Energy Savings and Industrial Competitiveness Act of 2015
This bill revises a variety of programs to encourage energy efficiency in buildings, industry, the federal government, and certain appliances.
TITLE I--BUILDINGS
Subtitle A--Building Energy Codes
(Sec. 101) This bill amends the Energy Conservation and Production Act (ECPA) to require states and Indian tribes to measure and certify their compliance with certain residential and commercial building energy codes by a specified deadline.
The Department of Energy (DOE) must: (1) provide technical and financial support to states and Indian tribes for developing stretch codes and advanced standards for achieving even greater energy efficiency in buildings, (2) update model building energy codes to achieve energy savings targets, and (3) submit annual reports on compliance with those codes and any improvements in energy savings resulting from those targets.
DOE must study the feasibility, impact, economics, and merit of: (1) codes requiring buildings to become zero-net-energy; (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.
DOE must: (1) support the updating of model building energy codes, and (2) provide technical assistance to organizations that set model building energy codes and standards.
Subtitle B--Worker Training and Capacity Building
(Sec. 111) DOE must provide grants to establish building training and assessment centers at institutions of higher learning to:
(Sec. 112) DOE must make grants to pay the federal share (i.e., 50%) of career skills training programs that help students obtain a certification to install energy efficient buildings technologies.
Subtitle C--School Buildings
(Sec. 121) DOE, acting through the Office of Energy Efficiency and Renewable Energy, must act as the lead federal agency for coordinating and disseminating information on existing federal programs and assistance 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
(Sec. 202) The bill amends the Energy Independence and Security Act of 2007 (EISA) by renaming the energy-intensive industries program as the future of industry program. For purposes of the program, the bill defines "energy service provider" to mean 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.
Industrial research and assessment centers must: (1) coordinate with Manufacturing Extension Partnership Centers of the National Institute of Standards and Technology and DOE's Building Technologies Program, (2) increase partnerships with DOE's national laboratories and with energy service providers and technology providers, (3) identify opportunities for reducing greenhouse gas emissions, and (4) promote sustainable manufacturing practices for small- and medium-sized manufacturers.
DOE must: (1) provide funding for certain outreach and coordination activities of industrial research and assessment centers; and (2) pay the federal share of associated internship programs under which students work with or for industries, manufacturers, and energy service providers to implement the centers' recommendations.
DOE must establish an advisory steering committee to provide recommendations on planning and implementing DOE's Advanced Manufacturing Office.
(Sec. 203) The bill amends the Energy Policy and Conservation Act by directing DOE to: (1) conduct on-site technical assessments at the request of a manufacturer to identify opportunities for improving sustainability; and (2) carry out an industry-government partnership program to research, develop, and demonstrate new sustainable manufacturing and industrial technologies and processes.
Subtitle B--Supply Star
(Sec. 211) A Supply Star program is established within DOE to identify and promote practices, recognize companies, and recognize products that use highly efficient supply chains that conserve energy, water, and other resources. DOE may award grants or other incentives for studying supply chain energy resource efficiency and demonstrating and achieving reductions in the energy resource consumption of commercial products.
Subtitle C--Extended Product System Rebate Program
(Sec. 221) DOE must establish a rebate program for expenditures for purchasing and installing a new constant speed electric motor control that reduces energy use by at least 5%.
Subtitle D--Transformer Rebate Program
(Sec. 231) DOE must also establish a rebate program for expenditures made by qualified industrial or manufacturing facilities, commercial buildings, and multifamily residential buildings for the purchase and installation of certain energy efficient transformers. This program terminates on December 31, 2017.
TITLE III--FEDERAL AGENCY ENERGY EFFICIENCY
(Sec. 301) The bill amends the National Energy Conservation Policy Act to require each federal agency to collaborate with the Office of the Management and Budget (OMB) to develop an implementation strategy for the maintenance, purchase, and use of energy-efficient and energy-saving information technologies.
OMB must establish performance goals for evaluating the efforts of agencies in improving such information technology systems.
(Sec. 302) The General Services Administration (GSA) may use appropriated funds to update the design of a federal building in order to meet energy efficiency and other standards, if the building project has congressional approval, the design is substantially completed, and construction on the building has not begun.
(Sec. 303) The bill amends the EISA to revise requirements for the voluntary national information program. DOE must: (1) maintain a data center energy practitioner program for certifying energy practitioners qualified to evaluate the energy usage and efficiency opportunities in federal data centers, (2) establish an open data initiative for federal data center energy usage data, (3) participate in efforts to harmonize global specifications and metrics for data center energy efficiency, and (4) facilitate in the development of an efficiency metric that measures the energy efficiency of a data center.
(Sec. 304) The Department of Housing and Urban Development (HUD) must establish a program that demonstrates the use of budget-neutral, performance-based agreements for energy or water conservation improvements at multifamily residential units. This program terminates on September 30, 2018.
TITLE IV--REGULATORY PROVISIONS
Subtitle A--Third-Party Certification Under Energy Star Program
(Sec. 401) The bill amends the EPCA to require the Environmental Protection Agency (EPA) to 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. Those requirements may not require third-party certification for a product to be listed.
Subtitle B--Federal Green Buildings
(Sec. 411) The bill amends the EISA by directing the GSA's Office of Federal High-Performance Green Buildings to identify and provide to DOE a list of private sector green building certification systems that are most likely to encourage a comprehensive and environmentally sound approach to certification of green buildings.
Subtitle C--Energy Performance Requirement for Federal Buildings
(Sec. 421) The bill amends the National Energy Conservation Policy Act to extend energy efficiency performance targets for federal buildings through FY2017 (from a 33% reduction from 2003 energy consumption level for FY2016 to a 36% reduction for FY2017). Federal buildings where energy intensive activities are carried out may be excluded from those targets. The bill establishes requirements for excluded buildings.
(Sec. 422) The bill amends the ECPA to expand the scope of existing energy standards for new federal buildings to cover buildings altered by federal agencies and major renovations.
DOE must establish federal building energy efficiency performance standards that require federal buildings to meet or exceed applicable state and local building energy codes if the state or local codes are more stringent than the ASHRAE Standard 90.1 or the International Energy Conservation Code.
(Sec. 423) HUD must develop and issue underwriting and appraisal guidelines that account for the energy cost savings of a loan applicant that has a qualified home energy efficiency report.
HUD must reconvene an advisory group to provide advice on the implementation of the enhanced energy efficiency underwriting criteria.
Subtitle D--Voluntary Verification Programs for Air Conditioning, Furnace, Boiler, Heat Pump, and Water Heater Products
(Sec. 431) The bill amends the EPCA by requiring DOE and the EPA to rely on voluntary certification programs for air conditioning, furnace, boiler, heat pump, and water heater products.
TITLE V--MISCELLANEOUS
(Sec. 501) For purposes of complying with the Statutory Pay-As-You-Go Act of 2010, the budgetary effects of this bill shall be determined by reference to the latest statement titled "Budgetary Effects of PAYGO Legislation."
(Sec. 502) The authorization of amounts under this bill and its amendments shall be effective for any fiscal year only to the extent and in the amount provided in advance in appropriations Act.
[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 720 Introduced in Senate (IS)]
114th CONGRESS
1st Session
S. 720
To promote energy savings in residential buildings and industry, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 11, 2015
Mr. Portman (for himself, Mrs. Shaheen, Ms. Ayotte, Mr. Bennet, Ms.
Cantwell, Ms. Collins, Mr. Coons, Mr. Franken, Mr. Hoeven, Mr. Manchin,
Ms. Murkowski, Mr. Warner, and Mr. Wicker) introduced the following
bill; which was read twice and referred to the Committee on Energy and
Natural Resources
_______________________________________________________________________
A BILL
To promote energy savings in residential buildings and industry, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy Savings and
Industrial Competitiveness Act of 2015''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
TITLE I--BUILDINGS
Subtitle A--Building Energy Codes
Sec. 101. Greater energy efficiency in building codes.
Subtitle B--Worker Training and Capacity Building
Sec. 111. Building training and assessment centers.
Sec. 112. Career skills training.
Subtitle C--School Buildings
Sec. 121. Coordination of energy retrofitting assistance for schools.
Subtitle D--Better Buildings
Sec. 131. Energy efficiency in Federal and other buildings.
Sec. 132. Separate spaces with high-performance energy efficiency
measures.
Sec. 133. Tenant star program.
Subtitle E--Energy Information for Commercial Buildings
Sec. 141. Energy information for commercial buildings.
TITLE II--INDUSTRIAL EFFICIENCY AND COMPETITIVENESS
Subtitle A--Manufacturing Energy Efficiency
Sec. 201. Purposes.
Sec. 202. Future of Industry program.
Sec. 203. Sustainable manufacturing initiative.
Sec. 204. Conforming amendments.
Subtitle B--Supply Star
Sec. 211. Supply Star.
Subtitle C--Extended Product System Rebate Program
Sec. 221. Extended product system rebate program.
Subtitle D--Transformer Rebate Program
Sec. 231. Energy efficient transformer rebate program.
TITLE III--FEDERAL AGENCY ENERGY EFFICIENCY
Sec. 301. Energy-efficient and energy-saving information technologies.
Sec. 302. Availability of funds for design updates.
Sec. 303. Energy efficient data centers.
Sec. 304. Budget-neutral demonstration program for energy and water
conservation improvements at multifamily
residential units.
TITLE IV--REGULATORY PROVISIONS
Subtitle A--Third-Party Certification Under Energy Star Program
Sec. 401. Third-party certification under Energy Star program.
Subtitle B--Federal Green Buildings
Sec. 411. High-performance green Federal buildings.
Subtitle C--Water Heaters
Sec. 421. Grid-enabled water heaters.
Subtitle D--Energy Performance Requirement for Federal Buildings
Sec. 431. Energy performance requirement for Federal buildings.
Sec. 432. Federal building energy efficiency performance standards;
certification system and level for green
buildings.
Sec. 433. Enhanced energy efficiency underwriting.
Subtitle E--Voluntary Verification Programs for Air Conditioning,
Furnace, Boiler, Heat Pump, and Water Heater Products
Sec. 441. Voluntary verification programs for air conditioning,
furnace, boiler, heat pump, and water
heater products.
TITLE V--MISCELLANEOUS
Sec. 501. Budgetary effects.
Sec. 502. Advance appropriations required.
SEC. 2. DEFINITION OF SECRETARY.
In this Act, the term ``Secretary'' means the Secretary of Energy.
TITLE I--BUILDINGS
Subtitle A--Building Energy Codes
SEC. 101. GREATER ENERGY EFFICIENCY IN BUILDING CODES.
(a) Definitions.--Section 303 of the Energy Conservation and
Production Act (42 U.S.C. 6832) is amended--
(1) by striking paragraph (14) and inserting the following:
``(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.''; and
(2) by adding at the end the following:
``(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).''.
(b) State Building Energy Efficiency Codes.--Section 304 of the
Energy Conservation and Production Act (42 U.S.C. 6833) is amended to
read as follows:
``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.''.
(c) Federal Building Energy Efficiency Standards.--Section 305 of
the Energy Conservation and Production Act (42 U.S.C. 6834) is amended
by striking ``voluntary building energy code'' each place it appears in
subsections (a)(2)(B) and (b) and inserting ``model building energy
code''.
(d) Model Building Energy Codes.--Section 307 of the Energy
Conservation and Production Act (42 U.S.C. 6836) is amended to read as
follows:
``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.''.
Subtitle B--Worker Training and Capacity Building
SEC. 111. BUILDING TRAINING AND ASSESSMENT CENTERS.
(a) In General.--The Secretary shall provide grants to institutions
of higher education (as defined in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001)) and Tribal Colleges or Universities (as
defined in section 316(b) of that Act (20 U.S.C. 1059c(b))) to
establish building training and assessment centers--
(1) to identify opportunities for optimizing energy
efficiency and environmental performance in buildings;
(2) to promote the application of emerging concepts and
technologies in commercial and institutional buildings;
(3) to train engineers, architects, building scientists,
building energy permitting and enforcement officials, and
building technicians in energy-efficient design and operation;
(4) to assist institutions of higher education and Tribal
Colleges or Universities in training building technicians;
(5) to promote research and development for the use of
alternative energy sources and distributed generation to supply
heat and power for buildings, particularly energy-intensive
buildings; and
(6) to coordinate with and assist State-accredited
technical training centers, community colleges, Tribal Colleges
or Universities, and local offices of the National Institute of
Food and Agriculture and ensure appropriate services are
provided under this section to each region of the United
States.
(b) Coordination and Nonduplication.--
(1) In general.--The Secretary shall coordinate the program
with the industrial research and assessment centers program and
with other Federal programs to avoid duplication of effort.
(2) Collocation.--To the maximum extent practicable,
building, training, and assessment centers established under
this section shall be collocated with Industrial Assessment
Centers.
(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000, to remain available
until expended.
SEC. 112. CAREER SKILLS TRAINING.
(a) In General.--The Secretary shall pay grants to eligible
entities described in subsection (b) to pay the Federal share of
associated career skills training programs under which students
concurrently receive classroom instruction and on-the-job training for
the purpose of obtaining an industry-related certification to install
energy efficient buildings technologies, including technologies
described in section 307(b)(3) of the Energy Conservation and
Production Act (42 U.S.C. 6836(b)(3)).
(b) Eligibility.--To be eligible to obtain a grant under subsection
(a), an entity shall be a nonprofit partnership described in section
171(e)(2)(B)(ii) of the Workforce Investment Act of 1998 (29 U.S.C.
2916(e)(2)(B)(ii)).
(c) Federal Share.--The Federal share of the cost of carrying out a
career skills training program described in subsection (a) shall be 50
percent.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000, to remain available
until expended.
Subtitle C--School Buildings
SEC. 121. COORDINATION OF ENERGY RETROFITTING ASSISTANCE FOR SCHOOLS.
(a) Definition of School.--In this section, the term ``school''
means--
(1) an elementary school or secondary school (as defined in
section 9101 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7801));
(2) an institution of higher education (as defined in
section 102(a) of the Higher Education Act of 1965 (20 U.S.C.
1002(a));
(3) a school of the defense dependents' education system
under the Defense Dependents' Education Act of 1978 (20 U.S.C.
921 et seq.) or established under section 2164 of title 10,
United States Code;
(4) a school operated by the Bureau of Indian Affairs;
(5) a tribally controlled school (as defined in section
5212 of the Tribally Controlled Schools Act of 1988 (25 U.S.C.
2511)); and
(6) a Tribal College or University (as defined in section
316(b) of the Higher Education Act of 1965 (20 U.S.C.
1059c(b))).
(b) Designation of Lead Agency.--The Secretary, acting through the
Office of Energy Efficiency and Renewable Energy, shall act as the lead
Federal agency for coordinating and disseminating information on
existing Federal programs and assistance that may be used to help
initiate, develop, and finance energy efficiency, renewable energy, and
energy retrofitting projects for schools.
(c) Requirements.--In carrying out coordination and outreach under
subsection (b), the Secretary shall--
(1) in consultation and coordination with the appropriate
Federal agencies, carry out a review of existing programs and
financing mechanisms (including revolving loan funds and loan
guarantees) available in or from the Department of Agriculture,
the Department of Energy, the Department of Education, the
Department of the Treasury, the Internal Revenue Service, the
Environmental Protection Agency, and other appropriate Federal
agencies with jurisdiction over energy financing and
facilitation that are currently used or may be used to help
initiate, develop, and finance energy efficiency, renewable
energy, and energy retrofitting projects for schools;
(2) establish a Federal cross-departmental collaborative
coordination, education, and outreach effort to streamline
communication and promote available Federal opportunities and
assistance described in paragraph (1), for energy efficiency,
renewable energy, and energy retrofitting projects that enables
States, local educational agencies, and schools--
(A) to use existing Federal opportunities more
effectively; and
(B) to form partnerships with Governors, State
energy programs, local educational, financial, and
energy officials, State and local government officials,
nonprofit organizations, and other appropriate
entities, to support the initiation of the projects;
(3) provide technical assistance for States, local
educational agencies, and schools to help develop and finance
energy efficiency, renewable energy, and energy retrofitting
projects--
(A) to increase the energy efficiency of buildings
or facilities;
(B) to install systems that individually generate
energy from renewable energy resources;
(C) to establish partnerships to leverage economies
of scale and additional financing mechanisms available
to larger clean energy initiatives; or
(D) to promote--
(i) the maintenance of health,
environmental quality, and safety in schools,
including the ambient air quality, through
energy efficiency, renewable energy, and energy
retrofit projects; and
(ii) the achievement of expected energy
savings and renewable energy production through
proper operations and maintenance practices;
(4) develop and maintain a single online resource website
with contact information for relevant technical assistance and
support staff in the Office of Energy Efficiency and Renewable
Energy for States, local educational agencies, and schools to
effectively access and use Federal opportunities and assistance
described in paragraph (1) to develop energy efficiency,
renewable energy, and energy retrofitting projects; and
(5) establish a process for recognition of schools that--
(A) have successfully implemented energy
efficiency, renewable energy, and energy retrofitting
projects; and
(B) are willing to serve as resources for other
local educational agencies and schools to assist
initiation of similar efforts.
(d) Report.--Not later than 180 days after the date of enactment of
this Act, the Secretary shall submit to Congress a report describing
the implementation of this section.
Subtitle D--Better Buildings
SEC. 131. ENERGY EFFICIENCY IN FEDERAL AND OTHER BUILDINGS.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of General Services.
(2) Cost-effective energy efficiency measure.--The terms
``cost-effective energy efficiency measure'' and ``measure''
mean any building product, material, equipment, or service and
the installing, implementing, or operating thereof, that
provides energy savings in an amount that is not less than the
cost of such installing, implementing, or operating.
(b) Model Provisions, Policies, and Best Practices.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Administrator, in consultation with
the Secretary and after providing the public with an
opportunity for notice and comment, shall develop model leasing
provisions and best practices in accordance with this
subsection.
(2) Commercial leasing.--
(A) In general.--The model commercial leasing
provisions developed under this subsection shall, at a
minimum, align the interests of building owners and
tenants with regard to investments in cost-effective
energy efficiency measures to encourage building owners
and tenants to collaborate to invest in such measures.
(B) Use of model provisions.--The Administrator may
use the model provisions developed under this
subsection in any standard leasing document that
designates a Federal agency (or other client of the
Administrator) as a landlord or tenant.
(C) Publication.--The Administrator shall
periodically publish the model leasing provisions
developed under this subsection, along with explanatory
materials, to encourage building owners and tenants in
the private sector to use such provisions and
materials.
(3) Realty services.--The Administrator shall develop
policies and practices to implement cost-effective energy
efficiency measures for the realty services provided by the
Administrator to Federal agencies (or other clients of the
Administrator), including periodic training of appropriate
Federal employees and contractors on how to identify and
evaluate those measures.
(4) State and local assistance.--The Administrator, in
consultation with the Secretary, shall make available model
leasing provisions and best practices developed under this
subsection to State, county, and municipal governments to
manage owned and leased building space in accordance with the
goal of encouraging investment in all cost-effective energy
efficiency measures.
SEC. 132. SEPARATE SPACES WITH HIGH-PERFORMANCE ENERGY EFFICIENCY
MEASURES.
Subtitle B of title IV of the Energy Independence and Security Act
of 2007 (42 U.S.C. 17081 et seq.) is amended by adding at the end the
following:
``SEC. 424. SEPARATE SPACES WITH HIGH-PERFORMANCE ENERGY EFFICIENCY
MEASURES.
``(a) Definitions.--In this section:
``(1) High-performance energy efficiency measure.--The term
`high-performance energy efficiency measure' means a
technology, product, or practice that will result in
substantial operational cost savings by reducing energy
consumption and utility costs.
``(2) Separate spaces.--The term `separate spaces' means
areas within a commercial building that are leased or otherwise
occupied by a tenant or other occupant for a period of time
pursuant to the terms of a written agreement.
``(b) Study.--
``(1) In general.--Not later than 1 year after the date of
enactment of this section, the Secretary, acting through the
Assistant Secretary of Energy Efficiency and Renewable Energy,
shall complete a study on the feasibility of--
``(A) significantly improving energy efficiency in
commercial buildings through the design and
construction, by owners and tenants, of separate spaces
with high-performance energy efficiency measures; and
``(B) encouraging owners and tenants to implement
high-performance energy efficiency measures in separate
spaces.
``(2) Scope.--The study shall, at a minimum, include--
``(A) descriptions of--
``(i) high-performance energy efficiency
measures that should be considered as part of
the initial design and construction of separate
spaces;
``(ii) processes that owners, tenants,
architects, and engineers may replicate when
designing and constructing separate spaces with
high-performance energy efficiency measures;
``(iii) policies and best practices to
achieve reductions in energy intensities for
lighting, plug loads, heating, cooling,
cooking, laundry, and other systems to satisfy
the needs of the commercial building tenant;
``(iv) return on investment and payback
analyses of the incremental cost and projected
energy savings of the proposed set of high-
performance energy efficiency measures,
including consideration of available
incentives;
``(v) models and simulation methods that
predict the quantity of energy used by separate
spaces with high-performance energy efficiency
measures and that compare that predicted
quantity to the quantity of energy used by
separate spaces without high-performance energy
efficiency measures but that otherwise comply
with applicable building code requirements;
``(vi) measurement and verification
platforms demonstrating actual energy use of
high-performance energy efficiency measures
installed in separate spaces, and whether such
measures generate the savings intended in the
initial design and construction of the separate
spaces;
``(vii) best practices that encourage an
integrated approach to designing and
constructing separate spaces to perform at
optimum energy efficiency in conjunction with
the central systems of a commercial building;
and
``(viii) any impact on employment resulting
from the design and construction of separate
spaces with high-performance energy efficiency
measures; and
``(B) case studies reporting economic and energy
saving returns in the design and construction of
separate spaces with high-performance energy efficiency
measures.
``(3) Public participation.--Not later than 90 days after
the date of the enactment of this section, the Secretary shall
publish a notice in the Federal Register requesting public
comments regarding effective methods, measures, and practices
for the design and construction of separate spaces with high-
performance energy efficiency measures.
``(4) Publication.--The Secretary shall publish the study
on the website of the Department of Energy.''.
SEC. 133. TENANT STAR PROGRAM.
Subtitle B of title IV of the Energy Independence and Security Act
of 2007 (42 U.S.C. 17081 et seq.) (as amended by section 132) is
amended by adding at the end the following:
``SEC. 425. TENANT STAR PROGRAM.
``(a) Definitions.--In this section:
``(1) High-performance energy efficiency measure.--The term
`high-performance energy efficiency measure' has the meaning
given the term in section 424.
``(2) Separate spaces.--The term `separate spaces' has the
meaning given the term in section 424.
``(b) Tenant Star.--The Administrator of the Environmental
Protection Agency, in consultation with the Secretary of Energy, shall
develop a voluntary program within the Energy Star program established
by section 324A of the Energy Policy and Conservation Act (42 U.S.C.
6294a), which may be known as Tenant Star, to promote energy efficiency
in separate spaces leased by tenants or otherwise occupied within
commercial buildings.
``(c) Expanding Survey Data.--The Secretary of Energy, acting
through the Administrator of the Energy Information Administration,
shall--
``(1) collect, through each Commercial Buildings Energy
Consumption Survey of the Energy Information Administration
that is conducted after the date of enactment of this section,
data on--
``(A) categories of building occupancy that are
known to consume significant quantities of energy, such
as occupancy by data centers, trading floors, and
restaurants; and
``(B) other aspects of the property, building
operation, or building occupancy determined by the
Administrator of the Energy Information Administration,
in consultation with the Administrator of the
Environmental Protection Agency, to be relevant in
lowering energy consumption;
``(2) with respect to the first Commercial Buildings Energy
Consumption Survey conducted after the date of enactment of
this section, to the extent full compliance with the
requirements of paragraph (1) is not feasible, conduct
activities to develop the capability to collect such data and
begin to collect such data; and
``(3) make data collected under paragraphs (1) and (2)
available to the public in aggregated form and provide such
data, and any associated results, to the Administrator of the
Environmental Protection Agency for use in accordance with
subsection (d).
``(d) Recognition of Owners and Tenants.--
``(1) Occupancy-based recognition.--Not later than 1 year
after the date on which sufficient data is received pursuant to
subsection (c), the Administrator of the Environmental
Protection Agency shall, following an opportunity for public
notice and comment--
``(A) in a manner similar to the Energy Star rating
system for commercial buildings, develop policies and
procedures to recognize tenants in commercial buildings
that voluntarily achieve high levels of energy
efficiency in separate spaces;
``(B) establish building occupancy categories
eligible for Tenant Star recognition based on the data
collected under subsection (c) and any other
appropriate data sources; and
``(C) consider other forms of recognition for
commercial building tenants or other occupants that
lower energy consumption in separate spaces.
``(2) Design- and construction-based recognition.--After
the study required by section 424(b) is completed, the
Administrator of the Environmental Protection Agency, in
consultation with the Secretary and following an opportunity
for public notice and comment, may develop a voluntary program
to recognize commercial building owners and tenants that use
high-performance energy efficiency measures in the design and
construction of separate spaces.''.
Subtitle E--Energy Information for Commercial Buildings
SEC. 141. ENERGY INFORMATION FOR COMMERCIAL BUILDINGS.
(a) Requirement of Benchmarking and Disclosure for Leasing
Buildings Without Energy Star Labels.--Section 435(b)(2) of the Energy
Independence and Security Act of 2007 (42 U.S.C. 17091(b)(2)) is
amended--
(1) by striking ``paragraph (2)'' and inserting ``paragraph
(1)''; and
(2) by striking ``signing the contract,'' and all that
follows through the period at the end and inserting the
following:
``signing the contract, the following requirements are met:
``(A) The space is renovated for all energy
efficiency and conservation improvements that would be
cost effective over the life of the lease, including
improvements in lighting, windows, and heating,
ventilation, and air conditioning systems.
``(B)(i) Subject to clause (ii), the space is
benchmarked under a nationally recognized, online, free
benchmarking program, with public disclosure, unless
the space is a space for which owners cannot access
whole building utility consumption data, including
spaces--
``(I) that are located in States with
privacy laws that provide that utilities shall
not provide such aggregated information to
multitenant building owners; and
``(II) for which tenants do not provide
energy consumption information to the
commercial building owner in response to a
request from the building owner.
``(ii) A Federal agency that is a tenant of the
space shall provide to the building owner, or authorize
the owner to obtain from the utility, the energy
consumption information of the space for the
benchmarking and disclosure required by this
subparagraph.''.
(b) Department of Energy Study.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall complete a study,
with opportunity for public comment--
(A) on the impact of--
(i) State and local performance
benchmarking and disclosure policies, and any
associated building efficiency policies, for
commercial and multifamily buildings; and
(ii) programs and systems in which
utilities provide aggregated information
regarding whole building energy consumption and
usage information to owners of multitenant
commercial, residential, and mixed-use
buildings;
(B) that identifies best practice policy approaches
studied under subparagraph (A) that have resulted in
the greatest improvements in building energy
efficiency; and
(C) that considers--
(i) compliance rates and the benefits and
costs of the policies and programs on building
owners, utilities, tenants, and other parties;
(ii) utility practices, programs, and
systems that provide aggregated energy
consumption information to multitenant building
owners, and the impact of public utility
commissions and State privacy laws on those
practices, programs, and systems;
(iii) exceptions to compliance in existing
laws where building owners are not able to
gather or access whole building energy
information from tenants or utilities;
(iv) the treatment of buildings with--
(I) multiple uses;
(II) uses for which baseline
information is not available; and
(III) uses that require high levels
of energy intensities, such as data
centers, trading floors, and
televisions studios;
(v) implementation practices, including
disclosure methods and phase-in of compliance;
(vi) the safety and security of
benchmarking tools offered by government
agencies, and the resiliency of those tools
against cyber-attacks; and
(vii) international experiences with regard
to building benchmarking and disclosure laws
and data aggregation for multitenant buildings.
(2) Submission to congress.--At the conclusion of the
study, the Secretary shall submit to Congress a report on the
results of the study.
(c) Creation and Maintenance of Databases.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act and following opportunity for public
notice and comment, the Secretary, in coordination with other
relevant agencies shall, to carry out the purpose described in
paragraph (2)--
(A) assess existing databases; and
(B) as necessary--
(i) modify and maintain existing databases;
or
(ii) create and maintain a new database
platform.
(2) Purpose.--The maintenance of existing databases or
creation of a new database platform under paragraph (1) shall
be for the purpose of storing and making available public
energy-related information on commercial and multifamily
buildings, including--
(A) data provided under Federal, State, local, and
other laws or programs regarding building benchmarking
and energy information disclosure;
(B) buildings that have received energy ratings and
certifications; and
(C) energy-related information on buildings
provided voluntarily by the owners of the buildings, in
an anonymous form, unless the owner provides otherwise.
(d) Competitive Awards.--Based on the results of the research for
the portion of the study described in subsection (b)(1)(A)(ii), and
with criteria developed following public notice and comment, the
Secretary may make competitive awards to utilities, utility regulators,
and utility partners to develop and implement effective and promising
programs to provide aggregated whole building energy consumption
information to multitenant building owners.
(e) Input From Stakeholders.--The Secretary shall seek input from
stakeholders to maximize the effectiveness of the actions taken under
this section.
(f) Report.--Not later than 2 years after the date of enactment of
this Act, and every 2 years thereafter, the Secretary shall submit to
Congress a report on the progress made in complying with this section.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out subsection (b) $2,500,000 for each of fiscal
years 2015 through 2019, to remain available until expended.
TITLE II--INDUSTRIAL EFFICIENCY AND COMPETITIVENESS
Subtitle A--Manufacturing Energy Efficiency
SEC. 201. PURPOSES.
The purposes of this subtitle are--
(1) to reform and reorient the industrial efficiency
programs of the Department of Energy;
(2) to establish a clear and consistent authority for
industrial efficiency programs of the Department;
(3) to accelerate the deployment of technologies and
practices that will increase industrial energy efficiency and
improve productivity;
(4) to accelerate the development and demonstration of
technologies that will assist the deployment goals of the
industrial efficiency programs of the Department and increase
manufacturing efficiency;
(5) to stimulate domestic economic growth and improve
industrial productivity and competitiveness; and
(6) to strengthen partnerships between Federal and State
governmental agencies and the private and academic sectors.
SEC. 202. FUTURE OF INDUSTRY PROGRAM.
(a) In General.--Section 452 of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17111) is amended by striking the
section heading and inserting the following: ``future of industry
program''.
(b) Definition of Energy Service Provider.--Section 452(a) of the
Energy Independence and Security Act of 2007 (42 U.S.C. 17111(a)) is
amended--
(1) by redesignating paragraphs (3) through (5) as
paragraphs (4) through (6), respectively; and
(2) by inserting after paragraph (2):
``(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.''.
(c) Industrial Research and Assessment Centers.--Section 452(e) of
the Energy Independence and Security Act of 2007 (42 U.S.C. 17111(e))
is amended--
(1) by redesignating paragraphs (1) through (5) as
subparagraphs (A) through (E), respectively, and indenting
appropriately;
(2) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary'';
(3) in subparagraph (A) (as redesignated by paragraph (1)),
by inserting before the semicolon at the end the following: ``,
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''; and
(4) by adding at the end the following:
``(2) Coordination.--
``(A) In general.--To increase the value and
capabilities of the industrial research and assessment
centers, the centers shall--
``(i) coordinate with Manufacturing
Extension Partnership Centers of the National
Institute of Standards and Technology;
``(ii) coordinate with the Building
Technologies Program of the Department of
Energy to provide building assessment services
to manufacturers;
``(iii) 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;
``(iv) 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;
``(v) identify opportunities for reducing
greenhouse gas emissions; and
``(vi) 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. 203. SUSTAINABLE MANUFACTURING INITIATIVE.
(a) In General.--Part E of title III of the Energy Policy and
Conservation Act (42 U.S.C. 6341) is amended by adding at the end the
following:
``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 onsite 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.''.
(b) Table of Contents.--The table of contents of the Energy Policy
and Conservation Act (42 U.S.C. prec. 6201) is amended by adding at the
end of the items relating to part E of title III the following:
``Sec. 376. Sustainable manufacturing initiative.''.
SEC. 204. CONFORMING AMENDMENTS.
(a) Section 106 of the Energy Policy Act of 2005 (42 U.S.C. 15811)
is repealed.
(b) Sections 131, 132, 133, 2103, and 2107 of the Energy Policy Act
of 1992 (42 U.S.C. 6348, 6349, 6350, 13453, 13456) are repealed.
(c) Section 2101(a) of the Energy Policy Act of 1992 (42 U.S.C.
13451(a)) is amended in the third sentence by striking ``sections 2102,
2103, 2104, 2105, 2106, 2107, and 2108'' and inserting ``sections 2102,
2104, 2105, 2106, and 2108 of this Act and section 376 of the Energy
Policy and Conservation Act,''.
Subtitle B--Supply Star
SEC. 211. SUPPLY STAR.
The Energy Policy and Conservation Act is amended by inserting
after section 324A (42 U.S.C. 6294a) the following:
``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.''.
Subtitle C--Extended Product System Rebate Program
SEC. 221. EXTENDED PRODUCT SYSTEM REBATE PROGRAM.
(a) Definitions.--In this section:
(1) Electric motor.--The term ``electric motor'' has the
meaning given the term in section 431.12 of title 10, Code of
Federal Regulations (as in effect on the date of enactment of
this Act).
(2) Electronic control.--The term ``electronic control''
means--
(A) a power converter; or
(B) a combination of a power circuit and control
circuit included on 1 chassis.
(3) Extended product system.--The term ``extended product
system'' means an electric motor and any required associated
electronic control and driven load that--
(A) offers variable speed or multispeed operation;
(B) offers partial load control that reduces input
energy requirements (as measured in kilowatt-hours) as
compared to identified base levels set by the
Secretary; and
(C)(i) has greater than 1 horsepower; and
(ii) uses an extended product system technology, as
determined by the Secretary.
(4) Qualified extended product system.--
(A) In general.--The term ``qualified extended
product system'' means an extended product system
that--
(i) includes an electric motor and an
electronic control; and
(ii) reduces the input energy (as measured
in kilowatt-hours) required to operate the
extended product system by not less than 5
percent, as compared to identified base levels
set by the Secretary.
(B) Inclusions.--The term ``qualified extended
product system'' includes commercial or industrial
machinery or equipment that--
(i)(I) did not previously make use of the
extended product system prior to the redesign
described in subclause (II); and
(II) incorporates an extended product
system that has greater than 1 horsepower into
redesigned machinery or equipment; and
(ii) was previously used prior to, and was
placed back into service during, calendar year
2016 or 2017.
(b) Establishment.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall establish a program to
provide rebates for expenditures made by qualified entities for the
purchase or installation of a qualified extended product system.
(c) Qualified Entities.--
(1) Eligibility requirements.--A qualified entity under
this section shall be--
(A) in the case of a qualified extended product
system described in subsection (a)(4)(A), the purchaser
of the qualified extended product that is installed;
and
(B) in the case of a qualified extended product
system described in subsection (a)(4)(B), the
manufacturer of the commercial or industrial machinery
or equipment that incorporated the extended product
system into that machinery or equipment.
(2) Application.--To be eligible to receive a rebate under
this section, a qualified entity shall submit to the
Secretary--
(A) an application in such form, at such time, and
containing such information as the Secretary may
require; and
(B) a certification that includes demonstrated
evidence--
(i) that the entity is a qualified entity;
and
(ii)(I) in the case of a qualified entity
described in paragraph (1)(A)--
(aa) that the qualified entity
installed the qualified extended
product system during the 2 fiscal
years following the date of enactment
of this Act;
(bb) that the qualified extended
product system meets the requirements
of subsection (a)(4)(A); and
(cc) showing the serial number,
manufacturer, and model number from the
nameplate of the installed motor of the
qualified entity on which the qualified
extended product system was installed;
or
(II) in the case of a qualified entity
described in paragraph (1)(B), demonstrated
evidence--
(aa) that the qualified extended
product system meets the requirements
of subsection (a)(4)(B); and
(bb) showing the serial number,
manufacturer, and model number from the
nameplate of the installed motor of the
qualified entity with which the
extended product system is integrated.
(d) Authorized Amount of Rebate.--
(1) In general.--The Secretary may provide to a qualified
entity a rebate in an amount equal to the product obtained by
multiplying--
(A) an amount equal to the sum of the nameplate
rated horsepower of--
(i) the electric motor to which the
qualified extended product system is attached;
and
(ii) the electronic control; and
(B) $25.
(2) Maximum aggregate amount.--A qualified entity shall not
be entitled to aggregate rebates under this section in excess
of $25,000 per calendar year.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for each of the first
2 full fiscal years following the date of enactment of this Act, to
remain available until expended.
Subtitle D--Transformer Rebate Program
SEC. 231. ENERGY EFFICIENT TRANSFORMER REBATE PROGRAM.
(a) Definitions.--In this section:
(1) Qualified energy efficient transformer.--The term
``qualified energy efficient transformer'' means a transformer
that meets or exceeds the applicable energy conservation
standards described in the tables in subsection (b)(2) and
paragraphs (1) and (2) of subsection (c) of section 431.196 of
title 10, Code of Federal Regulations (as in effect on the date
of enactment of this Act).
(2) Qualified energy inefficient transformer.--The term
``qualified energy inefficient transformer'' means a
transformer with an equal number of phases and capacity to a
transformer described in any of the tables in subsection (b)(2)
and paragraphs (1) and (2) of subsection (c) of section 431.196
of title 10, Code of Federal Regulations (as in effect on the
date of enactment of this Act) that--
(A) does not meet or exceed the applicable energy
conservation standards described in paragraph (1); and
(B)(i) was manufactured between January 1, 1985,
and December 31, 2006, for a transformer with an equal
number of phases and capacity as a transformer
described in the table in subsection (b)(2) of section
431.196 of title 10, Code of Federal Regulations (as in
effect on the date of enactment of this Act); or
(ii) was manufactured between January 1, 1990, and
December 31, 2009, for a transformer with an equal
number of phases and capacity as a transformer
described in the table in paragraph (1) or (2) of
subsection (c) of that section (as in effect on the
date of enactment of this Act).
(3) Qualified entity.--The term ``qualified entity'' means
an owner of industrial or manufacturing facilities, commercial
buildings, or multifamily residential buildings, a utility, or
an energy service company that fulfills the requirements of
subsection (d).
(b) Establishment.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall establish a program to
provide rebates to qualified entities for expenditures made by the
qualified entity for the replacement of a qualified energy inefficient
transformer with a qualified energy efficient transformer.
(c) Requirements.--To be eligible to receive a rebate under this
section, an entity shall submit to the Secretary an application in such
form, at such time, and containing such information as the Secretary
may require, including demonstrated evidence--
(1) that the entity purchased a qualified energy efficient
transformer;
(2) of the core loss value of the qualified energy
efficient transformer;
(3) of the age of the qualified energy inefficient
transformer being replaced;
(4) of the core loss value of the qualified energy
inefficient transformer being replaced--
(A) as measured by a qualified professional or
verified by the equipment manufacturer, as applicable;
or
(B) for transformers described in subsection
(a)(2)(B)(i), as selected from a table of default
values as determined by the Secretary in consultation
with applicable industry; and
(5) that the qualified energy inefficient transformer has
been permanently decommissioned and scrapped.
(d) Authorized Amount of Rebate.--The amount of a rebate provided
under this section shall be--
(1) for a 3-phase or single-phase transformer with a
capacity of not less than 10 and not greater than 2,500
kilovolt-amperes, twice the amount equal to the difference in
Watts between the core loss value (as measured in accordance
with paragraphs (2) and (4) of subsection (c)) of--
(A) the qualified energy inefficient transformer;
and
(B) the qualified energy efficient transformer; or
(2) for a transformer described in subsection (a)(2)(B)(i),
the amount determined using a table of default rebate values by
rated transformer output, as measured in kilovolt-amperes, as
determined by the Secretary in consultation with applicable
industry.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal
years 2016 and 2017, to remain available until expended.
(f) Termination of Effectiveness.--The authority provided by this
section terminates on December 31, 2017.
TITLE III--FEDERAL AGENCY ENERGY EFFICIENCY
SEC. 301. ENERGY-EFFICIENT AND ENERGY-SAVING INFORMATION TECHNOLOGIES.
Section 543 of the National Energy Conservation Policy Act (42
U.S.C. 8253) is amended--
(1) by redesignating the second subsection (f) (relating to
large capital energy investments) as subsection (g); and
(2) by adding at the end the following:
``(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.''.
SEC. 302. AVAILABILITY OF FUNDS FOR DESIGN UPDATES.
Section 3307 of title 40, United States Code, is amended--
(1) by redesignating subsections (d) through (h) as
subsections (e) through (i), respectively; and
(2) by inserting after subsection (c) the following:
``(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).''.
SEC. 303. ENERGY EFFICIENT DATA CENTERS.
Section 453 of the Energy Independence and Security Act of 2007 (42
U.S.C. 17112) is amended--
(1) in subsection (b)--
(A) in paragraph (2)(D)(iv), by striking ``the
organization'' and inserting ``an organization''; and
(B) by striking paragraph (3); and
(2) by striking subsections (c) through (g) and inserting
the following:
``(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 Savings and Industrial Competitiveness 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; and
``(4) 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 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.''.
SEC. 304. BUDGET-NEUTRAL DEMONSTRATION PROGRAM FOR ENERGY AND WATER
CONSERVATION IMPROVEMENTS AT MULTIFAMILY RESIDENTIAL
UNITS.
(a) Establishment.--The Secretary of Housing and Urban Development
(referred to in this section as the ``Secretary'') shall establish a
demonstration program under which, during the period beginning on the
date of enactment of this Act, and ending on September 30, 2018, the
Secretary may enter into budget-neutral, performance-based agreements
that result in a reduction in energy or water costs with such entities
as the Secretary determines to be appropriate under which the entities
shall carry out projects for energy or water conservation improvements
at not more than 20,000 residential units in multifamily buildings
participating in--
(1) the project-based rental assistance program under
section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f), other than assistance provided under section 8(o) of
that Act;
(2) the supportive housing for the elderly program under
section 202 of the Housing Act of 1959 (12 U.S.C. 1701q); or
(3) the supportive housing for persons with disabilities
program under section 811(d)(2) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 8013(d)(2)).
(b) Requirements.--
(1) Payments contingent on savings.--
(A) In general.--The Secretary shall provide to an
entity a payment under an agreement under this section
only during applicable years for which an energy or
water cost savings is achieved with respect to the
applicable multifamily portfolio of properties, as
determined by the Secretary, in accordance with
subparagraph (B).
(B) Payment methodology.--
(i) In general.--Each agreement under this
section shall include a pay-for-success
provision--
(I) that will serve as a payment
threshold for the term of the
agreement; and
(II) pursuant to which the
Department of Housing and Urban
Development shall share a percentage of
the savings at a level determined by
the Secretary that is sufficient to
cover the administrative costs of
carrying out this section.
(ii) Limitations.--A payment made by the
Secretary under an agreement under this section
shall--
(I) be contingent on documented
utility savings; and
(II) not exceed the utility savings
achieved by the date of the payment,
and not previously paid, as a result of
the improvements made under the
agreement.
(C) Third party verification.--Savings payments
made by the Secretary under this section shall be based
on a measurement and verification protocol that
includes at least--
(i) establishment of a weather-normalized
and occupancy-normalized utility consumption
baseline established preretrofit;
(ii) annual third party confirmation of
actual utility consumption and cost for owner-
paid utilities;
(iii) annual third party validation of the
tenant utility allowances in effect during the
applicable year and vacancy rates for each unit
type; and
(iv) annual third party determination of
savings to the Secretary.
(2) Term.--The term of an agreement under this section
shall be not longer than 12 years.
(3) Entity eligibility.--The Secretary shall--
(A) establish a competitive process for entering
into agreements under this section; and
(B) enter into such agreements only with entities
that demonstrate significant experience relating to--
(i) financing and operating properties
receiving assistance under a program described
in subsection (a);
(ii) oversight of energy and water
conservation programs, including oversight of
contractors; and
(iii) raising capital for energy and water
conservation improvements from charitable
organizations or private investors.
(4) Geographical diversity.--Each agreement entered into
under this section shall provide for the inclusion of
properties with the greatest feasible regional and State
variance.
(c) Plan and Reports.--
(1) Plan.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall submit to the
Committees on Appropriations of the House of Representatives
and the Senate a detailed plan for the implementation of this
section.
(2) Reports.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, the Secretary
shall--
(A) conduct an evaluation of the program under this
section; and
(B) submit to Congress a report describing each
evaluation conducted under subparagraph (A).
(d) Funding.--For each fiscal year during which an agreement under
this section is in effect, the Secretary may use to carry out this
section any funds appropriated to the Secretary for the renewal of
contracts under a program described in subsection (a).
TITLE IV--REGULATORY PROVISIONS
Subtitle A--Third-Party Certification Under Energy Star Program
SEC. 401. THIRD-PARTY CERTIFICATION UNDER ENERGY STAR PROGRAM.
Section 324A of the Energy Policy and Conservation Act (42 U.S.C.
6294a) is amended by adding at the end the following:
``(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.''.
Subtitle B--Federal Green Buildings
SEC. 411. HIGH-PERFORMANCE GREEN FEDERAL BUILDINGS.
Section 436(h) of the Energy Independence and Security Act of 2007
(42 U.S.C. 17092(h)) is amended--
(1) in the subsection heading, by striking ``System'' and
inserting ``Systems'';
(2) by striking paragraph (1) and inserting the following:
``(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.''; and
(3) in paragraph (2)--
(A) in the matter preceding subparagraph (A), by
striking ``system'' and inserting ``systems'';
(B) by striking subparagraph (A) and inserting the
following:
``(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;'';
(C) in subparagraph (E)(v), by striking ``and''
after the semicolon at the end;
(D) in subparagraph (F), by striking the period at
the end and inserting a semicolon; and
(E) by adding at the end the following:
``(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.''.
Subtitle C--Water Heaters
SEC. 421. GRID-ENABLED WATER HEATERS.
Part B of title III of the Energy Policy and Conservation Act is
amended--
(1) in section 325(e) (42 U.S.C. 6295(e)), by adding at the
end the following:
``(6) Additional standards for grid-enabled water
heaters.--
``(A) Definitions.--In this paragraph:
``(i) Activation lock.--The term
`activation lock' means a control mechanism
(either a physical device directly on the water
heater or a control system integrated into the
water heater) that is locked by default and
contains a physical, software, or digital
communication that must be activated with an
activation key to enable the product to operate
at its designed specifications and capabilities
and without which activation the product will
provide not greater than 50 percent of the
rated first hour delivery of hot water
certified by the manufacturer.
``(ii) Grid-enabled water heater.--The term
`grid-enabled water heater' means an electric
resistance water heater that--
``(I) has a rated storage tank
volume of more than 75 gallons;
``(II) is manufactured on or after
April 16, 2015;
``(III) has--
``(aa) an energy factor of
not less than 1.061 minus the
product obtained by
multiplying--
``(AA) the rated
storage volume of the
tank, expressed in
gallons; and
``(BB) 0.00168; or
``(bb) an equivalent
alternative standard prescribed
by the Secretary and developed
pursuant to paragraph (5)(E);
``(IV) is equipped at the point of
manufacture with an activation lock;
and
``(V) bears a permanent label
applied by the manufacturer that--
``(aa) is made of material
not adversely affected by
water;
``(bb) is attached by means
of non-water-soluble adhesive;
and
``(cc) advises purchasers
and end-users of the intended
and appropriate use of the
product with the following
notice printed in 16.5 point
Arial Narrow Bold font:
```IMPORTANT INFORMATION: This water heater is intended only for use as
part of an electric thermal storage or demand response program. It will
not provide adequate hot water unless enrolled in such a program and
activated by your utility company or another program operator. Confirm
the availability of a program in your local area before purchasing or
installing this product.'.
``(B) Requirement.--The manufacturer or private
labeler shall provide the activation key for a grid-
enabled water heater only to a utility or other company
that operates an electric thermal storage or demand
response program that uses such a grid-enabled water
heater.
``(C) Reports.--
``(i) Manufacturers.--The Secretary shall
require each manufacturer of grid-enabled water
heaters to report to the Secretary annually the
quantity of grid-enabled water heaters that the
manufacturer ships each year.
``(ii) Operators.--The Secretary shall
require utilities and other demand response and
thermal storage program operators to report
annually the quantity of grid-enabled water
heaters activated for their programs using
forms of the Energy Information Agency or using
such other mechanism that the Secretary
determines appropriate after an opportunity for
notice and comment.
``(iii) Confidentiality requirements.--The
Secretary shall treat shipment data reported by
manufacturers as confidential business
information.
``(D) Publication of information.--
``(i) In general.--In 2017 and 2019, the
Secretary shall publish an analysis of the data
collected under subparagraph (C) to assess the
extent to which shipped products are put into
use in demand response and thermal storage
programs.
``(ii) Prevention of product diversion.--If
the Secretary determines that sales of grid-
enabled water heaters exceed by 15 percent or
greater the quantity of such products activated
for use in demand response and thermal storage
programs annually, the Secretary shall, after
opportunity for notice and comment, establish
procedures to prevent product diversion for
non-program purposes.
``(E) Compliance.--
``(i) In general.--Subparagraphs (A)
through (D) shall remain in effect until the
Secretary determines under this section that--
``(I) grid-enabled water heaters do
not require a separate efficiency
requirement; or
``(II) sales of grid-enabled water
heaters exceed by 15 percent or greater
the quantity of such products activated
for use in demand response and thermal
storage programs annually and
procedures to prevent product diversion
for non-program purposes would not be
adequate to prevent such product
diversion.
``(ii) Effective date.--If the Secretary
exercises the authority described in clause (i)
or amends the efficiency requirement for grid-
enabled water heaters, that action will take
effect on the date described in subsection
(m)(4)(A)(ii).
``(iii) Consideration.--In carrying out
this section with respect to electric water
heaters, the Secretary shall consider the
impact on thermal storage and demand response
programs, including any impact on energy
savings, electric bills, peak load reduction,
electric reliability, integration of renewable
resources, and the environment.
``(iv) Requirements.--In carrying out this
paragraph, the Secretary shall require that
grid-enabled water heaters be equipped with
communication capability to enable the grid-
enabled water heaters to participate in
ancillary services programs if the Secretary
determines that the technology is available,
practical, and cost-effective.'';
(2) in section 332(a) (42 U.S.C. 6302(a))--
(A) in paragraph (5), by striking ``or'' at the
end;
(B) in the first paragraph (6), by striking the
period at the end and inserting a semicolon;
(C) by redesignating the second paragraph (6) as
paragraph (7);
(D) in subparagraph (B) of paragraph (7) (as so
redesignated), by striking the period at the end and
inserting ``; or''; and
(E) by adding at the end the following:
``(8) for any person--
``(A) to activate an activation lock for a grid-
enabled water heater with knowledge that such water
heater is not used as part of an electric thermal
storage or demand response program;
``(B) to distribute an activation key for a grid-
enabled water heater with knowledge that such
activation key will be used to activate a grid-enabled
water heater that is not used as part of an electric
thermal storage or demand response program;
``(C) to otherwise enable a grid-enabled water
heater to operate at its designed specification and
capabilities with knowledge that such water heater is
not used as part of an electric thermal storage or
demand response program; or
``(D) to knowingly remove or render illegible the
label of a grid-enabled water heater described in
section 325(e)(6)(A)(ii)(V).'';
(3) in section 333(a) (42 U.S.C. 6303(a))--
(A) by striking ``section 332(a)(5)'' and inserting
``paragraph (5), (6), (7), or (8) of section 332(a)'';
and
(B) by striking ``paragraph (1), (2), or (5) of
section 332(a)'' and inserting ``paragraph (1), (2),
(5), (6), (7), or (8) of section 332(a)''; and
(4) in section 334 (42 U.S.C. 6304)--
(A) by striking ``section 332(a)(5)'' and inserting
``paragraph (5), (6), (7), or (8) of section 332(a)'';
and
(B) by striking ``section 332(a)(6)'' and inserting
``section 332(a)(7)''.
Subtitle D--Energy Performance Requirement for Federal Buildings
SEC. 431. ENERGY PERFORMANCE REQUIREMENT FOR FEDERAL BUILDINGS.
Section 543 of the National Energy Conservation Policy Act (42
U.S.C. 8253) is amended--
(1) by striking subsection (a) and inserting the following:
``(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:
Percentage
``Fiscal Year 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.''; and
(2) in subsection (f)--
(A) in paragraph (1)--
(i) by redesignating subparagraphs (E),
(F), and (G) as subparagraphs (F), (G), and
(H), respectively; and
(ii) by inserting after subparagraph (D)
the following:
``(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.'';
(B) in paragraph (2), by adding at the end the
following:
``(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'.'';
(C) by striking paragraphs (3) and (4) and
inserting the following:
``(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.''; and
(D) in paragraph (7)(C), by adding at the end the
following:
``(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.''.
SEC. 432. FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE STANDARDS;
CERTIFICATION SYSTEM AND LEVEL FOR GREEN BUILDINGS.
(a) Definitions.--Section 303 of the Energy Conservation and
Production Act (42 U.S.C. 6832) (as amended by section 101(a)) is
amended--
(1) in paragraph (6), by striking ``to be constructed'' and
inserting ``constructed or altered''; and
(2) by adding at the end the following:
``(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.''.
(b) Federal Building Efficiency Standards.--Section 305 of the
Energy Conservation and Production Act (42 U.S.C. 6834) is amended--
(1) in subsection (a)(3)--
(A) by striking ``(3)(A) Not later than'' and all
that follows through subparagraph (B) and inserting the
following:
``(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.'';
(B) in subparagraph (C), by striking ``(C) In the
budget request'' and inserting the following:
``(C) Budget request.--In the budget request''; and
(C) by striking subparagraph (D) and inserting the
following:
``(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.''; and
(2) by striking subsections (c) and (d) and inserting the
following:
``(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. 433. ENHANCED ENERGY EFFICIENCY UNDERWRITING.
(a) Definitions.--In this section:
(1) Covered agency.--The term ``covered agency''--
(A) means--
(i) an executive agency, as that term is
defined in section 102 of title 31, United
States Code; and
(ii) any other agency of the Federal
Government; and
(B) includes any enterprise, as that term is
defined under section 1303 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992
(12 U.S.C. 4502).
(2) Covered loan.--The term ``covered loan'' means a loan
secured by a home that is issued, insured, purchased, or
securitized by a covered agency.
(3) Homeowner.--The term ``homeowner'' means the mortgagor
under a covered loan.
(4) Mortgagee.--The term ``mortgagee'' means--
(A) an original lender under a covered loan or the
holder of a covered loan at the time at which that
mortgage transaction is consummated;
(B) any affiliate, agent, subsidiary, successor, or
assignee of an original lender under a covered loan or
the holder of a covered loan at the time at which that
mortgage transaction is consummated;
(C) any servicer of a covered loan; and
(D) any subsequent purchaser, trustee, or
transferee of any covered loan issued by an original
lender.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(6) Servicer.--The term ``servicer'' means the person or
entity responsible for the servicing of a covered loan,
including the person or entity who makes or holds a covered
loan if that person or entity also services the covered loan.
(7) Servicing.--The term ``servicing'' has the meaning
given the term in section 6(i) of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2605(i)).
(b) Findings and Purposes.--
(1) Findings.--Congress finds that--
(A) energy costs for homeowners are a significant
and increasing portion of their household budgets;
(B) household energy use can vary substantially
depending on the efficiency and characteristics of the
house;
(C) expected energy cost savings are important to
the value of the house;
(D) the current test for loan affordability used by
most covered agencies, commonly known as the ``debt-to-
income'' test, is inadequate because it does not take
into account the expected energy cost savings for the
homeowner of an energy efficient home; and
(E) another loan limitation, commonly known as the
``loan-to-value'' test, is tied to the appraisal, which
often does not adjust for efficiency features of
houses.
(2) Purposes.--The purposes of this section are to--
(A) improve the accuracy of mortgage underwriting
by Federal mortgage agencies by ensuring that energy
cost savings are included in the underwriting process
as described below, and thus to reduce the amount of
energy consumed by homes and to facilitate the creation
of energy efficiency retrofit and construction jobs;
(B) require a covered agency to include the
expected energy cost savings of a homeowner as a
regular expense in the tests, such as the debt-to-
income test, used to determine the ability of the loan
applicant to afford the cost of homeownership for all
loan programs; and
(C) require a covered agency to include the value
home buyers place on the energy efficiency of a house
in tests used to compare the mortgage amount to home
value, taking precautions to avoid double-counting and
to support safe and sound lending.
(c) Enhanced Energy Efficiency Underwriting Criteria.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall, in consultation
with the advisory group established in subsection (f)(2),
develop and issue guidelines for a covered agency to implement
enhanced loan eligibility requirements, for use when testing
the ability of a loan applicant to repay a covered loan, that
account for the expected energy cost savings for a loan
applicant at a subject property, in the manner set forth in
paragraphs (2) and (3).
(2) Requirements to account for energy cost savings.--The
enhanced loan eligibility requirements under paragraph (1)
shall require that, for all covered loans for which an energy
efficiency report is voluntarily provided to the mortgagee by
the mortgagor, the covered agency and the mortgagee shall take
into consideration the estimated energy cost savings expected
for the owner of the subject property in determining whether
the loan applicant has sufficient income to service the
mortgage debt plus other regular expenses. To the extent that a
covered agency uses a test such as a debt-to-income test that
includes certain regular expenses, such as hazard insurance and
property taxes, the expected energy cost savings shall be
included as an offset to these expenses. Energy costs to be
assessed include the cost of electricity, natural gas, oil, and
any other fuel regularly used to supply energy to the subject
property.
(3) Determination of estimated energy cost savings.--
(A) In general.--The guidelines to be issued under
paragraph (1) shall include instructions for the
covered agency to calculate estimated energy cost
savings using--
(i) the energy efficiency report;
(ii) an estimate of baseline average energy
costs; and
(iii) additional sources of information as
determined by the Secretary.
(B) Report requirements.--For the purposes of
subparagraph (A), an energy efficiency report shall--
(i) estimate the expected energy cost
savings specific to the subject property, based
on specific information about the property;
(ii) be prepared in accordance with the
guidelines to be issued under paragraph (1);
and
(iii) be prepared--
(I) in accordance with the
Residential Energy Service Network's
Home Energy Rating System (commonly
known as ``HERS'') by an individual
certified by the Residential Energy
Service Network, unless the Secretary
finds that the use of HERS does not
further the purposes of this section;
or
(II) by other methods approved by
the Secretary, in consultation with the
Secretary of Energy and the advisory
group established in subsection (f)(2),
for use under this section, which shall
include a third-party quality assurance
procedure.
(C) Use by appraiser.--If an energy efficiency
report is used under paragraph (2), the energy
efficiency report shall be provided to the appraiser to
estimate the energy efficiency of the subject property
and for potential adjustments for energy efficiency.
(4) Required disclosure to consumer for a home with an
energy efficiency report.--If an energy efficiency report is
used under paragraph (2), the guidelines to be issued under
paragraph (1) shall require the mortgagee to--
(A) inform the loan applicant of the expected
energy costs as estimated in the energy efficiency
report, in a manner and at a time as prescribed by the
Secretary, and if practicable, in the documents
delivered at the time of loan application; and
(B) include the energy efficiency report in the
documentation for the loan provided to the borrower.
(5) Required disclosure to consumer for a home without an
energy efficiency report.--If an energy efficiency report is
not used under paragraph (2), the guidelines to be issued under
paragraph (1) shall require the mortgagee to inform the loan
applicant in a manner and at a time as prescribed by the
Secretary, and if practicable, in the documents delivered at
the time of loan application of--
(A) typical energy cost savings that would be
possible from a cost-effective energy upgrade of a home
of the size and in the region of the subject property;
(B) the impact the typical energy cost savings
would have on monthly ownership costs of a typical
home;
(C) the impact on the size of a mortgage that could
be obtained if the typical energy cost savings were
reflected in an energy efficiency report; and
(D) resources for improving the energy efficiency
of a home.
(6) Pricing of loans.--
(A) In general.--A covered agency may price covered
loans originated under the enhanced loan eligibility
requirements required under this section in accordance
with the estimated risk of the loans.
(B) Imposition of certain material costs,
impediments, or penalties.--In the absence of a
publicly disclosed analysis that demonstrates
significant additional default risk or prepayment risk
associated with the loans, a covered agency shall not
impose material costs, impediments, or penalties on
covered loans merely because the loan uses an energy
efficiency report or the enhanced loan eligibility
requirements required under this section.
(7) Limitations.--
(A) In general.--A covered agency may price covered
loans originated under the enhanced loan eligibility
requirements required under this section in accordance
with the estimated risk of those loans.
(B) Prohibited actions.--A covered agency shall
not--
(i) modify existing underwriting criteria
or adopt new underwriting criteria that
intentionally negate or reduce the impact of
the requirements or resulting benefits that are
set forth or otherwise derived from the
enhanced loan eligibility requirements required
under this subsection; or
(ii) impose greater buy back requirements,
credit overlays, or insurance requirements,
including private mortgage insurance, on
covered loans merely because the loan uses an
energy efficiency report or the enhanced loan
eligibility requirements required under this
subsection.
(8) Applicability and implementation date.--Not later than
3 years after the date of enactment of this Act, and before
December 31, 2017, the enhanced loan eligibility requirements
required under this subsection shall be implemented by each
covered agency to--
(A) apply to any covered loan for the sale, or
refinancing of any loan for the sale, of any home;
(B) be available on any residential real property
(including individual units of condominiums and
cooperatives) that qualifies for a covered loan; and
(C) provide prospective mortgagees with sufficient
guidance and applicable tools to implement the required
underwriting methods.
(d) Enhanced Energy Efficiency Underwriting Valuation Guidelines.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall--
(A) in consultation with the Federal Financial
Institutions Examination Council and the advisory group
established in subsection (f)(2), develop and issue
guidelines for a covered agency to determine the
maximum permitted loan amount based on the value of the
property for all covered loans made on properties with
an energy efficiency report that meets the requirements
of subsection (c)(3)(B); and
(B) in consultation with the Secretary of Energy,
issue guidelines for a covered agency to determine the
estimated energy savings under paragraph (3) for
properties with an energy efficiency report.
(2) Requirements.--The enhanced energy efficiency
underwriting valuation guidelines required under paragraph (1)
shall include--
(A) a requirement that if an energy efficiency
report that meets the requirements of subsection
(c)(3)(B) is voluntarily provided to the mortgagee,
such report shall be used by the mortgagee or covered
agency to determine the estimated energy savings of the
subject property; and
(B) a requirement that the estimated energy savings
of the subject property be added to the appraised value
of the subject property by a mortgagee or covered
agency for the purpose of determining the loan-to-value
ratio of the subject property, unless the appraisal
includes the value of the overall energy efficiency of
the subject property, using methods to be established
under the guidelines issued under paragraph (1).
(3) Determination of estimated energy savings.--
(A) Amount of energy savings.--The amount of
estimated energy savings shall be determined by
calculating the difference between the estimated energy
costs for the average comparable houses, as determined
in guidelines to be issued under paragraph (1), and the
estimated energy costs for the subject property based
upon the energy efficiency report.
(B) Duration of energy savings.--The duration of
the estimated energy savings shall be based upon the
estimated life of the applicable equipment, consistent
with the rating system used to produce the energy
efficiency report.
(C) Present value of energy savings.--The present
value of the future savings shall be discounted using
the average interest rate on conventional 30-year
mortgages, in the manner directed by guidelines issued
under paragraph (1).
(4) Ensuring consideration of energy efficient features.--
Section 1110 of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 3339) is amended--
(A) in paragraph (2), by striking ``; and'' and
inserting a semicolon; and
(B) in paragraph (3), by striking the period at the
end and inserting ``; and'' and inserting after
paragraph (3) the following:
``(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.''.
(5) Transactions requiring state certified appraisers.--
Section 1113 of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 3342) is amended--
(A) in paragraph (1), by inserting before the
semicolon the following: ``, or any real property on
which the appraiser makes adjustments using an energy
efficiency report''; and
(B) in paragraph (2), by inserting after
``atypical'' the following: ``, or an appraisal on
which the appraiser makes adjustments using an energy
efficiency report.''.
(6) Protections.--
(A) Authority to impose limitations.--The
guidelines to be issued under paragraph (1) shall
include such limitations and conditions as determined
by the Secretary to be necessary to protect against
meaningful under or over valuation of energy cost
savings or duplicative counting of energy efficiency
features or energy cost savings in the valuation of any
subject property that is used to determine a loan
amount.
(B) Additional authority.--At the end of the 7-year
period following the implementation of enhanced
eligibility and underwriting valuation requirements
under this section, the Secretary may modify or apply
additional exceptions to the approach described in
paragraph (2), where the Secretary finds that the
unadjusted appraisal will reflect an accurate market
value of the efficiency of the subject property or that
a modified approach will better reflect an accurate
market value.
(7) Applicability and implementation date.--Not later than
3 years after the date of enactment of this Act, and before
December 31, 2017, each covered agency shall implement the
guidelines required under this subsection, which shall--
(A) apply to any covered loan for the sale, or
refinancing of any loan for the sale, of any home; and
(B) be available on any residential real property,
including individual units of condominiums and
cooperatives, that qualifies for a covered loan.
(e) Monitoring.--Not later than 1 year after the date on which the
enhanced eligibility and underwriting valuation requirements are
implemented under this section, and every year thereafter, each covered
agency with relevant activity shall issue and make available to the
public a report that--
(1) enumerates the number of covered loans of the agency
for which there was an energy efficiency report, and that used
energy efficiency appraisal guidelines and enhanced loan
eligibility requirements;
(2) includes the default rates and rates of foreclosures
for each category of loans; and
(3) describes the risk premium, if any, that the agency has
priced into covered loans for which there was an energy
efficiency report.
(f) Rulemaking.--
(1) In general.--The Secretary shall prescribe regulations
to carry out this section, in consultation with the Secretary
of Energy and the advisory group established in paragraph (2),
which may contain such classifications, differentiations, or
other provisions, and may provide for such proper
implementation and appropriate treatment of different types of
transactions, as the Secretary determines are necessary or
proper to effectuate the purposes of this section, to prevent
circumvention or evasion thereof, or to facilitate compliance
therewith.
(2) Advisory group.--To assist in carrying out this
section, the Secretary shall establish an advisory group,
consisting of individuals representing the interests of--
(A) mortgage lenders;
(B) appraisers;
(C) energy raters and residential energy
consumption experts;
(D) energy efficiency organizations;
(E) real estate agents;
(F) home builders and remodelers;
(G) State energy officials; and
(H) others as determined by the Secretary.
(g) Additional Study.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall reconvene the
advisory group established in subsection (f)(2), in addition to
water and locational efficiency experts, to advise the
Secretary on the implementation of the enhanced energy
efficiency underwriting criteria established in subsections (c)
and (d).
(2) Recommendations.--The advisory group established in
subsection (f)(2) shall provide recommendations to the
Secretary on any revisions or additions to the enhanced energy
efficiency underwriting criteria deemed necessary by the group,
which may include alternate methods to better account for home
energy costs and additional factors to account for substantial
and regular costs of homeownership such as location-based
transportation costs and water costs. The Secretary shall
forward any legislative recommendations from the advisory group
to Congress for its consideration.
Subtitle E--Voluntary Verification Programs for Air Conditioning,
Furnace, Boiler, Heat Pump, and Water Heater Products
SEC. 441. 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 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.''.
TITLE V--MISCELLANEOUS
SEC. 501. BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of complying
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the Chairman of the Senate Budget Committee, provided that
such statement has been submitted prior to the vote on passage.
SEC. 502. ADVANCE APPROPRIATIONS REQUIRED.
The 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.
<all>
Introduced in Senate
Introduced in Senate
Read twice and referred to the Committee on Energy and Natural Resources.
Committee on Energy and Natural Resources. Hearings held. Hearings printed: S.Hrg. 114-166.
Committee on Energy and Natural Resources. Ordered to be reported with amendments favorably.
Committee on Energy and Natural Resources. Reported by Senator Murkowski with amendments. With written report No. 114-130.
Committee on Energy and Natural Resources. Reported by Senator Murkowski with amendments. With written report No. 114-130.
Placed on Senate Legislative Calendar under General Orders. Calendar No. 210.
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