39–006 

113TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 113–371 

BETTER BUILDINGS ACT OF 2014 

FEBRUARY 28, 2014.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. UPTON, from the Committee on Energy and Commerce, 

submitted the following 

R E P O R T 

[To accompany H.R. 2126] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Energy and Commerce, to whom was referred 

the bill (H.R. 2126) to facilitate better alignment, cooperation, and 

best practices between commercial real estate landlords and tenants regarding energy efficiency in buildings, and for other purposes, having considered the same, report favorably thereon with 

an amendment and recommend that the bill as amended do pass. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 4 

Background and Need for Legislation .................................................................... 5 

Hearings ................................................................................................................... 7 

Committee Consideration ........................................................................................ 7 

Committee Votes ...................................................................................................... 7 

Committee Oversight Findings ............................................................................... 7 

Statement of General Performance Goals and Objectives .................................... 7 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 7 

Earmark, Limited Tax Benefits, and Limited Tariff Benefits ............................. 7 

Committee Cost Estimate ....................................................................................... 8 

Congressional Budget Office Estimate ................................................................... 8 

Federal Mandates Statement ................................................................................. 9 

Duplication of Federal Programs ............................................................................ 9 

Disclosure of Directed Rule Makings ..................................................................... 9 

Advisory Committee Statement .............................................................................. 9 

Applicability to Legislative Branch ........................................................................ 9 

Section-by-Section Analysis of the Legislation ...................................................... 9 

Changes in Existing Law Made by the Bill, as Reported ..................................... 11 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 


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SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Better Buildings Act of 2014’’. 

SEC. 2. ENERGY EFFICIENCY IN FEDERAL AND OTHER BUILDINGS. 

(a) DEFINITIONS.—In this section: 

(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the Administrator of 

General Services. 

(2) COST-EFFECTIVE ENERGY EFFICIENCY MEASURE.—The term ‘‘cost-effective 

energy efficiency measure’’ means any building product, material, equipment, or 

service, and the installing, implementing, or operating thereof, that provides energy savings in an amount that is not less than the cost of such installing, implementing, or operating. 

(3) COST-EFFECTIVE WATER EFFICIENCY MEASURE.—The term ‘‘cost-effective 

water efficiency measure’’ means any building product, material, equipment, or 

service, and the installing, implementing, or operating thereof, that provides 

water savings in an amount that is not less than the cost of such installing, 

implementing, or operating. 

(b) MODEL PROVISIONS, POLICIES, AND BEST PRACTICES.— 

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

Act, the Administrator, in consultation with the Secretary of Energy and after 

providing the public with an opportunity for notice and comment, shall develop 

model leasing provisions and best practices in accordance with this subsection. 

(2) COMMERCIAL LEASING.— 

(A) IN GENERAL.—The model commercial leasing provisions developed 

under this subsection shall, at a minimum, align the interests of building 

owners and tenants with regard to investments in cost-effective energy efficiency measures and cost-effective water efficiency measures to encourage 

building owners and tenants to collaborate to invest in such measures. 

(B) USE OF MODEL PROVISIONS.—The Administrator may use the model 

provisions developed under this subsection in any standard leasing document that designates a Federal agency (or other client of the Administrator) 

as a landlord or tenant. 

(C) PUBLICATION.—The Administrator shall periodically publish the 

model leasing provisions developed under this subsection, along with explanatory materials, to encourage building owners and tenants in the private sector to use such provisions and materials. 

(3) REALTY SERVICES.—The Administrator shall develop policies and practices 

to implement cost-effective energy efficiency measures and cost-effective water 

efficiency measures for the realty services provided by the Administrator to Federal agencies (or other clients of the Administrator), including periodic training 

of appropriate Federal employees and contractors on how to identify and evaluate those measures. 

(4) STATE AND LOCAL ASSISTANCE.—The Administrator, in consultation with 

the Secretary of Energy, shall make available model leasing provisions and best 

practices developed under this subsection to State, county, and municipal governments to manage owned and leased building space in accordance with the 

goal of encouraging investment in all cost-effective energy efficiency measures 

and cost-effective water efficiency measures. 

SEC. 3. SEPARATE SPACES WITH HIGH-PERFORMANCE ENERGY EFFICIENCY MEASURES. 

(a) IN GENERAL.—Subtitle B of title IV of the Energy Independence and Security 

Act of 2007 (42 U.S.C. 17081 et seq.) is amended by adding at the end the following: 

‘‘SEC. 424. SEPARATE SPACES WITH HIGH-PERFORMANCE ENERGY EFFICIENCY MEASURES. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) HIGH-PERFORMANCE ENERGY EFFICIENCY MEASURE.—The term ‘high-performance energy efficiency measure’ means a technology, product, or practice 

that will result in substantial operational cost savings by reducing energy consumption and utility costs. 

‘‘(2) SEPARATE SPACES.—The term ‘separate spaces’ means areas within a commercial building that are leased or otherwise occupied by a tenant or other occupant for a period of time pursuant to the terms of a written agreement. 

‘‘(b) STUDY.— 

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

section, the Secretary, acting through the Assistant Secretary of Energy Efficiency and Renewable Energy, shall complete a study on the feasibility of— 

‘‘(A) significantly improving energy efficiency in commercial buildings 

through the design and construction, by owners and tenants, of separate 

spaces with high-performance energy efficiency measures; and 


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‘‘(B) encouraging owners and tenants to implement high-performance energy efficiency measures in separate spaces. 

‘‘(2) SCOPE.—The study shall, at a minimum, include— 

‘‘(A) descriptions of— 

‘‘(i) high-performance energy efficiency measures that should be considered as part of the initial design and construction of separate spaces; 

‘‘(ii) processes that owners, tenants, architects, and engineers may 

replicate when designing and constructing separate spaces with highperformance energy efficiency measures; 

‘‘(iii) policies and best practices to achieve reductions in energy intensities for lighting, plug loads, heating, cooling, cooking, laundry, and 

other systems to satisfy the needs of the commercial building tenant; 

‘‘(iv) return on investment and payback analyses of the incremental 

cost and projected energy savings of the proposed set of high-performance energy efficiency measures, including consideration of available 

incentives; 

‘‘(v) models and simulation methods that predict the quantity of energy used by separate spaces with high-performance energy efficiency 

measures and that compare that predicted quantity to the quantity of 

energy used by separate spaces without high-performance energy efficiency measures but that otherwise comply with applicable building 

code requirements; 

‘‘(vi) measurement and verification platforms demonstrating actual 

energy use of high-performance energy efficiency measures installed in 

separate spaces, and whether such measures generate the savings intended in the initial design and construction of the separate spaces; 

‘‘(vii) best practices that encourage an integrated approach to designing and constructing separate spaces to perform at optimum energy efficiency in conjunction with the central systems of a commercial building; and 

‘‘(viii) any impact on employment resulting from the design and construction of separate spaces with high-performance energy efficiency 

measures; and 

‘‘(B) case studies reporting economic and energy savings returns in the 

design and construction of separate spaces with high-performance energy 

efficiency measures. 

‘‘(3) PUBLIC PARTICIPATION.—Not later than 90 days after the date of the enactment of this section, the Secretary shall publish a notice in the Federal Register requesting public comments regarding effective methods, measures, and 

practices for the design and construction of separate spaces with high-performance energy efficiency measures. 

‘‘(4) PUBLICATION.—The Secretary shall publish the study on the website of 

the Department of Energy.’’. 

(b) CLERICAL AMENDMENT.—The table of contents in section 1(b) of the Energy 

Independence and Security Act of 2007 is amended by inserting after the item relating to section 423 the following new item: 

‘‘Sec. 424. Separate spaces with high-performance energy efficiency measures.’’. 

SEC. 4. TENANT STAR PROGRAM. 

(a) IN GENERAL.—Subtitle B of title IV of the Energy Independence and Security 

Act of 2007 (42 U.S.C. 17081 et seq.) (as amended by section 3) is amended by adding at the end the following: 

‘‘SEC. 425. TENANT STAR PROGRAM. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) HIGH-PERFORMANCE ENERGY EFFICIENCY MEASURE.—The term ‘high-performance energy efficiency measure’ has the meaning given the term in section 

424. 

‘‘(2) SEPARATE SPACES.—The term ‘separate spaces’ has the meaning given the 

term in section 424. 

‘‘(b) TENANT STAR.—The Administrator of the Environmental Protection Agency, 

in consultation with the Secretary of Energy, shall develop a voluntary program 

within the Energy Star program established by section 324A of the Energy Policy 

and Conservation Act (42 U.S.C. 6294a), which may be known as Tenant Star, to 

promote energy efficiency in separate spaces leased by tenants or otherwise occupied 

within commercial buildings. 

‘‘(c) EXPANDING SURVEY DATA.—The Secretary of Energy, acting through the Administrator of the Energy Information Administration, shall— 


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‘‘(1) collect, through each Commercial Buildings Energy Consumption Survey 

of the Energy Information Administration that is conducted after the date of enactment of this section, data on— 

‘‘(A) categories of building occupancy that are known to consume significant quantities of energy, such as occupancy by data centers, trading floors, 

and restaurants; and 

‘‘(B) other aspects of the property, building operation, or building occupancy determined by the Administrator of the Energy Information Administration, in consultation with the Administrator of the Environmental Protection Agency, to be relevant in lowering energy consumption; 

‘‘(2) with respect to the first Commercial Buildings Energy Consumption Survey conducted after the date of enactment of this section, to the extent full compliance with the requirements of paragraph (1) is not feasible, conduct activities 

to develop the capability to collect such data and begin to collect such data; and 

‘‘(3) make data collected under paragraphs (1) and (2) available to the public 

in aggregated form and provide such data, and any associated results, to the 

Administrator of the Environmental Protection Agency for use in accordance 

with subsection (d). 

‘‘(d) RECOGNITION OF OWNERS AND TENANTS.— 

‘‘(1) OCCUPANCY-BASED RECOGNITION.—Not later than 1 year after the date on 

which sufficient data is received pursuant to subsection (c), the Administrator 

of the Environmental Protection Agency shall, following an opportunity for public notice and comment— 

‘‘(A) in a manner similar to the Energy Star rating system for commercial 

buildings, develop policies and procedures to recognize tenants in commercial buildings that voluntarily achieve high levels of energy efficiency in 

separate spaces; 

‘‘(B) establish building occupancy categories eligible for Tenant Star recognition based on the data collected under subsection (c) and any other appropriate data sources; and 

‘‘(C) consider other forms of recognition for commercial building tenants 

or other occupants that lower energy consumption in separate spaces. 

‘‘(2) DESIGN- AND CONSTRUCTION-BASED RECOGNITION.—After the study required by section 424(b) is completed, the Administrator of the Environmental 

Protection Agency, in consultation with the Secretary and following an opportunity for public notice and comment, may develop a voluntary program to recognize commercial building owners and tenants that use high-performance energy efficiency measures in the design and construction of separate spaces.’’. 

(b) CLERICAL AMENDMENT.—The table of contents in section 1(b) of the Energy 

Independence and Security Act of 2007 is amended by inserting after the item relating to section 424 (as added by section 3(b)) the following new item: 

‘‘Sec. 425. Tenant Star program.’’. 

PURPOSE AND SUMMARY

H.R. 2126, the ‘‘Better Buildings Act of 2014,’’ was introduced by 

Reps. McKinley (R–WV) and Welch (D–VT) on May 23, 2013. H.R. 

2126 facilitates the ability of landlords and tenants to lower energy 

consumption in commercial buildings through a market-driven, voluntary, ‘‘best practices’’ approach. This bill authorizes the Administrator of the General Services Administration (GSA) to consult with 

the Secretary of Energy to develop model leasing provisions and 

voluntary best leasing practices that will align the interests of 

landlords and tenants to achieve greater energy and water efficiency in commercial buildings. The bill also directs the Department of Energy (DOE) to conduct a study that identifies voluntary 

best practices for commercial building owners and tenants to consider when they design and construct new tenant spaces, which are 

rented at the start of a lease and are ‘‘fitted-out’’ before the tenant 

takes occupancy. Finally, H.R. 2126 establishes a ‘‘Tenant Star’’ 

voluntary recognition program developed by the Administrator of 

the Environmental Protection Agency (EPA), in consultation with 

the Secretary of Energy. 


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1See Natural Resources Defense Council, ‘‘High Performance Tenant Demonstration Project,’’ 

available at http://www.nrdc.org/business/cgi/process.asp; National Association of Real Estate 

Investment Trusts, ‘‘Kimco Looks to Lower Retail Tenant Energy Usage,’’ (June 2013), available 

at http://www.reit.com/Articles/Kimco-Looks-to-Lower-Retail-Tenant-Energy-Usage.aspx. 

2 EPA ENERGY STAR, ‘‘Facts and Stats,’’ available at http://www.energystar.gov/buildings/ 

about-us/facts-and-stats. 3 EPA ENERGY STAR, ‘‘Overview of 2012 Achievements,’’ available at http:// 

www.energystar.gov/ia/partners/publications/pubdocs/ES%20bifold%20031313%20FINAL%20for%20print%20rev.pdf. 

BACKGROUND AND NEED FOR LEGISLATION

Owners and managers of large commercial buildings report that 

tenants consume 50 percent or more of their structures’ total energy.1 Therefore, Choices made by office tenants in designing and 

operating within leased spaces have a significant impact on U.S. 

energy consumption. Tenants and building occupants have an essential role to play within spaces they control to improve overall 

building efficiency, particularly office tenants that use significant 

amounts of energy, such as data centers, banks, trading floors, restaurants, and retail stores. 

To date, energy efficiency efforts have primarily focused on how 

real estate owners and developers may lower energy consumption 

at the ‘‘whole-building’’ level. For example, the ENERGY STAR 

program for commercial ‘‘whole-buildings’’ administered by EPA is 

based on ‘‘whole-building’’ recognition for ‘‘top of the class’’ energy 

performers. The program is a voluntary, public-private program, 

which has improved how real estate owners, utilities, governments, 

and businesses interact with their customers to improve energy efficiency in buildings and lower energy costs. 

In 2012, more than 20,000 ENERGY STAR certified buildings 

across the United States helped save more than $2.7 billion in annual utility bills.2 Further, the cumulative number of ENERGY 

STAR certified buildings increased by more than 24 percent from 

2011 to 2012, representing more than 3 billion square feet of floor 

space nationwide. In 2012 alone, more than 8,200 buildings earned 

EPA’s Energy Star certification.3

In contrast to energy efficiency programs that focus solely on the 

whole building, H.R. 2126 takes into consideration the energy consumption impacts and behaviors of office tenants, a focus that presently is lacking under existing Federal efficiency programs. 

Commercial tenants are most likely to make structural investments in the building areas they occupy when they enter into new 

leases, or renew leases. In order to encourage high-performance design and construction of leased spaces at the point of new ‘‘fit-outs’’ 

that suit tenants’ needs, H.R. 2126 directs DOE to study and learn 

from private sector ‘‘best practices’’ of how commercially leased 

spaces are designed ‘‘up front’’ to (1) achieve high performance, (2) 

implement cost effective measures with viable pay-back periods 

given lease duration, and (3) reduce utility costs for businesses. 

Based on DOE’s study, EPA then may develop a voluntary program 

to reward and recognize tenants that design and construct high 

performance leased spaces. 

H.R. 2126 also builds upon the existing ENERGY STAR program 

for whole buildings by establishing a voluntary, market-based program by which tenant spaces can be certified as ‘‘Tenant Star’’ 

spaces within ENERY STAR whole buildings. Establishing recogniVerDate Mar 15 2010 21:41 Mar 05, 2014 Jkt 039006 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\HR371.XXX HR371

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tion opportunities for leased commercial spaces can transform how 

building owners and their tenants think about energy efficiency. 

Given that the Federal government is the largest commercial office tenant in the United States, the GSA is responsible for leasing 

significant amounts of office space from private building owners. 

With stakeholder input, H.R. 2126 directs GSA to develop model 

leasing provisions to facilitate cooperation between Federal tenants 

and private sector building owners to encourage sensible, cost-effective investments in efficiency to reduce Federal energy costs. The 

Committee recognizes the connection between education and training for building professionals, improved building performance, and 

energy savings. 

Supporters of the legislation 

Supporters of the legislation include: Air Barrier Association of 

America, Air Conditioning Contractors of America, Alliance to Save 

Energy, American Chemistry Council, American Council for an Energy-Efficient Economy, American Gaming Association, American 

Hotel & Lodging Association, American Institute of Architects, 

American Resort Development Association, American Society of Interior Designers (ASID), ASHRAE, Association of Energy Engineers 

(AEE), Bayer MaterialScience LLC, Big Ass Fans, Boston Properties, Brandywine Realty Trust, Building Owners and Managers 

Association (BOMA) International, CBRE, Inc., CCIM Institute, 

Conservation Services Group, Conservatives for Responsible Stewardship, Cree, Inc., Danfoss, DESSC, The Dow Chemical Company, 

Earth Day Network, Efficiency.org, EIFS Industry Members Association (EIMA), Empire State Building Company/Malkin Holdings, 

Energy Future Coalition, Energy Systems Group, Environment 

America, Environmental and Energy Study Institute, First Potomac Realty Trust, Grundfos, Illuminating Engineering Society 

(IES), Interfaith Power & Light, International Association of Lighting Designers, Institute for Market Transformation, Institute of 

Real Estate Management, International Council of Shopping Centers, International Union of Painters and Allied Trades (IUPAT), 

Johnson Controls, Inc., Jones Lang LaSalle, Knauf Insulation, 

Large Public Power Council, LBA Realty, Legrand, LonMark International, Metrus Energy, Inc., NAIOP, Commercial Real Estate Development Association, National Apartment Association, National 

Association of Energy Service Companies (NAESCO), National Association of Home Builders, National Association of Real Estate Investment Trusts, National Association of REALTORS®, National 

Association of the Remodeling Industry, National Association for 

State Community Services Program, National Association of State 

Energy Officials, National Electrical Manufacturers Association, 

National Fenestration Rating Council (NFRC), National Institute of 

Building Sciences, National Insulation Association, National Multi 

Housing Council, Natural Resources Defense Council, National 

Restaurant Association, OpenADR Alliance, Passive House Institute US, Philips, Plumbing-Heating-Cooling Contractors—National 

Association, Polyisocyanurate Insulation Manufacturers Association, Prologis, Inc., Real Estate Board of New York, Related Companies, Rising Realty Partners, Rudin Management Company, Inc., 

Seattle City Light, Sheet Metal and Air Conditioning Contractors’ 

National Association, Inc., Shorenstein Properties LLC, Siemens 


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Building Technologies, Inc., Sierra Club, Southern Oregon Climate 

Action Now, Spray Polyurethane Foam Alliance (SPFA), The Stella 

Group, Ltd, SUN DAY Campaign, The Real Estate Roundtable, 

The Stella Group, Ltd., Tishman Speyer, Transwestern, U.S. Green 

Building Council, USAA Real Estate Co., Vinyl Siding Institute, 

Vornado Realty Trust, and Window and Door Manufacturers Association. 

HEARINGS

The Committee on Energy and Commerce has not held hearings 

on H.R. 2126. 

COMMITTEE CONSIDERATION

On January 27 and 28, 2014, the Committee on Energy and 

Commerce met in open markup session. During the markup, an 

amendment in the nature of a substitute was offered and adopted 

by a voice vote. Mr. McNerney (D–CA) offered an amendment to 

the amendment in the nature of a substitute, which was adopted 

by a voice vote. The Committee ordered H.R. 2126 favorably reported, by a voice vote, to the House of Representatives, as amended. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. There were no 

record votes taken in connection with ordering H.R. 2126 reported. 

A motion by Mr. Upton to order H.R. 2126 reported to the House, 

as amended, was agreed to by a voice vote. 

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee made findings that are reflected 

in this report. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

H.R. 2126 facilitates the ability of landlords and tenants to lower 

energy consumption in commercial buildings through a marketdriven, voluntary, ‘‘best practices’’ approach. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee finds that H.R. 2126, 

would result in no new or increased budget authority, entitlement 

authority, or tax expenditures or revenues. 

EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS

In compliance with clause 9(e), 9(f), and 9(g) of rule XXI of the 

Rules of the House of Representatives, the Committee finds that 

H.R. 2126 contains no earmarks, limited tax benefits, or limited 

tariff benefits. 


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COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATE

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, February 20, 2014. 

Hon. FRED UPTON, 

Chairman, Committee on Energy and Commerce, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 2126, the Better Buildings Act of 2014. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Matthew Pickford. 

Sincerely, 

ROBERT A. SUNSHINE

(For Douglas W. Elmendorf, Director). 

Enclosure. 

H.R. 2126—Better Buildings Act of 2014 

H.R. 2126 would amend federal law aimed at improving the energy efficiency of commercial office buildings. The legislation would 

require the General Services Administration (GSA) to develop 

model leasing provisions to encourage energy efficiency in privately 

owned buildings with federal tenants. The bill also would establish 

a program similar to the Environmental Protection Agency’s Energy Star program to promote energy efficiency in buildings leased 

to the federal government. Finally, the bill would require the Department of Energy (DOE) to prepare a report to the Congress on 

energy efficiency in commercial buildings. 

Since the 1970s, many laws and policies have been enacted to reduce energy consumption. According to the GSA, most of the provisions of the bill are broadly consistent with existing law and practices. As a result, CBO does not expect that enacting H.R. 2126 

would significantly affect agencies’ administrative costs or result in 

significant additional investments by the federal government in energy savings initiatives. Optimizing the use of energy conservation 

measures in buildings leased by the government could eventually 

reduce federal spending by lowering occupancy costs, but CBO does 

not expect agencies would realize any significant savings from such 

efforts during the next few years. Enacting the bill would not affect 

direct spending or revenues; therefore, pay-as-you-go procedures do 

not apply. 

H.R. 2126 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

impose no costs on state, local, or tribal governments. 


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The CBO staff contact for this estimate is Matthew Pickford. 

This estimate was approved by Theresa Gullo, Deputy Assistant 

Director for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

DUPLICATION OF FEDERAL PROGRAMS

No provision of H.R. 2126 establishes or reauthorizes a program 

of the Federal Government known to be duplicative of another Federal program, a program that was included in any report from the 

Government Accountability Office to Congress pursuant to section 

21 of Public Law 111–139, or a program related to a program identified in the most recent Catalog of Federal Domestic Assistance. 

DISCLOSURE OF DIRECTED RULE MAKINGS

The Committee estimates that enacting H.R. 2126 specifically directs no rule makings within the meaning of 5 U.S.C. 551 to be 

completed. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This section provides the short title of the ‘‘Better Buildings Act 

of 2013.’’ 

Section 2. Energy efficiency in Federal and other buildings 

This section directs the U.S. General Services Administration 

(GSA) Administrator to consult with the Secretary of Energy to develop model leasing provisions and voluntary best leasing practices 

that align the interests of landlords and tenants to achieve greater 

energy and water efficiency in commercial buildings. 

Section 2(a) defines ‘‘cost-effective energy efficiency measure’’ and 

‘‘cost-effective water efficiency measure’’ as any building product, 

material, or equipment that pays for itself through energy or water 

savings. 

Section 2(b) directs the GSA Administrator to consult with the 

Secretary of Energy to develop model leasing provisions and best 

leasing practices. These provisions and practices shall be developed 

with public input and no later than six months after enactment of 

the Act. The purpose of these provisions and practices is to assist 


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building owners and their tenants in making decisions about cost 

effective investments in energy and water efficiency measures. 

• Any model provisions may be used by the GSA in standard 

Federal leasing documents. 

• The model leasing provisions shall be published periodically 

with explanatory materials to encourage their use by private sector 

commercial building owners and tenants. 

• The realty services provided by GSA to Federal agency clients 

shall include periodic training of Federal employees and contractors to identify and evaluate energy and water efficiency measures 

during Federal leasing activities. 

• The model leasing provisions shall be made available to State, 

municipal, and local government entities that own, manage, and 

lease buildings, to encourage those landlords and tenants to invest 

in cost-effective energy and water efficiency measures. 

Section 3. Separate spaces with high-performance energy efficiency 

measures 

This section directs the DOE to conduct a study that identifies 

voluntary best practices for commercial building owners and tenants to consider in designing and constructing new tenant spaces, 

which are rented at the start of a lease and are ‘‘fitted-out’’ before 

the tenant takes occupancy. 

Section 3(a) contains the following definitions: 

• ‘‘High-performance energy efficiency measure’’ means a building technology, product, or practice that results in substantial savings by reducing energy consumption and lowering utility bills. 

• ‘‘Separate spaces’’ means areas within a commercial building 

that are leased or otherwise occupied by a tenant, pursuant to the 

terms and conditions of a lease agreement. 

Section 3(b) directs the Secretary of Energy, within one year 

after enactment of the section, to complete a study on the feasibility of improving energy efficiency in commercial buildings 

through the design and construction of separate spaces with highperformance energy efficiency measures. Among other things, the 

scope of the study shall include descriptions of processes that owners, tenants, architects, and engineers may replicate when designing and constructing high-performance tenant spaces; policies and 

best practices to achieve energy intensities for lighting, plug loads, 

cooking, and other systems that satisfy commercial tenants’ needs; 

return on investment and payback analyses of the costs of highperformance energy efficiency measures that may be installed in 

separate spaces and their projected energy savings; and best practices that encourage design and construction of separate spaces at 

optimum energy efficiency to interact with a commercial building’s 

central systems. The study also shall include case studies reporting 

economic and energy savings returns in the design and construction phase of high-performance separate spaces. 

Section 4. Tenant Star program 

This section establishes a ‘‘Tenant Star’’ voluntary recognition 

program developed by the EPA Administrator, in consultation with 

the Secretary of Energy. 


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Section 4(a) incorporates the same definitions from section 3(a) 

for ‘‘high-performance energy efficiency measure’’ and ‘‘separate 

spaces.’’ 

Section 4(b) authorizes the development of the ‘‘Tenant Star’’ program within the existing ‘‘Energy Star’’ voluntary recognition program currently administered by EPA. The purpose of the ‘‘Tenant 

Star’’ recognition program is to promote energy efficiency in separate spaces leased by tenants in commercial buildings. 

Section 4(c) directs that the current Commercial Building Energy 

Consumption Survey (CBECS), a data-gathering program administered by DOE’s Energy Information Administration (EIA), collect 

data on categories of building occupants that are known to consume significant quantities of energy (e.g., data centers, trading 

floors, and restaurants). Such tenant-based data collected through 

CBECS shall be used to provide baseline information for the ‘‘Tenant Star’’ recognition program. Section 4(c)(2) acknowledges that it 

may not be feasible for EIA to collect all of the necessary data in 

the first CBECS conducted after the date of enactment of this section. 

Section 4(d) establishes two voluntary programs, developed by 

EPA after sufficient data is available with comments from the public, to recognize high energy efficiency practices and performance of 

commercial building tenants. • The first is ‘‘occupancy’’ based, where EPA provides recognition 

to tenants that voluntarily achieve high levels of energy efficiency 

while they occupy leased spaces. This occupancy-based recognition 

for high-performance separate spaces shall be based on EPA’s current ‘‘Energy Star’’ rating for energy efficient whole buildings. • The second is ‘‘design’’ based, where EPA (in consultation with 

DOE) may recognize commercial building owners and tenants that 

use high-performance energy efficiency measures at the start of 

lease terms when new spaces are ‘‘fitted-out’’ prior to occupancy. 

This program may be established after the study on high-performance design and construction of leased spaces authorized in section 

3 is completed. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (new matter is printed in italic 

and existing law in which no change is proposed is shown in 

roman): 

ENERGY INDEPENDENCE AND SECURITY ACT OF 2007 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) * * * 

(b) TABLE OF CONTENTS.—The table of contents of this Act is as 

follows: 

Sec. 1. Short title; table of contents. 

* * * * * * * 

TITLE IV—ENERGY SAVINGS IN BUILDINGS AND INDUSTRY 

* * * * * * * 


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Subtitle B—High-Performance Commercial Buildings 

* * * * * * * 

Sec. 424. Separate spaces with high-performance energy efficiency measures. 

Sec. 425. Tenant Star program. 

* * * * * * * 

TITLE IV—ENERGY SAVINGS IN BUILDINGS 

AND INDUSTRY 

* * * * * * * 

Subtitle B—High-Performance Commercial 

Buildings 

* * * * * * * 

SEC. 424. SEPARATE SPACES WITH HIGH-PERFORMANCE ENERGY EFFICIENCY MEASURES. 

(a) DEFINITIONS.—In this section: 

(1) HIGH-PERFORMANCE ENERGY EFFICIENCY MEASURE.—The 

term ‘‘high-performance energy efficiency measure’’ means a 

technology, product, or practice that will result in substantial 

operational cost savings by reducing energy consumption and 

utility costs. 

(2) SEPARATE SPACES.—The term ‘‘separate spaces’’ means 

areas within a commercial building that are leased or otherwise 

occupied by a tenant or other occupant for a period of time pursuant to the terms of a written agreement. 

(b) STUDY.— 

(1) IN GENERAL.—Not later than 1 year after the date of enactment of this section, the Secretary, acting through the Assistant Secretary of Energy Efficiency and Renewable Energy, shall 

complete a study on the feasibility of— 

(A) significantly improving energy efficiency in commercial buildings through the design and construction, by owners and tenants, of separate spaces with high-performance 

energy efficiency measures; and 

(B) encouraging owners and tenants to implement highperformance energy efficiency measures in separate spaces. 

(2) SCOPE.—The study shall, at a minimum, include— 

(A) descriptions of— 

(i) high-performance energy efficiency measures that 

should be considered as part of the initial design and 

construction of separate spaces; 

(ii) processes that owners, tenants, architects, and engineers may replicate when designing and constructing 

separate spaces with high-performance energy efficiency measures; 

(iii) policies and best practices to achieve reductions 

in energy intensities for lighting, plug loads, heating, 

cooling, cooking, laundry, and other systems to satisfy 

the needs of the commercial building tenant; 

(iv) return on investment and payback analyses of 

the incremental cost and projected energy savings of 

the proposed set of high-performance energy efficiency 


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measures, including consideration of available incentives; 

(v) models and simulation methods that predict the 

quantity of energy used by separate spaces with highperformance energy efficiency measures and that compare that predicted quantity to the quantity of energy 

used by separate spaces without high-performance energy efficiency measures but that otherwise comply 

with applicable building code requirements; 

(vi) measurement and verification platforms demonstrating actual energy use of high-performance energy efficiency measures installed in separate spaces, 

and whether such measures generate the savings intended in the initial design and construction of the separate spaces; 

(vii) best practices that encourage an integrated approach to designing and constructing separate spaces 

to perform at optimum energy efficiency in conjunction 

with the central systems of a commercial building; and 

(viii) any impact on employment resulting from the 

design and construction of separate spaces with highperformance energy efficiency measures; and 

(B) case studies reporting economic and energy savings 

returns in the design and construction of separate spaces 

with high-performance energy efficiency measures. 

(3) PUBLIC PARTICIPATION.—Not later than 90 days after the 

date of the enactment of this section, the Secretary shall publish 

a notice in the Federal Register requesting public comments regarding effective methods, measures, and practices for the design and construction of separate spaces with high-performance 

energy efficiency measures. 

(4) PUBLICATION.—The Secretary shall publish the study on 

the website of the Department of Energy. 

SEC. 425. TENANT STAR PROGRAM. 

(a) DEFINITIONS.—In this section: 

(1) HIGH-PERFORMANCE ENERGY EFFICIENCY MEASURE.—The 

term ‘‘high-performance energy efficiency measure’’ has the 

meaning given the term in section 424. 

(2) SEPARATE SPACES.—The term ‘‘separate spaces’’ has the 

meaning given the term in section 424. 

(b) TENANT STAR.—The Administrator of the Environmental Protection Agency, in consultation with the Secretary of Energy, shall 

develop a voluntary program within the Energy Star program established by section 324A of the Energy Policy and Conservation Act 

(42 U.S.C. 6294a), which may be known as Tenant Star, to promote 

energy efficiency in separate spaces leased by tenants or otherwise 

occupied within commercial buildings. 

(c) EXPANDING SURVEY DATA.—The Secretary of Energy, acting 

through the Administrator of the Energy Information Administration, shall— 

(1) collect, through each Commercial Buildings Energy Consumption Survey of the Energy Information Administration 

that is conducted after the date of enactment of this section, 

data on— 


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(A) categories of building occupancy that are known to 

consume significant quantities of energy, such as occupancy 

by data centers, trading floors, and restaurants; and 

(B) other aspects of the property, building operation, or 

building occupancy determined by the Administrator of the 

Energy Information Administration, in consultation with 

the Administrator of the Environmental Protection Agency, 

to be relevant in lowering energy consumption; 

(2) with respect to the first Commercial Buildings Energy 

Consumption Survey conducted after the date of enactment of 

this section, to the extent full compliance with the requirements 

of paragraph (1) is not feasible, conduct activities to develop the 

capability to collect such data and begin to collect such data; 

and 

(3) make data collected under paragraphs (1) and (2) available to the public in aggregated form and provide such data, 

and any associated results, to the Administrator of the Environmental Protection Agency for use in accordance with subsection 

(d). 

(d) RECOGNITION OF OWNERS AND TENANTS.— (1) OCCUPANCY-BASED RECOGNITION.—Not later than 1 year 

after the date on which sufficient data is received pursuant to 

subsection (c), the Administrator of the Environmental Protection Agency shall, following an opportunity for public notice 

and comment— 

(A) in a manner similar to the Energy Star rating system 

for commercial buildings, develop policies and procedures 

to recognize tenants in commercial buildings that voluntarily achieve high levels of energy efficiency in separate 

spaces; 

(B) establish building occupancy categories eligible for 

Tenant Star recognition based on the data collected under 

subsection (c) and any other appropriate data sources; and 

(C) consider other forms of recognition for commercial 

building tenants or other occupants that lower energy consumption in separate spaces. 

(2) DESIGN- AND CONSTRUCTION-BASED RECOGNITION.—After 

the study required by section 424(b) is completed, the Administrator of the Environmental Protection Agency, in consultation 

with the Secretary and following an opportunity for public notice and comment, may develop a voluntary program to recognize commercial building owners and tenants that use high-performance energy efficiency measures in the design and construction of separate spaces. 

* * * * * * * 

Æ 


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