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110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     110-890

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

 
     TO AUTHORIZE THE CHIEF ADMINISTRATIVE OFFICER OF THE HOUSE OF 
  REPRESENTATIVES TO CARRY OUT A SERIES OF DEMONSTRATION PROJECTS TO 
     PROMOTE THE USE OF INNOVATIVE TECHNOLOGIES IN REDUCING ENERGY 
  CONSUMPTION AND PROMOTING ENERGY EFFICIENCY AND COST SAVINGS IN THE 
                        HOUSE OF REPRESENTATIVES

                                _______
                                

 September 25, 2008.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Mr. Brady of Pennsylvania, from the Committee on House Administration, 
                        submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 6474]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on House Administration, to whom was referred 
the bill (H.R. 6474) to authorize the Chief Administrative 
Officer of the House of Representatives to carry out a series 
of demonstration projects to promote the use of innovative 
technologies in reducing energy consumption and promoting 
energy efficiency and cost savings in the House of 
Representatives, having considered the same, report favorably 
thereon without amendment and recommend that the bill do pass.

                       PURPOSE OF THE LEGISLATION

    To authorize the Chief Administrative Officer of the House 
of Representatives to carry out a series of demonstration 
projects to promote the use of innovative technologies in 
reducing energy consumption and promoting energy efficiency and 
cost savings in the House of Representatives.

                   BACKGROUND AND NEED FOR H.R. 6474

    H.R. 6474 promotes innovative technologies for energy 
generation and efficiency demonstrating the House leadership 
role for businesses, governments and homeowners in energy use 
and greening efforts. In 2007 Speaker of the House Nancy Pelosi 
launched a 10-year plan to reduce energy consumption in the 
House. This plan calls for a reduction of 5 percent a year, 
which is twice the efficiency required of federal buildings by 
2005 Energy Policy Act. H.R. 6474 is also consistent with the 
goals of H.R. 6, Energy Independence and Security Act of 2007. 
Demonstration projects develop and commercialize technologies 
that expand the production of renewable fuels, which in turn 
reduces our dependence on oil, and confronts global climate 
change challenge. Such projects increase our energy security 
and make America stronger, safer, and cleaner for future 
generations.
    The legislation is designed to encourage the CAO to pursue 
cutting edge and innovative new technologies for power 
generation as pilot projects. The House can provide leadership 
and encourage new products by piloting technologies in the beta 
testing phase. This should include new technologies that can 
generate power off of the grid. The legislation would also 
support projects that further the goals of the ``Greening of 
the Capitol'' initiative that can reduce energy consumption and 
promote energy efficiency.
    The Committee believes that no aspect of a manufacturing 
process or office building operation should be excluded in the 
efforts to encourage sustainable operations. Reducing energy 
consumption, better management and controls on energy use, and 
similar green practices will result in operating cost 
reductions and savings to taxpayers. Increased energy 
efficiency improvements are available to every company or 
government agency through improvements in lighting, window 
treatments, computer rooms, and heating and cooling systems; 
this legislation will move the House of Representatives forward 
as a leader in all aspects of energy efficiency and renewable 
energy use.

                        COMMITTEE CONSIDERATION

    On Wednesday, July 30th, 2008, the Committee met to markup 
H.R. 6474, and by a record vote of 4 ayes to 3 noes, ordered 
the bill reported favorably to the House without amendment.

                   ANALYSIS OF THE BILL (AS REPORTED)

Section 1. Demonstration projects to promote innovations to reducing 
        energy consumption of the House of Representatives

    (a) Authority to Carry Out Demonstration Projects--
    (1) The Bill provides that--The Chief Administrative 
Officer of the House of Representatives may carry out a series 
of demonstration projects to promote the use of innovative 
technologies in reducing energy consumption and promoting 
energy efficiency and cost savings.
    (2) Contracts--In carrying out such projects, the Chief 
Administrative Officer may enter into contracts with entities 
which have developed new methods of using energy more 
efficiently, generating electric power in a more sustainable 
manner, or improving the efficiency and lowering the costs of 
existing renewable power systems, consistent with the 
regulations promulgated by the Committee on House 
Administration for contracts entered into by the Chief 
Administrative Officer.
    (b) The Chief Administrative Officer shall submit a report 
to the Committees on House Administration and Appropriations of 
the House of Representatives including analysis of the extent 
to which the project reduced energy consumption and promoted 
energy efficiency and cost savings in the House of 
Representatives.

Section 2. Authorizing appropriations

    The bill authorizes $5,000,000 for each of the fiscal years 
2009 and 2010 to carry out demonstration projects under this 
Act. Amounts appropriated pursuant to the authorization under 
this section shall remain available without fiscal year 
limitation until expended.

             MATTERS REQUIRED UNDER THE RULES OF THE HOUSE

Constitutional authority

    Clause 3(d)(1) of House Rule XIII requires each committee 
report on a public bill or joint resolution to include a 
statement citing the specific constitutional power(s) granted 
to the Congress on which the Committee relies for enactment of 
the measure under consideration. The Committee cites the 
legislative power granted to Congress in Article I, Section 8, 
Clause 18.

Committee record votes

    Clause 3(b) of House Rule XIII requires the results of each 
record vote on an amendment or motion to report, together with 
the names of those voting for and against, to be printed in the 
committee report.
    The first recorded vote on H.R. 6474 was on an amendment in 
the nature of a substitute offered by Mr. Ehlers. The amendment 
would change the text of the legislation so that the assignment 
of the work to be done would be given to the Architect of the 
Capitol rather than the Chief Administrative Officer. 
Additionally, the funding for fiscal years 2009-2010 to carry 
out demonstration projects under this Act would be increased 
from 5 million to 10 million. Furthermore, the title of the 
legislation would be amended to read: ``A bill to authorize the 
Architect of the Capitol to carry out a series of demonstration 
projects to assist the House of Representatives in meeting 
applicable energy conservation and renewable energy usage 
requirements under law.''
    The Committee then voted on the amendment in the nature of 
a substitute. The amendment was not agreed to, 3 ayes to 5 
noes.

------------------------------------------------------------------------
                                     Ayes          Noes        Present
------------------------------------------------------------------------
Ms. Lofgren....................                          X
Mr. Capuano....................                          X
Mr. Gonzalez...................
Mrs. Davis (CA)................                          X
Mr. Davis (AL).................                          X
Mr. Ehlers.....................            X
Mr. Lungren....................            X
Mr. McCarthy...................            X
Chairman Brady.................                          X
                                ----------------------------------------
      Total....................            3             5
------------------------------------------------------------------------

    The Committee then considered Mr. Ehlers' Amendment #2, 
which would require that if any demonstration project includes 
a modification of any building or ground under the jurisdiction 
of the Office of the Architect of the Capitol, that the Chief 
Administrative Officer consults with and obtains the approval 
of the Architect before the modification is made. The amendment 
was not agreed to, 3 ayes to 5 noes.

------------------------------------------------------------------------
                                     Ayes          Noes        Present
------------------------------------------------------------------------
Ms. Lofgren....................                          X
Mr. Capuano....................                          X
Mr. Gonzalez...................
Mrs. Davis (CA)................                          X
Mr. Davis (AL).................                          X
Mr. Ehlers.....................            X
Mr. Lungren....................            X
Mr. McCarthy...................            X
Chairman Brady.................                          X
                                ----------------------------------------
      Total....................            3             5
------------------------------------------------------------------------

    The Committee then considered Mr. Ehlers' Amendment #3, 
which would require that in carrying out such demonstration 
projects, the Chief Administrative Officer first receive the 
approval of the Committee on House Administration prior to 
entering into contracts with entities which have developed new 
methods of using energy more efficiently. The amendment was not 
agreed to, 3 ayes to 4 noes.

------------------------------------------------------------------------
                                     Ayes          Noes        Present
------------------------------------------------------------------------
Ms. Lofgren....................                          X
Mr. Capuano....................                          X
Mr. Gonzalez...................
Mrs. Davis (CA)................                          X
Mr. Davis (AL).................
Mr. Ehlers.....................            X
Mr. Lungren....................            X
Mr. McCarthy...................            X
Chairman Brady.................                          X
                                ----------------------------------------
      Total....................            3             4
------------------------------------------------------------------------

    The Committee then voted to favorably report H.R. 6474. The 
motion to report favorably was agreed to by a vote 4 ayes to 3 
noes.

------------------------------------------------------------------------
                                     Ayes          Noes        Present
------------------------------------------------------------------------
Ms. Lofgren....................            X
Mr. Capuano....................            X
Mr. Gonzalez...................
Mrs. Davis (CA)................            X
Mr. Davis (AL).................
Mr. Ehlers.....................                          X
Mr. Lungren....................                          X
Mr. McCarthy...................                          X
Chairman Brady.................            X
                                ----------------------------------------
      Total....................            4             3
------------------------------------------------------------------------

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

    In compliance with Clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, the following estimate and comparison 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 22, 2008.
Hon. Robert A. Brady,
Chairman, Committee on House Administration,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 6474, a bill to 
authorize the Chief Administrative Officer of the House of 
Representatives to carry out a series of demonstration projects 
to promote the use of innovative technologies in reducing 
energy consumption and promoting energy efficiency and cost 
savings in the House of Representatives.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Tyler 
Kruzich.
            Sincerely,
                                          Peter A. Fontaine
                                   (For Peter R. Orszag, Director).
    Enclosure.

H.R. 6474--A bill to authorize the Chief Administrative Officer of the 
        House of Representatives to carry out a series of demonstration 
        projects to promote the use of innovative technologies in 
        reducing energy consumption and promoting energy efficiency and 
        cost savings in the House of Representatives

    H.R. 6474 would authorize the Chief Administrative Officer 
(CAO) of the House of Representatives to conduct demonstration 
projects to reduce energy consumption in the House of 
Representatives. The CAO would be required to submit reports to 
the Committees on House Administration and Appropriations upon 
completion of each project detailing how the project affects 
energy use in the House of Representatives.
    Assuming appropriation of the authorized amounts, CBO 
estimates that implementing H.R. 6474 would cost the federal 
government $10 million over the 2009-2013 period, subject to 
the availability of appropriated funds. Enacting the 
legislation would not affect direct spending or revenues.
    H.R. 6474 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Tyler Kruzich. 
This estimate was approved by Peter H. Fontaine, Assistant 
Director for Budget Analysis.

Federal mandates

    Section 423 of the CBA requires a committee report on any 
public bill or joint resolution that includes a federal mandate 
to include specific information about such mandates. The 
Committee states that H.R. 6474 includes no federal mandates.

Preemption clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any committee on a bill or joint 
resolution to include a committee statement on the extent to 
which the bill or joint resolution is intended to preempt state 
or local law. The Committee states that H.R. 6474 is not 
intended to preempt any state or local law.

Committee oversight findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
findings and recommendations of the Committee, based on the 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

Statement of general performance goals and objectives

    The Committee states, with respect to clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, that 
the goal and objective of H.R. 6474 is to increase energy 
efficiency in the House of Representatives and thereby result 
in cost savings to the House.

Congressional ``earmarks''

    Clause 9 of House Rule XXI requires committee reports on 
public bills and resolutions to contain an identification of 
congressional ``earmarks,'' limited tax benefits, limited 
tariff benefits, and the names of requesting Members. The bill 
contains no such items.

Congressional accountability

    Section 102(b)(3) of the Congressional Accountability Act 
of 1995 (P.L. 104-1) requires each report on a public bill or 
joint resolution relating to terms and conditions of employment 
or access to public services or accommodations to describe the 
manner in which the legislation applies to the Legislative 
Branch. The Committee finds that H.R. 6474 does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of the Act.

Changes in existing law made by the bill, as reported

    H.R. 6467 makes no changes in existing law.

MINORITY VIEWS OF THE HONORABLE VERNON J. EHLERS, THE HONORABLE DANIEL 
              P. LUNGREN, AND THE HONORABLE KEVIN McCARTHY

                            I. Introduction

    On Wednesday, July 30, 2008, the Committee ordered H.R. 
6474 reported favorably to the House by a recorded 4-3 vote. 
H.R. 6474 authorizes the Chief Administrative Officer (CAO) of 
the House of Representatives to carry out a series of 
demonstration projects to promote the use of innovative 
technologies in reducing energy consumption and promoting 
energy efficiency and cost savings in the House of 
Representatives. Further, H.R. 6474 authorizes a total of $10 
million over Fiscal Years 2009 and 2010 in order to carry out 
these projects. While many activities have been initiated under 
the auspices of the ``Green the Capitol Initiative'', this is 
the first instance in which the Committee has publicly 
considered any proposed action. We applaud the Committee for 
deciding to engage on these important matters within the 
Committee's jurisdiction. We look forward to reconvening for 
the public and comprehensive review of Capitol complex energy 
matters as agreed to by the Chairman, to include how the 
Congress integrates with other operations of the Federal 
government in the National Capital Region. We remain deeply 
troubled by H.R. 6474, which through its structure and purpose 
illustrates the deeply flawed approach of the Majority to 
matters of energy efficiency and sustainability.

                             II. Key Issues

                        STRUCTURE AND AUTHORITY

    The Architect of the Capitol (AOC) is responsible for 
meeting the mandatory energy efficiency requirements for 
Federal Buildings included in the Energy Policy Act of 2005 and 
the Energy Independence and Security Act of 2007. These 
mandates include the reduction of energy consumption from an FY 
2003 baseline totaling 30 percent by FY 2015. Additionally, as 
the entity responsible for the Capitol complex energy 
infrastructure, the AOC is also subject to specific statutory 
mandates for use of renewable energy, with a requirement that 
7.5 percent of electricity be from renewable sources by 2015. 
The AOC has incorporated energy savings goals into its regular 
project planning process, and has achieved its annual energy 
reduction goals through a number of initiatives that have 
become the foundation of a successful, long term energy 
reduction program. These combined efforts reduced Capitol 
complex energy consumption by 6.5 percent in FY 2006 and 6.7 
percent in FY 2007, substantially exceeding the minimum 
reduction goals set by the Energy Policy Act of 2005. During FY 
2007, the AOC invested significant effort in developing Energy 
Saving Performance Contracts (ESPC), as well as a prioritized 
list of potential energy saving projects. Through these 
combined initiatives, the AOC identified projects capable of 
reducing energy consumption 30 percent by 2015. The AOC 
estimates that it will cost $300 million to meet this 30 
percent mandate.
    The authority granted to the Chief Administrative Officer 
in H.R. 6474 conflicts with the Architect of the Capitol's 
clear responsibility for energy infrastructure in the Capitol 
complex, including matters of energy efficiency and the 
provision of renewable electricity. To address this conflict, 
the Ranking Member introduced an amendment in the nature of a 
substitute that maintained all of the authorities as introduced 
in H.R. 6474 but granted them to the Architect of the Capitol 
rather than the Chief Administrative Officer, in order to 
assist the AOC in achieving its statutory mandates. Further, as 
the AOC estimated that achieving its energy reduction mandate 
would cost $300 million, the Ranking Member's substitute 
doubled the authorized monies available to carry out the 
demonstration projects. The amendment was defeated.
    The Chief Administrative Officer has neither the statutory 
responsibility nor the organizational capacity to manage the 
Capitol complex energy infrastructure. Given the nature of 
business in the House of Representatives, it is essential that 
energy services are reliable and operate without unscheduled 
disruptions. To this end, the Ranking Member introduced an 
amendment requiring that the Chief Administrative Officer 
consult with and obtain the approval of the AOC prior to 
engaging in any project that would modify Capitol buildings and 
grounds. This amendment was designed to ensure communication 
across the two organizations and to prevent any adverse impact 
on energy services by activities carried out by the CAO 
organization. The amendment was defeated.

                        DEMONSTRATED SHORTFALLS

    While the Architect of the Capitol has demonstrated a 
capacity to properly identify, document, and measure energy-
saving projects based on clear processes that assign value 
based on costs relative to results, the Chief Administrative 
Officer has demonstrated no such capacity. In the CAO's lone 
foray into executing a project to increase energy efficiency, 
the House spent nearly $700K to study the re-lighting of the 
Capitol dome. An analysis of current energy usage and costs 
related to the Capitol dome lights reveals that, with a top-end 
savings of $12K annually, the CAO's study will not achieve 
economic payback for over 50 years. Factoring in the cost of 
construction and installation, the project has a payback period 
well over a century. It is difficult to identify any processes 
within the CAO that identified this as a priority project, to 
take precedence over other energy-saving projects also in need 
of funding. As such, our confidence in the CAO's ability to 
deliver value to the taxpayer is justifiably weak.
    Further, the CAO's recent violations of Committee 
procurement regulations and inability to provide the 
transparency and reporting accuracy expected of his position 
calls into concern the manner in which the CAO will utilize the 
authority provided in H.R. 6474. The degree to which the CAO 
reports on contracting activities, and the degree to which sole 
source contract awards are used to meet the objectives of the 
legislation remain open questions and present obvious concerns. 
To address these concerns, the Ranking Member introduced an 
amendment to require Committee approval for all contracts 
entered into under the authority provided by H.R. 6474, not 
just those contracts exceeding $250K in value or one year in 
length. The amendment additionally strengthened the requirement 
that the CAO operate in strict adherence to the Committee's 
procurement regulations in order to ensure best value for the 
House of Representatives. The amendment was defeated.

                            III. CONCLUSION

    We believe that H.R. 6474 is deeply flawed in its 
structure, and that its enactment would result in 
organizational confusion and implementation risks that would 
undermine the collective goal of reducing energy consumption in 
the House. It is essential that the Committee act in a manner 
that sets a proper example for how organizations and 
individuals can achieve cost-effective energy savings. This 
requires processes of the type incorporated into the AOC's 
project planning that ensure that the best value is achieved 
for each project investment. The CAO's demonstrated record of 
engaging in high-profile but poor-value projects undermines the 
credibility of the Congress, and should not continue to be 
encouraged. The Ranking Member presented three very simple 
amendments designed to maintain the spirit of the legislation 
while correcting its flaws, but each was defeated by the 
Majority.

                                   Vernon J. Ehlers.
                                   Daniel E. Lungren.
                                   Kevin McCarthy.