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[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1358 Introduced in Senate (IS)]

107th CONGRESS
  1st Session
                                S. 1358

To revise Federal building energy efficiency performance standards, to 
    establish the Office of Federal Energy Productivity within the 
   Department of Energy, to amend Federal Energy Management Program 
  requirements under the National Energy Conservation Policy Act, to 
 enact into law certain requirements of Executive Order No. 13123, and 
                          for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             August 3, 2001

   Mr. Bayh introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL

 
To revise Federal building energy efficiency performance standards, to 
    establish the Office of Federal Energy Productivity within the 
   Department of Energy, to amend Federal Energy Management Program 
  requirements under the National Energy Conservation Policy Act, to 
 enact into law certain requirements of Executive Order No. 13123, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Facility Energy Management 
Act of 2001''.

SEC. 2. PURPOSE.

    The purpose of this Act is to increase the energy efficiency of 
facilities of Federal agencies by--
            (1) establishing the Office of Federal Energy Productivity 
        within the Department of Energy to provide for interagency 
        coordination in evaluating opportunities for, and 
        implementation of, energy efficiency measures and programs;
            (2) updating energy reduction goals;
            (3) expanding Federal agency resources for energy 
        measurement and improving accountability by providing for--
                    (A) energy metering and monitoring;
                    (B) transparent energy spending; and
                    (C) rigorous interagency and congressional 
                oversight;
            (4) promoting the acquisition and operation of more 
        efficient facilities by extending the authority and eligibility 
        of a Federal agency to enter into energy savings performance 
        contracts; and
            (5) establishing a reliable and steady source of funding 
        for permanent energy capital improvement available to 
        supplement appropriations for use by Federal agencies and the 
        Architect of the Capitol--
                    (A) to fund energy efficiency projects; and
                    (B) to leverage funding for energy savings 
                performance contracts.

SEC. 3. REVISED FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE 
              STANDARDS.

    Section 305 of the Energy Conservation and Production Act (42 
U.S.C. 6834) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2)(A), by striking ``CABO Model 
                Energy Code, 1992'' and inserting ``the International 
                Residential Code''; and
                    (B) by adding at the end the following:
            ``(3) Revised federal building energy efficiency 
        performance standards.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this paragraph, the Secretary of 
                Energy shall establish, by rule, revised Federal 
                building energy efficiency performance standards that 
                require that--
                            ``(i) new commercial buildings and 
                        multifamily high rise residential buildings be 
                        constructed so as--
                                    ``(I) to have, in the aggregate, a 
                                level of energy efficiency that is 10 
                                percent greater than the level of 
                                energy efficiency required under the 
                                standards established under paragraph 
                                (1); and
                                    ``(II) to meet or exceed the most 
                                recent ASHRAE Standard 90.1, approved 
                                by the American Society of Heating, 
                                Refrigerating and Air-Conditioning 
                                Engineers, Inc.;
                            ``(ii) new residential buildings (other 
                        than those described in clause (i)) be 
                        constructed so as to exceed the level of energy 
                        efficiency required under the most recent 
                        version of the International Residential Code 
                        by not less than 10 percent.
                    ``(B) Additional revisions.--Not later than 180 
                days after the date of approval of amendments to ASHRAE 
                Standard 90.1 or the International Residential Code, 
                the Secretary of Energy shall determine, based on the 
                cost-effectiveness of the requirements under the 
                amendments, whether the revised standards established 
                under this paragraph should be updated to reflect the 
                amendments.
                    ``(C) Computer software.--The Secretary of Energy 
                shall develop computer software to facilitate 
                compliance with the revised standards established under 
                this paragraph.
                    ``(D) Statement on compliance of new buildings.--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--
                            ``(i) a list of all new Federal buildings 
                        of the Federal agency; and
                            ``(ii) a statement concerning whether the 
                        Federal buildings meet or exceed the revised 
                        standards established under this paragraph, 
                        including a metering and commissioning 
                        component that is in compliance with the 
                        measurement and verification protocols of the 
                        Department of Energy.
                    ``(E) Authorization of appropriations.--There are 
                authorized to be appropriated such sums as are 
                necessary to carry out this paragraph and to implement 
                the revised standards established under this 
                paragraph.''; and
            (2) by adding at the end the following:
    ``(e) Energy Labeling Program.--The Secretary of Energy, in 
cooperation with the Administrator of the Environmental Protection 
Agency, shall develop an energy labeling program for new Federal 
buildings that exceed the revised standards established under 
subsection (a)(3) by 15 percent or more.
    ``(f) Collection of Interval Solar Data.--The Secretary of Commerce 
shall collect interval solar data at all weather stations under the 
jurisdiction of the Secretary of Commerce for use in determining 
building energy efficiency performance under this section.''.

SEC. 4. OFFICE OF FEDERAL ENERGY PRODUCTIVITY OF THE DEPARTMENT OF 
              ENERGY.

    (a) In General.--Title II of the Department of Energy Organization 
Act is amended by inserting after section 211 (42 U.S.C. 7141) the 
following:

``SEC. 212. OFFICE OF FEDERAL ENERGY PRODUCTIVITY.

    ``(a) Establishment.--There is established, within the Department, 
the Office of Federal Energy Productivity (referred to in this section 
as the `Office').
    ``(b) Assistant Secretary for Federal Energy Productivity.--
            ``(1) In general.--The Office shall be headed by the 
        Assistant Secretary for Federal Energy Productivity (referred 
        to in this section as the `Assistant Secretary'), who shall 
        report directly to the Secretary.
            ``(2) Duties.--The Assistant Secretary shall--
                    ``(A) ensure compliance with the energy use and 
                expenditure requirements applicable to Federal agencies 
                under Federal law (including Executive orders);
                    ``(B) perform all duties assigned to the Director 
                of the Federal Energy Management Program of the 
                Department of Energy, including duties assigned to the 
                Director by the President by any Executive order in 
                effect on the date of enactment of this subparagraph;
                    ``(C) coordinate implementation of energy 
                efficiency requirements by Federal agencies using staff 
                of the Office that have expertise in the mission of 
                each Federal agency;
                    ``(D) coordinate compilation of, and review, 
                energy-use reports required to be submitted by Federal 
                agencies under this Act and other Federal law 
                (including Executive orders);
                    ``(E) serve as a liaison from the Federal 
                Government to the private sector to identify 
                opportunities and obstacles to expanded private and 
                Federal markets for energy management technologies, 
                energy efficiency technologies, and renewable energy 
                technologies;
                    ``(F) operate the Federal Energy Bank established 
                by section 552 of the National Energy Conservation 
                Policy Act;
                    ``(G)(i) not later than 120 days after the date of 
                enactment of this subparagraph, issue such guidelines 
                for Federal agency energy preparedness and energy 
                emergency response as the Secretary determines to be 
                appropriate; and
                    ``(ii) in accordance with paragraph (3), receive, 
                review, and report on plans submitted by Federal 
                agencies in conformance with the guidelines; and
                    ``(H)(i) not later than 180 days after the date on 
                which the first Assistant Secretary takes office, 
                identify and submit to Congress a list of the principal 
                conservation officers under section 656; and
                    ``(ii) annually update the list.
            ``(3) Energy preparedness and energy emergency response 
        plans.--
                    ``(A) Submission by federal agencies.--The head of 
                each Federal agency shall submit to the Assistant 
                Secretary annually (or at such intervals as the 
                Secretary determines to be appropriate) an energy 
                preparedness and energy emergency response plan for the 
                Federal agency that is in conformance with the 
                guidelines issued under paragraph (2)(G)(i).
                    ``(B) Review by assistant secretary.--The Assistant 
                Secretary shall review each plan submitted under 
                subparagraph (A) for effectiveness and feasibility.
                    ``(C) Report to congress.--The Assistant Secretary 
                shall submit to the President and Congress an annual 
                report on the ability of each Federal agency--
                            ``(i) to reduce energy use on an emergency 
                        basis; and
                            ``(ii) to perform the mission of the 
                        Federal agency during such a period of 
                        emergency reduced energy use.
    ``(c) Liaison to Department of Defense.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of this paragraph, the Assistant Secretary shall 
        appoint an individual employed by the Office to serve as a 
        liaison to the Department of Defense.
            ``(2) Duties.--The individual appointed under paragraph (1) 
        shall coordinate energy efficiency measures, and energy 
        efficiency reporting to the President and Congress, into the 
        operation of the Department of Defense without compromising 
        national security or the defense mission of the Department of 
        Defense.
            ``(3) Security clearance.--The individual appointed under 
        paragraph (1) shall have appropriate security clearance.
    ``(d) Report to Congress.--The Secretary, acting through the 
Office, shall submit to Congress an annual report that--
            ``(1) describes the energy expenditures, investments, and 
        savings of each Federal agency;
            ``(2) describes the obstacles to meeting the energy 
        efficiency requirements under Federal law (including Executive 
        orders) that are faced by each Federal agency; and
            ``(3) includes an accounting of energy-consuming products 
        procured by each Federal agency that indicates--
                    ``(A) which energy-consuming products procured by 
                the Federal agency during the preceding year were 
                Energy Star products or FEMP designated products (as 
those terms are defined in section 551(a) of the National Energy 
Conservation Policy Act); and
                    ``(B) which energy-consuming products procured by 
                the Federal agency during the preceding year were 
                neither Energy Star products nor FEMP designated 
                products.
    ``(e) Audits of Federal Energy Management Programs.--
            ``(1) In general.--The Assistant Secretary may require the 
        Inspector General of each Federal agency to conduct audits of 
        the energy management programs of the Federal agency every 3 
        years.
            ``(2) Guidelines.--The Assistant Secretary shall--
                    ``(A) issue guidelines for the conduct of audits 
                described in paragraph (1); and
                    ``(B) conduct training for Inspectors General on 
                use of the guidelines.''.
    (b) Liaison From Department of Defense.--The Secretary of Defense 
shall--
            (1) establish as a senior level position within the 
        Department of Defense the position of energy management 
        liaison; and
            (2) assign to the official appointed to that position by 
        the Secretary of Defense the duty to coordinate with 
        appropriate officials of the Department of Defense and 
        appropriate officials of the Department of Energy concerning 
        energy use and expenditure requirements applicable to the 
        Department of Defense under Federal law (including Executive 
        orders).
    (c) Technical and Conforming Amendments.--The table of contents in 
the first section of the Department of Energy Organization Act (42 
U.S.C. 7101 note) is amended --
            (1) in the item relating to section 209, by striking 
        ``Section'' and inserting ``Sec.'';
            (2) by inserting after the item relating to section 211 the 
        following:

``Sec. 212. Office of Federal Energy Productivity.'';
        and
            (3) in the items relating to each of sections 213 through 
        216, by inserting ``Sec.'' before the section designation.

SEC. 5. ENERGY REDUCTION GOALS.

    (a) In General.--Section 543 of the National Energy Conservation 
Policy Act (42 U.S.C. 8253) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) In general.--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 calendar years 2002 through 
        2011 is reduced, as compared with the energy consumption per 
        gross square foot of the Federal buildings of the agency in 
        calendar year 2000, by the percentage specified in the 
        following table:

``Calendar year:                                  Percentage reduction:
    2002..........................................                   2 
    2003..........................................                   4 
    2004..........................................                   6 
    2005..........................................                   8 
    2006..........................................                  10 
    2007..........................................                  12 
    2008..........................................                  14 
    2009..........................................                  16 
    2010..........................................                  18 
    2011..........................................               20.'';
                    (B) by striking ``(2) An'' and inserting the 
                following:
            ``(2) Exclusion of certain federal buildings.--An''; and
                    (C) by adding at the end the following:
            ``(3) Review and revision of energy performance 
        requirement.--Not later than December 31, 2010, the Secretary 
        shall--
                    ``(A) review the results of the implementation of 
                the energy performance requirement established under 
                paragraph (1); and
                    ``(B) submit to Congress recommendations concerning 
                energy performance requirements for calendar years 2012 
                through 2021.''; and
            (2) in subsection (c)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) In general.--
                    ``(A) Exclusions.--An agency may exclude, from the 
                energy performance requirement for a calendar year 
                established under subsection (a) and the energy 
                management requirement established under subsection 
                (b), any Federal building or collection of Federal 
                buildings, and the associated energy consumption and 
                gross square footage, if--
                            ``(i) the head of the agency finds that 
                        compliance with those requirements would be 
                        impracticable; and
                            ``(ii) the agency has--
                                    ``(I) completed and submitted all 
                                federally required energy management 
                                reports;
                                    ``(II) achieved compliance with the 
                                energy efficiency requirements of--
                                            ``(aa) this Act;
                                            ``(bb) subtitle F of title 
                                        I of the Energy Policy Act of 
                                        1992 (42 U.S.C. 8262 et seq.);
                                            ``(cc) Executive orders; 
                                        and
                                            ``(dd) other Federal law; 
                                        and
                                    ``(III) implemented all 
                                practicable, cost-effective, life-cycle 
                                projects with respect to the Federal 
                                building or collection of Federal 
                                buildings to be excluded.
                    ``(B) Finding of impracticability.--A finding of 
                impracticability under subparagraph (A)(i) shall be 
                based on--
                            ``(i) the energy intensiveness of 
                        activities carried out in the Federal building 
                        or collection of Federal buildings; or
                            ``(ii) the fact that the Federal building 
                        or collection of Federal buildings is used in 
the performance of a national security function.'';
                    (B) in paragraph (2)--
                            (i) by striking ``(2) Each agency'' and 
                        inserting the following:
            ``(2) Review by secretary.--Each agency''; and
                            (ii) in the second sentence--
                                    (I) by striking ``impracticability 
                                standards'' and inserting ``standards 
                                for exclusion''; and
                                    (II) by striking ``a finding of 
                                impracticability'' and inserting ``the 
                                exclusion''; and
                    (C) by adding at the end the following:
            ``(3) Criteria.--Not later than 180 days after the date of 
        enactment of this paragraph, the Secretary shall issue 
        guidelines that establish criteria for exclusions under 
        paragraph (1).''.
    (b) Reports.--Section 548(b) of the National Energy Conservation 
Policy Act (42 U.S.C. 8258(b)) is amended--
            (1) in the subsection heading, by inserting ``the President 
        and'' before ``Congress''; and
            (2) by inserting ``President and'' before ``Congress''.
    (c) Conforming Amendment.--Section 550(d) of the National Energy 
Conservation Policy Act (42 U.S.C. 8258b(d)) is amended in the second 
sentence by striking ``the 20 percent reduction goal established under 
section 543(a) of the National Energy Conservation Policy Act (42 
U.S.C. 8253(a)).'' and inserting ``each of the energy reduction goals 
established under section 543(a).''.

SEC. 6. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.

    (a) In General.--Section 543 of the National Energy Conservation 
Policy Act (42 U.S.C. 8253) is amended by adding at the end the 
following:
    ``(e) Metering of Energy Use.--
            ``(1) In general.--Subject to paragraph (2), each agency 
        shall meter or submeter the energy use in each Federal 
        building, industrial process, and energy-using structure of the 
        agency.
            ``(2) Guidelines.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this subsection, the Secretary 
                shall issue guidelines concerning the extent of the 
                metering and submetering required under paragraph (1).
                    ``(B) Requirements for guidelines.--The guidelines 
                shall--
                            ``(i) take into consideration--
                                    ``(I) the cost of metering and 
                                submetering and the reduced cost of 
                                operation and maintenance expected to 
                                result from metering and submetering;
                                    ``(II) the extent to which metering 
                                and submetering are expected to result 
                                in--
                                            ``(aa) increased potential 
                                        for energy management;
                                            ``(bb) increased potential 
                                        for energy savings and energy 
                                        efficiency improvement; and
                                            ``(cc) cost and energy 
                                        savings due to utility contract 
                                        aggregation; and
                                    ``(III) the measurement and 
                                verification protocols of the 
                                Department of Energy;
                            ``(ii) include recommendations concerning 
                        the amount of funds and the number of trained 
                        personnel necessary to gather and use the 
                        metering information to track and reduce energy 
                        use;
                            ``(iii) establish 1 or more dates, not 
                        later than 1 year after the date of issuance of 
                        the guidelines, on which the requirement 
                        specified in paragraph (1) shall take effect; 
                        and
                            ``(iv) establish exclusions from the 
                        requirement specified in paragraph (1) based on 
                        the de minimus quantity of energy use of a 
                        Federal building, industrial process, or 
                        structure.
    ``(f) Use of Interval Data in Federal Buildings.--
            ``(1) In general.--Beginning not later than January 1, 
        2003, each agency shall use, to the maximum extent practicable, 
        for the purposes of efficient use of energy and reduction in 
        the cost of electricity used in the Federal buildings of the 
        agency, interval consumption data that measure on a real-time 
        or daily basis consumption of electricity in the Federal 
        buildings of the agency.
            ``(2) Plan.--As soon as practicable after the date of 
        enactment of this subsection, in a report submitted by the 
        agency under section 548(a), each agency shall submit to the 
        Secretary a plan describing how the agency will implement the 
        requirement of paragraph (1), including how the agency will 
        designate personnel primarily responsible for achieving the 
        requirement.''.
    (b) Budget Submissions to the President.--Section 545 of the 
National Energy Conservation Policy Act (42 U.S.C. 8255) is amended--
            (1) by inserting ``(a) Budget Submission to Congress.--'' 
        before ``The President''; and
            (2) by adding at the end the following:
    ``(b) Budget Submissions to the President.--The head of each agency 
shall submit to the President, as part of the budget request of the 
agency for each fiscal year, a statement of the amount of 
appropriations requested in the budget for the electric and other 
energy costs and compliance costs described in subsection (a).''.
    (c) Energy and Water Conservation Incentive Program.--Section 546 
of the National Energy Conservation Policy Act (42 U.S.C. 8256) is 
amended by adding at the end the following:
    ``(e) Energy and Water Conservation Incentive Program.--
            ``(1) In general.--In addition to the other incentive 
        programs established under this section, the Secretary shall 
establish an incentive program under which, for any fiscal year, of the 
amounts made available to each agency to pay the costs of providing 
energy and water for Federal buildings under the jurisdiction of the 
agency, the agency may retain, without fiscal year limitation, such 
amounts as are determined under paragraph (2) to have been saved 
because of energy and water management and conservation projects 
carried out by the agency.
            ``(2) Determination of retained amounts.--In cooperation 
        with the Secretary of Defense and the Director of the Office of 
        Management and Budget, the Secretary shall issue guidelines and 
        establish methodologies for--
                    ``(A) retention of amounts saved as described in 
                paragraph (1) for a period ending not more than 3 years 
                after the date of completion of the project that 
                resulted in the savings;
                    ``(B) establishment of a baseline amount of energy 
                and water expenditures, consisting of the amounts that 
                would be expended on energy or water but for 
                implementation of the project; and
                    ``(C) use by agencies of the baseline amounts 
                established under subparagraph (B) in submitting to the 
                President budget requests for appropriated amounts 
                equal to the amounts of savings that an agency is 
                expected to be entitled to retain under paragraph (1).
            ``(3) Use of retained amounts.--Amounts retained under 
        paragraph (1) may be used to carry out energy or water 
        management and conservation projects, invest in renewable 
        energy systems, and purchase electricity from renewable energy 
        sources for use, at the Federal building at which the project 
        that resulted in the savings was carried out.
            ``(4) Annual report on use of amounts.--Each report 
        submitted by an agency under section 548(a) shall describe--
                    ``(A)(i) the amounts retained under paragraph (1) 
                during the period covered by the report; and
                    ``(ii) the use of the amounts retained; and
                    ``(B) if no amounts were retained under paragraph 
                (1), why no amounts were retained and the plans of the 
                agency for retaining such amounts in the future.''.
    (d) Reports.--Section 548 of the National Energy Conservation 
Policy Act (42 U.S.C. 8258) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``and'' at the 
                end;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) the quantity of greenhouse gases emitted by the 
        Federal buildings of the agency during each fiscal year, as 
        measured by the agency in consultation with the Assistant 
        Secretary for Federal Energy Productivity of the Department of 
        Energy.'';
            (2) in subsection (b)(1)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by striking the semicolon 
                at the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(D) the quantity of greenhouse gases emitted by 
                the Federal buildings of each agency during each fiscal 
                year;''; and
            (3) by adding at the end the following:
    ``(d) Recommendations on Means of Accounting for Energy Use.--
            ``(1) In general.--The Secretary, in cooperation with the 
        Administrator of the Energy Information Agency, the 
        Administrator of General Services, and the Secretary of 
        Defense, shall conduct a study to develop recommendations on 
        the most accurate means of accounting for energy use in Federal 
        facilities.
            ``(2) Required recommendations.--Recommendations shall 
        include a recommendation concerning whether a uniform 
        performance measure based on British thermal units per gross 
        square foot is preferable to an agency-specific performance 
        measure or any other performance-based metric.
            ``(3) Report to congress.--Not later than 1 year after the 
        date of enactment of this subsection, the Secretary shall 
        submit to Congress a report on the results of the study.''.

SEC. 7. FEDERAL GOVERNMENT PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

    (a) Procurement of Energy Efficient Products.--
            (1) Requirements.--
                    (A) In general.--Part 3 of title V of the National 
                Energy Conservation Policy Act is amended--
                            (i) by redesignating section 551 (42 U.S.C. 
                        8259) as section 554; and
                            (ii) by inserting after section 550 (42 
                        U.S.C. 8258b) the following:

``SEC. 551. FEDERAL GOVERNMENT PROCUREMENT OF ENERGY EFFICIENT 
              PRODUCTS.

    ``(a) Definitions.--In this section:
            ``(1) Energy star product.--The term `Energy Star product' 
        means a product that is rated for energy efficiency under an 
        Energy Star program.
            ``(2) Energy star program.--The term `Energy Star program' 
        means a program administered by the Administrator of the 
        Environmental Protection Agency that involves voluntary 
        cooperation between that agency and an industry to enhance the 
        energy efficiency of the energy consuming products of the 
        industry so as to reduce--
                    ``(A) burdens on air conditioning and electrical 
                systems of buildings that result from the use of the 
                products in the buildings; and
                    ``(B) air pollution caused by utility power 
                generation.
            ``(3) Executive agency.--The term `executive agency' has 
        the meaning given the term in section 4 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403).
            ``(4) FEMP designated product.--The term `FEMP designated 
        product' means a product that is designated under the Federal 
        Energy Management Program of the Department of Energy as being 
        among the highest 25 percent of equivalent products for energy 
        efficiency.
    ``(b) Procurement of Energy Efficient Products.--
            ``(1) Requirement.--To meet the requirements of an 
        executive agency for an energy consuming product, the head of 
        the executive agency shall, except as provided in paragraph 
        (2), procure--
                    ``(A) an Energy Star product; or
                    ``(B) if there is no Energy Star product that meets 
                the requirements of the executive agency and that is 
                reasonably available, a FEMP designated product.
            ``(2) Exceptions.--The head of an executive agency is not 
        required to procure an Energy Star product or FEMP designated 
        product under paragraph (1) if--
                    ``(A) an Energy Star product or FEMP designated 
                product is not cost effective over the life cycle of 
                the product; or
                    ``(B) no Energy Star product or FEMP designated 
                product is reasonably available that meets the 
                requirements of the executive agency.
            ``(3) Procurement planning.--
                    ``(A) Requirement.--The head of an executive agency 
                shall incorporate into the specifications for a 
                procurement involving energy consuming products and 
                systems, and into the factors for the evaluation of 
                offers received for the procurement, criteria for 
                energy efficiency that are consistent with--
                            ``(i) the criteria for energy efficiency 
                        used for rating products under the applicable 
                        Energy Star program; and
                            ``(ii) the criteria used for designating 
                        products under the Federal Energy Management 
                        Program of the Department of Energy.
                    ``(B) Applicability.--The requirement of 
                subparagraph (A) shall apply to--
                            ``(i) a contract for new construction or 
                        renovation of a building;
                            ``(ii) a basic ordering agreement;
                            ``(iii) a blanket purchasing agreement;
                            ``(iv) a Government-wide procurement 
                        contract; and
                            ``(v) any other contract for a procurement 
                        described in that subparagraph.
    ``(c) Listing of Energy Efficient Products in Federal Catalogs.--
            ``(1) Development.--The Administrator of General Services 
        and the Director of the Defense Logistics Agency of the 
        Department of Defense shall--
                    ``(A) develop, and revise if appropriate, catalog 
                listings of Energy Star products and FEMP designated 
                products; and
                    ``(B) clearly identify in the listings the products 
                that are Energy Star products and the products that are 
                FEMP designated products.
            ``(2) Availability of listings.--The Administrator and the 
        Director shall make the listings available in printed and 
        electronic formats.
    ``(d) GSA and DLA Inventories and Listings.--No energy consuming 
product may be made available to any executive agency from an inventory 
or listing of products by the General Services Administration or the 
Defense Logistics Agency unless--
            ``(1) the product is an Energy Star product;
            ``(2) the product is a FEMP designated product and no 
        equivalent Energy Star product is reasonably available; or
            ``(3) no equivalent Energy Star product or FEMP designated 
        product is reasonably available.
    ``(e) Regulations.--The Secretary of Energy shall promulgate 
regulations to carry out this section, including policies and 
conditions for exercising authority under this section to procure 
energy consuming products other than Energy Star products and FEMP 
designated products.''.
                    (B) Conforming amendments.--
                            (i) The table of contents in section 1(b) 
                        of the National Energy Conservation Policy Act 
                        (42 U.S.C. 8201 note) is amended by striking 
                        the item relating to section 551 and inserting 
                        the following:

``Sec. 551. Federal Government procurement of energy efficient 
                            products.
``Sec. 552. Federal Energy Bank.
``Sec. 553. Energy and water savings measures in congressional 
                            buildings.
``Sec. 554. Definitions.''.
                            (ii) Section 151(5) of the Energy Policy 
                        Act of 1992 (42 U.S.C. 8262(5)) is amended by 
                        striking ``section 551(4)'' and inserting 
                        ``section 554(4)''.
                            (iii) Section 164(a) of the Energy Policy 
                        Act of 1992 (42 U.S.C. 8262h note; Public Law 
                        102-486) is amended by striking ``section 
                        551(5)'' and inserting ``section 554(5)''.
            (2) Implementation.--
                    (A) Regulations.--Not later than 180 days after the 
                effective date specified in subsection (d), the 
                Secretary of Energy shall promulgate regulations to 
                carry out section 551 of the National Energy 
                Conservation Policy Act (as added by paragraph 
                (1)(A)(ii)).
                    (B) Disposal of existing inventories.--An energy 
                consuming product that, on the effective date specified 
                in subsection (d), is in an inventory of products 
                offered by the General Services Administration or the 
                Defense Logistics Agency may be made available to an 
                executive agency out of that inventory without regard 
                to section 551(d) of the National Energy Conservation 
                Policy Act.
                    (C) Procurement of replacement inventory.--On and 
                after the effective date specified in subsection (d), 
                the Administrator of General Services and the Director 
                of the Defense Logistics Agency of the Department of 
                Defense may not list or procure for an inventory of 
                products offered by the General Services Administration 
or the Defense Logistics Agency an energy consuming product that, under 
section 551(d) of the National Energy Conservation Policy Act, may not 
be made available to executive agencies out of that inventory.
    (b) Procurement Guidelines.--The Secretary of Energy, in 
cooperation with the Secretary of Defense, shall issue guidelines that 
the Secretary of Defense may apply to the procurement of energy 
consuming products by the Department of Defense to ensure that, to the 
maximum extent feasible consistent with the performance of the national 
security missions of the Department of Defense, the products selected 
for procurement are energy efficient products.
    (c) Designation of Energy Star Products.--The Administrator of the 
Environmental Protection Agency and the Secretary of Energy shall--
            (1) expedite the process of designating products as Energy 
        Star products (as defined in section 551(a) of the National 
        Energy Conservation Policy Act (as added by subsection 
        (a)(1)(A)(ii))); and
            (2) merge the efficiency rating procedures used by the 
        Environmental Protection Agency and the Department of Energy 
        under the Energy Star programs (as defined in section 551(a) of 
        that Act).
    (d) Effective Date.--Subsection (a) and the amendment made by that 
subsection take effect on the date that is 180 days after the date of 
enactment of this Act.

SEC. 8. FEDERAL ENERGY BANK.

    Part 3 of title V of the National Energy Conservation Policy Act is 
amended by inserting after section 551 (as added by section 
7(a)(1)(A)(ii)) the following:

``SEC. 552. FEDERAL ENERGY BANK.

    ``(a) Definitions.--In this section:
            ``(1) Bank.--The term `Bank' means the Federal Energy Bank 
        established by subsection (b).
            ``(2) Energy or water efficiency project.--The term `energy 
        or water efficiency project' means a project that assists a 
        Federal agency in meeting or exceeding the energy or water 
        efficiency requirements of--
                    ``(A) this part;
                    ``(B) title VIII;
                    ``(C) subtitle F of title I of the Energy Policy 
                Act of 1992 (42 U.S.C. 8262 et seq.); or
                    ``(D) any applicable Executive order, including 
                Executive Order No. 13123 (42 U.S.C. 8251 note (June 3, 
                1999)).
            ``(3) Federal agency.--The term `Federal agency' means--
                    ``(A) an Executive agency (as defined in section 
                105 of title 5, United States Code);
                    ``(B) the United States Postal Service;
                    ``(C) the United States Patent and Trademark 
                Office;
                    ``(D) Congress and any other entity in the 
                legislative branch; and
                    ``(E) a Federal court and any other entity in the 
                judicial branch.
            ``(4) Utility payment.--The term `utility payment' means a 
        payment made to supply electricity, natural gas, or any other 
        form of energy to provide the heating, ventilation, air 
        conditioning, lighting, or other energy needs of a facility of 
        a Federal agency.
    ``(b) Establishment of Bank.--
            ``(1) In general.--There is established in the Treasury of 
        the United States a fund to be known as the `Federal Energy 
        Bank', consisting of--
                    ``(A) such amounts as are deposited in the Bank 
                under paragraph (2);
                    ``(B) such amounts as are repaid to the Bank under 
                subsection (c)(2)(D); and
                    ``(C) any interest earned on investment of amounts 
                in the Bank under paragraph (3).
            ``(2) Deposits in bank.--
                    ``(A) In general.--Subject to the availability of 
                appropriations and to subparagraph (B), the Secretary 
                of the Treasury shall deposit in the Bank an amount 
                equal to 2.5 percent for fiscal year 2003 and 5 percent 
                for each fiscal year thereafter of the total amount of 
                utility payments made by all Federal agencies for the 
                preceding fiscal year.
                    ``(B) Maximum amount in bank.--Deposits under 
                subparagraph (A) shall cease beginning with the fiscal 
                year following the fiscal year in which the amounts in 
                the Bank (including amounts on loan from the Bank) 
                become equal to or exceed $1,000,000,000.
                    ``(C) Limitation.--No funds made available to any 
                Federal agency (other than to the Department of the 
                Treasury under subsection (f)) shall be deposited in 
                the Bank.
            ``(3) Investment of amounts.--The Secretary of the Treasury 
        shall invest such portion of the Bank as is not, in the 
        judgment of the Secretary, required to meet current 
        withdrawals. Investments may be made only in interest-bearing 
        obligations of the United States.
    ``(c) Loans From the Bank.--
            ``(1) In general.--The Secretary of the Treasury shall 
        transfer from the Bank to the Secretary such amounts as are 
        appropriated to carry out the loan program under paragraph (2).
            ``(2) Loan program.--
                    ``(A) Establishment.--
                            ``(i) In general.--In accordance with 
                        subsection (d), the Secretary, in consultation 
                        with the Secretary of Defense, the 
                        Administrator of General Services, and the 
                        Director of the Office of Management and 
                        Budget, shall establish a program to make loans 
                        of amounts in the Bank to any Federal agency 
                        that submits an application satisfactory to the 
                        Secretary in order to pay the costs of a 
                        project described in subparagraph (C).
                            ``(ii) Commencement of operations.--The 
                        Secretary may begin--
                                    ``(I) accepting applications for 
                                loans from the Bank in fiscal year 
                                2002; and
                                    ``(II) making loans from the Bank 
                                in fiscal year 2003.
                    ``(B) Energy savings performance contracting 
                funding.--The Secretary shall not make a loan from the 
                Bank to a Federal agency for a project for which 
                funding is available and is acceptable to the Federal 
                agency under title VIII.
                    ``(C) Purposes of loan.--
                            ``(i) In general.--A loan from the Bank may 
                        be used to pay--
                                    ``(I) the costs of an energy or 
                                water efficiency project, or a 
                                renewable or alternative energy 
                                project, for a new or existing Federal 
                                building (including selection and 
                                design of the project);
                                    ``(II) the costs of an energy 
                                metering plan developed in accordance 
                                with the measurement and verification 
                                protocols of the Department of Energy, 
                                or energy metering equipment, for the 
                                purpose of--
                                            ``(aa) a new or existing 
                                        building energy system; or
                                            ``(bb) verification of the 
                                        energy savings under an energy 
                                        savings performance contract 
                                        under title VIII; or
                                    ``(III) at the time of contracting, 
                                the costs of development or cofunding 
                                of an energy savings performance 
                                contract (including a utility energy 
                                service agreement) in order to shorten 
                                the payback period of the project that 
                                is the subject of the energy savings 
                                performance contract.
                            ``(ii) Limitation.--A Federal agency may 
                        use not more than 10 percent of the amount of a 
                        loan under subclause (I) or (II) of clause (i) 
                        to pay the costs of administration and proposal 
                        development (including data collection and 
                        energy surveys).
                            ``(iii) Renewable and alternative energy 
                        projects.--Not more than 25 percent of the 
                        amount on loan from the Bank at any time may be 
                        loaned for renewable energy and alternative 
                        energy projects (as defined by the Secretary in 
                        accordance with applicable law (including 
                        Executive orders)).
                    ``(D) Repayments.--
                            ``(i) In general.--Subject to clauses (ii) 
                        through (iv), a Federal agency shall repay to 
                        the Bank the principal amount of a loan plus 
                        interest at a rate determined by the President, 
                        in consultation with the Secretary and the 
                        Secretary of the Treasury.
                            ``(ii) Waiver or reduction of interest.--
                        The Secretary may waive or reduce the rate of 
                        interest required to be paid under clause (i) 
                        if the Secretary determines that payment of 
                        interest by a Federal agency at the rate 
                        determined under that clause is not required to 
                        fund the operations of the Bank.
                            ``(iii) Determination of interest rate.--
                        The interest rate determined under clause (i) 
                        shall be at a rate that is sufficient to ensure 
                        that, beginning not later than October 1, 2007, 
                        interest payments will be sufficient to fully 
                        fund the operations of the Bank.
                            ``(iv) Insufficiency of appropriations.--
                                    ``(I) Request for appropriations.--
                                As part of the budget request of the 
                                Federal agency for each fiscal year, 
                                the head of each Federal agency shall 
                                submit to the President a request for 
                                such amounts as are necessary to make 
                                such repayments as are expected to 
                                become due in the fiscal year under 
                                this subparagraph.
                                    ``(II) Suspension of repayment 
                                requirement.--If, for any fiscal year, 
                                sufficient appropriations are not made 
                                available to a Federal agency to make 
                                repayments under this subparagraph, the 
                                Bank shall suspend the requirement of 
                                repayment under this subparagraph until 
                                such appropriations are made available.
                    ``(E) Federal agency energy budgets.--Until a loan 
                is repaid, a Federal agency budget submitted by the 
                President to Congress for a fiscal year shall not be 
                reduced by the value of energy savings accrued as a 
                result of any energy conservation measure implemented 
                using amounts from the Bank.
                    ``(F) No rescission or reprogramming.--A Federal 
                agency shall not rescind or reprogram loan amounts made 
                available from the Bank except as permitted under 
                guidelines issued under subparagraph (G).
                    ``(G) Guidelines.--The Secretary shall issue 
                guidelines for implementation of the loan program under 
                this paragraph, including selection criteria, maximum 
                loan amounts, and loan repayment terms.
    ``(d) Selection Criteria.--
            ``(1) In general.--The Secretary shall establish criteria 
        for the selection of projects to be awarded loans in accordance 
        with paragraph (2).
            ``(2) Selection criteria.--
                    ``(A) In general.--The Secretary may make loans 
                from the Bank only for a project that--
                            ``(i) is technically feasible;
                            ``(ii) is determined to be cost-effective 
                        using life cycle cost methods established by 
                        the Secretary by regulation;
                            ``(iii) includes a measurement and 
                        management component, based on the measurement 
                        and verification protocols of the Department of 
                        Energy, to--
                                    ``(I) commission energy savings for 
                                new and existing Federal facilities;
                                    ``(II) monitor and improve energy 
                                efficiency management at existing 
                                Federal facilities; and
                                    ``(III) verify the energy savings 
                                under an energy savings performance 
                                contract under title VIII; and
                            ``(iv)(I) in the case of renewable energy 
                        or alternative energy project, has a simple 
                        payback period of not more than 15 years; and
                            ``(II) in the case of any other project, 
                        has a simple payback period of not more than 10 
                        years.
                    ``(B) Priority.--In selecting projects, the 
                Secretary shall give priority to projects that--
                            ``(i) are a component of a comprehensive 
                        energy management project for a Federal 
                        facility; and
                            ``(ii) are designed to significantly reduce 
                        the energy use of the Federal facility.
    ``(e) Reports and Audits.--
            ``(1) Reports to the secretary.--Not later than 1 year 
        after the completion of installation of a project that has a 
        cost of more than $1,000,000, and annually thereafter, a 
        Federal agency shall submit to the Secretary a report that--
                    ``(A) states whether the project meets or fails to 
                meet the energy savings projections for the project; 
                and
                    ``(B) for each project that fails to meet the 
                energy savings projections, states the reasons for the 
                failure and describes proposed remedies.
            ``(2) Audits.--The Secretary may audit, or require a 
        Federal agency that receives a loan from the Bank to audit, any 
        project financed with amounts from the Bank to assess the 
        performance of the project.
            ``(3) Reports to congress.--At the end of each fiscal year, 
        the Secretary shall submit to the Committee on Energy and 
        Commerce of the House of Representatives and the Committee on 
        Energy and Natural Resources of the Senate a report on the 
        operations of the Bank, including a statement of--
                    ``(A) the total receipts by the Bank;
                    ``(B) the total amount of loans from the Bank to 
                each Federal agency; and
                    ``(C) the estimated cost and energy savings 
                resulting from projects funded with loans from the 
                Bank.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Department of the Treasury such sums as are 
necessary to fund--
            ``(1) deposits required under subsection (b)(2); and
            ``(2) the costs to the Treasury associated with the loan 
        program established under subsection (c)(2), as determined in 
        accordance with guidelines issued by the Office of Management 
        and Budget.''.

SEC. 9. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL BUILDINGS.

    (a) In General.--Part 3 of title V of the National Energy 
Conservation Policy Act is amended by inserting after section 552 (as 
added by section 8) the following:

``SEC. 553. ENERGY AND WATER SAVINGS MEASURES IN CONGRESSIONAL 
              BUILDINGS.

    ``(a) In General.--The Architect of the Capitol--
            ``(1) shall develop and implement a cost-effective energy 
        conservation strategy for all facilities administered by 
        Congress (referred to in this section as `congressional 
        buildings') to meet the mandatory standards for Federal 
        buildings established under title III of the Energy 
        Conservation and Production Act (42 U.S.C. 6831 et seq.);
            ``(2) shall submit to Congress, not later than 120 days 
        after the date of enactment of this section, a revised 
        comprehensive energy conservation and management plan that 
        includes life cycle cost methods to determine the cost-
        effectiveness of proposed energy efficiency projects;
            ``(3) shall submit to Congress annually a report on 
        congressional energy management and conservation programs that 
        describes in detail--
                    ``(A) energy expenditures and cost estimates for 
                each facility;
                    ``(B) energy management and conservation projects; 
                and
                    ``(C) future priorities to ensure compliance with 
                this section;
            ``(4) shall perform energy surveys of all congressional 
        buildings and update the surveys as necessary;
            ``(5) shall use the surveys to determine the cost and 
        payback period of energy and water conservation measures likely 
        to achieve the energy consumption levels specified in the 
        strategy developed under paragraph (1);
            ``(6) shall install energy and water conservation measures 
        that will achieve those levels through life cycle cost methods 
        and procedures included in the plan submitted under paragraph 
        (2);
            ``(7) may contract with nongovernmental entities and use 
        private sector capital to finance energy conservation projects 
        and achieve energy consumption targets;
            ``(8) may develop innovative contracting methods that will 
        attract private sector funding for the installation of energy 
        efficient and renewable energy technology to meet the 
        requirements of this section, such as energy savings 
        performance contracts described in title VIII;
            ``(9) may participate in the Financing Renewable Energy and 
        Efficiency (FREE) Savings contracts program for Federal 
        Government facilities established by the Department of Energy;
            ``(10) not later than 100 days after the date of enactment 
        of this section, shall submit to Congress the results of a 
        study of the installation of submetering in congressional 
        buildings;
            ``(11) shall produce information packages and `how-to' 
        guides for each Member and employing authority of Congress that 
        detail simple, cost-effective methods to save energy and 
        taxpayer dollars;
            ``(12) shall ensure that state-of-the-art energy efficiency 
        technologies are used in the construction of the Visitor 
        Center; and
            ``(13) shall include in the Visitor Center an exhibit on 
        the energy efficiency measures used in congressional buildings.
    ``(b) Energy and Water Conservation Incentive.--
            ``(1) In general.--For any fiscal year, of the amounts made 
        available to the Architect of the Capitol to pay the costs of 
        providing energy and water for congressional buildings, the 
        Architect may retain, without fiscal year limitation, such 
        amounts as the Architect determines were not expended because 
        of energy and water management and conservation projects.
            ``(2) Use of retained amounts.--Amounts retained under 
        paragraph (1) may be used to carry out energy and water 
        management and conservation projects.
            ``(3) Annual report on use of amounts.--As part of each 
        annual report under subsection (a)(3), the Architect of the 
        Capitol shall submit to Congress a report on the amounts 
        retained under paragraph (1) and the use of the amounts.''.
    (b) Repeal.--Section 310 of the Legislative Branch Appropriations 
Act, 1999 (40 U.S.C. 166i), is repealed.

SEC. 10. ENERGY SAVINGS PERFORMANCE CONTRACTS.

    (a) Cost Savings From Replacement Facilities.--Section 801(a) of 
the National Energy Conservation Policy Act (42 U.S.C. 8287(a)) is 
amended by adding at the end the following:
            ``(3) Cost savings from replacement facilities.--
                    ``(A) In general.--In the case of an energy savings 
                performance contract that provides for energy savings 
                through the construction and operation of 1 or more 
                buildings or other facilities to replace 1 or more 
                existing buildings or other facilities, benefits 
                ancillary to the purpose of achieving energy savings 
                under the contract may include, for the purpose of 
                paragraph (1), savings resulting from reduced costs of 
                operation and maintenance at the replacement buildings 
                or other facilities as compared with the costs of 
                operation and maintenance at the buildings or other 
                facilities being replaced.
                    ``(B) Determination of payments.--Notwithstanding 
                paragraph (2)(B), the aggregate annual payments by a 
                Federal agency under an energy savings performance 
                contract described in subparagraph (A) may take into 
                account (through the procedures developed under this 
                section) savings resulting from reduced costs of 
                operation and maintenance as described in subparagraph 
                (A).''.
    (b) Repeal of Sunset.--Section 801 of the National Energy 
Conservation Policy Act (42 U.S.C. 8287) is amended by striking 
subsection (c).
    (c) Definitions.--The National Energy Conservation Policy Act is 
amended by striking section 804 (42 U.S.C. 8287c) and inserting the 
following:

``SEC. 804. DEFINITIONS.

    ``In this title:
            ``(1) Energy conservation measure.--The term `energy 
        conservation measure' has the meaning given the term in section 
        554.
            ``(2) Energy saving.--The term `energy saving' means a 
        reduction, from a baseline cost established through a 
        methodology set forth in an energy savings performance 
        contract, in the cost of energy or water used in--
                    ``(A) 1 or more existing federally owned buildings 
                or other federally owned facilities, that results 
                from--
                            ``(i) the lease or purchase of operating 
                        equipment, an improvement, altered operation or 
                        maintenance, or a technical service;
                            ``(ii) increased efficiency in the use of 
                        existing energy sources by cogeneration or heat 
                        recovery, excluding any cogeneration process 
                        for a building that is not a federally owned 
                        building or a facility that is not federally 
                        owned facility; or
                            ``(iii) increased efficiency in the use of 
                        existing water sources or treatment of 
                        wastewater or stormwater; or
                    ``(B) a replacement facility under section 
                801(a)(3).
            ``(3) Energy savings performance contract.--The term 
        `energy savings performance contract' means a contract that 
        provides for--
                    ``(A) the performance of services for the design, 
                acquisition, installation, testing, operation, and, 
                where appropriate, maintenance and repair, of an energy 
                conservation measure or water conservation measure (or 
                series of such measures) at 1 or more locations; or
                    ``(B) energy savings through the construction and 
                operation of 1 or more buildings or other facilities to 
                replace 1 or more existing buildings or other 
                facilities.
            ``(4) Federal agency.--The term `Federal agency' means each 
        authority of the United States Government, regardless of 
        whether the authority is within or subject to review by another 
        agency.
            ``(5) Water conservation measure.--The term `water 
        conservation measure' means a conservation measure that--
                    ``(A) improves the efficiency of use of water;
                    ``(B) is cost-effective over the life cycle of the 
                water conservation measure; and
                    ``(C) involves water conservation, water recycling 
                or reuse, more efficient treatment of wastewater or 
                stormwater, an improvement in operation or maintenance 
                efficiency, a retrofit activity, or any other related 
                activity, that is carried out at a building or other 
                facility that is not a Federal hydroelectric 
                facility.''.

SEC. 11. FEDERAL FLEET FUEL ECONOMY AND USE OF ALTERNATIVE FUELS.

    (a) In General.--Section 303 of the Energy Policy Act of 1992 (42 
U.S.C. 13212) is amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following:
    ``(f) Federal Fleet Fuel Economy and Use of Alternative Fuels.--
            ``(1) Definitions.--
                    ``(A) Average fuel economy.--The term `average fuel 
                economy' has the meaning given the term in section 
                32901 of title 49, United States Code.
                    ``(B) Covered vehicle.--
                            ``(i) In general.--The term `covered 
                        vehicle' means a passenger automobile or light 
                        duty motor vehicle.
                            ``(ii) Exclusions.--The term `covered 
                        vehicle' does not include--
                                    ``(I) a military tactical vehicle 
                                of the Armed Forces; or
                                    ``(II) any law enforcement, 
                                emergency, or other vehicle class or 
                                type determined to be excluded under 
                                guidelines issued by the Secretary of 
                                Energy under paragraph (6).
                    ``(C) Federal agency.--The term `Federal agency' 
                means an Executive agency (as defined in section 105 of 
                title 5, United States Code) (including each military 
                department (as specified in section 102 of that title)) 
                that operates 20 or more motor vehicles in the United 
                States.
                    ``(D) Passenger automobile.--The term `passenger 
                automobile' has the meaning given the term in section 
                32901 of title 49, United States Code.
            ``(2) Minimum average fuel economy.--In fiscal year 2005 
        and each fiscal year thereafter, the average fuel economy of 
        the covered vehicles acquired by each Federal agency shall be 
        not less than 3 miles per gallon greater than the average fuel 
        economy of the covered vehicles acquired by the Federal agency 
        in fiscal year 2000.
            ``(3) Use of alternative fuels.--
                    ``(A) In general.--Subject to subparagraph (B), in 
                fiscal year 2005 and each fiscal year thereafter, each 
                Federal agency shall use alternative fuels for at least 
                50 percent of the total annual volume of motor fuel 
                used by the Federal agency to operate covered vehicles.
                    ``(B) Inclusion of motor fuel purchased by state 
                and local governments.--Not more than 25 percent of the 
                motor fuel purchased by State and local governments at 
                federally-owned refueling facilities may be included by 
                a Federal agency in meeting the requirement of 
                subparagraph (A).
            ``(4) Implementation plan.--Not later than 1 year after the 
        date of enactment of this paragraph, each Federal agency shall 
        develop and submit to the President and Congress an 
        implementation plan for meeting the requirements of this 
        subsection that takes into account the fleet configuration and 
        fleet requirements of the Federal agency.
            ``(5) Annual report.--
                    ``(A) In general.--Each Federal agency shall submit 
                to the President and Congress an annual report on the 
                progress of the Federal agency in meeting the 
                requirements of this subsection.
                    ``(B) Guidelines.--The Secretary of Energy, acting 
                through the Assistant Secretary for Federal Energy 
                Productivity and in consultation with the Administrator 
                of the Energy Information Administration, shall issue 
                guidelines for the preparation by Federal agencies of 
                reports under paragraph (1), including guidelines 
                concerning--
                            ``(i) methods for measurement of average 
                        fuel economy; and
                            ``(ii) the collection and annual reporting 
                        of data to demonstrate compliance with this 
                        subsection.
            ``(6) Guidelines concerning exclusion of certain 
        vehicles.--Not later than 1 year after the date of enactment of 
        this paragraph, the Secretary of Energy, in consultation with 
        the Assistant Secretary for Federal Energy Productivity, shall 
        issue guidelines for Federal agencies to use in the 
        determination of vehicles to be excluded under paragraph 
        (1)(B)(ii).''.
    (b) Alternative Fuel Use by Light Duty Federal Vehicles.--Section 
400AA of the Energy Policy and Conservation Act (42 U.S.C. 6374) is 
amended--
            (1) in subsection (a)(3)(E)--
                    (A) by striking ``(E) Dual'' and inserting the 
                following:
                    ``(E) Operation of dual fueled vehicles.--
                            ``(i) In general.--Subject to clause (ii), 
                        dual''; and
                    (B) by adding at the end the following:
                            ``(ii) Minimum alternative fuel use.--For 
                        fiscal year 2005 and each fiscal year 
                        thereafter, not less than 50 percent of the 
                        total annual volume of fuel used to operate 
                        dual fueled vehicles acquired pursuant to this 
                        section shall consist of alternative fuels.''; 
                        and
            (2) in subsection (g)(4)(B), by inserting before the 
        semicolon at the end the following: ``, including any 3-wheeled 
        enclosed electric vehicle that has a vehicle identification 
        number''.
                                 <all>
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