II

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Federal Facility En3 ergy Management Act of 2001’’.

4 SEC. 2. PURPOSE.

5 The purpose of this Act is to increase the energy effi6 ciency of facilities of Federal agencies by—

7 (1) establishing the Office of Federal Energy

8 Productivity within the Department of Energy to

9 provide for interagency coordination in evaluating

10 opportunities for, and implementation of, energy ef11 ficiency measures and programs;

12 (2) updating energy reduction goals;

13 (3) expanding Federal agency resources for en14 ergy measurement and improving accountability by

15 providing for—

16 (A) energy metering and monitoring;

17 (B) transparent energy spending; and

18 (C) rigorous interagency and congressional

19 oversight;

20 (4) promoting the acquisition and operation of

21 more efficient facilities by extending the authority

22 and eligibility of a Federal agency to enter into en23 ergy savings performance contracts; and

24 (5) establishing a reliable and steady source of

25 funding for permanent energy capital improvement
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1 available to supplement appropriations for use by

2 Federal agencies and the Architect of the Capitol—

3 (A) to fund energy efficiency projects; and

4 (B) to leverage funding for energy savings

5 performance contracts.

6 SEC. 3. REVISED FEDERAL BUILDING ENERGY EFFICIENCY

7 PERFORMANCE STANDARDS.

8 Section 305 of the Energy Conservation and Produc9 tion Act (42 U.S.C. 6834) is amended—

10 (1) in subsection (a)—

11 (A) in paragraph (2)(A), by striking

12 ‘‘CABO Model Energy Code, 1992’’ and insert13 ing ‘‘the International Residential Code’’; and

14 (B) by adding at the end the following:

15 ‘‘(3) REVISED FEDERAL BUILDING ENERGY EF16 FICIENCY PERFORMANCE STANDARDS.—

17 ‘‘(A) IN GENERAL.—Not later than 1 year

18 after the date of enactment of this paragraph,

19 the Secretary of Energy shall establish, by rule,

20 revised Federal building energy efficiency per21 formance standards that require that—

22 ‘‘(i) new commercial buildings and

23 multifamily high rise residential buildings

24 be constructed so as—
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1 ‘‘(I) to have, in the aggregate, a

2 level of energy efficiency that is 10

3 percent greater than the level of en4 ergy efficiency required under the

5 standards established under para6 graph (1); and

7 ‘‘(II) to meet or exceed the most

8 recent ASHRAE Standard 90.1, ap9 proved by the American Society of

10 Heating, Refrigerating and Air-Condi11 tioning Engineers, Inc.;

12 ‘‘(ii) new residential buildings (other

13 than those described in clause (i)) be con14 structed so as to exceed the level of energy

15 efficiency required under the most recent

16 version of the International Residential

17 Code by not less than 10 percent.

18 ‘‘(B) ADDITIONAL REVISIONS.—Not later

19 than 180 days after the date of approval of

20 amendments to ASHRAE Standard 90.1 or the

21 International Residential Code, the Secretary of

22 Energy shall determine, based on the cost-effec23 tiveness of the requirements under the amend24 ments, whether the revised standards estab-
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1 lished under this paragraph should be updated

2 to reflect the amendments.

3 ‘‘(C) COMPUTER SOFTWARE.—The Sec4 retary of Energy shall develop computer soft5 ware to facilitate compliance with the revised

6 standards established under this paragraph.

7 ‘‘(D) STATEMENT ON COMPLIANCE OF

8 NEW BUILDINGS.—In the budget request of the

9 Federal agency for each fiscal year and each re10 port submitted by the Federal agency under

11 section 548(a) of the National Energy Con12 servation Policy Act (42 U.S.C. 8258(a)), the

13 head of each Federal agency shall include—

14 ‘‘(i) a list of all new Federal buildings

15 of the Federal agency; and

16 ‘‘(ii) a statement concerning whether

17 the Federal buildings meet or exceed the

18 revised standards established under this

19 paragraph, including a metering and com20 missioning component that is in compli21 ance with the measurement and

22 verification protocols of the Department of

23 Energy.

24 ‘‘(E) AUTHORIZATION OF APPROPRIA25 TIONS.—There are authorized to be appro-
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1 priated such sums as are necessary to carry out

2 this paragraph and to implement the revised

3 standards established under this paragraph.’’;

4 and

5 (2) by adding at the end the following:

6 ‘‘(e) ENERGY LABELING PROGRAM.—The Secretary

7 of Energy, in cooperation with the Administrator of the

8 Environmental Protection Agency, shall develop an energy

9 labeling program for new Federal buildings that exceed

10 the revised standards established under subsection (a)(3)

11 by 15 percent or more.

12 ‘‘(f) COLLECTION OF INTERVAL SOLAR DATA.—The

13 Secretary of Commerce shall collect interval solar data at

14 all weather stations under the jurisdiction of the Secretary

15 of Commerce for use in determining building energy effi16 ciency performance under this section.’’.

17 SEC. 4. OFFICE OF FEDERAL ENERGY PRODUCTIVITY OF

18 THE DEPARTMENT OF ENERGY.

19 (a) IN GENERAL.—Title II of the Department of En20 ergy Organization Act is amended by inserting after sec21 tion 211 (42 U.S.C. 7141) the following:

22 ‘‘SEC. 212. OFFICE OF FEDERAL ENERGY PRODUCTIVITY.

23 ‘‘(a) ESTABLISHMENT.—There is established, within

24 the Department, the Office of Federal Energy Produc25 tivity (referred to in this section as the ‘Office’).
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1 ‘‘(b) ASSISTANT SECRETARY FOR FEDERAL ENERGY

2 PRODUCTIVITY.—

3 ‘‘(1) IN GENERAL.—The Office shall be headed

4 by the Assistant Secretary for Federal Energy Pro5 ductivity (referred to in this section as the ‘Assistant

6 Secretary’), who shall report directly to the Sec7 retary.

8 ‘‘(2) DUTIES.—The Assistant Secretary shall—

9 ‘‘(A) ensure compliance with the energy

10 use and expenditure requirements applicable to

11 Federal agencies under Federal law (including

12 Executive orders);

13 ‘‘(B) perform all duties assigned to the Di14 rector of the Federal Energy Management Pro15 gram of the Department of Energy, including

16 duties assigned to the Director by the President

17 by any Executive order in effect on the date of

18 enactment of this subparagraph;

19 ‘‘(C) coordinate implementation of energy

20 efficiency requirements by Federal agencies

21 using staff of the Office that have expertise in

22 the mission of each Federal agency;

23 ‘‘(D) coordinate compilation of, and review,

24 energy-use reports required to be submitted by
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1 Federal agencies under this Act and other Fed2 eral law (including Executive orders);

3 ‘‘(E) serve as a liaison from the Federal

4 Government to the private sector to identify op5 portunities and obstacles to expanded private

6 and Federal markets for energy management

7 technologies, energy efficiency technologies, and

8 renewable energy technologies;

9 ‘‘(F) operate the Federal Energy Bank es10 tablished by section 552 of the National Energy

11 Conservation Policy Act;

12 ‘‘(G)(i) not later than 120 days after the

13 date of enactment of this subparagraph, issue

14 such guidelines for Federal agency energy pre15 paredness and energy emergency response as

16 the Secretary determines to be appropriate; and

17 ‘‘(ii) in accordance with paragraph (3), re18 ceive, review, and report on plans submitted by

19 Federal agencies in conformance with the

20 guidelines; and

21 ‘‘(H)(i) not later than 180 days after the

22 date on which the first Assistant Secretary

23 takes office, identify and submit to Congress a

24 list of the principal conservation officers under

25 section 656; and
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1 ‘‘(ii) annually update the list.

2 ‘‘(3) ENERGY PREPAREDNESS AND ENERGY

3 EMERGENCY RESPONSE PLANS.—

4 ‘‘(A) SUBMISSION BY FEDERAL AGEN5 CIES.—The head of each Federal agency shall

6 submit to the Assistant Secretary annually (or

7 at such intervals as the Secretary determines to

8 be appropriate) an energy preparedness and en9 ergy emergency response plan for the Federal

10 agency that is in conformance with the guide11 lines issued under paragraph (2)(G)(i).

12 ‘‘(B) REVIEW BY ASSISTANT SEC13 RETARY.—The Assistant Secretary shall review

14 each plan submitted under subparagraph (A)

15 for effectiveness and feasibility.

16 ‘‘(C) REPORT TO CONGRESS.—The Assist17 ant Secretary shall submit to the President and

18 Congress an annual report on the ability of

19 each Federal agency—

20 ‘‘(i) to reduce energy use on an emer21 gency basis; and

22 ‘‘(ii) to perform the mission of the

23 Federal agency during such a period of

24 emergency reduced energy use.

25 ‘‘(c) LIAISON TO DEPARTMENT OF DEFENSE.—
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1 ‘‘(1) IN GENERAL.—Not later than 180 days

2 after the date of enactment of this paragraph, the

3 Assistant Secretary shall appoint an individual em4 ployed by the Office to serve as a liaison to the De5 partment of Defense.

6 ‘‘(2) DUTIES.—The individual appointed under

7 paragraph (1) shall coordinate energy efficiency

8 measures, and energy efficiency reporting to the

9 President and Congress, into the operation of the

10 Department of Defense without compromising na11 tional security or the defense mission of the Depart12 ment of Defense.

13 ‘‘(3) SECURITY CLEARANCE.—The individual

14 appointed under paragraph (1) shall have appro15 priate security clearance.

16 ‘‘(d) REPORT TO CONGRESS.—The Secretary, acting

17 through the Office, shall submit to Congress an annual

18 report that—

19 ‘‘(1) describes the energy expenditures, invest20 ments, and savings of each Federal agency;

21 ‘‘(2) describes the obstacles to meeting the en22 ergy efficiency requirements under Federal law (in23 cluding Executive orders) that are faced by each

24 Federal agency; and
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1 ‘‘(3) includes an accounting of energy-con2 suming products procured by each Federal agency

3 that indicates—

4 ‘‘(A) which energy-consuming products

5 procured by the Federal agency during the pre6 ceding year were Energy Star products or

7 FEMP designated products (as those terms are

8 defined in section 551(a) of the National En9 ergy Conservation Policy Act); and

10 ‘‘(B) which energy-consuming products

11 procured by the Federal agency during the pre12 ceding year were neither Energy Star products

13 nor FEMP designated products.

14 ‘‘(e) AUDITS OF FEDERAL ENERGY MANAGEMENT

15 PROGRAMS.—

16 ‘‘(1) IN GENERAL.—The Assistant Secretary

17 may require the Inspector General of each Federal

18 agency to conduct audits of the energy management

19 programs of the Federal agency every 3 years.

20 ‘‘(2) GUIDELINES.—The Assistant Secretary

21 shall—

22 ‘‘(A) issue guidelines for the conduct of au23 dits described in paragraph (1); and

24 ‘‘(B) conduct training for Inspectors Gen25 eral on use of the guidelines.’’.
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1 (b) LIAISON FROM DEPARTMENT OF DEFENSE.—

2 The Secretary of Defense shall—

3 (1) establish as a senior level position within

4 the Department of Defense the position of energy

5 management liaison; and

6 (2) assign to the official appointed to that posi7 tion by the Secretary of Defense the duty to coordi8 nate with appropriate officials of the Department of

9 Defense and appropriate officials of the Department

10 of Energy concerning energy use and expenditure re11 quirements applicable to the Department of Defense

12 under Federal law (including Executive orders).

13 (c) TECHNICAL AND CONFORMING AMENDMENTS.—

14 The table of contents in the first section of the Depart15 ment of Energy Organization Act (42 U.S.C. 7101 note)

16 is amended —

17 (1) in the item relating to section 209, by strik18 ing ‘‘Section’’ and inserting ‘‘Sec.’’;

19 (2) by inserting after the item relating to sec20 tion 211 the following:

‘‘Sec. 212. Office of Federal Energy Productivity.’’;

21 and

22 (3) in the items relating to each of sections 213

23 through 216, by inserting ‘‘Sec.’’ before the section

24 designation.
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1 SEC. 5. ENERGY REDUCTION GOALS.

2 (a) IN GENERAL.—Section 543 of the National En3 ergy Conservation Policy Act (42 U.S.C. 8253) is

4 amended—

5 (1) in subsection (a)—

6 (A) by striking paragraph (1) and insert7 ing the following:

8 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

9 each agency shall apply energy conservation meas10 ures to, and shall improve the design for the con11 struction of, the Federal buildings of the agency (in12 cluding each industrial or laboratory facility) so that

13 the energy consumption per gross square foot of the

14 Federal buildings of the agency in calendar years

15 2002 through 2011 is reduced, as compared with the

16 energy consumption per gross square foot of the

17 Federal buildings of the agency in calendar year

18 2000, by the percentage specified in the following

19 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.’’;
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1 (B) by striking ‘‘(2) An’’ and inserting the

2 following:

3 ‘‘(2) EXCLUSION OF CERTAIN FEDERAL BUILD4 INGS.—An’’; and

5 (C) by adding at the end the following:

6 ‘‘(3) REVIEW AND REVISION OF ENERGY PER7 FORMANCE REQUIREMENT.—Not later than Decem8 ber 31, 2010, the Secretary shall—

9 ‘‘(A) review the results of the implementa10 tion of the energy performance requirement es11 tablished under paragraph (1); and

12 ‘‘(B) submit to Congress recommendations

13 concerning energy performance requirements

14 for calendar years 2012 through 2021.’’; and

15 (2) in subsection (c)—

16 (A) by striking paragraph (1) and insert17 ing the following:

18 ‘‘(1) IN GENERAL.—

19 ‘‘(A) EXCLUSIONS.—An agency may ex20 clude, from the energy performance require21 ment for a calendar year established under sub22 section (a) and the energy management require23 ment established under subsection (b), any Fed24 eral building or collection of Federal buildings,
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1 and the associated energy consumption and

2 gross square footage, if—

3 ‘‘(i) the head of the agency finds that

4 compliance with those requirements would

5 be impracticable; and

6 ‘‘(ii) the agency has—

7 ‘‘(I) completed and submitted all

8 federally required energy management

9 reports;

10 ‘‘(II) achieved compliance with

11 the energy efficiency requirements

12 of—

13 ‘‘(aa) this Act;

14 ‘‘(bb) subtitle F of title I of

15 the Energy Policy Act of 1992

16 (42 U.S.C. 8262 et seq.);

17 ‘‘(cc) Executive orders; and

18 ‘‘(dd) other Federal law; and

19 ‘‘(III) implemented all prac20 ticable, cost-effective, life-cycle

21 projects with respect to the Federal

22 building or collection of Federal build23 ings to be excluded.
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1 ‘‘(B) FINDING OF IMPRACTICABILITY.—A

2 finding of impracticability under subparagraph

3 (A)(i) shall be based on—

4 ‘‘(i) the energy intensiveness of activi5 ties carried out in the Federal building or

6 collection of Federal buildings; or

7 ‘‘(ii) the fact that the Federal build8 ing or collection of Federal buildings is

9 used in the performance of a national secu10 rity function.’’;

11 (B) in paragraph (2)—

12 (i) by striking ‘‘(2) Each agency’’ and

13 inserting the following:

14 ‘‘(2) REVIEW BY SECRETARY.—Each agency’’;

15 and

16 (ii) in the second sentence—

17 (I) by striking ‘‘impracticability

18 standards’’ and inserting ‘‘standards

19 for exclusion’’; and

20 (II) by striking ‘‘a finding of im21 practicability’’ and inserting ‘‘the ex22 clusion’’; and

23 (C) by adding at the end the following:

24 ‘‘(3) CRITERIA.—Not later than 180 days after

25 the date of enactment of this paragraph, the Sec-
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1 retary shall issue guidelines that establish criteria

2 for exclusions under paragraph (1).’’.

3 (b) REPORTS.—Section 548(b) of the National En4 ergy Conservation Policy Act (42 U.S.C. 8258(b)) is

5 amended—

6 (1) in the subsection heading, by inserting

7 ‘‘THE PRESIDENT AND’’ before ‘‘CONGRESS’’; and

8 (2) by inserting ‘‘President and’’ before ‘‘Con9 gress’’.

10 (c) CONFORMING AMENDMENT.—Section 550(d) of

11 the National Energy Conservation Policy Act (42 U.S.C.

12 8258b(d)) is amended in the second sentence by striking

13 ‘‘the 20 percent reduction goal established under section

14 543(a) of the National Energy Conservation Policy Act

15 (42 U.S.C. 8253(a)).’’ and inserting ‘‘each of the energy

16 reduction goals established under section 543(a).’’.

17 SEC. 6. ENERGY USE MEASUREMENT AND ACCOUNT18 ABILITY.

19 (a) IN GENERAL.—Section 543 of the National En20 ergy Conservation Policy Act (42 U.S.C. 8253) is amend21 ed by adding at the end the following:

22 ‘‘(e) METERING OF ENERGY USE.—

23 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

24 each agency shall meter or submeter the energy use
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1 in each Federal building, industrial process, and en2 ergy-using structure of the agency.

3 ‘‘(2) GUIDELINES.—

4 ‘‘(A) IN GENERAL.—Not later than 180

5 days after the date of enactment of this sub6 section, the Secretary shall issue guidelines con7 cerning the extent of the metering and sub8 metering required under paragraph (1).

9 ‘‘(B) REQUIREMENTS FOR GUIDELINES.—

10 The guidelines shall—

11 ‘‘(i) take into consideration—

12 ‘‘(I) the cost of metering and

13 submetering and the reduced cost of

14 operation and maintenance expected

15 to result from metering and sub16 metering;

17 ‘‘(II) the extent to which meter18 ing and submetering are expected to

19 result in—

20 ‘‘(aa) increased potential for

21 energy management;

22 ‘‘(bb) increased potential for

23 energy savings and energy effi24 ciency improvement; and
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1 ‘‘(cc) cost and energy sav2 ings due to utility contract aggre3 gation; and

4 ‘‘(III) the measurement and

5 verification protocols of the Depart6 ment of Energy;

7 ‘‘(ii) include recommendations con8 cerning the amount of funds and the num9 ber of trained personnel necessary to gath10 er and use the metering information to

11 track and reduce energy use;

12 ‘‘(iii) establish 1 or more dates, not

13 later than 1 year after the date of issuance

14 of the guidelines, on which the requirement

15 specified in paragraph (1) shall take effect;

16 and

17 ‘‘(iv) establish exclusions from the re18 quirement specified in paragraph (1) based

19 on the de minimus quantity of energy use

20 of a Federal building, industrial process, or

21 structure.

22 ‘‘(f) USE OF INTERVAL DATA IN FEDERAL BUILD23 INGS.—

24 ‘‘(1) IN GENERAL.—Beginning not later than

25 January 1, 2003, each agency shall use, to the max-
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1 imum extent practicable, for the purposes of efficient

2 use of energy and reduction in the cost of electricity

3 used in the Federal buildings of the agency, interval

4 consumption data that measure on a real-time or

5 daily basis consumption of electricity in the Federal

6 buildings of the agency.

7 ‘‘(2) PLAN.—As soon as practicable after the

8 date of enactment of this subsection, in a report

9 submitted by the agency under section 548(a), each

10 agency shall submit to the Secretary a plan describ11 ing how the agency will implement the requirement

12 of paragraph (1), including how the agency will des13 ignate personnel primarily responsible for achieving

14 the requirement.’’.

15 (b) BUDGET SUBMISSIONS TO THE PRESIDENT.—

16 Section 545 of the National Energy Conservation Policy

17 Act (42 U.S.C. 8255) is amended—

18 (1) by inserting ‘‘(a) BUDGET SUBMISSION TO

19 CONGRESS.—’’ before ‘‘The President’’; and

20 (2) by adding at the end the following:

21 ‘‘(b) BUDGET SUBMISSIONS TO THE PRESIDENT.—

22 The head of each agency shall submit to the President,

23 as part of the budget request of the agency for each fiscal

24 year, a statement of the amount of appropriations re-
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1 quested in the budget for the electric and other energy

2 costs and compliance costs described in subsection (a).’’.

3 (c) ENERGY AND WATER CONSERVATION INCENTIVE

4 PROGRAM.—Section 546 of the National Energy Con5 servation Policy Act (42 U.S.C. 8256) is amended by add6 ing at the end the following:

7 ‘‘(e) ENERGY AND WATER CONSERVATION INCEN8 TIVE PROGRAM.—

9 ‘‘(1) IN GENERAL.—In addition to the other in10 centive programs established under this section, the

11 Secretary shall establish an incentive program under

12 which, for any fiscal year, of the amounts made

13 available to each agency to pay the costs of pro14 viding energy and water for Federal buildings under

15 the jurisdiction of the agency, the agency may re16 tain, without fiscal year limitation, such amounts as

17 are determined under paragraph (2) to have been

18 saved because of energy and water management and

19 conservation projects carried out by the agency.

20 ‘‘(2) DETERMINATION OF RETAINED

21 AMOUNTS.—In cooperation with the Secretary of De22 fense and the Director of the Office of Management

23 and Budget, the Secretary shall issue guidelines and

24 establish methodologies for—
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1 ‘‘(A) retention of amounts saved as de2 scribed in paragraph (1) for a period ending

3 not more than 3 years after the date of comple4 tion of the project that resulted in the savings;

5 ‘‘(B) establishment of a baseline amount of

6 energy and water expenditures, consisting of

7 the amounts that would be expended on energy

8 or water but for implementation of the project;

9 and

10 ‘‘(C) use by agencies of the baseline

11 amounts established under subparagraph (B) in

12 submitting to the President budget requests for

13 appropriated amounts equal to the amounts of

14 savings that an agency is expected to be enti15 tled to retain under paragraph (1).

16 ‘‘(3) USE OF RETAINED AMOUNTS.—Amounts

17 retained under paragraph (1) may be used to carry

18 out energy or water management and conservation

19 projects, invest in renewable energy systems, and

20 purchase electricity from renewable energy sources

21 for use, at the Federal building at which the project

22 that resulted in the savings was carried out.

23 ‘‘(4) ANNUAL REPORT ON USE OF AMOUNTS.—

24 Each report submitted by an agency under section

25 548(a) shall describe—
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1 ‘‘(A)(i) the amounts retained under para2 graph (1) during the period covered by the re3 port; and

4 ‘‘(ii) the use of the amounts retained; and

5 ‘‘(B) if no amounts were retained under

6 paragraph (1), why no amounts were retained

7 and the plans of the agency for retaining such

8 amounts in the future.’’.

9 (d) REPORTS.—Section 548 of the National Energy

10 Conservation Policy Act (42 U.S.C. 8258) is amended—

11 (1) in subsection (a)—

12 (A) in paragraph (1), by striking ‘‘and’’ at

13 the end;

14 (B) in paragraph (2), by striking the pe15 riod at the end and inserting ‘‘; and’’; and

16 (C) by adding at the end the following:

17 ‘‘(3) the quantity of greenhouse gases emitted

18 by the Federal buildings of the agency during each

19 fiscal year, as measured by the agency in consulta20 tion with the Assistant Secretary for Federal Energy

21 Productivity of the Department of Energy.’’;

22 (2) in subsection (b)(1)—

23 (A) in subparagraph (B), by striking

24 ‘‘and’’ at the end;
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1 (B) in subparagraph (C), by striking the

2 semicolon at the end and inserting ‘‘; and’’; and

3 (C) by adding at the end the following:

4 ‘‘(D) the quantity of greenhouse gases

5 emitted by the Federal buildings of each agency

6 during each fiscal year;’’; and

7 (3) by adding at the end the following:

8 ‘‘(d) RECOMMENDATIONS ON MEANS OF ACCOUNT9 ING FOR ENERGY USE.—

10 ‘‘(1) IN GENERAL.—The Secretary, in coopera11 tion with the Administrator of the Energy Informa12 tion Agency, the Administrator of General Services,

13 and the Secretary of Defense, shall conduct a study

14 to develop recommendations on the most accurate

15 means of accounting for energy use in Federal facili16 ties.

17 ‘‘(2) REQUIRED RECOMMENDATIONS.—Rec18 ommendations shall include a recommendation con19 cerning whether a uniform performance measure

20 based on British thermal units per gross square foot

21 is preferable to an agency-specific performance

22 measure or any other performance-based metric.

23 ‘‘(3) REPORT TO CONGRESS.—Not later than 1

24 year after the date of enactment of this subsection,
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1 the Secretary shall submit to Congress a report on

2 the results of the study.’’.

3 SEC. 7. FEDERAL GOVERNMENT PROCUREMENT OF EN4 ERGY EFFICIENT PRODUCTS.

5 (a) PROCUREMENT OF ENERGY EFFICIENT PROD6 UCTS.—

7 (1) REQUIREMENTS.—

8 (A) IN GENERAL.—Part 3 of title V of the

9 National Energy Conservation Policy Act is

10 amended—

11 (i) by redesignating section 551 (42

12 U.S.C. 8259) as section 554; and

13 (ii) by inserting after section 550 (42

14 U.S.C. 8258b) the following:

15 ‘‘SEC. 551. FEDERAL GOVERNMENT PROCUREMENT OF EN16 ERGY EFFICIENT PRODUCTS.

17 ‘‘(a) DEFINITIONS.—In this section:

18 ‘‘(1) ENERGY STAR PRODUCT.—The term ‘En19 ergy Star product’ means a product that is rated for

20 energy efficiency under an Energy Star program.

21 ‘‘(2) ENERGY STAR PROGRAM.—The term ‘En22 ergy Star program’ means a program administered

23 by the Administrator of the Environmental Protec24 tion Agency that involves voluntary cooperation be25 tween that agency and an industry to enhance the
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1 energy efficiency of the energy consuming products

2 of the industry so as to reduce—

3 ‘‘(A) burdens on air conditioning and elec4 trical systems of buildings that result from the

5 use of the products in the buildings; and

6 ‘‘(B) air pollution caused by utility power

7 generation.

8 ‘‘(3) EXECUTIVE AGENCY.—The term ‘executive

9 agency’ has the meaning given the term in section

10 4 of the Office of Federal Procurement Policy Act

11 (41 U.S.C. 403).

12 ‘‘(4) FEMP DESIGNATED PRODUCT.—The term

13 ‘FEMP designated product’ means a product that is

14 designated under the Federal Energy Management

15 Program of the Department of Energy as being

16 among the highest 25 percent of equivalent products

17 for energy efficiency.

18 ‘‘(b) PROCUREMENT OF ENERGY EFFICIENT PROD19 UCTS.—

20 ‘‘(1) REQUIREMENT.—To meet the require21 ments of an executive agency for an energy con22 suming product, the head of the executive agency

23 shall, except as provided in paragraph (2), procure—

24 ‘‘(A) an Energy Star product; or
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1 ‘‘(B) if there is no Energy Star product

2 that meets the requirements of the executive

3 agency and that is reasonably available, a

4 FEMP designated product.

5 ‘‘(2) EXCEPTIONS.—The head of an executive

6 agency is not required to procure an Energy Star

7 product or FEMP designated product under para8 graph (1) if—

9 ‘‘(A) an Energy Star product or FEMP

10 designated product is not cost effective over the

11 life cycle of the product; or

12 ‘‘(B) no Energy Star product or FEMP

13 designated product is reasonably available that

14 meets the requirements of the executive agency.

15 ‘‘(3) PROCUREMENT PLANNING.—

16 ‘‘(A) REQUIREMENT.—The head of an ex17 ecutive agency shall incorporate into the speci18 fications for a procurement involving energy

19 consuming products and systems, and into the

20 factors for the evaluation of offers received for

21 the procurement, criteria for energy efficiency

22 that are consistent with—

23 ‘‘(i) the criteria for energy efficiency

24 used for rating products under the applica25 ble Energy Star program; and
28

•S 1358 IS

1 ‘‘(ii) the criteria used for designating

2 products under the Federal Energy Man3 agement Program of the Department of

4 Energy.

5 ‘‘(B) APPLICABILITY.—The requirement of

6 subparagraph (A) shall apply to—

7 ‘‘(i) a contract for new construction or

8 renovation of a building;

9 ‘‘(ii) a basic ordering agreement;

10 ‘‘(iii) a blanket purchasing agreement;

11 ‘‘(iv) a Government-wide procurement

12 contract; and

13 ‘‘(v) any other contract for a procure14 ment described in that subparagraph.

15 ‘‘(c) LISTING OF ENERGY EFFICIENT PRODUCTS IN

16 FEDERAL CATALOGS.—

17 ‘‘(1) DEVELOPMENT.—The Administrator of

18 General Services and the Director of the Defense

19 Logistics Agency of the Department of Defense

20 shall—

21 ‘‘(A) develop, and revise if appropriate,

22 catalog listings of Energy Star products and

23 FEMP designated products; and
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•S 1358 IS

1 ‘‘(B) clearly identify in the listings the

2 products that are Energy Star products and the

3 products that are FEMP designated products.

4 ‘‘(2) AVAILABILITY OF LISTINGS.—The Admin5 istrator and the Director shall make the listings

6 available in printed and electronic formats.

7 ‘‘(d) GSA AND DLA INVENTORIES AND LISTINGS.—

8 No energy consuming product may be made available to

9 any executive agency from an inventory or listing of prod10 ucts by the General Services Administration or the De11 fense Logistics Agency unless—

12 ‘‘(1) the product is an Energy Star product;

13 ‘‘(2) the product is a FEMP designated product

14 and no equivalent Energy Star product is reasonably

15 available; or

16 ‘‘(3) no equivalent Energy Star product or

17 FEMP designated product is reasonably available.

18 ‘‘(e) REGULATIONS.—The Secretary of Energy shall

19 promulgate regulations to carry out this section, including

20 policies and conditions for exercising authority under this

21 section to procure energy consuming products other than

22 Energy Star products and FEMP designated products.’’.

23 (B) CONFORMING AMENDMENTS.—

24 (i) The table of contents in section

25 1(b) of the National Energy Conservation
30

•S 1358 IS

1 Policy Act (42 U.S.C. 8201 note) is

2 amended by striking the item relating to

3 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.’’.

4 (ii) Section 151(5) of the Energy Pol5 icy Act of 1992 (42 U.S.C. 8262(5)) is

6 amended by striking ‘‘section 551(4)’’ and

7 inserting ‘‘section 554(4)’’.

8 (iii) Section 164(a) of the Energy Pol9 icy Act of 1992 (42 U.S.C. 8262h note;

10 Public Law 102–486) is amended by strik11 ing ‘‘section 551(5)’’ and inserting ‘‘sec12 tion 554(5)’’.

13 (2) IMPLEMENTATION.—

14 (A) REGULATIONS.—Not later than 180

15 days after the effective date specified in sub16 section (d), the Secretary of Energy shall pro17 mulgate regulations to carry out section 551 of

18 the National Energy Conservation Policy Act

19 (as added by paragraph (1)(A)(ii)).

20 (B) DISPOSAL OF EXISTING INVEN21 TORIES.—An energy consuming product that,

22 on the effective date specified in subsection (d),

23 is in an inventory of products offered by the
31

•S 1358 IS

1 General Services Administration or the Defense

2 Logistics Agency may be made available to an

3 executive agency out of that inventory without

4 regard to section 551(d) of the National Energy

5 Conservation Policy Act.

6 (C) PROCUREMENT OF REPLACEMENT IN7 VENTORY.—On and after the effective date

8 specified in subsection (d), the Administrator of

9 General Services and the Director of the De10 fense Logistics Agency of the Department of

11 Defense may not list or procure for an inven12 tory of products offered by the General Services

13 Administration or the Defense Logistics Agency

14 an energy consuming product that, under sec15 tion 551(d) of the National Energy Conserva16 tion Policy Act, may not be made available to

17 executive agencies out of that inventory.

18 (b) PROCUREMENT GUIDELINES.—The Secretary of

19 Energy, in cooperation with the Secretary of Defense,

20 shall issue guidelines that the Secretary of Defense may

21 apply to the procurement of energy consuming products

22 by the Department of Defense to ensure that, to the max23 imum extent feasible consistent with the performance of

24 the national security missions of the Department of De-
32

•S 1358 IS

1 fense, the products selected for procurement are energy

2 efficient products.

3 (c) DESIGNATION OF ENERGY STAR PRODUCTS.—

4 The Administrator of the Environmental Protection Agen5 cy and the Secretary of Energy shall—

6 (1) expedite the process of designating products

7 as Energy Star products (as defined in section

8 551(a) of the National Energy Conservation Policy

9 Act (as added by subsection (a)(1)(A)(ii))); and

10 (2) merge the efficiency rating procedures used

11 by the Environmental Protection Agency and the

12 Department of Energy under the Energy Star pro13 grams (as defined in section 551(a) of that Act).

14 (d) EFFECTIVE DATE.—Subsection (a) and the

15 amendment made by that subsection take effect on the

16 date that is 180 days after the date of enactment of this

17 Act.

18 SEC. 8. FEDERAL ENERGY BANK.

19 Part 3 of title V of the National Energy Conservation

20 Policy Act is amended by inserting after section 551 (as

21 added by section 7(a)(1)(A)(ii)) the following:

22 ‘‘SEC. 552. FEDERAL ENERGY BANK.

23 ‘‘(a) DEFINITIONS.—In this section:

24 ‘‘(1) BANK.—The term ‘Bank’ means the Fed25 eral Energy Bank established by subsection (b).
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•S 1358 IS

1 ‘‘(2) ENERGY OR WATER EFFICIENCY

2 PROJECT.—The term ‘energy or water efficiency

3 project’ means a project that assists a Federal agen4 cy in meeting or exceeding the energy or water effi5 ciency requirements of—

6 ‘‘(A) this part;

7 ‘‘(B) title VIII;

8 ‘‘(C) subtitle F of title I of the Energy

9 Policy Act of 1992 (42 U.S.C. 8262 et seq.); or

10 ‘‘(D) any applicable Executive order, in11 cluding Executive Order No. 13123 (42 U.S.C.

12 8251 note (June 3, 1999)).

13 ‘‘(3) FEDERAL AGENCY.—The term ‘Federal

14 agency’ means—

15 ‘‘(A) an Executive agency (as defined in

16 section 105 of title 5, United States Code);

17 ‘‘(B) the United States Postal Service;

18 ‘‘(C) the United States Patent and Trade19 mark Office;

20 ‘‘(D) Congress and any other entity in the

21 legislative branch; and

22 ‘‘(E) a Federal court and any other entity

23 in the judicial branch.

24 ‘‘(4) UTILITY PAYMENT.—The term ‘utility

25 payment’ means a payment made to supply elec-
34

•S 1358 IS

1 tricity, natural gas, or any other form of energy to

2 provide the heating, ventilation, air conditioning,

3 lighting, or other energy needs of a facility of a Fed4 eral agency.

5 ‘‘(b) ESTABLISHMENT OF BANK.—

6 ‘‘(1) IN GENERAL.—There is established in the

7 Treasury of the United States a fund to be known

8 as the ‘Federal Energy Bank’, consisting of—

9 ‘‘(A) such amounts as are deposited in the

10 Bank under paragraph (2);

11 ‘‘(B) such amounts as are repaid to the

12 Bank under subsection (c)(2)(D); and

13 ‘‘(C) any interest earned on investment of

14 amounts in the Bank under paragraph (3).

15 ‘‘(2) DEPOSITS IN BANK.—

16 ‘‘(A) IN GENERAL.—Subject to the avail17 ability of appropriations and to subparagraph

18 (B), the Secretary of the Treasury shall deposit

19 in the Bank an amount equal to 2.5 percent for

20 fiscal year 2003 and 5 percent for each fiscal

21 year thereafter of the total amount of utility

22 payments made by all Federal agencies for the

23 preceding fiscal year.

24 ‘‘(B) MAXIMUM AMOUNT IN BANK.—De25 posits under subparagraph (A) shall cease be-
35

•S 1358 IS

1 ginning with the fiscal year following the fiscal

2 year in which the amounts in the Bank (includ3 ing amounts on loan from the Bank) become

4 equal to or exceed $1,000,000,000.

5 ‘‘(C) LIMITATION.—No funds made avail6 able to any Federal agency (other than to the

7 Department of the Treasury under subsection

8 (f)) shall be deposited in the Bank.

9 ‘‘(3) INVESTMENT OF AMOUNTS.—The Sec10 retary of the Treasury shall invest such portion of

11 the Bank as is not, in the judgment of the Sec12 retary, required to meet current withdrawals. Invest13 ments may be made only in interest-bearing obliga14 tions of the United States.

15 ‘‘(c) LOANS FROM THE BANK.—

16 ‘‘(1) IN GENERAL.—The Secretary of the

17 Treasury shall transfer from the Bank to the Sec18 retary such amounts as are appropriated to carry

19 out the loan program under paragraph (2).

20 ‘‘(2) LOAN PROGRAM.—

21 ‘‘(A) ESTABLISHMENT.—

22 ‘‘(i) IN GENERAL.—In accordance

23 with subsection (d), the Secretary, in con24 sultation with the Secretary of Defense,

25 the Administrator of General Services, and
36

•S 1358 IS

1 the Director of the Office of Management

2 and Budget, shall establish a program to

3 make loans of amounts in the Bank to any

4 Federal agency that submits an application

5 satisfactory to the Secretary in order to

6 pay the costs of a project described in sub7 paragraph (C).

8 ‘‘(ii) COMMENCEMENT OF OPER9 ATIONS.—The Secretary may begin—

10 ‘‘(I) accepting applications for

11 loans from the Bank in fiscal year

12 2002; and

13 ‘‘(II) making loans from the

14 Bank in fiscal year 2003.

15 ‘‘(B) ENERGY SAVINGS PERFORMANCE

16 CONTRACTING FUNDING.—The Secretary shall

17 not make a loan from the Bank to a Federal

18 agency for a project for which funding is avail19 able and is acceptable to the Federal agency

20 under title VIII.

21 ‘‘(C) PURPOSES OF LOAN.—

22 ‘‘(i) IN GENERAL.—A loan from the

23 Bank may be used to pay—

24 ‘‘(I) the costs of an energy or

25 water efficiency project, or a renew-
37

•S 1358 IS

1 able or alternative energy project, for

2 a new or existing Federal building (in3 cluding selection and design of the

4 project);

5 ‘‘(II) the costs of an energy me6 tering plan developed in accordance

7 with the measurement and verification

8 protocols of the Department of En9 ergy, or energy metering equipment,

10 for the purpose of—

11 ‘‘(aa) a new or existing

12 building energy system; or

13 ‘‘(bb) verification of the en14 ergy savings under an energy

15 savings performance contract

16 under title VIII; or

17 ‘‘(III) at the time of contracting,

18 the costs of development or cofunding

19 of an energy savings performance con20 tract (including a utility energy serv21 ice agreement) in order to shorten the

22 payback period of the project that is

23 the subject of the energy savings per24 formance contract.
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•S 1358 IS

1 ‘‘(ii) LIMITATION.—A Federal agency

2 may use not more than 10 percent of the

3 amount of a loan under subclause (I) or

4 (II) of clause (i) to pay the costs of admin5 istration and proposal development (includ6 ing data collection and energy surveys).

7 ‘‘(iii) RENEWABLE AND ALTERNATIVE

8 ENERGY PROJECTS.—Not more than 25

9 percent of the amount on loan from the

10 Bank at any time may be loaned for re11 newable energy and alternative energy

12 projects (as defined by the Secretary in ac13 cordance with applicable law (including

14 Executive orders)).

15 ‘‘(D) REPAYMENTS.—

16 ‘‘(i) IN GENERAL.—Subject to clauses

17 (ii) through (iv), a Federal agency shall

18 repay to the Bank the principal amount of

19 a loan plus interest at a rate determined

20 by the President, in consultation with the

21 Secretary and the Secretary of the Treas22 ury.

23 ‘‘(ii) WAIVER OR REDUCTION OF IN24 TEREST.—The Secretary may waive or re25 duce the rate of interest required to be
39

•S 1358 IS

1 paid under clause (i) if the Secretary de2 termines that payment of interest by a

3 Federal agency at the rate determined

4 under that clause is not required to fund

5 the operations of the Bank.

6 ‘‘(iii) DETERMINATION OF INTEREST

7 RATE.—The interest rate determined

8 under clause (i) shall be at a rate that is

9 sufficient to ensure that, beginning not

10 later than October 1, 2007, interest pay11 ments will be sufficient to fully fund the

12 operations of the Bank.

13 ‘‘(iv) INSUFFICIENCY OF APPROPRIA14 TIONS.—

15 ‘‘(I) REQUEST FOR APPROPRIA16 TIONS.—As part of the budget request

17 of the Federal agency for each fiscal

18 year, the head of each Federal agency

19 shall submit to the President a re20 quest for such amounts as are nec21 essary to make such repayments as

22 are expected to become due in the fis23 cal year under this subparagraph.

24 ‘‘(II) SUSPENSION OF REPAY25 MENT REQUIREMENT.—If, for any fis-
40

•S 1358 IS

1 cal year, sufficient appropriations are

2 not made available to a Federal agen3 cy to make repayments under this

4 subparagraph, the Bank shall suspend

5 the requirement of repayment under

6 this subparagraph until such appro7 priations are made available.

8 ‘‘(E) FEDERAL AGENCY ENERGY BUDG9 ETS.—Until a loan is repaid, a Federal agency

10 budget submitted by the President to Congress

11 for a fiscal year shall not be reduced by the

12 value of energy savings accrued as a result of

13 any energy conservation measure implemented

14 using amounts from the Bank.

15 ‘‘(F) NO RESCISSION OR REPROGRAM16 MING.—A Federal agency shall not rescind or

17 reprogram loan amounts made available from

18 the Bank except as permitted under guidelines

19 issued under subparagraph (G).

20 ‘‘(G) GUIDELINES.—The Secretary shall

21 issue guidelines for implementation of the loan

22 program under this paragraph, including selec23 tion criteria, maximum loan amounts, and loan

24 repayment terms.

25 ‘‘(d) SELECTION CRITERIA.—
41

•S 1358 IS

1 ‘‘(1) IN GENERAL.—The Secretary shall estab2 lish criteria for the selection of projects to be award3 ed loans in accordance with paragraph (2).

4 ‘‘(2) SELECTION CRITERIA.—

5 ‘‘(A) IN GENERAL.—The Secretary may

6 make loans from the Bank only for a project

7 that—

8 ‘‘(i) is technically feasible;

9 ‘‘(ii) is determined to be cost-effective

10 using life cycle cost methods established by

11 the Secretary by regulation;

12 ‘‘(iii) includes a measurement and

13 management component, based on the

14 measurement and verification protocols of

15 the Department of Energy, to—

16 ‘‘(I) commission energy savings

17 for new and existing Federal facilities;

18 ‘‘(II) monitor and improve energy

19 efficiency management at existing

20 Federal facilities; and

21 ‘‘(III) verify the energy savings

22 under an energy savings performance

23 contract under title VIII; and

24 ‘‘(iv)(I) in the case of renewable en25 ergy or alternative energy project, has a
42

•S 1358 IS

1 simple payback period of not more than 15

2 years; and

3 ‘‘(II) in the case of any other project,

4 has a simple payback period of not more

5 than 10 years.

6 ‘‘(B) PRIORITY.—In selecting projects, the

7 Secretary shall give priority to projects that—

8 ‘‘(i) are a component of a comprehen9 sive energy management project for a Fed10 eral facility; and

11 ‘‘(ii) are designed to significantly re12 duce the energy use of the Federal facility.

13 ‘‘(e) REPORTS AND AUDITS.—

14 ‘‘(1) REPORTS TO THE SECRETARY.—Not later

15 than 1 year after the completion of installation of a

16 project that has a cost of more than $1,000,000,

17 and annually thereafter, a Federal agency shall sub18 mit to the Secretary a report that—

19 ‘‘(A) states whether the project meets or

20 fails to meet the energy savings projections for

21 the project; and

22 ‘‘(B) for each project that fails to meet the

23 energy savings projections, states the reasons

24 for the failure and describes proposed remedies.
43

•S 1358 IS

1 ‘‘(2) AUDITS.—The Secretary may audit, or re2 quire a Federal agency that receives a loan from the

3 Bank to audit, any project financed with amounts

4 from the Bank to assess the performance of the

5 project.

6 ‘‘(3) REPORTS TO CONGRESS.—At the end of

7 each fiscal year, the Secretary shall submit to the

8 Committee on Energy and Commerce of the House

9 of Representatives and the Committee on Energy

10 and Natural Resources of the Senate a report on the

11 operations of the Bank, including a statement of—

12 ‘‘(A) the total receipts by the Bank;

13 ‘‘(B) the total amount of loans from the

14 Bank to each Federal agency; and

15 ‘‘(C) the estimated cost and energy savings

16 resulting from projects funded with loans from

17 the Bank.

18 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There

19 are authorized to be appropriated to the Department of

20 the Treasury such sums as are necessary to fund—

21 ‘‘(1) deposits required under subsection (b)(2);

22 and

23 ‘‘(2) the costs to the Treasury associated with

24 the loan program established under subsection
44

•S 1358 IS

1 (c)(2), as determined in accordance with guidelines

2 issued by the Office of Management and Budget.’’.

3 SEC. 9. ENERGY AND WATER SAVING MEASURES IN CON4 GRESSIONAL BUILDINGS.

5 (a) IN GENERAL.—Part 3 of title V of the National

6 Energy Conservation Policy Act is amended by inserting

7 after section 552 (as added by section 8) the following:

8 ‘‘SEC. 553. ENERGY AND WATER SAVINGS MEASURES IN

9 CONGRESSIONAL BUILDINGS.

10 ‘‘(a) IN GENERAL.—The Architect of the Capitol—

11 ‘‘(1) shall develop and implement a cost-effec12 tive energy conservation strategy for all facilities ad13 ministered by Congress (referred to in this section

14 as ‘congressional buildings’) to meet the mandatory

15 standards for Federal buildings established under

16 title III of the Energy Conservation and Production

17 Act (42 U.S.C. 6831 et seq.);

18 ‘‘(2) shall submit to Congress, not later than

19 120 days after the date of enactment of this section,

20 a revised comprehensive energy conservation and

21 management plan that includes life cycle cost meth22 ods to determine the cost-effectiveness of proposed

23 energy efficiency projects;
45

•S 1358 IS

1 ‘‘(3) shall submit to Congress annually a report

2 on congressional energy management and conserva3 tion programs that describes in detail—

4 ‘‘(A) energy expenditures and cost esti5 mates for each facility;

6 ‘‘(B) energy management and conservation

7 projects; and

8 ‘‘(C) future priorities to ensure compliance

9 with this section;

10 ‘‘(4) shall perform energy surveys of all con11 gressional buildings and update the surveys as nec12 essary;

13 ‘‘(5) shall use the surveys to determine the cost

14 and payback period of energy and water conserva15 tion measures likely to achieve the energy consump16 tion levels specified in the strategy developed under

17 paragraph (1);

18 ‘‘(6) shall install energy and water conservation

19 measures that will achieve those levels through life

20 cycle cost methods and procedures included in the

21 plan submitted under paragraph (2);

22 ‘‘(7) may contract with nongovernmental enti23 ties and use private sector capital to finance energy

24 conservation projects and achieve energy consump25 tion targets;
46

•S 1358 IS

1 ‘‘(8) may develop innovative contracting meth2 ods that will attract private sector funding for the

3 installation of energy efficient and renewable energy

4 technology to meet the requirements of this section,

5 such as energy savings performance contracts de6 scribed in title VIII;

7 ‘‘(9) may participate in the Financing Renew8 able Energy and Efficiency (FREE) Savings con9 tracts program for Federal Government facilities es10 tablished by the Department of Energy;

11 ‘‘(10) not later than 100 days after the date of

12 enactment of this section, shall submit to Congress

13 the results of a study of the installation of sub14 metering in congressional buildings;

15 ‘‘(11) shall produce information packages and

16 ‘how-to’ guides for each Member and employing au17 thority of Congress that detail simple, cost-effective

18 methods to save energy and taxpayer dollars;

19 ‘‘(12) shall ensure that state-of-the-art energy

20 efficiency technologies are used in the construction

21 of the Visitor Center; and

22 ‘‘(13) shall include in the Visitor Center an ex23 hibit on the energy efficiency measures used in con24 gressional buildings.
47

•S 1358 IS

1 ‘‘(b) ENERGY AND WATER CONSERVATION INCEN2 TIVE.—

3 ‘‘(1) IN GENERAL.—For any fiscal year, of the

4 amounts made available to the Architect of the Cap5 itol to pay the costs of providing energy and water

6 for congressional buildings, the Architect may re7 tain, without fiscal year limitation, such amounts as

8 the Architect determines were not expended because

9 of energy and water management and conservation

10 projects.

11 ‘‘(2) USE OF RETAINED AMOUNTS.—Amounts

12 retained under paragraph (1) may be used to carry

13 out energy and water management and conservation

14 projects.

15 ‘‘(3) ANNUAL REPORT ON USE OF AMOUNTS.—

16 As part of each annual report under subsection

17 (a)(3), the Architect of the Capitol shall submit to

18 Congress a report on the amounts retained under

19 paragraph (1) and the use of the amounts.’’.

20 (b) REPEAL.—Section 310 of the Legislative Branch

21 Appropriations Act, 1999 (40 U.S.C. 166i), is repealed.

22 SEC. 10. ENERGY SAVINGS PERFORMANCE CONTRACTS.

23 (a) COST SAVINGS FROM REPLACEMENT FACILI24 TIES.—Section 801(a) of the National Energy Conserva-
48

•S 1358 IS

1 tion Policy Act (42 U.S.C. 8287(a)) is amended by adding

2 at the end the following:

3 ‘‘(3) COST SAVINGS FROM REPLACEMENT FA4 CILITIES.—

5 ‘‘(A) IN GENERAL.—In the case of an en6 ergy savings performance contract that provides

7 for energy savings through the construction and

8 operation of 1 or more buildings or other facili9 ties to replace 1 or more existing buildings or

10 other facilities, benefits ancillary to the purpose

11 of achieving energy savings under the contract

12 may include, for the purpose of paragraph (1),

13 savings resulting from reduced costs of oper14 ation and maintenance at the replacement

15 buildings or other facilities as compared with

16 the costs of operation and maintenance at the

17 buildings or other facilities being replaced.

18 ‘‘(B) DETERMINATION OF PAYMENTS.—

19 Notwithstanding paragraph (2)(B), the aggre20 gate annual payments by a Federal agency

21 under an energy savings performance contract

22 described in subparagraph (A) may take into

23 account (through the procedures developed

24 under this section) savings resulting from re-
49

•S 1358 IS

1 duced costs of operation and maintenance as

2 described in subparagraph (A).’’.

3 (b) REPEAL OF SUNSET.—Section 801 of the Na4 tional Energy Conservation Policy Act (42 U.S.C. 8287)

5 is amended by striking subsection (c).

6 (c) DEFINITIONS.—The National Energy Conserva7 tion Policy Act is amended by striking section 804 (42

8 U.S.C. 8287c) and inserting the following:

9 ‘‘SEC. 804. DEFINITIONS.

10 ‘‘In this title:

11 ‘‘(1) ENERGY CONSERVATION MEASURE.—The

12 term ‘energy conservation measure’ has the meaning

13 given the term in section 554.

14 ‘‘(2) ENERGY SAVING.—The term ‘energy sav15 ing’ means a reduction, from a baseline cost estab16 lished through a methodology set forth in an energy

17 savings performance contract, in the cost of energy

18 or water used in—

19 ‘‘(A) 1 or more existing federally owned

20 buildings or other federally owned facilities,

21 that results from—

22 ‘‘(i) the lease or purchase of operating

23 equipment, an improvement, altered oper24 ation or maintenance, or a technical serv25 ice;
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•S 1358 IS

1 ‘‘(ii) increased efficiency in the use of

2 existing energy sources by cogeneration or

3 heat recovery, excluding any cogeneration

4 process for a building that is not a feder5 ally owned building or a facility that is not

6 federally owned facility; or

7 ‘‘(iii) increased efficiency in the use of

8 existing water sources or treatment of

9 wastewater or stormwater; or

10 ‘‘(B) a replacement facility under section

11 801(a)(3).

12 ‘‘(3) ENERGY SAVINGS PERFORMANCE CON13 TRACT.—The term ‘energy savings performance con14 tract’ means a contract that provides for—

15 ‘‘(A) the performance of services for the

16 design, acquisition, installation, testing, oper17 ation, and, where appropriate, maintenance and

18 repair, of an energy conservation measure or

19 water conservation measure (or series of such

20 measures) at 1 or more locations; or

21 ‘‘(B) energy savings through the construc22 tion and operation of 1 or more buildings or

23 other facilities to replace 1 or more existing

24 buildings or other facilities.
51

•S 1358 IS

1 ‘‘(4) FEDERAL AGENCY.—The term ‘Federal

2 agency’ means each authority of the United States

3 Government, regardless of whether the authority is

4 within or subject to review by another agency.

5 ‘‘(5) WATER CONSERVATION MEASURE.—The

6 term ‘water conservation measure’ means a con7 servation measure that—

8 ‘‘(A) improves the efficiency of use of

9 water;

10 ‘‘(B) is cost-effective over the life cycle of

11 the water conservation measure; and

12 ‘‘(C) involves water conservation, water re13 cycling or reuse, more efficient treatment of

14 wastewater or stormwater, an improvement in

15 operation or maintenance efficiency, a retrofit

16 activity, or any other related activity, that is

17 carried out at a building or other facility that

18 is not a Federal hydroelectric facility.’’.

19 SEC. 11. FEDERAL FLEET FUEL ECONOMY AND USE OF AL20 TERNATIVE FUELS.

21 (a) IN GENERAL.—Section 303 of the Energy Policy

22 Act of 1992 (42 U.S.C. 13212) is amended—

23 (1) by redesignating subsection (f) as sub24 section (g); and
52

•S 1358 IS

1 (2) by inserting after subsection (e) the fol2 lowing:

3 ‘‘(f) FEDERAL FLEET FUEL ECONOMY AND USE OF

4 ALTERNATIVE FUELS.—

5 ‘‘(1) DEFINITIONS.—

6 ‘‘(A) AVERAGE FUEL ECONOMY.—The

7 term ‘average fuel economy’ has the meaning

8 given the term in section 32901 of title 49,

9 United States Code.

10 ‘‘(B) COVERED VEHICLE.—

11 ‘‘(i) IN GENERAL.—The term ‘covered

12 vehicle’ means a passenger automobile or

13 light duty motor vehicle.

14 ‘‘(ii) EXCLUSIONS.—The term ‘cov15 ered vehicle’ does not include—

16 ‘‘(I) a military tactical vehicle of

17 the Armed Forces; or

18 ‘‘(II) any law enforcement, emer19 gency, or other vehicle class or type

20 determined to be excluded under

21 guidelines issued by the Secretary of

22 Energy under paragraph (6).

23 ‘‘(C) FEDERAL AGENCY.—The term ‘Fed24 eral agency’ means an Executive agency (as de25 fined in section 105 of title 5, United States
53

•S 1358 IS

1 Code) (including each military department (as

2 specified in section 102 of that title)) that oper3 ates 20 or more motor vehicles in the United

4 States.

5 ‘‘(D) PASSENGER AUTOMOBILE.—The

6 term ‘passenger automobile’ has the meaning

7 given the term in section 32901 of title 49,

8 United States Code.

9 ‘‘(2) MINIMUM AVERAGE FUEL ECONOMY.—In

10 fiscal year 2005 and each fiscal year thereafter, the

11 average fuel economy of the covered vehicles ac12 quired by each Federal agency shall be not less than

13 3 miles per gallon greater than the average fuel

14 economy of the covered vehicles acquired by the Fed15 eral agency in fiscal year 2000.

16 ‘‘(3) USE OF ALTERNATIVE FUELS.—

17 ‘‘(A) IN GENERAL.—Subject to subpara18 graph (B), in fiscal year 2005 and each fiscal

19 year thereafter, each Federal agency shall use

20 alternative fuels for at least 50 percent of the

21 total annual volume of motor fuel used by the

22 Federal agency to operate covered vehicles.

23 ‘‘(B) INCLUSION OF MOTOR FUEL PUR24 CHASED BY STATE AND LOCAL GOVERN25 MENTS.—Not more than 25 percent of the
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•S 1358 IS

1 motor fuel purchased by State and local govern2 ments at federally-owned refueling facilities

3 may be included by a Federal agency in meet4 ing the requirement of subparagraph (A).

5 ‘‘(4) IMPLEMENTATION PLAN.—Not later than

6 1 year after the date of enactment of this para7 graph, each Federal agency shall develop and submit

8 to the President and Congress an implementation

9 plan for meeting the requirements of this subsection

10 that takes into account the fleet configuration and

11 fleet requirements of the Federal agency.

12 ‘‘(5) ANNUAL REPORT.—

13 ‘‘(A) IN GENERAL.—Each Federal agency

14 shall submit to the President and Congress an

15 annual report on the progress of the Federal

16 agency in meeting the requirements of this sub17 section.

18 ‘‘(B) GUIDELINES.—The Secretary of En19 ergy, acting through the Assistant Secretary for

20 Federal Energy Productivity and in consulta21 tion with the Administrator of the Energy In22 formation Administration, shall issue guidelines

23 for the preparation by Federal agencies of re24 ports under paragraph (1), including guidelines

25 concerning—
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1 ‘‘(i) methods for measurement of av2 erage fuel economy; and

3 ‘‘(ii) the collection and annual report4 ing of data to demonstrate compliance with

5 this subsection.

6 ‘‘(6) GUIDELINES CONCERNING EXCLUSION OF

7 CERTAIN VEHICLES.—Not later than 1 year after

8 the date of enactment of this paragraph, the Sec9 retary of Energy, in consultation with the Assistant

10 Secretary for Federal Energy Productivity, shall

11 issue guidelines for Federal agencies to use in the

12 determination of vehicles to be excluded under para13 graph (1)(B)(ii).’’.

14 (b) ALTERNATIVE FUEL USE BY LIGHT DUTY FED15 ERAL VEHICLES.—Section 400AA of the Energy Policy

16 and Conservation Act (42 U.S.C. 6374) is amended—

17 (1) in subsection (a)(3)(E)—

18 (A) by striking ‘‘(E) Dual’’ and inserting

19 the following:

20 ‘‘(E) OPERATION OF DUAL FUELED VEHI21 CLES.—

22 ‘‘(i) IN GENERAL.—Subject to clause

23 (ii), dual’’; and

24 (B) by adding at the end the following:
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1 ‘‘(ii) MINIMUM ALTERNATIVE FUEL

2 USE.—For fiscal year 2005 and each fiscal

3 year thereafter, not less than 50 percent of

4 the total annual volume of fuel used to op5 erate dual fueled vehicles acquired pursu6 ant to this section shall consist of alter7 native fuels.’’; and

8 (2) in subsection (g)(4)(B), by inserting before

9 the semicolon at the end the following: ‘‘, including

10 any 3-wheeled enclosed electric vehicle that has a ve11 hicle identification number’’.

Æ