99–010 

Calendar No. 151 

112TH CONGRESS REPORT " ! SENATE 1st Session 112–71 

ENERGY SAVINGS AND INDUSTRIAL 

COMPETITIVENESS ACT 

SEPTEMBER 6, 2011.—Ordered to be printed 

Mr. BINGAMAN, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany S. 1000] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (S. 1000) to promote energy savings in residential 

and commercial buildings and industry, and for other purposes, 

having considered the same, reports favorably thereon with an 

amendment and recommends that the bill, as amended, do pass. 

The amendment is as follows: 

Strike out all after the enacting clause and insert in lieu thereof 

the following: 

TITLE I—BUILDINGS 

Subtitle A—Building Energy Codes 

SEC. 101. GREATER ENERGY EFFICIENCY IN BUILDING CODES. 

(a) IN GENERAL.—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) UPDATING NATIONAL MODEL BUILDING ENERGY CODES.— 

‘‘(1) IN GENERAL.—The Secretary shall— 

‘‘(A) support the development of national model building energy codes, including the updating of ASHRAE and IECC model building energy codes 

and standards; 

‘‘(B) encourage and support the adoption of building energy codes by 

States, Indian tribes, and, as appropriate, by local governments that meet 

or exceed the national model building energy codes, or achieve equivalent 

or greater energy savings; and 

‘‘(C) support full compliance with the State and local codes. 

‘‘(2) TARGETS.— 


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‘‘(A) IN GENERAL.—The Secretary shall support the updating of the national model building energy codes for residential buildings and commercial 

buildings to enable the achievement of energy savings targets established 

under subparagraph (B). 

‘‘(B) TARGETS.— ‘‘(i) 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 national 

model building energy codes by establishing 1 or more aggregate energy savings targets to achieve the purposes of this section. 

‘‘(ii) SEPARATE TARGETS.—The Secretary may establish separate targets for commercial and residential buildings. 

‘‘(iii) BASELINES.—The baseline for updating national model codes 

shall be the 2009 IECC for residential buildings and ASHRAE Standard 90.1–2010 for commercial buildings. 

‘‘(iv) 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— 

‘‘(aa) is at the maximum level of energy efficiency that is 

technologically feasible and life-cycle cost effective, while accounting for the economic considerations under subparagraph 

(D); 

‘‘(bb) is higher than the preceding target; and 

‘‘(cc) 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 subclause (I), prior 

to the applicable year, the Secretary may set a different target year 

for any of model codes described in clause (i) if the Secretary determines that a higher target cannot be met. 

‘‘(IV) SMALL BUSINESS.—When establishing targets under this 

subparagraph 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). 

‘‘(C) APPLIANCE STANDARDS AND OTHER FACTORS AFFECTING BUILDING ENERGY USE.—In establishing building code targets under subparagraph (B), 

the Secretary shall develop and adjust the targets in recognition of potential savings and costs relating to— 

‘‘(i) efficiency gains made in appliances, lighting, windows, insulation, 

and building envelope sealing; 

‘‘(ii) advancement of distributed generation and on-site renewable 

power generation technologies; 

‘‘(iii) equipment improvements for heating, cooling, and ventilation 

systems; 

‘‘(iv) building management systems and SmartGrid technologies to reduce energy use; and 

‘‘(v) other technologies, practices, and building systems that the Secretary considers appropriate regarding building plug load and other energy uses. 

‘‘(D) ECONOMIC CONSIDERATIONS.—In establishing and revising building 

code targets under subparagraph (B), 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. 

‘‘(3) TECHNICAL ASSISTANCE TO MODEL CODE-SETTING AND STANDARD DEVELOPMENT ORGANIZATIONS.— 

‘‘(A) IN GENERAL.—The Secretary shall, on a timely basis, provide technical assistance to model code-setting and standard development organizations. 

‘‘(B) ASSISTANCE.—The assistance shall include, as requested by the organizations, technical assistance in— 

‘‘(i) evaluating code or standards proposals or revisions; 

‘‘(ii) building energy analysis and design tools; 


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‘‘(iii) building demonstrations; 

‘‘(iv) developing definitions of energy use intensity and building types 

for use in model codes and standards or in evaluating the efficiency impacts of the codes and standards; 

‘‘(v) performance-based standards; 

‘‘(vi) evaluating economic considerations under paragraph (2)(D); and 

‘‘(vii) developing model codes by Indian tribes in accordance with tribal law. 

‘‘(C) AMENDMENT PROPOSALS.—The Secretary may submit timely code and 

standard amendment proposals to the model code-setting and standard development organizations, with supporting evidence, sufficient to enable the 

model building energy codes and standards to meet the targets established 

under paragraph (2)(B). 

‘‘(D) 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. 

‘‘(4) DETERMINATION AND ESTABLISHMENT.— ‘‘(A) REVISION OF MODEL BUILDING CODES AND STANDARDS.—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 1 year after the date of the revision, on whether the revision 

will— 

‘‘(i) improve energy efficiency in buildings compared to the existing 

national model building energy code; and 

‘‘(ii) meet the applicable targets under paragraph (2)(B). 

‘‘(B) CODES OR STANDARDS NOT MEETING TARGETS.— 

‘‘(i) IN GENERAL.—If the Secretary makes a preliminary determination under subparagraph (A)(ii) that a code or standard does not meet 

the targets established under paragraph (2)(B), the Secretary may at 

the same time provide the model code or standard developer with proposed changes that would result in a model code that meets the targets 

and with supporting evidence, taking into consideration— 

‘‘(I) whether the modified code is technically feasible and lifecycle cost effective; 

‘‘(II) available appliances, technologies, materials, and construction practices; and 

‘‘(III) the economic considerations under paragraph (2)(D). 

‘‘(ii) INCORPORATION OF CHANGES.— 

‘‘(I) IN GENERAL.—On receipt of the proposed changes, the model 

code or standard developer shall have an additional 180 days to incorporate changes into the model code or standard. 

‘‘(II) FINAL DETERMINATION.—A final determination under subparagraph (A) shall be on the modified model code or standard. 

‘‘(C) POSITIVE DETERMINATIONS.—If the Secretary makes positive final determinations under clauses (i) and (ii) of subparagraph (A) or under clause 

(i) of subparagraph (A) if the applicable target has not been established, the 

revised IECC or ASHRAE Standard 90.1 shall be established as the relevant national model building energy code. 

‘‘(D) ESTABLISHMENT BY SECRETARY.— 

‘‘(i) IN GENERAL.—If the Secretary makes a negative final determination under subparagraph (A)(ii), the Secretary shall at the same time 

establish a modified national model building energy code. 

‘‘(ii) CODES OR STANDARDS NOT UPDATED.—If the IECC or ASHRAE 

Standard 90.1 is not revised by a target date under paragraph (2), the 

Secretary shall, not later than 90 days after the target date, issue a 

draft of, and not later than 1 year after the target date, establish, a 

modified national model building energy code. 

‘‘(iii) REQUIREMENTS.—Any national model building energy code established under this subparagraph shall— 

‘‘(I) meet the targets established under paragraph (2); 

‘‘(II) achieve the maximum level of energy savings that is technologically feasible and life-cycle cost-effective, while accounting for 

the economic considerations under paragraph (2)(D); 

‘‘(III) be based on the latest edition of the IECC or ASHRAE 

Standard 90.1, including any subsequent amendments, addenda, or 

additions, but may also consider other model codes or standards; 

and 


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‘‘(IV) observe and protect the intellectual property rights of nationally recognized code and standards developers. 

‘‘(5) ADMINISTRATION.—In carrying out this section, the Secretary shall— 

‘‘(A) publish notice of targets, determinations, and national model building energy codes 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 

‘‘(B) provide an opportunity for public comment on targets, determinations, and national model building energy codes under this section. 

‘‘(b) STATE AND INDIAN TRIBE CERTIFICATION OF BUILDING ENERGY CODE UP- DATES.— 

‘‘(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 national model building energy code is established or revised under subsection 

(a), each State and Indian tribe shall certify whether or not the State and 

Indian tribe, respectively, has reviewed and updated the energy provisions 

of the building code of the State and Indian tribe, respectively. 

‘‘(B) DEMONSTRATION.—The certification shall include a demonstration of 

whether or not the code provisions that are in effect throughout the State 

and Indian tribe— 

‘‘(i) meet or exceed the revised model code; or 

‘‘(ii) achieve equivalent or greater energy savings. 

‘‘(C) NO MODEL CODE UPDATE.—If the Secretary fails to revise a national 

model building energy code by the date specified in subsection (a)(4), each 

State and Indian tribe shall, not later than 2 years after the specified date, 

certify whether or not the State and Indian tribe, respectively, has reviewed 

and updated the energy provisions of the building code of the State and Indian tribe, respectively, to meet or exceed the target in subsection (a)(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 national 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 national 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— 


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‘‘(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 MEET TARGETS.— ‘‘(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.—Any State or Indian tribe for which the Secretary 

has not accepted a certification by a deadline under subsection (b) or (c) may 

be ineligible 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 accepted 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 national 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 subsection (a)(2)(B). 

‘‘(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 requirements of this section, including procedures and technical analysis for States and Indian tribes— 

‘‘(1) to demonstrate that the code provisions of the States and Indian tribes 

achieve equivalent or greater energy savings than the national model building 

energy codes; 

‘‘(2) to document the rate of compliance with a building energy code; and 

‘‘(3) to improve and implement State residential and commercial building energy codes or 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 accepted 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 in eligible under this section. 


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‘‘(3) TRAINING.—Of the amounts made available under this subsection, the 

State 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 national 

model building energy codes; and 

‘‘(B) to meet targets under subsection (a)(2), 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) VOLUNTARY CODES AND STANDARDS.—Nothwithstanding any other provision of 

this section, any model building code or standard established under this section 

shall not be binding on a State, local government, or Indian tribe as a matter of 

Federal law. 

‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated 

to carry out this section $200,000,000, to remain available until expended.’’. 

(b) DEFINITION OF IECC.—Section 303 of the Energy Conservation and Production 

Act (42 U.S.C. 6832) is amended 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).’’. 

(c) CONFORMING AMENDMENT.—Section 307 of the Energy Conservation and Production Act (42 U.S.C. 6836) is repealed. 

Subtitle B—Worker Training and Capacity 

Building 

SEC. 111. BUILDING TRAINING AND ASSESSMENT CENTERS. 

(a) IN GENERAL.—The Secretary of Energy 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; 


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(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 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. 

TITLE II—BUILDING EFFICIENCY FINANCE 

SEC. 201. LOAN PROGRAM FOR ENERGY EFFICIENCY UPGRADES TO EXISTING BUILDINGS. 

Title XVII of the Energy Policy Act of 2005 (42 U.S.C. 16511 et seq.) is amended 

by adding at the end the following: 

‘‘SEC. 1706. BUILDING RETROFIT FINANCING PROGRAM. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) CREDIT SUPPORT.—The term ‘credit support’ means a guarantee or commitment to issue a guarantee or other forms of credit enhancement to ameliorate risks for efficiency obligations. 

‘‘(2) EFFICIENCY OBLIGATION.—The term ‘efficiency obligation’ means a debt or 

repayment obligation incurred in connection with financing a project, or a portfolio of such debt or payment obligations. 

‘‘(3) PROJECT.—The term ‘project’ means the installation and implementation 

of efficiency, advanced metering, distributed generation, or renewable energy 

technologies and measures in a building (or in multiple buildings on a given 

property) that are expected to increase the energy efficiency of the building (including fixtures) in accordance with criteria established by the Secretary. 

‘‘(b) ELIGIBLE PROJECTS.— 

‘‘(1) IN GENERAL.—Notwithstanding sections 1703 and 1705, the Secretary 

may provide credit support under this section, in accordance with section 1702. 

‘‘(2) INCLUSIONS.—Buildings eligible for credit support under this section include commercial, multifamily residential, industrial, municipal, government, 

institution of higher education, school, and hospital facilities that satisfy criteria established by the Secretary. 

‘‘(c) GUIDELINES.— 

‘‘(1) IN GENERAL.—Not later than 180 days after the date of enactment of this 

section, the Secretary shall— 

‘‘(A) establish guidelines for credit support provided under this section; 

and 

‘‘(B) publish the guidelines in the Federal Register; and 

‘‘(C) provide for an opportunity for public comment on the guidelines. 

‘‘(2) REQUIREMENTS.—The guidelines established by the Secretary under this 

subsection shall include— 

‘‘(A) standards for assessing the energy savings that could reasonably be 

expected to result from a project; 

‘‘(B) examples of financing mechanisms (and portfolios of such financing 

mechanisms) that qualify as efficiency obligations; 

‘‘(C) the threshold levels of energy savings that a project, at the time of 

issuance of credit support, shall be reasonably expected to achieve to be eligible for credit support; 

‘‘(D) the eligibility criteria the Secretary determines to be necessary for 

making credit support available under this section; and 

‘‘(E) notwithstanding subsections (d)(3) and (g)(2)(B) of section 1702, any 

lien priority requirements that the Secretary determines to be necessary, in 

consultation with the Director of the Office of Management and Budget, 

which may include— 

‘‘(i) mechanisms to preserve prior lien positions of mortgage lenders 

and other creditors in buildings eligible for credit support; 

‘‘(ii) remedies available to the Secretary under chapter 176 of title 28, 

United States Code, in the event of default on the efficiency obligation 

by the borrower; and 


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‘‘(iii) measures to limit the exposure of the Secretary to financial risk 

in the event of default, such as— 

‘‘(I) the collection of a credit subsidy fee from the borrower as a 

loan loss reserve, taking into account the limitation on credit support under subsection (d); 

‘‘(II) minimum debt-to-income levels of the borrower; 

‘‘(III) minimum levels of value relative to outstanding mortgage 

or other debt on a building eligible for credit support; 

‘‘(IV) allowable thresholds for the percent of the efficiency obligation relative to the amount of any mortgage or other debt on an 

eligible building; 

‘‘(V) analysis of historic and anticipated occupancy levels and 

rental income of an eligible building; 

‘‘(VI) requirements of third-party contractors to guarantee energy 

savings that will result from a retrofit project, and whether financing on the efficiency obligation will amortize from the energy savings; 

‘‘(VII) requirements that the retrofit project incorporate protocols 

to measure and verify energy savings; and 

‘‘(VIII) recovery of payments equally by the Secretary and the 

retrofit. 

‘‘(3) EFFICIENCY OBLIGATIONS.—The financing mechanisms qualified by the 

Secretary under paragraph (2)(B) may include— 

‘‘(A) loans, including loans made by the Federal Financing Bank; 

‘‘(B) power purchase agreements, including energy efficiency power purchase agreements; 

‘‘(C) energy services agreements, including energy performance contracts; 

‘‘(D) property assessed clean energy bonds and other tax assessmentbased financing mechanisms; 

‘‘(E) aggregate on-meter agreements that finance retrofit projects; and 

‘‘(F) any other efficiency obligations the Secretary determines to be appropriate. 

‘‘(4) PRIORITIES.—In carrying out this section, the Secretary shall prioritize— 

‘‘(A) the maximization of energy savings with the available credit support 

funding; 

‘‘(B) the establishment of a clear application and approval process that allows private building owners, lenders, and investors to reasonably expect to 

receive credit support for projects that conform to guidelines; 

‘‘(C) the distribution of projects receiving credit support under this section 

across States or geographical regions of the United States; and 

‘‘(D) projects designed to achieve whole-building retrofits. 

‘‘(d) LIMITATION.—Notwithstanding section 1702(c), the Secretary shall not issue 

credit support under this section in an amount that exceeds— 

‘‘(1) 90 percent of the principal amount of the efficiency obligation that is the 

subject of the credit support; or 

‘‘(2) $10,000,000 for any single project. 

‘‘(e) AGGREGATION OF PROJECTS.—To the extent provided in the guidelines developed in accordance with subsection (c), the Secretary may issue credit support on 

a portfolio, or pool of projects, that are not required to be geographically contiguous, 

if each efficiency obligation in the pool fulfills the requirements described in this 

section. 

‘‘(f) APPLICATION.— 

‘‘(1) IN GENERAL.—To be eligible to receive credit support under this section, 

the applicant shall submit to the Secretary an application at such time, in such 

manner, and containing such information as the Secretary determines to be necessary. 

‘‘(2) CONTENTS.—An application submitted under this section shall include assurances by the applicant that— 

‘‘(A) each contractor carrying out the project meets minimum experience 

level criteria, including local retrofit experience, as determined by the Secretary; 

‘‘(B) the project is reasonably expected to achieve energy savings, as set 

forth in the application using any methodology that meets the standards 

described in the program guidelines; 

‘‘(C) the project meets any technical criteria described in the program 

guidelines; 

‘‘(D) the recipient of the credit support and the parties to the efficiency 

obligation will provide the Secretary with— 


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‘‘(i) any information the Secretary requests to assess the energy savings that result from the project, including historical energy usage 

data, a simulation-based benchmark, and detailed descriptions of the 

building work, as described in the program guidelines; and 

‘‘(ii) permission to access information relating to building operations 

and usage for the period described in the program guidelines; and 

‘‘(E) any other assurances that the Secretary determines to be necessary. 

‘‘(3) DETERMINATION.—Not later than 90 days after receiving an application, 

the Secretary shall make a final determination on the application, which may 

include requests for additional information. 

‘‘(g) FEES.— 

‘‘(1) IN GENERAL.—In addition to the fees required by section 1702(h)(1), the 

Secretary may charge reasonable fees for credit support provided under this section. 

‘‘(2) AVAILABILITY.—Fees collected under this section shall be subject to section 1702(h)(2). 

‘‘(h) UNDERWRITING.—The Secretary may delegate the underwriting activities 

under this section to 1 or more entities that the Secretary determines to be qualified. 

‘‘(i) REPORT.—Not later than 1 year after commencement of the program, the Secretary shall submit to the appropriate committees of Congress a report that describes in reasonable detail— 

‘‘(1) the manner in which this section is being carried out; 

‘‘(2) the number and type of projects supported; 

‘‘(3) the types of funding mechanisms used to provide credit support to 

projects; 

‘‘(4) the energy savings expected to result from projects supported by this section; 

‘‘(5) any tracking efforts the Secretary is using to calculate the actual energy 

savings produced by the projects; and 

‘‘(6) any plans to improve the tracking efforts described in paragraph (5). 

‘‘(j) FUNDING.— 

‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to the Secretary to carry out this section $400,000,000 for the period of 

fiscal years 2012 through 2021, to remain available until expended. 

‘‘(2) ADMINISTRATIVE COSTS.—Not more than 1 percent of any amounts made 

available to the Secretary under paragraph (1) may be used by the Secretary 

for administrative costs incurred in carrying out this section.’’. 

TITLE III—INDUSTRIAL EFFICIENCY AND 

COMPETITIVENESS 

Subtitle A—Manufacturing Energy Efficiency 

SEC. 301. STATE PARTNERSHIP INDUSTRIAL ENERGY EFFICIENCY REVOLVING LOAN PROGRAM. 

Section 399A of the Energy Policy and Conservation Act (42 U.S.C. 6371h–1) is 

amended— 

(1) in the section heading, by inserting ‘‘AND INDUSTRY’’ before the period 

at the end; 

(2) by redesignating subsections (h) and (i) as subsections (i) and (j), respectively; and 

(3) by inserting after subsection (g) the following: 

‘‘(h) STATE PARTNERSHIP INDUSTRIAL ENERGY EFFICIENCY REVOLVING LOAN PROGRAM.— 

‘‘(1) IN GENERAL.—The Secretary shall carry out a program under which the 

Secretary shall provide grants to eligible lenders to pay the Federal share of 

creating a revolving loan program under which loans are provided to commercial and industrial manufacturers to implement commercially available technologies or processes that significantly— 

‘‘(A) reduce systems energy intensity, including the use of energy-intensive feedstocks; and 

‘‘(B) improve the industrial competitiveness of the United States. 

‘‘(2) ELIGIBLE LENDERS.—To be eligible to receive cost-matched Federal funds 

under this subsection, a lender shall— 


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‘‘(A) be a community and economic development lender that the Secretary 

certifies meets the requirements of this subsection; 

‘‘(B) lead a partnership that includes participation by, at a minimum— 

‘‘(i) a State government agency; and 

‘‘(ii) a private financial institution or other provider of loan capital; 

‘‘(C) submit an application to the Secretary, and receive the approval of 

the Secretary, for cost-matched Federal funds to carry out a loan program 

described in paragraph (1); and 

‘‘(D) ensure that non-Federal funds are provided to match, on at least a 

dollar-for-dollar basis, the amount of Federal funds that are provided to 

carry out a revolving loan program described in paragraph (1). 

‘‘(3) AWARD.—The amount of cost-matched Federal funds provided to an eligi- ble lender shall not exceed $100,000,000 for any fiscal year. 

‘‘(4) RECAPTURE OF AWARDS.— ‘‘(A) IN GENERAL.—An eligible lender that receives an award under paragraph (1) shall be required to repay to the Secretary an amount of costmatch Federal funds, as determined by the Secretary under subparagraph 

(B), if the eligible lender is unable or unwilling to operate a program described in this subsection for a period of not less than 10 years beginning 

on the date on which the eligible lender first receives funds made available 

through the award. 

‘‘(B) DETERMINATION BY SECRETARY.—The Secretary shall determine the 

amount of cost-match Federal funds that an eligible lender shall be required to repay to the Secretary under subparagraph (A) based on the consideration by the Secretary of— 

‘‘(i) the amount of non-Federal funds matched by the eligible lender; 

‘‘(ii) the amount of loan losses incurred by the revolving loan program 

described in paragraph (1); and 

‘‘(iii) any other appropriate factor, as determined by the Secretary. 

‘‘(C) USE OF RECAPTURED COST-MATCH FEDERAL FUNDS.—The Secretary 

may distribute to eligible lenders under this subsection each amount received by the Secretary under this paragraph. 

‘‘(5) ELIGIBLE PROJECTS.—A program for which cost-matched Federal funds 

are provided under this subsection shall be designed to accelerate the implementation of industrial and commercial applications of technologies or processes 

(including distributed generation, applications or technologies that use sensors, 

meters, software, and information networks, controls, and drives or that have 

been installed pursuant to an energy savings performance contract, project, or 

strategy) that— 

‘‘(A) improve energy efficiency, including improvements in efficiency and 

use of water, power factor, or load management; 

‘‘(B) enhance the industrial competitiveness of the United States; and 

‘‘(C) achieve such other goals as the Secretary determines to be appropriate. 

‘‘(6) EVALUATION.—The Secretary shall evaluate applications for cost-matched 

Federal funds under this subsection on the basis of— 

‘‘(A) the description of the program to be carried out with the costmatched Federal funds; 

‘‘(B) the commitment to provide non-Federal funds in accordance with 

paragraph (2)(D); 

‘‘(C) program sustainability over a 10-year period; 

‘‘(D) the capability of the applicant; 

‘‘(E) the quantity of energy savings or energy feedstock minimization; 

‘‘(F) the advancement of the goal under this Act of 25-percent energy 

avoidance; 

‘‘(G) the ability to fund energy efficient projects not later than 120 days 

after the date of the grant award; and 

‘‘(H) such other factors as the Secretary determines appropriate. 

‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appro- priated to carry out this subsection, $400,000,000 for each of fiscal years 2012 

through 2021.’’. 

SEC. 302. COORDINATION OF RESEARCH AND DEVELOPMENT OF ENERGY EFFICIENT TECHNOLOGIES FOR INDUSTRY. 

(a) IN GENERAL.—As part of the research and development activities of the Industrial Technologies Program of the Department of Energy, the Secretary shall establish, as appropriate, collaborative research and development partnerships with other 

programs within the Office of Energy Efficiency and Renewable Energy (including 

the Building Technologies Program), the Office of Electricity Delivery and Energy 

Reliability, and the Office of Science that— 


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(1) leverage the research and development expertise of those programs to promote early stage energy efficiency technology development; 

(2) support the use of innovative manufacturing processes and applied research for development, demonstration, and commercialization of new technologies and processes to improve efficiency (including improvements in efficient 

use of water), reduce emissions, reduce industrial waste, and improve industrial 

cost-competitiveness; and 

(3) apply the knowledge and expertise of the Industrial Technologies Program 

to help achieve the program goals of the other programs. 

(b) REPORTS.—Not later than 2 years after the date of enactment of this Act and 

biennially thereafter, the Secretary shall submit to Congress a report that describes 

actions taken to carry out subsection (a) and the results of those actions. 

SEC. 303. ENERGY EFFICIENT TECHNOLOGIES ASSESSMENT. 

(a) IN GENERAL.—Not later than 60 days after the date of enactment of this Act, 

the Secretary shall commence an assessment of commercially available, cost competitive energy efficiency technologies that are not widely implemented within the 

United States for the energy-intensive industries of— 

(1) steel; 

(2) aluminum; 

(3) forest and paper products; 

(4) food processing; 

(5) metal casting; 

(6) glass; 

(7) chemicals; 

(8) petroleum refining; 

(9) cement; 

(10) industrial gases; 

(11) information and communication technologies; and 

(12) other industries that (as determined by the Secretary)— 

(A) use large quantities of energy; 

(B) emit large quantities of greenhouse gases; or 

(C) use a rapidly increasing quantity of energy. 

(b) REPORT.—Not later than 1 year after the date of enactment of this Act, the 

Secretary shall publish a report, in collaboration with affected energy-intensive industries, based on the assessment conducted under subsection (a), that contains— 

(1) a detailed inventory describing the cost, energy, and greenhouse gas emission savings of each technology described in subsection (a); 

(2) for each technology, the total cost, energy, water, and greenhouse gas 

emissions savings if the technology is implemented throughout the industry of 

the United States; 

(3) for each industry, an assessment of total possible cost, energy, and greenhouse gas emissions savings possible if state-of-the art, cost-competitive, commercial energy efficiency technologies were adopted; 

(4) for each industry, a comparison to the European Union, Japan, and other 

appropriate countries of energy efficiency technology adoption rates, as determined by the Secretary, including an examination of the policy structures in 

those countries that promote investments in energy efficiency technologies; 

(5) recommendations on how to create and retain jobs in the United States 

through private sector collaboration of energy service providers and energy-intensive industries; and 

(6) an assessment of energy savings available from increased use of recycled 

material in energy-intensive manufacturing processes. 

SEC. 304. 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 (3): 

‘‘(5) ENERGY SERVICE PROVIDER.—The term ‘energy service provider’ means 

any private company or similar entity providing technology or services to improve energy efficiency in an energy-intensive industry.’’. 

(c) INDUSTRY-SPECIFIC ROAD MAPS.—Section 452(c)(2) of the Energy Independence 

and Security Act of 2007 (42 U.S.C. 17111(c)(2)) is amended— 

(1) in subparagraph (E), by striking ‘‘and’’ at the end; 

(2) by redesignating subparagraph (F) as subparagraph (G); and 


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(3) by inserting after subparagraph (E) the following: 

‘‘(F) research to establish (through the Industrial Technologies Program 

and in collaboration with energy-intensive industries) a road map process 

under which— 

‘‘(i) industry-specific studies are conducted to determine the intensity 

of energy use, greenhouse gas emissions, and waste and operating 

costs, by process and subprocess; 

‘‘(ii) near-, mid-, and long-term targets of opportunity are established 

for synergistic improvements in efficiency, sustainability, and resilience; and 

‘‘(iii) public-private actionable plans are created to achieve roadmap 

goals; and’’. 

(d) INDUSTRIAL RESEARCH AND ASSESSMENT CENTERS.— (1) IN GENERAL.—Section 452(e) of the Energy Independence and Security Act 

of 2007 (42 U.S.C. 17111(e)) is amended— 

(A) by redesignating paragraphs (1) through (5) as subparagraphs (A) 

through (E), respectively, and indenting appropriately; 

(B) by striking ‘‘The Secretary’’ and inserting the following: 

‘‘(1) IN GENERAL.—The Secretary’’; 

(C) in subparagraph (A) (as redesignated by subparagraph (A)), 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 

(D) by adding at the end the following: 

‘‘(2) CENTERS OF EXCELLENCE.— 

‘‘(A) IN GENERAL.—The Secretary shall establish a Center of Excellence 

at up to 10 of the highest performing industrial research and assessment 

centers, as determined by the Secretary. 

‘‘(B) DUTIES.—A Center of Excellence shall coordinate with and advise the 

industrial research and assessment centers located in the region of the Center of Excellence. 

‘‘(C) FUNDING.—Subject to the availability of appropriations, of the funds 

made available under subsection (f), the Secretary shall use to support each 

Center of Excellence not less than $500,000 for fiscal year 2012 and each 

fiscal year thereafter, as determined by the Secretary. 

‘‘(3) EXPANSION OF CENTERS.—The Secretary shall provide funding to establish additional industrial research and assessment centers at institutions of 

higher education that do not have industrial research and assessment centers 

established under paragraph (1), taking into account the size of, and potential 

energy efficiency savings for, the manufacturing base within the region of the 

proposed center. 

‘‘(4) 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. 

‘‘(5) 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) a full-time equivalent employee at each center of excellence whose 

primary mission shall be to coordinate and leverage the efforts of the center 

with— 

‘‘(i) Federal and State efforts; 

‘‘(ii) the efforts of utilities and energy service providers; 


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‘‘(iii) the efforts of regional energy efficiency organizations; and 

‘‘(iv) the efforts of other centers in the region of the center of excellence. 

‘‘(6) 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. 

‘‘(C) FUNDING.—Subject to the availability of appropriations, of the funds 

made available under subsection (f), the Secretary shall use to carry out 

this paragraph not less than $5,000,000 for fiscal year 2012 and each fiscal 

year thereafter. 

‘‘(7) SMALL BUSINESS LOANS.—The Administrator of the Small Business Administration shall, to the maximum 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).’’. 

SEC. 305. 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 Industrial Technologies Program of the Department of Energy, the Secretary shall carry out a sustainable manufacturing initiative 

under which 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 

or processes that improve energy efficiency. 

‘‘(c) RESEARCH AND DEVELOPMENT PROGRAM FOR SUSTAINABLE MANUFACTURING

AND INDUSTRIAL TECHNOLOGIES AND PROCESSES.—As part of the Industrial Technologies Program 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 systems, reduce pollution, and conserve 

natural resources. 

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be to carry out 

this section $10,000,000 for the period of fiscal years 2012 through 2021.’’. 

(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. 306. STUDY OF ADVANCED ENERGY TECHNOLOGY MANUFACTURING CAPABILITIES IN 

THE UNITED STATES. 

(a) IN GENERAL.—Not later than 60 days after the date of enactment of this Act, 

the Secretary shall enter into an arrangement with the National Academy of 

Sciences under which the Academy shall conduct a study of the development of advanced manufacturing capabilities for various energy technologies, including— 

(1) an assessment of the manufacturing supply chains of established and 

emerging industries; 

(2) an analysis of— 

(A) the manner in which supply chains have changed over the 25-year period ending on the date of enactment of this Act; 

(B) current trends in supply chains; and 

(C) the energy intensity of each part of the supply chain and opportunities for improvement; 

(3) for each technology or manufacturing sector, an analysis of which sections 

of the supply chain are critical for the United States to retain or develop to be 

competitive in the manufacturing of the technology; 


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(4) an assessment of which emerging energy technologies the United States 

should focus on to create or enhance manufacturing capabilities; and 

(5) recommendations on leveraging the expertise of energy efficiency and renewable energy user facilities so that best materials and manufacturing practices are designed and implemented. 

(b) REPORT.—Not later than 2 years after the date on which the Secretary enters 

into the agreement with the Academy described in subsection (a), the Academy shall 

submit to the Committee on Energy and Natural Resources of the Senate, the Committee on Energy and Commerce of the House of Representatives, and the Secretary 

a report describing the results of the study required under this section, including 

any findings and recommendations. 

SEC. 307. INDUSTRIAL TECHNOLOGIES STEERING COMMITTEE. 

The Secretary shall establish an advisory steering committee that includes national trade associations representing energy-intensive industries or energy service 

providers to provide recommendations to the Secretary on planning and implementation of the Industrial Technologies Program of the Department of Energy. 

Subtitle B—Supply Star 

SEC. 311. SUPPLY STAR. 

Part B of title III of the Energy Policy and Conservation Act (42 U.S.C. 6291) 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. 


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‘‘(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 IMPACT ON CLIMATE CHANGE.—For purposes of this section, the 

impact on climate change shall not be a factor in determining supply chain efficiency. 

‘‘(h) 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. 

‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this section $10,000,000 for the period of fiscal years 2012 through 

2021.’’. 

Subtitle C—Electric Motor Rebate Program 

SEC. 321. ENERGY SAVING MOTOR CONTROL REBATE PROGRAM. 

(a) ESTABLISHMENT.—Not later than January 1, 2012, the Secretary of Energy (referred to in this section as the ‘‘Secretary’’) shall establish a program to provide rebates for expenditures made by entities for the purchase and installation of a new 

constant speed electric motor control that reduces motor energy use by not less than 

5 percent. 

(b) REQUIREMENTS.— 

(1) APPLICATION.—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— 

(A) demonstrated evidence that the entity purchased a constant speed 

electric motor control that reduces motor energy use by not less than 5 percent; and 

(B) the physical nameplate of the installed motor of the entity to which 

the energy saving motor control is attached. 

(2) AUTHORIZED AMOUNT OF REBATE.—The Secretary may provide to an entity 

that meets the requirements of paragraph (1) a rebate the amount of which 

shall be equal to the product obtained by multiplying— 

(A) the nameplate horsepower of the electric motor to which the energy 

saving motor control is attached; and 

(B) $25. 

(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated 

to carry out this section $5,000,000 for each of fiscal years 2012 and 2013, to remain 

available until expended. 

Subtitle D—Transformer Rebate Program 

SEC. 331. ENERGY EFFICIENT TRANSFORMER REBATE PROGRAM. 

(a) DEFINITION OF QUALIFIED TRANSFORMER.—In this section, the term ‘‘qualified 

transformer’’ means a transformer that meets or exceeds the National Electrical 

Manufacturers Association (NEMA) Premium Efficiency designation, calculated to 2 

decimal points, as having 30 percent fewer losses than the NEMA TP-1-2002 efficiency standard for a transformer of the same number of phases and capacity, as 

measured in kilovolt-amperes. 

(b) ESTABLISHMENT.—Not later than January 1, 2012, the Secretary of Energy (referred to in this section as the ‘‘Secretary’’) shall establish a program to provide rebates for expenditures made by owners of commercial buildings and multifamily residential buildings for the purchase and installation of a new energy efficient transformers. 

(c) REQUIREMENTS.— 

(1) APPLICATION.—To be eligible to receive a rebate under this section, an 

owner 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 that the owner purchased a qualified transformer. 

(2) AUTHORIZED AMOUNT OF REBATE.—For qualified transformers, rebates, in 

dollars per kilovolt-ampere (referred to in this paragraph as ‘‘kVA’’) shall be— 

(A) for 3-phase transformers— 

(i) with a capacity of not greater than 10 kVA, $15; 


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(ii) with a capacity of not less than 10 kVA and not greater than 100 

kVA, the difference between 15 and the quotient obtained by dividing— 

(I) the difference between— 

(aa) the capacity of the transformer in kVA; and 

(bb) 10; by 

(II) 9; and 

(iii) with a capacity greater than or equal to 100 kVA, $5; and 

(B) for single-phase transformers, 75 percent of the rebate for a 3-phase 

transformer of the same capacity. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated 

to carry out this section $5,000,000 for each of fiscal years 2012 and 2013, to remain 

available until expended. 

TITLE IV—FEDERAL AGENCY ENERGY 

EFFICIENCY 

SEC. 401. ADOPTION OF PERSONAL COMPUTER POWER SAVINGS TECHNIQUES BY FEDERAL 

AGENCIES. 

(a) IN GENERAL.—Not later than 360 days after the date of enactment of this Act, 

the Secretary of Energy, in consultation with the Secretary of Defense, the Secretary of Veterans Affairs, and the Administrator of General Services, shall issue 

guidance for Federal agencies to employ advanced tools allowing energy savings 

through the use of computer hardware, energy efficiency software, and power management tools. 

(b) REPORTS ON PLANS AND SAVINGS.—Not later than 180 days after the date of 

the issuance of the guidance under subsection (a), each Federal agency shall submit 

to the Secretary of Energy a report that describes— 

(1) the plan of the agency for implementing the guidance within the agency; 

and 

(2) estimated energy and financial savings from employing the tools described 

in subsection (a). 

SEC. 402. 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. 403. BEST PRACTICES FOR ADVANCED METERING. 

Section 543(e) of the National Energy Conservation Policy Act (42 U.S.C. 8253(e) 

is amended by striking paragraph (3) and inserting the following: 

‘‘(3) PLAN.— 

‘‘(A) IN GENERAL.—Not later than 180 days after the date on which guidelines are established under paragraph (2), in a report submitted by the 

agency under section 548(a), each agency shall submit to the Secretary a 

plan describing the manner in which the agency will implement the requirements of paragraph (1), including— 

‘‘(i) how the agency will designate personnel primarily responsible for 

achieving the requirements; and 

‘‘(ii) a demonstration by the agency, complete with documentation, of 

any finding that advanced meters or advanced metering devices (as 

those terms are used in paragraph (1)), are not practicable. 

‘‘(B) UPDATES.—Reports submitted under subparagraph (A) shall be updated annually. 

‘‘(4) BEST PRACTICES REPORT.— 


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‘‘(A) IN GENERAL.—Not later than 180 days after the date of enactment 

of the Energy Savings and Industrial Competitiveness Act of 2011, the Secretary of Energy, in consultation with the Secretary of Defense and the Administrator of General Services, shall develop, and issue a report on, best 

practices for the use of advanced metering of energy use in Federal facilities, buildings, and equipment by Federal agencies. 

‘‘(B) UPDATING.—The report described under subparagraph (A) shall be 

updated annually. 

‘‘(C) COMPONENTS.—The report shall include, at a minimum— 

‘‘(i) summaries and analysis of the reports by agencies under paragraph (3); 

‘‘(ii) recommendations on standard requirements or guidelines for 

automated energy management systems, including— 

‘‘(I) potential common communications standards to allow data 

sharing and reporting; 

‘‘(II) means of facilitating continuous commissioning of buildings 

and evidence-based maintenance of buildings and building systems; 

and 

‘‘(III) standards for sufficient levels of security and protection 

against cyber threats to ensure systems cannot be controlled by unauthorized persons; and 

‘‘(iii) an analysis of— 

‘‘(I) the types of advanced metering and monitoring systems 

being piloted, tested, or installed in Federal buildings; and 

‘‘(II) existing techniques used within the private sector or other 

non-Federal government buildings.’’. 

SEC. 404. FEDERAL ENERGY MANAGEMENT AND DATA COLLECTION STANDARD. 

Section 543 of the National Energy Conservation Policy Act (42 U.S.C. 8253) is 

amended— 

(1) by redesignating the second subsection (f) (as added by section 434(a) of 

Public Law 110–140 (121 Stat. 1614)) as subsection (g); and 

(2) in subsection (f)(7), by striking subparagraph (A) and inserting the following: 

‘‘(A) IN GENERAL.—For each facility that meets the criteria established by 

the Secretary under paragraph (2)(B), the energy manager shall use the 

web-based tracking system under subparagraph (B)— 

‘‘(i) to certify compliance with the requirements for— 

‘‘(I) energy and water evaluations under paragraph (3); 

‘‘(II) implementation of identified energy and water measures 

under paragraph (4); and 

‘‘(III) follow-up on implemented measures under paragraph (5); 

and 

‘‘(ii) to publish energy and water consumption data on an individual 

facility basis.’’. 

SEC. 405. ELECTRIC VEHICLE CHARGING INFRASTRUCTURE. 

Section 804(4) of the National Energy Conservation Policy Act (42 U.S.C. 

8287c(4)) is amended— 

(1) in subparagraph (A), by striking ‘‘or’’ after the semicolon; 

(2) in subparagraph (B), by striking the period at the end and inserting ‘‘; or’’; 

and 

(3) by adding at the end the following: 

‘‘(C) a measure to support the use of electric vehicles or the fueling or 

charging infrastructure necessary for electric vehicles.’’. 

SEC. 406. FEDERAL PURCHASE REQUIREMENT. 

Section 203 of the Energy Policy Act of 2005 (42 U.S.C. 15852) is amended— 

(1) in subsections (a) and (b)(2), by striking ‘‘electric energy’’ each place it appears and inserting ‘‘electric and thermal energy’’; 

(2) by redesignating subsection (d) as subsection (e); and 

(3) by inserting after subsection (c) the following: 

‘‘(d) SEPARATE CALCULATION.—Renewable energy produced at a Federal facility, 

on Federal land, or on Indian land (as defined in section 2601 of the Energy Policy 

Act of 1992 (25 U.S.C. 3501))— 

‘‘(1) shall be calculated separately from renewable energy used; and 

‘‘(2) may be used individually or in combination to comply with subsection 

(a).’’. 


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SEC. 407. STUDY ON FEDERAL DATA CENTER CONSOLIDATION. 

(a) IN GENERAL.—The Secretary of Energy shall conduct a study on the feasibility 

of a government-wide data center consolidation, with an overall Federal target of 

a minimum of 800 Federal data center closures by October 1, 2015. 

(b) COORDINATION.—In conducting the study, the Secretary shall coordinate with 

Federal data center program managers, facilities managers, and sustainability officers. 

(c) REPORT.—Not later than 1 year after the date of enactment of this Act, the 

Secretary shall submit to Congress a report that describes the results of the study, 

including a description of agency best practices in data center consolidation. 

TITLE V—MISCELLANEOUS 

SEC. 501. OFFSETS. 

(a) ZERO-NET ENERGY COMMERCIAL BUILDINGS INITIATIVE.—Section 422(f) of the 

Energy Independence and Security Act of 2007 (42 U.S.C. 17082(f)) is amended by 

striking paragraphs (2) through (4) and inserting the following: 

‘‘(2) $50,000,000 for each of fiscal years 2009 through 2012; 

‘‘(3) $100,000,000 for fiscal year 2013; and 

‘‘(4) $200,000,000 for each of fiscal years 2014 through 2018.’’. 

(b) ENERGY SUSTAINABILITY AND EFFICIENCY GRANTS AND LOANS FOR INSTITUTIONS.—Subsection (j) of section 399A of the Energy Policy and Conservation Act (42 

U.S.C. 6371h–1) (as redesignated by section 301(2)) is amended— 

(1) in paragraph (1), by striking ‘‘through 2013’’ and inserting ‘‘and 2010, 

$100,000,000 for each of fiscal years 2011 and 2012, and $250,000,000 for fiscal 

year 2013’’; and 

(2) in paragraph (2), by striking ‘‘through 2013’’ and inserting ‘‘and 2010, 

$100,000,000 for each of fiscal years 2011 and 2012, and $425,000,000 for fiscal 

year 2013’’. 

(c) WASTE ENERGY RECOVERY INCENTIVE PROGRAM.—Section 373(f)(1) of the Energy Policy and Conservation Act (42 U.S.C. 6343(f)(1)) is amended— 

(1) by redesignating subparagraph (B) as subparagraph (D); and 

(2) by striking subparagraph (A) and inserting the following: 

‘‘(A) $100,000,000 for fiscal year 2008; 

‘‘(B) $200,000,000 for each of fiscal years 2009 and 2010; 

‘‘(C) $100,000,000 for each of fiscal years 2011 and 2012; and’’. 

(d) ENERGY-INTENSIVE INDUSTRIES PROGRAM.—Section 452(f)(1) of the Energy 

Independence and Security Act of 2007 (42 U.S.C. 17111(f)(1)) is amended— 

(1) in subparagraph (D), by striking ‘‘$202,000,000’’ and inserting 

‘‘$102,000,000’’; and 

(2) in subparagraph (E), by striking ‘‘$208,000,000’’ and inserting 

‘‘$108,000,000’’. 

SEC. 502. 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. 503. 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. 

PURPOSE

The purpose of S. 1000 is to promote energy savings in residential and commercial buildings and industry, and in Federal, local, 

and Tribal governments. 

BACKGROUND AND NEED

Since the 1973 oil embargo and every subsequent energy crisis, 

studies have shown that the United States could save energy and 

money by investing in energy efficiency. Today, efficient energy use 


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and energy technologies are critical to U.S. job creation and competitiveness. In addition, efficient energy use reduces CO2 emissions and other pollutants. Yet many existing energy efficiency 

technologies and programs have not been installed or implemented. 

The National Academies released a study in 2010 on the potential for energy efficiency in commercial and residential buildings, 

transportation, and manufacturing (Real Prospects for Energy Efficiency in the United States). The study found that the potential for 

increasing energy efficiency is enormous and could more than offset 

the Energy Information Administration’s projected increases in 

U.S. consumption through 2030. 

The Energy Savings and Industrial Competitiveness Act of 2011 

sets out a national strategy to increase the use of energy efficiency 

technologies in the residential, commercial, federal, and industrial 

sectors of our economy. The legislation uses a variety of low-cost 

tools to reduce barriers for private sector efficiency investments 

and drive the adoption of off-the-shelf technologies that will save 

money for consumers and businesses, make America more energy 

independent, and reduce emissions. Efficiency technologies are 

commercially available today, can be deployed in every state in the 

nation, and quickly pay for themselves through energy savings. 

Commercial and residential buildings combined consume 40 percent of all energy used. The U.S. industrial sector consumes more 

energy than any other sector of our economy and the Federal Government is the largest single energy consumer in the U.S. S. 1000 

targets these three sectors for an energy-efficiency upgrade that 

will drive economic growth across all regions of the country. 

LEGISLATIVE HISTORY

S. 1000 was introduced on May 16, 2011 by Senator Shaheen and 

Senator Portman, and cosponsored by Senator Coons and Senator 

Landrieu. The Committee on Energy and Natural Resources held 

a legislative hearing on S. 1000 on June 9, 2011, and the bill was 

ordered favorably reported with an amendment in the nature of a 

substitute on July 14, 2011. 

Parts of S. 1000 are similar to legislation introduced in the 111th 

Congress. Title I, subtitle A, relating to building energy codes, and 

subtitle B, relating to worker training and capacity building, are 

similar to sections 241 and 243, respectively, of S. 1462 in the 

111th Congress, the American Clean Energy Leadership Act of 

2009, an original bill reported by the Committee on Energy and 

Natural Resources on July 16, 2009. 

S. Rept. 111–48. Title II, relating to building efficiency finance, 

is similar to S. 3780 in the 111th Congress, the Recovery Through 

Building Renovation Act of 2010, introduced by Senator Shaheen 

on September 14, 2010. Title III, subtitle A, relating to manufacturing energy efficiency, is similar to title II, subtitle A, of S. 1462 

in the 111th Congress. Title III, subtitle B, relating to Supply Star, 

is similar to S. 3396 in the 111th Congress, the Supply Star Act 

of 2010, introduced by Senator Bingaman on May 24, 2010. The 

Committee on Energy and Natural Resources (subcommittee on 

Energy) held a hearing on S. 3396 on June 15, 2010, S. Hrg. 111– 

699, and reported it favorably on September 27, 2010. S. Rept. 

111–319. 


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COMMITTEE RECOMMENDATION AND TABULATION OF VOTES

The Senate Committee on Energy and Natural Resources, in 

open business session on July 14, 2011, by majority vote of a 

quorum present recommends that the Senate pass S. 1000, if 

amended as described herein. 

The rollcall vote on reporting the measure was 18 yeas and 3 

nays as follows: 

YEAS NAYS 

Mr. Bingaman Mr. Paul 

Mr. Wyden Mr. Heller 

Mr. Johnson* Mr. Corker 

Ms. Landrieu 

Ms. Cantwell 

Mr. Sanders 

Ms. Stabenow* 

Mr. Udall 

Mrs. Shaheen 

Mr. Franken* 

Mr. Manchin 

Mr. Coons 

Ms. Murkowski 

Mr. Barrasso 

Mr. Risch* 

Mr. Coats 

Mr. Portman 

Mr. Hoeven 

* Indicates voting by Proxy. Mr. Lee did not vote. 

COMMITTEE AMENDMENT

During its consideration of S. 1000, the Committee approved an 

amendment in the nature of a substitute. The substitute amendment makes numerous changes in the bill as originally introduced, 

principally, by deleting subtitle B of title I, relating to appliance 

standards (which the Committee separately reported as S. 398 on 

May 18, 2011); deleting section 201, relating to the rural energy 

savings program; adding a new subtitle D to title III, establishing 

an energy efficient transformer rebate program; adding authorization offsets; and reducing amounts authorized to be appropriated. 

In addition, during the consideration of the substitute, the Committee adopted an amendment to section 304 of the Energy Conservation and Production Act (as amended by section 1010(a) of the 

substitute), relating to building energy efficiency codes, which 

makes it clear that nothing in section 304 requires a State, local 

government, or Indian tribe to adopt a national model building 

code or standard established under section 304. 

SECTION-BY-SECTION ANALYSIS

TITLE I—BUILDINGS

Subtitle A—Building energy codes 

Section 101(a) amends section 304 of the Energy Conservation 

and Production Act (ECPA) (42 U.S.C. 6833), relating to state 

building energy efficiency codes. 


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ECPA section 304(a)(1), as amended, directs the Secretary of Energy to support the development of national model energy codes to 

enable the achievement of energy savings targets. The Secretary is 

directed to work with States, Indian Tribes, nationally recognized 

codes and standards developers, and others to establish 1 or more 

aggregate energy savings targets to achieve the purposes of this 

section, and to encourage state and local adoption of the codes and 

full compliance with the State and local codes. 

ECPA section 304(a)(2) directs the Secretary to support updating 

of the model energy codes for residential buildings and commercial 

buildings from the baseline of 2009 IECC for residential buildings 

and ASHRAE standards 90.1–2010. Targets for specific years are 

to be established by the Secretary though rulemaking and coordinated with nationally recognized codes and standards and are to 

promote the achievement of high performance buildings through 

high performance efficiency. The Secretary may consider factors affecting building energy use and economic considerations including 

a return on investment analysis in setting the targets. 

ECPA section 304(a)(3) directs the Secretary to provide technical 

assistance to model codes and standards organizations. The assistance is to include evaluating codes or standards, proposals, or revisions; building energy analysis and design tools; building demonstrations; developing definitions of energy use intensity and 

building types; performance-based standards; evaluating economic 

considerations, and developing model codes by Indian tribes. In addition, the Secretary may submit amendment proposals to enable 

the code or standard to meet its targets. 

ECPA section 304(a)(4) sets forth the procedures for revising 

model building codes and standards, and for addressing codes or 

standards that do not meet the targets, or codes and standards 

that have not been updated, and if necessary, the Secretary may 

establish a modified national building energy code. 

ECPA section 304(a)(5) requires the Secretary to publish notice 

of targets, determinations, and national model building energy 

codes in the Federal Register with the explanation of and the basis 

for such actions. The Secretary shall also provide an opportunity 

for public comment on targets, determination, and codes under this 

section. 

ECPA section 304(b) requires that, within 2 years of the establishment of national model building codes, States and Indian tribes 

certify whether they have updated their codes, and whether the 

codes meet the revised model code or achieve equivalent of greater 

energy savings. Within 90 days of the State or tribe’s certification, 

the Secretary must determine whether the state or tribal code 

meets the revised model code, and if so, validate the certification. 

ECPA section 304(c) provides that 3 years after the date of a certification under subsection (b), each State and Indian Tribe must 

certify whether it has achieved full compliance or made significant 

progress toward achieving compliance, and shall repeat the certification until the State or Indian tribe has achieved full compliance. 

The section describes measurement of compliance and the achievement of compliance, including annual targets for compliance and 

active training and enforcement. 

ECPA section 304(d)(1) provides that a State or Indian tribe that 

does not meet its targets shall submit a report to the Secretary on 


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the status of meeting the requirements and submitting the certification and a plan for meeting the requirements and submitting the 

certification. 

ECPA section 304(d)(2) states that any State or Indian tribe for 

which the Secretary has not acted on a certification by a deadline 

under subsection (b) or (c) may be ineligible for Federal support authorized under section 304 for code adoption and compliance activities. 

ECPA section 304(d)(3) provides that a local government may be 

eligible for Federal support by meeting the certification requirements of subsections (b) and (c). 

ECPA section 304(e) and (f) direct the Secretary to provide technical assistance to States and Indian tribes to implement the requirements of this section. 

ECPA section 304(g) directs the Secretary to provide technical 

and financial support for Stretch Codes and Advanced Standards. 

ECPA section 304(h) authorizes studies of code improvements. 

ECPA section 304(i) states that notwithstanding any other purpose of this section, any model building code or standard established in this section shall not be binding on a state established on 

a State, local government, or Indian tribe as a matter of Federal 

law. 

ECPA section 304(j) authorizes appropriations of $200,000,000 to 

carry out the section. 

Section 101(b) amends section 303 of the Energy Conservation 

and Production Act to add definitions of ‘‘IECC’’ (the International 

Energy Conservation Code) and ‘‘Indian Tribe,’’ which is given the 

same meaning given the term in section 4 of the Native American 

Housing Assistance and Self-Determination Act of 1996. 

Subtitle B—Worker training and capacity building 

Section 111 directs the Secretary to establish Building Training 

and Assessment Centers at institutions of higher learning, modeled 

after the Department of Energy’s Industrial Assessment Centers. 

These centers would identify and promote opportunities, concepts, 

and technologies for enhancing building energy and environmental 

performance. They would train engineers, architects, building scientists, building permitting and enforcement officials, and technicians; assist other institutions to train building technicians; promote research and development in clean energy technologies for 

buildings; and coordinate services with technical training centers, 

community colleges, and other relevant offices and institutions. 

TITLE II—BUILDING EFFICIENCY FINANCE

Section 201 amends Title XVII of the Energy Policy Act of 2005 

by adding a new Building Retrofit Financing Program. This program would provide credit guarantees to reduce financing risk for 

commercial and institutional building energy efficiency projects. 

The range of financing mechanisms that could be supported by this 

program would be very broad and would include loans, power purchase agreements, energy service agreements (e.g., energy service 

performance contracts), property-assessed clean energy bonds or 

similar tax assessment-based programs, and aggregate on-meter 

agreements. $400 million would be authorized to be appropriated 


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for the period of fiscal years 2012–2021, and would remain available until expended. 

TITLE III—INDUSTRIAL EFFICIENCY AND COMPETITIVENESS

Subtitle A—Manufacturing energy efficiency 

Section 301 directs the Secretary to carry out a revolving loan 

program under which loans are provided to commercial and industrial manufacturers to implement commercially available technologies or processes that reduce energy intensity and improve the 

industrial competitiveness of the United States. The Secretary 

would provide grants to eligible lenders to pay part of the cost of 

revolving loan programs to enable commercial and industrial manufacturers to adopt commercially available technologies. Eligible 

lenders must be community and economic development lenders 

that lead a partnership that includes a state government agency 

and a private provider of capital. Federal funds for an eligible lender will be capped at $100,000,000 for any fiscal year, and must be 

cost matched by non-Federal funds at least dollar-for-dollar. 

Section 302 directs the Secretary to establish collaborative research and development partnerships, as appropriate, with other 

research and development programs in the Department. Such research shall support the use of innovative manufacturing processes 

and applied research for new technologies and processes to improve 

efficiency, reduce waste, and improve industrial cost-competitiveness. 

Section 303(a) directs the Secretary to begin an assessment of 

commercially available, cost-competitive energy efficiency technologies that are not widely implemented within the United States 

for following energy intensive industries: steel, aluminum, forest 

and paper products, food processing, metal casting, glass, chemicals, petroleum refining, cement, information and communication, 

and other energy intensive industries (as determined by the Secretary). 

Section 303(b) directs the Secretary to publish a report based on 

the assessment in subsection (a) and in collaboration with the affected energy-intensive industries, not later than 1 year after the 

date of enactment of this Act. The report shall include estimates 

of the benefits of adopting the cost-competitive technologies, comparisons with other appropriate countries, recommendations on creating jobs, and energy savings. 

Section 304 amends section 452 of the Energy Independence and 

Security Act of 2007 (42 U.S.C. 17111). Subsection (a) amends the 

section heading. 

Section 304(b) adds a definition of the term ‘‘Energy Service Provider’’ to EISA section 452(a). 

Section 304(c) directs the Secretary through the Industrial Technologies Program and in collaboration with industry to establish a 

road mapping process for conducting industry specific studies on 

the intensity of energy use, greenhouse gas emissions, and operating costs. 

Section 304(d) directs the Secretary to establish Centers of Excellence at up to 10 industrial research and assessment centers 

(IACs). The IACs would coordinate and partner with the Manufacturing Extension Partnership at NIST, existing IACs, and DOE inVerDate Mar 15 2010 04:41 Sep 09, 2011 Jkt 099010 PO 00000 Frm 00023 Fmt 6659 Sfmt 6602 E:\HR\OC\SR071.XXX SR071

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dustrial programs. They would perform outreach to small and medium-sized manufacturers and identify greenhouse gas reduction 

opportunities. The Secretary shall pay the Federal share for internship programs under which students work for industries and manufacturers. Subject to availability, each Center would receive funding of not less than $500,000 per fiscal year. 

Section 305(a) amends part E of title III of the Energy Policy and 

Conservation Act (42 U.S.C. 6341) by adding a new section 376, 

which establishes a sustainable manufacturing initiative under the 

Department of Energy Industrial Technologies program to provide 

onsite technical assessments to manufacturers. The assessments 

would identify opportunities to maximize energy efficiency, prevent 

pollution, minimize waste, and conserve water in the manufacturing process. 

Section 306 directs the Secretary to contract with the National 

Academy of Sciences to conduct a study of the development of advanced manufacturing capabilities for improvements in supply 

chains. The study would analyze the history, current trends, and 

opportunities for improvements in supply chains. It would analyze 

for each technology or manufacturing sector the most critical parts 

of the supply chain for competitiveness, assess emerging energy 

technologies, and provide recommendations on leveraging energy 

efficiency and renewable energy user facilities. 

Section 307 directs the Secretary to establish an advisory steering committee including national trade associations representing 

energy-intensive industries to provide recommendations to the Secretary on planning and implementation of the Industrial Technologies Program. 

Subtitle B—Supply Star 

Section 311 amends part B of title III of the Energy Policy and 

Conservation Act is amended to establish a Supply Star program 

within the Department of Energy to identify practices, companies, 

and products that use highly efficient supply chains. The program 

would promote existing efficient supply chain practices in a manner 

that conserves energy, water, and other resources. The program 

would collect and disseminate relevant data and metrics. The Department would share best practices, provide benchmarking opportunities, and support professional training, among other initiatives. The program would coordinate efforts with the Energy Star 

program. The final subsection authorizes the appropriation 

$10,000,000 for the period of fiscal years 2012 through 2021 to 

carry out this section. 

Subtitle C—Electric motor rebate program 

Section 321 directs the Secretary to establish a rebate program 

to create an incentive for the purchase of new constant speed electric motor controls that reduce a motor’s energy use by at least 5 

percent. The rebate would be worth $25 per horsepower of the 

motor. Subsection (c) authorizes appropriation of $5 million for this 

provision for each fiscal year 2012 through 2016. 

TITLE IV—FEDERAL AGENCY ENERGY EFFICIENCY

Section 401 requires Federal Agencies to develop a plan for 

adopting personal computer power savings techniques. 


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Section 402 allows the Administrator of General Services to use 

appropriated funding to update plans for any project that has been 

approved by Congress and for which construction has not begun. 

The funds would be used to update the building design to meet energy efficiency standards established in the Energy Conservation 

and Production Act. Funds used for this purpose could not exceed 

125 percent of the estimate energy or other cost savings resulting 

from the design changes. 

Section 403 requires Federal agencies to create an implementation plan, updated annually, for how each agency will achieve the 

energy conservation requirement under the National Energy Conservation Policy Act, including designating personnel responsible 

for achieving the requirements. The Secretary of Energy shall develop and issue an annual best-practices report on advanced metering in Federal Facilities in collaboration with the Secretary of Defense and the Administrator of General Services. 

Section 404 would, for required facilities, direct energy managers 

to use a web-based tracking system to certify compliance with energy and water requirements and to provide implementation of energy and water measures to reduce consumption. 

Section 405 would expand the definition of energy or water conservation measure in the National Energy Conservation Policy Act 

to include measures that support the use of electric vehicles and 

their necessary fueling and charging infrastructure as part of an 

energy savings contract. 

Section 406 would amend the Federal renewable purchase requirement in the Energy Policy Act of 2005 to include thermal as 

well as electric renewable electricity. Further, the section would require calculation of renewable energy production at Federal facilities, on Federal land, and on Indian lands and allow such production to count toward compliance with the Federal renewable purchase requirement. 

Section 407 requires the Secretary to coordinate with program 

and facility managers to conduct a feasibility study on governmentwide data centers with the intention of closing a minimum of 800 

Federal data centers. The Secretary shall provide a report to Congress on the results of the study. 

TITLE V—MISCELLANEOUS

Section 501 provides offsets for the authorizations in the bill. 

Section 502 states that the budgetary effects of the bill under the 

Statutory Pay-as-You-Go regulations shall be determined by the 

latest statement on the bill. 

Section 503 specifies that authorizations for appropriations shall 

apply only if such sums are actually appropriated. 

COST AND BUDGETARY CONSIDERATIONS

The following estimate of costs of this measure has been provided 

by the Congressional Budget Office: 

S. 1000—Energy Savings and Industrial Competitiveness Act of 

2011 

Summary: S. 1000 would authorize appropriations to support a 

variety of activities aimed at promoting energy efficiency in certain 


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sectors of the economy. Assuming appropriation of the authorized 

amounts, CBO estimates that implementing S. 1000 would have a 

net discretionary cost of $1.2 billion over the 2012–2016 period. S. 

1000 could affect direct spending; therefore, pay-as-you-go procedures apply. CBO estimates, however, that any such effects would 

be insignificant in any given year. Enacting S. 1000 would not affect revenues. 

S. 1000 would impose an intergovernmental mandate, as defined 

in the Unfunded Mandates Reform Act (UMRA), by requiring 

states to certify to the Department of Energy (DOE) whether or not 

they have updated residential and commercial building codes to 

meet standards developed by building efficiency organizations. 

CBO estimates that the cost of that mandate would fall well below 

the annual threshold established in UMRA ($71 million in 2011, 

adjusted annually for inflation). The bill contains no private-sector 

mandates as defined in UMRA. 

Estimated cost to the Federal Government: The estimated budgetary impact of S. 1000 is shown in the following table. The costs 

of this legislation fall within budget function 270 (energy). 

By fiscal year, in millions of dollars— 

2012 2013 2014 2015 2016 2012– 

2016 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

New Authorizations: 

Estimated Authorization Level ................................. 1,080 460 451 452 453 2,896 

Estimated Outlays ................................................... 313 403 473 513 488 2,190 

Reduced Authorizations: 

Authorization Level .................................................. ¥800 ¥175 0 0 0 ¥975 

Estimated Outlays ................................................... ¥232 ¥251 ¥212 ¥165 ¥84 ¥944 

Total Proposed Changes: 

Estimated Authorization Level ........................ 280 285 451 452 453 1,921 

Estimated Outlays .......................................... 81 152 261 348 404 1,246 

Basis of estimate: S. 1000 would have a net discretionary cost of 

$1.2 billion over the next five years, assuming appropriation action 

consistent with the bill. The bill also could affect direct spending, 

but CBO estimates that any such effects would not be significant 

in any of the next 10 years. 

Spending subject to appropriation 

S. 1000 would authorize appropriations for a variety of programs 

and activities aimed at promoting energy efficiency, particularly 

within residential and commercial buildings and the industrial sector. The bill also would reduce several existing authorizations of 

appropriations for related activities. Taken as a whole, CBO estimates that implementing S. 1000 would have a net discretionary 

cost of $1.2 billion over the 2012–2016 period. 

New Authorizations. S. 1000 would specifically authorize appropriations totaling $2.7 billion over the 2012–2016 period for DOE 

to carry out a variety of activities directed toward improving the 

energy efficiency of buildings and industrial systems. That specified 

amount includes: 

• $2 billion for grants to nonfederal lenders to support efforts by industrial and commercial manufacturers to improve 

their energy efficiency; 


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• $400 million to cover the federal government’s cost of providing certain types of credit support for projects to upgrade 

the energy efficiency of existing buildings that are privately 

owned; • $200 million to establish national construction codes related to the energy efficiency of residential and commercial 

buildings and to provide technical assistance related to such 

codes; • $20 million to provide rebates to purchasers of certain energy-efficient transformers and devices that reduce energy consumed by motors; • $20 million for grants and other incentives to improve the 

efficiency of processes involved in the production and distribution of products; and • $10 million for onsite assessments of the energy efficiency 

of manufacturing processes. 

In addition, CBO estimates that implementing other provisions 

of S. 1000 that direct DOE to expand ongoing efforts by DOE and 

the General Services Administration (GSA) related to building 

technologies and industrial energy efficiency would require appropriations totaling $256 million over the 2012–2016 period. Most of 

that amount would be used by GSA to update building designs and 

implement projects to meet certain energy-efficiency requirements. 

In total, assuming appropriation of amounts specified and estimated to be necessary, CBO estimates that implementing S. 1000 

would have a gross cost of almost $2.2 billion over the 2012–2016 

period, with additional outlays occurring in later years. That estimate is based on historical spending patterns for activities similar 

to those authorized under S. 1000. 

Reduced Authorizations. To offset a portion of increased discretionary spending, S. 1000 would reduce some existing authorizations of appropriations for DOE programs to support a variety of 

grants, incentives, and initiatives related to industrial energy efficiency and building technologies. In total, S. 1000 would reduce 

amounts authorized to be appropriated by $975 million over the 

2012–2013 period. Assuming future appropriations are reduced accordingly, CBO estimates that implementing S. 1000 would result 

in $944 million less in discretionary spending for those programs 

over the 2012–2016 period. 

Direct spending 

S. 1000 would amend title 17 of the Energy Policy Act of 2005 

(title 17), which authorizes DOE to guarantee loans for certain 

types of energy projects. Specifically, the bill would authorize DOE 

to provide various forms of credit enhancements to support projects 

to install certain types of energy-efficient or renewable energy technologies in private and public buildings—including federal buildings. (Credit enhancements are actions that improve the credit 

worthiness of a project.) The bill does not define the types of credit 

enhancements that DOE could provide. Any transactions related to 

issuing or guaranteeing debt would be subject to provisions of the 

Federal Credit Reform Act (FCRA) that would prohibit DOE from 

making any obligations without an up-front appropriation to cover 

the subsidy cost of such arrangements. For purposes of this estimate, CBO assumes that any spending for other forms of credit enVerDate Mar 15 2010 04:41 Sep 09, 2011 Jkt 099010 PO 00000 Frm 00027 Fmt 6659 Sfmt 6602 E:\HR\OC\SR071.XXX SR071

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hancements—for example, grants or payments to project sponsors—would also be subject to appropriation. 

CBO also estimates, however, that implementing the proposed 

program could affect direct spending in two ways. First, S. 1000 

would authorize DOE to proceed with loan guarantees in cases 

where borrowers pay upfront fees to cover anticipated subsidy 

costs. Normally, DOE’s authority to guarantee such loans would be 

subject to limits specified in annual appropriation acts; however, 

previously enacted appropriation laws have already authorized 

DOE to guarantee loans under title 17. CBO does not expect all of 

that authority to be used by existing programs over the 10-year period covered by this estimate; therefore, a portion of it could be 

used to guarantee loans under S. 1000. Any resulting net change 

in the timing of outlays stemming from existing authority would be 

considered direct spending. However, based on information from 

DOE about the relatively small amount of loan volume remaining—$400 million—CBO estimates that any change in direct 

spending resulting from the subsidy cost of using that authority 

would be insignificant. 

Finally, CBO expects that authorizing DOE to provide credit enhancements could result in a marginal increase in federal agencies’ 

use of certain types of contracts and agreements that support energy-efficiency projects. Under current law, federal agencies have a 

variety of long-term contracting tools—including energy savings 

performance contracts, power purchase agreements, and enhanceduse leases—that support projects undertaken by nonfederal parties. 

In some cases, the added benefit of federal credit enhancements 

provided under S. 1000 could improve the economic viability of 

marginal projects, increasing the probability that they proceed. In 

those cases, CBO expects that credit enhancements provided under 

S. 1000 could result in an increased use of agencies’ underlying 

contracting authorities, which are considered a form of direct 

spending. CBO estimates, however, that any additional direct 

spending stemming from such marginal changes in agencies’ behavior would be insignificant in any year. 

Pay-As-You-Go considerations: Enacting S. 1000 could increase 

direct spending; therefore, pay-as-you-go procedures apply. CBO estimates, however, that any such effects would be insignificant in 

each year and over the next 10 years. 

Estimated impact on State, local, and tribal governments: S. 

1000 would impose an intergovernmental mandate, as defined in 

UMRA, by requiring states to certify to DOE whether or not they 

have updated residential and commercial building codes to meet 

standards developed by building efficiency organizations. Because 

the mandate cost would just be the cost to provide that certification 

(regardless of whether building codes are updated), CBO estimates 

that the cost of that mandate would fall well below the annual 

threshold established in UMRA ($71 million in 2011, adjusted annually for inflation). 

Estimated impact on the private sector: This bill contains no private-sector mandates as defined in UMRA. 

Estimate prepared by: Federal costs: Megan Carroll, Kathleen 

Gramp, and Matthew Pickford; Impact on State, local, and tribal 

governments: Ryan Miller; Impact on the private sector: Amy Petz. 


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Estimate approved by: Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

REGULATORY IMPACT EVALUATION

In compliance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee makes the following evaluation 

of the regulatory impact which would be incurred in carrying out 

S. 1000. 

S. 1000 directs the Secretary of Energy to support the development of national model building energy codes and encourage and 

support States and Indian tribes to adopt building codes that meet 

or exceed the national model building energy codes. But the measure does not require individuals or businesses to comply with the 

national model codes. 

No personal information would be collected in administering the 

program. Therefore, there would be no impact on personal privacy. 

S. 1000 requires States and Indian tribes to certify their compliance or progress toward meeting the national model building energy codes, and imposes various reporting and data collecting requirements on the Secretary of Energy and federal energy managers. The Secretary may also require applicants for loans and rebates established under the measure to provide such information 

as the Secretary may require to implement those programs, but the 

Committee does not expect the bill’s information collecting requirements to impose substantial additional paperwork or recordkeeping 

burdens, in either time or financial cost, on private individuals or 

businesses. 

CONGRESSIONALLY DIRECTED SPENDING

S. 1000, as ordered reported, does not contain any congressionally directed spending items, limited tax benefits, or limited tariff 

benefits as defined in rule XLIV of the Standing Rules of the 

Senate. 

EXECUTIVE COMMUNICATIONS

The testimony provided by the Department of Energy at the 

June 6, 2011 Full Committee hearing on S. 1000 follows: 

STATEMENT OF KATHLEEN HOGAN, DEPUTY ASSISTANT SECRETARY FOR ENERGY EFFICIENCY, OFFICE OF ENERGY

EFFICIENCY AND RENEWABLE ENERGY, DEPARTMENT OF

ENERGY

Chairman Bingaman, Ranking Member Murkowski and 

Members of the Committee, thank you for the opportunity 

to discuss the Department of Energy’s (DOE’s) energy efficiency and Advanced Vehicles Technology Programs. The 

Administration is still reviewing the Reducing Federal Energy Dollars Act of 2011 (S. 963), the Energy Savings and 

Industrial Competitiveness Act of 2011 (S. 1000), and the 

Alternative Fuel Vehicles Competitiveness and Energy Security Act of 2011 (S. 1001). While the Administration does 

not take a position at this time, my statement will provide 

you with information on work DOE is already doing to creVerDate Mar 15 2010 04:41 Sep 09, 2011 Jkt 099010 PO 00000 Frm 00029 Fmt 6659 Sfmt 6969 E:\HR\OC\SR071.XXX SR071

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ate jobs, build a new clean energy economy, and help save 

consumers and businesses money through improved energy 

efficiency. 

At EERE, we work to remove the barriers to the rapid 

conversion of innovative research into commercial products, manufacturing, and jobs. And we work with other 

federal, state, and local governments to speed the adoption 

of these American innovations. The new businesses in 

clean energy production, installation, and operation are 

playing a key role driving economic growth and job creation. 

The market for clean energy technology is growing 

quickly and many countries have mounted aggressive national efforts to capture market share. China, for example, 

has moved quickly to dominate the development of next 

generation clean energy products through low-cost production and investments in research infrastructure. As the 

President said, ‘‘this is our generation’s Sputnik moment.’’ 

To show his clear commitment to our future, he has asked 

for a significant increase in funding for energy efficiency 

and renewable energy in the FY12 budget proposal, even 

in a budget which moves overall domestic discretionary 

spending to the lowest levels in a generation. 

To win the future, we have to be a nation that makes, 

creates, and innovates. Across the country, we are seeing 

strong evidence that the out-build and out-innovate pillars 

the Administration has put forward are paying off. In October of last year, for example, manufacturing posted its 

first twelve-month gain in more than ten years, and has 

added close to 250,000 jobs since the December 2009 low. 

The Administration continues to be optimistic about the 

prospects for manufacturing in the recovery. 

Manufacturing remains one of the most globally competitive economic sectors we have. It also is one of the 

most visible economic sectors we have, with middle-class 

Americans clearly understanding the impact that strengthened manufacturing has on their lives and their communities. 

The challenges we face mean that we need to move with 

unprecedented speed and scale. Success is measured by 

private innovation and investment but can begin with 

well-crafted federal programs that will help achieve a 

number of important goals: 

• A vigorous and profitable residential and commercial building retrofit industry, cost-effectively saving 

30–50 percent of the energy used in existing buildings; 

• Solar energy, offshore wind energy, and geothermal plants fully competitive with conventional 

sources of electricity; 

• Fuels that can be drop-in replacements for gasoline, diesel fuel, or jet fuel priced competitively with 

products produced from petroleum; 

• Large fleets of electric and hybrid cars supported 

by a network of charging stations to support them; 

and 


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1http://www.whitehouse.gov/sites/default/files/blueprint_secure_energy_future.pdf 2http://www1.eere.energy.gov/vehiclesandfuels/pdfs/vehicles_fs.pdf 3http://www.bls.gov/news.release/cesan.nr0.htm 

• Trucks with over 50% improvement in fuel economy. 

Small federal investments have led to major breakthroughs like the invention of the internet and Global Positioning Systems or ‘‘GPS’’ found in most cellular devices 

today. Similarly, EERE investments past, present, and future are critical to achieving these goals. As one example, 

in 2009, the U.S. had only two, relatively small, factories 

manufacturing advanced vehicle batteries, and produced 

less than two percent of the world’s hybrid vehicle batteries.1 But over the next few years, thanks to investments 

from the American Recovery and Reinvestment Act of 2009 

(Recovery Act) in battery and electric drive component 

manufacturing, and electric drive demonstration and infrastructure, the U.S. will be able to produce enough batteries 

and components to support 500,000 plug-in and electric vehicles per year. High volume manufacturing, coupled with 

battery technology advances, design optimization, and material cost reductions, could lead to a drop in battery costs 

of 50 percent by 2013 compared to 2009, which will lower 

the cost of electric vehicles, making them accessible to 

more consumers. 

These kinds of breakthroughs are especially important 

in the transportation sector, which alone accounts for approximately two-thirds of the United States’ oil consumption and contributes to one-third of the Nation’s greenhouse gas (GHG) emissions.2 After housing, transportation 

is the second biggest monthly expense for most American 

families.3 As the President said in his recent energy 

speech, ‘‘In an economy that relies so heavily on oil, rising 

prices at the pump affect everybody.’’ Emphasizing that 

‘‘there are no quick fixes,’’ the President outlined a portfolio of actions which, taken together, could cut U.S. oil imports by a third by 2025. 

The draft legislation being addressed today focuses on 

three areas: 

• Clean energy in the Federal sector 

• Energy efficiency in the industrial sector and 

building codes 

• Alternative fuel vehicles 

General comments are provided on each of these three 

areas, but the Department has no comments on the specific content of the legislation, as these bills are currently 

under review by the Administration. 

CLEAN ENERGY IN THE FEDERAL SECTOR

Constructing and operating Federal facilities in a sustainable manner has numerous well-documented benefits, 

including: • Saving taxpayer dollars through optimized lifecycle cost-effective actions; 


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• Enhancing employee productivity through the provision of safe, healthy and environmentally appealing 

workplaces; 

• Reducing environmental impacts through decreased energy, water, and materials use; and 

• Moving the overall market conditions toward 

higher performance, through the Federal demand for 

sustainable facilities. 

These benefits are sizable, in part, due to the size of the 

Federal Government. The Federal Government is estimated to use about 1.6 percent of the Nation’s total energy, occupy nearly 500,000 buildings, operate more than 

600,000 vehicles, and purchase more than $500 billion per 

year in goods and services. 

The Federal government is making substantial progress 

toward its sustainability goals mandated in EPAct 2005, 

EISA 2007, and Executive Order 13514, signed by President Obama in October, 2009. For example, in FY 2010, 

the Federal Government reported a 15 percent decrease in 

site-delivered Btu per square foot compared with baseline 

year 2003. This meets the EISA statutory reduction goal 

for FY 2010. 

FY 2010 was also the highest level year to date for the 

use of Energy Savings Performance Contracting with these 

contacts totaling more than $560 million in investment in 

Federal facilities. This type of performance-based contracting is extremely important to meeting the Federal 

sustainability goals due to the pressures on Federal appropriations and increasing goals for reduced energy intensity, energy savings goals that increase to 30% by 2015. 

In FY 2010, Federal agencies also reported purchasing 

or producing renewable electric energy representing 5.2 

percent of the Federal Government’s electricity use, 

achieving the EPAct 2005 goal of five percent. This more 

than doubled renewable energy use as a percentage of 

total facility electricity use since 2003. The five percent 

goal remains in place until FY 2013, when it will increase 

to 7.5 percent under current statute. Not counted in this 

metric is the significant amount of non-electric renewable 

energy produced and purchased by the Government that 

displaces the need for additional electric generation. This 

includes thermal energy, such as solar hot water and space 

heating, geothermal energy, steam from biomass, and 

landfill methane. 

DOE is also making progress to improve the transparency of Federal building energy efficiency, as required 

under EISA 2007, Section 432. DOE expects to have a 

web-based system that provides information on the energy 

efficiency of metered buildings and on the cost-effective improvement opportunities that exist in Federal facilities 

publicly available by Fall 2011. 


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4http://www.whitehouse.gov/issues/energy-and-environment 

5http://www.energy.gov/news/9582.htm 

6See, for example: McKinsey and Company (2007). Reducing U.S. Greenhouse Gas Emissions: 

How Much at What Cost? (http://www.epa.gov/cleanenergy/documents/suca/cost-effectiveness.pdf) 

and Lazard Associates. Feb. 2009. Levelized Cost of Energy Analysis Version 3.0. 7http://www1.eere.energy.gov/industry/about/pdfs/itp_program_fact_sheet.pdf 

ENERGY EFFICIENCY IN THE INDUSTRIAL SECTOR AND

BUILDING CODES

The Energy Savings and Industrial Competitiveness Act 

(S. 1000) outlines new provisions for building codes, appliance standards, and industrial energy efficiency among 

other areas. 

Energy-conserving appliance standards are one of the 

significant steps the Administration has taken to save energy in homes and businesses nationwide, and pave the 

way toward a clean energy future for our country.4 Since 

January 2009, the Department of Energy has finalized 

new efficiency standards for more than twenty household 

and commercial products, which are projected to cumulatively save consumers between $250 billion and $300 billion over the next 20 years.5 These standards can provide 

an immediate and economically responsible way to increase the nation’s energy security while protecting the environment. Improvements in energy efficiency can be made 

today to yield significant near-term and long-term economic and environmental benefits for the nation.6

In 2007, Congress recognized the importance of negotiated consensus standards, amending the Energy Policy 

and Conservation Act (EPCA) to allow for an expedited 

rulemaking process in the event a representative group of 

stakeholders could reach agreement. Several DOE rules 

currently under development and review overlap with the 

proposed consensus standards. Although the agency cannot 

presuppose the level of the final standards, it is seriously 

considering these consensus recommendations. The agency’s preliminary analyses accompanying the proposed rules 

for these standards suggest that the potential net benefits 

from these recommended levels could yield tens of billions 

of dollars in fuel savings and lower greenhouse gas emissions. 

U.S. industry accounts for about one-third of U.S. energy 

use while contributing to about 12% of U.S. Gross Domestic Product.7 Improving industrial energy efficiency will result in saving money and enhancing U.S. competitiveness 

in the world’s manufacturing sector. By partnering with 

the private sector, DOE has already managed to save more 

than 9.3 quadrillion Btu of energy and reduced carbon 

emissions by over 206 million metric tons. 

Supply chain energy efforts can make an important contribution to overall industrial efficiency and the competitive position of domestic suppliers. Analysis suggests that 

a large part of the carbon footprint for many consumer 

products can be attributed to the supply chain—from raw 

materials, transport, and packaging to the energy consumed in manufacturing processes—on the order of 40 to 


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60 percent. DOE and the Environmental Protection Agency 

(EPA) both have existing initiatives that address supply 

chain efficiency, such as Save Energy Now® at DOE and 

ENERGY STAR. For example, through its national Save 

Energy Now® initiative, DOE encourages manufacturing 

companies to engage their supply chains in energy and 

carbon management, while at EPA, ENERGY STAR has 

engaged whole industries to support their customers and 

supply chains in building effective energy management 

programs. Specifically, DOE and EPA develop processes 

and resources to assist companies in promoting energy 

management to their industrial suppliers and customers. 

Save Energy Now® LEADER Companies make a voluntary 

commitment to reduce their energy intensity by 25 percent 

in 10 years. Many of these companies are interested in improving the efficiency of their supply chains as well. ENERGY STAR boasts a growing group of corporations that 

have used ENERGY STAR to influence key suppliers to effectively manage energy. 

DOE is also working with Superior Energy Performance 

(SEP), a voluntary certification program helping to provide 

industrial facilities with a roadmap for achieving continual 

improvement in energy efficiency while maintaining competitiveness. A central element of SEP is implementation 

of the International Organization for Standardization 

(ISO) 50001 energy management standard, with additional 

requirements to achieve and document energy intensity 

improvements. DOE is working through SEP to bring ISO 

50001 to the U.S. Upon its publication this American National Standards Institute-accredited program is anticipated to provide companies with a framework for fostering 

energy efficiency at the plant level and a consistent methodology for measuring and validating energy efficiency and 

intensity improvements. This new framework has the opportunity to be an important tool to integrate into supply 

chain efforts. 

ALTERNATIVE FUEL VEHICLES

Few technologies hold greater promise for reducing our 

dependence on oil than alternative fuel vehicles. The Administration has set a goal to have the United States become the first country with a million electric vehicles on 

the road. Meeting this goal will help the United States become a leader in the clean energy economy, while capitalizing on the ingenuity of American industry. Manufacturing products needed for the clean energy economy will 

generate long term economic strength in the U.S., creating 

jobs across the country while reducing air pollution and 

greenhouse gas emissions. The Administration supports 

the goal of utilizing alternative fuel technologies to break 

our dependence on oil and to move toward a clean energy 

future. The DOE looks forward to working with Congress 

to achieve these objectives. 

DOE’s Vehicle Technologies Program is helping the Nation lead the way in alternative fuel vehicle innovation. 


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DOE has helped reduce the cost of PHEV Lithium Ion batteries to $650 per kilowatt-hour, a 35% reduction from the 

2008 baseline of $1,000 per kilowatt-hour. This is making 

oil alternatives competitive in general while specifically increasing U.S. competitiveness in the global market. 

CONCLUSION

In conclusion, the Department of Energy thanks the 

Subcommittee for the opportunity to comment on these 

proposed initiatives. We look forward to working with Congress to develop strong, effective clean energy policy to ensure U.S. leadership on these global issues and in the 

clean energy economy. I am happy to answer any questions Committee Members may have. 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by the bill S. 

1000, as ordered reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is 

printed in italic, existing law in which no change is proposed is 

shown in roman): 

TABLE OF LAWS AFFECTED 

Energy Conservation and Production Act 

Energy Policy Act of 2005 

Energy Policy and Conservation Act 

Energy Independence and Security Act of 2007 

Title 404—Public Buildings, Property, and Works 

National Energy Conservation Policy Act 

ENERGY CONSERVATION AND PRODUCTION ACT 

Public Law 94–385, as Amended 

AN ACT To amend the Federal Energy Administration Act of 1974 to extend the 

duration of authorities under such Act; to provide an incentive for domestic production; to provide for electric utility rate design initiatives; to provide for energy 

conservation standards for new buildings; to provide for energy conservation assistance for existing buildings and industrial plants; and for other purposes. 

* * * * * * * 

TITLE III—ENERGY CONSERVATION 

STANDARDS FOR NEW BUILDINGS 

DEFINITIONS

SEC. 303. As used in this title: 

(1) The term ‘‘Administrator’’ means the Administrator of the 

Federal Energy Administration; except that after such Administration ceases to exist, such term means any officer of the 

United States designated by the President for purposes of this 

title. 

* * * * * * * 


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(16) The term ‘‘ASHRAE’’ means the American Society of 

Heating, Refrigerating, and Air-Conditioning Engineers. 

(17) IECC.—The term ‘‘IECC’’ means the International Energy Conservation Code. 

(18) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has the meaning 

given the term in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103). 

øSEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES. 

ø(a) CONSIDERATION AND DETERMINATION RESPECTING RESIDENTIAL BUILDING ENERGY CODES.—(1) Not later than 2 years after 

the date of the enactment o the Energy Policy Act of 1992, each 

State shall certify to the Secretary that it has reviewed the provisions of its residential building code regarding energy efficiency 

and made a determination as to whether it is appropriate for such 

State to revise such residential building code provisions to meet or 

exceed CABO Model Energy Code, 1992. 

ø(2) The determination referred to in paragraph (1) shall be— 

ø(A) made after public notice and hearing; 

ø(B) in writing; 

ø(C) based upon findings included in such determination and 

upon the evidence presented at the hearing; and 

ø(D) available to the public. 

ø(3) Each State may, to the extent consistent with otherwise applicable State law, revise the provisions of its residential building 

code regarding energy efficiency to meet or exceed CABO Model 

Energy Code, 1992, or may decline to make such revisions. 

ø(4) If a State makes a determination under paragraph (1) that 

it is not appropriate for such State to revise its residential building 

code, such State shall submit to the Secretary, in writing, the reasons for such determination, and such statement shall be available 

to the public. 

ø(5)(A) Whenever CABO Model Energy Code, 1992, (or any successor of such code) is revised, the Secretary shall, not later than 

12 months after such revision, determine whether such revision 

would improve energy efficiency in residential buildings. The Secretary shall publish notice of such determination in the Federal 

Register. 

ø(B) If the Secretary makes an affirmative determination under 

subparagraph (A), each State shall, not later than 2 years after the 

date of the publication of such determination, certify that it has reviewed the provisions of its residential building code regarding energy efficiency and made a determination as to whether it is appropriate for such State to revise such residential building code provisions to meet or exceed the revised code for which the Secretary 

made such determination. 

ø(C) Paragraphs (2), (3), and (4) shall apply to any determination 

made under subparagraph (B). 

ø(b) CERTIFICATION OF COMMERCIAL BUILDING ENERGY CODE UPDATES.—(1) Not later 2 years after the date of the enactment of the 

Energy Policy Act of 1992, each State shall certify to the Secretary 

that it has reviewed and updated the provisions of its commercial 

building code regarding energy efficiency. Such certification shall 

include a demonstration that such State’s code provisions meet or 

exceed the requirements of ASHRAE Standard 90.1–1989. 


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ø(2)(A) Whenever the provisions of ASHRAE Standard 90.1–1989 

(or any successor standard) regarding energy efficiency in commercial buildings are revised, the Secretary shall, not later than 12 

months after the date of such revision, determine whether such revision will improve energy efficiency in commercial buildings. The 

Secretary shall publish a notice of such determination in the Federal Register. 

ø(B)(i) If the Secretary makes an affirmative determination 

under subparagraph (A), each State shall, not later than 2 years 

after the date of the publication of such determination, certify that 

it has reviewed and updated the provisions of its commercial building code regarding energy efficiency in accordance with the revised 

standard for which such determination was made. Such certification shall include a demonstration that the provisions of such 

State’s commercial building code regarding energy efficiency meet 

or exceed such revised standard. 

ø(ii) If the Secretary makes a determination under subparagraph 

(A) that such revised standard will not improve energy efficiency 

in commercial buildings, State commercial building code provisions 

regarding energy efficiency shall meet or exceed ASHRAE Standard 90.1–1989, or if such standard has been revised, the last revised standard for which the Secretary has made an affirmative determination under subparagraph (A). 

ø(c) EXTENSIONS.—The Secretary shall permit extensions of the 

deadlines for the certification requirements under subsections (a) 

and (b) if a State can demonstrate that it has made a good faith 

effort to comply with such requirements and that it has made significant progress in doing so. 

ø(d) TECHNICAL ASSISTANCE.—The Secretary shall provide technical assistance to States to implement the requirements of this 

section, and to improve and implement State residential and commercial building energy efficiency codes or to otherwise promote 

the design and construction of energy efficient buildings. 

ø(e) AVAILABILITY OF INCENTIVE FUNDING.—(1) The Secretary 

shall provide incentive funding to States to implement the requirements of this section, and to improve and implement State residential and commercial building energy efficiency codes, including increasing and verifying compliance with such codes. In determining 

whether, and in what amount, to provide incentive funding under 

this subsection, the Secretary shall consider the actions proposed 

by the State to implement the requirements of this section, to improve and implement residential and commercial building energy 

efficiency codes, and to promote building energy efficiency through 

the use of such codes. 

ø(2) Additional funding shall be provided under this subsection 

for implementation of a plan to achieve and document at least a 

90 percent rate of compliance with residential and commercial 

building energy efficiency codes, based on energy performance— 

ø(A) to a State that has adopted and is implementing, on a 

statewide basis— 

ø(i) a residential building energy efficiency code that 

meets or exceeds the requirements of the 2004 International Energy Conservation Code, or any succeeding 

version of that code that has received an affirmative deterVerDate Mar 15 2010 04:41 Sep 09, 2011 Jkt 099010 PO 00000 Frm 00037 Fmt 6659 Sfmt 6602 E:\HR\OC\SR071.XXX SR071

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mination from the Secretary under subsection (a)(5)(A); 

and 

ø(ii) a commercial building energy efficiency code that 

meets or exceeds the requirements of the ASHRAE Standard 90.1–2004, or any succeeding version of that standard 

that has received an affirmative determination from the 

Secretary under subsection (b)(2)(A); or 

ø(B) in a State in which there is no statewide energy code 

either for residential buildings or for commercial buildings, to 

a local government that has adopted and is implementing residential and commercial building energy efficiency codes, as described in subparagraph (A). 

ø(3) Of the amounts made available under this subsection, the 

Secretary may use $500,000 for each fiscal year to train State and 

local officials to implement codes described in paragraph (2). 

ø(4)(A) There are authorized to be appropriated to carry out this 

subsection— 

ø(i) $25,000,000 for each of fiscal years 2006 through 2010; 

and 

ø(ii) such sums as are necessary for fiscal year 2011 and 

each fiscal year thereafter. 

ø(B) Funding provided to States under paragraph (2) for each fiscal year shall not exceed one-half of the excess of funding under 

this subsection over $5,000,000 for the fiscal year.¿ 

SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES. 

(a) UPDATING NATIONAL MODEL BUILDING ENERGY CODES.— 

(1) IN GENERAL.—The Secretary shall— 

(A) support the development of national model building 

energy codes, including the updating of ASHRAE and 

IECC model building energy codes and standards; 

(B) encourage and support the adoption of building energy codes by States, Indian tribes, and, as appropriate, by 

local governments that meet or exceed the national model 

building energy codes, or achieve equivalent or greater energy savings; and 

(C) support full compliance with the State and local 

codes. 

(2) TARGETS.— 

(A) IN GENERAL.—The Secretary shall support the updating of the national model building energy codes for residential buildings and commercial buildings to enable the 

achievement of energy savings targets established under 

subparagraph (B). 

(B) TARGETS.— 

(i) 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 national 

model building energy codes by establishing 1 or more 

aggregate energy savings targets to achieve the purposes of this section. 

(ii) SEPARATE TARGETS.—The Secretary may establish separate targets for commercial and residential 

buildings. 


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(iii) BASELINES.—The baseline for updating national 

model codes shall be the 2009 IECC for residential 

buildings and ASHRAE Standard 90.1–2010 for commercial buildings. 

(iv) 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— 

(aa) is at the maximum level of energy efficiency that is technologically feasible and 

lifecycle cost effective, while accounting for the 

economic considerations under subparagraph 

(D); 

(bb) is higher than the preceding target; and 

(cc) 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 subclause (I), prior to the applicable year, the Secretary may set a different target year for any of 

model codes described in clause (i) if the Secretary 

determines that a higher target cannot be met. 

(IV) SMALL BUSINESS.—When establishing targets under this subparagraph 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). 

(C) APPLIANCE STANDARDS AND OTHER FACTORS AFFECT- ING BUILDING ENERGY USE.—In establishing building code 

targets under subparagraph (B), the Secretary shall develop 

and adjust the targets in recognition of potential savings 

and costs relating to— 

(i) efficiency gains made in appliances, lighting, windows, insulation, and building envelope sealing; 

(ii) advancement of distributed generation and onsite renewable power generation technologies; 

(iii) equipment improvements for heating, cooling, 

and ventilation systems; 

(iv) building management systems and SmartGrid 

technologies to reduce energy use; and 

(v) other technologies, practices, and building systems that the Secretary considers appropriate regarding building plug load—and other energy uses. 

(D) ECONOMIC CONSIDERATIONS.—In establishing and revising building code targets under subparagraph (B), the 


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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. 

(3) TECHNICAL ASSISTANCE TO MODEL CODESETTING AND

STANDARD DEVELOPMENT ORGANIZATIONS.— (A) IN GENERAL—The Secretary shall, on a timely basis, 

provide technical assistance to model code-setting and 

standard development organizations. 

(B) ASSISTANCE.—The assistance shall include, as requested by the organizations, technical assistance in— 

(i) evaluating code or standards proposals or revisions; 

(ii) building energy analysis and design tools; 

(iii) building demonstrations; 

(iv) developing definitions of energy use intensity and 

building types for use in model codes and standards or 

in evaluating the efficiency impacts of the codes and 

standards; 

(v) performance-based standards; 

(vi) evaluating economic considerations under paragraph (2)(D); and 

(vii) developing model codes by Indian tribes in accordance with tribal law. 

(C) AMENDMENT PROPOSALS.—The Secretary may submit 

timely code and standard amendment proposals to the 

model code-setting and standard development organizations, with supporting evidence, sufficient to enable the 

model building energy codes and standards to meet the targets established under paragraph (2)(B). 

(D) 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. 

(4) DETERMINATION AND ESTABLISHMENT.— (A) REVISION OF MODEL BUILDING CODES AND STAND- ARDS.—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 1 year after the date of the revision, on whether the revision will— 

(i) improve energy efficiency in buildings compared 

to the existing national model building energy code; 

and 

(ii) meet the applicable targets under paragraph 

(2)(B). 

(B) CODES OR STANDARDS NOT MEETING TARGETS.— (i) IN GENERAL.—If the Secretary makes a preliminary determination under subparagraph (A)(ii) that a 

code or standard does not meet the targets established 

under paragraph (2)(B), the Secretary may at the same 

time provide the model code or standard developer 

with proposed changes that would result in a model 


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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 paragraph (2)(D). 

(ii) INCORPORATION OF CHANGES.— (I) IN GENERAL.—On receipt of the proposed 

changes, the model code or standard developer 

shall have an additional 180 days to incorporate 

changes into the model code or standard. 

(II) FINAL DETERMINATION.—A final determination under subparagraph (A) shall be on the modified model code or standard. 

(C) POSITIVE DETERMINATIONS.—If the Secretary makes 

positive final determinations under clauses (i) and (ii) of 

subparagraph (A) or under clause (i) of subparagraph (A) 

if the applicable target has not been established, the revised 

IECC or ASHRAE Standard 90.1 shall be established as 

the relevant national model building energy code. 

(D) ESTABLISHMENT BY SECRETARY.— (i) IN GENERAL.—If the Secretary makes a negative 

final determination under subparagraph (A)(ii), the 

Secretary shall at the same time establish a modified 

national model building energy code. 

(ii) CODES OR STANDARDS NOT UPDATED.—If the 

IECC or ASHRAE Standard 90.1 is not revised by a 

target date under paragraph (2), the Secretary shall, 

not later than 90 days after the target date, issue a 

draft of, and not later than 1 year after the target date, 

establish, a modified national model building energy 

code. 

(iii) REQUIREMENTS.—Any national model building 

energy code established under this subparagraph 

shall— 

(I) meet the targets established under paragraph 

(2); 

(II) achieve the maximum level of energy savings 

that is technologically feasible and life-cycle costeffective, while accounting for the economic considerations under paragraph (2)(D); 

(III) be based on the latest edition of the IECC 

or ASHRAE Standard 90.1, including any subsequent amendments, addenda, or additions, but 

may also consider other model codes or standards; 

and 

(IV) observe and protect the intellectual property 

rights of nationally recognized code and standards 

developers. 

(5) ADMINISTRATION.—In carrying out this section, the Secretary shall— 

(A) publish notice of targets, determinations, and national model building energy codes under this section in the 


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42 

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 

(B) provide an opportunity for public comment on targets, 

determinations, and national model building energy codes 

under this section. 

(b) STATE AND INDIAN TRIBE CERTIFICATION OF BUILDING EN- ERGY CODE UPDATES.— (1) REVIEW AND UPDATING OF CODES BY EACH STATE AND IN- DIAN TRIBE.— (A) IN GENERAL.—Not later than 2 years after the date on 

which a national model building energy code is established 

or revised under subsection (a), each State and Indian tribe 

shall certify whether or not the State and Indian tribe, respectively, has reviewed and updated the energy provisions 

of the building code of the State and Indian tribe, respectively. 

(B) DEMONSTRATION.—The certification shall include a 

demonstration of whether or not the code provisions that 

are in effect throughout the State and Indian tribe— 

(i) meet or exceed the revised model code; or 

(ii) achieve equivalent or greater energy savings. 

(C) NO MODEL CODE UPDATE.—If the Secretary fails to revise a national model building energy code by the date 

specified in subsection (a)(4), each State and Indian tribe 

shall, not later than 2 years after the specified date, certify 

whether or not the State and Indian tribe, respectively, has 

reviewed and updated the energy provisions of the building 

code of the State and Indian tribe, respectively, to meet or 

exceed the target in subsection (a)(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 national 

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 national model building energy 

code. 


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(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 MEET TARGETS.— 

(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. 


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(2) FEDERAL SUPPORT.—Any State or Indian tribe for which 

the Secretary has not accepted a certification by a deadline 

under subsection (b) or (c) may be ineligible 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 accepted 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 national 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 a 

result of the targets established under subsection 

(a)(2)(B). 

(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 requirements of this section, including procedures and technical analysis for States and Indian tribes— 

(1) to demonstrate that the code provisions of the States and 

Indian tribes achieve equivalent or greater energy savings than 

the national model building energy codes; 

(2) to document the rate of compliance with a building energy 

code; and 

(3) to improve and implement State residential and commercial building energy codes or 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. 


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(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 

accepted 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 ineligible 

under this section. 

(3) TRAINING.—Of the amounts made available under this 

subsection, the State 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 ADVANCE 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 

national model building energy codes; and 

(B) to meet targets under subsection (a)(2), 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) VOLUNTARY CODES AND STANDARDS.—Nothwithstanding any 

other provision of this section, any model building code or standard 

established under this section shall not be binding on a State, local 

government, or Indian tribe. 


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(j) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to carry out this section $200,000,000, to remain 

available until expended. 

* * * * * * * 

øSEC. 307. SUPPORT FOR VOLUNTARY BUILDING ENERGY CODES. 

ø(a) IN GENERAL.—Not later than 1 year after the date of the enactment of the Energy Policy Act of 1992, the Secretary, after consulting with the Secretary of Housing and Urban Development, the 

Secretary of Veterans Affairs, other appropriate Federal agencies, 

CABO, ASHRAE, the National Conference of States on Building 

Codes and Standards, and another appropriate building codes and 

standards organization, shall support the upgrading of voluntary 

building energy codes for new residential and commercial buildings. Such support shall include— 

ø(1) a compilation of data and other information regarding 

building energy efficiency standards and codes in the possession of the Federal Government, State and local governments, 

and industry organizations: 

ø(2) assistance in improving the technical basis for such 

standards and codes; 

ø(3) assistance in determining the cost-effectiveness and the 

technical feasibility of the energy efficiency measures included 

in such standards and codes; and 

ø(4) assistance in identifying appropriate measures with regard to radon and other indoor air pollutants. 

ø(b) REVIEW.—The Secretary shall periodically review the technical and economic basis of voluntary building energy codes and, 

based upon ongoing research activities— 

ø(1) recommend amendments to such codes including measures with regard to radon and other indoor air pollutants; 

ø(2) seek adoption of all technologically feasible and economically justified energy efficiency measures; and 

ø(3) otherwise participate in any industry process for review 

and modification of codes.¿ 

* * * * * * * 

ENERGY POLICY ACT OF 2005 

AN ACT To ensure jobs for our future with secure, affordable, and reliable energy. 

* * * * * * * 

TITLE II—RENEWABLE ENERGY 

Subtitle A—General Provision 

* * * * * * * 

SEC. 203. FEDERAL PURCHASE REQUIREMENT. 

(a) REQUIREMENT.—The President, acting through the Secretary, 

shall seek to ensure that, to the extent economically feasible and 

technically practicable, of the total amount of øelectric energy¿ 

electric and thermal energy the Federal Government consumes during any fiscal year, the following amounts shall be renewable energy: 


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(1) Not less than 3 percent in fiscal years 2007 through 2009. 

(2) Not less than 5 percent in fiscal years 2010 through 2012. 

(3) Not less than 7.5 percent in fiscal year 2013 and each fiscal year thereafter. 

(b) DEFINITIONS.—In this section: 

* * * * * * * 

(2) RENEWABLE ENERGY.—The term ‘‘renewable energy’’ 

means øelectric energy¿ electric and thermal energy generated 

from solar, wind, biomass, landfill gas, ocean (including tidal, 

wave, current, and thermal), geothermal, municipal solid 

waste, or new hydreoelectric generation capacity achieved from 

increased efficiency or additions of new capacity at an existing 

hydroelectric project. 

* * * * * * * 

(c) CALCULATION.—For purposes of determining compliance with 

the requirement of this section, the amount of renewable energy 

shall be doubled if— 

(1) the renewable energy is produced and used on-site at a 

Federal facility; 

(2) the renewable energy is produced on Federal lands and 

used at a Federal facility; or 

(3) the renewable energy is produced on Indian land as defined in title XXVI or the Energy Policy Act of 1992 (25 U.S.C. 

3501 et seq.) and used at a Federal facility. 

(d) SEPARATE CALCULATION.—Renewable energy produced at a 

Federal facility, on Federal land, or on Indian land (as defined in 

section 2601 of the Energy Policy Act of 1992 (25 U.S.C. 3501))— 

(1) shall be calculated separately from renewable energy used; 

and 

(2) may be used individually or in combination to comply 

with subsection (a). 

ø(d)¿ (e) REPORT.—Not later than April 15, 2007, and every 2 

years thereafter, the Secretary shall provide a report to Congress 

on the progress of the Federal Government in meeting the goals established by this section. 

* * * * * * * 

TITLE XVII—INCENTIVES FOR INNOVATIVE 

TECHNOLOGIES 

* * * * * * * 

SEC. 1706. BUILDING RETROFIT FINANCING PROGRAM. 

(a) DEFINITIONS.—In this section: 

(1) CREDIT SUPPORT.—The term ‘‘credit support’’ means a 

guarantee or commitment to issue a guarantee or other forms 

of credit enhancement to ameliorate risks for efficiency obligations. 

(2) EFFICIENCY OBLIGATION.—The term ‘‘efficiency obligation’’ 

means a debt or repayment obligation incurred in connection 

with financing a project, or a portfolio of such debt or payment 

obligations. 

(3) PROJECT.—The term ‘‘project’’ means the installation and 

implementation of efficiency, advanced metering, distributed 


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generation, or renewable energy technologies and measures in a 

building (or in multiple buildings on a given property) that are 

expected to increase the energy efficiency of the building (including fixtures) in accordance with criteria established by the Secretary. 

(b) ELIGIBLE PROJECTS.— 

(1) IN GENERAL.—Notwithstanding sections 1703 and 1705, 

the Secretary may provide credit support under this section, in 

accordance with section 1702. 

(2) INCLUSIONS.—Buildings eligible for credit support under 

this section include commercial, multifamily residential, industrial, municipal, government, institution of higher education, 

school, and hospital facilities that satisfy criteria established by 

the Secretary. 

(c) GUIDELINES.— 

(1) IN GENERAL.—Not later than 180 days after the date of 

enactment of this section, the Secretary shall— 

(A) establish guidelines for credit support provided under 

this section; and 

(B) publish the guidelines in the Federal Register; and 

(C) provide for an opportunity for public comment on the 

guidelines. 

(2) REQUIREMENTS.—The guidelines established by the Secretary under this subsection shall include— 

(A) standards for assessing the energy savings that could 

reasonably be expected to result from a project; 

(B) examples of financing mechanisms (and portfolios of 

such financing mechanisms) that qualify as efficiency obligations; 

(C) the threshold levels of energy savings that a project, 

at the time of issuance of credit support, shall be reasonably expected to achieve to be eligible for credit support; 

(D) the eligibility criteria the Secretary determines to be 

necessary for making credit support available under this 

section; and 

(E) notwithstanding subsections (d)(3) and (g)(2)(B) of 

section 1702, any lien priority requirements that the Secretary determines to be necessary, in consultation with tip 

Director of the Office of Management and Budget, which 

may include— 

(i) mechanisms to preserve prior lien positions of 

mortgage lenders and other creditors in buildings eligible for credit support; 

(ii) remedies available to the Secretary under chapter 

176 of title 28, United States Code, in the event of default on the efficiency obligation by the borrower; and 

(iii) measures to limit the exposure of the Secretary 

to financial risk in the event of default, such as— 

(I) the collection of a credit subsidy fee from the 

borrower as a loan loss reserve, taking into account the limitation on credit support under subsection (d); 

(II) minimum debt-to-income levels of the borrower; 


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(III) minimum levels of value relative to outstanding mortgage or other debt on a building eligible for credit support; 

(IV) allowable thresholds for the percent of the 

efficiency obligation relative to the amount of any 

mortgage or other debt on an eligible building; 

(V) analysis of historic and anticipated occupancy levels and rental income of an eligible building; 

(VI) requirements of third-party contractors to 

guarantee energy savings that will result from a 

retrofit project, and whether financing on the efficiency obligation will amortize from the energy 

savings; 

(VII) requirements that the retrofit project incorporate protocols to measure and verify, energy savings; and 

(VIII) recovery of payments equally by the Secretary and the retrofit. 

(3) EFFICIENCY OBLIGATIONS.—The financing mechanisms 

qualified by the Secretary under paragraph(2)(B) may include— 

(A) loans, including loans made by the Federal Financing Bank; 

(B) power purchase agreements, including energy efficiency power purchase agreements; 

(C) energy services agreements, including energy performance contracts; 

(D) property assessed clean energy bonds and other tax 

assessment-based financing mechanisms; 

(E) aggregate on-meter agreements that finance retrofit 

projects; and 

(F) any other efficiency obligations the Secretary determines to be appropriate. 

(4) PRIORITIES.—In carrying out this section, the Secretary 

shall prioritize— 

(A) the maximization of energy savings with the available 

credit support funding; 

(B) the establishment of a clear application and approval 

process that allows private building owners, lenders, and 

investors to reasonably expect to receive credit support for 

projects that conform to guidelines; 

(C) the distribution of projects receiving credit support 

under this section across States or geographical regions of 

the United States; and 

(D) projects designed to achieve whole building retrofits. 

(d) LIMITATION.—Notwithstanding section 1702(c), the Secretary 

shall not issue credit support under this section in an amount that 

exceeds— 

(1) 90 percent of the principal amount of the efficiency obligation that is the subject of the credit support; or 

(2) $10,000,000 for any single project. 

(e) AGGREGATION OF PROJECTS.—To the extent provided in the 

guidelines developed in accordance with subsection (c), the Secretary 

may issue credit support on a portfolio, or pool of projects, that are 


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not required to be geographically contiguous, if each efficiency obligation in the pool fulfills the requirements described in this section. 

(f) APPLICATION.— 

(1) IN GENERAL.—To be eligible to receive credit support 

under this section, the applicant shall submit to the Secretary 

an application at such time, in such manner, and containing 

such information as the Secretary determines to be necessary. 

(2) CONTENTS.—An application submitted under this section 

shall include assurances by the applicant that— 

(A) each contractor carrying out the project meets minimum experience level criteria, including local retrofit experience, as determined by the Secretary; 

(B) the project is reasonably expected to achieve energy 

savings, as set forth in the application using any methodology that meets the standards described in the program 

guidelines; 

(C) the project meets any technical criteria described in 

the program guidelines; 

(D) the recipient of the credit support and the parties to 

the efficiency obligation will provide the Secretary with— 

(i) any information the Secretary requests to assess 

the energy savings that result from the project, including historical energy usage data, a simulation-based 

benchmark, and detailed descriptions of the building 

work, as described in the program guidelines; and 

(ii) permission to access information relating to 

building operations and usage for the period described 

in the program guidelines; and 

(E) any other assurances that the Secretary determines to 

be necessary. 

(3) DETERMINATION.—Not later than 90 days after receiving 

an application, the Secretary shall make a final determination 

on the application, which may include requests for additional 

information. 

(g) FEES.— 

(1) IN GENERAL.—In addition to the fees required by section 

1702(h)(1), the Secretary may charge reasonable fees for credit 

support provided under this section. 

(2) AVAILABILITY.—Fees collected under this section shall be 

subject to section 170(h)(2). 

(h) UNDERWRITING.—The Secretary may delegate the underwriting activities under this section to 1 or more entities that the 

Secretary determines to be qualified. 

(i) REPORT.—Not later than 1 year after commencement of the 

program, the Secretary shall submit to the appropriate committees 

of Congress a report that describes in reasonable detail— 

(1) the manner in which this section is being carried out; 

(2) the number and type of projects supported; 

(3) the types of funding mechanisms used to provide credit 

support to projects; 

(4) the energy savings expected to result from projects supported by this section; 

(5) any tracking efforts the Secretary is using to calculate the 

actual energy savings produced by the projects; and 


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(6) any plans to improve the tracking efforts described in 

paragraph (5). 

(j) FUNDING.— (1) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to the Secretary to carry out this section 

$400,000,000 for the period of fiscal years 2012 through 2021, 

to remain available until expended. 

(2) ADMINISTRATIVE COSTS.—Not more than 1 percent of any 

amounts made available to the Secretary under paragraph (1) 

may be used by the Secretary for administrative costs incurred 

in carrying out this section. 

* * * * * * * 

ENERGY POLICY AND CONSERVATION ACT 

Public Law 94–163, as amended 

AN ACT TO increase domestic energy supplies and availability; to restrain energy 

demand; to prepare for energy emergencies; and for other purposes. 

* * * * * * * 

TABLE OF CONTENTS

* * * * * * * 

TITLE III—IMPROVING ENERGY EFFICIENCY 

* * * * * * * 

PART E—INDUSTRIAL ENERGY EFFICIENCY 

Sec. 371. Definitions. 

Sec. 372. Survey and Registry. 

Sec. 373. Waste energy recovery incentive grant program. 

Sec. 374. Additional incentives for recovery, utilization and prevention of industrial 

waste energy. 

Sec. 375. Clean Energy Application Centers. 

Sec. 376. Sustainable manufacturing initiative. 

* * * * * * * 

TITLE III—IMPROVING ENERGY EFFICIENCY 

* * * * * * * 

PART B—ENERGY CONSERVATION PROGRAM FOR 

CONSUMER PRODUCTS OTHER THAN AUTOMOBILES 

* * * * * * * 

SEC. 324A. ENERGY STAR PROGRAM. 

(a) IN GENERAL.—There is established within the Department of 

Energy and the Environmental Protection Agency a voluntary program to identify and promote energy-efficient products and buildings in order to reduce energy consumption, improve energy security, and reduce pollution through voluntary labeling of, or other 

forms of communication about, products and buildings that meet 

the highest energy conservation standards. 

* * * * * * * 


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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. 


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(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 IMPACT ON CLIMATE CHANGE.—For purposes of 

this section, the impact on climate change shall not be a factor in 

determining supply chain efficiency. 

(h) 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. 

(i) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to carry out this section $10,000,000 for the period 

of fiscal years 2012 through 2021. 

* * * * * * * 

PART E—INDUSTRIAL ENERGY EFFICIENCY 

* * * * * * * 

SEC. 373. WASTE ENERGY RECOVERY INCENTIVE GRANT PROGRAM. 

* * * * * * * 

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Secretary— 

(1) to make grants to projects and utilities under subsection 

(b)— 

ø(A) $100,000,000 for fiscal year 2008 and $200,000,000 

for each of fiscal years 2009 through 2012; and¿ 

(A) $100,000 000 for fiscal year 2008; 

(B) $200,000,000 for each of fiscal years 2009 and 2010; 

(C) $100,000,000 for each of fiscal years 2011 and 2012; 

and 

ø(B)¿ (D) such additional amounts for fiscal year 2008 

and each fiscal year thereafter as may be necessary for administration of the waste energy recovery incentive grant 

program; and 

* * * * * * * 

SEC. 375. ENERGY APPLICATION CENTERS. 

* * * * * * * 

SEC. 376. SUSTAINABLE MANUFACTURING INITIATIVE. 

(a) IN GENERAL.—As part of the Industrial Technologies Program 

of the Department of Energy, the Secretary shall carry out a sustainable manufacturing initiative under which 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 crosscutting 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, inVerDate Mar 15 2010 04:41 Sep 09, 2011 Jkt 099010 PO 00000 Frm 00053 Fmt 6659 Sfmt 6603 E:\HR\OC\SR071.XXX SR071

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cluding the National Institute of Standards and Technology to accelerate adoption of new and existing technologies or processes that 

improve energy efficiency. 

(c) RESEARCH AND DEVELOPMENT PROGRAM FOR SUSTAINABLE

MANUFACTURING AND INDUSTRIAL TECHNOLOGIES AND PROC- ESSES.—As part of the Industrial Technologies Program of the Department of Energy, the Secretary shall carry out a joint industrygovernment partnership program to research, develop, and demonstrate new sustainable manufacturing and industrial technologies 

and processes that maximize the energy efficiency of industrial systems, reduce pollution, and conserve natural resources. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be to carry out this section $10,000,00 for the period of fiscal years 

2012 through 2021. 

* * * * * * * 

SEC. 399A. ENERGY SUSTAINABILITY AND EFFICIENCY GRANTS AND 

LOANS FOR INSTITUTIONS AND INDUSTRY. 

* * * * * * * 

(g) LOANS FOR ENERGY EFFICIENCY IMPROVEMENT AND ENERGY

SUSTAINABILITY.— 

(1) IN GENERAL.—Subject to the availability of appropriated 

funds, the Secretary shall provide loans to institutional entities 

for the purpose of implementing energy efficiency improvements and sustainable energy infrastructure. 

* * * * * * * 

(h) STATE PARTNERSHIP INDUSTRIAL ENERGY EFFICIENCY RE- VOLVING LOAN PROGRAM.— (1) IN GENERAL.—The Secretary shall carry out a program 

under which the Secretary shall provide grants to eligible lenders to pay the Federal share of creating a revolving loan program under which loans are provided to commercial and industrial manufacturers to implement commercially available technologies or processes that significantly— 

(A) reduce systems energy intensity, including the use of 

energy-intensive feedstocks; and 

(B) improve the industrial competitiveness of the United 

States. 

(2) ELIGIBLE LENDERS.—To be eligible to receive cost-matched 

Federal funds under this subsection, a lender shall— 

(A) be a community and economic development lender 

that the Secretary certifies meets the requirements of this 

subsection; 

(B) lead a partnership that includes participation by, at 

a minimum— 

(i) a State government agency; and 

(ii) a private financial institution or other provider of 

loan capital; 

(C) submit an application to the Secretary, and receive 

the approval of the Secretary, for cost-matched Federal 

funds to carry out a loan program described in paragraph 

(1); and 

(D) ensure that non-Federal funds are provided to match, 

on at least a dollar-for-dollar basis, the amount of Federal 


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55 

funds that are provided to carry out a revolving loan program described in paragraph (1). 

(3) AWARD.—The amount of cost-matched Federal funds pro- vided to an eligible lender shall not exceed $100,000,000 for any 

fiscal year. 

(4) RECAPTURE OF AWARDS.— (A) IN GENERAL.—An eligible lender that receives an 

award under paragraph (1) shall be required to repay to 

the Secretary an amount of cost-match Federal funds, as 

determined by the Secretary under subparagraph (B), if the 

eligible lender is unable or unwilling to operate a program 

described in this subsection for a period of not less than 10 

years beginning on the date on which the eligible lender 

first receives funds made available through the award. 

(B) DETERMINATION BY SECRETARY.—The Secretary shall 

determine the amount of cost-match Federal funds that an 

eligible lender shall be required to repay to the Secretary 

under subparagraph (A) based on the consideration by the 

Secretary of— 

(i) the amount of non-Federal funds matched by the 

eligible lender; 

(ii) the amount of loan losses incurred by the revolving loan program described in paragraph (1); and 

(iii) any other appropriate factor, as determined by 

the Secretary. 

(C) USE OF RECAPTURED COST-MATCH FEDERAL FUNDS.— The Secretary may distribute to eligible lenders under this 

subsection each amount received by the Secretary under 

this paragraph. 

(5) ELIGIBLE PROJECTS.—A program for which cost-matched 

Federal funds are provided under this subsection shall be designed to accelerate the implementation of industrial and commercial applications of technologies or processes (including distributed generation, applications or technologies that use sensors, meters, software, and information networks, controls, and 

drives or that have been installed pursuant to an energy savings performance contract, project, or strategy) that— 

(A) improve energy efficiency, including improvements in 

efficiency and use of water, power factor, or load management; 

(B) enhance the industrial competitiveness of the United 

States; and 

(C) achieve such other goals as the Secretary determines 

to be appropriate. 

(6) EVALUATION.—The Secretary shall evaluate applications 

for cost-matched Federal funds under this subsection on the 

basis of— 

(A) the description of the program to be carried out with 

the cost-matched Federal funds: 

(B) the commitment to provide non-Federal funds in accordance with paragraph (2)(D); 

(C) program sustainability over a 10-year period. 

(D) the capability of the applicant; 

(E) the quantity of energy savings or energy feedstock 

minimization; 


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(F) the advancement of the goal under this Act of 25-percent energy avoidance; 

(G) the ability to fund energy efficient projects not later 

than 120 days after the date of the grant award; and 

(H) such other factors as the Secretary determines appropriate. 

(7) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this subsection, 

$400,000,000 for each of fiscal years 2012 through 2021. 

ø(h)¿ (i) PROGRAM PROCEDURES.—Not later than 180 days after 

the date of enactment of this section, the Secretary shall establish 

procedures for the solicitation and evaluation of potential projects 

for grant and loan funding and administration of the grant and 

loan programs. 

ø(i)¿ (j) AUTHORIZATION.— (1) GRANTS.—There is authorized to be appropriated for the 

cost of grants authorized in subsections (b), (c), and (d) 

$250,000,000 for each of fiscal years 2009 øthrough 2013¿ and 

2010, $100,000,000 for each of fiscal years 2011 and 2012, and 

$250,000,000 for fiscal year 2013, of which not more than 5 

percent may be used for administrative expenses. 

(2) LOANS.—There is authorized to be appropriated for the 

initial cost of direct loans authorized in subsection (g) 

$500,000,000 for each of fiscal years 2009 øthrough 2013¿, and 

2010, $100,000,000 for each of fiscal years 2011 and 2012, and 

$425,000,000 for fiscal year 2013 of which not more than 5 percent may be used for administrative expenses. 

* * * * * * * 

ENERGY INDEPENDENCE AND SECURITY ACT OF 2007 

Public Law 110–140 

AN ACT To move the United States toward greater energy independence and security, to increase the production of clean renewable fuels, to protect consumers, to 

increase the efficiency of products, buildings, and vehicles, to promote research on 

and deploy greenhouse gas capture and storage options, and to improve the energy performance of the Federal Government, and for other purposes. 

* * * * * * * 

TITLE IV—ENERGY SAVINGS IN BUILDING 

AND INDUSTRY 

* * * * * * * 

Subtitle B—High-Performance Commercial 

Buildings 

* * * * * * * 

SEC. 422. ZERO NET ENERGY COMMERCIAL BUILDINGS INITIATIVE. 

* * * * * * * 

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriate to carry out this section— 

(1) $20,000,000 for fiscal year 2008; 


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57 

ø(2) $50,000,000 for each of fiscal years 2009 and 2010; 

ø(3) $100,000,000 for each of fiscal years 2011 and 2012; and 

ø(4) $200,000,000 for each of fiscal years 2013 through 

2018.¿ 

(2) $50,000,000 for each of fiscal years 2009 through 2012; 

(3) $100,000,000 for fiscal 2013; and 

(4) $200,000,000 for each of fiscal years 2014 through 2018. 

* * * * * * * 

Subtitle D—Industrial Energy Efficiency 

* * * * * * * 

SEC. 452. øENERGY-INTENSIVE INDUSTRIES PROGRAM.¿ FUTURE OF 

INDUSTRY PROGRAM. 

(a) DEFINITIONS.—In this section: 

* * * * * * * 

ø(3)¿ (4) FEEDSTOCK.—The term ‘‘feedstock’’ means the raw 

material supplied for use in manufacturing, chemical, and biological processes. 

ø(4)¿ (5) PARTNERSHIP.—The term ‘‘partnership’’ means an 

energy efficiency partnership established under subsection 

(c)(1)(A). 

(5) ENERGY SERVICE PROVIDER.—The term ‘‘energy service 

provider’’ means any private company or similar entity providing technology or services to improve energy efficiency in an 

energy-intensive industry. 

ø(5)¿ (6) PROGRAM.—The term ‘‘program’’ means the energyintensive industries program established under subsection (b). 

* * * * * * * 

(c) PARTNERSHIPS.— 

* * * * * * * 

(2) ELIGIBLE ACTIVITIES.—Partnership activities eligible for 

funding under this subsection include— 

* * * * * * * 

(E) the incorporation of technologies and innovations 

that would significantly improve the energy efficiency and 

utilization of energy-intensive commercial applications; 

øand¿ 

(F) research to establish (through the Industrial Technologies Program and in collaboration with energy-intensive industries) a roadmap process under which— 

(i) industry-specific studies are conducted to determine the intensity of energy use, greenhouse gas emissions, and waste and operating costs, by process and 

subprocess; 

(ii) near-, and mid-, and long-term targets of opportunity are established for synergistic improvements in 

efficiency, sustainability, and resilience; and 

(iii) public-private actionable plans are created to 

achieve roadmap goals; and 


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ø(F)¿ (G) any other activities that the Secretary determines to be appropriate. 

* * * * * * * 

(e) INSTITUTION OF HIGHER EDUCATION-BASED INDUSTRIAL RESEARCH AND ASSESSMENT CENTERS.—øThe Secretary¿ 

(1) IN GENERAL.—The Secretary shall provide funding to institution of higher education-based industrial research and assessment centers, whose purpose shall be— 

ø(1)¿ (A) to identify opportunities for optimizing energy efficiency and environmental performance including assessments 

of sustainable manufacturing goals and the implementation of 

information technology advancements for supply chain analysis, 

logistics, system monitoring, industrial and manufacturing 

processes, and other purpose; 

ø(2)¿ (B) to promote applications of emerging concepts and 

technologies in small- and medium-sized manufacturers; 

ø(3)¿ (C) to promote research and development for the use of 

alternative energy sources to supply heat, power, and new 

feedstocks for energy-intensive industries; 

ø(4)¿ (D) to coordinate with appropriate Federal and State 

research offices, and provide a clearinghouse for industrial 

process and energy efficiency technical assistance resources; 

and 

ø(5)¿ (E) to coordinate with State-accredited technical training centers and community colleges, while ensuring appropriate services to all regions of the United States. 

(2) CENTERS OF EXCELLENCE.— 

(A) IN GENERAL.—The Secretary shall establish a Center 

of Excellence at up to 10 of the highest performing industrial research and assessment centers, as determined by the 

Secretary. 

(B) DUTIES.—A Center of Excellence shall coordinate 

with and advise the industrial research and assessment 

centers located in the region of the Center of Excellence. 

(C) FUNDING.—Subject to the availability of appropriations, of the funds made available under subsection (f), the 

Secretary shall use to support each Center of Excellence not 

less than $500,000 for fiscal year 2012 and each fiscal year 

thereafter, as determined by the Secretary. 

(3) EXPANSION OF CENTERS.—The Secretary shall provide 

funding to establish additional industrial research assessment 

centers at institutions of higher education that do not have industrial research and assessment centers established under 

paragraph (1), taking into account the size of and potential energy efficiency savings for, the manufacturing base within the 

region of the proposed center. 

(4) 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; 


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(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. 

(5) 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) a full-time equivalent employee at each center of excellence whose primary mission shall be to coordinate and 

leverage the efforts of the center 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 centers in the region of the 

center of excellence. 

(6) 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. 

(C) FUNDING.—Subject to the availability of appropriations, of the funds made available under subsection (f), the 

Secretary shall use to carry out this paragraph not less 

than $5,000,000 for fiscal year 2012 and each fiscal year 

thereafter. 

(7) SMALL BUSINESS LOANS.—The Administrator of the Small 

Business Administration shall, to the maximum 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). 

(f) AUTHORIZATION OF APPROPRIATIONS.— (1) IN GENERAL.—There are authorized to be appropriated to 

the Secretary to carry out this section— 

(A) $184,000,000 for fiscal year 2008; 


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(B) $190,000,000 for fiscal year 2009; 

(C) $196,000,000 for fiscal year 2010; 

(D) ø$202,000,000¿ $102,000,000 for fiscal year 2011; 

(E) ø$208,000,000¿ $108,000,000 for fiscal year 2012; 

and 

(F) such sums as are necessary for fiscal year 2013 and 

each fiscal year thereafter. 

* * * * * * * 

TITLE 40—PUBLIC BUILDINGS, PROPERTY, 

AND WORKS 

* * * * * * * 

Subtitle II—Public Buildings And Works 

PART A—GENERAL 

* * * * * * * 

CHAPTER 33—ACQUISITION, CONSTRUCTION, AND 

ALTERATION 

* * * * * * * 

SEC. 3307. CONGRESSIONAL APPROVAL OF PROPOSED PROJECTS. 

* * * * * * * 

(c) INCREASE OF ESTIMATED MAXIMUM COST.—The estimated 

maximum cost of any project approved under this section as set 

forth in any prospectus may be increased by an amount equal to 

any percentage increase, as determined by the Administrator, in 

construction or alteration costs from the date the prospectus is 

transmitted to Congress. The increase authorized by this subsection may not exceed 10 percent of the estimated maximum cost. 

(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). 

ø(d)¿ (e) RESCISSION OF APPROVAL.—If an appropriation is not 

made within one year after the date a project for construction, alteration, or acquisition is approved under subsection (a), the Committee on Environment and Public Works of the Senate or the 

Committee on Transportation and Infrastructure of the House of 


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Representatives by resolution may rescind its approval before an 

appropriation is made. 

ø(e)¿ (f) EMERGENCY LEASES BY THE ADMINISTRATOR.—This section does not prevent the Administrator from entering into emergency leases during any period declared by the President to require 

emergency leasing authority. An emergency lease may not be for 

more than 180 days without approval of a prospectus for the lease 

in accordance with subsection (a). 

ø(f)¿ (g) MINIMUM PERFORMANCE REQUIREMENTS FOR LEASED

SPACE.— With respect to space to be leased the Administrator shall 

include, to the maximum extent practicable, minimum performance 

requirements requiring energy efficiency and the use of renewable 

energy. 

ø(g)¿ (h) LIMITATION ON LEASING CERTAIN SPACE.— 

(1) IN GENERAL.—The Administrator may not lease space to 

accommodate any of the following if the average rental cost of 

leasing the space will exceed $1,500,000: 

(A) Computer and telecommunications operations. 

(B) Secure or sensitive activities related to the national 

defense or security, except when it would be inappropriate 

to locate those activities in a public building or other facility identified with the Government. 

(C) A permanent courtroom, judicial chamber, or administrative office for any United States court. 

(2) EXCEPTION.—The Administrator may lease space with respect to which paragraph (1) applies if the Administrator— 

(A) decides, for reasons set forth in writing, that leasing 

the space is necessary to meet requirements which cannot 

be met in public buildings; and 

(B) submits the reasons to the Committee on Environment and Public Works of the Senate and the Committee 

on Transportation and Infrastructure of the House of Representatives. 

ø(h)¿ (i) DOLLAR AMOUNT ADJUSTMENT.—The Administrator annually may adjust any dollar amount referred to in this section to 

reflect a percentage increase or decrease in construction costs during the prior calendar year, as determined by the composite index 

of construction costs of the Department of Commerce. Any adjustment shall be expeditiously reported to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives. 

* * * * * * * 

NATIONAL ENERGY CONSERVATION POLICY ACT 

Public Law 95–619 

AN ACT For the relief of Jack R. Misner. 

* * * * * * * 

TITLE V—FEDERAL ENERGY INITIATIVES 

* * * * * * * 


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PART B—FEDERAL ENERGY MANAGEMENT 1–1 

* * * * * * * 

SEC. 543. ENERGY MANAGEMENT REQUIREMENTS. 

* * * * * * * 

(e) METERING OF ENERGY USE.— 

(1) DEADLINE.—By October 1, 2012, in accordance with 

guidelines established by the Secretary under paragraph (2), 

all Federal buildings shall, for the purposes of efficient use of 

energy and reduction in the cost of electricity used in such 

buildings, be metered. Each agency shall use, to the maximum 

extent practicable, advanced meters or advanced metering devices that provide data at least daily and that measure at least 

hourly consumption of electricity in the Federal buildings of 

the agency. Not later than October 1, 2016, each agency shall 

provide for equivalent metering of natural gas and steam, in 

accordance with guidelines established by the Secretary under 

paragraph (2). Such data shall be incorporated into existing 

Federal energy tracking systems and made available to Federal facility managers. 

* * * * * * * 

ø(3) PLAN.—Not later than 6 months after the date guidelines are established under paragraph (2), in a report submitted by the agency under section 548(a), each agency shall 

submit to the Secretary a plan describing how the agency will 

implement the requirements of paragraph (1), including (A) 

how the agency will designate personnel primarily responsible 

for achieving the requirements and (B) demonstration by the 

agency, complete with documentation, of any finding that advanced meters or advanced metering devices, as defined in 

paragraph (1), are not practicable.¿ 

(3) PLAN.— 

(A) IN GENERAL.—Not later than 180 days after the date 

on which guidelines are established under paragraph (2), 

in a report submitted by the agency under section 548(a), 

each agency shall submit to the Secretary a plan describing 

the manner in which the agency will implement requirements of paragraph (1), including— 

(i) how the agency will designate personnel primarily 

responsible for achieving the requirements; and 

(ii) a demonstration by the agency, complete with 

documentation, of any finding that advanced meters or 

advanced metering devices (as those terms are used in 

paragraph (1)), are not practicable. 

(B) UPDATES.—Reports submitted under subparagraph 

(A) shall be updated annually. 

(4) BEST PRACTICES REPORT.— (A) IN GENERAL.—Not later than 180 days after the date 

of enactment of the Energy Savings and Industrial Competitiveness Act of 2011, the Secretary of Energy, in consultation with the Secretary of Defense and the Administrator of General Services, shall develop, and issue a report 

on, best practices for the use of advanced metering of enVerDate Mar 15 2010 04:41 Sep 09, 2011 Jkt 099010 PO 00000 Frm 00062 Fmt 6659 Sfmt 6603 E:\HR\OC\SR071.XXX SR071

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ergy use in Federal facilities, buildings, and equipment by 

Federal agencies. 

(B) UPDATING.—The report described under subparagraph (A) shall be updated annually. 

(C) COMPONENTS.—The report shall include, at a minimum— 

(i) summaries and analysis of the reports by agencies 

under paragraph (3); 

(ii) recommendations on standard requirements or 

guidelines for automated energy management systems, 

including— 

(I) potential common communications standards 

to allow data sharing and reporting; 

(II) means of facilitating continuous commissioning of buildings and evidence-based maintenance of buildings and building systems; and 

(III) standards for sufficient levels of security 

and protection against cyber threats to ensure systems cannot be controlled by unauthorized persons; 

and 

(iii) an analysis of— 

(I) the types of advanced metering and monitoring systems being piloted, tested, or installed in 

Federal buildings; and 

(II) existing techniques used within the private 

sector or other non-Federal government buildings. 

(f) USE OF ENERGY AND WATER EFFICIENCY MEASURES IN FEDERAL BUILDINGS.— 

* * * * * * * 

(7) WEB-BASED CERTIFICATION.— 

ø(A) IN GENERAL.—For each facility that meets the criteria established by the Secretary under paragraph (2)(B), 

the energy manager shall use the web-based tracking system under subparagraph (B) to certify compliance with the 

requirements for— 

ø(i) energy and water evaluations under paragraph 

(3); 

ø(ii) implementation of identified energy and water 

measures under paragraph (4); and 

ø(iii) follow-up on implemented measures under 

paragraph (5).¿ 

(A) IN GENERAL.—For each facility that meets the criteria 

established by the Secretary under paragraph (2)(B), the 

energy manager shall use the web-based tracking system 

under subparagraph (B)— 

(i) to certify compliance with the requirements for— 

(I) energy and water evaluations under paragraph (3); 

(II) implementation of identified energy and 

water measures under paragraph (4); and 

(III) follow-up on implemented measures under 

paragraph (5); and 


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(ii) to publish energy and water consumption data on 

an individual facility basis. 

* * * * * * * 

ø(f)¿ (g) LARGE CAPITAL ENERGY INVESTMENTS.— 

* * * * * * * 

TITLE VII—ENERGY SAVINGS PERFORMANCE 

CONTRACTS 

* * * * * * * 

SEC. 804. DEFINITIONS. 

For purposes of this title, the following definitions apply: 

* * * * * * * 

(4) The term ‘‘energy or water conservation measure’’ 

means— 

(A) an energy conservation measure, as defined in section 551; øor¿ 

(B) a water conservation measure that improves the efficiency of water use, is life-cycle cost-effective, and involves 

water conservation, water recycling or reuse, more efficient 

treatment of wastewater or stormwater, improvements in 

operation or maintenance efficiencies, retrofit activities, or 

other related activities, not at a Federal hydroelectric 

facilityø.¿; or 

(C) a measure to support the use of electric vehicles or the 

fueling or charging infrastructure necessary for electric vehicles. 

* * * * * * * 

Æ 


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