
                of showerheads, faucets, water closets, and 
                urinals, water use, for a covered product, 
                determined in accordance with test procedures 
                prescribed under section 323; or
                  [(B) a design requirement for the products 
                specified in paragraphs (6), (7), (8), (10), 
                (15), (16), (17), and (19) of section 322(a); 
                and
        includes any other requirements which the Secretary may 
        prescribe under section 325(r). ]
          (6) Energy conservation standard.--
                  (A) In general.--The term ``energy 
                conservation standard'' means 1 or more 
                performance standards that--
                          (i) for covered products (excluding 
                        clothes washers, dishwashers, 
                        showerheads, faucets, water closets, 
                        and urinals), prescribe a minimum level 
                        of energy efficiency or a maximum 
                        quantity of energy use, determined in 
                        accordance with test procedures 
                        prescribed under section 323;
                          (ii) for showerheads, faucets, water 
                        closets, and urinals, prescribe a 
                        minimum level of water efficiency or a 
                        maximum quantity of water use, 
                        determined in accordance with test 
                        procedures prescribed under section 
                        323; and
                          (iii) for clothes washers and 
                        dishwashers--
                                  (I) prescribe a minimum level 
                                of energy efficiency or a 
                                maximum quantity of energy use, 
                                determined in accordance with 
                                test procedures prescribed 
                                under section 323; and
                                  (II) may include a minimum 
                                level of water efficiency or a 
                                maximum quantity of water use, 
                                determined in accordance with 
                                those test procedures.
                  (B) Inclusions.--The term ``energy 
                conservation standard'' includes--
                          (i) 1 or more design requirements, if 
                        the requirements were established--
                                  (I) on or before the date of 
                                enactment of this subclause; or
                                  (II) as part of a consensus 
                                agreement under section 
                                325(p)(5); and
                          (ii) any other requirements that the 
                        Secretary may prescribe under section 
                        325(r).
                  (C) Exclusion.--The term ``energy 
                conservation standard'' does not include a 
                performance standard for a component of a 
                finished covered product, unless regulation of 
                the component is authorized or established 
                pursuant to this title.

           *       *       *       *       *       *       *

          (30)(A) * * *

           *       *       *       *       *       *       *

          (C) Except as provided in subparagraph (E), the term 
        ``incandescent lamp'' means a lamp in which light is 
        produced by a filament heated to incandescence by an 
        electric current, including only the following:
                  (i) * * *
                  (ii) Any lamp (commonly referred to as a 
                reflector lamp) which is not colored or 
                designed for rough or vibration service 
                applications, that contains an inner reflective 
                coating on the outer bulb to direct the light, 
                an R, PAR, [or similar bulb shapes (excluding 
                ER or BR)] ER, BR, BPAR, or similar bulb shapes 
                with E26 medium screw bases, a rated voltage or 
                voltage range that lies at least partially 
                within 115 and 130 volts, a diameter which 
                exceeds [2.75] 2.25 inches, and [is either--
                          [(I) a low(er) wattage reflector lamp 
                        which has a rated wattage between 40 
                        and 205 watts; or
                          [(II) a high(er) wattage reflector 
                        lamp which has a rated wattage above 
                        205 watts.] has a rated wattage that is 
                        greater than 40 watts.

           *       *       *       *       *       *       *

          (36)(A) The term ``external power supply'' means an 
        external power supply circuit that is used to convert 
        household electric current into DC current or lower-
        voltage AC current to operate a consumer product.
          (B) The term ``class A external power supply'' means 
        a device that--
                  (i) is designed to convert line voltage AC 
                input into lower voltage AC or DC output;
                  (ii) is able to convert to only one AC or DC 
                output voltage at a time;
                  (iii) is sold with, or intended to be used 
                with, a separate end-use product that 
                constitutes the primary load;
                  (iv) is contained in a separate physical 
                enclosure from the end-use product;
                  (v) is connected to the end-use product via a 
                removable or hard-wired male/female electrical 
                connection, cable, cord or other wiring; and
                  (vi) has nameplate output power less than or 
                equal to 250 watts.
          (C) The term ``class A external power supply'' does 
        not include any device that--
                  (i) requires Federal Food and Drug 
                Administration listing and approval as a 
                medical device, as described under section 513 
                of the Food, Drug, and Cosmetic Act of 1938; or
                  (ii) powers the charger of a detachable 
                battery pack or charges the battery of a 
                product that is fully or primarily motor 
                operated.
          (D) The term ``active mode'' means the mode of 
        operation when an external power supply is connected to 
        the main electricity supply and the output is connected 
        to a load.
          (E) The term ``no-load mode'' means the mode of 
        operation when an external power supply is connected to 
        the main electricity supply and the output is not 
        connected to a load.

           *       *       *       *       *       *       *

          (52) The term ``detachable battery'' means a battery 
        that is contained in a separate enclosure from the 
        product and is intended to be removed or disconnected 
        from the product for recharging.
          (53) The term ``BPAR incandescent reflector lamp'' 
        means a reflector lamp as shown in figure C78.21-278 on 
        page 32 of ANSI C78.21-2003.
          (54)(A) The term ``BR incandescent reflector lamp'' 
        means a reflector lamp that has--
                  (i) a bulged section below the major diameter 
                of the bulb and above the approximate baseline 
                of the bulb, as shown in figure 1 (RB) on page 
                7 of ANSI C79.1-1994, incorporated by reference 
                in section 430.22 of title 10, Code of Federal 
                Regulations (as in effect on the date of 
                enactment of this paragraph); and
                  (ii) a finished size and shape shown in ANSI 
                C78.21-1989, including the referenced 
                reflective characteristics in part 7 of ANSI 
                C78.21.
          (B) The term ``BR30'' refers to a BR incandescent 
        reflector lamp with a diameter of 30/8ths of an inch 
        and the term ``BR40'' refers to a BR incandescent 
        reflector lamp with a diameter of 40/8ths of an inch.
          (55)(A) The term ``ER incandescent reflector lamp'' 
        means a reflector lamp that has--
                  (i) an elliptical section below the major 
                diameter of the bulb and above the approximate 
                baseline of the bulb, as shown in figure 1 (RE) 
                on page 7 of ANSI C79.1-1994, incorporated by 
                reference in section 430.22 of title 10, Code 
                of Federal Regulations (as in effect on the 
                date of enactment of this paragraph); and
                  (ii) a finished size and shape shown in ANSI 
                C78.21-1989, incorporated by reference in 
                section 430.22 of title 10, Code of Federal 
                Regulations (as in effect on the date of 
                enactment of this paragraph).
          (B) The term ``ER30'' refers to an ER incandescent 
        reflector lamp with a diameter of 30/8ths of an inch 
        and the term ``ER40'' refers to an ER incandescent 
        reflector lamp with a diameter of 40/8ths of an inch.
          (56) The term ``R20 incandescent reflector lamp'' 
        means a reflector lamp that has a face diameter of 
        approximately 2.5 inches, as shown in figure 1(R) on 
        page 7 of ANSI C79.1-1994.

           *       *       *       *       *       *       *


                            TEST PROCEDURES

  Sec. 323. (a) * * *
  (b) Amended and New Procedures.--(1)(A) [The Secretary may 
amend test procedures with respect to any covered product if 
the Secretary determines that amended test procedures would 
more accurately or fully comply with the requirements of 
paragraph (3)] At least every 7 years the Secretary shall 
review test procedures for all covered products and shall--
          (i) amend test procedures with respect to any covered 
        product if the Secretary determines that amended test 
        procedures would more accurately or fully comply with 
        the requirements of paragraph (3); or
          (ii) publish notice in the Federal Register of any 
        determination not to amend a test procedure.

           *       *       *       *       *       *       *

  (17) Test procedures for class A external power supplies 
shall be based upon the U.S. Environmental Protection Agency's 
``Test Method for Calculating the Energy Efficiency of Single-
Voltage External AC-DC and AC-AC Power Supplies'', August 11, 
2004, provided that the test voltage specified in section 4(d) 
of such test method shall be only 115 volts, 60 Hz.
  (18) Not later than July 1, 2009, the Secretary shall issue a 
final rule establishing test procedures for standby power 
consumption for all covered products, except for products for 
which the current test procedure already measures standby power 
consumption.

           *       *       *       *       *       *       *


                          ENERGY STAR PROGRAM

  Sec. 324A. (a) * * *

           *       *       *       *       *       *       *

  (d) Deadlines.--The Secretary shall establish new qualifying 
levels--
          (1) * * *
          (2) not later than January 1, 2008, for clothes 
        washers, effective beginning [January 1, 2010] July 1, 
        2009.

                     ENERGY CONSERVATION STANDARDS

  Sec. 325. (a) * * *
  (b) Standards for Refrigerators, Refrigerator-Freezers, and 
Freezers.--(1) * * *

           *       *       *       *       *       *       *

  (4) Not later than December 31, 2010, the Secretary shall 
publish a final rule determining whether to amend the standards 
in effect for refrigerators, refrigerator-freezers, and 
freezers manufactured on or after January 1, 2014. Such rule 
shall contain such amendment, if any.

           *       *       *       *       *       *       *

  (f) Standards for Furnaces and Boilers.--(1) Furnaces (other 
than furnaces designed solely for installation in mobile homes) 
manufactured on or after January 1, 1992, shall have an annual 
fuel utilization efficiency of not less than 78 percent, 
[except that--
          [(A) boilers (other than gas steam boilers) shall 
        have an annual fuel utilization efficiency of not less 
        than 80 percent and gas steam boilers shall have an 
        annual fuel utilization efficiency of not less than 75 
        percent; and]
          [(B)] except that the Secretary shall prescribe a 
        final rule not later than January 1, 1989, establishing 
        an energy conservation standard--
                  (i)  * * *

           *       *       *       *       *       *       *

  (3) Boilers.--
          (A) In general.--Subject to subparagraph (B), boilers 
        manufactured on or after September 1, 2012, shall meet 
        the following requirements:

----------------------------------------------------------------------------------------------------------------
                                          Minimum Annual Fuel Utilization
              Boiler Type                            Efficiency                      Design Requirements
----------------------------------------------------------------------------------------------------------------
Gas Hot Water.........................  82%                                  No Constant Burning Pilot,
                                                                              Automatic Means for Adjusting
                                                                              Water Temperature
----------------------------------------------------------------------------------------------------------------
 Gas Steam............................  80%                                  No Constant Burning Pilot
----------------------------------------------------------------------------------------------------------------
Oil Hot Water.........................  84%                                  Automatic Means for Adjusting
                                                                              Temperature
----------------------------------------------------------------------------------------------------------------
 Oil Steam............................  82%                                  None
----------------------------------------------------------------------------------------------------------------
Electric Hot Water....................  None                                 Automatic Means for Adjusting
                                                                              Temperature
----------------------------------------------------------------------------------------------------------------
Electric Steam........................  None                                 None
----------------------------------------------------------------------------------------------------------------

          (B) Automatic means for adjusting water 
        temperature.--
                  (i) In general.--The manufacturer shall equip 
                each gas, oil and electric hot water boiler, 
                except boilers equipped with tankless domestic 
                water heating coils, with automatic means for 
                adjusting the temperature of the water supplied 
                by the boiler to ensure that an incremental 
                change in inferred heat load produces a 
                corresponding incremental change in the 
                temperature of water supplied.
                  (ii) Single input rate.--For a boiler that 
                fires at one input rate this requirement may be 
                satisfied by providing an automatic means that 
                allows the burner or heating element to fire 
                only when such means has determined that the 
                inferred heat load cannot be met by the 
                residual heat of the water in the system.
                  (iii) No inferred heat load.--When there is 
                no inferred heat load with respect to a hot 
                water boiler, the automatic means described in 
                clause (i) and (ii) shall limit the temperature 
                of the water in the boiler to not more than 140 
                degrees Fahrenheit.
                  (iv) Operation.--A boiler described in clause 
                (i) or (ii) shall be operable only when the 
                automatic means described in clauses (i), (ii), 
                and (iii) is installed.
  [(3)] (4)(A)  * * *

           *       *       *       *       *       *       *

  (D) Notwithstanding any other provision of this Act, if the 
requirements of subsection (o) are met, the Secretary [may] 
shall consider and prescribe energy conservation standards or 
energy use standards for electricity used for purposes of 
circulating air through duct work not later than July 1, 2013.
  (g) Standards for Dishwashers; Clothes Washers; Clothes 
Dryers, Fluorescent Lamp Ballasts.--(1) * * *

           *       *       *       *       *       *       *

  (9) Clotheswashers manufactured on or after January 1, 2011, 
shall have--
          (A) a Modified Energy Factor of at least 1.26; and
          (B) a water factor of not more than 9.5.
  (10) No later than December 31, 2011, the Secretary shall 
publish a final rule determining whether to amend the standards 
in effect for clotheswashers manufactured on or after January 
1, 2015. Such rule shall contain such amendment, if any.
  (11) Dishwashers manufactured on or after January 1, 2010, 
shall--
          (A) for standard size dishwashers not exceed 355 kwh/
        year and 6.5 gallon per cycle; and
          (B) for compact size dishwashers not exceed 260 kwh/
        year and 4.5 gallons per cycle.
  (12) No later than January 1, 2015, the Secretary shall 
publish a final rule determining whether to amend the standards 
for dishwashers manufactured on or after January 1, 2018. Such 
rule shall contain such amendment, if any.

           *       *       *       *       *       *       *

  (i) General Service Fluorescent Lamps and Incandescent 
Reflector Lamps.--[(1)(A) Each of the following general service 
fluorescent lamps and incandescent reflector lamps manufactured 
after the effective date specified in the tables listed in this 
paragraph shall meet or exceed the following lamp efficacy and 
CRI standards:

                                               [FLUORESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
                                   Nominal Lamp                         Minimum Average Lamp      Effective Date
           Lamp Type                  Wattage         Minimum CRI          Efficacy (LPW)            (Months)
----------------------------------------------------------------------------------------------------------------
4-foot medium bi-pin...........        >35 W              69                    75.0                    36
                                       35 W               45                    75.0                    36
2-foot U-shaped................        >35 W              69                    68.0                    36
                                       35 W               45                    64.0                    36
8-foot slimline................         65 W              69                    80.0                    18
                                       65 W               45                    80.0                    18
8-foot high output.............       >100 W              69                    80.0                    18
                                       100 W              45                    80.0                    18
----------------------------------------------------------------------------------------------------------------


                      [INCANDESCENT REFLECTOR LAMPS
------------------------------------------------------------------------
                                  Minimum Average Lamp    Effective Date
     Nominal Lamp Wattage            Efficacy (LPW)          (Months)
------------------------------------------------------------------------
40-50........................             10.5                  36
51-66........................             11.0                  36
67-85........................             12.5                  36
86-115.......................             14.0                  36
116-155......................             14.5                  36
156-205......................             15.0                  36
------------------------------------------------------------------------

  [(B) For the purposes of the tables set forth in subparagraph 
(A), the term ``effective date'' means the last day of the 
month set forth in the table which follows the date of the 
enactment of the Energy Policy Act of 1992.]
          (1) Standards.--
                  (A) Definition of effective date.--In this 
                paragraph, except as specified in subparagraphs 
                (C) and (D), the term ``effective date'' means, 
                with respect to each type of lamp specified in 
                a table contained in subparagraph (B), the last 
                day of the period of months corresponding to 
                that type of lamp, as specified in the table, 
                that follows the date of enactment of the 
                [short title].
                  (B) Minimum standards.--Each of the following 
                general service fluorescent lamps and 
                incandescent reflector lamps manufactured after 
                the effective date specified in the tables 
                contained in this paragraph shall meet or 
                exceed the following lamp efficacy and CRI 
                standards:

                                                FLUORESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
                                                                                                  Effective Date
           Lamp Type               Nominal Lamp       Minimum CRI       Minimum Average Lamp        (Period of
                                      Wattage                              Efficacy (LPW)            Months)
----------------------------------------------------------------------------------------------------------------
4-foot medium bi-pin...........        >35 W              69                    75.0                    36
                                       35 W               45                    75.0                    36
2-foot U-shaped................        >35 W              69                    68.0                    36
                                       35 W               45                    64.0                    36
8-foot slimline................         65 W              69                    80.0                    18
                                       65 W               45                    80.0                    18
8-foot high output.............       >100 W              69                    80.0                    18
                                       100 W              45                    80.0                    18
----------------------------------------------------------------------------------------------------------------


                      INCANDESCENT REFLECTOR LAMPS
------------------------------------------------------------------------
                                                          Effective Date
     Nominal Lamp Wattage         Minimum Average Lamp      (Period of
                                     Efficacy (LPW)           Months)
------------------------------------------------------------------------
 40-50.......................             10.5                  36
 51-66.......................             11.0                  36
 67-85.......................             12.5                  36
 86-115......................             14.0                  36
116-155......................             14.5                  36
156-205......................             15.0                  36
------------------------------------------------------------------------

                  (C) Exemptions.--The standards specified in 
                subparagraph (B) shall not apply to the 
                following types of incandescent reflector 
                lamps:
                          (i) Lamps rated at 50 watts or less 
                        of the following types: ER30, BR30, 
                        BR40, and ER40 lamps.
                          (ii) Lamps rated at 65 watts of the 
                        following types: BR30, BR40, and ER40 
                        lamps.
                          (iii) R20 incandescent reflector 
                        lamps of 45 watts or less.
                  (D) Effective dates.--
                          (i) Er, br, and bpar lamps.--Except 
                        as provided in subparagraph (A), the 
                        standards specified in subparagraph (B) 
                        shall apply with respect to ER 
                        incandescent reflector lamps, BR 
                        incandescent reflector lamps, BPAR 
                        incandescent reflector lamps, and 
                        similar bulb shapes on and after 
                        January 1, 2008.
                          (ii) Lamps between 2.25-2.75 inches 
                        in diameter.--The standards specified 
                        in subparagraph (B) shall apply with 
                        respect to incandescent reflector lamps 
                        with a diameter of more than 2.25 
                        inches, but not more than 2.75 inches, 
                        on and after January 1, 2008.

           *       *       *       *       *       *       *

  [(m) Further Rulemaking.--After issuance of the last final 
rules required under subsections (b) through (i) of this 
section, the Secretary may publish final rules to determine 
whether standards for a covered product should be amended. An 
amendment prescribed under this subsection shall apply to 
products manufactured after a date which is 5 years after--
          [(A) the effective date of the previous amendment 
        made pursuant to this part; or
          [(B) if the previous final rule published under this 
        part did not amend the standard, the earliest date by 
        which a previous amendment could have been in effect, 
        except that in no case may an amended standard apply to 
        products manufactured within 3 years (for 
        refrigerators, refrigerator-freezers, and freezers, 
        room air conditioners, dishwashers, clothes washers, 
        clothes dryers, fluorescent lamp ballasts, and kitchen 
        ranges and ovens) or 5 years (for central air 
        conditioners and heat pumps, water heaters, pool 
        heaters, direct heating equipment and furnaces) after 
        publication of the final rule establishing a standard.]
  (m) Further Rulemaking.--(1) Not later than 6 years after 
issuance of any final rule establishing or amending a standard, 
as required for a product under this part, the Secretary shall 
publish either--
          (A) a notice of the Secretary's determination that 
        standards for that product do not need to be amended, 
        based on the criteria in subsection (n)(2); or
          (B) a notice of proposed rulemaking including new 
        proposed standards based on the criteria in subsection 
        (o) and the procedures in subsection (p).
In either case, the Secretary shall also publish a notice 
stating that the Department's analysis is publicly available, 
and provide opportunity for written comment.
  (2) Not later than 2 years after a notice is issued under 
paragraph (1)(B), the Secretary shall publish a final rule 
amending the standard for the product. Not later than 3 years 
after a determination under paragraph (1)(A), the Secretary 
shall make a new determination and publication under paragraph 
(1)(A) or (B).
  (3) An amendment prescribed under this subsection shall apply 
to products manufactured after a date which is 3 years after 
publication of the final rule establishing a standard, except 
that a manufacturer shall not be required to apply new 
standards to a product with respect to which other new 
standards have been required within the prior 6 years.
  (4) The Secretary shall promptly submit to the Committee on 
Energy and Commerce of the House of Representatives and the 
Committee on Energy and Natural Resources of the Senate--
          (A) a progress report every 180 days on compliance 
        with this section, including a specific plan to remedy 
        any failures to comply with deadlines for action set 
        forth in this section; and
          (B) all required reports to the Court or to any party 
        to the Consent Decree in State of New York v Bodman, 
        Consolidated Civil Actions No.05 Civ. 7807 and No.05 
        Civ. 7808.

           *       *       *       *       *       *       *

  (o) Criteria for Prescribing New or Amended Standards.--(1) * 
* *

           *       *       *       *       *       *       *

  (6)(A) The Secretary may establish regional standards for 
space heating and air conditioning products, other than window-
unit air-conditioners and portable space heaters. For each 
space heating and air conditioning product, the Secretary may 
establish a national minimum standard and two more stringent 
regional standards for regions determined to have significantly 
differing climatic conditions. Any standards set for any such 
region shall achieve the maximum level of energy savings that 
are technically feasible and economically justified within that 
region. As a preliminary step to determining the economic 
justifiability of establishing any such regional standard, the 
Secretary shall conduct a study involving stakeholders, 
including but not limited to a representative from the National 
Institute of Standards and Technology; representatives of 
nongovernmental advocacy organizations; representatives of 
product manufacturers, distributors, and installers; 
representatives of the gas and electric utility industries; and 
such other individuals as the Secretary may designate. Such 
study shall determine the potential benefits and consequences 
of prescribing regional standards for heating and cooling 
products, and may, if favorable to such standards, constitute 
the evidence of economic justifiability required under this 
Act. Regional boundaries shall follow State borders and only 
include contiguous States (except Alaska and Hawaii), except 
that on the request of a State, the Secretary may divide that 
State to include a part of that State in each of two regions.
  (B) If the Secretary establishes regional standards, it shall 
be unlawful under section 332 to offer for sale at retail, sell 
at retail, or install noncomplying products except within the 
specified regions.
  (C)(i) Except as provided in clause (ii), no product 
manufactured to a regional standard established pursuant to 
subparagraph (A) shall be distributed in commerce without a 
prominent label affixed to the product which includes at the 
top of the label, in print of not less than 14-point type, the 
following: ``It is a violation of Federal law for this product 
to be installed in any State outside the region shaded on the 
map printed on this label.''. Below this notice shall appear a 
map of the United States with clearly defined State boundaries 
and names, and with all States in which the product meets or 
exceeds the standard established pursuant to subparagraph (A) 
shaded in a color or a manner as to be easily visible without 
obscuring the State boundaries and names. Below the map shall 
be printed on each label the following: ``It is a violation of 
Federal law for this label to be removed, except by the owner 
and legal resident of any single-family home in which this 
product is installed.
  (ii) A product manufactured that meets or exceeds all 
regional standards established under this paragraph shall bear 
a prominent label affixed to the product which includes at the 
top of the label, in print of not less than 14-point type the 
following: ``This product has achieved an energy efficiency 
rating under Federal law allowing its installation in any 
State.
  (D) Manufacturers of space heating and air conditioning 
equipment subject to regional standards established under this 
paragraph shall obtain and retain records on the intended 
installation locations of the equipment sold, and shall make 
such records available to the Secretary on request.
  (p) Procedure for Prescribing New or Amended Standards.--Any 
new or amended energy conservation standard shall be prescribed 
in accordance with the following procedure:
          [(1) The Secretary--
                  [(A) shall publish an advance notice of 
                proposed rulemaking which specifies the type 
                (or class) of covered products to which the 
                rule may apply;
                  [(B) shall invite interested persons to 
                submit, within 60 days after the date of 
                publication of such advance notice, written 
                presentations of data, views, and arguments in 
                response to such notice; and
                  [(C) may identify proposed or amended 
                standards that may be prescribed.]
          [(2)] (1) A proposed rule which prescribes an amended 
        or new energy conservation standard or prescribes no 
        amendment or no new standard for a type (or class) of 
        covered products shall be published in the Federal 
        Register. In prescribing any such proposed rule with 
        respect to a standard, the Secretary shall determine 
        the maximum improvement in energy efficiency or maximum 
        reduction in energy use that is technologically 
        feasible for each type (or class) of covered products. 
        If such standard is not designed to achieve such 
        efficiency or use, the Secretary shall state in the 
        proposed rule the reasons therefor.
          [(3)] (2) After the publication of such proposed 
        rulemaking, the Secretary shall, in accordance with 
        section 336, afford interested persons an opportunity, 
        during a period of not less than 60 days, to present 
        oral and written comments (including an opportunity to 
        question those who make such presentations, as provided 
        in such section) on matters relating to such proposed 
        rule, including--
                  (A)  * * *

           *       *       *       *       *       *       *

          [(4)] (3) A final rule prescribing an amended or new 
        energy conservation standard or prescribing no amended 
        or new standard for a type (or class) of covered 
        products shall be published as soon as is practicable, 
        but not less than 90 days, after publication of the 
        proposed rule in the Federal Register.
          (4) If manufacturers of any type (or class) of 
        covered products or covered equipment, States, and 
        efficiency advocates, or persons determined by the 
        Secretary to fully represent such parties, submit to 
        the Secretary a joint recommendation of an energy or 
        water conservation standard and the Secretary 
        determines that the recommended standard complies with 
        subsection (o) or section 342(a)(6)(B), as applicable, 
        to that type (or class) of covered products or covered 
        equipment to which the standard would apply, the 
        Secretary may then issue a direct final rule including 
        the standard recommended. If the Secretary determines 
        that a direct final rule cannot be issued based on such 
        a submitted joint recommendation, the Secretary shall 
        publish a determination with an explanation as to why 
        the joint recommendation does not comply with this 
        paragraph. For purposes of this paragraph, the term 
        ``direct final rule'' means a final rule published the 
        same day with a parallel notice of proposed rulemaking 
        that proposes a new or amended energy or water 
        conservation standard that is identical to the standard 
        set forth in the final rule. There shall be a 110-day 
        period for public comment with respect to the direct 
        final rule. Not later than 10 days after the expiration 
        of such 110-day period, the Secretary shall publish a 
        notice responding to comments received with respect to 
        the direct final rule. The Secretary shall withdraw a 
        direct final rule promulgated pursuant to this 
        paragraph within 120 days after publication in the 
        Federal Register if the Secretary receives, with 
        respect to the direct final rule, one or more adverse 
        public comments or any alternate joint recommendation 
        and, based on the rulemaking record, the Secretary 
        determines that such adverse comments or alternate 
        joint recommendation may provide a reasonable basis for 
        withdrawing the direct final rule under subsection (o), 
        section 342(a)(6)(B), or any applicable law. In such a 
        case, the Secretary shall then proceed with the 
        parallel notice of proposed rulemaking, and shall 
        identify in a notice published in the Federal Register 
        the reasons for the withdrawal of the direct final 
        rule. A direct final rule that is withdrawn in 
        accordance with this paragraph shall not be considered 
        final for purposes of subsection (o)(1) of this 
        section. No person shall be found in violation of this 
        part for noncompliance with a direct final rule that is 
        withdrawn under this paragraph, if that person has 
        complied with the applicable standard in effect under 
        this part immediately prior to issuance of that direct 
        final rule.

           *       *       *       *       *       *       *

  (u) Battery Charger and External Power Supply Electric Energy 
Consumption.--(1) * * *
  [(2) In determining under section 323 whether test procedures 
and energy conservation standards under this section should be 
revised with respect to covered products that are major sources 
of standby mode energy consumption, the Secretary shall 
consider whether to incorporate standby mode into the test 
procedures and energy conservation standards, taking into 
account standby mode power consumption compared to overall 
product energy consumption.]
  [(3)] (2) The Secretary shall not propose an energy 
conservation standard under this section, unless the Secretary 
has issued applicable test procedures for each product under 
section 323.
  [(4)] (3) Any energy conservation standard issued under this 
subsection shall be applicable to products manufactured or 
imported beginning on the date that is 3 years after the date 
of issuance.
  [(5)] (4) The Secretary and the Administrator shall 
collaborate and develop programs (including programs under 
section 324A and other voluntary industry agreements or codes 
of conduct) that are designed to reduce standby mode energy 
use.
  (5) Efficiency standards for class a external power 
supplies.--
                  (A) Class A external power supplies 
                manufactured on or after July 1, 2008 (or the 
                date of enactment of this paragraph, if later) 
                shall meet the following standards:

----------------------------------------------------------------------------------------------------------------
                                                   Active Mode
-----------------------------------------------------------------------------------------------------------------
                                                                    Required Efficiency (decimal equivalent of a
                         Nameplate Output                                           percentage)
----------------------------------------------------------------------------------------------------------------
Less than 1 watt                                                   0.5 times the Nameplate Output
----------------------------------------------------------------------------------------------------------------
From 1 watt to not more than 51 watts                              The sum of 0.09 times the Natural Logarithm
                                                                    of the Nameplate Output and 0.5
----------------------------------------------------------------------------------------------------------------
Greater than 51 watts                                              0.85
----------------------------------------------------------------------------------------------------------------
No-Load Mode
Nameplate Output                                                   Maximum Consumption
----------------------------------------------------------------------------------------------------------------
Not more than 250 watts                                            0.5 watts
----------------------------------------------------------------------------------------------------------------

                  (B) Notwithstanding paragraph (A), any class 
                A external power supply manufactured on or 
                after July 1, 2008, and before July 1, 2015, 
                and made available by the manufacturer as a 
                service part or a spare part for an end-use 
                product--
                          (i) that constitutes the primary 
                        load; and
                          (ii) was manufactured before July 1, 
                        2008,
                shall not be subject to the requirements of 
                paragraph (A).
                  (C) Any class A external power supply 
                manufactured on or after July 1, 2008 (or the 
                date of enactment of this paragraph, if later) 
                shall be clearly and permanently marked in 
                accordance with the External Power Supply 
                International Efficiency Marking Protocol, as 
                referenced in the ``Energy Star Program 
                Requirements for Single Voltage External AC-DC 
                and AC-AC Power Supplies, version 1.1'' 
                published by the Environmental Protection 
                Agency.
                  (D)(i) Not later than July 1, 2011 the 
                Secretary shall publish a final rule to 
                determine whether the standards established 
                under paragraph (A) should be amended. Such 
                rule shall provide that any amended standard 
                shall apply to products manufactured on or 
                after July 1, 2013.
                  (ii) Not later than July 1, 2015 the 
                Secretary shall publish a final rule to 
                determine whether the standards established 
                under paragraph (A) should be amended. Such 
                rule shall provide that any amended standard 
                shall apply to products manufactured on or 
                after July 1, 2017.
          (6) An energy conservation standard for external 
        power supplies shall not constitute an energy 
        conservation standard for the separate end-use product 
        to which it is connected.
  (v) [Ceiling Fans and] Refrigerated Beverage Vending 
Machines.--[(1) Not later than 1 year after the date of 
enactment of this subsection, the Secretary shall prescribe, by 
rule, test procedures and energy conservation standards for 
ceiling fans and ceiling fan light kits. If the Secretary sets 
such standards, the Secretary shall consider exempting or 
setting different standards for certain product classes for 
which the primary standards are not technically feasible or 
economically justified, and establishing separate or exempted 
product classes for highly decorative fans for which air 
movement performance is a secondary design feature.]
  [(2)] (1) Not later than 4 years after the date of enactment 
of this subsection, the Secretary shall prescribe, by rule, 
energy conservation standards for refrigerated bottle or canned 
beverage vending machines.
  [(3)] (2) In establishing energy conservation standards under 
this subsection, the Secretary shall use the criteria and 
procedures prescribed under subsections (o) and (p).
  [(4)] (3) Any energy conservation standard prescribed under 
this subsection shall apply to products manufactured 3 years 
after the date of publication of a final rule establishing the 
energy conservation standard.

           *       *       *       *       *       *       *

  (cc) Dehumidifiers.--(1) * * *
  [(2)(A) Not later than October 1, 2009, the Secretary shall 
publish a final rule in accordance with subsections (o) and 
(p), to determine whether the energy conservation standards 
established under paragraph (1) should be amended.
  [(B) The final rule published under subparagraph (A) shall--
          [(i) contain any amendment by the Secretary; and
          [(ii) provide that the amendment applies to products 
        manufactured on or after October 1, 2012.
  [(C) If the Secretary does not publish an amendment that 
takes effect by October 1, 2012, dehumidifiers manufactured on 
or after October 1, 2012, shall have an Energy Factor that 
meets or exceeds the following values:
[Product Capacity (pints/day):        Minimum Energy Factor (Liters/kWh)
    25.00 or less.............................................     1.20 
    25.01 - 35.00.............................................     1.30 
    35.01 - 45.00.............................................     1.40 
    45.01 - 54.00.............................................     1.50 
    54.01 - 74.99.............................................     1.60 
    75.00 or more.............................................     2.5.]
  (2) Dehumidifiers manufactured on or after October 1, 2012, 
shall have an Energy Factor that meets or exceeds the following 
values:




Product Capacity (pints/day):            Minimum Energy Factor (liters/
                                          KWh)
  Up to 35.00..........................  1.35
  35.01-45.00..........................  1.50
  45.01-54.00..........................  1.60
  54.01-75.00..........................  1.70
  Greater than 75.00...................  2.5.

                                         

           *       *       *       *       *       *       *
  (ff) Ceiling Fans and Ceiling Fan Light Kits.--(1)(A) All 
ceiling fans manufactured on or after January 1, 2007, shall 
have the following features:
          (i) * * *

           *       *       *       *       *       *       *

          [(iii) Adjustable speed controls (either more than 1 
        speed or variable speed).]
          [(iv)] (iii) The capability of reversible fan action, 
        except for--
                  (I) fans sold for industrial applications;
                  (II) fans sold for outdoor applications; and

           *       *       *       *       *       *       *

  (4)(A) * * *

           *       *       *       *       *       *       *

  (C) If the Secretary fails to issue a final rule by the date 
specified in [subparagraph (B)] subparagraph (A), any type of 
ceiling fan lighting kit described in subparagraph (A) that is 
manufactured after January 1, 2009--
          (i) shall not be capable of operating with lamps that 
        total more than 190 watts; and
          [(ii) shall include the lamps described in clause (i) 
        in the ceiling fan lighting kits.]
          (ii) shall be packaged with lamps to fill all 
        sockets.

           *       *       *       *       *       *       *

  (6)(A) * * *
  (B) In issuing the standards under subparagraph (A), the 
Secretary shall consider--
          [(C)] (i) exempting, or setting different standards 
        for, certain product classes for which the primary 
        standards are not technically feasible or economically 
        justified; and
          [(D)] (ii) establishing separate exempted product 
        classes for highly decorative fans for which air 
        movement performance is a secondary design feature.
  (7) Section 327 shall apply to the products covered in 
paragraphs (1) through (4) beginning on the date of enactment 
of this subsection, except that any State or local labeling 
requirement for ceiling fans prescribed or enacted before the 
date of enactment of this subsection shall not be preempted 
until the labeling requirements applicable to ceiling fans 
established under section [327] 324 take effect.

           *       *       *       *       *       *       *

  (ii) Standby Mode.--
          (1) Requirement.--Except as provided in paragraph 
        (2), any final rule adopted after July 1, 2012, to set 
        a new or revised energy efficiency standard for a 
        covered product shall specify that a covered product 
        manufactured on or after the effective date of such new 
        or revised standard shall, when in standby mode, 
        operate with not more than 1 watt of electric power.
          (2) Exceptions.--
                  (A) Extensions.--The Secretary may provide a 
                single extension of up to 2 years for 
                compliance with paragraph (1) with respect to a 
                covered product if the Secretary finds that 
                such extension is appropriate.
                  (B) Exemptions.--The Secretary may provide an 
                exemption from the requirement under paragraph 
                (1) for a covered product, after public notice 
                and opportunity for comment, if the Secretary 
                finds that--
                          (i) achieving the requirement is not 
                        technologically feasible and 
                        economically justified for that covered 
                        product; or
                          (ii) such an exemption is warranted 
                        for medical or military reasons.
                Any exemption provided under this subparagraph 
                shall be reviewed at least once every 5 years.

           *       *       *       *       *       *       *


                          EFFECT ON OTHER LAW

  Sec. 327. (a) * * *

           *       *       *       *       *       *       *

  (f) Exception for Certain Building Code Requirements.--(1) * 
* *

           *       *       *       *       *       *       *

  (3) Effective on the effective date of an energy conservation 
standard for a covered product established in or prescribed 
under section 325, a regulation or other requirement contained 
in a State or local building code for new construction 
concerning the energy efficiency or energy use of such covered 
product is not superseded by this part if the code complies 
with all of the following requirements:
          (A) * * *

           *       *       *       *       *       *       *

          [(D) If the code uses one or more baseline building 
        designs against which all submitted building designs 
        are to be evaluated and such baseline building designs 
        contain a covered product subject to an energy 
        conservation standard established in or prescribed 
        under section 325, the baseline building designs are 
        based on the efficiency level for such covered product 
        which meets but does not exceed such standard or the 
        efficiency level required by a regulation of that State 
        for which the Secretary has issued a rule granting a 
        waiver under subsection (d).]
          (D) If the code uses one or more baseline building 
        designs against which all submitted building designs 
        are to be evaluated and such baseline building designs 
        contain a covered product subject to an energy 
        conservation standard established in or prescribed 
        under section 325, the baseline building designs are 
        based on the efficiency level for such covered product 
        which--
                  (i) meets but does not exceed such standard;
                  (ii) is the efficiency level required by a 
                regulation of that State for which the 
                Secretary has issued a rule granting a waiver 
                under subsection (d) of this section; or
                  (iii) is a level that, when evaluated in the 
                baseline building design, the State has found 
                to be feasible and cost-effective.

           *       *       *       *       *       *       *


                  Part C--Certain Industrial Equipment

                              DEFINITIONS

  Sec. 340. For purposes of this part--
          (1) * * *

           *       *       *       *       *       *       *

          (13)(A) [The term ``electric motor'' means any motor 
        which is a general purpose T-frame, single-speed, foot-
        mounting, polyphase squirrel-cage induction motor of 
        the National Electrical Manufacturers Association, 
        Design A and B, continuous rated, operating on 230/460 
        volts and constant 60 Hertz line power as defined in 
        NEMA Standards Publication MG1-1987.] The term 
        ``general purpose electric motor (subtype I)'' means 
        any motor that meets the definition of ``General 
        Purpose'' as established in the final rule issued by 
        the Department of Energy for ``Energy Efficiency 
        Program for Certain Commercial and Industrial 
        Equipment: Test Procedures, Labeling, and Certification 
        Requirements for Electric Motors'' (10 CFR 431), as in 
        effect on the date of enactment of the [short title].
          (B) The term ``general purpose electric motor 
        (subtype II)'' means motors incorporating the design 
        elements of a general purpose electric motor (subtype 
        I) that are configured as one of the following:
                  (i) U-Frame Motors.
                  (ii) Design C Motors.
                  (iii) Close-coupled pump motors.
                  (iv) Footless motors.
                  (v) Vertical solid shaft normal thrust motor 
                (as tested in a horizontal configuration).
                  (vi) 8-pole motors (900 rpm).
                  (vii) All poly-phase motors with voltages up 
                to 600 volts other than 230/460 volts.
          [(B)] (C) The term ``definite purpose motor'' means 
        any motor designed in standard ratings with standard 
        operating characteristics or standard mechanical 
        construction for use under service conditions other 
        than usual or for use on a particular type of 
        application and which cannot be used in most general 
        purpose applications.
          [(C)] (D) The term ``special purpose motor'' means 
        any motor, other than a general purpose motor or 
        definite purpose motor, which has special operating 
        characteristics or special mechanical construction, or 
        both, designed for a particular application.
          [(D)] (E) The term ``open motor'' means a motor 
        having ventilating openings which permit passage of 
        external cooling air over and around the windings of 
        the machine.
          [(E)] (F) The term ``enclosed motor'' means a motor 
        so enclosed as to prevent the free exchange of air 
        between the inside and outside of the case but not 
        sufficiently enclosed to be termed airtight.
          [(F)] (G) The term ``small electric motor'' means a 
        NEMA general purpose alternating current single-speed 
        induction motor, built in a two-digit frame number 
        series in accordance with NEMA Standards Publication 
        MG1-1987.
          [(G)] (H) The term ``efficiency'' when used with 
        respect to an electric motor means the ratio of an 
        electric motor's useful power output to its total power 
        input, expressed in percentage.
          [(H)] (I) The term ``nominal full load efficiency'' 
        means the average efficiency of a population of motors 
        of duplicate design as determined in accordance with 
        NEMA Standards Publication MG1-1987.

           *       *       *       *       *       *       *

          (22) The term ``single package vertical air 
        conditioner'' means air-cooled commercial package air 
        conditioning and heating equipment; factory assembled 
        as a single package having its major components 
        arranged vertically, which is an encased combination of 
        cooling and optional heating components, is intended 
        for exterior mounting on, adjacent interior to, or 
        through an outside wall; and is powered by a single- or 
        three-phase current. It may contain separate indoor 
        grille(s), outdoor louvers, various ventilation 
        options, indoor free air discharge, ductwork, well 
        plenum, or sleeve. Heating components may include 
        electrical resistance, steam, hot water, or gas, but 
        may not include reverse cycle refrigeration as a 
        heating means.
          (23) The term ``single package vertical heat pump'' 
        means a single package vertical air conditioner that 
        utilizes reverse cycle refrigeration as its primary 
        heat source, that may include secondary supplemental 
        heating by means of electrical resistance, steam, hot 
        water, or gas.

           *       *       *       *       *       *       *


                               STANDARDS

  Sec. 342. (a) Small, Large, and Very Large Commercial Package 
Air Conditioning and Heating Equipment, Packaged Terminal Air 
Conditioners and Heat Pumps, Warm-Air Furnaces, Packaged 
Boilers, Storage Water Heaters, Instantaneous Water Heaters, 
and Unfired Hot Water Storage Tanks.--(1) Each small commercial 
package air conditioning and heating equipment, including 
single package vertical air conditioners and single package 
vertical heat pumps, manufactured on or after January 1, 1994, 
[but before January 1, 2010,] shall meet the following standard 
levels:
  (A)  * * *

           *       *       *       *       *       *       *

  (2) Each large commercial package air conditioning and 
heating equipment, including single package vertical air 
conditioners and single package vertical heat pumps, 
manufactured on or after January 1, 1995, but before January 1, 
2010, shall meet the following standard levels:
  (A)  * * *

           *       *       *       *       *       *       *

  (6)[(A)(i) If ASHRAE/IES Standard 90.1, as in effect on 
January 1, 2010, is amended with respect to any small 
commercial package air conditioning and heating equipment, 
large commercial package air conditioning and heating 
equipment, and very large commercial package air conditioning 
and heating equipment, or if ASHRAE/IES Standard 90.1, as in 
effect on October 24, 1992, is amended with respect to any 
packaged terminal air conditioners, packaged terminal heat 
pumps, warm-air furnaces, packaged boilers, storage water 
heaters, instantaneous water heaters, or unfired hot water 
storage tanks, the Secretary shall establish an amended uniform 
national standard for that product at the minimum level for 
each effective date specified in the amended ASHRAE/IES 
Standard 90.1, unless the Secretary determines, by rule 
published in the Federal Register and supported by clear and 
convincing evidence, that adoption of a uniform national 
standard more stringent than such amended ASHRAE/IES Standard 
90.1 for such product would result in significant additional 
conservation of energy and is technologically feasible and 
economically justified.
  [(ii) If ASHRAE/IES Standard 90.1 is not amended with respect 
to small commercial package air conditioning and heating 
equipment, large commercial package air conditioning and 
heating equipment, and very large commercial package air 
conditioning and heating equipment during the 5-year period 
beginning on the effective date of a standard, the Secretary 
may initiate a rulemaking to determine whether a more stringent 
standard--
  [(I) would result in significant additional conservation of 
energy; and
  [(II) is technologically feasible and economically justified.
  [(B)(i) If the Secretary issues a rule containing such a 
determination, the rule shall establish such amended standard. 
In determining whether a standard is economically justified for 
the purposes of subparagraph (A), the Secretary shall, after 
receiving views and comments furnished with respect to the 
proposed standard, determine whether the benefits of the 
standard exceed its burdens by, to the greatest extent 
practicable, considering--
  [(I) the economic impact of the standard on the manufacturers 
and on the consumers of the products subject to such standard;
  [(II) the savings in operating costs throughout the estimated 
average life of the product in the type (or class) compared to 
any increase in the price of, or in the initial charges for, or 
maintenance expenses of, the products which are likely to 
result from the imposition of the standard;
  [(III) the total projected amount of energy savings likely to 
result directly from the imposition of the standard;
  [(IV) any lessening of the utility or the performance of the 
products likely to result from the imposition of the standard;
  [(V) the impact of any lessening of competition, as 
determined in writing by the Attorney General, that is likely 
to result from the imposition of the standard;
  [(VI) the need for national energy conservation; and
  [(VII) other factors the Secretary considers relevant.
  [(ii) The Secretary may not prescribe any amended standard 
under this paragraph which increases the maximum allowable 
energy use, or decreases the minimum required energy 
efficiency, of a covered product. The Secretary may not 
prescribe an amended standard under this subparagraph if the 
Secretary finds (and publishes such finding) that interested 
persons have established by a preponderance of the evidence 
that a standard is likely to result in the unavailability in 
the United States in any product type (or class) of performance 
characteristics (including reliability), features, sizes, 
capacities, and volumes that are substantially the same as 
those generally available in the United States at the time of 
the Secretary's finding. The failure of some types (or classes) 
to meet this criterion shall not affect the Secretary's 
determination of whether to prescribe a standard for other 
types or classes.]
  (6)(A) If ASHRAE/IES Standard 90.1 is amended with respect to 
any small, large, or very large commercial package air 
conditioning and heating equipment, packaged terminal air 
conditioners, packaged terminal heat pumps, warm-air furnaces, 
packaged boilers, storage water heaters, instantaneous water 
heaters, or unfired hot water storage tanks, the Secretary 
shall within 6 months publish in the Federal Register for 
public comment an analysis of the energy savings potential of 
the amended energy efficiency standards. The Secretary shall 
establish an amended uniform national standard for that product 
at the minimum level for each effective date specified in the 
amended ASHRAE/IES Standard 90.1 within 18 months of the ASHRAE 
amendment's publication, unless the Secretary determines, by 
rule published in the Federal Register, and supported by clear 
and convincing evidence, that adoption of a uniform national 
standard more stringent than such amended ASHRAE/IES Standard 
90.1 for such product would result in significant additional 
conservation of energy and is technologically feasible and 
economically justified.
  (B) If the Secretary issues a rule containing such a 
determination, the rule shall establish such amended standard, 
and shall be issued within 30 months of the ASHRAE amendment's 
publication.
  (C)(i) Not later than 6 years after issuance of any final 
rule establishing or amending a standard, as required for a 
product under this part, the Secretary shall publish either--
          (I) a notice of the Secretary's determination that 
        standards for that product do not need to be amended, 
        based on the criteria in subparagraph (A); or
          (II) a notice of proposed rulemaking including new 
        proposed standards based on the criteria and procedures 
        in subparagraph (B).
In either case, the Secretary shall also publish a notice 
stating that the Department's analysis is publicly available, 
and provide opportunity for written comment.
  (ii) Not later than 2 years after a notice is issued under 
clause (i)(II), the Secretary shall publish a final rule 
amending the standard for the product. Not later than 3 years 
after a determination under clause (i)(I), the Secretary shall 
make a new determination and publication under clause (i)(I) or 
(II).
  (iii) An amendment prescribed under this subparagraph shall 
apply to products manufactured after a date which is 3 years 
after publication of the final rule establishing a standard, 
except that a manufacturer shall not be required to apply new 
standards to a product with respect to which other new 
standards have been required within the prior 6 years.
  (iv) The Secretary shall promptly submit to the House 
Committee on Energy and Commerce and to the Senate Committee on 
Energy and Natural Resources a progress report every 180 days 
on compliance with this paragraph, including a specific plan to 
remedy any failures to comply with deadlines for action set 
forth in this paragraph.
  [(C)] (D) A standard amended by the Secretary under this 
paragraph shall become effective for products manufactured--
          (i)  * * *

           *       *       *       *       *       *       *

  (7) Small commercial package air conditioning and heating 
equipment, excluding single package vertical air conditioners 
and single package vertical heat pumps, [manufactured on or 
after January 1, 2010,] shall meet the following standards:
          (A) [The] For equipment manufactured on or after 
        January 1, 2010, the minimum energy efficiency ratio of 
        air-cooled central air conditioners at or above 65,000 
        Btu per hour (cooling capacity) and less than 135,000 
        Btu per hour (cooling capacity) shall be--
                  (i)  * * *

           *       *       *       *       *       *       *

          (B) [The] For equipment manufactured on or after 
        January 1, 2010, the minimum energy efficiency ratio of 
        air-cooled central air conditioner heat pumps at or 
        above 65,000 Btu per hour (cooling capacity) and less 
        than 135,000 Btu per hour (cooling capacity) shall be--
                  (i)  * * *

           *       *       *       *       *       *       *

          (C) [The] For equipment manufactured on or after 
        January 1, 2010, the minimum coefficient of performance 
        in the heating mode of air-cooled central air 
        conditioning heat pumps at or above 65,000 Btu per hour 
        (cooling capacity) and less than 135,000 Btu per hour 
        (cooling capacity) shall be 3.3 (at a high temperature 
        rating of 47 degrees F db).
          (D) For equipment manufactured on or after the later 
        of January 1, 2008, or the date six months after 
        enactment of this section, the minimum seasonal energy 
        efficiency ratio of air-cooled three-phase electric 
        central air conditioners and central air conditioning 
        heat pumps less than 65,000 Btu per hour (cooling 
        capacity), split systems, shall be 13.0.
          (E) For equipment manufactured on or after the later 
        of January 1, 2008, or the date six months after 
        enactment of this section, minimum seasonal energy 
        efficiency ratio of air-cooled three-phase electric 
        central air conditioners and central air conditioning 
        heat pumps less than 65,000 Btu per hour (cooling 
        capacity), single package, shall be 13.0.
          (F) For equipment manufactured on or after the later 
        of January 1, 2008, or the date six months after 
        enactment of this section, minimum heating seasonal 
        performance factor of air-cooled three-phase electric 
        central air conditioning heat pumps less than 65,000 
        Btu per hour (cooling capacity), split systems, shall 
        be 7.7.
          (G) For equipment manufactured on or after the later 
        of January 1, 2008, or the date six months after 
        enactment of this section, the minimum heating seasonal 
        performance factor of air-cooled three-phase electric 
        central air conditioning heat pumps less than 65,000 
        Btu per hour (cooling capacity), single package, shall 
        be 7.7.
  (8) Large commercial package air conditioning and heating 
equipment, excluding single package vertical air conditioners 
and single package vertical heat pumps, manufactured on or 
after January 1, 2010, shall meet the following standards:
          (A)  * * *

           *       *       *       *       *       *       *

  (9) Very large commercial package air conditioning and 
heating equipment, excluding single package vertical air 
conditioners and single package vertical heat pumps, 
manufactured on or after January 1, 2010, shall meet the 
following standards:
          (A)  * * *

           *       *       *       *       *       *       *

  (10)(A) The Secretary may establish regional standards for 
space heating and air conditioning products subject to this 
subsection. For each space heating and air conditioning 
product, the Secretary may establish a national minimum 
standard and two more stringent regional standards for regions 
determined to have significantly differing climatic conditions. 
Any standards set for any such region shall achieve the maximum 
level of energy savings that are technically feasible and 
economically justified within that region. Regional boundaries 
shall follow State borders and only include contiguous States 
(except Alaska and Hawaii), except that on the request of a 
State, the Secretary may divide that State to include a part of 
that State in each of two regions.
  (B) If the Secretary establishes regional standards, it shall 
be unlawful under section 345 to offer for sale at retail, sell 
at retail, or install noncomplying products except within the 
specified regions.
  (C) Manufacturers of space heating and air conditioning 
equipment subject to regional standards established under this 
paragraph shall obtain and retain records on the intended 
installation locations of the equipment sold, and shall make 
such records available to the Secretary on request.
  (11) Single package vertical air conditioners and single 
package vertical heat pumps manufactured on or after January 1, 
2010, shall meet the following standards:
          (A) The minimum energy efficiency ratio of single 
        package vertical air conditioners less than 65,000 Btu 
        per hour (cooling capacity), single-phase, shall be 
        9.0.
          (B) The minimum energy efficiency ratio of single 
        package vertical air conditioners less than 65,000 Btu 
        per hour (cooling capacity), three-phase, shall be 9.0.
          (C) The minimum energy efficiency ratio of single 
        package vertical air conditioners at or above 65,000 
        Btu per hour (cooling capacity) but less than 135,000 
        Btu per hour (cooling capacity), shall be 8.9.
          (D) The minimum energy efficiency ratio of single 
        package vertical air conditioners at or above 135,000 
        Btu per hour (cooling capacity) but less than 240,000 
        Btu per hour (cooling capacity), shall be 8.6.
          (E) The minimum energy efficiency ratio of single 
        package vertical heat pumps less than 65,000 Btu per 
        hour (cooling capacity), single-phase, shall be 9.0; 
        and the minimum coefficient of performance in the 
        heating mode shall be 3.0.
          (F) The minimum energy efficiency ratio of single 
        package vertical heat pumps less than 65,000 Btu per 
        hour (cooling capacity), three-phase, shall be 9.0; and 
        the minimum coefficient of performance in the heating 
        mode shall be 3.0.
          (G) The minimum energy efficiency ratio of single 
        package vertical heat pumps at or above 65,000 Btu per 
        hour (cooling capacity) but less than 135,000 Btu per 
        hour (cooling capacity), shall be 8.9; and the minimum 
        coefficient of performance in the heating mode shall be 
        3.0.
          (H) The minimum energy efficiency ratio of single 
        package vertical heat pumps at or above 135,000 Btu per 
        hour (cooling capacity) but less than 240,000 Btu per 
        hour (cooling capacity), shall be 8.6; and the minimum 
        coefficient of performance in the heating mode shall be 
        2.9.
  (12) Not later than 36 months after the date of enactment of 
this paragraph, the Secretary shall review the most recently 
published ASHRAE/IES Standard 90.1 with respect to single 
package vertical air conditioners and single package vertical 
heat pumps according to the procedures established in paragraph 
(6).
  (b) Electric Motors.--(1) [Except for definite purpose 
motors, special purpose motors, and those motors exempted by 
the Secretary under paragraph (2), each electric motor 
manufactured (alone or as a component of another piece of 
equipment) after the 60-month period beginning on the date of 
the enactment of this subsection, or in the case of an electric 
motor which requires listing or certification by a nationally 
recognized safety testing laboratory, after the 84-month period 
beginning on such date, shall have a nominal full load 
efficiency of not less than the following:

----------------------------------------------------------------------------------------------------------------
                                                                           Nominal Full-Load Efficiency
                                                                 -----------------------------------------------
                        [Number of poles                                Open Motors            Closed Motors
                                                                 -----------------------------------------------
                                                                     6       4       2       6       4       2
----------------------------------------------------------------------------------------------------------------
Motor Horsepower                                                  ......  ......  ......  ......  ......  ......
1...............................................................    80.0    82.5  ......    80.0    82.5    75.5
1.5.............................................................    84.0    84.0    82.5    85.5    84.0    82.5
2...............................................................    85.5    84.0    84.0    86.5    84.0    84.0
3...............................................................    86.5    86.5    84.0    87.5    87.5    85.5
5...............................................................    87.5    87.5    85.5    87.5    87.5    87.5
7.5.............................................................    88.5    88.5    87.5    89.5    89.5    88.5
10..............................................................    90.2    89.5    88.5    89.5    89.5    89.5
15..............................................................    90.2    91.0    89.5    90.2    91.0    90.2
20..............................................................    91.0    91.0    90.2    90.2    91.0    90.2
25..............................................................    91.7    91.7    91.0    91.7    92.4    91.0
30..............................................................    92.4    92.4    91.0    91.7    92.4    91.0
40..............................................................    93.0    93.0    91.7    93.0    93.0    91.7
50..............................................................    93.0    93.0    92.4    93.0    93.0    92.4
60..............................................................    93.6    93.6    93.0    93.6    93.6    93.0
75..............................................................    93.6    94.1    93.0    93.6    94.1    93.0
100.............................................................    94.1    94.1    93.0    94.1    94.5    93.6
125.............................................................    94.1    94.5    93.6    94.1    94.5    94.5
150.............................................................    94.5    95.0    93.6    95.0    95.0    94.5
200.............................................................    94.5    95.0    94.5    95.0    95.0   95.0]
----------------------------------------------------------------------------------------------------------------

  (A) Each general purpose electric motor (subtype I), except 
as provided in subparagraph (B), with a power rating of 1 
horsepower or greater, but not greater than 200 horsepower, 
manufactured (alone or as a component of another piece of 
equipment) after the 36-month period beginning on the date of 
enactment of the [short title], shall have a nominal full load 
efficiency not less than as defined in NEMA MG-1 (2006) Table 
12-12.
  (B) Each fire pump motor manufactured (alone or as a 
component of another piece of equipment) after the 36-month 
period beginning on the date of enactment of the [short title], 
shall have nominal full load efficiency not less than as 
defined in NEMA MG-1 (2006) Table 12-11.
  (C) Each general purpose electric motor (subtype II) with a 
power rating of 1 horsepower or greater, but not greater than 
200 horsepower, manufactured (alone or as a component of 
another piece of equipment) after the 36-month period beginning 
on the date of enactment of the [short title], shall have a 
nominal full load efficiency not less than as defined in NEMA 
MG-1 (2006) Table 12-11.
  (D) Each NEMA Design B, general purpose electric motor with a 
power rating of more than 200 horsepower, but not greater than 
500 horsepower, manufactured (alone or as a component of 
another piece of equipment) after the 36-month period beginning 
on the date of enactment of the [short title], shall have a 
nominal full load efficiency not less than as defined in NEMA 
MG-1 (2006) Table 12-11.

           *       *       *       *       *       *       *

  (f) Standby Power.--
          (1) Requirement.--Except as provided in paragraph 
        (2), any final rule adopted after July 1, 2012, to set 
        a new or revised energy efficiency standard for covered 
        equipment shall specify that covered equipment 
        manufactured on or after the effective date of such new 
        or revised standard shall, when in standby mode, 
        operate with not more than 1 watt of electric power.
          (2) Exceptions.--
                  (A) Extensions.--The Secretary may provide a 
                single extension of up to 5 years for 
                compliance with paragraph (1) with respect to a 
                covered equipment if the Secretary finds that 
                such extension is appropriate.
                  (B) Exemptions.--The Secretary may provide an 
                exemption from the requirement under paragraph 
                (1) for covered equipment, after public notice 
                and opportunity for comment, if the Secretary 
                finds that--
                          (i) achieving the requirement is not 
                        technologically feasible and 
                        economically justified for that covered 
                        equipment; or
                          (ii) such an exemption is warranted 
                        for medical or military reasons.
                Any exemption provided under this subparagraph 
                shall be reviewed at least once every 5 years.

                            TEST PROCEDURES

  Sec. 343. (a)(1) [The Secretary may conduct an evaluation of 
a class of covered equipment and may prescribe test procedures 
for such class in accordance with the provisions of this 
section] At least every 7 years the Secretary shall conduct an 
evaluation of each class of covered equipment and--
          (A) if the Secretary determines that amended test 
        procedures would more accurately or fully comply with 
        the requirements of paragraphs (2) and (3), shall 
        prescribe test procedures for such class in accordance 
        with the provisions of this section; or
          (B) shall publish notice in the Federal Register of 
        any determination not to amend a test procedure.

           *       *       *       *       *       *       *

  (9) Not later than July 1, 2009, the Secretary shall issue a 
final rule establishing test procedures for standby power 
consumption for all covered equipment, except for equipment for 
which the current test procedure already measures standby power 
consumption.

           *       *       *       *       *       *       *


         ADMINISTRATION, PENALTIES, ENFORCEMENT, AND PREEMPTION

  Sec. 345. (a) * * *
  (b)(1) The provisions of section 325(p)(5), section 326(a), 
(b), and (d), section 327(a), and sections 328 through 336 
shall apply with respect to the equipment specified in 
subparagraphs (B), (C), (D), (E), and (F) of section 340(1) to 
the same extent and in the same manner as they apply in part A. 
In applying such provisions for the purposes of such equipment, 
paragraphs (1), (2), (3), and (4) of subsection (a) shall 
apply.

           *       *       *       *       *       *       *


Part D--State Energy Conservation Plans

           *       *       *       *       *       *       *


                           GENERAL PROVISIONS

  Sec. 365. (a) * * *

           *       *       *       *       *       *       *

  (f) For the purpose of carrying out this part, there are 
authorized to be appropriated [$100,000,000 for each of the 
fiscal years 2006 and 2007 and $125,000,000 for fiscal year 
2008] $125,000,000 for each of the fiscal years 2007, 2008, 
2009, 2010, 2011, and 2012.

           *       *       *       *       *       *       *


                  Part E--Industrial energy efficiency

SEC. 371. SURVEY OF WASTE INDUSTRIAL ENERGY RECOVERY AND POTENTIAL USE.

  Congress finds that--
          (1) the Nation should encourage the use of otherwise 
        wasted energy and the development of combined heat and 
        power and other waste energy recovery projects where 
        there is wasted thermal energy in large volumes at 
        potentially useful temperatures;
          (2) such projects would increase energy efficiency 
        and lower pollution by generating power with no 
        incremental fossil fuel consumption;
          (3) because recovered waste energy and combined heat 
        and power projects are associated with end-uses of 
        thermal energy and electricity at the local level, they 
        help avoid new transmission lines, reduce line losses, 
        reduce local air pollutant emissions, and reduce 
        vulnerability to extreme weather and terrorism; and
          (4) States, localities, electric utilities, and other 
        electricity customers may benefit from private 
        investments in recovered waste energy and combined heat 
        and power projects at industrial and commercial sites 
        by avoiding generation, transmission and distribution 
        expenses, and transmission line loss expenses that may 
        otherwise be required to be recovered from ratepayers.

SEC. 372. DEFINITIONS.

  For purposes of this Part:
          (1) The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
          (2) The term ``waste energy'' means--
                  (A) exhaust heat and flared gases from any 
                industrial process;
                  (B) waste gas or industrial tail gas that 
                would otherwise be flared, incinerated or 
                vented;
                  (C) a pressure drop in any gas, excluding any 
                pressure drop to a condenser that subsequently 
                vents the resulting heat; and
                  (D) such other forms of waste energy as the 
                Administrator may identify.
          (3) The term ``recoverable waste energy'' means waste 
        energy from which electricity or useful thermal energy 
        may be recovered through modification of existing 
        facilities or addition of new facilities.
          (4) The term ``net excess power'' means, for any 
        facility, recoverable waste energy recovered in the 
        form of electricity in amounts exceeding the total 
        consumption of electricity at the specific time of 
        generation on the site where the facility is located.
          (5) The term ``useful thermal energy'' is energy in 
        the forms of direct heat, steam, hot water, or other 
        thermal forms that is used in production and beneficial 
        measures for heating, cooling, humidity control, 
        process use, or other valid thermal end-use energy 
        requirements, and for which fuel or electricity would 
        otherwise be consumed.
          (6) The term ``combined heat and power system'' means 
        a facility--
                  (A) that simultaneously and efficiently 
                produces useful thermal energy and electricity; 
                and
                  (B) that recovers not less than 60 percent of 
                the energy value in the fuel (on a lower-
                heating-value basis) in the form of useful 
                thermal energy and electricity.
          (7) The terms ``electric utility'', ``State regulated 
        electric utility'', ``nonregulated electric utility'' 
        and other terms used in this Part have the same 
        meanings as when such terms are used in title I of the 
        Public Utility Regulatory Policies Act of 1978 
        (relating to retail regulatory policies for electric 
        utilities).

SEC. 373. SURVEY AND REGISTRY.

  (a) Recoverable Waste-Energy Inventory Program.--The 
Administrator, in cooperation with State energy offices, shall 
establish a Recoverable Waste-Energy Inventory Program. The 
program shall include an ongoing survey of all major industrial 
and large commercial combustion sources in the United States 
and the sites where these are located, together with a review 
of each for quantity and quality of waste energy.
  (b) Criteria.--The Administrator shall, within 120 days after 
the enactment of this section, develop and publish proposed 
criteria subject to notice and comment, and within 270 days of 
enactment, establish final criteria, to identify and designate 
those sources and sites in the inventory under subsection (a) 
where recoverable waste energy projects or combined heat and 
power system projects may have economic feasibility with a 
payback of invested costs within 5 years or less from the date 
of first full project operation (including incentives offered 
under this Part). Such criteria will include standards that 
insure that projects proposed for inclusion in the Registry are 
not developed for the primary purpose of making sales of excess 
electric power under the regulatory treatment provided under 
this Part.
  (c) Technical Support.--The Administrator shall provide to 
owners or operators of combustion sources technical support and 
offer partial funding (up to one-half of total costs) for 
feasibility studies to confirm whether or not investment in 
recovery of waste energy or combined heat and power at that 
source would offer a payback period of 5 years or less.
  (d) Registry.--(1) The Administrator shall, within one year 
after the enactment of this section, establish a Registry of 
Recoverable Waste-energy Sources, and sites on which those 
sources are located, which meet the criteria set forth under 
subsection (b). The Administrator shall update the Registry on 
not less than a monthly basis, and make the Registry accessible 
to the public on the Environmental Protection Agency web site. 
Any State or electric utility may contest the listing of any 
source or site by submitting a petition to the Administrator.
  (2) The Administrator shall register and include on the 
Registry all sites meeting the criteria of subsection (b). The 
Administrator shall calculate the total amounts of potentially 
recoverable waste energy from sources at such sites, nationally 
and by State, and shall make such totals public, together with 
information on the air pollutant and greenhouse gas emissions 
savings that might be achieved with recovery of the waste 
energy from all sources and sites listed in the Registry.
  (3) The Administrator shall notify owners or operators of 
Recoverable Waste-Energy Sources and sites listed in the 
Registry prior to publishing the listing. The owner or operator 
of sources at such sites may elect to have detailed 
quantitative information concerning that site not made public 
by notifying the Administrator of that election. Information 
concerning that site shall be included in State totals unless 
there are fewer than 3 sites in the State.
  (4) As waste energy projects achieve successful recovery of 
waste energy, the Administrator shall remove the related sites 
or sources from the Registry, and shall designate the removed 
projects as eligible for the incentive provisions provided 
under this Part and the regulatory treatment required by this 
Part. No project shall be removed from the Registry without the 
consent of the owner or operator of the project if the owner or 
operator has submitted a petition under section 375 and such 
petition has not been acted upon or denied.
  (5) The Administrator shall not list any source constructed 
after the date of the enactment of this Part on the Registry if 
the Administrator determines that such source--
          (A) was developed for the primary purpose of making 
        sales of excess electric power under the regulatory 
        treatment provided under this Part; or
          (B) does not capture at least 60 percent of the total 
        energy value of the fuels used (on a lower-heating-
        value basis) in the form of useful thermal energy, 
        electricity, mechanical energy, chemical output, or 
        some combination of them.
  (e) Self-certification.--Owners, operators, or third-party 
developers of industrial waste-energy projects that qualify 
under standards established by the Administrator may self-
certify their sites or sources to the Administrator for 
inclusion in the Registry, subject to procedures adopted by the 
Administrator. To prevent a fraudulent listing, the sources 
shall be included on the Registry only if the Administrator 
confirms the submitted data, at the Administrator's discretion.
  (f) New Facilities.--As a new energy-consuming industrial 
facility is developed after the enactment of this Part, to the 
extent it may constitute a site with recoverable waste energy 
that may qualify for the Registry, the Administrator may elect 
to include it in the Registry at the request of its owner or 
operator or developer on a conditional basis, removing the site 
if its development ceases or it if fails to qualify for listing 
under this Part.
  (g) Optimum Means of Recovery.--For each site listed in the 
Registry, at the request of the owner or operator of the site, 
the Administrator shall offer, in cooperation with Clean Energy 
Application Centers operated by the Secretary of Energy, 
suggestions of optimum means of recovery of value from waste 
energy stream in the form of electricity, useful thermal 
energy, or other energy-related products.
  (h) Revision.--Each annual State report under section 548(a) 
of the National Energy Conservation Policy Act shall include 
the results of the survey for that State under this section.
  (i) Authorization.--There are authorized to be appropriated 
to the Administrator for the purposes of creating and 
maintaining the Registry and services authorized by this 
section not more than $1,000,000 for each of fiscal years 2008, 
2009, 2010, 2010, and 2012 and not more than $5,000,000 to the 
States to provide funding for State energy office functions 
under this section.

SEC. 374. WASTE ENERGY RECOVERY INCENTIVE GRANT PROGRAM.

  (a) Establishment of Program.--There is established in the 
Environmental Protection Agency a Waste Energy Recovery 
Incentive Grant Program to provide incentive grants to owners 
and operators of projects that successfully produce electricity 
or incremental useful thermal energy from waste energy recovery 
(and to utilities purchasing or distributing such electricity) 
and to reward States that have achieved 80 percent or more of 
identified waste-heat recovery opportunities.
  (b) Grants to Projects and Utilities.--
          (1) In general.--The Administrator shall make grants 
        to the owners or operators of waste energy recovery 
        projects, and, in the case of excess power purchased or 
        transmitted by a electric utility, to such utility. 
        Grants may only be made upon receipt of proof of waste 
        energy recovery or excess electricity generation, or 
        both, from the project in a form prescribed by the 
        Administrator, by rule.
          (2) Excess electric energy.--In the case of waste 
        energy recovery, the grants under this section shall be 
        made at the rate of $10 per megawatt hour of documented 
        electricity produced from recovered waste energy (or by 
        prevention of waste energy in the case of a new 
        facility) by the project during the first 3 calendar 
        years of such production, beginning on or after the 
        date of enactment of this Part. If the project produces 
        net excess power and an electric utility purchases or 
        transmits the excess power, 50 percent of so much of 
        such grant as is attributable to the net excess power 
        shall be paid to the electric utility purchasing or 
        transporting the net excess power.
          (3) Useful thermal energy.--In the case of waste 
        energy recovery that produces useful thermal energy 
        that is used for a purpose different from that for 
        which the project is principally designed, the grants 
        under this section shall be made to the owner or 
        operator of the waste energy recovery project at the 
        rate of $10 for each 3,412,000 Btus of such excess 
        thermal energy used for such different purpose.
  (c) Grants to States.--In the case of States that have 
achieved 80 percent or more of waste-heat recovery 
opportunities identified by the Administrator under this Part, 
the Administrator shall make grants to the States of up to 
$1,000 per Megawatt of waste-heat capacity recovered (or its 
thermal equivalent) to support State-level programs to identify 
and achieve additional energy efficiency.
  (d) Eligibility.--The Administrator shall establish rules and 
guidelines to establish eligibility for grants, shall make the 
grant program known to those listed in the Registry, and shall 
offer such grants on the basis of the merits of each project in 
recovering or preventing waste energy throughout the United 
States on an impartial, objective, and not unduly 
discriminatory basis.
  (e) Authorization.--(1) There is authorized to be 
appropriated to the Administrator $100,000,000 for fiscal year 
2008, and $200,000,000 for each of fiscal years 2009, 2010, 
2011, and 2012 for grants under subsection (b) of this section, 
and such additional amounts during those years and thereafter 
as may be necessary for administration of the Waste Energy 
Recovery Incentive Grant Program.
  (2) There is authorized to be appropriated to the 
Administrator not more than $10,000,000 for each of the first 
five fiscal years after the enactment of this Part, to be 
available until expended for purposes of grants to States under 
subsection (c).

SEC. 375. ADDITIONAL INCENTIVES FOR RECOVERY, UTILIZATION AND 
                    PREVENTION OF INDUSTRIAL WASTE ENERGY.

  (a) Consideration of Standard.--Not later than 180 days after 
the receipt by a State regulatory authority (with respect to 
each electric utility for which it has ratemaking authority), 
or nonregulated electric utility, of a request from a project 
sponsor or owner or operator, the State regulatory authority or 
nonregulated electric utility shall provide public notice and 
conduct a hearing respecting the standard established by 
subsection (b) and, on the basis of such hearing, shall 
consider and make a determination whether or not it is 
appropriate to implement such standard to carry out the 
purposes of this Part. For purposes of any such determination 
and any review of such determination in any court the purposes 
of this section supplement otherwise applicable State law. 
Nothing in this Part prohibits any State regulatory authority 
or nonregulated electric utility from making any determination 
that it is not appropriate to adopt any such standard, pursuant 
to its authority under otherwise applicable State law.
  (b) Standard for Sales of Excess Power.--For purposes of this 
section, the standard referred to in subsection (a) shall 
provide that an owner or operator of a waste energy recovery 
project identified on the Registry who generates net excess 
power shall be eligible to benefit from at least one of the 
options described in subsection (c) for disposal of the net 
excess power in accordance with the rate conditions and 
limitations described in subsection (d).
  (c) Options.--The options referred to in subsection (b) are 
as follows:
          (1) Sale of net excess power to utility.--The 
        electric utility shall purchase the net excess power 
        from the owner or operator of the eligible waste-energy 
        recovery project during the operation of the project 
        under a contract entered into for that purpose.
          (2) Transport by utility for direct sale to third 
        party.--The electric utility shall transmit the net 
        excess power on behalf of the project owner or operator 
        to up to three separate locations on that utility's 
        system for direct sale by that owner or operator to 
        third parties at such locations.
          (3) Transport over private transmission lines.--The 
        State and the electric utility shall permit, and shall 
        waive or modify such laws as would otherwise prohibit, 
        the construction and operation of private electric 
        wires constructed, owned and operated by the project 
        owner or operator, to transport such power to up to 3 
        purchasers within a 3-mile radius of the project, 
        allowing such wires to utilize or cross public rights-
        of-way, without subjecting the project to regulation as 
        a public utility, and according such wires the same 
        treatment for safety, zoning, land-use and other legal 
        privileges as apply or would apply to the utility's own 
        wires, except that--
                  (A) there shall be no grant of any power of 
                eminent domain to take or cross private 
                property for such wires, and
                  (B) such wires shall be physically segregated 
                and not interconnected with any portion of the 
                utility's system, except on the customer's side 
                of the utility's revenue meter and in a manner 
                that precludes any possible export of such 
                electricity onto the utility system, or 
                disruption of such system.
          (4) Agreed upon alternatives.--The utility and the 
        owner or operator of the project may reach agreement on 
        any alternate arrangement and its associated payments 
        or rates that is mutually satisfactory and in accord 
        with State law.
  (d) Rate Conditions and Criteria.--
          (1) In general.--The options described in paragraphs 
        (1) and (2) in subsection (c) shall be offered under 
        purchase and transport rate conditions reflecting the 
        rate components defined under paragraph (2) of this 
        subsection as applicable under the circumstances 
        described in paragraph (3) of this subsection.
          (2) Rate components.--For purposes of this section:
                  (A) Per unit distribution costs.--The term 
                ``per unit distribution costs'' means the 
                utility's depreciated book-value distribution 
                system costs divided by the previous year's 
                volume of utility electricity sales or 
                transmission at the distribution level in 
                kilowatt hours.
                  (B) Per unit distribution margin.--The term 
                ``per unit distribution margin'' means:
                          (i) In the case of a State regulated 
                        electric utility, a per-unit gross 
                        pretax profit determined by multiplying 
                        the utility's State-approved percentage 
                        rate of return for distribution system 
                        assets by the per unit distribution 
                        costs.
                          (ii) In the case of an nonregulated 
                        utility, a per unit contribution to net 
                        revenues determined by dividing the 
                        amount of any net revenue payment or 
                        contribution to the nonregulated 
                        utility's owners or subscribers in the 
                        prior year by the utility's gross 
                        revenues for the prior year to obtain a 
                        percentage (but not less than 10 
                        percent) and multiplying that 
                        percentage by the per unit distribution 
                        costs.
                  (C) Per unit transmission costs.--The term 
                ``per unit transmission costs'' means the total 
                cost of those transmission services purchased 
                or provided by a utility on a per-kilowatt-hour 
                basis as included in that utility's retail 
                rate.
          (3) Applicable rates.--
                  (A) Rates applicable to sale of net excess 
                power.--Sales made by a project owner or 
                operator under the option described in 
                subsection (c) (1) shall be paid for on a per 
                kilowatt hour basis that shall equal the full 
                undiscounted retail rate paid to the utility 
                for power purchased by such a facility minus 
                per unit distribution costs, as applicable to 
                the type of utility purchasing the power. If 
                the net excess power is made available for 
                purchase at voltages that must be transformed 
                to or from voltages exceeding 25 kilovolts to 
                be available for resale by the utility, then 
                the purchase price shall further be reduced by 
                per unit transmission costs.
                  (B) Rates applicable to transport by utility 
                for direct sale to third parties.--
                Transportation by utilities of power on behalf 
                of the owner or operator of a project under the 
                option described in subsection (c)(2) shall 
                incur a transportation rate equal to the per 
                unit distribution costs and per unit 
                distribution margin, as applicable to the type 
                of utility transporting the power. If the net 
                excess power is made available for 
                transportation at voltages that must be 
                transformed to or from voltages exceeding 25 
                kilovolts to be transported to the designated 
                third-party purchasers, then the transport rate 
                shall further be increased by per unit 
                transmission costs. In States with competitive 
                retail markets for electricity, the applicable 
                transportation rate for similar transportation 
                shall be applied in lieu of any rate calculated 
                under this paragraph.
          (4) Limitations.--(A) Any rate established for sale 
        or transportation under this section shall be modified 
        over time with changes in the electric utility's 
        underlying costs or rates, and shall reflect the same 
        time-sensitivity and billing periods as are established 
        in the retail sales or transportation rates offered by 
        the utility.
          (B) No utility shall be required to purchase or 
        transport an amount of net excess power under this 
        section that exceeds the available capacity of the 
        wires, meter, or other equipment of the electric 
        utility serving the site unless the owner or operator 
        of the project agrees to pay necessary and reasonable 
        upgrade costs.
  (e) Procedural Requirements for Consideration and 
Determination.--(1) The consideration referred to in subsection 
(b) shall be made after public notice and hearing. The 
determination referred to in subsection (b) shall be--
          (A) in writing,
          (B) based upon findings included in such 
        determination and upon the evidence presented at the 
        hearing, and
          (C) available to the public.
  (2) The Administrator may intervene as a matter of right in a 
proceeding conducted under this section and may calculate the 
energy and emissions likely to be saved by electing to adopt 
one or more of the options, as well as the costs and benefits 
to ratepayers and the utility and to advocate for the waste-
energy recovery opportunity.
  (3) Except as otherwise provided in paragraph (1), and 
paragraph (2), the procedures for the consideration and 
determination referred to in subsection (a) shall be those 
established by the State regulatory authority or the 
nonregulated electric utility. In the instance that there is 
more than one project seeking such consideration simultaneously 
in connection with the same utility, such proceeding may 
encompass all such projects, provided that full attention is 
paid to their individual circumstances and merits, and an 
individual judgment is reached with respect to each project.
  (f) Implementation.--(1) The State regulatory authority (with 
respect to each electric utility for which it has ratemaking 
authority) or nonregulated electric utility may, to the extent 
consistent with otherwise applicable State law--
          (A) implement the standard determined under this 
        section, or
          (B) decline to implement any such standard.
  (2) If a State regulatory authority (with respect to each 
electric utility for which it has ratemaking authority) or 
nonregulated electric utility declines to implement any 
standard established by this section, such authority or 
nonregulated electric utility shall state in writing the 
reasons therefor. Such statement of reasons shall be available 
to the public, and the Administrator shall include the project 
in an annual report to Congress concerning lost opportunities 
for waste-heat recovery, specifically identifying the utility 
and stating the amount of lost energy and emissions savings 
calculated. If a State regulatory authority (with respect to 
each electric utility for which it has ratemaking authority) or 
nonregulated electric utility declines to implement the 
standard established by this section, the project sponsor may 
submit a new petition under this section with respect to such 
project at any time after 24 months after the date on which the 
State regulatory authority or nonregulated utility has declined 
to implement such standard.

SEC. 376. CLEAN ENERGY APPLICATION CENTERS.

  (a) Purpose.--The purpose of this section is to rename and 
provide for the continued operation of the United States 
Department of Energy's Regional Combined Heat and Power (CHP) 
Application Centers.
  (b) Findings.--The Congress finds the Department of Energy's 
Regional Combined Heat and Power (CHP) Application Centers 
program has produced significant energy savings and climate 
change benefits and will continue to do so through the 
deployment of clean energy technologies such as Combined Heat 
and Power (CHP), recycled waste energy and biomass energy 
systems, in the industrial and commercial energy markets.
  (c) Renaming.--The Combined Heat and Power Application 
Centers at the Department of Energy are hereby be redesignated 
as Clean Energy Application Centers. Any reference in any law, 
rule or regulation or publication to the Combined Heat and 
Power Application Centers shall be treated as a reference to 
the Clean Energy Application Centers.
  (d) Relocation.--In order to better coordinate efforts with 
the separate Industrial Assessment Centers and to assure that 
the energy efficiency and, when applicable, the renewable 
nature of deploying mature clean energy technology is fully 
accounted for, the Secretary of Energy shall relocate the 
administration of the Clean Energy Application Centers to the 
Office of Energy Efficiency and Renewable Energy within the 
Department of Energy. The Office of Electricity Delivery and 
Energy Reliability shall continue to perform work on the role 
of such technology in support of the grid and its reliability 
and security, and shall assist the Clean Energy Application 
Centers in their work with regard to the grid and with electric 
utilities.
  (e) Grants.--
          (1) In general.--The Secretary of Energy shall make 
        grants to universities, research centers, and other 
        appropriate institutions to assure the continued 
        operations and effectiveness of 8 Regional Clean Energy 
        Application Centers in each of the following regions 
        (as designated for such purposes as of the date of the 
        enactment of this section):
                  (A) Gulf Coast.
                  (B) Intermountain.
                  (C) Mid-Atlantic.
                  (D) Midwest.
                  (E) Northeast.
                  (F) Northwest.
                  (G) Pacific.
                  (H) Southeast.
          (2) Establishment of goals and compliance.--In making 
        grants under this section, the Secretary shall ensure 
        that sufficient goals are established and met by each 
        Center throughout the program duration concerning 
        outreach and technology deployment.
  (f) Activities.--Each Clean Energy Application Center shall 
operate a program to encourage deployment of clean energy 
technologies through education and outreach to building and 
industrial professionals, and to other individuals and 
organizations with an interest in efficient energy use. In 
addition, the Centers shall provide project specific support to 
building and industrial professionals through assessments and 
advisory activities. Funds made available under this section 
may be used for the following activities:
          (1) Developing and distributing informational 
        materials on clean energy technologies, including 
        continuation of the eight existing Web sites.
          (2) Developing and conducting target market 
        workshops, seminars, internet programs and other 
        activities to educate end users, regulators, and 
        stakeholders in a manner that leads to the deployment 
        of clean energy technologies.
          (3) Providing or coordinating onsite assessments for 
        sites and enterprises that may consider deployment of 
        clean energy technology.
          (4) Performing market research to identify high 
        profile candidates for clean energy deployment.
          (5) Providing consulting support to sites considering 
        deployment of clean energy technologies.
          (6) Assisting organizations developing clean energy 
        technologies to overcome barriers to deployment.
          (7) Assisting companies and organizations with 
        performance evaluations of any clean energy technology 
        implemented.
  (g) Duration.--A grant awarded under this section shall be 
for a period of 5 years. each grant shall be evaluated annually 
for its continuation based on its activities and results.
  (h) Authorization.--There is authorized to be appropriated 
for purposes of this section the sum of $10,000,000 for each of 
fiscal years 2008, 2009, 2010, 2011, and 2012.
                              ----------                              


ENERGY POLICY ACT OF 2005

           *       *       *       *       *       *       *


TITLE I--ENERGY EFFICIENCY

           *       *       *       *       *       *       *


Subtitle C--Energy Efficient Products

           *       *       *       *       *       *       *


SEC. 135. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL PRODUCTS.

  (a) Definitions.--Section 321 of the Energy Policy and 
Conservation Act (42 U.S.C. 6291) is amended--
          (1) in paragraph (29)--
                  (A) in subparagraph (D)--
                          (i) * * *
                          (ii) in clause (ii), by striking 
                        ``[C78.1-1978(R1984)] C78.3-
                        1978(R1984)'' and inserting ``C78.81-
                        2003 (Data Sheet 7881-ANSI-3007-1)''; 
                        and

           *       *       *       *       *       *       *

                              ----------                              


TITLE 40, UNITED STATES CODE

           *       *       *       *       *       *       *


PART A--GENERAL

           *       *       *       *       *       *       *


SUBCHAPTER VI--MISCELLANEOUS

           *       *       *       *       *       *       *


                    CHAPTER 33--INSPECTION GENERALLY

Sec.
3301.  Vessels subject to inspection.
     * * * * * * *
[3313.  Compliance with certificate of inspection.
[3314.  Expiration of certificate of inspection.
[3315.  Disclosure of defects and protection of informants.]
3313.  Use of energy efficient lighting fixtures and bulbs.
3314.  Delegation.
3315.  Report to Congress.
3316.  Certain authority not affected.

           *       *       *       *       *       *       *


Sec. 3313. Use of energy efficient lighting fixtures and bulbs

  (a) Construction and Alteration of Public Buildings.--Each 
public building constructed or significantly altered by the 
Administrator of General Services shall be equipped, to the 
maximum extent feasible as determined by the Administrator, 
with lighting fixtures and bulbs that are energy efficient.
  (b) Maintenance of Public Buildings.--Each lighting fixture 
or bulb that is replaced by the Administrator in the normal 
course of maintenance of public buildings shall be replaced, to 
the maximum extent feasible as determined by the Administrator, 
with a lighting fixture or bulb that is energy efficient.
  (c) Considerations.--In making a determination under this 
section concerning the feasibility of installing a lighting 
fixture or bulb that is energy efficient, the Administrator 
shall consider--
          (1) the life cycle cost effectiveness of the fixture 
        or bulb;
          (2) the compatibility of the fixture or bulb with 
        existing equipment;
          (3) whether use of the fixture or bulb could result 
        in interference with productivity;
          (4) the aesthetics relating to use of the fixture or 
        bulb; and
          (5) such other factors as the Administrator 
        determines appropriate.
  (d) Energy Star.--A lighting fixture or bulb shall be treated 
as being energy efficient for purposes of this section if--
          (1) the fixture or bulb is certified under the Energy 
        Star program established by section 324A of the Energy 
        Policy and Conservation Act (42 U.S.C. 6294a);
          (2) in the case of all LED luminaires, lamps, and 
        systems whose efficacy (lumens per watt) and Color 
        Rendering Index (CRI) meet the requirements for minimum 
        luminaire efficacy and CRI for the Energy Star 
        certification, as verified by an independent third-
        party testing laboratory that conducts its tests 
        according to the procedures and recommendations of the 
        Illuminating Engineering Society of North America, even 
        if these luminaires, lamps, and systems have not 
        received such certification; or
          (3) the Administrator has otherwise determined that 
        the fixture or bulb is energy efficient.
  (e) Significant Alterations.--A public building shall be 
treated as being significantly altered for purposes of 
subsection (a) if the alteration is subject to congressional 
approval under section 3307.
  (f) Effective Date.--The requirements of subsections (a) and 
(b) shall take effect one year after the date of enactment of 
this subsection.

Sec. [3313.] 3314. Delegation

  (a)  * * *

           *       *       *       *       *       *       *


Sec. [3314.] 3315. Report to Congress

  (a)  * * *

           *       *       *       *       *       *       *


Sec. [3315.] 3316. Certain authority not affected

  This chapter does not limit or repeal the authority conferred 
by law on the United States Postal Service.

           *       *       *       *       *       *       *

                              ----------                              


ENERGY CONSERVATION AND PRODUCTION ACT

           *       *       *       *       *       *       *


TITLE III--ENERGY CONSERVATION STANDARDS FOR NEW BUILDINGS

           *       *       *       *       *       *       *


                              DEFINITIONS

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

           *       *       *       *       *       *       *

          (17) The term ``IECC'' means the International Energy 
        Conservation Code.

[SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.

  [(a) Consideration and Determination Respecting Residential 
Building Energy Codes.--(1) Not later than 2 years after the 
date of the enactment of the Energy Policy Act of 1992, each 
State shall certify to the Secretary that it has reviewed the 
provisions of its residential building code regarding energy 
efficiency and made a determination as to whether it is 
appropriate for such State to revise such residential building 
code provisions to meet or exceed CABO Model Energy Code, 1992.
  [(2) The determination referred to in paragraph (1) shall 
be--
          [(A) made after public notice and hearing;
          [(B) in writing;
          [(C) based upon findings included in such 
        determination and upon the evidence presented at the 
        hearing; and
          [(D) available to the public.
  [(3) Each State may, to the extent consistent with otherwise 
applicable State law, revise the provisions of its residential 
building code regarding energy efficiency to meet or exceed 
CABO Model Energy Code, 1992, or may decline to make such 
revisions.
  [(4) If a State makes a determination under paragraph (1) 
that it is not appropriate for such State to revise its 
residential building code, such State shall submit to the 
Secretary, in writing, the reasons for such determination, and 
such statement shall be available to the public.
  [(5)(A) Whenever CABO Model Energy Code, 1992, (or any 
successor of such code) is revised, the Secretary shall, not 
later than 12 months after such revision, determine whether 
such revision would improve energy efficiency in residential 
buildings. The Secretary shall publish notice of such 
determination in the Federal Register.
  [(B) If the Secretary makes an affirmative determination 
under subparagraph (A), each State shall, not later than 2 
years after the date of the publication of such determination, 
certify that it has reviewed the provisions of its residential 
building code regarding energy efficiency and made a 
determination as to whether it is appropriate for such State to 
revise such residential building code provisions to meet or 
exceed the revised code for which the Secretary made such 
determination.
  [(C) Paragraphs (2), (3), and (4) shall apply to any 
determination made under subparagraph (B).
  [(b) Certification of Commercial Building Energy Code 
Updates.--(1) Not later than 2 years after the date of the 
enactment of the Energy Policy Act of 1992, each State shall 
certify to the Secretary that it has reviewed and updated the 
provisions of its commercial building code regarding energy 
efficiency. Such certification shall include a demonstration 
that such State's code provisions meet or exceed the 
requirements of ASHRAE Standard 90.1-1989.
  [(2)(A) Whenever the provisions of ASHRAE Standard 90.1-1989 
(or any successor standard) regarding energy efficiency in 
commercial buildings are revised, the Secretary shall, not 
later than 12 months after the date of such revision, determine 
whether such revision will improve energy efficiency in 
commercial buildings. The Secretary shall publish a notice of 
such determination in the Federal Register.
  [(B)(i) If the Secretary makes an affirmative determination 
under subparagraph (A), each State shall, not later than 2 
years after the date of the publication of such determination, 
certify that it has reviewed and updated the provisions of its 
commercial building code regarding energy efficiency in 
accordance with the revised standard for which such 
determination was made. Such certification shall include a 
demonstration that the provisions of such State's commercial 
building code regarding energy efficiency meet or exceed such 
revised standard.
  [(ii) If the Secretary makes a determination under 
subparagraph (A) that such revised standard will not improve 
energy efficiency in commercial buildings, State commercial 
building code provisions regarding energy efficiency shall meet 
or exceed ASHRAE Standard 90.1-1989, or if such standard has 
been revised, the last revised standard for which the Secretary 
has made an affirmative determination under subparagraph (A).
  [(c) Extensions.--The Secretary shall permit extensions of 
the deadlines for the certification requirements under 
subsections (a) and (b) if a State can demonstrate that it has 
made a good faith effort to comply with such requirements and 
that it has made significant progress in doing so.
  [(d) Technical Assistance.--The Secretary shall provide 
technical assistance to States to implement the requirements of 
this section, and to improve and implement State residential 
and commercial building energy efficiency codes or to otherwise 
promote the design and construction of energy efficient 
buildings.
  [(e) Availability of Incentive Funding.--(1) The Secretary 
shall provide incentive funding to States to implement the 
requirements of this section, and to improve and implement 
State residential and commercial building energy efficiency 
codes, including increasing and verifying compliance with such 
codes. In determining whether, and in what amount, to provide 
incentive funding under this subsection, the Secretary shall 
consider the actions proposed by the State to implement the 
requirements of this section, to improve and implement 
residential and commercial building energy efficiency codes, 
and to promote building energy efficiency through the use of 
such codes.
  [(2) Additional funding shall be provided under this 
subsection for implementation of a plan to achieve and document 
at least a 90 percent rate of compliance with residential and 
commercial building energy efficiency codes, based on energy 
performance--
          [(A) to a State that has adopted and is implementing, 
        on a statewide basis--
                  [(i) a residential building energy efficiency 
                code that meets or exceeds the requirements of 
                the 2004 International Energy Conservation 
                Code, or any succeeding version of that code 
                that has received an affirmative determination 
                from the Secretary under subsection (a)(5)(A); 
                and
                  [(ii) a commercial building energy efficiency 
                code that meets or exceeds the requirements of 
                the ASHRAE Standard 90.1-2004, or any 
                succeeding version of that standard that has 
                received an affirmative determination from the 
                Secretary under subsection (b)(2)(A); or
          [(B) in a State in which there is no statewide energy 
        code either for residential buildings or for commercial 
        buildings, to a local government that has adopted and 
        is implementing residential and commercial building 
        energy efficiency codes, as described in subparagraph 
        (A).
  [(3) Of the amounts made available under this subsection, the 
Secretary may use $500,000 for each fiscal year to train State 
and local officials to implement codes described in paragraph 
(2).
  [(4)(A) There are authorized to be appropriated to carry out 
this subsection--
          [(i) $25,000,000 for each of fiscal years 2006 
        through 2010; and
          [(ii) such sums as are necessary for fiscal year 2011 
        and each fiscal year thereafter.
  [(B) Funding provided to States under paragraph (2) for each 
fiscal year shall not exceed one-half of the excess of funding 
under this subsection over $5,000,000 for the fiscal year.]

SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.

  (a) Updating National Model Building Energy Codes.--(1) The 
Secretary shall support updating the national model building 
energy codes and standards at least every three years to 
achieve overall energy savings, compared to the 2006 IECC for 
residential buildings and ASHRAE Standard 90.1 2004 for 
commercial buildings, of at least--
          (A) 30 percent by 2010;
          (B) 50 percent by 2020; and
          (C) targets to be set by the Secretary in 
        intermediate and subsequent years, at the maximum level 
        of energy efficiency that is technologically feasible 
        and life-cycle cost effective.
  (2)(A) Whenever the provisions of the IECC or ASHRAE Standard 
90.1 regarding building energy use are revised, the Secretary 
shall, not later than 6 months after the date of such revision, 
determine--
          (i) whether such revision will improve energy 
        efficiency in buildings; and
          (ii) whether such revision will meet the targets 
        under paragraph (1).
  (B) If the Secretary makes a determination under subparagraph 
(A)(ii) that a code or standard does not meet the targets under 
paragraph (1), or if a national model code or standard is not 
updated for more than three years, then the Secretary shall 
within 12 months propose a modified code or standard that meets 
such targets. The modified code or standard shall serve as the 
baseline for the next determination under subparagraph (A)(i).
  (C) The Secretary shall provide the opportunity for public 
comment on targets, determinations, and modified codes and 
standards under this subsection, and shall publish notice of 
targets, determinations, and modified codes and standards under 
this subsection in the Federal Register.
  (b) State Certification of Building Energy Code Updates.--(1) 
Not later than 2 years after the date of enactment of the 
[short title], each State shall certify to the Secretary that 
it has reviewed and updated the provisions of its residential 
and commercial building codes regarding energy efficiency. Such 
certification shall include a demonstration that such State's 
code provisions meet or exceed the 2006 IECC for residential 
buildings and the ASHRAE Standard 90.1-2004 for commercial 
buildings, or achieve equivalent or greater energy savings.
  (2)(A) If the Secretary makes an affirmative determination 
under subsection (a)(2)(A)(i) or proposes a modified code or 
standard under subsection (a)(2)(B), each State shall within 2 
years certify that it has reviewed and updated the provisions 
of its building code regarding energy efficiency. Such 
certification shall include a demonstration that such State's 
code provisions meet or exceed the revised code or standard, or 
achieve equivalent or greater energy savings.
  (B) If the Secretary fails to make a determination under 
subsection (a)(2)(A)(i) by the date specified in subsection 
(a)(2), or makes a negative determination, each State shall 
within 2 years after the specified date or the date of the 
determination, certify that it has reviewed the revised code or 
standard, and updated the provisions of its building code 
regarding energy efficiency to meet or exceed any provisions 
found to improve energy efficiency in buildings, or to achieve 
equivalent or greater energy savings in other ways.
  (c) State Certification of Compliance with Building Codes.--
(1) Each State shall, not later than 3 years after a 
certification under subsection (b), certify that it has 
achieved compliance with the certified building energy code. 
Such certification shall include documentation of the rate of 
compliance based on independent inspections of a random sample 
of the new and renovated buildings covered by the code in the 
preceding year.
  (2) A State shall be considered to achieve compliance under 
paragraph (1) if--
          (A) at least 90 percent of new and renovated 
        buildings covered by the code in the preceding year 
        substantially meet all the requirements of the code; or
          (B) the estimated excess energy use of new and 
        renovated buildings that did not meet the code in the 
        preceding year, compared to a baseline of comparable 
        buildings that meet the code, is not more than 10 
        percent of the estimated energy use of all new and 
        renovated buildings covered by the code in the 
        preceding year.
  (d) Failure to Meet Deadlines.--(1) The Secretary shall 
permit extensions of the deadlines for the certification 
requirements under subsections (b) and (c) of this section for 
up to 1 year if a State can demonstrate that it has made a good 
faith effort to comply with such requirements and that it has 
made significant progress in doing so.
  (2) Any State for which the Secretary has not accepted a 
certification by a deadline under subsection (b) or (c) of this 
section, with any extension granted under paragraph (1), is out 
of compliance with this section.
  (3) In any State that is out of compliance with this section, 
a local government may be in compliance with this section by 
meeting the certification requirements under subsections (b) 
and (c) of this section.
  (e) Technical Assistance.--(1) The Secretary shall provide 
technical assistance, including building energy analysis and 
design tools, building demonstrations, and design assistance 
and training to enable the national model building energy codes 
and standards to meet the targets in subsection (a)(1).
  (2) The Secretary shall provide technical assistance to 
States to implement the requirements of this section, including 
procedures for States to demonstrate that their code provisions 
achieve equivalent or greater energy savings than the national 
model codes and standards, and to improve and implement State 
residential and commercial building energy efficiency codes or 
to otherwise promote the design and construction of energy 
efficient buildings.
  (f) Availability of Incentive Funding.--(1) The Secretary 
shall provide incentive funding to States to implement the 
requirements of this section, and to improve and implement 
State residential and commercial building energy efficiency 
codes, including increasing and verifying compliance with such 
codes. In determining whether, and in what amount, to provide 
incentive funding under this subsection, the Secretary shall 
consider the actions proposed by the State to implement the 
requirements of this section, to improve and implement 
residential and commercial building energy efficiency codes, 
and to promote building energy efficiency through the use of 
such codes.
  (2) Additional funding shall be provided under this 
subsection for implementation of a plan to achieve and document 
at least a 90 percent rate of compliance with residential and 
commercial building energy efficiency codes, based on energy 
performance--
          (A) to a State that has adopted and is implementing, 
        on a Statewide basis--
                  (i) a residential building energy efficiency 
                code that meets or exceeds the requirements of 
                the 2006 IECC, or any succeeding version of 
                that code that has received an affirmative 
                determination from the Secretary under 
                subsection (a)(2)(A)(i); and
                  (ii) a commercial building energy efficiency 
                code that meets or exceeds the requirements of 
                the ASHRAE Standard 90.1-2004, or any 
                succeeding version of that standard that has 
                received an affirmative determination from the 
                Secretary under subsection (a)(2)(A)(i); or
          (B) in a State in which there is no Statewide energy 
        code either for residential buildings or for commercial 
        buildings, or where State codes fail to comply with 
        subparagraph (A), to a local government that has 
        adopted and is implementing residential and commercial 
        building energy efficiency codes, as described in 
        subparagraph (A).
  (3) Of the amounts made available under this subsection, the 
Secretary may use amounts required, not exceeding $500,000 for 
each State, to train State and local officials to implement 
codes described in paragraph (2).
  (4)(A) There are authorized to be appropriated to carry out 
this subsection--
          (i) $25,000,000 for each of fiscal years 2008 through 
        2012; and
          (ii) such sums as are necessary for fiscal year 2013 
        and each fiscal year thereafter.
  (B) Funding provided to States under paragraph (2) for each 
fiscal year shall not exceed one-half of the excess of funding 
under this subsection over $5,000,000 for the fiscal year.

           *       *       *       *       *       *       *


  TITLE IV--ENERGY CONSERVATION AND RENEWABLE-RESOURCE ASSISTANCE FOR 
EXISTING BUILDINGS

           *       *       *       *       *       *       *


Part A--Weatherization Assistance for Low-Income Persons

           *       *       *       *       *       *       *


                    AUTHORIZATION OF APPROPRIATIONS

  Sec. 422. For the purpose of carrying out the weatherization 
program under this part, there are authorized to be 
appropriated [$500,000,000 for fiscal year 2006, $600,000,000 
for fiscal year 2007, and $700,000,000 for fiscal year 2008] 
$600,000,000 for fiscal year 2007, and $750,000,000 for each of 
fiscal years 2008, 2009, 2010, 2011, and 2012. From those sums, 
the Secretary is authorized to initiate an Alternative Delivery 
System Pilot Project to examine options for decreasing energy 
consumption associated with heating and cooling while 
increasing household participation by focusing on key energy 
saving components. Alternative Delivery System Pilot Projects 
should be undertaken in both hot and cold urban areas.

           *       *       *       *       *       *       *

                              ----------                              


NATIONAL ENERGY CONSERVATION POLICY ACT

           *       *       *       *       *       *       *


TITLE V--FEDERAL ENERGY INITIATIVE

           *       *       *       *       *       *       *


PART 3--FEDERAL ENERGY MANAGEMENT

           *       *       *       *       *       *       *


SEC. 543. ENERGY MANAGEMENT REQUIREMENTS.

  (a) * * *

           *       *       *       *       *       *       *

  (f) Use of Energy and Water Efficiency Measures in Federal 
Buildings.--
          (1) Facility energy managers.--
                  (A) In general.--Each federal agency shall 
                designate a manager responsible for 
                implementing this subsection and reducing 
                energy use at each building or facility that 
                meets criteria under subparagraph (B).
                  (B) Covered facilities.--The Secretary shall 
                develop criteria, after consultation with 
                affected agencies, energy efficiency advocates, 
                and energy and utility service providers, that 
                cover buildings and facilities, including 
                central utility plants and distribution systems 
                and other energy intensive operations, 
                comprising at least two-thirds of total Federal 
                building and facility energy use.
          (2) Energy and water evaluations and commissioning.--
                  (A) Evaluations.--Not later than 18 months 
                after the date of enactment of this subsection, 
                and every 5 years thereafter, each energy 
                manager shall complete a comprehensive energy 
                and water evaluation for each building or 
                facility that meets criteria under paragraph 
                (1)(B).
                  (B) Recommissioning and retrofitting.--As 
                part of the evaluation under subparagraph (A) 
                or on the same schedule the energy manager 
                shall recommission and retrofit each such 
                building and facility if applicable.
          (3) Implementation of identified energy and water 
        efficiency measures.--
                  (A) In general.--Not later than 2 years after 
                the completion of each evaluation under 
                paragraph (1), each energy manager--
                          (i) shall fully implement each energy 
                        and water-saving measure identified in 
                        the evaluation conducted under 
                        paragraph (2) that is life-cycle cost-
                        effective and has a 12-year or shorter 
                        simple payback period;
                          (ii) may implement any energy or 
                        water-saving measure that the Federal 
                        agency identified in the evaluation 
                        conducted under paragraph (1) that is 
                        life-cycle cost-effective and has 
                        longer than a 12-year simple payback 
                        period; and
                          (iii) may bundle individual measures 
                        of varying paybacks together into 
                        combined projects.
                  (B) Payback period.--For the purpose of 
                subparagraph (A), the simple payback period of 
                a measure shall be obtained by dividing--
                          (i) the estimated initial 
                        implementation cost of the measure 
                        (other than financing costs); by
                          (ii) the annual cost savings from the 
                        measure.
                  (C) Cost savings.--For the purpose of 
                subparagraph (B), cost savings shall include 
                net savings in estimated--
                          (i) energy and water costs; and
                          (ii) operations, maintenance, repair, 
                        replacement, and other direct costs.
                  (D) Exceptions.--The Secretary may modify or 
                make exceptions to the calculation of a 12-year 
                simple payback under this paragraph in the 
                guidelines issued by the Secretary under 
                paragraph (5).
                  (E) Life-cycle cost-effective.--For the 
                purpose of subparagraph (A), determination of 
                whether a measure is life-cycle cost-effective 
                shall use methods and procedures developed 
                pursuant to section 544.
          (4) Follow-up on implemented measures.--For each 
        measure implemented under paragraph (3), each energy 
        manager shall ensure that--
                  (A) equipment, including building and 
                equipment controls, is fully commissioned at 
                acceptance to be operating at design 
                specifications;
                  (B) a plan for appropriate operations, 
                maintenance, and repair of the equipment is in 
                place at acceptance and is followed;
                  (C) equipment and system performance is 
                measured during its entire life to ensure 
                proper operations, maintenance, and repair; and
                  (D) energy and water savings are measured and 
                verified.
          (5) Guidelines.--
                  (A) In general.--The Secretary shall issue 
                guidelines and necessary criteria that each 
                Federal agency shall follow for implementation 
                of--
                          (i) paragraphs (1) and (2) not later 
                        than 180 days after the date of 
                        enactment of this subsection; and
                          (ii) paragraphs (3) and (4) not later 
                        than 1 year after the date of enactment 
                        of this subsection.
                  (B) Relationship to funding source.--The 
                guidelines issued by the Secretary under 
                subparagraph (A) shall be appropriate and 
                uniform for measures funded with each type of 
                funding made available under paragraph (9), but 
                may distinguish between different types of 
                measures project size, and other criteria the 
                Secretary determines are relevant.
          (6) Web-based certification.--
                  (A) In general.--For each building or 
                facility that meets the criteria established by 
                the Secretary under paragraph (1), the energy 
                manager shall use the web-based tracking system 
                under subparagraph (B) to certify compliance 
                with the requirements for--
                          (i) energy and water evaluations and 
                        recommissioning and retrofitting under 
                        paragraph (2);
                          (ii) implementation of identified 
                        energy and water measures under 
                        paragraph (3); and
                          (iii) follow-up on implemented 
                        measures under paragraph (4).
                  (B) Deployment.--
                          (i) In general.--Not later than 1 
                        year after the date of enactment of 
                        this subsection, the Secretary shall 
                        develop and deploy the web-based 
                        tracking system required under this 
                        paragraph in a manner that tracks, at a 
                        minimum--
                                  (I) the covered buildings and 
                                facilities;
                                  (II) the status of meeting 
                                the requirements specified in 
                                subparagraph (A);
                                  (III) the estimated cost and 
                                savings for measures required 
                                to be implemented in a building 
                                or facility; and
                                  (IV) the measured savings and 
                                persistence of savings for 
                                implemented measures.
                          (ii) Ease of compliance.--The 
                        Secretary shall ensure that energy 
                        manager compliance with the 
                        requirements in this paragraph, to the 
                        greatest extent practicable, can be 
                        accomplished with the use of 
                        streamlined procedures, and templates 
                        that minimize the time demands on 
                        Federal employees.
                  (C) Availability.--
                          (i) In general.--Subject to clause 
                        (ii), the Secretary shall make the web-
                        based tracking system required under 
                        this paragraph available to Congress, 
                        other Federal agencies, and the public 
                        through the Internet.
                          (ii) Exemptions.--At the request of a 
                        Federal agency, the Secretary may 
                        exempt specific data for specific 
                        buildings from disclosure under clause 
                        (i) for national security purposes.
          (7) Benchmarking of federal facilities.--
                  (A) In general.--The energy manager shall 
                enter energy use data for each building or 
                facility that meets the criteria established by 
                the Secretary under paragraph (1) into a 
                building energy use benchmarking system, such 
                as the Energy Star Portfolio Manager.
                  (B) System and guidance.--Not later than 1 
                year after the date of enactment of this 
                subsection, the Secretary shall--
                          (i) select or develop the building 
                        energy use benchmarking system required 
                        under this paragraph for each type of 
                        building; and
                          (ii) issue guidance for use of the 
                        system.
          (8) Federal agency scorecards.--
                  (A) In general.--The Director of the Office 
                of Management and Budget shall issue semiannual 
                scorecards for energy management activities 
                carried out by each Federal agency that 
                includes--
                          (i) summaries of the status of 
                        implementing the various requirements 
                        of the agency and its energy managers 
                        under this subsection; and
                          (ii) any other means of measuring 
                        performance that the Director considers 
                        appropriate.
                  (B) Availability.--The Director shall make 
                the scorecards required under this paragraph 
                available to Congress, other Federal agencies, 
                and the public through the Internet.
          (9) Funding and implementation.--
                  (A) Authorization of appropriations.--There 
                are authorized to be appropriated such sums as 
                are necessary to carry out this subsection.
                  (B) Funding options.--
                          (i) In general.--To carry out this 
                        subsection, a Federal agency may use 
                        any combination of--
                                  (I) appropriated funds made 
                                available under subparagraph 
                                (A); and
                                  (II) private financing, 
                                including financing available 
                                through energy savings 
                                performance contracts or 
                                utility energy service 
                                contracts.
                          (ii) Combined funding for same 
                        measure.--A Federal agency may use any 
                        combination of appropriated funds and 
                        private financing described in clause 
                        (i) to carry out the same measure under 
                        this subsection, with proportional 
                        allocation for any energy and water 
                        savings.
                          (iii) Lack of appropriated funds.--
                        Since measures may be carried out using 
                        private financing described in clause 
                        (i), a lack of available appropriations 
                        shall not be considered a sufficient 
                        reason for the failure of a Federal 
                        agency to comply with this subsection.
                  (C) Implementation.--Each Federal agency may 
                implement the requirements under this 
                subsection itself or may contract out 
                performance of some or all of the requirements.
          (10) Rule of construction.--This subsection shall not 
        be construed either to require or to obviate any 
        contractor savings guarantees.

           *       *       *       *       *       *       *


SEC. 548. REPORTS.

  (a) Reports to the Secretary.--Each agency shall transmit a 
report to the Secretary, at times specified by the Secretary 
but at least annually, with complete information on its 
activities under this part, including information on--
          (1) * * *
          (2) the procedures being used by the agency pursuant 
        to section 546(a)(2), the number of contracts entered 
        into by such agency under title VIII of this Act, the 
        energy and cost savings that have resulted from such 
        contracts and any termination penalty exposure, the use 
        of such cost savings under section 546(c), and any 
        problem encountered in entering into such contracts and 
        otherwise implementing section 546.

           *       *       *       *       *       *       *


            TITLE VIII--ENERGY SAVINGS PERFORMANCE CONTRACTS

SEC. 801. AUTHORITY TO ENTER INTO CONTRACTS.

  (a) In General.--(1) * * *
  (2)(A) * * *

           *       *       *       *       *       *       *

  (D) A Federal agency may enter into a multiyear contract 
under this title for a period not to exceed 25 years beginning 
on the date of the delivery order, without funding of 
cancellation charges before cancellation, if--
          (i) such contract was awarded in a competitive manner 
        pursuant to subsection (b)(2), using procedures and 
        methods established under this title;
          (ii) funds are available and adequate for payment of 
        the costs of such contract for the first fiscal year; 
        and
          [(iii) 30 days before the award of any such contract 
        that contains a clause setting forth a cancellation 
        ceiling in excess of $10,000,000, the head of such 
        agency gives written notification of such proposed 
        contract and of the proposed cancellation ceiling for 
        such contract to the appropriate authorizing and 
        appropriating committees of the Congress; and]
          [(iv)] (iii) such contract is governed by part 17.1 
        of the Federal Acquisition Regulation promulgated under 
        section 25 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 421) or the applicable rules promulgated 
        under this title.
  (E) Separate contracts.--In carrying out a contract under 
this title, a Federal agency may--
          (i) enter into a separate contract for energy 
        services and conservation measures under the contract; 
        and
          (ii) provide all or part of the financing necessary 
        to carry out the contract.
  (F) Promotion of contracts.--In carrying out this section, a 
Federal agency shall not--
          (i) establish a Federal agency policy that limits the 
        maximum contract term under subparagraph (D) to a 
        period shorter than 25 years; or
          (ii) limit the total amount of obligations under 
        energy savings performance contracts or other private 
        financing of energy savings measures.
  (G) Measurement and verification requirements for private 
financing.--
          (i) In general.--The evaluations and savings 
        measurement and verification required under paragraphs 
        (1) and (3) of section 543(f) shall be used by a 
        Federal agency to meet the requirements for--
                  (I) in the case of energy savings performance 
                contracts, the need for energy audits, 
                calculation of energy savings, and any other 
                evaluation of costs and savings needed to 
                implement the guarantee of savings under this 
                section; and
                  (II) in the case of utility energy service 
                contracts, needs that are similar to the 
                purposes described in subclause (I).
          (ii) Modification of existing contracts.--Not later 
        than 180 days after the date of enactment of this 
        subparagraph, each Federal agency shall, to the maximum 
        extent practicable, modify any indefinite delivery and 
        indefinite quantity energy savings performance 
        contracts, and other indefinite delivery and indefinite 
        quantity contracts using private financing, to conform 
        to the amendments made by subtitle G of title I of the 
        short title.

           *       *       *       *       *       *       *

  [(c) Sunset and Reporting Requirements.--The authority to 
enter into new contracts under this section shall cease to be 
effective on October 1, 2016.]

           *       *       *       *       *       *       *


SEC. 804. DEFINITIONS.

   For purposes of this title, the following definitions apply:
          (1) * * *
          (2) The term ``energy savings'' [means a reduction]
                  (A) a reduction in the cost of energy, water, 
                or wastewater treatment, from a base cost 
                established through a methodology set forth in 
                the contract, used in an existing federally 
                owned building or buildings or other federally 
                owned facilities as a result of--
                          [(A)] (i) the lease or purchase of 
                        operating equipment, improvements, 
                        altered operation and maintenance, or 
                        technical services;
                          [(B)] (ii) the increased efficient 
                        use of existing energy sources by 
                        cogeneration or heat recovery, 
                        excluding any cogeneration process for 
                        other than a federally owned building 
                        or buildings or other federally owned 
                        facilities; or
                          [(C)] (iii) the increased efficient 
                        use of existing water sources in either 
                        interior or exterior applications[.];
                  (B) the increased efficient use of an 
                existing energy source by cogeneration or heat 
                recovery, and installation of renewable energy 
                systems;
                  (C) if otherwise authorized by Federal or 
                State law (including regulations), the sale or 
                transfer of electrical or thermal energy 
                generated onsite but in excess of Federal 
                needs, to utilities or non-Federal energy 
                users; and
                  (D) the increased efficient use of existing 
                water sources in interior or exterior 
                applications.

           *       *       *       *       *       *       *

                              ----------                              


TITLE 10, UNITED STATES CODE

           *       *       *       *       *       *       *


Subtitle A--General Military Law

           *       *       *       *       *       *       *


PART IV--SERVICE, SUPPLY, AND PROCUREMENT

           *       *       *       *       *       *       *


CHAPTER 173--ENERGY SECURITY

           *       *       *       *       *       *       *


SUBCHAPTER I--ENERGY SECURITY ACTIVITIES

           *       *       *       *       *       *       *


Sec. 2913. Energy savings contracts and activities

  (a) * * *

           *       *       *       *       *       *       *

  [(e) Congressional Notification of Cancellation Ceiling for 
Energy Savings Performance Contracts.--When a decision is made 
to award an energy savings performance contract that contains a 
clause setting forth a cancellation ceiling in excess of 
$7,000,000, the Secretary of Defense shall submit to the 
appropriate committees of Congress written notification of the 
proposed contract and of the proposed cancellation ceiling for 
the contract. The notification shall include the justification 
for the proposed cancellation ceiling. The contract may then be 
awarded only after the end of the 30-day period beginning on 
the date the notification is received by such committees or, if 
earlier, the end of the 15-day period beginning on the date on 
which a copy of the notification is provided in an electronic 
medium pursuant to section 480 of this title.]

           *       *       *       *       *       *       *


   DISSENTING VIEWS OF REPRESENTATIVES JOE BARTON, RALPH M. HALL, J. 
 DENNIS HASTERT, ED WHITFIELD, BARBARA CUBIN, JOHN SHADEGG, JOSEPH R. 
    PITTS, SUE MYRICK, AND JOHN SULLIVAN ON ENERGY COMMITTEE PRINT 1

    Committee Print 1, marked up on June 27, 2007 represents a 
badly misguided approach to advancing energy efficiency. Rather 
than bringing Americans together in a united and shared effort 
to achieve greater energy efficiency, it divides Americans, 
literally pitting some against others in legal actions. It's 
onus is balanced neither by sector nor by region. In it's 
current design it will likely set back the cause of greater 
energy efficiency by years.
    Section 104 mandates regional standards for heating and air 
conditioning equipment. Giving consumers more tailored choices 
based on regions is laudable. A maximum efficiency air 
conditioning unit that runs year round in hot, muggy Florida 
may be uneconomic in Maine. How should consumers and retail 
technicians gain access to the detailed information they need 
to make the most informed product choice? Industry or the 
Department of Energy could maintain a website that lists every 
product on the market and estimates energy use and monthly 
operating cost by zip code. Instant availability of this 
localized information would allow technicians and consumers to 
drive the market.
    By contrast the Committee print would make it illegal to 
``offer for sale at retail, sell at retail, or install non-
complying (i.e., out-of-region) products.'' Suppose a 
manufacturer specializes in producing small air conditioning 
units for seasonal apartments. The units are compact so that 
they can fit into small spaces and they are typically used from 
late Fall to early Spring when occupancy is high. The life 
cycle energy cost of that unit may be less than the life cycle 
energy cost of a more efficient unit used throughout summer in 
a larger, primary residence. Nevertheless, the smaller unit 
would now be treated as contraband and anyone who sold it or 
installed it on side of a line drawn by DOE instead of the 
other would be an outlaw.
    The bi-partisan recommendation by the Chairwoman and 
Ranking Minority Member of the House Committee on Small 
Business to study this whole proposal before giving DOE 
authority to put it into place was dismissed out of hand by the 
Majority. We cannot understand why the Committee Majority is 
hostile to small businesses, and so intent on needlessly 
pitting some citizens against others and exposing ordinary 
working people to such punitive actions. We disagree that the 
path toward energy efficiency includes bullying ordinary 
citizens.
    Sections 131, 132, and 143 also garnered broad-based 
opposition from stakeholders most likely to be effected. The 
National Association of Homebuilders, the National Association 
of Realtors, the Building Owners and Managers Association, the 
Manufactured Housing Institute, the International Council of 
Shopping Centers, the American Resort Development Association, 
Institute of Real Estate Management,
    National Apartment Association, National Association of 
Industrial and Office Properties, and the National Multi-
Housing Council jointly transmitted a letter to the Committee 
urging deletion of these three sections.
    With regard to Section 131 they said ``The resulting 
unfunded mandate could interfere with building code permitting 
and enforcement to the point of chilling residential and 
commercial real estate development.''
    Turning to Section 132 the letter called the Committee's 
attention to energy efficiency efforts already underway under 
the authority of the Department of Housing and Urban 
Development (HUD) and said that Section 132 would be 
``duplicative and potentially confusing.'' For two reasons, it 
is not surprising that rank-and-file Members of the Committee 
did not understand this duplication and conflict. The HUD 
program is not in our Committee's jurisdiction and not a single 
witness from the manufactured housing industry was invited to 
testify at anyone of the hearings the Committee has held in 
this Congress.
    At issue is more than just overlapping bureaucratic 
exercises that single out a particular manufacturing sector for 
compliance burdens. Both manufacturing jobs and affordability 
of housing are at stake. Many lower income and first-time 
homeowners choose manufactured housing because it offers 
choices they can afford. Arbitrary efforts to drive up 
production costs in the name of some outside agency's--or 
worse, international body's--sense of ``energy efficiency,'' 
despite more complete and balanced standards developed through 
the HUD process, could price manufactured housing out of the 
market. This will harm both homeowners and workers. In view of 
this, and of lack of real-world support for the provision, it 
is astonishing that the Majority, by two straight party-line 
votes, insisted on retaining it.
    Finally, the multi-industry letter explained the real-life 
implications of Section 143. It stated: ``the concept of 
developing and retro-fitting buildings to zero net energy 
standards is unrealistic and the strict timetable to achieve 
these goals is unattainable.'' The letter went on to point out, 
``[E]very commercial property owner in America would be 
required to become a micro-utility Company. The costs of 
compliance would be astronomical, especially for retrofitting 
every commercial building in America.''
    The signatories to these comments all have an enlightened 
natural interest in, and are the real experts at, improving 
energy efficiency in buildings. A building that operates at 
lower cost has higher value. All they seem to be saying is that 
if Congress is to resort to federal mandates, the mandates 
should be economically justified and practically achievable, 
and that these are neither. Perhaps some on-the-record 
discussion of these matters during our Congressional hearing 
process would have brought these realities to light sooner. 
Unfortunately, a minority request that witnesses at an energy 
efficiency hearing include someone from the buildings sector 
was denied by the Majority.
    Sections 104, 131, 132, and 143 in Committee Print 1 
reflect a disregard for consumer choice and sound economics 
while placing thousands of manufacturing jobs at risk. We 
believe that our basic role as representatives in Congress is 
to protect the common interests of the people we are privileged 
to serve, not trample on them. That is why, despite our earnest 
desire to advance the cause of energy efficiency to help our 
Nation meeting our overall goal of energy security, we were 
compelled to oppose final approval of Committee Print 1, as 
amended.
    As a technical note, the Majority Report accompanying 
Committee Print 1 makes repeated claims of various quantified 
energy savings to be captured by several sections of the Print. 
There is no direct or indirect testimony or material in the 
hearing record to validate these claims and in at least some 
instances they strike us as grossly overstated. In several 
cases the underlying provisions themselves were not even the 
subject of hearing testimony. We cannot associate ourselves 
with, or vouch for, these assertions in the Majority drafted 
report.

                                   Joe Barton,
                                   J. Dennis Hastert,
                                   Barbara Cubin,
                                   Ralph M. Hall,
                                   Ed Whitfield,
                                   John Shadegg,
                                   Joseph R. Pitts,
                                   John Sullivan,
                                   Sue Myrick.