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Calendar No. 210
114th Congress } { Report
SENATE
1st Session } { 114-130
======================================================================
ENERGY SAVINGS AND INDUSTRIAL COMPETITIVENESS ACT OF 2015
_______
September 9, 2015.--Ordered to be printed
_______
Ms. Murkowski, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 720]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 720) to promote energy savings in
residential buildings and industry, and for other purposes,
having considered the same, reports favorably thereon with
amendments and recommends that the bill, as amended, do pass.
CONTENTS
Page
Amendments....................................................... 1
Purpose of the Measure........................................... 3
Background and Need.............................................. 4
Legislative History.............................................. 4
Committee Recommendation and Tabulation of Votes................. 5
Committee Amendments............................................. 6
Section-by-Section Analysis...................................... 6
Cost and Budgetary Considerations................................ 10
Regulatory Impact Evaluation..................................... 10
Congressionally Directed Spending................................ 11
Executive Communications......................................... 11
Changes in Existing Law.......................................... 23
The amendments are as follows:
1. Strike subtitles D and E of title I.
2. Strike subtitle C of title IV.
3. Strike section 441 and insert the following:
SEC. 431. VOLUNTARY VERIFICATION PROGRAMS FOR AIR CONDITIONING,
FURNACE, BOILER, HEAT PUMP, AND WATER HEATER
PRODUCTS.
Section 326(b) of the Energy Policy and Conservation Act (42 U.S.C.
6296(b)) is amended by adding at the end the following:
``(6) Voluntary verification programs for air conditioning,
furnace, boiler, heat pump, and water heater products.--
``(A) Reliance on voluntary programs.--For the
purpose of periodic testing to verify compliance with
energy conservation standards and Energy Star
specifications established under sections 324A, 325,
and 342 for covered products described in paragraphs
(3), (4), (5), (9), and (11) of section 322(a) and
covered equipment described in subparagraphs (B), (C),
(D), (F), (I), (J), and (K) of section 340(1), the
Secretary and the Administrator of the Environmental
Protection Agency shall rely on testing conducted by
voluntary verification programs that are recognized by
the Secretary in accordance with subparagraph (B).
``(B) Recognition of voluntary verification
programs.--
``(i) In general.--Not later than 180 days
after the date of enactment of this paragraph,
the Secretary shall initiate a negotiated
rulemaking in accordance with subchapter III of
chapter 5 of title 5, United States Code
(commonly known as the `Negotiated Rulemaking
Act of 1990') to develop criteria that have
consensus support for achieving recognition by
the Secretary as an approved voluntary
verification program.
``(ii) Minimum requirements.--The criteria
developed under clause (i) shall, at a minimum,
ensure that the voluntary verification
program--
``(I) is nationally recognized;
``(II) is operated by a third party
and not directly operated by a program
participant;
``(III) satisfies any applicable
elements of--
``(aa) International
Organization for
Standardization standard
numbered 17025; and
``(bb) any other relevant
International Organization for
Standardization standards
identified and agreed to
through the negotiated
rulemaking under clause (i);
``(IV) at least annually tests
independently obtained products
following the test procedures
established under this title to verify
the certified rating of a
representative sample of products and
equipment within the scope of the
program;
``(V) maintains a publicly available
list of all ratings of products subject
to verification;
``(VI) requires the changing of the
performance rating or removal of the
product or equipment from the program
if testing determines that the
performance rating does not meet the
levels the manufacturer has certified
to the Secretary;
``(VII) requires new program
participants to substantiate ratings
through test data generated in
accordance with DOE regulations;
``(VIII) allows for challenge testing
of products and equipment within the
scope of the program;
``(IX) requires program participants
to disclose the performance rating of
all covered products and equipment
within the scope of the program for the
covered product or equipment;
``(X) provides to the Secretary--
``(aa) an annual report of
all test results, the contents
of which shall be determined
through the negotiated
rulemaking process under clause
(i); and
``(bb) test reports, on the
request of the Secretary or the
Administrator of the
Environmental Protection
Agency, that note any
instructions specified by the
manufacturer or the
representative of the
manufacturer for the purpose of
conducting the verification
testing, to be exempted from
disclosure to the extent
provided under section
552(b)(4) of title 5, United
States Code (commonly known as
the `Freedom of Information
Act'); and
``(XI) satisfies any additional
requirements or standards that the
Secretary and Administrator of the
Environmental Protection Agency shall
establish consistent with this
subparagraph.
``(iii) Finding required for cessation of
recognition.--The Secretary may only cease
recognition of a voluntary verification program
as an approved program described in
subparagraph (A) on a finding that the program
is not meeting its obligations for compliance
through program review criteria established
under this subparagraph.
``(iv) Revisions.--
``(I) In general.--Major revisions to
voluntary verification program criteria
established under this subparagraph
shall only be made pursuant to a
subsequent negotiated rulemaking in
accordance with subchapter III of
chapter 5 of title 5, United States
Code (commonly known as the `Negotiated
Rulemaking Act of 1990').
``(II) Nonmajor revisions.--
``(aa) In general.--The
Secretary may make all other
nonmajor criteria revisions by
initiating a direct final rule
in accordance with section
553(b)(3)(B) of title 5, United
States Code, on a determination
published in the Federal
Register that revisions to the
criteria are necessary and that
substantive opposition to the
proposed revisions is not
expected.
``(bb) Conditions for
effectiveness.--If the
Secretary does not receive
adversarial comments with
respect to the determination
published under item (aa)
during the 30-day-period
following publication of that
determination in the Federal
Register, the direct final rule
shall have the force and effect
of law.
``(cc) Withdrawal of final
rule.--Receipt of any
adversarial comment with
respect to the determination
published under item (aa) shall
require the Secretary to
withdraw the direct final rule
and publish--
``(AA) a notice of
proposed rulemaking
pursuant to section 553
of title 5, United
States Code; or
``(BB) a notice of
proposed rulemaking
pursuant to section 553
of title 5, United
States Code, that
includes a
determination that
revisions to the
criteria are necessary.
``(C) Administration.--
``(i) In general.--The Secretary and the
Administrator of the Environmental Protection
Agency shall not require--
``(I) manufacturers to participate in
a voluntary verification program
described in subparagraph (A); or
``(II) participating manufacturers to
provide information that has already
been provided to the Secretary or the
Administrator.
``(ii) List of covered products.--The
Secretary or the Administrator of the
Environmental Protection Agency may maintain a
publicly available list of covered products and
equipment that distinguishes between products
that are, and are not covered products and
equipment verified through a voluntary
verification program described in subparagraph
(A);
``(iii) Periodic verification testing.--
``(I) In general.--The Secretary--
``(aa) shall not subject
products or equipment that have
been verification tested under
a voluntary verification
program described in
subparagraph (A) to periodic
verification testing that
verifies the accuracy of the
certified performance rating of
the products or equipment; but
``(bb) may test products or
equipment described in
subclause (I) if the testing is
necessary--
``(AA) to assess the
overall performance of
a voluntary
verification program;
``(BB) to address
specific performance
issues;
``(CC) for use in
updating test
procedures and
standards; or
``(DD) for other
purposes consistent
with this title.
``(II) Additional testing.--The
Secretary may subject products or
equipment described in subclause (I) to
periodic verification testing outside
the restrictions of subclause (I)(bb),
if agreed to during the rulemaking
described in subparagraph (B).
``(D) Effect on other authority.--Nothing in this
paragraph limits the authority of the Secretary or the
Administrator of the Environmental Protection Agency to
enforce compliance with any law.''
Purpose
To promote energy savings in residential buildings and
industry.
Background and Need
Since the 1973 oil embargo and every subsequent energy
crisis, studies have shown that the U.S. could save energy and
money by investing in energy efficiency measures. Today,
efficient energy use and the deployment of more efficient
technologies are critical to U.S. economic competitiveness and
job creation. In addition, efficient energy use reduces
pollution that would be associated with energy production.
Nevertheless, many existing energy efficiency technologies and
programs have yet to be installed or implemented.
The National Academies released a study in 2010 on the
potential for energy efficiency in commercial and residential
buildings, transportation, and manufacturing (Real Prospects
for Energy Efficiency in the United States). The study found
that energy efficiency could more than offset the Energy
Information Administration's projected increase in U.S. energy
consumption through 2030.
The Energy Savings and Industrial Competitiveness Act
(ESIC) of 2015 proposes a national strategy to increase energy
efficiency in the residential, commercial, federal, and
industrial sectors of our economy. The legislation would use a
variety of low-cost tools to reduce barriers to private sector
efficiency investments and to promote the adoption of ``off-
the-shelf'' technologies that will save money for consumers and
businesses, make America more energy independent, the economy
more competitive, and reduce environmental impacts. For most
energy consuming appliances and equipment, more efficient
models or technologies are commercially available today.
Increased deployment of these alternatives would pay for
themselves through energy savings and yield long-term benefits
to consumers and to the nation.
The Energy Information Administration reports that
commercial and residential buildings combined consumed 41
percent of all energy used in 2011. The U.S. industrial sector
consumes more energy than any other sector of our economy and
the Federal Government is the largest single energy consumer in
the U.S. ESIC's provisions target these sectors for energy-
efficiency upgrades, which will promote economic growth in all
regions of the country.
Legislative History
S. 720 was introduced by Senators Portman, Shaheen, Ayotte,
Bennet, Cantwell, Collins, Coons, Franken, Heller, Hoeven,
Manchin, Murkowski, Warner, and Wicker on March 11, 2015. The
Senate Committee on Energy and Natural Resources (Committee)
held a legislative hearing on S. 720 on April 30, 2015.
In the 113th Congress, four similar bills, S. 2262, S.
1392, S. 2074, and S. 761, were introduced by Senators Shaheen
and Portman. S. 2262 was introduced on April 28, 2014 and S.
1392 was introduced on July 30, 2013. Cloture to end debate on
S. 2262 was not invoked in the Senate by a yea-nay vote of 55-
36 on May 12, 2014. S. 1392 was considered by the Senate on
September 19, 2013. Companion legislation, H.R. 1616, was
introduced in the House by Representative McKinley on April 18,
2013. S. 2074 and S. 761, were introduced by Senators Shaheen
and Portman on February 27, 2014 and April 18, 2013,
respectively. The Committee held a hearing on S. 761 on April
23, 2013 (S. Hrg. 113-24), and it was favorably reported by the
Committee on June 3, 2013 (S. Rpt. 113-37). The bill was
similar to S. 1000 (112th Congress) as introduced on May 16,
2011, as heard by the Committee on June 9, 2011 (S. Hrg. 112-
273), and as favorably reported by the Committee on September
6, 2011 (S. Rpt. 112-71). Parts of S. 761 were similar to other
bills that were considered by the Committee in the 111th
Congress including: the building energy codes provisions of S.
1462, the American Clean Energy Leadership Act of 2009; the
commercial building financing provisions of the Recovery
Through Building Renovation Act of 2010; the manufacturing
efficiency provisions of S. 1462; and the provisions of the
Supply Star Act of 2010.
Since the introduction of S. 720, S. 535, a bill comprised
of sections 131-133 (Better Buildings), section 141 (Energy
Information for Commercial Buildings), and section 421 (Grid-
enabled Water Heaters) of S. 720 was introduced by Senators
Portman and Shaheen. It passed by the Senate on March 27, 2015,
and the House on April 21, 2015. It was signed by the President
on April 30, 2015 (Public Law 114-11).
Section 121 of S. 720 (Coordination of Information on
Assistance for Schools) was introduced as S. 600. Section 431
(Requirements for Federal Buildings) and Section 432
(Certification Systems for Federal Green Buildings) of S. 720
were introduced as S. 869. These two bills are also on the
agenda for the April 30, 2015 hearing.
The Committee on Energy and Natural Resources met in an
open business session on July 30, 2015 and ordered S. 720
favorably reported with amendments.
Committee Recommendation and Tabulation of Votes
The Committee on Energy and Natural Resources, in an open
business session on July 28, 2015, by a majority voice vote of
a quorum present, recommended that the Senate pass S. 720 with
amendments, if amended as described herein.
The roll call vote on reporting the measure was 20 yeas, 2
nays, as follows:
YEAS NAYS
Ms. Murkowski Mr. Lee*
Mr. Barrasso Mr. Flake*
Mr. Risch
Mr. Daines
Mr. Cassidy*
Mr. Gardner
Mr. Portman
Mr. Hoeven
Mr. Alexander*
Mrs. Capito
Ms. Cantwell
Mr. Wyden*
Mr. Sanders*
Ms. Stabenow
Mr. Franken
Mr. Manchin
Mr. Heinrich
Ms. Hirono
Mr. King
Ms. Warren
*Indicates vote by proxy.
Committee Amendments
During its consideration of S. 720, the Committee adopted
amendments that make three primary changes to the bill as
introduced by striking subtitles D, relating to better
buildings and striking subtitle E of title I, relating to
energy information for commercial buildings; striking subtitle
C of title IV, relating to water heaters; and substituting the
language in section 441 relating to voluntary verification
programs for air conditioning, furnace, boiler, heat pump, and
water heater products in response to technical assistance
received from the Department of Energy.
Section-by-Section Analysis
Section 1. Short title; table of contents
Section 1 provides a short title for the measure and the
table of contents.
Section 2. Definition of Secretary
Section 2 provides the definition of Secretary.
TITLE I: BUILDINGS
SUBTITLE A: BUILDING ENERGY CODES
Section 101. Greater energy efficiency in building codes
Section 101(a) amends section 303 of the Energy
Conservation and Production Act (ECPA) to add certain
definitions. Section 101(b) amends section 304 of ECPA to
require that the Secretary of Energy encourage and support the
adoption of building energy codes by States, local governments,
or Indian tribes that meet or exceed model building energy
codes. Section 101(d) amends section 307 of ECPA to require
that the Secretary of Energy support the updating of model
building energy codes.
SUBTITLE B: WORKER TRAINING AND CAPACITY BUILDING
Section 111. Building training and assessment centers
Section 111 directs the Secretary of Energy (Secretary) to
provide grants to institutions of higher education and Tribal
Colleges or Universities to establish building training and
assessment centers.
Section 112. Career skills training
Section 112 directs the Secretary to provide grants to
eligible entities to cover a portion of the cost of career
skills training programs that lead to students receiving an
industry-related certification for the installation of energy
efficient building technologies.
SUBTITLE C: SCHOOL BUILDINGS
Section 121. Coordination of energy retrofitting assistance for schools
Section 121 directs the Department of Energy's (DOE) Office
of Energy Efficiency and Renewable Energy (EERE) to coordinate
and disseminate information on existing Federal programs that
may be used to help initiate, develop, and finance energy
efficiency, renewable energy, and energy retrofitting projects
for schools.
TITLE II: INDUSTRIAL EFFICIENCY AND COMPETITIVENESS
SUBTITLE A: MANUFACTURING ENERGY EFFICIENCY
Section 201. Purposes
Section 201 provides the purpose of this subtitle.
Section 202. Future of Industry program
Section 202(a) amends the heading of section 452 of Energy
Independence and Security Act (EISA) of 2007 to add the
``Future of Industry Program''. Section 202(b) amends section
452(a) of EISA 2007 to add a definition of ``energy service
provider.'' Section 202(c) amends section 452(e) of the EISA
2007 to direct Industrial Assessment Centers (IACs) to
coordinate with the Manufacturing Extension Partnership Centers
of the National Institute of Standards and Technology and DOE's
Building Technologies Program, and to increase partnerships
with the national laboratories and energy service and
technology providers and directs the Secretary to establish an
Advanced Manufacturing Steering Committee.
Section 203. Sustainable manufacturing initiative
Section 203 amends part E of title II of the Energy Policy
and Conservation Act (EPCA) to add a Sustainable Manufacturing
Initiative which requires DOE's EERE to provide onsite
technical assessments to manufacturers seeking efficiency
opportunities and requires the Secretary to carry out a joint
industry-government partnership program to research, develop,
and demonstrate new sustainable manufacturing and industrial
technologies and processes.
Section 204. Conforming Amendments
Section 204 makes conforming changes to the Energy Policy
Act (EPACT) of 2005.
SUBTITLE B: SUPPLY STAR
Section 211. Supply Star
Section 211 amends section 324A of the EPCA to establish a
DOE pilot program in coordination with Energy Star to promote
practices that maximize supply chain efficiency.
SUBTITLE C: EXTENDED PRODUCT REBATE PROGRAM
Section 221. Extended product system rebate program
Section 221 directs the Secretary to establish a rebate
program to encourage the replacement of energy inefficient
electric motors.
SUBTITLE D: TRANSFORMER REBATE PROGRAM
Section 231. Energy efficient transformer rebate program
Section 231 directs the Secretary to establish a rebate
program to encourage the replacement of energy inefficient
transformers.
TITLE III: FEDERAL AGENCY ENERGY EFFICIENCY
Section 301. Energy-efficient and energy-saving information
technologies
Section 301 amends section 543 of the National Energy
Conservation Policy Act (NECPA) by adding a section that
directs the Director of the Office of Management and Budget
(OMB) to collaborate with each Federal agency to develop an
implementation strategy for the maintenance, purchase, and use
of energy-efficient and energy-saving information technologies.
Section 302. Availability of funds for design updates
Section 302 amends section 3307 of title 40 of the U.S.
Code to allow the Administrator of General Services to use
appropriated funds to update the design of a building for which
the design has been substantially completed but on which
construction has not begun to meet Federal building energy
efficiency standards.
Section 303. Energy efficient data centers
Section 303 amends section 453 of EISA 2007 to update the
Voluntary National Information Program. It requires the
Secretary to develop a metric for data center energy
efficiency, and directs the Secretary, in consultation with the
Director of OMB, to maintain a data center energy practitioner
program and open data initiative for Federal data center energy
usage.
Section 304. Budget-neutral demonstration program for energy and water
conservation improvements at multifamily residential units
Section 304 directs the Secretary of Housing and Urban
Development (HUD) to conduct a pilot project that demonstrates
the use of budget-neutral, performance-based agreements for
energy or water conservation improvements in HUD multifamily
housing.
TITLE IV: REGULATORY PROVISIONS
SUBTITLE A: THIRD-PARTY CERTIFICATION UNDER ENERGY STAR PROGRAM
Section 401. Third-party certification under Energy Star program
Section 401 amends section 324A of EPCA by directing the
Administrator to revise the certification requirements for
Energy Star program partners that manufacture consumer, home,
and office electronic products and have complied with all
program requirements for at least 18 months.
SUBTITLE B: FEDERAL GREEN BUILDINGS
Section 411. High-performance green Federal buildings
Section 411 amends section 436(h) of EISA 2007 to require
the Federal Director of the Office of Federal High-Performance
Green Buildings, within the General Services Administration, to
conduct an ongoing review of private sector green building
certification systems and provide the Secretary with a list of
certification systems most likely to encourage a comprehensive
and environmentally sound approach to certification of green
buildings.
SUBTITLE C: ENERGY PERFORMANCE REQUIREMENT FOR FEDERAL BUILDINGS
Section 421. Energy performance requirements for Federal buildings
Section 421 amends section 543 of NECPA to extend existing
federal building energy efficiency improvement targets. As
amended, section 543(a)(2) will provide for exclusions from the
targets for buildings with energy intensive activities and
creates reporting requirements for excluded buildings. Section
543(f)(3) will require federal energy managers to complete
comprehensive energy and water evaluation and recommissioning
or retrocommissioning for 25 percent of the facilities of each
agency for excluded buildings for which reporting is required
by section 2(b) to ensure that federal buildings are performing
at their optimal level of energy efficiency. Not later than 2
years after the date of completion of each evaluation, each
energy manager may implement energy- or water-saving measures
identified in the evaluation or shall explain why the measures
were not implemented.
Section 422. Federal building energy efficiency performance standards;
certification system and level for green buildings
Section 422 amends section 303 of ECPA to expand the scope
of existing energy standards for new federal buildings to cover
major renovations.
Section 423. Enhanced energy efficiency underwriting
Section 423 requires the Secretary of Housing and Urban
Development to develop and issue updated underwriting and
appraisal guidelines for borrowers who voluntarily submit a
qualified home energy report. The provision would cover any
loan issued, insured, purchased, or securitized by the Federal
Housing Administration (FHA) and other federal agencies, or
their successors. The updated guidelines would adjust
underwriting criteria and valuation guidelines to account for
expected energy cost savings as an offset to other expenses and
to account for present value of expected energy savings. If no
qualified energy report is provided, no adjustment would be
made. Lenders would be required to inform loan applicants of
the costs and benefits of improving the energy efficiency of a
home.
SUBTITLE D: VOLUNTARY VERIFICATION PROGRAMS FOR AIR CONDITIONING,
FURNACE, BOILER, HEAT PUMP, AND WATER HEATER PRODUCTS
Section 431. Voluntary verification programs for air conditioning,
furnace, boiler, heat pump, and water heater products
Section 431 requires DOE to recognize certain qualified
voluntary, independent certification programs for the energy
performance of air conditioning, furnace, boiler, heat pump,
and water heater products. It requires the DOE to rely on these
programs to verify the performance rating of these products,
provide annual reports of all test results, and maintain a
publicly available list of all certified models.
TITLE V: MISCELLANEOUS
Section 501. Budgetary effects
Section 501 states that for the purpose of complying with
the Statutory Pay-As-You-Go Act of 2010, the budgetary effect
of this legislation shall be determined by reference to the
latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act.
Section 502. Advance appropriations required
Section 502 provides that authorization of amounts under
this Act and the amendments made by this Act shall be effective
for any fiscal year only to the extent and in the amount
provided in advance in appropriations Acts.
Cost and Budgetary Considerations
The Congressional Budget Office estimate of the costs of
this measure has been requested but was not received at the
time the report was filed. When the report is available, the
Chairman will request it to be printed in the Congressional
Record for the advice of the Senate.
Regulatory Impact Evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out the bill.
The bill is not a regulatory measure in the sense of
imposing Government-established standards or significant
economic responsibilities on private individuals and
businesses. Also, compliance with voluntary programs, such as
those designed to increase energy efficiency efforts, will
require commitments of resources. Various grant and other
assistance programs will require submission of documentation or
plans as a condition for the assistance. The Committee believes
that the effects are not undue and are reasonable in light of
the benefits of the programs.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of the bill, as ordered reported.
Congressionally Directed Spending
S. 720, as ordered reported, does not contain any
congressionally directed spending items, limited tax benefits,
or limited tariff benefits as defined in rule XLIV of the
Standing Rules of the Senate.
Executive Communications
The testimony provided by the Office of Energy Efficiency
and Renewable Energy at the April 30, 2015 hearing on S. 720
follows:
Statement of Dr. Kathleen Hogan, Deputy Assistant Secretary for Energy
Efficiency, Office of Energy Efficiency and Renewable Energy,
Department of Energy
introduction
Chairman Murkowski, Ranking Member Cantwell, and Members of
the Committee, thank you for the opportunity to testify today
on behalf of the Department of Energy's (DOE) Office of Energy
Efficiency and Renewable Energy (EERE) regarding energy
efficiency.
In support of the Administration's all-of-the-above
approach to energy and the Climate Action Plan, EERE leads DOE
efforts as the U.S. Government's primary clean energy and
energy efficiency technology organization--working with some of
the Nation's best innovators and businesses to support high-
impact applied research, development, and demonstration (RD&D;)
activities in the three sectors under our purview: sustainable
transportation, renewable power, and energy efficiency. With
Congress's support, we implement a range of strategies aimed at
reducing U.S. reliance on oil, saving American families and
businesses money, creating jobs, and reducing pollution. We
work to ensure that the clean energy and energy efficiency
technologies of today and tomorrow are invented and
manufactured in America.
As Deputy Assistant Secretary for Energy Efficiency in the
Office of Energy Efficiency and Renewable Energy (EERE), I am
responsible for overseeing DOE's portfolio of energy efficiency
research, development, demonstration, and deployment
activities. The Building Technologies, Advanced Manufacturing,
Weatherization and Intergovernmental Programs, and Federal
Energy Management Program Offices develop and help provide
businesses, consumers, and government agencies with innovative,
cost-effective energy-saving solutions to improve their energy
efficiency--from higher-efficiency products, to new ways of
designing homes and buildings, to new ways of improving the
energy intensity and competitiveness of American manufacturers.
EERE's energy efficiency portfolio also supports better
integrating the built environment with our energy system to
combat costly peaks in energy demand and to increase the
capabilities and value of buildings and facilities.
Energy efficiency is a large, low-cost, and underutilized
U.S. energy resource. Increased energy efficiency offers
savings on energy bills, opportunities for more jobs, and
improved industrial competitiveness, and it will lower air
pollution. I am pleased to be here today and look forward to
working with Congress, and this Committee in particular, to
talk about how we can use energy efficiency as a tool to help
address our Nation's energy challenges. My statement today will
address the energy efficiency bills currently before the
Committee, and provide an update on DOE's energy efficiency
portfolio, the challenges we are working to address, and the
progress we are making.
energy efficiency legislation
I have been asked to testify on 22 energy efficiency bills
currently before the Committee. In my testimony, I will
address:
S. 720--Energy Savings and Industrial
Competitiveness Act of 2015;
S. 703--Weatherization Enhancement and Local
Energy Efficiency Investment and Accountability Act.
This bill reauthorizes the Weatherization Assistance
Program from fiscal year 2016 through fiscal year 2020,
and seeks to establish a competitive grant program to
expand the number of low-income, single-family and
multifamily homes that receive energy efficiency
retrofits; and
S. 858--Energy Savings Through Public-
Private Partnerships Act of 2015. This bill seeks to
encourage the use of Energy Savings performance
contracts and Utility Energy Service Contracts in
federal government buildings.
The Administration continues to review all of the
legislation on the docket today and I am happy to answer
questions more specifically on the 22 bills for the record.
However, I will reiterate my appreciation for ongoing
bipartisan efforts to promote energy efficiency and look
forward to continuing to work with the Committee and the range
of bill sponsors as legislation works its way through Congress.
The Administration continues its support for the underlying
goals of S. 720--as many of the sections of S. 720 match those
in S. 1392, the similar 2013 bill that the Administration
supported. However, there are sufficient changes in S. 720 that
warrant further review before a position on the full bill can
be established. Many provisions of S. 720 would support the
Administration's efforts to strengthen U.S. competitiveness
through significant research and development investments in
manufacturing innovation and productivity, such as the
Department of Energy's Clean Energy Manufacturing Initiative,
and complement key energy efficiency dimensions of the
President's Climate Action Plan. The Department continues to
review the changes in S. 720 and looks forward to working with
the bill sponsors and this Committee to cut carbon pollution
and begin to slow the effects of climate change.
In addition, the Department is still reviewing S. 703 and
S. 858, and does not have a position on them at this time. DOE
does, however, support the overall objective of S. 703 to
reauthorize DOE's existing Weatherization Assistance Program
(WAP) and the State Energy Program (SEP) and recommends that
authorization also be provided for the Local Energy Program
(LEP), as outlined in the FY 2016 Budget. WAP provides grants
to states, territories, and some Indian tribes to improve the
energy efficiency of the homes of low-income families. SEP
provides funding and technical assistance to state and
territory energy offices to help them advance their clean
energy economy while contributing to national energy goals. The
proposed LEP compliments these programs, serving as a catalyst
for developing creative and effective solutions through local-
level projects. While DOE supports the reauthorization of WAP
and SEP, we note that existing law authorizes appropriations
for SEP at $125 million per year. S. 703 would change the
amount to $75 million per year for Fiscal Years 2016 through
2020. The lowered amount for authorization for SEP may not be
sufficient for States to complete projects contemplated under
SEP, given the significant role of states in energy efficiency,
renewable energy, and energy emergency planning across the U.S.
In addition, DOE supports the intent of S. 858 to encourage the
use of Energy Savings performance contracts and Utility Energy
Service Contracts which permit federal agencies to implement
energy efficiency, renewable energy and water-efficiency
projects that save energy, reduce greenhouse gas emissions and
save taxpayer dollars.
eere's energy efficiency portfolio
EERE's program offices are implementing a variety of
strategies to improve the efficiency of our homes, buildings
and manufacturers, similar to the activities highlighted in the
legislation before the Committee today.
Building technologies
Improving energy efficiency in our homes and buildings
offers a tremendous opportunity to create well-paying jobs,
save money for businesses and consumers, and make our air
cleaner. Residential and commercial buildings consume more than
40 percent of the Nation's total energy and more than 73
percent of its electrical energy,\1\ resulting in an estimated
annual national buildings energy bill of more than $430
billion.\2\ This energy bill can be reduced by 20-50 percent
through a variety of existing and emerging building energy
efficiency technologies and techniques once these solutions are
successfully developed, commercialized, and proven to be cost
effective.
---------------------------------------------------------------------------
\1\Monthly Energy Review, Energy Information Administration, U.S.
Department of Energy, November 2014, http://www.eia.gov/totalenergy/
data/monthly/pdf/mer.pdf.
\2\Annual Energy Outlook, Energy Information Administration, U.S.
Department of Energy, April 2014, http://www.eia.gov/forecasts/aeo/pdf/
0383(2014).pdf.
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EERE's Building Technologies Program (BTO) will continue to
develop and demonstrate advanced building efficiency
technologies and practices to make buildings in the U.S. more
efficient, affordable, and comfortable. Key recent EERE
accomplishments in BTO include the following:
Helping American commercial, industrial, and
multifamily buildings become at least 20 percent more energy
efficient by 2020. Through the Better Buildings Challenge, more
than 250 partners are achieving average energy savings of 2.5%
annually. These partners are on track to achieve the goal of
more than 20% energy savings over 10 years and have saved 36
trillion Btus and $300 million since the Challenge began in
2011.
Curbing greenhouse gas emissions with advanced
refrigeration systems. Through the Building Technologies
Office's Emerging Technologies R&D; program, a leading
commercial refrigeration manufacturer worked with Oak Ridge
National Laboratory to design a refrigeration system with 25%
lower energy consumption and 78% lower GHG emissions than
existing systems.
Providing consumers billions of dollars in energy
savings. As part of President Obama's Climate Action Plan, the
Energy Department finalized ten energy efficiency standards in
2014. Altogether, those ten standards will help reduce carbon
dioxide emissions by over 435 million metric tons and save
American families and businesses $78 billion in electricity
bills through 2030.
The program uses a three-pronged strategy: (1) High Impact
Technology Research and Development--research and development
(R&D;) targeting the greatest opportunities to develop high-
impact new cost-effective energy efficiency products and
solutions (i.e., the highest potential market and energy
efficiency impact); (2) Technology-to-Market--validating and
driving these technology products and solutions into the market
by verifying and improving performance and cost, providing
improved data and information, and partnering with
manufacturers and users; and (3) Lock In Savings--where a
government role is appropriate and justified, locking in the
savings through market based (e.g., working with the
Environmental Protection Agency on the ENERGY STAR Program) and
regulatory (i.e., codes and standards) efforts that provide
clear public and net economic benefits to both producers and
consumers. The program invests in a balanced portfolio of
activities that are determined to contribute optimally to
national energy efficiency goals.
R&D; on next-generation building technologies will lead to
advances in end-uses representing the majority of building
energy consumption, including efficient lighting that is cost-
competitive in today's market, new technologies in heating and
cooling, and windows that decrease energy demands and improve
comfort. DOE also invests in whole building R&D; that
demonstrates how new energy efficient technologies can function
together to create an efficient system, achieve greater overall
savings, and inspire the next-generation of buildings. For
homes, this will translate into a new generation of housing
stock that is durable, uses smarter energy management systems,
and offers substantial energy savings.
In addition to creating energy efficiency opportunities in
the new buildings market, DOE invests in activities that target
the large savings potential that exists across the stock of
existing homes, many built before modern codes. Here, the
Department is working to reduce U.S. building-related energy
use in existing homes by 20 percent by 2020 and 40 percent by
2030 through applied research (e.g. how builder/retrofitters
can more cost effectively install technical solutions into
homes) to: resolve the major technology to market challenges to
achieving these goals, develop infrastructure to support the
construction or improvement of homes to meet higher performance
levels, and demonstrate and then promote higher energy
efficiency home retrofit and model homes for new construction
that may be implemented at the state and local level.
The Better Buildings Challenge is a signature partnership
effort to make our Nation's buildings 20% more energy efficient
over the next ten years, with over 250 partners across the
commercial, industrial, residential, and public sectors.
Together, these partners account for approximately 3.5 billion
square feet of building floor space, more than 600
manufacturing facilities, and $5.5 billion in private sector
financing. As partners advance toward meeting their individual
goals, the Better Buildings Challenge website\3\ will highlight
their commitment and progress, including the sharing of
showcase projects and hundreds of replicable implementation
models that other organizations can adopt. To date, more than
$3 billion of the commitment from private sector financial
firms has been extended to projects, and we are continuing to
look for ways to expand access to private-sector financing, as
this remains an important barrier cited by commercial building
owners.
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\3\The BBC website address is www.better buildings.energy.gov/
challenge.
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In addition, the Department sets minimum energy efficiency
standards for approximately 60 categories of appliances and
equipment used in homes, businesses, and other applications, as
required by existing law. For most products, Congress passed
laws that set initial federal energy efficiency standards and
test procedures, and that established schedules for DOE to
review and update these standards and test procedures. The
Appliance and Equipment Standards Program reduces
manufacturers' regulatory burden and costs, and therefore costs
to consumers, by providing single national standards in place
of a patchwork of state-by-state standards. Since 2009, 25 new
or updated standards, covering more than 30 products, have been
issued and will ensure annual energy savings over the coming
years. The Program is highly effective, achieving dramatic
bang-for-the-buck in energy savings. The cumulative utility
bill savings to consumers from energy efficiency standards is
estimated to be nearly $1.8 trillion by 2030.
Further, DOE assists with the adoption and implementation
of state and local building codes for both commercial and
residential buildings. Building energy codes are an existing
solution that can provide between 20-30 percent whole building
energy savings. The program assists states and localities in
adopting, complying with, and enforcing energy codes for
residential and commercial buildings, resulting in higher-
performing buildings that maximize cost-effective energy
savings. Pacific Northwest National Laboratory estimates the
annual impact of these activities to be over 100 trillion Btu
of primary energy savings and almost $780 million in energy
cost savings. To accomplish its objectives in this area, DOE
has developed a suite of assistance tools it routinely provides
to state and local authorities.
In FY2016, DOE has requested $264,000,000 for the Building
Technologies Office.
Advanced manufacturing
The U.S. manufacturing sector offers important
opportunities for cutting energy waste, while improving our
industrial competitiveness and promoting economic growth. In
the United States, manufacturing represents about 12% of the
gross domestic product and nearly 12 million jobs.\4\ While
being a key sector underlying long-term economic growth,
manufacturing also has an annual energy bill of about $200
billion and uses roughly one-third of the primary energy (and
related GHG emissions) in the U.S.\5\ U.S. manufacturing can
particularly benefit from technologies for energy efficiency
across the board, as industry must continually improve
productivity and efficiency to remain globally competitive.
---------------------------------------------------------------------------
\4\Full-time and Part-time employees by industry, U.S. Department
of Commerce, http://www.bea.gov/iTable/
iTable.cfm?reqid=5&step;=4&isuri;=1&402=43&403=1#reqid=5&step;=4&
isuri=1&402=43&403=1 Value added by industry as percentage of GDP, U.S.
Department of Commerce, http://www.bea.gov/iTable/
iTable.cfm?reqid=5&step;=4&isuri;=1&402=5&403=1#reqid=5&step;=4&isuri;=1&402
=5&403=1
\5\Annual Energy Outlook 2014: Reference Case Data, U.S. Energy
Information Administration, available from: http://www.eia.gov/
forecasts/aeo/data.cfm
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EERE's Advanced Manufacturing Office (AMO) partners with
industry, small business, universities, and other stakeholders
to identify and invest in emerging technologies with the
potential to create high-quality manufacturing jobs, enhance
global competitiveness of the United States, and reduce energy
use by encouraging a culture of continuous enrichment in
corporate energy management. Key recent AMO accomplishments
include:
Pushing the boundaries of additive manufacturing.
The EERE-supported Manufacturing Demonstration Facility (MDF)
at Oak Ridge National Laboratory collaborated with private
sector partners to design and prototype a 3D-printed car--all
in just six months. This project was enabled through a
partnership between the MDF and industry stakeholders, which
developed breakthrough additive manufacturing processes and
allowed industry to print more efficiently and on a larger
scale than similar commercially available processes.
Assuring supply chains of materials critical to
clean energy technologies. The Critical Materials Institute
(CMI), an Energy Innovation Hub for the U.S. Department of
Energy (DOE), celebrated its second anniversary with twenty-
seven invention disclosures. Critical materials, including some
rare earth elements that possess unique magnetic, catalytic,
and luminescent properties, are key resources needed to
manufacture products for the clean energy economy.
Saving manufacturers money across the U.S.
Industrial Assessment Centers located within accredited
engineering programs at 24 universities across the country
conduct energy audit assessments at manufacturers' sites.
According to analyses done by the program, on average, each
manufacturer identifies about $140,000 in potential annual
energy savings. Almost 17,000 manufacturers have benefited from
the program and implemented savings resulting in approximately
5 million metric tons of carbon dioxide emission reductions.\6\
---------------------------------------------------------------------------
\6\Internal analysis based on data from the Industrial Assessment
Centers Database, http://iac.rutgers.edu/database.
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AMO's research, development, demonstration, and deployment
investments advance high-impact technologies for energy
efficiency in the manufacturing sector in addition to
foundational, cross-cutting manufacturing and materials
technologies critical to efficient and competitive domestic
manufacturing of clean energy products. AMO's investments in
foundational technologies are anticipated to have a high impact
in helping save energy and improve competitiveness and that
will benefit multiple industries in the installed industrial
base. When R&D; investments are approached in this manner, the
extensive supply chains associated with manufacturing multiply
the government's initial investments from one industry to
multiple applications in other industries and end-use products.
The Program addresses these clean energy manufacturing
challenges using three primary modalities of support: research
and development of early stage manufacturing technologies
through the support of individual R&D; projects, pre-commercial
technology development through facilities and manufacturing
consortia, and technology assistance through manufacturing
partnership participation, assessment and evaluation tools.
EERE leads the Department of Energy's Clean Energy
Manufacturing Initiative which is a Department-wide approach to
increase U.S. competitiveness in clean energy manufacturing
while advancing progress toward the nation's energy goals.
EERE-supported Clean Energy Manufacturing Innovation Institutes
are public-private partnerships focusing on RD&D; of
foundational technologies that are broadly applicable and
prevalent in multiple industries and markets within the energy
sector and that have potentially transformational technical and
productivity impacts for the U.S. manufacturing sector more
broadly. All institutes will be actively managed through
cooperative agreements with well-defined milestones, and
oriented toward clearly stated research objectives and outcomes
to ensure timely achievement of all technical, operational,
organizational and partnership goals. Also, within 5 years of
its launch, each institute is expected to be financially
independent and sustainable using only private-sector and other
sources of funding without further federal financial
assistance.
One example of the Department's efforts in this area
include our recently selected Institute for Advanced Composites
Manufacturing Innovation, led by the University of Tennessee
and headquartered in Knoxville, already has 122 committed
partners united toward the common goal of lowering overall
costs for manufacturing advanced composites by 50 percent,
reducing the energy use to do so by 75 percent, and increasing
the ability to recycle composites by more than 95 percent.
Advanced composites have the potential to deliver clean energy
products with better performance and lower costs, such as
lighter and longer wind turbines blades; high pressure tanks
for natural gas- and hydrogen-fueled cars; lighter, highly
energy-efficient industrial equipment; and lightweight
vehicles.
In addition, the Department has released a Notice of Intent
to issue a competitive solicitation in 2015 to fund a Clean
Energy Manufacturing Innovation Institute focused on smart
manufacturing. Smart manufacturing utilizes a suite of tools to
enable real-time operational energy efficiency improvements in
manufacturing ranging from unit processes to factory-wide
integration to enterprise-wide energy management.
The Department also has active technical assistance
programs aimed at reducing manufacturing energy intensity by
25% over ten years by engaging a diverse set of industry
partners in effective business models, continuous improvement
in energy efficiency, modeling key processes, and supporting
standards and certifications for third-party services. One
example is the 24 existing Industrial Assessment Centers
(IACs), situated at universities with major engineering
programs, which conduct energy efficiency, productivity
improvement, and waste reduction assessments for small- and
medium-sized manufacturer at no cost to them. DOE technical
assistance also supports the achievement of the national goal
set by President Obama of developing 40 gigawatts of new, cost-
effective industrial CHP by 2020. And, DOE provides tools to
support improvements in a number of common systems in
manufacturing facilities, including motor, steam, compressed
air, and pumping systems.
In FY2016, DOE has requested $404,000,000 for the Advanced
Manufacturing Office.
Weatherization and Intergovernmental Programs
For decades, states have demonstrated leadership through
their unique authorities to develop and implement energy
efficiency and renewable energy policies and programs. State
governments wield considerable influence in the building sector
through upgraded building codes and incentives; in the utility
sector through energy efficiency and renewable energy targets
and customer programs; and in the industrial sector with
policies that encourage energy efficiency through activities
such as energy audits and combined heat and power.
EERE's Office of Weatherization and Intergovernmental
Programs (WIP) partners with its national network of state and
local organizations to significantly accelerate the deployment
of energy efficiency and renewable energy technologies and
practices by a wide range of government, community, and
business stakeholders.
Key recent WIP accomplishments include:
Provided critical funding for states to weatherize
homes. In FY 2014 alone, EERE helped improve the energy
performance and comfort in the homes of 37,831 American low-
income families across the Nation, resulting in an estimated
1.1 trillion Btu of first-year energy savings and $16 million
in first-year energy cost savings.
Maintained strict certification and auditing
requirements to protect taxpayers. In FY2014, WAP implemented
national certifications and work specifications for residential
retrofit worker training, energy audits and weatherization
methods.
Included within the Office of Weatherization and
Intergovernmental Programs are the Weatherization Assistance
Program (WAP) and the State Energy Program (SEP).
The Weatherization Assistance Program provides funding
through formula grants to increase the energy efficiency of
dwellings owned or occupied by low-income persons, reduce their
total residential energy expenditures, and improve their health
and safety. Through retrofitting residential buildings, WAP
activities reduce the cost of low-income household energy
bills, which are significantly disproportionately higher
relative to higher income households. Up to 40 million low-
income households in the U.S. are eligible for low-income
housing energy assistance. In FY2014, the Weatherization
Assistance Program funding weatherized approximately 38,000
homes, exceeding its fiscal year goal of 24,600 homes retrofits
for low income families by approximately 50 percent. The
Weatherization Assistance Program also provides training and
technical assistance to improve program effectiveness, service
deliver, resource accountability, and operation efficiency.
Specifically, training and technical assistance funding
supports the development and implementation of a variety of
tools needed to implement work quality, training accreditation,
and worker certification.
The State Energy Program assists states through competitive
and formula funding in establishing and implementing energy
efficiency and renewable energy plans, policies, and programs
to reduce energy costs, increase competitiveness, enhance
economic competitiveness, improve emergency planning, and
improve the environment. States have purview over many of the
policy and program levers that can catalyze greater investment
in clean energy and help the country realize the suite of
economic and environmental benefits associated with clean
energy. The State Energy Program provides states with capacity
building resources, technical assistance, and best practice
sharing networks to facilitate the adoption of plans, policies,
and programs that are appropriate based on state and regional
circumstances.
In addition, the Local Energy Program, proposed as part of
the Department's FY2016 Budget Request, is a new program that
will provide support to local governments for energy planning,
program development and implementation, analysis, and other
related efforts through technical assistance and competitively
awarded grants. Local energy efficiency policies, implemented
at this scale, in a municipality, county or metropolitan area
will lower energy costs, reduce greenhouse gas emissions, and
support economic development goals. The objective of the Local
Energy Program is to serve as a catalyst for developing
creative and effective solutions through projects that improve
local energy code implementation; expansion of energy upgrades
in commercial buildings and residential buildings, upgrades to
the energy efficiency of their own public facilities and
operations; development of sustainable funding and financing
resources.
In FY2016, DOE has requested $318,499,000 for the Office of
Weatherization and Intergovernmental Programs.
Federal Energy Management
The U.S. Federal government is the Nation's single largest
user of energy and has both a tremendous opportunity and an
acknowledged responsibility to lead by example in saving
energy. Since 1975, the Federal Government has reduced its
energy intensity by 46.2 percent, and 20.6 percent from 2003.
Federal GHG emissions have also dropped 17.2 percent since
2008. Additionally, the Federal Government is credited with
using 9.2 percent of its electricity from renewable sources.
Federal Agencies have also made progress on a number of other
fronts, like reducing water use by 19 percent since 2007.\7\
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\7\White House Fact Sheet: Reducing Greenhouse Gas Emissions in the
Federal Government and Across the Supply Chain. https://
www.whitehouse.gov/the-press-office/2015/03/19/fact-sheet-reducing-
greenhouse-gas-emissions-federal-government-and-acro
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A number of energy efficiency goals for the federal
government were recently extended through 2025 by Executive
Order 13693\8\ signed in March 2015. It set goals to cut the
Federal Government's greenhouse gas (GHG) emissions by 40
percent below 2008 levels by 2025--saving tax payers up to $18
billion in avoided energy costs--and increase the share of
electricity the Federal Government consumes from renewable
sources to 30 percent. The new E.O. builds off of the strong
progress the federal government has already made.
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\8\Executive Order 13693 is accessible at https://
www.whitehouse.gov/the-press-office/2015/03/19/executive-order-
planning-federal-sustainability-next-decade.
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DOE plays a critical role in providing technical assistance
to Federal agencies to increase understanding and accelerate
cost-effective adoption of energy-saving technologies and
strategies. DOE's Federal Energy Management Program (FEMP) has
developed strategic programs to identify high impact
opportunities with public-private sector partnerships as well
as technical approaches to address critical barriers across the
Federal Government.
FEMP activities contribute to reducing the energy intensity
at Federal facilities, lowering their energy bills, and
providing environmental benefits through:
Interagency coordination to align
interagency efforts surrounding Federal energy
management planning and legislation compliance;
Training federal agency managers about the
latest energy requirements, best practices, and
technologies;
Reporting/tracking tools that provide
centralized reporting, data collection, and strategic
communication;
Financial resources and technical assistance
to increase Federal agencies' investments in energy
efficiency, water conservation, and renewable energy;
and
Data Center Assistance to help agencies
develop and implement data center efficiency projects
through technical assistance, tools, and training that
increase adaptation of measurement protocols, reporting
mechanisms, and best practices.
Key recent FEMP accomplishments include:
Federal Energy Efficiency Fund. The First
Federal Energy Efficiency Fund Solicitation in FY 2014
was awarded $5 million to 9 projects worth a total
investment of $120 million in renewable energy and
combined heat and power projects (a 24:1 leveraging
ratio). Many of the projects are first-time projects
for particular agencies, offering the potential of more
in the future. The effort also brought forward a broad
set of projects through which FEMP can provide other
assistance to federal agencies.
New Better Buildings Challenge and
Accelerator for Data Centers. FEMP spearheaded a new
Better Buildings Challenge and Accelerator for Data
Centers announced in fall 2014, in coordination with
EERE's Building Technologies Office. This Challenge has
engaged federal agencies, national laboratories, and
the private sector, including eBay and Staples, in
efforts to greatly improve data center efficiency. Data
center energy consumption is significant nationally and
across the federal sector, and it can be reduced 20%-
40% by applying best management energy efficiency
measures and strategies typically with short returns on
investment.
In December 2011, President Obama signed a Presidential
Memorandum directing the Federal government to enter into a
minimum of $2 billion in performance-based contracts over the
next two years for Federal building energy efficiency. In May
of 2014, the president announced the expansion and extension of
the President's Performance Contracting Challenge (PPCC) to $4
billion by 2016. In FY 2016, DOE's Federal Energy Management
Program will continue to support the PPCC by assisting agencies
to successfully meet the $4 billion goal, and helping agencies
to continue their acceleration of using performance contracts
to meet future energy investment needs and goals. FEMP will
also share and rely on best practices from the PPCC to partner
with other government and private sector stakeholders/partners
to accelerate their use of performance contracts. As of March
15th, 2015, federal agencies have developed a pipeline of about
$4.74 billion in projects, which exceeds the $3.97 billion
commitment. Agencies are working with FEMP and to date have
awarded a total of 199 projects with an investment value of
$2.01 billion and an estimate pipeline of $2.7 billion.
In FY2016, DOE has requested $43,088,000 for the Federal
Energy Management Program.
conclusion
Through R&D;, deployment, and collaborations at all levels
of government and the private sector, the Department of Energy
aims to capitalize on the opportunities that energy efficiency
affords. The Department's efforts to lead in next-generation
buildings and advanced manufacturing will result in a more
secure, resilient, and competitive energy economy. While we are
making progress, continued efforts are necessary to capture the
full set of opportunities.
The Administration looks forward to continuing to work with
the Congress on bipartisan legislation to support energy
efficiency and boost U.S. competitiveness and job creation.
From partnering with companies and businesses to reduce their
energy bills through the Better Buildings Initiative, to
Federal administrative actions to cut energy use across Federal
facilities, the Department is committed to winning the future
by catalyzing a homegrown, clean energy economy in the United
States.
Thank you again for the opportunity to speak to this
important issue, and I would be happy to answer any questions.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the original 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):
TABLE OF CONTENTS
Page
1.GEnergy Conservation and Production Act, Public Law 94-385, as
Amended........................................................ 23
2.GEnergy Independence and Security Act of 2007, Public Law 110-
140, as Amended................................................ 41
3.Energy Policy Act of 2005, Public Law 109-58, as Amended....... 48
4.Energy Policy Act of 1992, Public Law 102-486, as Amended...... 49
5.Energy Policy and Conservation Act, Public Law 94-163, as
Amended........................................................ 54
6.GNational Energy Conservation Policy Act, Public Law 95-619, as
Amended........................................................ 60
7.GFinancial Institutions Reform, Recovery, And Enforcement Act
of 1989, Public Law 101-73, as Amended......................... 67
8.Title 40, United States Code................................... 68
ENERGY CONSERVATION AND PRODUCTION ACT
Public Law 94-385, as amended
* * * * * * *
TITLE III--ENERGY CONSERVATION STANDARDS FOR NEW BUILDINGS
* * * * * * *
DEFINITIONS
SEC. 303. AS USED IN THIS TITLE
* * * * * * *
(6) The term ``Federal building'' means any building
[to be constructed] constructed or altered by, or for
the use of, any Federal agency. Such term shall include
buildings built for the purpose of being leased by a
Federal agency, and privatized military housing.
* * * * * * *
(13) The term ``Federal building energy standards''
means energy consumption objectives to be met without
specification of the methods, materials, or equipment
to be employed in achieving those objectives, but
including statements of the requirements, criteria, and
evaluation methods to be used, and any necessary
commentary.
[(14) The term ``voluntary building energy code''
means a building energy code developed and updated
through a consensus process among interested persons,
such as that used by the Council of American Building
Officials; the American Society of Heating,
Refrigerating, and Air-Conditioning Engineers; or other
appropriate organizations.]
(14) Model building energy code.--The term `model
building energy code' means a voluntary building energy
code and standards developed and updated through a
consensus process among interested persons, such as the
IECC or the code used by--
(A) the Council of American Building
Officials, or its legal successor,
International Code Council, Inc.;
(B) the American Society of Heating,
Refrigerating, and Air-Conditioning Engineers;
or
(C) other appropriate organizations.
(15) The term ``CABO'' means the Council of American
Building Officials.
(16) The term ``ASHRAE'' means the American Society
of Heating, Refrigerating, and Air-Conditioning
Engineers.
(17) IECC.--The term ``IECC'' means the International
Energy Conservation Code.
(18) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Native
American Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4103).
(19) Major renovation.--The term ``major renovation''
means a modification of building energy systems
sufficiently extensive that the whole building can meet
energy standards for new buildings, based on criteria
to be established by the Secretary through notice and
comment rulemaking.
* * * * * * *
[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) In General.--The Secretary shall--
(1) encourage and support the adoption of building
energy codes by States, Indian tribes, and, as
appropriate, by local governments that meet or exceed
the model building energy codes, or achieve equivalent
or greater energy savings; and
(2) support full compliance with the State and local
codes.
(b) State and Indian Tribe Certification of Building Energy
Code Updates.--
(1) Review and updating of codes by each state and
indian tribe.--
(A) In general.--Not later than 2 years after
the date on which a model building energy code
is updated, each State or Indian tribe shall
certify whether or not the State or Indian
tribe, respectively, has reviewed and updated
the energy provisions of the building code of
the State or Indian tribe, respectively.
(B) Demonstration.--The certification shall
include a demonstration of whether or not the
energy savings for the code provisions that are
in effect throughout the State or Indian tribal
territory meet or exceed--
(i) the energy savings of the updated
model building energy code; or
(ii) the targets established under
section 307(b)(2).
(C) No model building energy code update.--If
a model building energy code is not updated by
a target date established under section
307(b)(2)(D), each State or Indian tribe shall,
not later than 2 years after the specified
date, certify whether or not the State or
Indian tribe, respectively, has reviewed and
updated the energy provisions of the building
code of the State or Indian tribe,
respectively, to meet or exceed the target in
section 307(b)(2).
(2) Validation by secretary.--Not later than 90 days
after a State or Indian tribe certification under
paragraph (1), the Secretary shall--
(A) determine whether the code provisions of
the State or Indian tribe, respectively, meet
the criteria specified in paragraph (1); and
(B) if the determination is positive,
validate the certification.
(c) Improvements in Compliance With Building Energy
Codes.--
(1) Requirement.--
(A) In general.--Not later than 3 years after
the date of a certification under subsection
(b), each State and Indian tribe shall certify
whether or not the State and Indian tribe,
respectively, has--
(i) achieved full compliance under
paragraph (3) with the applicable
certified State and Indian tribe
building energy code or with the
associated model building energy code;
or
(ii) made significant progress under
paragraph (4) toward achieving
compliance with the applicable
certified State and Indian tribe
building energy code or with the
associated model building energy code.
(B) Repeat certifications.--If the State or
Indian tribe certifies progress toward
achieving compliance, the State or Indian tribe
shall repeat the certification until the State
or Indian tribe certifies that the State or
Indian tribe has achieved full compliance,
respectively.
(2) Measurement of compliance.--A certification under
paragraph (1) shall include documentation of the rate
of compliance based on--
(A) independent inspections of a random
sample of the buildings covered by the code in
the preceding year; or
(B) an alternative method that yields an
accurate measure of compliance.
(3) Achievement of compliance.--A State or Indian
tribe shall be considered to achieve full compliance
under paragraph (1) if--
(A) at least 90 percent of building space
covered by the code in the preceding year
substantially meets all the requirements of the
applicable code specified in paragraph (1), or
achieves equivalent or greater energy savings
level; or
(B) the estimated excess energy use of
buildings that did not meet the applicable code
specified in paragraph (1) in the preceding
year, compared to a baseline of comparable
buildings that meet this code, is not more than
5 percent of the estimated energy use of all
buildings covered by this code during the
preceding year.
(4) Significant progress toward achievement of
compliance.--A State or Indian tribe shall be
considered to have made significant progress toward
achieving compliance for purposes of paragraph (1) if
the State or Indian tribe--
(A) has developed and is implementing a plan
for achieving compliance during the 8-year-
period beginning on the date of enactment of
this paragraph, including annual targets for
compliance and active training and enforcement
programs; and
(B) has met the most recent target under
subparagraph (A).
(5) Validation by secretary.--Not later than 90 days
after a State or Indian tribe certification under
paragraph (1), the Secretary shall--
(A) determine whether the State or Indian
tribe has demonstrated meeting the criteria of
this subsection, including accurate measurement
of compliance; and
(B) if the determination is positive,
validate the certification.
(d) States or Indian Tribes That Do Not Achieve
Compliance.--
(1) Reporting.--A State or Indian tribe that has not
made a certification required under subsection (b) or
(c) by the applicable deadline shall submit to the
Secretary a report on--
(A) the status of the State or Indian tribe
with respect to meeting the requirements and
submitting the certification; and
(B) a plan for meeting the requirements and
submitting the certification.
(2) Federal support.--For any State or Indian tribe
for which the Secretary has not validated a
certification by a deadline under subsection (b) or
(c), the lack of the certification may be a
consideration for Federal support authorized under this
section for code adoption and compliance activities.
(3) Local government.--In any State or Indian tribe
for which the Secretary has not validated a
certification under subsection (b) or (c), a local
government may be eligible for Federal support by
meeting the certification requirements of subsections
(b) and (c).
(4) Annual reports by secretary.--
(A) In general.--The Secretary shall annually
submit to Congress, and publish in the Federal
Register, a report on--
(i) the status of model building
energy codes;
(ii) the status of code adoption and
compliance in the States and Indian
tribes;
(iii) implementation of this section;
and
(iv) improvements in energy savings
over time as result of the targets
established under section 307(b)(2).
(B) Impacts.--The report shall include
estimates of impacts of past action under this
section, and potential impacts of further
action, on--
(i) upfront financial and
construction costs, cost benefits and
returns (using investment analysis),
and lifetime energy use for buildings;
(ii) resulting energy costs to
individuals and businesses; and
(iii) resulting overall annual
building ownership and operating costs.
(e) Technical Assistance to States and Indian Tribes.--The
Secretary shall provide technical assistance to States and
Indian tribes to implement the goals and requirements of this
section, including procedures and technical analysis for States
and Indian tribes--
(1) to improve and implement State residential and
commercial building energy codes;
(2) to demonstrate that the code provisions of the
States and Indian tribes achieve equivalent or greater
energy savings than the model building energy codes and
targets;
(3) to document the rate of compliance with a
building energy code; and
(4) to otherwise promote the design and construction
of energy efficient buildings.
(f) Availability of Incentive Funding.--
(1) In general--The Secretary shall provide incentive
funding to States and Indian tribes--
(A) to implement the requirements of this
section;
(B) to improve and implement residential and
commercial building energy codes, including
increasing and verifying compliance with the
codes and training of State, tribal, and local
building code officials to implement and
enforce the codes; and
(C) to promote building energy efficiency
through the use of the codes.
(2) Additional funding.--Additional funding shall be
provided under this subsection for implementation of a
plan to achieve and document full compliance with
residential and commercial building energy codes under
subsection (c)--
(A) to a State or Indian tribe for which the
Secretary has validated a certification under
subsection (b) or (c); and
(B) in a State or Indian tribe that is not
eligible under subparagraph (A), to a local
government that is eligible under this section.
(3) Training.--Of the amounts made available under
this subsection, the State or Indian tribe may use
amounts required, but not to exceed $750,000 for a
State, to train State and local building code officials
to implement and enforce codes described in paragraph
(2).
(4) Local governments.--States may share grants under
this subsection with local governments that implement
and enforce the codes.
(g) Stretch Codes and Advanced Standards.--
(1) In general.--The Secretary shall provide
technical and financial support for the development of
stretch codes and advanced standards for residential
and commercial buildings for use as--
(A) an option for adoption as a building
energy code by local, tribal, or State
governments; and
(B) guidelines for energy-efficient building
design.
(2) Targets.--The stretch codes and advanced
standards shall be designed--
(A) to achieve substantial energy savings
compared to the model building energy codes;
and
(B) to meet targets under section 307(b), if
available, at least 3 to 6 years in advance of
the target years.
(h) Studies.--The Secretary, in consultation with building
science experts from the National Laboratories and institutions
of higher education, designers and builders of energy-efficient
residential and commercial buildings, code officials, and other
stakeholders, shall undertake a study of the feasibility,
impact, economics, and merit of--
(1) code improvements that would require that
buildings be designed, sited, and constructed in a
manner that makes the buildings more adaptable in the
future to become zero-net-energy after initial
construction, as advances are achieved in energy-saving
technologies;
(2) code procedures to incorporate measured
lifetimes, not just first-year energy use, in trade-
offs and performance calculations; and
(3) legislative options for increasing energy savings
from building energy codes, including additional
incentives for effective State and local action, and
verification of compliance with and enforcement of a
code other than by a State or local government.
(i) Effect on Other Laws.--Nothing in this section or
section 307 supersedes or modifies the application of sections
321 through 346 of the Energy Policy and Conservation Act (42
U.S.C. 6291 et seq.).
(j) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section and section 307
$200,000,000, to remain available until expended.
* * * * * * *
SEC. 305. FEDERAL BUILDING ENERGY EFFICIENCY STANDARDS.
(a)(1) In General.--Not later than 2 years after the date
of the enactment of the Energy Policy Act of 1992, the
Secretary, after consulting with appropriate Federal agencies,
CABO, ASHRAE, the National Association of Home Builders, the
Illuminating Engineering Society, the American Institute of
Architects, the National Conference of the States on Building
Codes and Standards, and other appropriate persons, shall
establish, by rule, Federal building energy standards that
require in new Federal buildings those energy efficiency
measures that are technologically feasible and economically
justified. Such standards shall become effective no later than
1 year after such rule is issued.
(2) The standards established under paragraph (1) shall--
(A) contain energy saving and renewable energy
specifications that meet or exceed the energy saving
and renewable energy specifications of the 2004
International Energy Conservation Code (in the case of
residential buildings) or ASHRAE Standard 90.1-2004 (in
the case of commercial buildings);
(B) to the extent practicable, use the same format as
the appropriate [voluntary building energy code] model
building energy code; and
(C) consider, in consultation with the Environmental
Protection Agency and other Federal agencies, and where
appropriate contain, measures with regard to radon and
other indoor air pollutants.
[(3)(A) Not later than 1 year after the date of enactment
of this paragraph, the Secretary shall establish, by rule,
revised Federal building energy efficiency performance
standards that require that--
[(i) if life-cycle cost-effective for new Federal
buildings--
[(I) the buildings be designed to achieve
energy consumption levels that are at least 30
percent below the levels established in the
version of the ASHRAE Standard or the
International Energy Conservation Code, as
appropriate, that is in effect as of the date
of enactment of this paragraph; and
[(II) sustainable design principles are
applied to the siting, design, and construction
of all new and replacement buildings;
[(ii) if water is used to achieve energy efficiency,
water conservation technologies shall be applied to the
extent that the technologies are life-cycle cost-
effective; and
[(iii) if lifecycle cost-effective, as compared to
other reasonably available technologies, not less than
30 percent of the hot water demand for each new Federal
building or Federal building undergoing a major
renovation be met through the installation and use of
solar hot water heaters.
[(B) Not later than 1 year after the date of approval of
each subsequent revision of the ASHRAE Standard or the
International Energy Conservation Code, as appropriate, the
Secretary shall determine, based on the cost-effectiveness of
the requirements under the amendment, whether the revised
standards established under this paragraph should be updated to
reflect the amendment.]
(3) Revised Federal Building Energy Efficiency Performance
Standards; Certification for Green Buildings.--
(A) Revised federal building energy efficiency
performance standards.--
(i) In general.--Not later than 1 year after
the date of enactment of the Energy Savings and
Industrial Competitiveness Act of 2015, the
Secretary shall establish, by rule, revised
Federal building energy efficiency performance
standards that require that--
(I) new Federal buildings and
alterations and additions to existing
Federal buildings--
(aa) meet or exceed the most
recent revision of the
International Energy
Conservation Code (in the case
of residential buildings) or
ASHRAE Standard 90.1 (in the
case of commercial buildings)
as of the date of enactment of
the Energy Savings and
Industrial Competitiveness Act
of 2015; and
(bb) meet or exceed the
energy provisions of State and
local building codes applicable
to the building, if the codes
are more stringent than the
International Energy
Conservation Code or ASHRAE
Standard 90.1, as applicable;
(II) unless demonstrated not to be
life-cycle cost effective for new
Federal buildings and Federal buildings
with major renovations--
(aa) the buildings be
designed to achieve energy
consumption levels that are at
least 30 percent below the
levels established in the
version of the ASHRAE Standard
or the International Energy
Conservation Code, as
appropriate, that is applied
under subclause (I)(aa),
including updates under
subparagraph (B); and
(bb) sustainable design
principles are applied to the
location, siting, design, and
construction of all new Federal
buildings and replacement
Federal buildings;
(III) if water is used to achieve
energy efficiency, water conservation
technologies shall be applied to the
extent that the technologies are life-
cycle cost effective; and
(IV) if life-cycle cost effective, as
compared to other reasonably available
technologies, not less than 30 percent
of the hot water demand for each new
Federal building or Federal building
undergoing a major renovation be met
through the installation and use of
solar hot water heaters.
(ii) Limitation.--Clause (i)(I) shall not
apply to unaltered portions of existing Federal
buildings and systems that have been added to
or altered.
(B) Updates.--Not later than 1 year after the date of
approval of each subsequent revision of the ASHRAE
Standard or the International Energy Conservation Code,
as appropriate, the Secretary shall determine whether
the revised standards established under subparagraph
(A) should be updated to reflect the revisions, based
on the energy savings and life-cycle cost-effectiveness
of the revisions.
[(C) In the budget request] (C) Budget request.--In
the budget request of the Federal agency for each
fiscal year and each report submitted by the Federal
agency under section 548(a) of the National Energy
Conservation Policy Act (42 U.S.C. 8258(a)), the head
of each Federal agency shall include--
* * * * * * *
[(D) Not later than 1 year after the date of
enactment of the Energy Independence and Security Act
of 2007, the Secretary shall establish, by rule,
revised Federal building energy efficiency performance
standards that require that--
[(i) For new Federal buildings and Federal
buildings undergoing major renovations, with
respect to which the Administrator of General
Services is required to transmit a prospectus
to Congress under section 3307 of title 40,
United States Code, in the case of public
buildings (as defined in section 3301 of title
40, United States Code), or of at least
$2,500,000 in costs adjusted annually for
inflation for other buildings:
[(I) The buildings shall be designed
so that the fossil fuel-generated
energy consumption of the buildings is
reduced, as compared with such energy
consumption by a similar building in
fiscal year 2003 (as measured by
Commercial Buildings Energy Consumption
Survey or Residential Energy
Consumption Survey data from the Energy
Information Agency), by the percentage
specified in the following table:
------------------------------------------------------------------------
[Fiscal Year Percentage Reduction
------------------------------------------------------------------------
[2010 55
[2015 65
[2020 80
[2025 90
[2030 100
------------------------------------------------------------------------
[(II) Upon petition by an agency
subject to this subparagraph, the
Secretary may adjust the applicable
numeric requirement under subclause (I)
downward with respect to a specific
building, if the head of the agency
designing the building certifies in
writing that meeting such requirement
would be technically impracticable in
light of the agency's specified
functional needs for that building and
the Secretary concurs with the agency's
conclusion. This subclause shall not
apply to the General Services
Administration.
[(III) Sustainable design principles
shall be applied to the siting, design,
and construction of such buildings. Not
later than 90 days after the date of
enactment of the Energy Independence
and Security Act of 2007, the
Secretary, after reviewing the findings
of the Federal Director under section
436(h) of that Act, in consultation
with the Administrator of General
Services, and in consultation with the
Secretary of Defense for considerations
relating to those facilities under the
custody and control of the Department
of Defense, shall identify a
certification system and level for
green buildings that the Secretary
determines to be the most likely to
encourage a comprehensive and
environmentally-sound approach to
certification of green buildings. The
identification of the certification
system and level shall be based on a
review of the Federal Director's
findings under section 436(h) of the
Energy Independence and Security Act of
2007 and the criteria specified in
clause (iii), shall identify the
highest level the Secretary determines
is appropriate above the minimum level
required for certification under the
system selected, and shall achieve
results at least comparable to the
system used by and highest level
referenced by the General Services
Administration as of the date of
enactment of the Energy Independence
and Security Act of 2007. Within 90
days of the completion of each study
required by clause (iv), the Secretary,
in consultation with the Administrator
of General Services, and in
consultation with the Secretary of
Defense for considerations relating to
those facilities under the custody and
control of the Department of Defense,
shall review and update the
certification system and level, taking
into account the conclusions of such
study.
[(ii) In establishing criteria for
identifying major renovations that are subject
to the requirements of this subparagraph, the
Secretary shall take into account the scope,
degree, and types of renovations that are
likely to provide significant opportunities for
substantial improvements in energy efficiency.
[(iii) In identifying the green building
certification system and level, the Secretary
shall take into consideration--
[(I) the ability and availability of
assessors and auditors to independently
verify the criteria and measurement of
metrics at the scale necessary to
implement this subparagraph;
[(II) the ability of the applicable
certification organization to collect
and reflect public comment;
[(III) the ability of the standard to
be developed and revised through a
consensus-based process;
[(IV) an evaluation of the robustness
of the criteria for a high-performance
green building, which shall give credit
for promoting--
[(aa) efficient and
sustainable use of water,
energy, and other natural
resources;
[(bb) use of renewable energy
sources;
[(cc) improved indoor
environmental quality through
enhanced indoor air quality,
thermal comfort, acoustics, day
lighting, pollutant source
control, and use of low-
emission materials and building
system controls; and
[(dd) such other criteria as
the Secretary determines to be
appropriate; and
[(V) national recognition within the
building industry.
[(iv) At least once every 5 years, and in
accordance with section 436 of the Energy
Independence and Security Act of 2007, the
Administrator of General Services shall conduct
a study to evaluate and compare available
third-party green building certification
systems and levels, taking into account the
criteria listed in clause (iii).
[(v) The Secretary may by rule allow Federal
agencies to develop internal certification
processes, using certified professionals, in
lieu of certification by the certification
entity identified under clause (i)(III). The
Secretary shall include in any such rule
guidelines to ensure that the certification
process results in buildings meeting the
applicable certification system and level
identified under clause (i)(III). An agency
employing an internal certification process
must continue to obtain external certification
by the certification entity identified under
clause (i)(III) for at least 5 percent of the
total number of buildings certified annually by
the agency.
[(vi) With respect to privatized military
housing, the Secretary of Defense, after
consultation with the Secretary may, through
rulemaking, develop alternative criteria to
those established by subclauses (I) and (III)
of clause (i) that achieve an equivalent result
in terms of energy savings, sustainable design,
and green building performance.
[(vii) In addition to any use of water
conservation technologies otherwise required by
this section, water conservation technologies
shall be applied to the extent that the
technologies are life-cycle cost-effective.]
(D) Certification for green buildings.--
(i) Sustainable design principles.--
Sustainable design principles shall be applied
to the siting, design, and construction of
buildings covered by this subparagraph.
(ii) Selection of certification systems.--The
Secretary, after reviewing the findings of the
Federal Director under section 436(h) of the
Energy Independence and Security Act of 2007
(42 U.S.C. 17092(h)), in consultation with the
Administrator of General Services, and in
consultation with the Secretary of Defense
relating to those facilities under the custody
and control of the Department of Defense, shall
determine those certification systems for green
commercial and residential buildings that the
Secretary determines to be the most likely to
encourage a comprehensive and environmentally
sound approach to certification of green
buildings.
(iii) Basis for selection.--The determination
of the certification systems under clause (ii)
shall be based on ongoing review of the
findings of the Federal Director under section
436(h) of the Energy Independence and Security
Act of 2007 (42 U.S.C. 17092(h)) and the
criteria described in clause (v).
(iv) Administration.--In determining
certification systems under this subparagraph,
the Secretary shall--
(I) make a separate determination for
all or part of each system;
(II) confirm that the criteria used
to support the selection of building
products, materials, brands, and
technologies are fair and neutral
(meaning that such criteria are based
on an objective assessment of relevant
technical data), do not prohibit,
disfavor, or discriminate against
selection based on technically
inadequate information to inform human
or environmental risk, and are
expressed to prefer performance
measures whenever performance measures
may reasonably be used in lieu of
prescriptive measures; and
(III) use environmental and health
criteria that are based on risk
assessment methodology that is
generally accepted by the applicable
scientific disciplines.
(v) Considerations.--In determining the green
building certification systems under this
subparagraph, the Secretary shall take into
consideration--
(I) the ability and availability of
assessors and auditors to independently
verify the criteria and measurement of
metrics at the scale necessary to
implement this subparagraph;
(II) the ability of the applicable
certification organization to collect
and reflect public comment;
(III) the ability of the standard to
be developed and revised through a
consensus-based process;
(IV) an evaluation of the robustness
of the criteria for a high-performance
green building, which shall give credit
for promoting--
(aa) efficient and
sustainable use of water,
energy, and other natural
resources;
(bb) use of renewable energy
sources;
(cc) improved indoor
environmental quality through
enhanced indoor air quality,
thermal comfort, acoustics, day
lighting, pollutant source
control, and use of low-
emission materials and building
system controls; and
(dd) such other criteria as
the Secretary determines to be
appropriate; and
(V) national recognition within the
building industry.
(vi) Review.--The Secretary, in consultation
with the Administrator of General Services and
the Secretary of Defense, shall conduct an
ongoing review to evaluate and compare private
sector green building certification systems,
taking into account--
(I) the criteria described in clause
(v); and
(II) the identification made by the
Federal Director under section 436(h)
of the Energy Independence and Security
Act of 2007 (42 U.S.C. 17092(h)).
(vii) Exclusions.--
(I) In general.--Subject to subclause
(II), if a certification system fails
to meet the review requirements of
clause (v), the Secretary shall--
(aa) identify the portions of
the system, whether
prerequisites, credits, points,
or otherwise, that meet the
review criteria of clause (v);
(bb) determine the portions
of the system that are suitable
for use; and
(cc) exclude all other
portions of the system from
identification and use.
(II) Entire systems.--The Secretary
shall exclude an entire system from use
if an exclusion under subclause (I)--
(aa) impedes the integrated
use of the system;
(bb) creates disparate review
criteria or unequal point
access for competing materials;
or
(cc) increases agency costs
of the use.
(viii) Internal certification processes.--The
Secretary may by rule allow Federal agencies to
develop internal certification processes, using
certified professionals, in lieu of
certification by certification entities
identified under clause (ii).
(ix) Privatized military housing.--With
respect to privatized military housing, the
Secretary of Defense, after consultation with
the Secretary may, through rulemaking, develop
alternative certification systems and levels
than the systems and levels identified under
clause (ii) that achieve an equivalent result
in terms of energy savings, sustainable design,
and green building performance.
(x) Water conservation technologies.--In
addition to any use of water conservation
technologies otherwise required by this
section, water conservation technologies shall
be applied to the extent that the technologies
are life-cycle cost-effective.
(xi) Effective date.--
(I) Determinations made after
december 31, 2015.--The amendments made
by section 432(b)(1)(C) of Energy
Savings and Industrial Competitiveness
Act of 2015 shall apply to any
determination made by a Federal agency
after December 31, 2015.
(II) Determinations made on or before
december 31, 2015.--This subparagraph
(as in effect on the day before the
date of enactment of Energy Savings and
Industrial Competitiveness Act of 2015)
shall apply to any use of a
certification system for green
commercial and residential buildings by
a Federal agency on or before December
31, 2015.
(b) Report on Comparative Standards.--The Secretary shall
identify and describe, in the report required under section
308, the basis for any substantive difference between the
Federal building energy standards established under this
section (including differences in treatment of energy
efficiency and renewable energy) and the appropriate [voluntary
building energy code] model building energy code.
[(c) Periodic Review.--The Secretary shall periodically,
but not less than once every 5 years, review the Federal
building energy standards established under this section and
shall, if significant energy savings would result, upgrade such
standards to include all new energy efficiency and renewable
energy measures that are technologically feasible and
economically justified.]
[(d) Interim Standards.--Interim energy performance
standards for new Federal buildings issued by the Secretary
under this title as it existed before the date of the enactment
of the Energy Policy Act of 1992 shall remain in effect until
the standards established under subsection (a) become
effective.]
(c) Periodic Review.--The Secretary shall--
(1) once every 5 years, review the Federal building
energy standards established under this section; and
(2) on completion of a review under paragraph (1), if
the Secretary determines that significant energy
savings would result, upgrade the standards to include
all new energy efficiency and renewable energy measures
that are technologically feasible and economically
justified.
* * * * * * *
[SEC. 307. SUPPORT FOR VOLUNTARY BUILDING ENERGY CODES.
[(a) In general.--Not later than 1 year after the date of
the enactment of the Energy Policy Act of 1992, the Secretary,
after consulting with the Secretary of Housing and Urban
Development, the Secretary of Veterans Affairs, other
appropriate Federal agencies, CABO, ASHRAE, the National
Conference of States on Building Codes and Standards, and any
other appropriate building codes and standards organization,
shall support the upgrading of voluntary building energy codes
for new residential and commercial buildings. Such support
shall include--
[(1) a compilation of data and other information
regarding building energy efficiency standards and
codes in the possession of the Federal Government,
State and local governments, and industry
organizations;
[(2) assistance in improving the technical basis for
such standards and codes;
[(3) assistance in determining the cost-effectiveness
and the technical feasibility of the energy efficiency
measures included in such standards and codes; and
[(4) assistance in identifying appropriate measures
with regard to radon and other indoor air pollutants.
[(b) Review.--The Secretary shall periodically review the
technical and economic basis of voluntary building energy codes
and, based upon ongoing research activities--
[(1) recommend amendments to such codes including
measures with regard to radon and other indoor air
pollutants;
[(2) seek adoption of all technologically feasible
and economically justified energy efficiency measures;
and
[(3) otherwise participate in any industry process
for review and modification of such codes.]
SEC. 307. SUPPORT FOR MODEL BUILDING ENERGY CODES.
(a) In General.--The Secretary shall support the updating
of model building energy codes.
(b) Targets.--
(1) In general.--The Secretary shall support the
updating of the model building energy codes to enable
the achievement of aggregate energy savings targets
established under paragraph (2).
(2) Targets.--
(A) In general.--The Secretary shall work
with State, Indian tribes, local governments,
nationally recognized code and standards
developers, and other interested parties to
support the updating of model building energy
codes by establishing one or more aggregate
energy savings targets to achieve the purposes
of this section.
(B) Separate targets.--The Secretary may
establish separate targets for commercial and
residential buildings.
(C) Baselines.--The baseline for updating
model building energy codes shall be the 2009
IECC for residential buildings and ASHRAE
Standard 90.1-2010 for commercial buildings.
(D) Specific years.--
(i) In general.--Targets for specific
years shall be established and revised
by the Secretary through rulemaking and
coordinated with nationally recognized
code and standards developers at a
level that--
(I) is at the maximum level
of energy efficiency that is
technologically feasible and
life-cycle cost effective,
while accounting for the
economic considerations under
paragraph (4);
(II) is higher than the
preceding target; and
(III) promotes the
achievement of commercial and
residential high-performance
buildings through high
performance energy efficiency
(within the meaning of section
401 of the Energy Independence
and Security Act of 2007 (42
U.S.C. 17061)).
(ii) Initial targets.--Not later than
1 year after the date of enactment of
this clause, the Secretary shall
establish initial targets under this
subparagraph.
(iii) Different target years.--
Subject to clause (i), prior to the
applicable year, the Secretary may set
a later target year for any of the
model building energy codes described
in subparagraph (A) if the Secretary
determines that a target cannot be met.
(iv) Small business.--When
establishing targets under this
paragraph through rulemaking, the
Secretary shall ensure compliance with
the Small Business Regulatory
Enforcement Fairness Act of 1996 (5
U.S.C. 601 note; Public Law 104-121).
(3) Appliance standards and other factors affecting
building energy use.--In establishing building code
targets under paragraph (2), the Secretary shall
develop and adjust the targets in recognition of
potential savings and costs relating to--
(A) efficiency gains made in appliances,
lighting, windows, insulation, and building
envelope sealing;
(B) advancement of distributed generation and
on-site renewable power generation
technologies;
(C) equipment improvements for heating,
cooling, and ventilation systems;
(D) building management systems and SmartGrid
technologies to reduce energy use; and
(E) other technologies, practices, and
building systems that the Secretary considers
appropriate regarding building plug load and
other energy uses.
(4) Economic considerations.--In establishing and
revising building code targets under paragraph (2), the
Secretary shall consider the economic feasibility of
achieving the proposed targets established under this
section and the potential costs and savings for
consumers and building owners, including a return on
investment analysis.
(c) Technical Assistance to Model Building Energy Code-
Setting and Standard Development Organizations.--
(1) In general.--The Secretary shall, on a timely
basis, provide technical assistance to model building
energy code-setting and standard development
organizations consistent with the goals of this
section.
(2) Assistance.--The assistance shall include, as
requested by the organizations, technical assistance
in--
(A) evaluating code or standards proposals or
revisions;
(B) building energy analysis and design
tools;
(C) building demonstrations;
(D) developing definitions of energy use
intensity and building types for use in model
building energy codes to evaluate the
efficiency impacts of the model building energy
codes;
(E) performance-based standards;
(F) evaluating economic considerations under
subsection (b)(4); and
(G) developing model building energy codes by
Indian tribes in accordance with tribal law.
(3) Amendment proposals.--The Secretary may submit
timely model building energy code amendment proposals
to the model building energy code-setting and standard
development organizations, with supporting evidence,
sufficient to enable the model building energy codes to
meet the targets established under subsection (b)(2).
(4) Analysis methodology.--The Secretary shall make
publicly available the entire calculation methodology
(including input assumptions and data) used by the
Secretary to estimate the energy savings of code or
standard proposals and revisions.
(d) Determination.--
(1) Revision of model building energy codes.--If the
provisions of the IECC or ASHRAE Standard 90.1
regarding building energy use are revised, the
Secretary shall make a preliminary determination not
later than 90 days after the date of the revision, and
a final determination not later than 15 months after
the date of the revision, on whether or not the
revision will--
(A) improve energy efficiency in buildings
compared to the existing model building energy
code; and
(B) meet the applicable targets under
subsection (b)(2).
(2) Codes or standards not meeting targets.--
(A) In general.--If the Secretary makes a
preliminary determination under paragraph
(1)(B) that a code or standard does not meet
the targets established under subsection
(b)(2), the Secretary may at the same time
provide the model building energy code or
standard developer with proposed changes that
would result in a model building energy code
that meets the targets and with supporting
evidence, taking into consideration--
(i) whether the modified code is
technically feasible and life-cycle
cost effective;
(ii) available appliances,
technologies, materials, and
construction practices; and
(iii) the economic considerations
under subsection (b)(4).
(B) Incorporation of changes.--
(i) In general.--On receipt of the
proposed changes, the model building
energy code or standard developer shall
have an additional 270 days to accept
or reject the proposed changes of the
Secretary to the model building energy
code or standard for the Secretary to
make a final determination.
(ii) Final determination.--A final
determination under paragraph (1) shall
be on the modified model building
energy code or standard.
(e) Administration.--In carrying out this section, the
Secretary shall--
(1) publish notice of targets and supporting analysis
and determinations under this section in the Federal
Register to provide an explanation of and the basis for
such actions, including any supporting modeling, data,
assumptions, protocols, and cost-benefit analysis,
including return on investment; and
(2) provide an opportunity for public comment on
targets and supporting analysis and determinations
under this section.
(f) Voluntary codes and standards.--Notwithstanding any
other provision of this section, any model building code or
standard established under section 304 shall not be binding on
a State, local government, or Indian tribe as a matter of
Federal law.
* * * * * * *
----------
ENERGY INDEPENDENCE AND SECURITY ACT OF 2007
Public Law 110-140, as amended
* * * * * * *
SEC. 436. HIGH PERFORMANCE GREEN FEDERAL BUILDINGS.
* * * * * * *
(h) Identification of Certification [System] Systems._
[(1) In general.--For the purpose of this section,
not later than 60 days after the date of enactment of
this Act, the Federal Director shall identify and shall
provide to the Secretary pursuant to section
305(a)(3)(D) of the Energy Conservation and Production
Act (42 U.S.C. 6834(a)(3)(D)), a certification system
that the Director determines to be the most likely to
encourage a comprehensive and environmentally-sound
approach to certification of green buildings.]
(1) In general.--Based on an ongoing review, the
Federal Director shall identify and shall provide to
the Secretary pursuant to section 305(a)(3)(D) of the
Energy Conservation and Production Act (42 U.S.C.
6834(a)(3)(D)), a list of those certification systems
that the Director identifies as the most likely to
encourage a comprehensive and environmentally sound
approach to certification of green buildings.
(2) Basis.--The [system] systems identified under
paragraph (1) shall be based on--
[(A) a study completed every 5 years and
provided to the Secretary pursuant to section
305(a)(3)(D) of that Act, which shall be
carried out by the Federal Director to compare
and evaluate standards;]
(A) an ongoing review provided to the
Secretary pursuant to section 305(a)(3)(D) of
the Energy Conservation and Production Act (42
U.S.C. 6834(a)(3)(D)), which shall--
(i) be carried out by the Federal
Director to compare and evaluate
standards; and
(ii) allow any developer or
administrator of a rating system or
certification system to be included in
the review;
(B) the ability and availability of assessors
and auditors to independently verify the
criteria and measurement of metrics at the
scale necessary to implement this subtitle;
(C) the ability of the applicable standard-
setting organization to collect and reflect
public comment;
(D) the ability of the standard to be
developed and revised through a consensus-based
process;
(E) an evaluation of the robustness of the
criteria for a high-performance green building,
which shall give credit for promoting--(i)
efficient and sustainable use of water, energy,
and other natural resources; (ii) use of
renewable energy sources; (iii) improved indoor
environmental quality through enhanced indoor
air quality, thermal comfort, acoustics, day
lighting, pollutant source control, and use of
low-emission materials and building system
controls; (iv) reduced impacts from
transportation through building location and
site design that promote access by public
transportation; and (v) such other criteria as
the Federal Director determines to be
appropriate; [and]
(F) national recognition within the building
industry[.];
(G) a finding that, for all credits
addressing grown, harvested, or mined
materials, the system does not discriminate
against the use of domestic products that have
obtained certifications of responsible
sourcing; and
(H) a finding that the system incorporates
life-cycle assessment as a credit pathway.
* * * * * * *
SEC. 452. [ENERGY-INTENSIVE INDUSTRIES PROGRAM.] FUTURE OF INDUSTRY
PROGRAM.
(a) Definitions.--In this section:
* * * * * * *
(3) Energy service provider.--The term ``energy
service provider'' means any business providing
technology or services to improve the energy
efficiency, water efficiency, power factor, or load
management of a manufacturing site or other industrial
process in an energy-intensive industry, or any utility
operating under a utility energy service project.
[(3)](4) Feedstock.--The term ``feedstock'' means the
raw material supplied for use in manufacturing,
chemical, and biological processes.
[(4)](5) Partnership.--The term ``partnership'' means
an energy efficiency partnership established under
subsection (c)(1)(A).
[(5)](6) Program.--The term ``program'' means the
energy-intensive industries program established under
subsection (b).
(b) Establishment of Program.--The Secretary shall
establish a program under which the Secretary, in cooperation
with energy-intensive industries and national industry trade
associations representing the energy-intensive industries,
shall support, research, develop, and promote the use of new
materials processes, technologies, and techniques to optimize
energy efficiency and the economic competitiveness of the
United States' industrial and commercial sectors.
* * * * * * *
(e) Institution Of Higher Education-Based Industrial
Research And Assessment Centers.--[The Secretary]
(1) In general.--The Secretary shall provide funding
to institution of higher education-based industrial
research and assessment centers, whose purpose shall
be--
[(1)](A) to identify opportunities for
optimizing energy efficiency and environmental
performance, including assessments of
sustainable manufacturing goals and the
implementation of information technology
advancements for supply chain analysis,
logistics, system monitoring, industrial and
manufacturing processes, and other purposes;
[(2)](B) to promote applications of emerging
concepts and technologies in small- and medium-
sized manufacturers;
[(3)](C) to promote research and development
for the use of alternative energy sources to
supply heat, power, and new feedstocks for
energy-intensive industries;
[(4)](D) to coordinate with appropriate
Federal and State research offices, and provide
a clearinghouse for industrial process and
energy efficiency technical assistance
resources; and
[(5)](E) to coordinate with State-accredited
technical training centers and community
colleges, while ensuring appropriate services
to all regions of the United States.
(2) Coordination.--To increase the value and
capabilities of the industrial research and assessment
centers, the centers shall--
(A) coordinate with Manufacturing Extension
Partnership Centers of the National Institute
of Standards and Technology;
(B) coordinate with the Building Technologies
Program of the Department of Energy to provide
building assessment services to manufacturers;
(C) increase partnerships with the National
Laboratories of the Department of Energy to
leverage the expertise and technologies of the
National Laboratories for national industrial
and manufacturing needs;
(D) increase partnerships with energy service
providers and technology providers to leverage
private sector expertise and accelerate
deployment of new and existing technologies and
processes for energy efficiency, power factor,
and load management;
(E) identify opportunities for reducing
greenhouse gas emissions; and
(F) promote sustainable manufacturing
practices for small- and medium-sized
manufacturers.
(3) Outreach.--The Secretary shall provide funding
for--
(A) outreach activities by the industrial
research and assessment centers to inform
small- and medium-sized manufacturers of the
information, technologies, and services
available; and
(B) coordination activities by each
industrial research and assessment center to
leverage efforts with--
(i) Federal and State efforts;
(ii) the efforts of utilities and
energy service providers;
(iii) the efforts of regional energy
efficiency organizations; and
(iv) the efforts of other industrial
research and assessment centers.
(4) Workforce training.--
(A) In general.--The Secretary shall pay the
Federal share of associated internship programs
under which students work with or for
industries, manufacturers, and energy service
providers to implement the recommendations of
industrial research and assessment centers.
(B) Federal share.--The Federal share of the
cost of carrying out internship programs
described in subparagraph (A) shall be 50
percent.
(5) Small business loans.--The Administrator of the
Small Business Administration shall, to the maximum
extent practicable, expedite consideration of
applications from eligible small business concerns for
loans under the Small Business Act (15 U.S.C. 631 et
seq.) to implement recommendations of industrial
research and assessment centers established under
paragraph (1).
(6) Advanced manufacturing steering committee.--The
Secretary shall establish an advisory steering
committee to provide recommendations to the Secretary
on planning and implementation of the Advanced
Manufacturing Office of the Department of Energy.
* * * * * * *
SEC. 453. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS.
* * * * * * *
(b) Voluntary National Information Program.--
(1) In general.--Not later than 90 days after the
date of enactment of this Act, the Secretary and the
Administrator of the Environmental Protection Agency
shall, after consulting with information technology
industry and other interested parties, initiate a
voluntary national information program for those types
of data centers and data center equipment and
facilities that are widely used and for which there is
a potential for significant data center energy savings
as a result of the program.
(2) Requirements.--The program described in paragraph
(1) shall--
(A) address data center efficiency
holistically, reflecting the total energy
consumption of data centers as whole systems,
including both equipment and facilities;
(B) consider prior work and studies
undertaken in this area, including by the
Environmental Protection Agency and the
Department of Energy;
(C) consistent with the objectives described
in paragraph (1), determine the type of data
center and data H. R. 6--147 center equipment
and facilities to be covered under the program;
(D) produce specifications, measurements,
best practices, and benchmarks that will enable
data center operators to make more informed
decisions about the energy efficiency and costs
of data centers, and that take into account--
(i) the performance and use of
servers, data storage devices, and
other information technology equipment;
(ii) the efficiency of heating,
ventilation, and air conditioning,
cooling, and power conditioning
systems, provided that no modification
shall be required of a standard then in
effect under the Energy Policy and
Conservation Act (42 U.S.C. 6201 et
seq.) for any covered heating,
ventilation, air-conditioning, cooling
or power-conditioning product;
(iii) energy savings from the
adoption of software and data
management techniques; and
(iv) other factors determined by [the
organization] an organization described
in subsection (c);
(E) allow for creation of separate
specifications, measurements, and benchmarks
based on data center size and function, as well
as other appropriate characteristics;
(F) advance the design and implementation of
efficiency technologies to the maximum extent
economically practical;
(G) provide to data center operators in the
private sector and the Federal Government
information about best practices and purchasing
decisions that reduce the energy consumption of
data centers; and
(H) publish the information described in
subparagraph (G), which may be disseminated
through catalogs, trade publications, the
Internet, or other mechanisms, that will allow
data center operators to assess the energy
consumption and potential cost savings of
alternative data centers and data center
equipment and facilities.
[(3) Procedures.--The program described in paragraph
(1) shall be developed in consultation with and
coordinated by the organization described in subsection
(c) according to commonly accepted procedures for the
development of specifications, measurements, and
benchmarks.]
[(c) Data Center Efficiency Organization.--
[(1) In general.--After the establishment of the
program described in subsection (b), the Secretary and
the Administrator shall jointly designate an
information technology industry organization to consult
with and to coordinate the program.
[(2) Requirements.--The organization designated under
paragraph (1), whether preexisting or formed
specifically for the purposes of subsection (b),
shall--
[(A) consist of interested parties that have
expertise in energy efficiency and in the
development, operation, and functionality of
computer data centers, information technology
equipment, and software, as well as
representatives of hardware manufacturers, data
center operators, and facility managers;
[(B) obtain and address input from Department
of Energy National Laboratories or any college,
university, research institution, industry
association, company, or public interest group
with applicable expertise in any of the areas
listed in paragraph (1);
[(C) follow commonly accepted procedures for
the development of specifications and
accredited standards development processes;
[(D) have a mission to develop and promote
energy efficiency for data centers and
information technology; and
[(E) have the primary responsibility to
consult in the development and publishing of
the information, measurements, and benchmarks
described in subsection (b) and transmission of
the information to the Secretary and the
Administrator for consideration under
subsection (d).
[(d) Measurements and Specifications.--
[(1) In general.--The Secretary and the Administrator
shall consider the specifications, measurements, and
benchmarks described in subsection (b) for use by the
Federal Energy Management Program, the Energy Star
Program, and other efficiency programs of the
Department of Energy and Environmental Protection
Agency, respectively.
[(2) Rejections.--If the Secretary or the
Administrator rejects 1 or more specifications,
measurements, or benchmarks described in subsection
(b), the rejection shall be made consistent with
section 12(d) of the National Technology Transfer and
Advancement Act of 1995 (15 U.S.C. 272 note; Public Law
104-113).
[(3) Determination of impracticability.--A
determination that a specification, measurement, or
benchmark described in subsection (b) is impractical
may include consideration of the maximum efficiency
that is technologically feasible and economically
justified.
[(e) Monitoring.--The Secretary and the Administrator
shall--
[(1) monitor and evaluate the efforts to develop the
program described in subsection (b); and
[(2) not later than 3 years after the date of
enactment of this Act, make a determination as to
whether the program is consistent with the objectives
of subsection (b).
[(f) Alternative System.--If the Secretary and the
Administrator make a determination under subsection (e) that a
voluntary national information program for data centers
consistent with the objectives of subsection (b) has not been
developed, the Secretary and the Administrator shall, after
consultation with the National Institute of Standards and
Technology and not later than 2 years after the determination,
develop and implement the program under subsection (b).
[(g) Protection of Proprietary Information.--The Secretary,
the Administrator, or the data center efficiency organization
shall not disclose any proprietary information or trade secrets
provided by any individual or company for the purposes of
carrying out this section or the program established under this
section.]
(c) Stakeholder Involvement.--
(1) In general.--The Secretary and the Administrator
shall carry out subsection (b) in consultation with the
information technology industry and other key
stakeholders, with the goal of producing results that
accurately reflect the best knowledge in the most
pertinent domains.
(2) Considerations.--In carrying out consultation
described in paragraph (1), the Secretary and the
Administrator shall pay particular attention to
organizations that--
(A) have members with expertise in energy
efficiency and in the development, operation,
and functionality of data centers, information
technology equipment, and software, including
representatives of hardware manufacturers, data
center operators, and facility managers;
(B) obtain and address input from the
National Laboratories (as that term is defined
in section 2 of the Energy Policy Act of 2005
(42 U.S.C. 15801)) or any institution of higher
education, research institution, industry
association, company, or public interest group
with applicable expertise;
(C) follow--
(i) commonly accepted procedures for
the development of specifications; and
(ii) accredited standards development
processes; or
(D) have a mission to promote energy
efficiency for data centers and information
technology.
(d) Measurements and Specifications.--The Secretary and the
Administrator shall consider and assess the adequacy of the
specifications, measurements, and benchmarks described in
subsection (b) for use by the Federal Energy Management
Program, the Energy Star Program, and other efficiency programs
of the Department of Energy or the Environmental Protection
Agency.
(e) Study.--The Secretary, in consultation with the
Administrator, not later than 18 months after the date of
enactment of the Energy Policy Modernization Act of 2015, shall
make available to the public an update to the report submitted
to Congress pursuant to section 1 of the Act of December 20,
2006 (Public Law 109-431; 120 Stat. 2920), entitled `Report to
Congress on Server and Data Center Energy Efficiency' and dated
August 2, 2007, that provides--
(1) a comparison and gap analysis of the estimates
and projections contained in the original report with
new data regarding the period from 2007 through 2014;
(2) an analysis considering the impact of information
technologies, including virtualization and cloud
computing, in the public and private sectors;
(3) an evaluation of the impact of the combination of
cloud platforms, mobile devices, social media, and big
data on data center energy usage;
(4) an evaluation of water usage in data centers and
recommendations for reductions in such water usage; and
(5) updated projections and recommendations for best
practices through fiscal year 2020.
(f) Data Center Energy Practitioner Program.--
(1) In general.--The Secretary, in consultation with
key stakeholders and the Director of the Office of
Management and Budget, shall maintain a data center
energy practitioner program that provides for the
certification of energy practitioners qualified to
evaluate the energy usage and efficiency opportunities
in Federal data centers.
(2) Evaluations.--Each Federal agency shall consider
having the data centers of the agency evaluated once
every 4 years by energy practitioners certified
pursuant to the program, whenever practicable using
certified practitioners employed by the agency.
(g) Open Data Initiative.--
(1) In general.--The Secretary, in consultation with
key stakeholders and the Director of the Office of
Management and Budget, shall establish an open data
initiative for Federal data center energy usage data,
with the purpose of making the data available and
accessible in a manner that encourages further data
center innovation, optimization, and consolidation.
(2) Consideration.--In establishing the initiative
under paragraph (1), the Secretary shall consider using
the online Data Center Maturity Model.
(h) International Specifications and Metrics.--The
Secretary, in consultation with key stakeholders, shall
actively participate in efforts to harmonize global
specifications and metrics for data center energy and water
efficiency.
(i) Data Center Utilization Metric.--The Secretary, in
collaboration with key stakeholders, shall facilitate in the
development of an efficiency metric that measures the energy
efficiency of a data center (including equipment and
facilities).
(j) Protection of Proprietary Information.--The Secretary
and the Administrator shall not disclose any proprietary
information or trade secrets provided by any individual or
company for the purposes of carrying out this section or the
programs and initiatives established under this section.
---------- *
* * * * * *
ENERGY POLICY ACT OF 2005
Public Law 1-58, as amended
* * * * * * *
[SEC. 106. VOLUNTARY COMMITMENTS TO REDUCE INDUSTRIAL ENERGY INTENSITY.
[(a) Definition of Energy Intensity.--In this section, the
term ``energy intensity'' means the primary energy consumed for
each unit of physical output in an industrial process.
[(b) Voluntary Agreements.--The Secretary may enter into
voluntary agreements with one or more persons in industrial
sectors that consume significant quantities of primary energy
for each unit of physical output to reduce the energy intensity
of the production activities of the persons.
[(c) Goal.--Voluntary agreements under this section shall
have as a goal the reduction of energy intensity by not less
than 2.5 percent each year during the period of calendar years
2007 through 2016.
[(d) Recognition.--The Secretary, in cooperation with other
appropriate Federal agencies, shall develop mechanisms to
recognize and publicize the achievements of participants in
voluntary agreements under this section.
[(e) Technical Assistance.--A person that enters into an
agreement under this section and continues to make a good faith
effort to achieve the energy efficiency goals specified in the
agreement shall be eligible to receive from the Secretary a
grant or technical assistance, as appropriate, to assist in the
achievement of those goals.
[(f) Report.--Not later than each of June 30, 2012, and
June 30, 2017, the Secretary shall submit to Congress a report
that--
[(1) evaluates the success of the voluntary
agreements under this section; and
[(2) provides independent verification of a sample of
the energy savings estimates provided by participating
firms.]
* * * * * * *
----------
ENERGY POLICY ACT OF 1992
Public Law 102-486, as amended
* * * * * * *
[SEC. 131. ENERGY EFFICIENCY IN INDUSTRIAL FACILITIES.
[(a) Grant Program.--
[(1) In general.--The Secretary shall make grants to
industry associations to support programs to improve
energy efficiency in industry. In order to be eligible
for a grant under this subsection, an industry
association shall establish a voluntary energy
efficiency improvement target program.
[(2) Awarding of grants.--The Secretary shall request
project proposals and provide annual grants on a
competitive basis. In evaluating grant proposals under
this subsection, the Secretary shall consider--
[(A) potential energy savings;
[(B) potential environmental benefits;
[(C) the degree of cost sharing;
[(D) the degree to which new and innovative
technologies will be encouraged;
[(E) the level of industry involvement;
[(F) estimated project cost-effectiveness;
and
[(G) the degree to which progress toward the
energy improvement targets can be monitored.
[(3) Eligible projects.--Projects eligible for grants
under this subsection may include the following:
[(A) Workshops.
[(B) Training seminars.
[(C) Handbooks.
[(D) Newsletters.
[(E) Data bases.
[(F) Other activities approved by the
Secretary.
[(4) Limitation on cost sharing.--Grants provided
under this subsection shall not exceed $250,000 and
each grant shall not exceed 75 percent of the total
cost of the project for which the grant is made.
[(5) Authorization.--There are authorized to be
appropriated such sums as are necessary to carry out
this subsection.
[(b) Award Program.--The Secretary shall establish an
annual award program to recognize those industry associations
or individual industrial companies that have significantly
improved their energy efficiency.
[(c) Report on Industrial Reporting and Voluntary
Targets.--Not later than one year after the date of the
enactment of this Act, the Secretary shall, in consultation
with affected industries, evaluate and report to the Congress
regarding the establishment of Federally mandated energy
efficiency reporting requirements and voluntary energy
efficiency improvement targets for energy intensive industries.
Such report shall include an evaluation of the costs and
benefits of such reporting requirements and voluntary energy
efficiency improvement targets, and recommendations regarding
the role of such activities in improving energy efficiency in
energy intensive industries.]
[SEC. 132. PROCESS ORIENTED INDUSTRIAL ENERGY EFFICIENCY.
[(a) Definitions.--For the purposes of this section--
[(1) the term ``covered industry'' means the food and
food products industry, lumber and wood products
industry, petroleum and coal products industry, and all
other manufacturing industries specified in Standard
Industrial Classification Codes 20 through 39 (or
successor classification codes);
[(2) the term ``process-oriented industrial
assessment'' means--
[(A) the identification of opportunities in
the production process (from the introduction
of materials to final packaging of the product
for shipping) for--
[(i) improving energy efficiency;
[(ii) reducing environmental impact;
and
[(iii) designing technological
improvements to increase
competitiveness and achieve cost-
effective product quality enhancement;
[(B) the identification of opportunities for
improving the energy efficiency of lighting,
heating, ventilation, air conditioning, and the
associated building envelope; and
[(C) the identification of cost-effective
opportunities for using renewable energy
technology in the production process and in the
systems described in subparagraph (B); and
[(3) the term ``utility'' means any person, State
agency (including any municipality), or Federal agency,
which sells electric or gas energy to retail customers.
[(b) Grant Program.--
[(1) Use of funds.--The Secretary shall, to the
extent funds are made available for such purpose, make
grants to States which, consistent with State law,
shall be used for the following purposes:
[(A) To promote, through appropriate
institutions such as universities, nonprofit
organizations, State and local government
entities, technical centers, utilities, and
trade organizations, the use of energy-
efficient technologies in covered industries.
[(B) To establish programs to train
individuals (on an industry-by-industry basis)
in conducting process-oriented industrial
assessments and to encourage the use of such
trained assessors.
[(C) To assist utilities in developing,
testing, and evaluating energy efficiency
programs and technologies for industrial
customers in covered industries.
[(2) Consultation.--States receiving grants under
this subsection shall consult with utilities and
representatives of affected industries, as appropriate,
in determining the most effective use of such funds
consistent with the requirements of paragraph (1).
[(3) Eligibility criteria.--Not later than 1 year
after the date of the enactment of this Act, the
Secretary shall establish eligibility criteria for
grants made pursuant to this subsection. Such criteria
shall require a State applying for a grant to
demonstrate that such State--
[(A) pursuant to section 111(a) of the Public
Utility and Regulatory Policies Act of 1978 (16
U.S.C. 2621(a)), has considered and made a
determination regarding the implementation of
the standards specified in paragraphs (7) and
(8) of section 111(d) of such Act (with respect
to integrated resources planning and
investments in conservation and demand
management); and
[(B) by legislation or regulation--
[(i) allows utilities to recover the
costs prudently incurred in providing
process-oriented industrial
assessments; and
[(ii) encourages utilities to provide
to covered industries--
[(I) process-oriented
industrial assessments; and
[(II) financial incentives
for implementing energy
efficiency improvements.
[(4) Allocation of funds.--Grants made pursuant to
this subsection shall be allocated each fiscal year
among States meeting the criteria specified in
paragraph (3) who have submitted applications 60 days
before the first day of such fiscal year. Such
allocation shall be made in accordance with a formula
to be prescribed by the Secretary based on each State's
share of value added in industry (as determined by the
Census of Manufacturers) as a percentage of the value
added by all such States.
[(5) Renewal of grants.--A grant under this
subsection may continue to be renewed after 2
consecutive fiscal years during which a State receives
a grant under this subsection, subject to the
availability of funds, if--
[(A) the Secretary determines that the funds
made available to the State during the previous
2 years were used in a manner required under
paragraph (1); and
[(B) such State demonstrates, in a manner
prescribed by the Secretary, utility
participation in programs established pursuant
to this subsection.
[(6) Coordination with other federal programs.--In
carrying out the functions described in paragraph (1),
States shall, to the extent practicable, coordinate
such functions with activities and programs conducted
by the Energy Analysis and Diagnostic Centers of the
Department of Energy and the Manufacturing Technology
Centers of the National Institute of Standards and
Technology.
[(c) Other Federal Assistance.--
[(1) Assessment criteria.--Not later than 2 years
after the date of the enactment of this Act, the
Secretary shall, by contract with nonprofit
organizations with expertise in process-oriented
industrial energy efficiency technologies, establish
and, as appropriate, update criteria for conducting
process-oriented industrial assessments on an industry-
by-industry basis. Such criteria shall be made
available to State and local government, public utility
commissions, utilities, representatives of affected
process-oriented industries, and other interested
parties.
[(2) Directory.--The Secretary shall establish a
nationwide directory of organizations offering
industrial energy efficiency assessments, technologies,
and services consistent with the purposes of this
section. Such directory shall be made available to
State governments, public utility commissions,
utilities, industry representatives, and other
interested parties.
[(3) Award program.--The Secretary shall establish an
annual award program to recognize utilities operating
outstanding or innovative industrial energy efficiency
technology assistance programs.
[(4) Meetings.--In order to further the purposes of
this section, the Secretary shall convene annual
meetings of parties interested in process-oriented
industrial assessments, including representatives of
State government, public utility commissions,
utilities, and affected process-oriented industries.
[(d) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
the purposes of this section.]
[SEC. 133. INDUSTRIAL INSULATION AND AUDIT GUIDELINES.
[(a) Voluntary Guidelines for Energy Efficiency Auditing
and Insulating.--Not later than 18 months after the date of the
enactment of this Act, the Secretary, after consultation with
utilities, major industrial energy consumers, and
representatives of the insulation industry, shall establish
voluntary guidelines for--
[(1) the conduct of energy efficiency audits of
industrial facilities to identify cost-effective
opportunities to increase energy efficiency; and
[(2) the installation of insulation to achieve cost-
effective increases in energy efficiency in industrial
facilities.
[(b) Educational and Technical Assistance.--The Secretary
shall conduct a program of educational and technical assistance
to promote the use of the voluntary guidelines established
under subsection (a).]
* * * * * * *
SEC. 2101. GENERAL IMPROVED ENERGY EFFICIENCY.
(a) Program Direction.--The Secretary shall conduct a 5-
year program, in accordance with sections 3001 and 3002 of this
Act, on cost effective technologies to improve energy
efficiency and increase the use of renewable energy in the
buildings, industrial, and utility sectors. Such program shall
include a broad range of technological approaches, and shall
include field demonstrations of sufficient scale and number to
prove technical and economic viability to meet the goals stated
in section 2001. Such program shall include the activities
required under [sections 2102, 2103, 2104, 2105, 2106, 2107,
and 2108] sections 2102, 2104, 2105, 2106, and 2108 of this Act
and sections 376 of the Energy Policy and Conservation Act and
ongoing activities of a similar nature at the Department of
Energy. Such program shall also include the activities
conducted pursuant to the Steel and Aluminum Energy
Conservation and Technology Competitiveness Act of 1988 (Public
Law 100-680) and the Department of Energy Metal Casting
Competitiveness Research Act of 1990 (Public Law 101-425).
* * * * * * *
[SEC. 2103. PULP AND PAPER.
[(a) Program Direction.--The Secretary shall conduct a 5-
year program, in accordance with sections 3001 and 3002 of this
Act, on advanced pulp and paper technologies. Such program
shall include activities on energy generation technologies,
boilers, combustion processes, pulping processes (excluding de-
inking), chemical recovery, causticizing, source reduction
processes, and other related technologies that can improve the
energy efficiency of, and reduce the adverse environmental
impacts of, pulp and papermaking operations. This section does
not authorize projects involving the combustion of waste paper,
other than gasification.
[(b) Proposals.--Within 180 days after the date of
enactment of this Act, the Secretary shall solicit proposals
for conducting activities under this section.]
* * * * * * *
[SEC. 2107. IMPROVING EFFICIENCY IN ENERGY INTENSIVE INDUSTRIES.
[(a) Secretarial Action.--The Secretary, in accordance with
sections 3001 and 3002 of this Act, shall--
[(1) pursue a research, development, demonstration
and commercial application program intended to improve
energy efficiency and productivity in energy-intensive
industries and industrial processes; and
[(2) undertake joint ventures to encourage the
commercialization of technologies developed under
paragraph (1).
[(b) Joint Ventures.--(1) The Secretary shall--
[(A) conduct a competitive solicitation for proposals
from private firms and investors for such joint
ventures under subsection (a)(2); and
[(B) provide financial assistance to at least five
such joint ventures.
[(2) The purpose of the joint ventures shall be to design,
test, and demonstrate changes to industrial processes that will
result in improved energy efficiency and productivity. The
joint ventures may also demonstrate other improvements of
benefit to such industries so long as demonstration of energy
efficiency improvements is the principal objective of the joint
venture.
[(3) In evaluating proposals for financial assistance and
joint ventures under this section, the Secretary shall
consider--
[(A) whether the activities conducted under this
section improve the quality and energy efficiency of
industries or industrial processes;
[(B) the regional distribution of the energy-
intensive industries and industrial processes; and
[(C) whether the proposed joint venture project would
be located in the region which has the energy-intensive
industry and industrial processes that would benefit
from the project.]
* * * * * * *
----------
ENERGY POLICY AND CONSERVATION ACT
Public Law 94-163, as amended
* * * * * * *
ENERGY STAR PROGRAM
Sec. 324a. (a) In General.-- * * *
* * * * * * *
(e) Third-Party Certification.--
(1) In general.--Subject to paragraph (2), not later
than 180 days after the date of enactment of this
subsection, the Administrator shall revise the
certification requirements for the labeling of
consumer, home, and office electronic products for
program partners that have complied with all
requirements of the Energy Star program for a period of
at least 18 months.
(2) Administration.--In the case of a program partner
described in paragraph (1), the new requirements under
paragraph (1)--
(A) shall not require third-party
certification for a product to be listed; but
(B) may require that test data and other
product information be submitted to facilitate
product listing and performance verification
for a sample of products.
(3) Third parties.--Nothing in this subsection
prevents the Administrator from using third parties in
the course of the administration of the Energy Star
program.
(4) Termination.--
(A) In general.--Subject to subparagraph (B),
an exemption from third-party certification
provided to a program partner under paragraph
(1) shall terminate if the program partner is
found to have violated program requirements
with respect to at least 2 separate models
during a 2-year period.
(B) Resumption.--A termination for a program
partner under subparagraph (A) shall cease if
the program partner complies with all Energy
Star program requirements for a period of at
least 3 years.
* * * * * * *
SEC. 324B. SUPPLY STAR PROGRAM.
(a) In General.--There is established within the Department
of Energy a Supply Star program to identify and promote
practices, recognize companies, and, as appropriate, recognize
products that use highly efficient supply chains in a manner
that conserves energy, water, and other resources.
(b) Coordination.--In carrying out the program described in
subsection (a), the Secretary shall--
(1) consult with other appropriate agencies; and
(2) coordinate efforts with the Energy Star program
established under section 324A.
(c) Duties.--In carrying out the Supply Star program
described in subsection (a), the Secretary shall--
(1) promote practices, recognize companies, and, as
appropriate, recognize products that comply with the
Supply Star program as the preferred practices,
companies, and products in the marketplace for
maximizing supply chain efficiency;
(2) work to enhance industry and public awareness of
the Supply Star program;
(3) collect and disseminate data on supply chain
energy resource consumption;
(4) develop and disseminate metrics, processes, and
analytical tools (including software) for evaluating
supply chain energy resource use;
(5) develop guidance at the sector level for
improving supply chain efficiency;
(6) work with domestic and international
organizations to harmonize approaches to analyzing
supply chain efficiency, including the development of a
consistent set of tools, templates, calculators, and
databases; and
(7) work with industry, including small businesses,
to improve supply chain efficiency through activities
that include--
(A) developing and sharing best practices;
and
(B) providing opportunities to benchmark
supply chain efficiency.
(d) Evaluation.--In any evaluation of supply chain
efficiency carried out by the Secretary with respect to a
specific product, the Secretary shall consider energy
consumption and resource use throughout the entire lifecycle of
a product, including production, transport, packaging, use, and
disposal.
(e) Grants and Incentives.--
(1) In general.--The Secretary may award grants or
other forms of incentives on a competitive basis to
eligible entities, as determined by the Secretary, for
the purposes of--
(A) studying supply chain energy resource
efficiency; and
(B) demonstrating and achieving reductions in
the energy resource consumption of commercial
products through changes and improvements to
the production supply and distribution chain of
the products.
(2) Use of information.--Any information or data
generated as a result of the grants or incentives
described in paragraph (1) shall be used to inform the
development of the Supply Star Program.
(f) Training.--The Secretary shall use funds to support
professional training programs to develop and communicate
methods, practices, and tools for improving supply chain
efficiency.
(g) Effect of Outsourcing of American Jobs.--For purposes
of this section, the outsourcing of American jobs in the
production of a product shall not count as a positive factor in
determining supply chain efficiency.
(h) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $10,000,000 for
the period of fiscal years 2015 through 2024.
* * * * * * *
REQUIREMENTS OF MANUFACTURERS
Sec. 326. (a) In General.-- * * *
* * * * * * *
(b) Notification.--(1) Each manufacturer of a covered
product to which a rule under section 324 applies shall notify
the Secretary or the Commission--
(A) not later than 60 days after the date such rule
takes effect, of the models in current production (and
starting serial numbers of those models) to which such
rule applies; and
(B) prior to commencement of production, of all
models subsequently produced (and starting serial
numbers of those models) to which such rule applies.
(2) If requested by the Secretary or Commission, the
manufacturer of a covered product to which a rule under section
324 applies shall provide, within 30 days of the date of the
request, the data from which the information included on the
label and required by the rule was derived. Data shall be kept
on file by the manufacturer for a period specified in the rule.
(3) When requested--
(A) by the Secretary for purposes of ascertaining
whether a product subject to a standard established in
or prescribed under section 325 is in compliance with
that standard, or
(B) by the Commission for purposes of ascertaining
whether the information set out on a label of a
product, as required under section 324, is accurate,
each manufacturer of such a product shall supply at his
expense a reasonable number of such covered products to
any laboratory designated by the Secretary or the
Commission, as the case may be. Any reasonable charge
levied by the laboratory for such testing shall be
borne by the United States, if and to the extent
provided in appropriation Acts.
(4) Each manufacturer of a covered product to which a rule
under section 324 applies shall annually, at a time specified
by the Commission, supply to the Commission relevant data
respecting energy consumption or water use developed in
accordance with the test procedures applicable to such product
under section 323.
(5) A rule under section 323, 324, or 325 may require the
manufacturer or his agent to permit a representative designated
by the Commission or the Secretary to observe any testing
required by this part and inspect the results of such testing.
(6) Voluntary verification programs for air conditioning,
furnace, boiler, heat pump, and water heater products.--
(A) Reliance on voluntary programs.--For the purpose
of verifying compliance with energy conservation
standards and Energy Star specifications established
under sections 324A, 325, and 342 for covered products
described in paragraphs (3), (4), (5), (9), and (11) of
section 322(a) and covered equipment described in
subparagraphs (B), (C), (D), (F), (I), (J), and (K) of
section 340(1), the Secretary and the Administrator of
the Environmental Protection Agency shall rely on
voluntary verification programs that are recognized by
the Secretary in accordance with subparagraph (B).
(B) Recognition of voluntary verification programs.--
(i) In general.--Not later than 180 days
after the date of enactment of this paragraph,
the Secretary and the Administrator of the
Environmental Protection Agency shall initiate
a negotiated rulemaking in accordance with
subchapter III of chapter 5 of title 5, United
States Code (commonly known as the ``Negotiated
Rulemaking Act of 1990'') to develop criteria
that have consensus support for achieving
recognition by the Secretary as an approved
voluntary verification program.
(ii) Minimum requirements.--The criteria
developed under clause (i) shall, at a minimum,
ensure that the voluntary verification
program--
(I) is nationally recognized;
(II) satisfies any applicable
elements of--
(aa) International
Organization for
Standardization standard
numbered 17025; and
(bb) any other relevant
International Organization for
Standardization standards
identified and agreed to
through the negotiated
rulemaking under clause (i);
(III) at least annually tests
products following the test procedures
established under this title to verify
the certified rating of a
representative sample of products and
equipment within the scope of the
program;
(IV) maintains a publicly available
list of all certified products and
equipment and their certified ratings;
(V) requires the changing of the
performance rating or removal of the
product or equipment from the program
if testing determines that the
performance rating does not meet the
levels the manufacturer has certified
to the Secretary;
(VI) requires the qualification of
new participants in the program through
testing and production of test reports;
(VII) allows for challenge testing of
products and equipment within the scope
of the program;
(VIII) requires program participants
to certify the performance rating of
all covered products and equipment
within the scope of the program for the
covered product or equipment;
(IX) provides to the Secretary--
(aa) an annual report of all
test results, the contents of
which shall be determined
through the negotiated
rulemaking process under clause
(i);
(bb) prompt notification when
program testing results in--
(AA) the rerating of
the performance rating
of a product or
equipment; or
(BB) the delisting of
a product or equipment;
and
(cc) test reports, on the
request of the Secretary or the
Administrator of the
Environmental Protection
Agency, that note any
instructions specified by the
manufacturer or the
representative of the
manufacturer for the purpose of
conducting the verification
testing, to be exempted from
disclosure under section
552(b)(4) of title 5, United
States Code (commonly known as
the ``Freedom of Information
Act''); and
(X) satisfies any additional
requirements or standards that the
Secretary and Administrator of the
Environmental Protection Agency shall
establish consistent with this
subparagraph.
(iii) Revision of criteria.--
(I) In general.--The Secretary and
the Administrator of the Environmental
Protection Agency may revise the
criteria established under clause (ii)
by initiating--
(aa) a notice of proposed
rulemaking in accordance with
section 553(b) of title 5,
United States Code, on
publication of a determination
in the Federal Register that
revisions to the criteria are
necessary; or
(bb) a direct final rule in
accordance with section
553(b)(3)(B) of title 5, United
States Code, on publication of
a determination in the Federal
Register that revisions to the
criteria are necessary and that
substantive opposition to the
proposed revisions is not
expected.
(II) Effect of direct final rule.--
(aa) Full force and effect.--
If the Secretary does not
receive adversarial comments
during the 30-day period
following publication of the
determination in the Federal
Register under subclause
(I)(bb), the direct final rule
shall have full force and
effect.
(bb) Withdrawal.--If the
Secretary receives adversarial
comments during the 30-day
period following publication of
the determination in the
Federal Register under
subclause (I)(bb), the
Secretary shall withdraw the
direct final rule and publish a
notice of proposed rulemaking
in accordance with subclause
(I)(aa).
(C) Administration.--
(i) In general.--The Secretary and the
Administrator of the Environmental Protection
Agency shall not require--
(I) manufacturers to participate in a
voluntary verification program
described in subparagraph (A); or
(II) participating manufacturers to
provide information that can be
obtained through a voluntary
verification program described in
subparagraph (A).
(ii) List of covered products.--The Secretary
or the Administrator of the Environmental
Protection Agency may maintain a publicly
available list of covered products and
equipment certified under this section that
distinguishes between--
(I) covered products and equipment
certified by a voluntary verification
program described in subparagraph (A);
and
(II) products not certified by a
voluntary verification program
described in subparagraph (A).
(iii) Periodic verification testing.--The
Secretary--
(I) shall not subject products or
equipment that are certified under a
voluntary verification program
described in subparagraph (A) to
periodic verification testing that
verifies the accuracy of the certified
performance rating of the products or
equipment; but
(II) may test products or equipment
described in subclause (I) if the
testing is necessary--
(aa) to assess the overall
performance of a voluntary
verification program;
(bb) to address specific
performance issues;
(cc) to determine other
performance characteristics for
use in updating test procedures
and standards; or
(dd) for other purposes
consistent with this title.
(D) Effect on other authority.--Nothing in this
paragraph limits the authority of the Secretary or the
Administrator of the Environmental Protection Agency to
enforce compliance with any law.
* * * * * * *
SEC. 376. SUSTAINABLE MANUFACTURING INITIATIVE.
(a) In General.--As part of the Office of Energy Efficiency
and Renewable Energy, the Secretary, on the request of a
manufacturer, shall conduct on-site technical assessments to
identify opportunities for--
(1) maximizing the energy efficiency of industrial
processes and cross-cutting systems;
(2) preventing pollution and minimizing waste;
(3) improving efficient use of water in manufacturing
processes;
(4) conserving natural resources; and
(5) achieving such other goals as the Secretary
determines to be appropriate.
(b) Coordination.--The Secretary shall carry out the
initiative in coordination with the private sector and
appropriate agencies, including the National Institute of
Standards and Technology, to accelerate adoption of new and
existing technologies and processes that improve energy
efficiency.
(c) Research and Development Program for Sustainable
Manufacturing and Industrial Technologies and Processes.--As
part of the industrial efficiency programs of the Department of
Energy, the Secretary shall carry out a joint industry-
government partnership program to research, develop, and
demonstrate new sustainable manufacturing and industrial
technologies and processes that maximize the energy efficiency
of industrial plants, reduce pollution, and conserve natural
resources.
* * * * * * *
----------
NATIONAL ENERGY CONSERVATION POLICY ACT
Public Law 95-619, as amended
* * * * * * *
[SEC. 543. ENERGY MANAGEMENT REQUIREMENTS.
[(a) Energy Performance Requirement for Federal
Buildings.--(1) Subject to paragraph (2), each agency shall
apply energy conservation measures to, and shall improve the
design for the construction of, the Federal buildings of the
agency (including each industrial or laboratory facility) so
that the energy consumption per gross square foot of the
Federal buildings of the agency in fiscal years 2006 through
2015 is reduced, as compared with the energy consumption per
gross square foot of the Federal buildings of the agency in
fiscal year 2003, by the percentage specified in the following
table:
------------------------------------------------------------------------
[Fiscal Year Percentage Reduction
------------------------------------------------------------------------
[2006 2
[2007 4
[2008 9
[2009 12
[2010 15
[2011 18
[2012 21
[2013 24
[2014 27
[2015 30
------------------------------------------------------------------------
[(2) An agency may exclude from the requirements of
paragraph (1) any building, and the associated energy
consumption and gross square footage, in which energy intensive
activities are carried out. Each agency shall identify and list
in each report made under section 548(a) the buildings
designated by it for such exclusion.
[(3) Not later than December 31, 2014, the Secretary shall
review the results of the implementation of the energy
performance requirement established under paragraph (1) and
submit to Congress recommendations concerning energy
performance requirements for fiscal years 2016 through 2025.]
(a) Energy Performance Requirement for Federal Buildings.--
(1) Requirement.--Subject to paragraph (2), each
agency shall apply energy conservation measures to, and
shall improve the design for the construction of, the
Federal buildings of the agency (including each
industrial or laboratory facility) so that the energy
consumption per gross square foot of the Federal
buildings of the agency in fiscal years 2006 through
2017 is reduced, as compared with the energy
consumption per gross square foot of the Federal
buildings of the agency in fiscal year 2003, by the
percentage specified in the following table:
------------------------------------------------------------------------
Fiscal Year Percentage Reduction
------------------------------------------------------------------------
2006 2
2007 4
2008 9
2009 12
2010 15
2011 18
2012 21
2013 24
2014 27
2015 30
2016 33
2017 36
------------------------------------------------------------------------
(2) Exclusion for buildings with energy intensive
activities.--
(A) In general.--An agency may exclude from
the requirements of paragraph (1) any building
(including the associated energy consumption
and gross square footage) in which energy
intensive activities are carried out.
(B) Reports.--Each agency shall identify and
list in each report made under section 548(a)
the buildings designated by the agency for
exclusion under subparagraph (A).
(3) Review.--Not later than December 31, 2017, the
Secretary shall--
(A) review the results of the implementation
of the energy performance requirements
established under paragraph (1); and
(B) based on the review conducted under
subparagraph (A), submit to Congress a report
that addresses the feasibility of requiring
each agency to apply energy conservation
measures to, and improve the design for the
construction of, the Federal buildings of the
agency (including each industrial or laboratory
facility) so that the energy consumption per
gross square foot of the Federal buildings of
the agency in each of fiscal years 2018 through
2030 is reduced, as compared with the energy
consumption per gross square foot of the
Federal buildings of the agency in the prior
fiscal year, by 3 percent.
* * * * * * *
(f) Use of Energy and Water Efficiency Measures in Federal
Buildings.--
* * * * * * *
(E) Ongoing commissioning.--The term
``ongoing commissioning'' means an ongoing
process of commissioning using monitored data,
the primary goal of which is to ensure
continuous optimum performance of a facility,
in accordance with design or operating needs,
over the useful life of the facility, while
meeting facility occupancy requirements.
[(E)](F) Payback period.--
(i) In general.--Subject to clause
(ii), the term ``payback period'', with
respect to a measure, means a value
equal to the quotient obtained by
dividing--
(I) the estimated initial
implementation cost of the
measure (other than financing
costs); by
(II) the annual cost savings
resulting from the measure,
including--
(aa) net savings in
estimated energy and
water costs; and
(bb) operations,
maintenance, repair,
replacement, and other
direct costs.
(ii) Modifications and exceptions.--
The Secretary, in guidelines issued
pursuant to paragraph (6), may make
such modifications and provide such
exceptions to the calculation of the
payback period of a measure as the
Secretary determines to be appropriate
to achieve the purposes of this Act.
[(F)](G) Recommissioning.--The term
``recommissioning'' means a process--
(i) of commissioning a facility or
system beyond the project development
and warranty phases of the facility or
system; and
(ii) the primary goal of which is to
ensure optimum performance of a
facility, in accordance with design or
current operating needs, over the
useful life of the facility, while
meeting building occupancy
requirements.
[(G)](H) Retrocommissioning.--The term
``retrocommissioning'' means a process of
commissioning a facility or system that was not
commissioned at the time of construction of the
facility or system.
(2) Facility energy managers.--
(A) In general.--Each Federal agency shall
designate an energy manager responsible for
implementing this subsection and reducing
energy use at each 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, at a minimum, Federal facilities,
including central utility plants and
distribution systems and other energy intensive
operations, that constitute at least 75 percent
of facility energy use at each agency.
(C) Energy management system.--An energy
manager designated under subparagraph (A) shall
consider use of a system to manage energy use
at the facility and certification of the
facility in accordance with the International
Organization for Standardization standard
numbered 50001 and entitled ``Energy Management
Systems''.
[(3) Energy and water evaluations.--
[(A) Evaluations.--Effective beginning on the
date that is 180 days after the date of
enactment of this subsection and annually
thereafter, energy managers shall complete, for
each calendar year, a comprehensive energy and
water evaluation for approximately 25 percent
of the facilities of each agency that meet the
criteria under paragraph (2)(B) in a manner
that ensures that an evaluation of each such
facility is completed at least once every 4
years.
[(B) Recommissioning and
retrocommissioning.--As part of the evaluation
under subparagraph (A), the energy manager
shall identify and assess recommissioning
measures (or, if the facility has never been
commissioned, retrocommissioning measures) for
each such facility.]
[(4) Implementation of identified energy and water
efficiency measures.--Not later than 2 years after the
completion of each evaluation under paragraph (3), each
energy manager may--
[(A) implement any energy- or water-saving
measure that the Federal agency identified in
the evaluation conducted under paragraph (3)
that is life cycle cost-effective; and
[(B) bundle individual measures of varying
paybacks together into combined projects.]
(3) Energy and water evaluations and commissioning.--
(A) Evaluations.--Except as provided in
subparagraph (B), effective beginning on the
date that is 180 days after the date of
enactment of the Energy Savings and Industrial
Competitiveness Act of 2015, and annually
thereafter, each energy manager shall complete,
for each calendar year, a comprehensive energy
and water evaluation and recommissioning or
retrocommissioning for approximately 25 percent
of the facilities of each agency that meet the
criteria under paragraph (2)(B) in a manner
that ensures that an evaluation of each
facility is completed at least once every 4
years.
(B) Exceptions.--An evaluation and
recommissioning shall not be required under
subparagraph (A) with respect to a facility
that--
(i) has had a comprehensive energy
and water evaluation during the 8-year
period preceding the date of the
evaluation;
(ii)(I) has been commissioned,
recommissioned, or retrocommissioned
during the 10-year period preceding the
date of the evaluation; or
(II) is under ongoing commissioning;
(iii) has not had a major change in
function or use since the previous
evaluation and commissioning;
(iv) has been benchmarked with public
disclosure under paragraph (8) within
the year preceding the evaluation; and
(v)(I) based on the benchmarking, has
achieved at a facility level the most
recent cumulative energy savings target
under subsection (a) compared to the
earlier of--
(aa) the date of the most
recent evaluation; or
(bb) the date--
(AA) of the most
recent commissioning,
recommissioning, or
retrocommissioning; or
(BB) on which ongoing
commissioning began; or
(II) has a long-term contract in
place guaranteeing energy savings at
least as great as the energy savings
target under subclause (I).
(4) Implementation of identified energy and water
efficiency measures.--
(A) In general.--Not later than 2 years after
the date of completion of each evaluation under
paragraph (3), each energy manager may--
(i) implement any energy- or water-
saving measure that the Federal agency
identified in the evaluation conducted
under paragraph (3) that is life-cycle
cost effective; and
(ii) bundle individual measures of
varying paybacks together into combined
projects.
(B) Measures not implemented.--The energy
manager shall, as part of the certification
system under paragraph (7), explain the reasons
why any life-cycle cost effective measures were
not implemented under subparagraph (A) using
guidelines developed by the Secretary.
* * * * * * *
(7) Web-based certification.--
(A) In general.--For each facility that meets
the criteria established by the Secretary under
paragraph (2)(B), the energy manager shall use
the web-based tracking system under
subparagraph (B)--
(i) to certify compliance with the
requirements for--
(I) energy and water
evaluations under paragraph
(3);
(II) implementation of
identified energy and water
measures under paragraph (4);
and
(III) follow-up on
implemented measures under
paragraph (5); and
(ii) to publish energy and water
consumption data on an individual
facility basis.
(B) Deployment.--
(i) In general.--Not later than 1
year after the date of enactment of
this subsection, the Secretary shall
develop and deploy a web-based tracking
system required under this paragraph in
a manner that tracks, at a minimum--
(I) the covered 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
facility;
(IV) the measured savings and
persistence of savings for
implemented measures; and
(V) the benchmarking
information disclosed under
paragraph (8)(C).
(ii) Ease of compliance.--The
Secretary shall ensure that energy
manager compliance with the
requirements in this paragraph, to the
maximum extent practicable--
(I) can be accomplished with
the use of streamlined
procedures and templates that
minimize the time demands on
Federal employees; and
(II) is coordinated with
other applicable energy
reporting requirements.
(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
facilities from disclosure under clause
(i) for national security purposes.
(iii) Summary report.--The Secretary
shall make available a report that
summarizes the information tracked
under subparagraph (B)(i) by each
agency and, as applicable, by each type
of measure.
* * * * * * *
(g) Large Capital Energy Investments.--
(1) In general.--Each Federal agency shall ensure
that any large capital energy investment in an existing
building that is not a major renovation but involves
replacement of installed equipment (such as heating and
cooling systems), or involves renovation,
rehabilitation, expansion, or remodeling of existing
space, employs the most energy efficient designs,
systems, equipment, and controls that are life-cycle
cost effective.
(2) Process for review of investment decisions.--Not
later than 180 days after the date of enactment of this
subsection, each Federal agency shall--
(A) develop a process for reviewing each
decision made on a large capital energy
investment described in paragraph (1) to ensure
that the requirements of this subsection are
met; and
(B) report to the Director of the Office of
Management and Budget on the process
established.
(3) Compliance report.--Not later than 1 year after
the date of enactment of this subsection, the Director
of the Office of Management and Budget shall evaluate
and report to Congress on the compliance of each agency
with this subsection.
(h) Federal Implementation Strategy for Energy Efficient
and Energy-Saving Information Technologies.--
(1) Definitions.--In this subsection:
(A) Director.--The term ``Director'' means
the Director of the Office of Management and
Budget.
(B) Information technology.--The term
``information technology'' has the meaning
given the term in section 11101 of title 40,
United States Code.
(2) Development of implementation strategy.--Not
later than 1 year after the date of enactment of this
subsection, each Federal agency shall collaborate with
the Director to develop an implementation strategy
(including best-practices and measurement and
verification techniques) for the maintenance, purchase,
and use by the Federal agency of energy-efficient and
energy-saving information technologies.
(3) Administration.--In developing an implementation
strategy, each Federal agency shall consider--
(A) advanced metering infrastructure;
(B) energy efficient data center strategies
and methods of increasing asset and
infrastructure utilization;
(C) advanced power management tools;
(D) building information modeling, including
building energy management; and
(E) secure telework and travel substitution
tools.
(4) Performance goals.--
(A) In general.--Not later than September 30,
2015, the Director, in consultation with the
Secretary, shall establish performance goals
for evaluating the efforts of Federal agencies
in improving the maintenance, purchase, and use
of energy-efficient and energy-saving
information technology systems.
(B) Best practices.--The Chief Information
Officers Council established under section 3603
of title 44, United States Code, shall
supplement the performance goals established
under this paragraph with recommendations on
best practices for the attainment of the
performance goals, to include a requirement for
agencies to consider the use of--
(i) energy savings performance
contracting; and
(ii) utility energy services
contracting.
(5) Reports.--
(A) Agency reports.--Each Federal agency
subject to the requirements of this subsection
shall include in the report of the agency under
section 527 of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17143) a
description of the efforts and results of the
agency under this subsection.
(B) OMB government efficiency reports and
scorecards.--Effective beginning not later than
October 1, 2015, the Director shall include in
the annual report and scorecard of the Director
required under section 528 of the Energy
Independence and Security Act of 2007 (42
U.S.C. 17144) a description of the efforts and
results of Federal agencies under this
subsection.
(C) Use of existing reporting structures.--
The Director may require Federal agencies to
submit any information required to be submitted
under this subsection though reporting
structures in use as of the date of enactment
of the Energy Savings and Industrial
Competitiveness Act of 2015.
* * * * * * *
----------
FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT OF 1989
Public Law 101-73, as amended
* * * * * * *
SEC. 1110. FUNCTIONS OF THE FEDERAL FINANCIAL INSTITUTIONS REGULATORY
AGENCIES RELATING TO APPRAISAL STANDARDS.
Each Federal financial institutions regulatory agency and
the Resolution Trust Corporation shall prescribe appropriate
standards for the performance of real estate appraisals in
connection with federally related transactions under the
jurisdiction of each such agency or instrumentality. These
rules shall require, at a minimum--
(1) that real estate appraisals be performed in
accordance with generally accepted appraisal standards
as evidenced by the appraisal standards promulgated by
the Appraisal Standards Board of the Appraisal
Foundation;
(2) that such appraisals shall be written
appraisals[; and];
(3) that such appraisals shall be subject to
appropriate review for compliance with the Uniform
Standards of Professional Appraisal Practice[.]; and
(4) that State certified and licensed appraisers have
timely access, whenever practicable, to information
from the property owner and the lender that may be
relevant in developing an opinion of value regarding
the energy- and water-saving improvements or features
of a property, such as--
(A) labels or ratings of buildings;
(B) installed appliances, measures, systems
or technologies;
(C) blueprints;
(D) construction costs;
(E) financial or other incentives regarding
energy- and water-efficient components and
systems installed in a property;
(F) utility bills;
(G) energy consumption and benchmarking data;
and
(H) third-party verifications or
representations of energy and water efficiency
performance of a property, observing all
financial privacy requirements adhered to by
certified and licensed appraisers, including
section 501 of the Gramm-Leach-Bliley Act (15
U.S.C. 6801).
Unless a property owner consents to a lender, an
appraiser, in carrying out the requirements of
paragraph (4), shall not have access to the commercial
or financial information of the owner that is
privileged or confidential.
Each such agency or instrumentality may require
compliance with additional standards if it makes a
determination in writing that such additional standards
are required in order to properly carry out its
statutory responsibilities.
* * * * * * *
SEC. 1113. TRANSACTIONS REQUIRING THE SERVICES OF A STATE CERTIFIED
APPRAISER.
In determining whether an appraisal in connection with a
federally related transaction shall be performed by a State
certified appraiser, an agency or instrumentality under this
title shall consider whether transactions, either individually
or collectively, are of sufficient financial or public policy
importance to the United States that an individual who performs
an appraisal in connection with such transactions should be a
State certified appraiser, except that--
(1) a State certified appraiser shall be required for
all federally related transactions having a value of
$1,000,000 or more, or any real property on which the
appraiser makes adjustments using an energy efficiency
report; and
(2) 1-to-4 unit, single family residential appraisals
may be performed by State licensed appraisers unless
the size and complexity requires a State certified
appraiser, where a complex 1-to-4 unit single family
residential appraisal means an appraisal for which the
property to be appraised, the form of ownership, the
property characteristics, or the market conditions are
atypical, or an appraisal on which the appraiser makes
adjustments using an energy efficiency report.
* * * * * * *
----------
UNITED STATES CODE
* * * * * * *
TITLE 40--PUBLIC BUILDINGS, PROPERTY, AND WORKS
* * * * * * *
Sec. 3307. Congressional approval of proposed projects
* * * * * * *
(d) Availability of Funds for Design Updates.--
(1) In general.--Subject to paragraph (2), for any
project for which congressional approval is received
under subsection (a) and for which the design has been
substantially completed but construction has not begun,
the Administrator of General Services may use
appropriated funds to update the project design to meet
applicable Federal building energy efficiency standards
established under section 305 of the Energy
Conservation and Production Act (42 U.S.C. 6834) and
other requirements established under section 3312.
(2) Limitation.--The use of funds under paragraph (1)
shall not exceed 125 percent of the estimated energy or
other cost savings associated with the updates as
determined by a life cycle cost analysis under section
544 of the National Energy Conservation Policy Act (42
U.S.C. 8254).
[(d)](e) Rescission of Approval.--If an appropriation is
not made within one year after the date a project for
construction, alteration, or acquisition is approved under
subsection (a), the Committee on Environment and Public Works
of the Senate or the Committee on Transportation and
Infrastructure of the House of Representatives by resolution
may rescind its approval before an appropriation is made.
[(e)](f) Emergency Leases by the Administrator.--This
section does not prevent the Administrator from entering into
emergency leases during any period declared by the President to
require emergency leasing authority. An emergency lease may not
be for more than 180 days without approval of a prospectus for
the lease in accordance with subsection (a).
[(f)](g) Minimum Performance Requirements for Leased
Space.--With respect to space to be leased, the Administrator
shall include, to the maximum extent practicable, minimum
performance requirements requiring energy efficiency and the
use of renewable energy.
[(g)](h) Limitation on Leasing Certain Space.--
(1) In general.--The Administrator may not lease
space to accommodate any of the following if the
average rental cost of leasing the space will exceed
$1,500,000:
(A) Computer and telecommunications
operations.
(B) Secure or sensitive activities related to
the national defense or security, except when
it would be inappropriate to locate those
activities in a public building or other
facility identified with the Government.
(C) A permanent courtroom, judicial chamber,
or administrative office for any United States
court.
(2) Exception.--The Administrator may lease space
with respect to which paragraph (1) applies if the
Administrator--
(A) decides, for reasons set forth in
writing, that leasing the space is necessary to
meet requirements which cannot be met in public
buildings; and
(B) submits the reasons to the Committee on
Environment and Public Works of the Senate and
the Committee on Transportation and
Infrastructure of the House of Representatives.
[(h)](i) Dollar Amount Adjustment.--The Administrator
annually may adjust any dollar amount referred to in this
section to reflect a percentage increase or decrease in
construction costs during the prior calendar year, as
determined by the composite index of construction costs of the
Department of Commerce. Any adjustment shall be expeditiously
reported to the Committee on Environment and Public Works of
the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives.
* * * * * * *
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