69–010 

Calendar No. 73 

115TH CONGRESS REPORT " ! SENATE 1st Session 115–60 

ENERGY SAVINGS AND INDUSTRIAL COMPETITIVENESS 

ACT 

MAY 10, 2017.—Ordered to be printed 

Ms. MURKOWSKI, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany S. 385] 

The Committee on Energy and Natural Resources, to which was 

referred a bill (S. 385) to promote energy savings in residential 

buildings and industry, and for other purposes, having considered 

the same, reports favorably thereon without amendment and recommends that the bill do pass. 

CONTENTS 

Page 

Purpose of the Measure ........................................................................................... 1 

Background and Need ............................................................................................. 1 

Legislative History .................................................................................................. 2 

Committee Recommendation .................................................................................. 3 

Section-by-Section Analysis .................................................................................... 3 

Cost and Budgetary Considerations ....................................................................... 7 

Regulatory Impact Evaluation ................................................................................ 7 

Congressionally Directed Spending ........................................................................ 7 

Executive Communications ..................................................................................... 7 

Changes in Existing Law ........................................................................................ 10 

PURPOSE

The purpose of S. 385 is to promote energy savings in residential 

buildings and industry. 

BACKGROUND AND NEED

Since the 1973 oil embargo and every subsequent energy crisis, 

studies have shown that the U.S. could save energy and money by 

investing in energy efficiency measures. Today, efficient energy use 

and the deployment of more efficient technologies are critical to 

2 

U.S. economic competitiveness and job creation. In addition, efficient energy use reduces pollution that would be associated with 

energy production. Nevertheless, many existing energy efficiency 

technologies and programs have yet to be installed or implemented. 

The National Academies released a 2010 study, entitled Real 

Prospects for Energy Efficiency in the United States, on the potential for energy efficiency in commercial and residential buildings, 

transportation, and manufacturing. The study found that energy efficiency could more than offset the Energy Information Administration’s (EIA) projected increase in U.S. energy consumption through 

2030. 

S. 385, the Energy Savings and Industrial Competitiveness Act, 

proposes a national strategy to increase energy efficiency in the 

residential, commercial, federal, and industrial sectors of our economy. The legislation would use a variety of low-cost tools to reduce 

barriers to private sector efficiency investments and to promote the 

adoption of ‘‘off-the-shelf’’ technologies that will save money for consumers and businesses, make America more energy independent, 

the economy more competitive, and reduce environmental impacts. 

For most energy consuming appliances and equipment, more efficient models or technologies are commercially available today. Increased deployment of these alternatives would pay for themselves 

through energy savings and yield long-term benefits to consumers 

and to the nation. 

EIA reports that commercial and residential buildings combined 

consumed 41 percent of all energy used in 2011. The U.S. industrial sector consumes more energy than any other sector of our 

economy, and the Federal Government is the largest single energy 

consumer in the nation. S. 385’s provisions target these sectors for 

energy-efficiency upgrades, which will promote economic growth in 

all regions of the country. 

LEGISLATIVE HISTORY

S. 385 was introduced by Senators Portman, Shaheen, Bennet, 

Collins, Coons, Franken, Heitkamp, Heller, Manchin, Warner, and 

Wicker on February 15, 2017. 

In the 114th Congress, a similar bill, S. 720, was introduced by 

Senators Portman, Shaheen, Ayotte, Bennet, Cantwell, Collins, 

Coons, Franken, Heller, Hoeven, Manchin, Murkowski, Warner, 

and Wicker on March 11, 2015. The Committee on Energy and 

Natural Resources held a hearing on S. 720 on April 30, 2015 (S. 

Hrg. 114–166). In an open business session on July 30, 2015, the 

bill was favorably reported with amendments by the Committee (S. 

Rept. 114–130). 

The text of S. 720 was included in S. 2012, the Energy Policy 

Modernization Act of 2016, an original bill that was reported by the 

Committee on Energy and Natural Resources on July 30, 2015 and 

passed by the Senate, as amended, on April 26, 2016. 

Also, S. 535, a bill comprised of sections 131–133 (Better Buildings), section 141 (Energy Information for Commercial Buildings), 

and section 421 (Grid-enabled Water Heaters) of S. 720 was introduced by Senators Portman and Shaheen on February 23, 2015, 

and was placed on the Senate Calendar without reference to the 

Committee. It passed the Senate on March 27, 2015, and the House 

3 

of Representatives on April 21, 2015. It was signed by the President on April 30, 2015 (Public Law 114–11). 

Section 121 of S. 720 (Coordination of Information on Assistance 

for Schools) was introduced as S. 600 by Senator Klobuchar on February 26, 2015. Section 431 (Requirements for Federal Buildings) 

and section 432 (Certification Systems for Federal Green Buildings) 

of S. 720 were introduced as S. 869 by Senator Hoeven on March 

26, 2015. The Committee considered these S. 600 and S. 869, along 

with S. 720, at its April 30, 2015, legislative hearing on energy efficiency legislation (S. Hrg. 114–166). 

Companion legislation to S. 720 was introduced in the House of 

Representatives by Representative McKinley on April 30, 2015, as 

H.R. 1277. 

In the 113th Congress, four similar bills, S. 2262, S. 1392, S. 

2074, and S. 761, were introduced by Senators Shaheen and 

Portman. S. 2262 was introduced on April 28, 2014, and S. 1392 

was introduced on July 30, 2013. Cloture to end debate on S. 2262 

was not invoked in the Senate on May 12, 2014. S. 1392 was considered by the Senate on September 19, 2013. S. 2074 and S. 761, 

were introduced on February 27, 2014, and April 18, 2013, respectively. The Committee held a hearing on S. 761 on April 23, 2013 

(S. Hrg. 113–24), and it was favorably reported by the Committee 

on June 3, 2013 (S. Rept. 113–37). 

In the 115th Congress, H.R. 1443 was introduced in the House 

of Representatives by Representative McKinley on March 9, 2017. 

The Committee met in an open business session on March 30, 

2017, and ordered S. 385 favorably reported. 

COMMITTEE RECOMMENDATION

The Committee on Energy and Natural Resources, in an open 

business session on March 30, 2017, by a majority voice vote of a 

quorum present, recommends that the Senate pass S. 385. Senators 

Barrasso, Risch, Lee, and Flake requested that their votes be recorded as no. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title; table of contents 

Section 1 provides a short title and the table of contents. 

Section 2. Definition of Secretary 

Section 2 provides the definition of Secretary. 

Title I—BUILDINGS 

SUBTITLE A—BUILDING ENERGY CODES

Section 101. Greater energy efficiency in building codes 

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

and Production Act (ECPA, Public Law 94–385, as amended) to add 

certain definitions. Section 101(b) amends section 304 of ECPA to 

require that the Secretary of Energy (Secretary) encourage and 

support the adoption of building energy codes by States, local governments, or Indian tribes that meet or exceed model building energy codes. Section 101(c) amends section 305 of ECPA to replace 

4 

the term ‘‘voluntary building energy code’’ with ‘‘model building energy code.’’ Section 101(d) amends section 307 of ECPA to require 

that the Secretary support the updating of model building energy 

codes. 

SUBTITLE B—WORKER TRAINING AND CAPACITY BUILDING

Section 111. Building training and assessment centers 

Section 111 directs the Secretary to provide grants to institutions 

of higher education and Tribal Colleges or Universities to establish 

building training and assessment centers. 

Section 112. Career skills training 

Section 112 directs the Secretary to provide grants to eligible entities to cover a portion of the cost of career skills training programs that lead to students receiving an industry-related certification for the installation of energy efficient building technologies. 

SUBTITLE C—SCHOOL BUILDINGS

Section 121. Coordination of energy retrofitting assistance for 

schools 

Section 121 directs the Department of Energy’s (DOE) Office of 

Energy Efficiency and Renewable Energy (EERE) to coordinate and 

disseminate information on existing Federal programs that may be 

used to help initiate, develop, and finance energy efficiency, renewable energy, and energy retrofitting projects for schools. 

Title II—INDUSTRIAL EFFICIENCY AND 

COMPETITIVENESS 

SUBTITLE A—MANUFACTURING ENERGY EFFICIENCY

Section 201. Purposes 

Section 201 provides the purpose of this subtitle. 

Section 202. Future of Industry program 

Section 202(a) amends the heading of section 452 of Energy Independence and Security Act of 2007 (EISA) to add the ‘‘Future of Industry Program.’’ Section 202(b) amends section 452(a) of EISA to 

add a definition of ‘‘energy service provider.’’ Section 202(c) amends 

section 452(e) of the EISA to direct Industrial Research and Assessment Centers (IARCs) to coordinate with the Manufacturing Extension Partnership Centers of the National Institute of Standards 

and Technology and DOE’s Building Technologies Program, and to 

increase partnerships with the national laboratories and energy 

service and technology providers. This subsection further directs 

the Secretary to provide funding for outreach and coordination activities by the IARCs; to provide funding for workforce training 

purposes; and to establish an Advanced Manufacturing Steering 

Committee. 

Section 203. Sustainable manufacturing initiative 

Section 203 amends part E of title II of the Energy Policy and 

Conservation Act (EPCA, Public Law 109–163, as amended) to add 

a Sustainable Manufacturing Initiative which requires DOE’s 

5 

EERE to provide onsite technical assessments to manufacturers 

seeking efficiency opportunities and requires the Secretary to carry 

out a joint industry-government partnership program to research, 

develop, and demonstrate new sustainable manufacturing and industrial technologies and processes. 

Section 204. Conforming amendments 

Section 204 makes conforming changes to the Energy Policy Act 

of 2005. 

SUBTITLE B—SUPPLY STAR

Section 211. Supply Star 

Section 211 amends section 324A of the EPCA to establish a 

DOE pilot program in coordination with Energy Star to promote 

practices that maximize supply chain efficiency. 

SUBTITLE C—EXTENDED PRODUCT REBATE PROGRAM

Section 221. Extended product system rebate program 

Section 221 directs the Secretary to establish a rebate program 

to encourage the replacement of energy inefficient electric motors. 

SUBTITLE D—TRANSFORMER REBATE PROGRAM

Section 231. Energy efficient transformer rebate program 

Section 231 directs the Secretary to establish a rebate program 

to encourage the replacement of energy inefficient transformers. 

Title III—FEDERAL AGENCY ENERGY EFFICIENCY 

Section 301. Energy-efficient and energy-saving information technologies 

Section 301 amends section 543 of the National Energy Conservation Policy Act (NECPA, Public Law 95–619, as amended) by 

adding a section that directs the Director of the Office of Management and Budget (OMB) to collaborate with each Federal agency 

to develop an implementation strategy for the maintenance, purchase, and use of energy-efficient and energy-saving information 

technologies. 

Section 302. Energy efficient data centers 

Section 303 amends section 453 of EISA to update the Voluntary 

National Information Program. It requires the Secretary to develop 

a metric for data center energy efficiency, and directs the Secretary, in consultation with the Director of OMB, to maintain a 

data center energy practitioner program and open data initiative 

for Federal data center energy usage. 

Section 303. Budget-neutral demonstration program for energy and 

water conservation improvements at multifamily residential 

units 

Section 303 directs the Secretary of Housing and Urban Development (HUD) to conduct a pilot project that demonstrates the use 

of budget-neutral, performance-based agreements for energy or 

water conservation improvements in HUD multifamily housing. 

6 

Title IV—REGULATORY PROVISIONS 

SUBTITLE A—THIRD-PARTY CERTIFICATION UNDER ENERGY STAR

PROGRAM

Section 401. Third-party certification under Energy Star program 

Section 401 amends section 324A of EPCA to direct the Administrator to revise the certification requirements for Energy Star program partners that manufacture consumer, home, and office electronic products and have complied with all program requirements 

for at least 18 months. 

SUBTITLE B—FEDERAL GREEN BUILDINGS

Section 411. High-performance green Federal buildings 

Section 411 amends section 436(h) of EISA to require the Federal 

Director of the Office of Federal High-Performance Green Buildings, within the General Services Administration, to conduct an ongoing review of private sector green building certification systems 

and provide the Secretary with a list of certification systems most 

likely to encourage a comprehensive and environmentally sound 

approach to certification of green buildings. 

SUBTITLE C—ENERGY PERFORMANCE REQUIREMENT FOR FEDERAL

BUILDINGS

Section 421. Energy performance requirement for Federal buildings 

Section 421 amends section 543 of NECPA to extend existing federal building energy efficiency improvement targets. As amended, 

section 543(a)(2) will provide for exclusions from the targets for 

buildings with energy intensive activities and impose reporting requirements for excluded buildings. As amended, section 543(f)(3) 

will require federal energy managers to complete comprehensive 

energy and water evaluation and recommissioning or 

retrocommissioning for 25 percent of the facilities of each agency 

for excluded buildings for which reporting is required to ensure 

that federal buildings are performing at their optimal level of energy efficiency. Not later than two years after the date of completion of each evaluation, each energy manager may implement 

energy- or water- saving measures identified in the evaluation or 

shall explain why the measures were not implemented. 

Section 422. Federal building energy efficiency performance standards; certification system and level for green buildings 

Section 422 amends section 303 of ECPA to expand the scope of 

existing energy standards for new federal buildings to cover major 

renovations. 

Section 423. Enhanced energy efficiency underwriting 

Section 423 requires the Secretary of HUD to develop and issue 

updated underwriting and appraisal guidelines for borrowers who 

voluntarily submit a qualified home energy report. The provision 

would cover any loan issued, insured, purchased, or securitized by 

the Federal Housing Administration and other federal agencies, or 

their successors. The updated guidelines would adjust underwriting 

criteria and valuation guidelines to account for expected energy 

7 

cost savings as an offset to other expenses and to account for 

present value of expected energy savings. If no qualified energy report is provided, no adjustment would be made. Lenders would be 

required to inform loan applicants of the costs and benefits of improving the energy efficiency of a home. 

Title V—MISCELLANEOUS 

Section 501. Budgetary effects 

Section 501 states that for the purpose of complying with the 

Statutory Pay-As-You-Go Act of 2010, the budgetary effect of this 

legislation shall be determined by reference to the latest statement 

titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this Act. 

Section 502. Advance appropriations required 

Section 502 provides that authorization of amounts under this 

Act and the amendments made by this Act shall be effective for 

any fiscal year only to the extent and in the amount provided in 

advance in appropriations Acts. 

COST AND BUDGETARY CONSIDERATIONS

The Congressional Budget Office estimate of the costs of this 

measure has been requested but was not received at the time the 

report was filed. When the the Congressional Budget Office completes its cost estimate, it will be posted on the Internet at 

www.cbo.gov. 

REGULATORY IMPACT EVALUATION

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

Rules of the Senate, the Committee makes the following evaluation 

of the regulatory impact which would be incurred in carrying out 

the bill. 

The bill is not a regulatory measure in the sense of imposing 

Government-established standards or significant economic responsibilities on private individuals and businesses. Also, compliance 

with voluntary programs, such as those designed to increase energy 

efficiency efforts, will require commitments of resources. Various 

grant and other assistance programs will require submission of 

documentation or plans as a condition for the assistance. The Committee believes that the effects are not undue and are reasonable 

in light of the benefits of the programs. 

No personal information would be collected in administering the 

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

Little, if any, additional paperwork would result from the enactment of the bill, as ordered reported. 

CONGRESSIONALLY DIRECTED SPENDING

S. 385, 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 views of the Administration on S. 720 are included in the 

testimony of Dr. Kathleen Hogan, Deputy Assistant Secretary of 

8 

Energy for Energy Efficiency, received by the Committee at its 

April 30, 2015, hearing, which follow, in pertinent part: 

STATEMENT OF DR. KATHLEEN HOGAN, DEPUTY ASSISTANT

SECRETARY FOR ENERGY EFFICIENCY, OFFICE OF ENERGY

EFFICIENCY AND RENEWABLE ENERGY, U.S. DEPARTMENT

OF ENERGY

INTRODUCTION

Chairman Murkowski, Ranking Member Cantwell, and 

Members of the Committee, thank you for the opportunity 

to testify today on behalf of the Department of Energy’s 

(DOE) Office of Energy Efficiency and Renewable Energy 

(EERE) regarding energy efficiency. 

In support of the Administration’s all-of-the-above approach to energy and the Climate Action Plan, EERE leads 

DOE efforts as the U.S. Government’s primary clean energy and energy efficiency technology organization—working with some of the Nation’s best innovators and businesses to support high-impact applied research, development, and demonstration (RD&D) activities in the three 

sectors under our purview: sustainable transportation, renewable power, and energy efficiency. With Congress’s 

support, we implement a range of strategies aimed at reducing U.S. reliance on oil, saving American families and 

businesses money, creating jobs, and reducing pollution. 

We work to ensure that the clean energy and energy efficiency technologies of today and tomorrow are invented 

and manufactured in America. 

As Deputy Assistant Secretary for Energy Efficiency in 

the Office of Energy Efficiency and Renewable Energy 

(EERE), I am responsible for overseeing DOE’s portfolio of 

energy efficiency research, development, demonstration, 

and deployment activities. The Building Technologies, Advanced Manufacturing, Weatherization and Intergovernmental Programs, and Federal Energy Management Program Offices develop and help provide businesses, consumers, and government agencies with innovative, cost-effective energy-saving solutions to improve their energy efficiency—from higher-efficiency products, to new ways of 

designing homes and buildings, to new ways of improving 

the energy intensity and competitiveness of American 

manufacturers. EERE’s energy efficiency portfolio also 

supports better integrating the built environment with our 

energy system to combat costly peaks in energy demand 

and to increase the capabilities and value of buildings and 

facilities. 

Energy efficiency is a large, low-cost, and underutilized 

U.S. energy resource. Increased energy efficiency offers 

savings on energy bills, opportunities for more jobs, and 

improved industrial competitiveness, and it will lower air 

pollution. I am pleased to be here today and look forward 

to working with Congress, and this Committee in particular, to talk about how we can use energy efficiency as 

a tool to help address our Nation’s energy challenges. My 

9 

statement today will address the energy efficiency bills 

currently before the Committee, and provide an update on 

DOE’s energy efficiency portfolio, the challenges we are 

working to address, and the progress we are making. 

ENERGY EFFICIENCY LEGISLATION

I have been asked to testify on 22 energy efficiency bills 

currently before the Committee. In my testimony, I will 

address: • S. 720—Energy Savings and Industrial Competitiveness Act of 2015; • S. 703—Weatherization Enhancement and Local 

Energy Efficiency Investment and Accountability Act. 

This bill reauthorizes the Weatherization Assistance 

Program from fiscal year 2016 through fiscal year 

2020, and seeks to establish a competitive grant program to expand the number of low-income, single-family and multifamily homes that receive energy efficiency retrofits; and • S. 858—Energy Savings Through Public-Private 

Partnerships Act of 2015. This bill seeks to encourage 

the use of Energy Savings performance contracts and 

Utility Energy Service Contracts in federal government buildings. 

The Administration continues to review all of the legislation on the docket today and I am happy to answer questions more specifically on the 22 bills for the record. However, I will reiterate my appreciation for ongoing bipartisan efforts to promote energy efficiency and look forward 

to continuing to work with the Committee and the range 

of bill sponsors as legislation works its way through Congress. 

The Administration continues its support for the underlying goals of S. 720—as many of the sections of S. 720 

match those in S. 1392, the similar 2013 bill that the Administration supported. However, there are sufficient 

changes in S. 720 that warrant further review before a position on the full bill can be established. Many provisions 

of S. 720 would support the Administration’s efforts to 

strengthen U.S. competitiveness through significant research and development investments in manufacturing innovation and productivity, such as the Department of Energy’s Clean Energy Manufacturing Initiative, and complement key energy efficiency dimensions of the President’s Climate Action Plan. The Department continues to 

review the changes in S. 720 and looks forward to working 

with the bill sponsors and this Committee to cut carbon 

pollution and begin to slow the effects of climate change. 

In addition, the Department is still reviewing S. 703 and 

S. 858, and does not have a position on them at this time. 

DOE does, however, support the overall objective of S. 703 

to reauthorize DOE’s existing Weatherization Assistance 

Program (WAP) and the State Energy Program (SEP) and 

recommends that authorization also be provided for the 

Local Energy Program (LEP), as outlined in the FY 2016 

10 

Budget. WAP provides grants to states, territories, and 

some Indian tribes to improve the energy efficiency of the 

homes of low-income families. SEP provides funding and 

technical assistance to state and territory energy offices to 

help them advance their clean energy economy while contributing to national energy goals. The proposed LEP compliments these programs, serving as a catalyst for developing creative and effective solutions through local-level 

projects. While DOE supports the reauthorization of WAP 

and SEP, we note that existing law authorizes appropriations for SEP at $125 million per year. S. 703 would 

change the amount to $75 million per year for Fiscal Years 

2016 through 2020. The lowered amount for authorization 

for SEP may not be sufficient for States to complete 

projects contemplated under SEP, given the significant 

role of states in energy efficiency, renewable energy, and 

energy emergency planning across the U.S. In addition, 

DOE supports the intent of S. 858 to encourage the use of 

Energy Savings performance contracts and Utility Energy 

Service Contracts which permit federal agencies to implement energy efficiency, renewable energy and water-efficiency projects that save energy, reduce greenhouse gas 

emissions and save taxpayer dollars. 

* * * * * * * 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of Rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by the original 

bill, as reported, are shown as follows (existing law proposed to be 

omitted is enclosed in black brackets, new matter is printed in 

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

roman): 

TABLE OF CONTENTS 

Page 

1. Energy Conservation and Production Act, Public Law 94–385, as Amended 10 

2. Energy Independence and Security Act of 2007, Public Law 110–140, as 

Amended ............................................................................................................... 29 

3. Energy Policy Act of 2005, Public Law 109–58, as Amended ......................... 36 

4. Energy Policy Act of 1992, Public Law 102–486, as Amended ....................... 37 

5. Energy Policy and Conservation Act, Public Law 94–163, as Amended ........ 42 

6. National Energy Conservation Policy Act, Public Law 95–619, as Amended ........................................................................................................................... 44 

7. Financial Institutions Reform, Recovery, And Enforcement Act of 1989, 

Public Law 101–73, as Amended ........................................................................ 51 

ENERGY CONSERVATION AND 

PRODUCTION ACT 

Public Law 94–385, as amended 

* * * * * * * 

11 

TITLE III—ENERGY CONSERVATION STANDARDS FOR 

NEW BUILDINGS 

* * * * * * * 

DEFINITIONS

SEC. 303. As used in this title 

* * * * * * * 

(6) The term ‘‘Federal building’’ means any building øto be 

constructed¿ constructed or altered by, or for the use of, any 

Federal agency. Such term shall include buildings built for the 

purpose of being leased by a Federal agency, and privatized 

military housing. 

* * * * * * * 

(13) The term ‘‘Federal building energy standards’’’ means 

energy consumption objectives to be met without specification 

of the methods, materials, or equipment to be employed in 

achieving those objectives, but including statements of the requirements, criteria, and evaluation methods to be used, and 

any necessary commentary. 

ø(14) The term ‘‘voluntary building energy code’’ means a 

building energy code developed and updated through a consensus process among interested persons, such as that used by 

the Council of American Building Officials; the American Society of Heating, Refrigerating, and Air-Conditioning Engineers; 

or other appropriate organizations.¿ 

(14) MODEL BUILDING ENERGY CODE.—The term ‘model building energy code’ means a voluntary building energy code and 

standards developed and updated through a consensus process 

among interested persons, such as the IECC or the code used 

by— 

(A) the Council of American Building Officials, or its 

legal successor, International Code Council, Inc.; 

(B) the American Society of Heating, Refrigerating, and 

Air-Conditioning Engineers; or 

(C) other appropriate organizations. 

(15) The term ‘‘CABO’’ means the Council of American Building Officials. 

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

Heating, Refrigerating, and Air-Conditioning Engineers. 

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

Conservation Code. 

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

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

(19) MAJOR RENOVATION.—The term ‘major renovation’ 

means a modification of building energy systems sufficiently extensive that the whole building can meet energy standards for 

new buildings, based on criteria to be established by the Secretary through notice and comment rulemaking. 

* * * * * * * 

12 

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 of the Energy Policy Act of 1992, each 

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

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

State to revise such residential building code provisions to meet or 

exceed CABO Model Energy Code, 1992. 

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 than 2 years after the date of the enactment 

of the Energy Policy Act of 1992, each State shall certify to the Secretary that it has reviewed and updated the provisions of its commercial building code regarding energy efficiency. Such certification 

shall include a demonstration that such State’s code provisions 

meet or exceed the requirements of ASHRAE Standard 90.1–1989. 

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. 

13 

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 determination 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 

14 

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) IN GENERAL.—The Secretary shall— 

(1) encourage and support the adoption of building energy 

codes by States, Indian tribes, and, as appropriate, by local governments that meet or exceed the model building energy codes, 

or achieve equivalent or greater energy savings; and 

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

(b) STATE AND INDIAN TRIBE CERTIFICATION OF BUILDING 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 model building energy code is updated, each State 

or Indian tribe shall certify whether or not the State or Indian tribe, respectively, has reviewed and updated the energy provisions of the building code of the State or Indian 

tribe, respectively. 

(B) DEMONSTRATION.—The certification shall include a 

demonstration of whether or not the energy savings for the 

code provisions that are in effect throughout the State or 

Indian tribal territory meet or exceed— 

(i) the energy savings of the updated model building 

energy code; or 

(ii) the targets established under section 307(b)(2). 

(C) NO MODEL BUILDING ENERGY CODE UPDATE.—If a 

model building energy code is not updated by a target date 

established under section 307(b)(2)(D), each State or Indian 

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

certify whether or not the State or Indian tribe, respectively, 

has reviewed and updated the energy provisions of the 

building code of the State or Indian tribe, respectively, to 

meet or exceed the target in section 307(b)(2). 

(2) VALIDATION BY SECRETARY.—Not later than 90 days after 

a State or Indian tribe certification under paragraph (1), the 

Secretary shall— 

(A) determine whether the code provisions of the State or 

Indian tribe, respectively, meet the criteria specified in 

paragraph (1); and 

15 

(B) if the determination is positive, validate the certification. 

(c) IMPROVEMENTS IN COMPLIANCE WITH BUILDING ENERGY

CODES.— 

(1) REQUIREMENT.— 

(A) IN GENERAL.—Not later than 3 years after the date of 

a certification under subsection (b), each State and Indian 

tribe shall certify whether or not the State and Indian 

tribe, respectively, has— 

(i) achieved full compliance under paragraph (3) 

with the applicable certified State and Indian tribe 

building energy code or with the associated model 

building energy code; or 

(ii) made significant progress under paragraph (4) 

toward achieving compliance with the applicable certified State and Indian tribe building energy code or 

with the associated model building energy code. 

(B) REPEAT CERTIFICATIONS.—If the State or Indian tribe 

certifies progress toward achieving compliance, the State or 

Indian tribe shall repeat the certification until the State or 

Indian tribe certifies that the State or Indian tribe has 

achieved full compliance, respectively. 

(2) MEASUREMENT OF COMPLIANCE.—A certification under 

paragraph (1) shall include documentation of the rate of compliance based on— 

(A) independent inspections of a random sample of the 

buildings covered by the code in the preceding year; or 

(B) an alternative method that yields an accurate measure of compliance. 

(3) ACHIEVEMENT OF COMPLIANCE.—A State or Indian tribe 

shall be considered to achieve full compliance under paragraph 

(1) if— 

(A) at least 90 percent of building space covered by the 

code in the preceding year substantially meets all the requirements of the applicable code specified in paragraph 

(1), or achieves equivalent or greater energy savings level; 

or 

(B) the estimated excess energy use of buildings that did 

not meet the applicable code specified in paragraph (1) in 

the preceding year, compared to a baseline of comparable 

buildings that meet this code, is not more than 5 percent 

of the estimated energy use of all buildings covered by this 

code during the preceding year. 

(4) SIGNIFICANT PROGRESS TOWARD ACHIEVEMENT OF COMPLIANCE.—A State or Indian tribe shall be considered to have 

made significant progress toward achieving compliance for purposes of paragraph (1) if the State or Indian tribe— 

(A) has developed and is implementing a plan for achieving compliance during the 8-year-period beginning on the 

date of enactment of this paragraph, including annual targets for compliance and active training and enforcement 

programs; and 

(B) has met the most recent target under subparagraph 

(A). 

16 

(5) VALIDATION BY SECRETARY.—Not later than 90 days after 

a State or Indian tribe certification under paragraph (1), the 

Secretary shall— 

(A) determine whether the State or Indian tribe has demonstrated meeting the criteria of this subsection, including 

accurate measurement of compliance; and 

(B) if the determination is positive, validate the certification. 

(d) STATES OR INDIAN TRIBES THAT DO NOT ACHIEVE COMPLI- ANCE.— 

(1) REPORTING.—A State or Indian tribe that has not made 

a certification required under subsection (b) or (c) by the applicable deadline shall submit to the Secretary a report on— 

(A) the status of the State or Indian tribe with respect to 

meeting the requirements and submitting the certification; 

and 

(B) a plan for meeting the requirements and submitting 

the certification. 

(2) FEDERAL SUPPORT.—For any State or Indian tribe for 

which the Secretary has not validated a certification by a deadline under subsection (b) or (c), the lack of the certification may 

be a consideration for Federal support authorized under this 

section for code adoption and compliance activities. 

(3) LOCAL GOVERNMENT.—In any State or Indian tribe for 

which the Secretary has not validated a certification under subsection (b) or (c), a local government may be eligible for Federal 

support by meeting the certification requirements of subsections 

(b) and (c). 

(4) ANNUAL REPORTS BY SECRETARY.— 

(A) IN GENERAL.—The Secretary shall annually submit to 

Congress, and publish in the Federal Register, a report 

on— 

(i) the status of model building energy codes; 

(ii) the status of code adoption and compliance in the 

States and Indian tribes; 

(iii) implementation of this section; and 

(iv) improvements in energy savings over time as result 

of the targets established under section 307(b)(2). 

(B) IMPACTS.—The report shall include estimates of impacts of past action under this section, and potential impacts of further action, on— 

(i) upfront financial and construction costs, cost 

benefits and returns (using investment analysis), 

and lifetime energy use for buildings; 

(ii) resulting energy costs to individuals and 

businesses; and 

(iii) resulting overall annual building ownership 

and operating costs. 

(e) TECHNICAL ASSISTANCE TO STATES AND INDIAN TRIBES.—The 

Secretary shall provide technical assistance to States and Indian 

tribes to implement the goals and requirements of this section, including procedures and technical analysis for States and Indian 

tribes— 

(1) to improve and implement State residential and commercial building energy codes; 

17 

(2) to demonstrate that the code provisions of the States and 

Indian tribes achieve equivalent or greater energy savings than 

the model building energy codes and targets; 

(3) to document the rate of compliance with a building energy 

code; and 

(4) to otherwise promote the design and construction of energy 

efficient buildings. 

(f) AVAILABILITY OF INCENTIVE FUNDING.— (1) IN GENERAL.—The Secretary shall provide incentive funding to States and Indian tribes— 

(A) to implement the requirements of this section; 

(B) to improve and implement residential and commercial building energy codes, including increasing and 

verifying compliance with the codes and training of State, 

tribal, and local building code officials to implement and 

enforce the codes; and 

(C) to promote building energy efficiency through the use 

of the codes. 

(2) ADDITIONAL FUNDING.—Additional funding shall be provided under this subsection for implementation of a plan to 

achieve and document full compliance with residential and 

commercial building energy codes under subsection (c)— 

(A) to a State or Indian tribe for which the Secretary has 

validated a certification under subsection (b) or (c); and 

(B) in a State or Indian tribe that is not eligible under 

subparagraph (A), to a local government that is eligible 

under this section. 

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

subsection, the State or Indian tribe may use amounts required, 

but not to exceed $750,000 for a State, to train State and local 

building code officials to implement and enforce codes described 

in paragraph (2). 

(4) LOCAL GOVERNMENTS.—States may share grants under 

this subsection with local governments that implement and enforce the codes. 

(g) STRETCH CODES AND ADVANCED STANDARDS.— (1) IN GENERAL.—The Secretary shall provide technical and 

financial support for the development of stretch codes and advanced standards for residential and commercial buildings for 

use as— 

(A) an option for adoption as a building energy code by 

local, tribal, or State governments; and 

(B) guidelines for energy-efficient building design. 

(2) TARGETS.—The stretch codes and advanced standards 

shall be designed— 

(A) to achieve substantial energy savings compared to the 

model building energy codes; and 

(B) to meet targets under section 307(b), if available, at 

least 3 to 6 years in advance of the target years. 

(h) STUDIES.—The Secretary, in consultation with building 

science experts from the National Laboratories and institutions of 

higher education, designers and builders of energy-efficient residential and commercial buildings, code officials, and other stakeholders, shall undertake a study of the feasibility, impact, economics, and merit of— 

18 

(1) code improvements that would require that buildings be 

designed, sited, and constructed in a manner that makes the 

buildings more adaptable in the future to become zero-net-energy after initial construction, as advances are achieved in energy-saving technologies; 

(2) code procedures to incorporate measured lifetimes, not just 

first-year energy use, in trade-offs and performance calculations; and 

(3) legislative options for increasing energy savings from 

building energy codes, including additional incentives for effective State and local action, and verification of compliance with 

and enforcement of a code other than by a State or local government. 

(i) EFFECT ON OTHER LAWS.—Nothing in this section or section 

307 supersedes or modifies the application of sections 321 through 

346 of the Energy Policy and Conservation Act (42 U.S.C. 6291 et 

seq.). 

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

be appropriated to carry out this section and section 307 

$200,000,000, to remain available until expended.’’. 

* * * * * * * 

SEC. 305. FEDERAL BUILDING ENERGY EFFICIENCY STANDARDS. 

(a)(1) IN GENERAL.—Not later than 2 years after the date of the 

enactment of the Energy Policy Act of 1992, the Secretary, after 

consulting with appropriate Federal agencies, CABO, ASHRAE, the 

National Association of Home Builders, the Illuminating Engineering Society, the American Institute of Architects, the National Conference of the States on Building Codes and Standards, and other 

appropriate persons, shall establish, by rule, Federal building energy standards that require in new Federal buildings those energy 

efficiency measures that are technologically feasible and economically justified. Such standards shall become effective no later than 

1 year after such rule is issued. 

(2) The standards established under paragraph (1) shall— 

(A) contain energy saving and renewable energy specifications that meet or exceed the energy saving and renewable energy specifications of the 2004 International Energy Conservation Code (in the case of residential buildings) or ASHRAE 

Standard 90.1—2004 (in the case of commercial buildings); 

(B) to the extent practicable, use the same format as the appropriate øvoluntary building energy code¿ model building energy code; and 

(C) consider, in consultation with the Environmental Protection Agency and other Federal agencies, and where appropriate 

contain, measures with regard to radon and other indoor air 

pollutants. 

ø(3)(A) Not later than 1 year after the date of enactment of this 

paragraph, the Secretary shall establish, by rule, revised Federal 

building energy efficiency performance standards that require 

that— 

ø(i) if life-cycle cost-effective for new Federal buildings— 

ø(I) the buildings be designed to achieve energy consumption levels that are at least 30 percent below the levels established in the version of the ASHRAE Standard or 

19 

the International Energy Conservation Code, as appropriate, that is in effect as of the date of enactment of this 

paragraph; and 

ø(II) sustainable design principles are applied to the 

siting, design, and construction of all new and replacement 

buildings; 

ø(ii) if water is used to achieve energy efficiency, water conservation technologies shall be applied to the extent that the 

technologies are life-cycle cost-effective; and 

ø(iii) if lifecycle cost-effective, as compared to other reasonably available technologies, not less than 30 percent of the hot 

water demand for each new Federal building or Federal building undergoing a major renovation be met through the installation and use of solar hot water heaters. 

ø(B) Not later than 1 year after the date of approval of each subsequent revision of the ASHRAE Standard or the International Energy Conservation Code, as appropriate, the Secretary shall determine, based on the cost-effectiveness of the requirements under the 

amendment, whether the revised standards established under this 

paragraph should be updated to reflect the amendment.¿ 

(3) REVISED FEDERAL BUILDING ENERGY EFFICIENCY PERFORM- ANCE STANDARDS; CERTIFICATION FOR GREEN BUILDINGS.— (A) REVISED FEDERAL BUILDING ENERGY EFFICIENCY PER- FORMANCE STANDARDS.— (i) IN GENERAL.—Not later than 1 year after the date of 

enactment of the Energy Savings and Industrial Competitiveness Act of 2015, the Secretary shall establish, by rule, 

revised Federal building energy efficiency performance 

standards that require that— 

(I) new Federal buildings and alterations and additions to existing Federal buildings— 

(aa) meet or exceed the most recent revision of 

the International Energy Conservation Code (in 

the case of residential buildings) or ASHRAE 

Standard 90.1 (in the case of commercial buildings) as of the date of enactment of the Energy 

Savings and Industrial Competitiveness Act of 

2015; and 

(bb) meet or exceed the energy provisions of State 

and local building codes applicable to the building, if the codes are more stringent than the International Energy Conservation Code or ASHRAE 

Standard 90.1, as applicable; 

(II) unless demonstrated not to be life-cycle cost effective for new Federal buildings and Federal buildings 

with major renovations— 

(aa) the buildings be designed to achieve energy 

consumption levels that are at least 30 percent 

below the levels established in the version of the 

ASHRAE Standard or the International Energy 

Conservation Code, as appropriate, that is applied 

under subclause (I)(aa), including updates under 

subparagraph (B); and 

(bb) sustainable design principles are applied to 

the location, siting, design, and construction of all 

20 

new Federal buildings and replacement Federal 

buildings; 

(III) if water is used to achieve energy efficiency, 

water conservation technologies shall be applied to the 

extent that the technologies are life-cycle cost effective; 

and 

(IV) if life-cycle cost effective, as compared to other 

reasonably available technologies, not less than 30 percent of the hot water demand for each new Federal 

building or Federal building undergoing a major renovation be met through the installation and use of 

solar hot water heaters. 

(ii) LIMITATION.—Clause (i)(I) shall not apply to 

unaltered portions of existing Federal buildings and systems that have been added to or altered. 

(B) UPDATES.—Not later than 1 year after the date of approval of each subsequent revision of the ASHRAE Standard or 

the International Energy Conservation Code, as appropriate, 

the Secretary shall determine whether the revised standards established under subparagraph (A) should be updated to reflect 

the re visions, based on the energy savings and life-cycle costeffectiveness of the revisions. 

ø(C) In the budget request¿ (C) BUDGET REQUEST.—In the 

budget request of the Federal agency for each fiscal year and 

each report submitted by the Federal agency under section 

548(a) of the National Energy Conservation Policy Act (42 

U.S.C. 8258(a)), the head of each Federal agency shall include— 

* * * * * * * 

ø(D) Not later than 1 year after the date of enactment of the 

Energy Independence and Security Act of 2007, the Secretary 

shall establish, by rule, revised Federal building energy efficiency performance standards that require that: 

ø[(i) For new Federal buildings and Federal buildings undergoing major renovations, with respect to which the Administrator of General Services is required to transmit a 

prospectus to Congress under section 3307 of title 40, 

United States Code, in the case of public buildings (as defined in section 3301 of title 40, United States Code), or of 

at least $2,500,000 in costs adjusted annually for inflation 

for other buildings: 

ø(I) The buildings shall be designed so that the fossil 

fuel-generated energy consumption of the buildings is reduced, as compared with such energy consumption by a 

similar building in fiscal year 2003 (as measured by Commercial Buildings Energy Consumption Survey or Residential Energy Consumption Survey data from the Energy Information Agency), by the percentage specified in the following table: 

øFiscal Year Percentage Reduction 

ø2010 55 

ø2015 65 

ø2020 80 

ø2025 90 

21 

øFiscal Year Percentage Reduction 

ø2030 100 

ø(II) Upon petition by an agency subject to this 

subparagraph, the Secretary may adjust the applicable numeric requirement under subclause (I) 

downward with respect to a specific building, if 

the head of the agency designing the building certifies in writing that meeting such requirement 

would be technically impracticable in light of the 

agency’s specified functional needs for that building and the Secretary concurs with the agency’s 

conclusion. This subclause shall not apply to the 

General Services Administration. 

ø(III) Sustainable design principles shall be applied to the siting, design, and construction of 

such buildings. Not later than 90 days after the 

date of enactment of the Energy Independence 

and Security Act of 2007, the Secretary, after reviewing the findings of the Federal Director under 

section 436(h) of that Act, in consultation with the 

Administrator of General Services, and in consultation with the Secretary of Defense for considerations relating to those facilities under the custody and control of the Department of Defense, 

shall identify a certification system and level for 

green buildings that the Secretary determines to 

be the most likely to encourage a comprehensive 

and environmentally-sound approach to certification of green buildings. The identification of the 

certification system and level shall be based on a 

review of the Federal Director’s findings under 

section 436(h) of the Energy Independence and Security Act of 2007 and the criteria specified in 

clause (iii), shall identify the highest level the Secretary determines is appropriate above the minimum level required for certification under the 

system selected, and shall achieve results at least 

comparable to the system used by and highest 

level referenced by the General Services Administration as of the date of enactment of the Energy 

Independence and Security Act of 2007. Within 90 

days of the completion of each study required by 

clause (iv), the Secretary, in consultation with the 

Administrator of General Services, and in consultation with the Secretary of Defense for considerations relating to those facilities under the custody and control of the Department of Defense, 

shall review and update the certification system 

and level, taking into account the conclusions of 

such study. 

ø(ii) In establishing criteria for identifying major renovations that are subject to the requirements of this subparagraph, the Secretary shall take into account the scope, degree, and types of renovations that are likely to provide 

22 

significant opportunities for substantial improvements in 

energy efficiency. 

ø[(iii) In identifying the green building certification system 

and level, the Secretary shall take into consideration— 

ø(I) the ability and availability of assessors and 

auditors to independently verify the criteria and measurement of metrics at the scale necessary to implement this subparagraph; 

ø(II) the ability of the applicable certification organization to collect and reflect public comment; 

ø(III) the ability of the standard to be developed and 

revised through a consensus-based process; 

ø(IV) an evaluation of the robustness of the criteria 

for a high-performance green building, which shall 

give credit for promoting— 

ø(aa) efficient and sustainable use of water, energy, and other natural resources; 

ø(bb) use of renewable energy sources; 

ø(cc) improved indoor environmental quality 

through enhanced indoor air quality, thermal comfort, acoustics, day lighting, pollutant source control, and use of low-emission materials and building system controls; and 

ø(dd) such other criteria as the Secretary determines to be appropriate; and 

ø(V) national recognition within the building industry. 

ø(iv) At least once every 5 years, and in accordance with 

section 436 of the Energy Independence and Security Act 

of 2007, the Administrator of General Services shall conduct a study to evaluate and compare available third-party 

green building certification systems and levels, taking into 

account the criteria listed in clause (iii). 

ø(v) The Secretary may by rule allow Federal agencies 

to develop internal certification processes, using certified 

professionals, in lieu of certification by the certification entity identified under clause (i)(III). The Secretary shall include in any such rule guidelines to ensure that the certification process results in buildings meeting the applicable 

certification system and level identified under clause 

(i)(III). An agency employing an internal certification process must continue to obtain external certification by the 

certification entity identified under clause (i)(III) for at 

least 5 percent of the total number of buildings certified 

annually by the agency. 

ø(vi) With respect to privatized military housing, the 

Secretary of Defense, after consultation with the Secretary 

may, through rulemaking, develop alternative criteria to 

those established by subclauses (I) and (III) of clause (i) 

that achieve an equivalent result in terms of energy savings, sustainable design, and green building performance. 

ø(vii) In addition to any use of water conservation technologies otherwise required by this section, water conservation technologies shall be applied to the extent that 

the technologies are life-cycle cost-effective. 

23 

(D) CERTIFICATION FOR GREEN BUILDINGS.— (i) SUSTAINABLE DESIGN PRINCIPLES.—Sustainable design 

principles shall be applied to the siting, design, and construction of buildings covered by this subparagraph. 

(ii) SELECTION OF CERTIFICATION SYSTEMS.—The Secretary, after reviewing the findings of the Federal Director 

under section 436(h) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17092(h)), in consultation with 

the Administrator of General Services, and in consultation 

with the Secretary of Defense relating to those facilities 

under the custody and control of the Department of Defense, shall determine those certification systems for green 

commercial and residential buildings that the Secretary determines to be the most likely to encourage a comprehensive 

and environmentally sound approach to certification of 

green buildings. 

(iii) BASIS FOR SELECTION.—The determination of the certification systems under clause (ii) shall be based on ongoing review of the findings of the Federal Director under section 436(h) of the Energy Independence and Security Act of 

2007 (42 U.S.C. 17092(h)) and the criteria described in 

clause (v). 

(iv) ADMINISTRATION.—In determining certification systems under this subparagraph, the Secretary shall— 

(I) make a separate determination for all or part of 

each system; and 

(II) confirm that the criteria used to support the selection of building products, materials, brands, and 

technologies— 

(aa) are based on relevant technical data; 

(bb) use and reward evaluation of health, safety, 

and environmental risks and impacts across the 

lifecycle of the building product, material, brand, 

or technology, including methodologies generally 

accepted by the applicable scientific disciplines; 

(cc) as practicable, give preference to performance standards instead of prescriptive measures; 

and 

(dd) reward continual improvements in the 

lifecycle management of health, safety, and environmental risks and impacts. 

(v) CONSIDERATIONS.—In determining the green building 

certification systems under this subparagraph, the Secretary shall take into consideration— 

(I) the ability and availability of assessors and auditors to independently verify the criteria and measurement of metrics at the scale necessary to implement 

this subparagraph; 

(II) the ability of the applicable certification organization to collect and reflect public comment; 

(III) the ability of the standard to be developed and 

revised through a consensus-based process; 

(IV) an evaluation of the robustness of the criteria for 

a high-performance green building, which shall give 

credit for promoting— 

24 

(aa) efficient and sustainable use of water, energy, and other natural resources; 

(bb) use of renewable energy sources; 

(cc) improved indoor environmental quality 

through enhanced indoor air quality, thermal comfort, acoustics, day lighting, pollutant source control, and use of low-emission materials and building system controls; 

(dd)(AA) the sourcing of grown, harvested, or 

mined materials; and 

(BB)certifications of responsible sourcing, such 

as certifications provided by the Forest Stewardship Council, the Sustainable Forestry Initiative, 

the American Tree Farm System, or the Programme for the Endorsement of Forest Certification; and 

(ee) such other criteria as the Secretary determines to be appropriate; and 

(V) national recognition within the building industry. 

(vi) REVIEW.—The Secretary, in consultation with the Administrator of General Services and the Secretary of Defense, shall conduct an ongoing review to evaluate and 

compare private sector green building certification systems, 

taking into account— 

(I) the criteria described in clause (v); and 

(II) the identification made by the Federal Director 

under section 436(h) of the Energy Independence and 

Security Act of 2007 (42 U.S.C. 17092(h)). 

(vii) EXCLUSIONS.— 

(I) IN GENERAL.—Subject to subclause (II), if a certification system fails to meet the review requirements 

of clause (v), the Secretary shall— 

(aa) identify the portions of the system, whether 

prerequisites, credits, points, or otherwise, that 

meet the review criteria of clause (v); 

(bb) determine the portions of the system that 

are suitable for use; and 

(cc) exclude all other portions of the system from 

identification and use. 

(II) ENTIRE SYSTEMS.—The Secretary shall exclude 

an entire system from use if an exclusion under subclause (I)— 

(aa) impedes the integrated use of the system; 

(bb) creates disparate review criteria or unequal 

point access for competing materials; or 

(cc) increases agency costs of the use. 

(viii) INTERNAL CERTIFICATION PROCESSES.—The Secretary may by rule allow Federal agencies to develop internal certification processes, using certified professionals, in 

lieu of certification by certification entities identified under 

clause (ii). 

(ix) PRIVATIZED MILITARY HOUSING.—With respect to 

privatized military housing, the Secretary of Defense, after 

consultation with the Secretary may, through rulemaking, 

25 

develop alternative certification systems and levels than the 

systems and levels identified under clause (ii) that achieve 

an equivalent result in terms of energy savings, sustainable 

design, and green building performance. 

(x) WATER CONSERVATION TECHNOLOGIES.—In addition to 

any use of water conservation technologies otherwise required by this section, water conservation technologies shall 

be applied to the extent that the technologies are life-cycle 

cost-effective. 

(xi) EFFECTIVE DATE.— (I) DETERMINATIONS MADE AFTER DECEMBER 31, 

2017.—The amendments made by section 432(b)(1)(C) 

of Energy Savings and Industrial Competitiveness Act 

shall apply to any determination made by a Federal 

agency after December 31, 2017. 

(II) DETERMINATIONS MADE ON OR BEFORE DECEMBER 31, 2017.—This subparagraph (as in effect on the 

day before the date of enactment of Energy Savings 

and Industrial Competitiveness Act) shall apply to any 

use of a certification system for green commercial and 

residential buildings by a Federal agency on or before 

December 31, 2017. 

(b) REPORT ON COMPARATIVE STANDARDS.—The Secretary shall 

identify and describe, in the report required under section 308, the 

basis for any substantive difference between the Federal building 

energy standards established under this section (including differences in treatment of energy efficiency and renewable energy) 

and the appropriate øvoluntary building energy code¿ model building energy code. 

ø(c) PERIODIC REVIEW.—The Secretary shall periodically, but not 

less than once every 5 years, review the Federal building energy 

standards established under this section and shall, if significant 

energy savings would result, upgrade such standards to include all 

new energy efficiency and renewable energy measures that are 

technologically feasible and economically justified.¿ 

ø(d) INTERIM STANDARDS.—Interim energy performance standards for new Federal buildings issued by the Secretary under this 

title as it existed before the date of the enactment of the Energy 

Policy Act of 1992 shall remain in effect until the standards established under subsection (a) become effective.¿ 

(c) PERIODIC REVIEW.—The Secretary shall— 

(1) once every 5 years, review the Federal building energy 

standards established under this section; and 

(2) on completion of a review under paragraph (1), if the Secretary determines that significant energy savings would result, 

upgrade the standards to include all new energy efficiency and 

renewable energy measures that are technologically feasible and 

economically justified. 

* * * * * * * 

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, 

26 

CABO, ASHRAE, the National Conference of States on Building 

Codes and Standards, and any other appropriate building codes 

and standards organization, shall support the upgrading of voluntary building energy codes for new residential and commercial 

buildings. Such support shall include— 

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 such codes.¿ 

SEC. 307. SUPPORT FOR MODEL BUILDING ENERGY CODES. 

(a) IN GENERAL.—The Secretary shall support the updating of 

model building energy codes. 

(b) TARGETS.— (1) IN GENERAL.—The Secretary shall support the updating of 

the model building energy codes to enable the achievement of 

aggregate energy savings targets established under paragraph 

(2). 

(2) TARGETS.— (A) IN GENERAL.—The Secretary shall work with State, 

Indian tribes, local governments, nationally recognized code 

and standards developers, and other interested parties to 

support the updating of model building energy codes by establishing one or more aggregate energy savings targets to 

achieve the purposes of this section. 

(B) SEPARATE TARGETS.—The Secretary may establish 

separate targets for commercial and residential buildings. 

(C) BASELINES.—The baseline for updating model building energy codes shall be the 2009 IECC for residential 

buildings and ASHRAE Standard 90.1—2010 for commercial buildings. 

(D) SPECIFIC YEARS.— 

(i) IN GENERAL.—Targets for specific years shall be 

established and revised by the Secretary through rulemaking and coordinated with nationally recognized 

code and standards developers at a level that— 

(I) is at the maximum level of energy efficiency 

that is technologically feasible and life-cycle cost 

effective, while accounting for the economic considerations under paragraph (4); 

27 

(II) is higher than the preceding target; and 

(III) promotes the achievement of commercial 

and residential high-performance buildings 

through high performance energy efficiency (within 

the meaning of section 401 of the Energy Independence and Security Act of 2007 (42 U.S.C. 

17061)). 

(ii) INITIAL TARGETS.—Not later than 1 year after the 

date of enactment of this clause, the Secretary shall establish initial targets under this subparagraph. 

(iii) DIFFERENT TARGET YEARS.—Subject to clause (i), 

prior to the applicable year, the Secretary may set a 

later target year for any of the model building energy 

codes described in subparagraph (A) if the Secretary 

determines that a target cannot be met. 

(iv) SMALL BUSINESS.—When establishing targets 

under this paragraph through rulemaking, the Secretary shall ensure compliance with the Small Business Regulatory Enforcement Fairness Act of 1996 (5 

U.S.C. 601 note; Public Law 104–121). 

(3) APPLIANCE STANDARDS AND OTHER FACTORS AFFECTING

BUILDING ENERGY USE.—In establishing building code targets 

under paragraph (2), the Secretary shall develop and adjust the 

targets in recognition of potential savings and costs relating 

to— 

(A) efficiency gains made in appliances, lighting, windows, insulation, and building envelope sealing; 

(B) advancement of distributed generation and on-site renewable power generation technologies; 

(C) equipment improvements for heating, cooling, and 

ventilation systems; 

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

(E) other technologies, practices, and building systems 

that the Secretary considers appropriate regarding building 

plug load and other energy uses. 

(4) ECONOMIC CONSIDERATIONS.—In establishing and revising building code targets under paragraph (2), the Secretary 

shall consider the economic feasibility of achieving the proposed 

targets established under this section and the potential costs 

and savings for consumers and building owners, including a return on investment analysis. 

(c) TECHNICAL ASSISTANCE TO MODEL BUILDING ENERGY CODESETTING AND STANDARD DEVELOPMENT ORGANIZATIONS.— 

(1) IN GENERAL.—The Secretary shall, on a timely basis, provide technical assistance to model building energy code-setting 

and standard development organizations consistent with the 

goals of this section. 

(2) ASSISTANCE.—The assistance shall include, as requested 

by the organizations, technical assistance in— 

(A) evaluating code or standards proposals or revisions; 

(B) building energy analysis and design tools; 

(C) building demonstrations; 

(D) developing definitions of energy use intensity and 

building types for use in model building energy codes to 

28 

evaluate the efficiency impacts of the model building energy 

codes; 

(E) performance-based standards; 

(F) evaluating economic considerations under subsection 

(b)(4); and 

(G) developing model building energy codes by Indian 

tribes in accordance with tribal law. 

(3) AMENDMENT PROPOSALS.—The Secretary may submit 

timely model building energy code amendment proposals to the 

model building energy code-setting and standard development 

organizations, with supporting evidence, sufficient to enable the 

model building energy codes to meet the targets established 

under subsection (b)(2). 

(4) ANALYSIS METHODOLOGY.—The Secretary shall make publicly available the entire calculation methodology (including 

input assumptions and data) used by the Secretary to estimate 

the energy savings of code or standard proposals and revisions. 

(d) DETERMINATION.— (1) REVISION OF MODEL BUILDING ENERGY CODES.—If the provisions of the IECC or ASHRAE Standard 90.1 regarding 

building energy use are revised, the Secretary shall make a preliminary determination not later than 90 days after the date of 

the revision, and a final determination not later than 15 

months after the date of the revision, on whether or not the revision will— 

(A) improve energy efficiency in buildings compared to 

the existing model building energy code; and 

(B) meet the applicable targets under subsection (b)(2). 

(2) CODES OR STANDARDS NOT MEETING TARGETS.— 

(A) IN GENERAL.—If the Secretary makes a preliminary 

determination under paragraph (1)(B) that a code or standard does not meet the targets established under subsection 

(b)(2), the Secretary may at the same time provide the 

model building energy code or standard developer with proposed changes that would result in a model building energy 

code that meets the targets and with supporting evidence, 

taking into consideration— 

(i) whether the modified code is technically feasible 

and life-cycle cost effective; 

(ii) available appliances, technologies, materials, and 

construction practices; and 

(iii) the economic considerations under subsection 

(b)(4). 

(B) INCORPORATION OF CHANGES.— 

(i) IN GENERAL.—On receipt of the proposed changes, 

the model building energy code or standard developer 

shall have an additional 270 days to accept or reject 

the proposed changes of the Secretary to the model 

building energy code or standard for the Secretary to 

make a final determination. 

(ii) FINAL DETERMINATION.—A final determination 

under paragraph (1) shall be on the modified model 

building energy code or standard. 

(e) ADMINISTRATION.—In carrying out this section, the Secretary 

shall— 

29 

(1) publish notice of targets and supporting analysis and determinations under this section in the Federal Register to provide an explanation of and the basis for such actions, including 

any supporting modeling, data, assumptions, protocols, and 

cost-benefit analysis, including return on investment; and 

(2) provide an opportunity for public comment on targets and 

supporting analysis and determinations under this section. 

(f) VOLUNTARY CODES AND STANDARDS.—Notwithstanding any 

other provision of this section, any model building code or standard 

established under section 304 shall not be binding on a State, local 

government, or Indian tribe as a matter of Federal law. 

* * * * * * * 

ENERGY INDEPENDENCE AND 

SECURITY ACT OF 2007 

Public Law 110–140, as amended 

* * * * * * * 

SEC. 436. HIGH-PERFORMANCE GREEN FEDERAL BUILDINGS. 

* * * * * * * 

(h) IDENTIFICATION OF CERTIFICATION øSYSTEM¿ SYSTEMS.— 

ø(1) IN GENERAL.—For the purpose of this section, not later 

than 60 days after the date of enactment of this Act, the Federal Director shall identify and shall provide to the Secretary 

pursuant to section 305(a)(3)(D) of the Energy Conservation 

and Production Act (42 U.S.C. 6834(a)(3)(D)), a certification 

system that the Director determines to be the most likely to 

encourage a comprehensive and environmentally-sound approach to certification of green buildings.¿ 

(1) IN GENERAL.—Based on an ongoing review, the Federal 

Director shall identify and shall provide to the Secretary pursuant to section 305(a)(3)(D) of the Energy Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), a list of those certification systems that the Director identifies as the most likely to 

encourage a comprehensive and environmentally sound approach to certification of green buildings. 

(2) BASIS.—The øsystem¿ systems identified under paragraph 

(1) shall be based on— 

ø(A) a study completed every 5 years and provided to the 

Secretary pursuant to section 305(a)(3)(D) of that Act, 

which shall be carried out by the Federal Director to compare and evaluate standards;¿ 

(A) an ongoing review provided to the Secretary pursuant 

to section 305(a)(3)(D) of the Energy Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), which shall— 

(i) be carried out by the Federal Director to compare 

and evaluate standards; and 

(ii) allow any developer or administrator of a rating 

system or certification system to be included in the review; 

30 

(B) the ability and availability of assessors and auditors 

to independently verify the criteria and measurement of 

metrics at the scale necessary to implement this subtitle; 

(C) the ability of the applicable standard-setting organization to collect and reflect public comment; 

(D) the ability of the standard to be developed and revised through a consensus-based process; 

(E) an evaluation of the robustness of the criteria for a 

high-performance green building, which shall give credit 

for promoting— (i) efficient and sustainable use of water, 

energy, and other natural resources; (ii) use of renewable 

energy sources; (iii) improved indoor environmental quality 

through enhanced indoor air quality, thermal comfort, 

acoustics, day lighting, pollutant source control, and use of 

low-emission materials and building system controls; (iv) 

reduced impacts from transportation through building location and site design that promote access by public transportation; and (v) such other criteria as the Federal Director determines to be appropriate; øand¿ 

(F) national recognition within the building industryø.¿; 

(G) a finding that, for all credits addressing the sourcing 

of grown, harvested, or mined materials, the system rewards the use of products that have obtained certifications 

of responsible sourcing, such as certifications provided by 

the Sustainable Forestry Initiative, the Forest Stewardship 

Council, the American Tree Farm System, or the Programme for the Endorsement of Forest Certification; and 

(H) a finding that the system incorporates life-cycle assessment as a credit pathway. 

* * * * * * * 

SEC. 452. øENERGY-INTENSIVE INDUSTRIES PROGRAM.¿ FUTURE OF 

INDUSTRY PROGRAM. 

(a) DEFINITIONS.—In this section: 

* * * * * * * 

(3) ENERGY SERVICE PROVIDER.—The term ‘energy service provider’ means any business providing technology or services to 

improve the energy efficiency, water efficiency, power factor, or 

load management of a manufacturing site or other industrial 

process in an energy-intensive industry, or any utility operating 

under a utility energy service project. 

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). 

ø(5)¿ (6) PROGRAM.—The term ‘‘program’’ means the energy-intensive industries program established under subsection (b). 

(b) ESTABLISHMENT OF PROGRAM.—The Secretary shall establish 

a program under which the Secretary, in cooperation with energyintensive industries and national industry trade associations representing the energy-intensive industries, shall support, research, 

develop, and promote the use of new materials processes, techVerDate Sep 11 2014 06:33 May 12, 2017 Jkt 069010 PO 00000 Frm 00030 Fmt 6659 Sfmt 6602 E:\HR\OC\SR060.XXX SR060
31 

nologies, and techniques to optimize energy efficiency and the economic competitiveness of the United States’ industrial and commercial sectors. 

* * * * * * * 

(e) INSTITUTION OF HIGHER EDUCATION-BASED INDUSTRIAL RE- SEARCH 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 purposes; 

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) COORDINATION.—To increase the value and capabilities of 

the industrial research and assessment centers, the centers 

shall— 

(A) coordinate with Manufacturing Extension Partnership Centers of the National Institute of Standards and 

Technology; 

(B) coordinate with the Building Technologies Program 

of the Department of Energy to provide building assessment 

services to manufacturers; 

(C) increase partnerships with the National Laboratories 

of the Department of Energy to leverage the expertise and 

technologies of the National Laboratories for national industrial and manufacturing needs; 

(D) increase partnerships with energy service providers 

and technology providers to leverage private sector expertise 

and accelerate deployment of new and existing technologies 

and processes for energy efficiency, power factor, and load 

management; 

(E) identify opportunities for reducing greenhouse gas 

emissions; and 

(F) promote sustainable manufacturing practices for 

small- and medium-sized manufacturers. 

(3) OUTREACH.—The Secretary shall provide funding for— 

(A) outreach activities by the industrial research and assessment centers to inform small- and medium-sized manufacturers of the information, technologies, and services 

available; and 

32 

(B) coordination activities by each industrial research 

and assessment center to leverage efforts with— 

(i) Federal and State efforts; 

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

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

(iv) the efforts of other industrial research and assessment centers. 

(4) WORKFORCE TRAINING.— (A) IN GENERAL.—The Secretary shall pay the Federal 

share of associated internship programs under which students work with or for industries, manufacturers, and energy service providers to implement the recommendations of 

industrial research and assessment centers. 

(B) FEDERAL SHARE.—The Federal share of the cost of 

carrying out internship programs described in subparagraph (A) shall be 50 percent. 

(5) SMALL BUSINESS LOANS.—The Administrator of the Small 

Business Administration shall, to the maximum extent practicable, expedite consideration of applications from eligible 

small business concerns for loans under the Small Business Act 

(15 U.S.C. 631 et seq.) to implement recommendations of industrial research and assessment centers established under paragraph (1). 

(6) ADVANCED MANUFACTURING STEERING COMMITTEE.—The 

Secretary shall establish an advisory steering committee to provide recommendations to the Secretary on planning and implementation of the Advanced Manufacturing Office of the Department of Energy. 

* * * * * * * 

SEC. 453. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS. 

* * * * * * * 

(b) VOLUNTARY NATIONAL INFORMATION PROGRAM.— (1) IN GENERAL.—Not later than 90 days after the date of enactment of this Act, the Secretary and the Administrator of the 

Environmental Protection Agency shall, after consulting with 

information technology industry and other interested parties, 

initiate a voluntary national information program for those 

types of data centers and data center equipment and facilities 

that are widely used and for which there is a potential for significant data center energy savings as a result of the program. 

(2) REQUIREMENTS.—The program described in paragraph (1) 

shall— 

(A) address data center efficiency holistically, reflecting 

the total energy consumption of data centers as whole systems, including both equipment and facilities; 

(B) consider prior work and studies undertaken in this 

area, including by the Environmental Protection Agency 

and the Department of Energy; 

(C) consistent with the objectives described in paragraph 

(1), determine the type of data center and data center 

equipment and facilities to be covered under the program; 

33 

(D) produce specifications, measurements, best practices, 

and benchmarks that will enable data center operators to 

make more informed decisions about the energy efficiency 

and costs of data centers, and that take into account— 

(i) the performance and use of servers, data storage 

devices, and other information technology equipment; 

(ii) the efficiency of heating, ventilation, and air conditioning, cooling, and power conditioning systems, 

provided that no modification shall be required of a 

standard then in effect under the Energy Policy and 

Conservation Act (42 U.S.C. 6201 et seq.) for any covered heating, ventilation, air-conditioning, cooling or 

power-conditioning product; 

(iii) energy savings from the adoption of software 

and data management techniques; and 

(iv) other factors determined by øthe organization¿ 

an organization described in subsection (c); 

(E) allow for creation of separate specifications, measurements, and benchmarks based on data center size and 

function, as well as other appropriate characteristics; 

(F) advance the design and implementation of efficiency 

technologies to the maximum extent economically practical; 

(G) provide to data center operators in the private sector 

and the Federal Government information about best practices and purchasing decisions that reduce the energy consumption of data centers; and 

(H) publish the information described in subparagraph 

(G), which may be disseminated through catalogs, trade 

publications, the Internet, or other mechanisms, that will 

allow data center operators to assess the energy consumption and potential cost savings of alternative data centers 

and data center equipment and facilities. 

ø(3) PROCEDURES.—The program described in paragraph (1) 

shall be developed in consultation with and coordinated by the 

organization described in subsection (c) according to commonly 

accepted procedures for the development of specifications, 

measurements, and benchmarks.¿ 

ø(c) DATA CENTER EFFICIENCY ORGANIZATION.— ø(1) IN GENERAL.—After the establishment of the program 

described in subsection (b), the Secretary and the Administrator shall jointly designate an information technology industry organization to consult with and to coordinate the program. 

ø(2) REQUIREMENTS.—The organization designated under 

paragraph (1), whether preexisting or formed specifically for 

the purposes of subsection (b), shall— 

ø(A) consist of interested parties that have expertise in 

energy efficiency and in the development, operation, and 

functionality of computer data centers, information technology equipment, and software, as well as representatives 

of hardware manufacturers, data center operators, and facility managers; 

ø(B) obtain and address input from Department of Energy National Laboratories or any college, university, research institution, industry association, company, or public 

34 

interest group with applicable expertise in any of the areas 

listed in paragraph (1); 

ø(C) follow commonly accepted procedures for the development of specifications and accredited standards development processes; ( 

ø(D) have a mission to develop and promote energy efficiency for data centers and information technology; and 

ø(E) have the primary responsibility to consult in the development and publishing of the information, measurements, and benchmarks described in subsection (b) and 

transmission of the information to the Secretary and the 

Administrator for consideration under subsection (d). 

ø(d) MEASUREMENTS AND SPECIFICATIONS.— 

ø(1) IN GENERAL.—The Secretary and the Administrator 

shall consider the specifications, measurements, and benchmarks described in subsection (b) for use by the Federal Energy Management Program, the Energy Star Program, and 

other efficiency programs of the Department of Energy and Environmental Protection Agency, respectively. 

ø(2) REJECTIONS.—If the Secretary or the Administrator rejects 1 or more specifications, measurements, or benchmarks 

described in subsection (b), the rejection shall be made consistent with section 12(d) of the National Technology Transfer 

and Advancement Act of 1995 (15 U.S.C. 272 note; Public Law 

104–113). 

ø(3) DETERMINATION OF IMPRACTICABILITY.—A determination 

that a specification, measurement, or benchmark described in 

subsection (b) is impractical may include consideration of the 

maximum efficiency that is technologically feasible and economically justified. 

ø(e) MONITORING.—The Secretary and the Administrator shall— 

ø(1) monitor and evaluate the efforts to develop the program 

described in subsection (b); and 

ø(2) not later than 3 years after the date of enactment of this 

Act, make a determination as to whether the program is consistent with the objectives of subsection (b). 

ø(f) ALTERNATIVE SYSTEM.—If the Secretary and the Administrator make a determination under subsection (e) that a voluntary 

national information program for data centers consistent with the 

objectives of subsection (b) has not been developed, the Secretary 

and the Administrator shall, after consultation with the National 

Institute of Standards and Technology and not later than 2 years 

after the determination, develop and implement the program under 

subsection (b). 

ø(g) PROTECTION OF PROPRIETARY INFORMATION.—The Secretary, 

the Administrator, or the data center efficiency organization shall 

not disclose any proprietary information or trade secrets provided 

by any individual or company for the purposes of carrying out this 

section or the program established under this section.¿ 

(c) STAKEHOLDER INVOLVEMENT.— (1) IN GENERAL.—The Secretary and the Administrator shall 

carry out subsection (b) in consultation with the information 

technology industry and other key stakeholders, with the goal of 

producing results that accurately reflect the best knowledge in 

the most pertinent domains. 

35 

(2) CONSIDERATIONS.—In carrying out consultation described 

in paragraph (1), the Secretary and the Administrator shall pay 

particular attention to organizations that— 

(A) have members with expertise in energy efficiency and 

in the development, operation, and functionality of data 

centers, information technology equipment, and software, 

including representatives of hardware manufacturers, data 

center operators, and facility managers; 

(B) obtain and address input from the National Laboratories (as that term is defined in section 2 of the Energy 

Policy Act of 2005 (42 U.S.C. 15801)) or any institution of 

higher education, research institution, industry association, 

company, or public interest group with applicable expertise; 

(C) follow— 

(i) commonly accepted procedures for the development of specifications; and 

(ii) accredited standards development processes; or 

(D) have a mission to promote energy efficiency for 

data centers and information technology. 

(d) MEASUREMENTS AND SPECIFICATIONS.—The Secretary and the 

Administrator shall consider and assess the adequacy of the specifications, measurements, and benchmarks described in subsection 

(b) for use by the Federal Energy Management Program, the Energy 

Star Program, and other efficiency programs of the Department of 

Energy or the Environmental Protection Agency. 

(e) STUDY.—The Secretary, in consultation with the Administrator, not later than 18 months after the date of enactment of the 

Energy Policy Modernization Act of 2015, shall make available to 

the public an update to the report submitted to Congress pursuant 

to section 1 of the Act of December 20, 2006 (Public Law 109–431; 

120 Stat. 2920), entitled ‘Report to Congress on Server and Data 

Center Energy Efficiency’ and dated August 2, 2007, that provides— 

(1) a comparison and gap analysis of the estimates and projections contained in the original report with new data regarding the period from 2007 through 2016; 

(2) an analysis considering the impact of information technologies, including virtualization and cloud computing, in the 

public and private sectors; 

(3) an evaluation of the impact of the combination of cloud 

platforms, mobile devices, social media, and big data on data 

center energy usage; 

(4) an evaluation of water usage in data centers and recommendations for reductions in such water usage; and 

(5) updated projections and recommendations for best practices through fiscal year 2022. 

(f) DATA CENTER ENERGY PRACTITIONER PROGRAM.— 

(1) IN GENERAL.—The Secretary, in consultation with key 

stakeholders and the Director of the Office of Management and 

Budget, shall maintain a data center energy practitioner program that provides for the certification of energy practitioners 

qualified to evaluate the energy usage and efficiency opportunities in Federal data centers. 

(2) EVALUATIONS.—Each Federal agency shall consider having the data centers of the agency evaluated once every 4 years 

by energy practitioners certified pursuant to the program, whenVerDate Sep 11 2014 06:33 May 12, 2017 Jkt 069010 PO 00000 Frm 00035 Fmt 6659 Sfmt 6603 E:\HR\OC\SR060.XXX SR060
36 

ever practicable using certified practitioners employed by the 

agency. 

(g) OPEN DATA INITIATIVE.— (1) IN GENERAL.—The Secretary, in consultation with key 

stakeholders and the Director of the Office of Management and 

Budget, shall establish an open data initiative for Federal data 

center energy usage data, with the purpose of making the data 

available and accessible in a manner that encourages further 

data center innovation, optimization, and consolidation. 

(2) CONSIDERATION.—In establishing the initiative under 

paragraph (1), the Secretary shall consider using the online 

Data Center Maturity Model. 

(h) INTERNATIONAL SPECIFICATIONS AND METRICS.—The Secretary, in consultation with key stakeholders, shall actively participate in efforts to harmonize global specifications and metrics for 

data center energy and water efficiency. 

(i) DATA CENTER UTILIZATION METRIC.—The Secretary, in collaboration with key stakeholders, shall facilitate in the development 

of an efficiency metric that measures the energy efficiency of a data 

center (including equipment and facilities). 

(j) PROTECTION OF PROPRIETARY INFORMATION.—The Secretary 

and the Administrator shall not disclose any proprietary information or trade secrets provided by any individual or company for the 

purposes of carrying out this section or the programs and initiatives 

established under this section. 

* * * * * * * 

ENERGY POLICY ACT OF 2005 

Public Law 109–58, as amended 

* * * * * * * 

øSEC. 106. VOLUNTARY COMMITMENTS TO REDUCE INDUSTRIAL ENERGY INTENSITY. 

ø(a) DEFINITION OF ENERGY INTENSITY.—In this section, the term 

‘‘energy intensity’’ means the primary energy consumed for each 

unit of physical output in an industrial process. 

ø(b) VOLUNTARY AGREEMENTS.—The Secretary may enter into 

voluntary agreements with one or more persons in industrial sectors that consume significant quantities of primary energy for each 

unit of physical output to reduce the energy intensity of the production activities of the persons. 

ø(c) GOAL.—Voluntary agreements under this section shall have 

as a goal the reduction of energy intensity by not less than 2.5 percent each year during the period of calendar years 2007 through 

2016. 

ø(d) RECOGNITION.—The Secretary, in cooperation with other appropriate Federal agencies, shall develop mechanisms to recognize 

and publicize the achievements of participants in voluntary agreements under this section. 

ø(e) TECHNICAL ASSISTANCE.—A person that enters into an agreement under this section and continues to make a good faith effort 

to achieve the energy efficiency goals specified in the agreement 

shall be eligible to receive from the Secretary a grant or technical 

37 

assistance, as appropriate, to assist in the achievement of those 

goals. 

ø(f) REPORT.—Not later than each of June 30, 2012, and June 30, 

2017, the Secretary shall submit to Congress a report that— 

ø(1) evaluates the success of the voluntary agreements under 

this section; and 

ø(2) provides independent verification of a sample of the energy savings estimates provided by participating firms.¿ 

* * * * * * * 

ENERGY POLICY ACT OF 1992 

Public Law 102–486, as amended 

* * * * * * * 

øSEC. 131. ENERGY EFFICIENCY IN INDUSTRIAL FACILITIES. 

ø(a) GRANT PROGRAM.— ø(1) IN GENERAL.—The Secretary shall make grants to industry associations to support programs to improve energy efficiency in industry. In order to be eligible for a grant under this 

subsection, an industry association shall establish a voluntary 

energy efficiency improvement target program. 

ø(2) AWARDING OF GRANTS.—The Secretary shall request 

project proposals and provide annual grants on a competitive 

basis. In evaluating grant proposals under this subsection, the 

Secretary shall consider— 

ø(A) potential energy savings; 

ø(B) potential environmental benefits; 

ø(C) the degree of cost sharing; 

ø(D) the degree to which new and innovative technologies will be encouraged; 

ø(E) the level of industry involvement; 

ø(F) estimated project cost-effectiveness; and 

ø(G) the degree to which progress toward the energy improvement targets can be monitored. 

ø(3) ELIGIBLE PROJECTS.—Projects eligible for grants under 

this subsection may include the following: 

ø(A) Workshops. 

ø(B) Training seminars. 

ø(C) Handbooks. 

ø(D) Newsletters. 

ø(E) Data bases. 

ø(F) Other activities approved by the Secretary. 

ø(4) LIMITATION ON COST SHARING.—Grants provided under 

this subsection shall not exceed $250,000 and each grant shall 

not exceed 75 percent of the total cost of the project for which 

the grant is made. 

ø(5) AUTHORIZATION.—There are authorized to be appropriated such sums as are necessary to carry out this subsection. 

ø(b) AWARD PROGRAM.—The Secretary shall establish an annual 

award program to recognize those industry associations or individual industrial companies that have significantly improved their 

energy efficiency. 

38 

ø(c) REPORT ON INDUSTRIAL REPORTING AND VOLUNTARY TARGETS.—Not later than one year after the date of the enactment of 

this Act, the Secretary shall, in consultation with affected industries, evaluate and report to the Congress regarding the establishment of Federally mandated energy efficiency reporting requirements and voluntary energy efficiency improvement targets for energy intensive industries. Such report shall include an evaluation 

of the costs and benefits of such reporting requirements and voluntary energy efficiency improvement targets, and recommendations regarding the role of such activities in improving energy efficiency in energy intensive industries.¿ 

øSEC. 132. PROCESS ORIENTED INDUSTRIAL ENERGY EFFICIENCY. 

ø(a) DEFINITIONS.—For the purposes of this section— 

ø(1) the term ‘‘covered industry’’ means the food and food 

products industry, lumber and wood products industry, petroleum and coal products industry, and all other manufacturing 

industries specified in Standard Industrial Classification Codes 

20 through 39 (or successor classification codes); 

ø(2) the term ‘‘process-oriented industrial assessment’’ 

means— 

ø(A) the identification of opportunities in the production 

process (from the introduction of materials to final packaging of the product for shipping) for— 

ø(i) improving energy efficiency; 

ø(ii) reducing environmental impact; and 

ø(iii) designing technological improvements to increase competitiveness and achieve cost-effective product quality enhancement; 

ø(B) the identification of opportunities for improving the 

energy efficiency of lighting, heating, ventilation, air conditioning, and the associated building envelope; and 

ø(C) the identification of cost-effective opportunities for 

using renewable energy technology in the production process and in the systems described in subparagraph (B); and 

ø(3) the term ‘‘utility’’ means any person, State agency (including any municipality), or Federal agency, which sells electric or gas energy to retail customers. 

ø(b) GRANT PROGRAM.— 

ø(1) USE OF FUNDS.—The Secretary shall, to the extent funds 

are made available for such purpose, make grants to States 

which, consistent with State law, shall be used for the following purposes: 

ø(A) To promote, through appropriate institutions such 

as universities, nonprofit organizations, State and local 

government entities, technical centers, utilities, and trade 

organizations, the use of energy-efficient technologies in 

covered industries. 

ø(B) To establish programs to train individuals (on an 

industry-by-industry basis) in conducting process-oriented 

industrial assessments and to encourage the use of such 

trained assessors. 

ø(C) To assist utilities in developing, testing, and evaluating energy efficiency programs and technologies for industrial customers in covered industries. 

39 

ø(2) CONSULTATION.—States receiving grants under this subsection shall consult with utilities and representatives of affected industries, as appropriate, in determining the most effective use of such funds consistent with the requirements of 

paragraph (1). 

ø(3) ELIGIBILITY CRITERIA.—Not later than 1 year after the 

date of the enactment of this Act, the Secretary shall establish 

eligibility criteria for grants made pursuant to this subsection. 

Such criteria shall require a State applying for a grant to demonstrate that such State— 

ø(A) pursuant to section 111(a) of the Public Utility and 

Regulatory Policies Act of 1978 (16 U.S.C. 2621(a)), has 

considered and made a determination regarding the implementation of the standards specified in paragraphs (7) and 

(8) of section 111(d) of such Act (with respect to integrated 

resources planning and investments in conservation and 

demand management); and 

ø(B) by legislation or regulation— 

ø(i) allows utilities to recover the costs prudently incurred in providing process-oriented industrial assessments; and 

ø(ii) encourages utilities to provide to covered industries— 

ø(I) process-oriented industrial assessments; 

and 

ø(II) financial incentives for implementing energy efficiency improvements. 

ø(4) ALLOCATION OF FUNDS.—Grants made pursuant to this 

subsection shall be allocated each fiscal year among States 

meeting the criteria specified in paragraph (3) who have submitted applications 60 days before the first day of such fiscal 

year. Such allocation shall be made in accordance with a formula to be prescribed by the Secretary based on each State’s 

share of value added in industry (as determined by the Census 

of Manufacturers) as a percentage of the value added by all 

such States. 

ø(5) RENEWAL OF GRANTS.—A grant under this subsection 

may continue to be renewed after 2 consecutive fiscal years 

during which a State receives a grant under this subsection, 

subject to the availability of funds, if— 

ø(A) the Secretary determines that the funds made 

available to the State during the previous 2 years were 

used in a manner required under paragraph (1); and 

ø(B) such State demonstrates, in a manner prescribed by 

the Secretary, utility participation in programs established 

pursuant to this subsection. 

ø(6) COORDINATION WITH OTHER FEDERAL PROGRAMS.—In carrying out the functions described in paragraph (1), States 

shall, to the extent practicable, coordinate such functions with 

activities and programs conducted by the Energy Analysis and 

Diagnostic Centers of the Department of Energy and the Manufacturing Technology Centers of the National Institute of 

Standards and Technology. 

ø(c) OTHER FEDERAL ASSISTANCE.— 

40 

ø(1) ASSESSMENT CRITERIA.—Not later than 2 years after the 

date of the enactment of this Act, the Secretary shall, by contract with nonprofit organizations with expertise in process-oriented industrial energy efficiency technologies, establish and, 

as appropriate, update criteria for conducting process-oriented 

industrial assessments on an industry-by-industry basis. Such 

criteria shall be made available to State and local government, 

public utility commissions, utilities, representatives of affected 

process-oriented industries, and other interested parties. 

ø(2) DIRECTORY.—The Secretary shall establish a nationwide 

directory of organizations offering industrial energy efficiency 

assessments, technologies, and services consistent with the 

purposes of this section. Such directory shall be made available 

to State governments, public utility commissions, utilities, industry representatives, and other interested parties. 

ø(3) AWARD PROGRAM.—The Secretary shall establish an annual award program to recognize utilities operating outstanding or innovative industrial energy efficiency technology 

assistance programs. 

ø(4) MEETINGS.—In order to further the purposes of this section, the Secretary shall convene annual meetings of parties interested in process-oriented industrial assessments, including 

representatives of State government, public utility commissions, utilities, and affected process-oriented industries. 

ø(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated such sums as may be necessary to carry out the 

purposes of this section.¿ 

øSEC. 133. INDUSTRIAL INSULATION AND AUDIT GUIDELINES. 

ø(a) VOLUNTARY GUIDELINES FOR ENERGY EFFICIENCY AUDITING

AND INSULATING.—Not later than 18 months after the date of the 

enactment of this Act, the Secretary, after consultation with utilities, major industrial energy consumers, and representatives of the 

insulation industry, shall establish voluntary guidelines for— 

ø(1) the conduct of energy efficiency audits of industrial 

facilities to identify cost-effective opportunities to increase 

energy efficiency; and 

ø(2) the installation of insulation to achieve cost-effective 

increases in energy efficiency in industrial facilities. 

ø(b) EDUCATIONAL AND TECHNICAL ASSISTANCE.—The Secretary 

shall conduct a program of educational and technical assistance to 

promote the use of the voluntary guidelines established under subsection (a).¿ 

* * * * * * * 

SEC. 2101. GENERAL IMPROVED ENERGY EFFICIENCY. 

(a) PROGRAM DIRECTION.—The Secretary shall conduct a 5-year 

program, in accordance with sections 3001 and 3002 of this Act, on 

cost effective technologies to improve energy efficiency and increase 

the use of renewable energy in the buildings, industrial, and utility 

sectors. Such program shall include a broad range of technological 

approaches, and shall include field demonstrations of sufficient 

scale and number to prove technical and economic viability to meet 

the goals stated in section 2001. Such program shall include the activities required under øsections 2102, 2103, 2104, 2105, 2106, 

2107, and 2108¿ sections 2102, 2104, 2105, 2106, and 2108 of this 

41 

Act and sections 376 of the Energy Policy and Conservation Act and 

ongoing activities of a similar nature at the Department of Energy. 

Such program shall also include the activities conducted pursuant 

to the Steel and Aluminum Energy Conservation and Technology 

Competitiveness Act of 1988 (Public Law 100–680) and the Department of Energy Metal Casting Competitiveness Research Act of 

1990 (Public Law 101–425). 

* * * * * * * 

øSEC. 2103. PULP AND PAPER. 

ø(a) PROGRAM DIRECTION.—The Secretary shall conduct a 5-year 

program, in accordance with sections 3001 and 3002 of this Act, on 

advanced pulp and paper technologies. Such program shall include 

activities on energy generation technologies, boilers, combustion 

processes, pulping processes (excluding de-inking), chemical recovery, causticizing, source reduction processes, and other related 

technologies that can improve the energy efficiency of, and reduce 

the adverse environmental impacts of, pulp and papermaking operations. This section does not authorize projects involving the combustion of waste paper, other than gasification. 

ø(b) PROPOSALS.—Within 180 days after the date of enactment of 

this Act, the Secretary shall solicit proposals for conducting activities under this section.¿ 

* * * * * * * 

øSEC. 2107. IMPROVING EFFICIENCY IN ENERGY INTENSIVE INDUSTRIES. 

ø(a) SECRETARIAL ACTION.—The Secretary, in accordance with 

sections 3001 and 3002 of this Act, shall— 

ø(1) pursue a research, development, demonstration and 

commercial application program intended to improve energy efficiency and productivity in energy-intensive industries and industrial processes; and 

ø(2) undertake joint ventures to encourage the commercialization of technologies developed under paragraph (1). 

ø(b) JOINT VENTURES.—(1) The Secretary shall— 

ø(A) conduct a competitive solicitation for proposals from private firms and investors for such joint ventures under subsection (a)(2); and 

ø(B) provide financial assistance to at least five such joint 

ventures. 

ø(2) The purpose of the joint ventures shall be to design, test, 

and demonstrate changes to industrial processes that will result in 

improved energy efficiency and productivity. The joint ventures 

may also demonstrate other improvements of benefit to such industries so long as demonstration of energy efficiency improvements is 

the principal objective of the joint venture. 

ø(3) In evaluating proposals for financial assistance and joint 

ventures under this section, the Secretary shall consider— 

ø(A) whether the activities conducted under this section improve the quality and energy efficiency of industries or industrial processes; 

ø(B) the regional distribution of the energy-intensive industries and industrial processes; and 

42 

ø(C) whether the proposed joint venture project would be located in the region which has the energy-intensive industry 

and industrial processes that would benefit from the project.¿ 

* * * * * * * 

ENERGY POLICY AND CONSERVATION 

ACT 

Public Law 94–163, as amended 

* * * * * * * 

ENERGY STAR PROGRAM

SEC. 324a. (a) IN GENERAL.— * * * 

* * * * * * * 

(e) THIRD-PARTY CERTIFICATION.— (1) IN GENERAL.—Subject to paragraph (2), not later than 180 

days after the date of enactment of this subsection, the Administrator shall revise the certification requirements for the labeling 

of consumer, home, and office electronic products for program 

partners that have complied with all requirements of the Energy Star program for a period of at least 18 months. 

(2) ADMINISTRATION.—In the case of a program partner described in paragraph (1), the new requirements under paragraph (1)— 

(A) shall not require third-party certification for a product to be listed; but 

(B) may require that test data and other product information be submitted to facilitate product listing and performance verification for a sample of products. 

(3) THIRD PARTIES.—Nothing in this subsection prevents the 

Administrator from using third parties in the course of the administration of the Energy Star program. 

(4) TERMINATION.— 

(A) IN GENERAL.—Subject to subparagraph (B), an exemption from third-party certification provided to a program partner under paragraph (1) shall terminate if the 

program partner is found to have violated program requirements with respect to at least 2 separate models during a 

2-year period. 

(B) RESUMPTION.—A termination for a program partner 

under subparagraph (A) shall cease if the program partner 

complies with all Energy Star program requirements for a 

period of at least 3 years. 

* * * * * * * 

SEC. 324B. SUPPLY STAR PROGRAM. 

(a) IN GENERAL.—There is established within the Department of 

Energy a Supply Star program to identify and promote practices, 

recognize companies, and, as appropriate, recognize products that 

use highly efficient supply chains in a manner that conserves energy, water, and other resources. 

43 

(b) COORDINATION.—In carrying out the program described in 

subsection (a), the Secretary shall— 

(1) consult with other appropriate agencies; and 

(2) coordinate efforts with the Energy Star program established under section 324A. 

(c) DUTIES.—In carrying out the Supply Star program described 

in subsection (a), the Secretary shall— 

(1) promote practices, recognize companies, and, as appropriate, recognize products that comply with the Supply Star 

program as the preferred practices, companies, and products in 

the marketplace for maximizing supply chain efficiency; 

(2) work to enhance industry and public awareness of the 

Supply Star program; 

(3) collect and disseminate data on supply chain energy resource consumption; 

(4) develop and disseminate metrics, processes, and analytical 

tools (including software) for evaluating supply chain energy resource use; 

(5) develop guidance at the sector level for improving supply 

chain efficiency; 

(6) work with domestic and international organizations to 

harmonize approaches to analyzing supply chain efficiency, including the development of a consistent set of tools, templates, 

calculators, and databases; and 

(7) work with industry, including small businesses, to improve supply chain efficiency through activities that include— 

(A) developing and sharing best practices; and 

(B) providing opportunities to benchmark supply chain 

efficiency. 

(d) EVALUATION.—In any evaluation of supply chain efficiency 

carried out by the Secretary with respect to a specific product, the 

Secretary shall consider energy consumption and resource use 

throughout the entire lifecycle of a product, including production, 

transport, packaging, use, and disposal. 

(e) GRANTS AND INCENTIVES.— 

(1) IN GENERAL.—The Secretary may award grants or other 

forms of incentives on a competitive basis to eligible entities, as 

determined by the Secretary, for the purposes of— 

(A) studying supply chain energy resource efficiency; and 

(B) demonstrating and achieving reductions in the energy 

resource consumption of commercial products through 

changes and improvements to the production supply and 

distribution chain of the products. 

(2) USE OF INFORMATION.—Any information or data generated as a result of the grants or incentives described in paragraph (1) shall be used to inform the development of the Supply 

Star Program. 

(f) TRAINING.—The Secretary shall use funds to support professional training programs to develop and communicate methods, 

practices, and tools for improving supply chain efficiency. 

(g) EFFECT OF OUTSOURCING OF AMERICAN JOBS.—For purposes 

of this section, the outsourcing of American jobs in the production 

of a product shall not count as a positive factor in determining supply chain efficiency. 

44 

(h) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out this section $10,000,000 for the period 

of fiscal years 2018 through 2027. 

* * * * * * * 

SEC. 376. SUSTAINABLE MANUFACTURING INITIATIVE. 

(a) IN GENERAL.—As part of the Office of Energy Efficiency and 

Renewable Energy, the Secretary, on the request of a manufacturer, 

shall conduct on-site technical assessments to identify opportunities 

for— 

(1) maximizing the energy efficiency of industrial processes 

and cross-cutting systems; 

(2) preventing pollution and minimizing waste; 

(3) improving efficient use of water in manufacturing processes; 

(4) conserving natural resources; and 

(5) achieving such other goals as the Secretary determines to 

be appropriate. 

(b) COORDINATION.—The Secretary shall carry out the initiative in 

coordination with the private sector and appropriate agencies, including the National Institute of Standards and Technology, to accelerate adoption of new and existing technologies and processes 

that improve energy efficiency. 

(c) RESEARCH AND DEVELOPMENT PROGRAM FOR SUSTAINABLE

MANUFACTURING AND INDUSTRIAL TECHNOLOGIES AND PROCESSES.—As part of the industrial efficiency programs of the Department of Energy, the Secretary shall carry out a joint industry-government partnership program to research, develop, and demonstrate 

new sustainable manufacturing and industrial technologies and 

processes that maximize the energy efficiency of industrial plants, 

reduce pollution, and conserve natural resources. 

* * * * * * * 

NATIONAL ENERGY CONSERVATION 

POLICY ACT 

Public Law 95–619, as amended 

* * * * * * * 

øSEC. 543. ENERGY MANAGEMENT REQUIREMENTS. 

ø(a) ENERGY PERFORMANCE REQUIREMENT FOR FEDERAL BUILDINGS.—(1) Subject to paragraph (2), each agency shall apply energy 

conservation measures to, and shall improve the design for the construction of, the Federal buildings of the agency (including each industrial or laboratory facility) so that the energy consumption per 

gross square foot of the Federal buildings of the agency in fiscal 

years 2006 through 2015 is reduced, as compared with the energy 

consumption per gross square foot of the Federal buildings of the 

agency in fiscal year 2003, by the percentage specified in the following table: 

øFiscal Year Percentage Reduction 

ø2006 2 

ø2007 4 

45 

øFiscal Year Percentage Reduction 

ø2008 9 

ø2009 12 

ø2010 15 

ø2011 18 

ø2012 21 

ø2013 24 

ø2014 27 

ø2015 30 

ø(2) An agency may exclude from the requirements of paragraph 

(1) any building, and the associated energy consumption and gross 

square footage, in which energy intensive activities are carried out. 

Each agency shall identify and list in each report made under section 548(a) the buildings designated by it for such exclusion. 

ø(3) Not later than December 31, 2014, the Secretary shall review the results of the implementation of the energy performance 

requirement established under paragraph (1) and submit to Congress recommendations concerning energy performance requirements for fiscal years 2016 through 2025.¿ 

(a) ENERGY PERFORMANCE REQUIREMENT FOR FEDERAL BUILDINGS.— 

(1) REQUIREMENT.—Subject to paragraph (2), each agency 

shall apply energy conservation measures to, and shall improve 

the design for the construction of, the Federal buildings of the 

agency (including each industrial or laboratory facility) so that 

the energy consumption per gross square foot of the Federal 

buildings of the agency in fiscal years 2006 through 2017 is reduced, as compared with the energy consumption per gross 

square foot of the Federal buildings of the agency in fiscal year 

2003, by the percentage specified in the following table: 

Fiscal Year Percentage Reduction 

2006 2 

2007 4 

2008 9 

2009 12 

2010 15 

2011 18 

2012 21 

2013 24 

2014 27 

2015 30 

2016 33 

2017 36 

(2) EXCLUSION FOR BUILDINGS WITH ENERGY INTENSIVE AC- TIVITIES.— 

(A) IN GENERAL.—An agency may exclude from the requirements of paragraph (1) any building (including the 

associated energy consumption and gross square footage) in 

which energy intensive activities are carried out. 

(B) REPORTS.—Each agency shall identify and list in 

each report made under section 548(a) the buildings designated by the agency for exclusion under subparagraph 

(A). 

(3) REVIEW.—Not later than December 31, 2017, the Secretary 

shall— 

46 

(A) review the results of the implementation of the energy 

performance requirements established under paragraph (1); 

and 

(B) based on the review conducted under subparagraph 

(A), submit to Congress a report that addresses the feasibility of requiring each agency to apply energy conservation 

measures to, and improve the design for the construction of, 

the Federal buildings of the agency (including each industrial or laboratory facility) so that the energy consumption 

per gross square foot of the Federal buildings of the agency 

in each of fiscal years 2018 through 2030 is reduced, as 

compared with the energy consumption per gross square 

foot of the Federal buildings of the agency in the prior fiscal year, by 3 percent. 

* * * * * * * 

(f) USE OF ENERGY AND WATER EFFICIENCY MEASURES IN FED- ERAL BUILDINGS.— 

* * * * * * * 

(E) ONGOING COMMISSIONING.—The term ‘ongoing commissioning’ means an ongoing process of commissioning 

using monitored data, the primary goal of which is to ensure continuous optimum performance of a facility, in accordance with design or operating needs, over the useful life 

of the facility, while meeting facility occupancy requirements. 

ø(E)¿ (F) PAYBACK PERIOD.— (i) IN GENERAL.—Subject to clause (ii), the term 

‘‘payback period’’, with respect to a measure, means a 

value equal to the quotient obtained by dividing— 

(I) the estimated initial implementation cost of 

the measure (other than financing costs); by 

(II) the annual cost savings resulting from the 

measure, including— 

(aa) net savings in estimated energy and 

water costs; and 

(bb) operations, maintenance, repair, replacement, and other direct costs. 

(ii) MODIFICATIONS AND EXCEPTIONS.—The Secretary, in guidelines issued pursuant to paragraph (6), 

may make such modifications and provide such exceptions to the calculation of the payback period of a 

measure as the Secretary determines to be appropriate 

to achieve the purposes of this Act. 

ø(F)¿ (G) RECOMMISSIONING.—The term ‘‘recommissioning’’ means a process— 

(i) of commissioning a facility or system beyond the 

project development and warranty phases of the facility or system; and 

(ii) the primary goal of which is to ensure optimum 

performance of a facility, in accordance with design or 

current operating needs, over the useful life of the facility, while meeting building occupancy requirements. 

ø(G)¿ (H) RETROCOMMISSIONING.—The term 

‘‘retrocommissioning’’ means a process of commissioning a 

47 

facility or system that was not commissioned at the time 

of construction of the facility or system. 

(2) FACILITY ENERGY MANAGERS.— (A) IN GENERAL.—Each Federal agency shall designate 

an energy manager responsible for implementing this subsection and reducing energy use at each facility that meets 

criteria under subparagraph (B). 

(B) COVERED FACILITIES.—The Secretary shall develop 

criteria, after consultation with affected agencies, energy 

efficiency advocates, and energy and utility service providers, that cover, at a minimum, Federal facilities, including central utility plants and distribution systems and 

other energy intensive operations, that constitute at least 

75 percent of facility energy use at each agency. 

(C) ENERGY MANAGEMENT SYSTEM.—An energy manager 

designated under subparagraph (A) shall consider use of a 

system to manage energy use at the facility and certification of the facility in accordance with the International 

Organization for Standardization standard numbered 

50001 and entitled ‘Energy Management Systems’. 

ø(3) ENERGY AND WATER EVALUATIONS.— ø(A) EVALUATIONS.—Effective beginning on the date that 

is 180 days after the date of enactment of this subsection 

and annually thereafter, energy managers shall complete, 

for each calendar year, a comprehensive energy and water 

evaluation for approximately 25 percent of the facilities of 

each agency that meet the criteria under paragraph (2)(B) 

in a manner that ensures that an evaluation of each such 

facility is completed at least once every 4 years. 

ø(B) RECOMMISSIONING AND RETROCOMMISSIONING.—As 

part of the evaluation under subparagraph (A), the energy 

manager shall identify and assess recommissioning measures (or, if the facility has never been commissioned, 

retrocommissioning measures) for each such facility.¿ 

ø(4) IMPLEMENTATION OF IDENTIFIED ENERGY AND WATER EF- FICIENCY MEASURES.—Not later than 2 years after the completion of each evaluation under paragraph (3), each energy manager may— 

ø(A) implement any energy- or water-saving measure 

that the Federal agency identified in the evaluation conducted under paragraph (3) that is life cycle cost-effective; 

and 

ø(B) bundle individual measures of varying paybacks together into combined projects.¿ 

(3) ENERGY AND WATER EVALUATIONS AND COMMISSIONING.— 

(A) EVALUATIONS.—Except as provided in subparagraph 

(B), effective beginning on the date that is 180 days after 

the date of enactment of the Energy Savings and Industrial 

Competitiveness Act of 2015, and annually thereafter, each 

energy manager shall complete, for each calendar year, a 

comprehensive energy and water evaluation and recommissioning or retrocommissioning for approximately 25 percent 

of the facilities of each agency that meet the criteria under 

paragraph (2)(B) in a manner that ensures that an evaluation of each facility is completed at least once every 4 years. 

48 

(B) EXCEPTIONS.—An evaluation and recommissioning 

shall not be required under subparagraph (A) with respect 

to a facility that— 

(i) has had a comprehensive energy and water evaluation during the 8-year period preceding the date of 

the evaluation; 

(ii)(I) has been commissioned, recommissioned, or 

retrocommissioned during the 10-year period preceding 

the date of the evaluation; or 

(II) is under ongoing commissioning; 

(iii) has not had a major change in function or use 

since the previous evaluation and commissioning; 

(iv) has been benchmarked with public disclosure 

under paragraph (8) within the year preceding the 

evaluation; and 

(v)(I) based on the benchmarking, has achieved at a 

facility level the most recent cumulative energy savings 

target under subsection (a) compared to the earlier of— 

(aa) the date of the most recent evaluation; or 

(bb) the date— 

(AA) of the most recent commissioning, recommissioning, or retrocommissioning; or 

(BB) on which ongoing commissioning 

began; or 

(II) has a long-term contract in place guaranteeing 

energy savings at least as great as the energy savings 

target under subclause (I). 

(4) IMPLEMENTATION OF IDENTIFIED ENERGY AND WATER EFFI- CIENCY MEASURES.— (A) IN GENERAL.—Not later than 2 years after the date of 

completion of each evaluation under paragraph (3), each 

energy manager may— 

(i) implement any energy- or water-saving measure 

that the Federal agency identified in the evaluation 

conducted under paragraph (3) that is life-cycle cost effective; and 

(ii) bundle individual measures of varying paybacks 

together into combined projects. 

(B) MEASURES NOT IMPLEMENTED.—The energy manager 

shall, as part of the certification system under paragraph 

(7), explain the reasons why any life-cycle cost effective 

measures were not implemented under subparagraph (A) 

using guidelines developed by the Secretary. 

* * * * * * * 

(7) WEB-BASED CERTIFICATION.— 

(A) IN GENERAL.—For each facility that meets the criteria established by the Secretary under paragraph (2)(B), 

the energy manager shall use the web-based tracking system under subparagraph (B)— 

(i) to certify compliance with the requirements for— 

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

(II) implementation of identified energy and 

water measures under paragraph (4); and 

49 

(III) follow-up on implemented measures under 

paragraph (5); and 

(ii) to publish energy and water consumption data 

on an individual facility basis. 

(B) DEPLOYMENT.— (i) IN GENERAL.—Not later than 1 year after the 

date of enactment of this subsection, the Secretary 

shall develop and deploy a web-based tracking system 

required under this paragraph in a manner that 

tracks, at a minimum— 

(I) the covered facilities; 

(II) the status of meeting the requirements specified in subparagraph (A); 

(III) the estimated cost and savings for measures required to be implemented in a facility; 

(IV) the measured savings and persistence of 

savings for implemented measures; and 

(V) the benchmarking information disclosed 

under paragraph (8)(C). 

(ii) EASE OF COMPLIANCE.—The Secretary shall ensure that energy manager compliance with the requirements in this paragraph, to the maximum extent 

practicable— 

(I) can be accomplished with the use of streamlined procedures and templates that minimize the 

time demands on Federal employees; and 

(II) is coordinated with other applicable energy 

reporting requirements. 

(C) AVAILABILITY.— (i) IN GENERAL.—Subject to clause (ii), the Secretary 

shall make the web-based tracking system required 

under this paragraph available to Congress, other 

Federal agencies, and the public through the Internet. 

(ii) EXEMPTIONS.—At the request of a Federal agency, the Secretary may exempt specific data for specific 

facilities from disclosure under clause (i) for national 

security purposes. 

(iii) SUMMARY REPORT.—The Secretary shall make 

available a report that summarizes the information 

tracked under subparagraph (B)(i) by each agency and, 

as applicable, by each type of measure. 

* * * * * * * 

(g) LARGE CAPITAL ENERGY INVESTMENTS.— (1) IN GENERAL.—Each Federal agency shall ensure that any 

large capital energy investment in an existing building that is 

not a major renovation but involves replacement of installed 

equipment (such as heating and cooling systems), or involves 

renovation, rehabilitation, expansion, or remodeling of existing 

space, employs the most energy efficient designs, systems, 

equipment, and controls that are life-cycle cost effective. 

(2) PROCESS FOR REVIEW OF INVESTMENT DECISIONS.—Not 

later than 180 days after the date of enactment of this subsection, each Federal agency shall— 

(A) develop a process for reviewing each decision made 

on a large capital energy investment described in paraVerDate Sep 11 2014 06:33 May 12, 2017 Jkt 069010 PO 00000 Frm 00049 Fmt 6659 Sfmt 6602 E:\HR\OC\SR060.XXX SR060
50 

graph (1) to ensure that the requirements of this subsection are met; and 

(B) report to the Director of the Office of Management 

and Budget on the process established. 

(3) COMPLIANCE REPORT.—Not later than 1 year after the 

date of enactment of this subsection, the Director of the Office 

of Management and Budget shall evaluate and report to Congress on the compliance of each agency with this subsection. 

(h) FEDERAL IMPLEMENTATION STRATEGY FOR ENERGY EFFICIENT

AND ENERGY SAVING INFORMATION TECHNOLOGIES.— 

(1) DEFINITIONS.—In this subsection: 

(A) DIRECTOR.—The term ‘Director’ means the Director of 

the Office of Management and Budget. 

(B) INFORMATION TECHNOLOGY.—The term ‘information 

technology’ has the meaning given the term in section 

11101 of title 40, United States Code. 

(2) DEVELOPMENT OF IMPLEMENTATION STRATEGY.—Not later 

than 1 year after the date of enactment of this subsection, each 

Federal agency shall collaborate with the Director to develop an 

implementation strategy (including best-practices and measurement and verification techniques) for the maintenance, purchase, and use by the Federal agency of energy-efficient and energy-saving information technologies. 

(3) ADMINISTRATION.—In developing an implementation strategy, each Federal agency shall consider— 

(A) advanced metering infrastructure; 

(B) energy efficient data center strategies and methods of 

increasing asset and infrastructure utilization; 

(C) advanced power management tools; 

(D) building information modeling, including building 

energy management; and 

(E) secure telework and travel substitution tools. 

(4) PERFORMANCE GOALS.— 

(A) IN GENERAL.—Not later than September 30, 2017, the 

Director, in consultation with the Secretary, shall establish 

performance goals for evaluating the efforts of Federal 

agencies in improving the maintenance, purchase, and use 

of energy-efficient and energy-saving information technology systems. 

(B) BEST PRACTICES.—The Chief Information Officers 

Council established under section 3603 of title 44, United 

States Code, shall supplement the performance goals established under this paragraph with recommendations on best 

practices for the attainment of the performance goals, to include a requirement for agencies to consider the use of— 

(i) energy savings performance contracting; and 

(ii) utility energy services contracting. 

(5) REPORTS.— 

(A) AGENCY REPORTS.—Each Federal agency subject to 

the requirements of this subsection shall include in the report of the agency under section 527 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17143) a description of the efforts and results of the agency under this 

subsection. 

51 

(B) OMB GOVERNMENT EFFICIENCY REPORTS AND SCORE- CARDS.—Effective beginning not later than October 1, 2017, 

the Director shall include in the annual report and scorecard of the Director required under section 528 of the Energy Independence and Security Act of 2007 (42 U.S.C. 

17144) a description of the efforts and results of Federal 

agencies under this subsection. 

(C) USE OF EXISTING REPORTING STRUCTURES.—The Director may require Federal agencies to submit any information required to be submitted under this subsection though 

reporting structures in use as of the date of enactment of 

the Energy Savings and Industrial Competitiveness Act. 

* * * * * * * 

FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT OF 

1989 

Public Law 101–73, as amended 

* * * * * * * 

SEC. 1110. FUNCTIONS OF THE FEDERAL FINANCIAL INSTITUTIONS 

REGULATORY AGENCIES RELATING TO APPRAISAL 

STANDARDS. 

Each Federal financial institutions regulatory agency and the 

Resolution Trust Corporation shall prescribe appropriate standards 

for the performance of real estate appraisals in connection with 

federally related transactions under the jurisdiction of each such 

agency or instrumentality. These rules shall require, at a minimum— 

(1) that real estate appraisals be performed in accordance 

with generally accepted appraisal standards as evidenced by 

the appraisal standards promulgated by the Appraisal Standards Board of the Appraisal Foundation; 

(2) that such appraisals shall be written appraisalsø; and¿; 

(3) that such appraisals shall be subject to appropriate review for compliance with the Uniform Standards of Professional Appraisal Practiceø.¿; and 

(4) that State certified and licensed appraisers have timely 

access, whenever practicable, to information from the property 

owner and the lender that may be relevant in developing an 

opinion of value regarding the energy- and water-saving improvements or features of a property, such as— 

(A) labels or ratings of buildings; 

(B) installed appliances, measures, systems or technologies; 

(C) blueprints; 

(D) construction costs; 

(E) financial or other incentives regarding energy- and 

water-efficient components and systems installed in a property; 

(F) utility bills; 

(G) energy consumption and benchmarking data; and 

52 

(H) third-party verifications or representations of energy 

and water efficiency performance of a property, observing 

all financial privacy requirements adhered to by certified 

and licensed appraisers, including section 501 of the 

Gramm-Leach-Bliley Act (15 U.S.C. 6801). 

Unless a property owner consents to a lender, an appraiser, in 

carrying out the requirements of paragraph (4), shall not have 

access to the commercial or financial information of the owner 

that is privileged or confidential. 

Each such agency or instrumentality may require compliance 

with additional standards if it makes a determination in writing 

that such additional standards are required in order to properly 

carry out its statutory responsibilities. 

* * * * * * * 

SEC. 1113. TRANSACTIONS REQUIRING THE SERVICES OF A STATE 

CERTIFIED APPRAISER. 

In determining whether an appraisal in connection with a federally related transaction shall be performed by a State certified appraiser, an agency or instrumentality under this title shall consider 

whether transactions, either individually or collectively, are of sufficient financial or public policy importance to the United States 

that an individual who performs an appraisal in connection with 

such transactions should be a State certified appraiser, except 

that— 

(1) a State certified appraiser shall be required for all federally related transactions having a value of $1,000,000 or more, 

or any real property on which the appraiser makes adjustments 

using an energy efficiency report; and 

(2) 1-to-4 unit, single family residential appraisals may be 

performed by State licensed appraisers unless the size and 

complexity requires a State certified appraiser, where a complex 1-to-4 unit single family residential appraisal means an 

appraisal for which the property to be appraised, the form of 

ownership, the property characteristics, or the market conditions are atypical, or an appraisal on which the appraiser 

makes adjustments using an energy efficiency report. 

* * * * * * * 

Æ