To increase the authorization of appropriations for low-income energy assistance, weatherization, and State energy conservation grant programs, to expand the use of energy savings performance contracts, and for other purposes.

Summary: Energy Emergency Response Act of 2001 - Amends the following Acts to provide increased funding through FY 2005 for energy programs: (1) the Low-Income Home Energy Assistance Act of 1981(for home energy grants); (2) the Energy Conservation and Production Act (for weatherization assistance); and (3) the Energy Policy and Conservation Act (for State energy conservation grants).Amends the National Energy Conservation Policy Act (NECPA) to: (1) mandate that each Federal agency undertake a comprehensive review of practicable measures for increasing energy and water conservation, and for using renewable energy sources; (2) allow as an approved benefit ancillary to an energy savings or performance contract those savings resulting from reduced operation and maintenance costs at replacement facilities; and (3) repeal the termination dates governing the authority to enter into energy savings performance contracts (thus extending such authority indefinitely).

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Energy Emergency Response Act of 
2001''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) high energy costs are causing hardship for families;
            (2) restructured energy markets have increased the need for 
        a higher and more consistent level of funding for low income 
        energy assistance programs;
            (3) conservation programs implemented by the States and the 
        low income weatherization program reduce costs and need for 
        additional energy supplies;
            (4) energy conservation is a cornerstone of national energy 
        security policy;
            (5) the Federal Government is the largest consumer of 
        energy in the economy of the United States; and
            (6) many opportunities exist for significant energy cost 
        savings within the Federal Government.
    (b) Purposes.--The purposes of this Act are to provide assistance 
to those individuals most affected by high energy prices and to promote 
and accelerate energy conservation investments in private and Federal 
facilities.

SEC. 3. INCREASED FUNDING FOR LIHEAP, WEATHERIZATION, AND STATE ENERGY 
              GRANTS.

    (a) LIHEAP.--Section 2602(b) of the Low-Income Home Energy 
Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended by striking the 
first sentence and inserting the following: ``There are authorized to 
be appropriated to carry out the provisions of this title (other than 
section 2607A), $3,400,000,000 for each of fiscal years 2001 through 
2005.''.
    (b) Weatherization Assistance.--Section 422 of the Energy 
Conservation and Production Act (42 U.S.C. 6872) is amended by striking 
``for fiscal years 1999 through 2003 such sums as may be necessary and 
inserting ``$310,000,000 for each of fiscal years 2001 through 2005''.
    (c) State Energy Conservation Grants.--Section 365(f) of the Energy 
Policy and Conservation Act (42 U.S.C. 6325(f)) is amended by striking 
``for fiscal years 1999 through 2003 such sums as may be necessary'' 
and inserting ``$75,000,000 for each of fiscal years 2001 through 
2005''.

SEC. 4. FEDERAL ENERGY MANAGEMENT REVIEWS.

    Section 543 of the National Energy Conservation Policy Act (42 
U.S.C. 8253) is amended by adding at the end the following:
    ``(e) Priority Response Reviews.--Each agency shall--
            ``(1) not later than October 1, 2001, undertake a 
        comprehensive review of all practicable measures for--
                    ``(A) increasing energy and water conservation, and
                    ``(B) using renewable energy sources; and
            ``(2) not later than 180 days after completing the review, 
        implement measures to achieve not less than 50 percent of the 
        potential efficiency and renewable savings identified in the 
        review.''.

SEC. 5. COST SAVINGS FROM REPLACEMENT FACILITIES.

    Section 801(a) of the National Energy Conservation Policy Act (42 
U.S.C. 8287(a)) is amended by adding at the end the following:
    ``(3)(A) In the case of an energy savings contract or energy 
savings performance contract providing for energy savings through the 
construction and operation of one or more buildings or facilities to 
replace one or more existing buildings or facilities, benefits 
ancillary to the purpose of such contract under paragraph (1) may 
include savings resulting from reduced costs of operation and 
maintenance at such replacement buildings or facilities when compared 
with costs of operation and maintenance at the buildings or facilities 
being replaced.
    ``(B) Notwithstanding paragraph (2)(B), aggregate annual payments 
by an agency under an energy savings contract or energy savings 
performance contract referred to in subparagraph (A) may take into 
account (through the procedures developed pursuant to this section) 
savings resulting from reduced costs of operation and maintenance as 
described in subparagraph (A).''.

SEC. 6. REPEAL OF ENERGY SAVINGS PERFORMANCE CONTRACT SUNSET.

    Section 801(c) of the National Energy Conservation Policy Act (42 
U.S.C. 8287(c)) is repealed.

SEC. 7. ENERGY SAVINGS PERFORMANCE CONTRACT DEFINITIONS.

    (a) Energy Savings.--Section 804(2) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to read as 
follows:
            ``(2) The term ``energy savings'' means a reduction in the 
        cost of energy or water, from a base cost established through a 
        methodology set forth in the contract, used in either--
                    ``(A) an existing federally owned building or 
                buildings or other federally owned facilities as a 
                result of--
                            ``(i) the lease or purchase of operating 
                        equipment, improvements, altered operation and 
                        maintenance, or technical services;
                            ``(ii) the increased efficient use of 
                        existing energy sources by cogeneration or heat 
                        recovery, excluding any cogeneration process 
                        for other than a federally owned building or 
                        buildings or other federally owned facilities; 
                        or
                            ``(iii) the increased efficient use of 
                        existing water sources; or
                    ``(B) a replacement facility under section 
                801(a)(3).''.
    (b) Energy Savings Contract.--Section 804(3) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287c(3)) is amended to read as 
follows:
            ``(3) The terms `energy savings contract' and `energy 
        savings performance contract' mean a contract which provides 
        for--
                    ``(A) the performance of services for the design, 
                acquisition, installation, testing, operation, and, 
                where appropriate, maintenance and repair, of an 
                identified energy or water conservation measure or 
                series of measures at one or more locations; or
                    ``(B) energy savings through the construction and 
                operation of one or more buildings or facilities to 
                replace one or more existing buildings or 
                facilities.''.
    (c) Energy or Water Conservation Measure.--Section 804(4) of the 
National Energy Conservation Policy Act (42 U.S.C. 8287c(4) is amended 
to read as follows:
            ``(4) The term `energy or water conservation measure' 
        means--
                    ``(A) an energy conservation measure, as defined in 
                section 551(4) (42 U.S.C. 8259(4)); or
                    ``(B) a water conservation measure that improves 
                water efficiency, is life cycle cost effective, and 
                involves water conservation, water recycling or reuse, 
                improvements in operation or maintenance efficiencies, 
                retrofit activities or other related activities, not at 
                a Federal hydroelectric facility.''.