49–010 

Calendar No. 210 

114TH CONGRESS REPORT " ! SENATE 1st Session 114–130 

ENERGY SAVINGS AND INDUSTRIAL COMPETITIVENESS 

ACT OF 2015 

SEPTEMBER 9, 2015.—Ordered to be printed 

Ms. MURKOWSKI, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany S. 720] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (S. 720) to promote energy savings in residential 

buildings and industry, and for other purposes, having considered 

the same, reports favorably thereon with amendments and recommends that the bill, as amended, do pass. 

CONTENTS 

Page 

Amendments ............................................................................................................ 1 

Purpose of the Measure ........................................................................................... 3 

Background and Need ............................................................................................. 4 

Legislative History .................................................................................................. 4 

Committee Recommendation and Tabulation of Votes ......................................... 5 

Committee Amendments ......................................................................................... 6 

Section-by-Section Analysis .................................................................................... 6 

Cost and Budgetary Considerations ....................................................................... 10 

Regulatory Impact Evaluation ................................................................................ 10 

Congressionally Directed Spending ........................................................................ 11 

Executive Communications ..................................................................................... 11 

Changes in Existing Law ........................................................................................ 23 

The amendments are as follows: 

1. Strike subtitles D and E of title I. 

2. Strike subtitle C of title IV. 

3. Strike section 441 and insert the following: 

SEC. 431. VOLUNTARY VERIFICATION PROGRAMS FOR AIR CONDITIONING, FURNACE, BOILER, 

HEAT PUMP, AND WATER HEATER PRODUCTS. 

Section 326(b) of the Energy Policy and Conservation Act (42 U.S.C. 6296(b)) is 

amended by adding at the end the following: 


SSpencer on DSK4SPTVN1PROD with REPORTS
2 

‘‘(6) VOLUNTARY VERIFICATION PROGRAMS FOR AIR CONDITIONING, FURNACE, BOILER, HEAT PUMP, AND WATER HEATER PRODUCTS.— ‘‘(A) RELIANCE ON VOLUNTARY PROGRAMS.—For the purpose of periodic 

testing to verify compliance with energy conservation standards and Energy 

Star specifications established under sections 324A, 325, and 342 for covered products described in paragraphs (3), (4), (5), (9), and (11) of section 

322(a) and covered equipment described in subparagraphs (B), (C), (D), (F), 

(I), (J), and (K) of section 340(1), the Secretary and the Administrator of 

the Environmental Protection Agency shall rely on testing conducted by voluntary verification programs that are recognized by the Secretary in accordance with subparagraph (B). 

‘‘(B) RECOGNITION OF VOLUNTARY VERIFICATION PROGRAMS.— ‘‘(i) IN GENERAL.—Not later than 180 days after the date of enactment of this paragraph, the Secretary shall initiate a negotiated rulemaking in accordance with subchapter III of chapter 5 of title 5, United 

States Code (commonly known as the ‘Negotiated Rulemaking Act of 

1990’) to develop criteria that have consensus support for achieving recognition by the Secretary as an approved voluntary verification program. 

‘‘(ii) MINIMUM REQUIREMENTS.—The criteria developed under clause 

(i) shall, at a minimum, ensure that the voluntary verification program— 

‘‘(I) is nationally recognized; 

‘‘(II) is operated by a third party and not directly operated by a 

program participant; 

‘‘(III) satisfies any applicable elements of— 

‘‘(aa) International Organization for Standardization standard numbered 17025; and 

‘‘(bb) any other relevant International Organization for 

Standardization standards identified and agreed to through 

the negotiated rulemaking under clause (i); 

‘‘(IV) at least annually tests independently obtained products following the test procedures established under this title to verify the 

certified rating of a representative sample of products and equipment within the scope of the program; 

‘‘(V) maintains a publicly available list of all ratings of products 

subject to verification; 

‘‘(VI) requires the changing of the performance rating or removal 

of the product or equipment from the program if testing determines 

that the performance rating does not meet the levels the manufacturer has certified to the Secretary; 

‘‘(VII) requires new program participants to substantiate ratings 

through test data generated in accordance with DOE regulations; 

‘‘(VIII) allows for challenge testing of products and equipment 

within the scope of the program; 

‘‘(IX) requires program participants to disclose the performance 

rating of all covered products and equipment within the scope of 

the program for the covered product or equipment; 

‘‘(X) provides to the Secretary— 

‘‘(aa) an annual report of all test results, the contents of 

which shall be determined through the negotiated rulemaking 

process under clause (i); and 

‘‘(bb) test reports, on the request of the Secretary or the Administrator of the Environmental Protection Agency, that note 

any instructions specified by the manufacturer or the representative of the manufacturer for the purpose of conducting 

the verification testing, to be exempted from disclosure to the 

extent provided under section 552(b)(4) of title 5, United States 

Code (commonly known as the ‘Freedom of Information Act’); 

and 

‘‘(XI) satisfies any additional requirements or standards that the 

Secretary and Administrator of the Environmental Protection 

Agency shall establish consistent with this subparagraph. 

‘‘(iii) FINDING REQUIRED FOR CESSATION OF RECOGNITION.—The Secretary may only cease recognition of a voluntary verification program 

as an approved program described in subparagraph (A) on a finding 

that the program is not meeting its obligations for compliance through 

program review criteria established under this subparagraph. 

‘‘(iv) REVISIONS.— 


SSpencer on DSK4SPTVN1PROD with REPORTS
3 

‘‘(I) IN GENERAL.—Major revisions to voluntary verification program criteria established under this subparagraph shall only be 

made pursuant to a subsequent negotiated rulemaking in accordance with subchapter III of chapter 5 of title 5, United States Code 

(commonly known as the ‘Negotiated Rulemaking Act of 1990’). 

‘‘(II) NONMAJOR REVISIONS.— 

‘‘(aa) IN GENERAL.—The Secretary may make all other 

nonmajor criteria revisions by initiating a direct final rule in 

accordance with section 553(b)(3)(B) of title 5, United States 

Code, on a determination published in the Federal Register 

that revisions to the criteria are necessary and that substantive opposition to the proposed revisions is not expected. 

‘‘(bb) CONDITIONS FOR EFFECTIVENESS.—If the Secretary does 

not receive adversarial comments with respect to the determination published under item (aa) during the 30-day-period 

following publication of that determination in the Federal Register, the direct final rule shall have the force and effect of law. 

‘‘(cc) WITHDRAWAL OF FINAL RULE.—Receipt of any adversarial comment with respect to the determination published 

under item (aa) shall require the Secretary to withdraw the direct final rule and publish— 

‘‘(AA) a notice of proposed rulemaking pursuant to section 553 of title 5, United States Code; or 

‘‘(BB) a notice of proposed rulemaking pursuant to section 553 of title 5, United States Code, that includes a determination that revisions to the criteria are necessary. 

‘‘(C) ADMINISTRATION.— 

‘‘(i) IN GENERAL.—The Secretary and the Administrator of the Environmental Protection Agency shall not require— 

‘‘(I) manufacturers to participate in a voluntary verification program described in subparagraph (A); or 

‘‘(II) participating manufacturers to provide information that has 

already been provided to the Secretary or the Administrator. 

‘‘(ii) LIST OF COVERED PRODUCTS.—The Secretary or the Administrator of the Environmental Protection Agency may maintain a publicly 

available list of covered products and equipment that distinguishes between products that are, and are not covered products and equipment 

verified through a voluntary verification program described in subparagraph (A); 

‘‘(iii) PERIODIC VERIFICATION TESTING.— 

‘‘(I) IN GENERAL.—The Secretary— 

‘‘(aa) shall not subject products or equipment that have been 

verification tested under a voluntary verification program described in subparagraph (A) to periodic verification testing that 

verifies the accuracy of the certified performance rating of the 

products or equipment; but 

‘‘(bb) may test products or equipment described in subclause 

(I) if the testing is necessary— 

‘‘(AA) to assess the overall performance of a voluntary 

verification program; 

‘‘(BB) to address specific performance issues; 

‘‘(CC) for use in updating test procedures and standards; 

or 

‘‘(DD) for other purposes consistent with this title. 

‘‘(II) ADDITIONAL TESTING.—The Secretary may subject products 

or equipment described in subclause (I) to periodic verification testing outside the restrictions of subclause (I)(bb), if agreed to during 

the rulemaking described in subparagraph (B). 

‘‘(D) EFFECT ON OTHER AUTHORITY.—Nothing in this paragraph limits the 

authority of the Secretary or the Administrator of the Environmental Protection Agency to enforce compliance with any law.’’ 

PURPOSE

To promote energy savings in residential buildings and industry. 


SSpencer on DSK4SPTVN1PROD with REPORTS
4 

BACKGROUND AND NEED

Since the 1973 oil embargo and every subsequent energy crisis, 

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

investing in energy efficiency measures. Today, efficient energy use 

and the deployment of more efficient technologies are critical to 

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

energy production. Nevertheless, many existing energy efficiency 

technologies and programs have yet to be installed or implemented. 

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

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

could more than offset the Energy Information Administration’s 

projected increase in U.S. energy consumption through 2030. 

The Energy Savings and Industrial Competitiveness Act (ESIC) 

of 2015 proposes a national strategy to increase energy efficiency 

in the residential, commercial, federal, and industrial sectors of our 

economy. The legislation would use a variety of low-cost tools to reduce barriers to private sector efficiency investments and to promote the adoption of ‘‘off-the-shelf’’ technologies that will save 

money for consumers and businesses, make America more energy 

independent, the economy more competitive, and reduce environmental impacts. For most energy consuming appliances and equipment, more efficient models or technologies are commercially available today. Increased deployment of these alternatives would pay 

for themselves through energy savings and yield long-term benefits 

to consumers and to the nation. 

The Energy Information Administration reports that commercial 

and residential buildings combined consumed 41 percent of all energy used in 2011. The U.S. industrial sector consumes more energy than any other sector of our economy and the Federal Government is the largest single energy consumer in the U.S. ESIC’s provisions target these sectors for energy-efficiency upgrades, which 

will promote economic growth in all regions of the country. 

LEGISLATIVE HISTORY

S. 720 was introduced by Senators Portman, Shaheen, Ayotte, 

Bennet, Cantwell, Collins, Coons, Franken, Heller, Hoeven, 

Manchin, Murkowski, Warner, and Wicker on March 11, 2015. The 

Senate Committee on Energy and Natural Resources (Committee) 

held a legislative hearing on S. 720 on April 30, 2015. 

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

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

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

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

was not invoked in the Senate by a yea-nay vote of 55–36 on May 

12, 2014. S. 1392 was considered by the Senate on September 19, 

2013. Companion legislation, H.R. 1616, was introduced in the 

House by Representative McKinley on April 18, 2013. S. 2074 and 

S. 761, were introduced by Senators Shaheen and Portman on February 27, 2014 and April 18, 2013, respectively. The Committee 

held a hearing on S. 761 on April 23, 2013 (S. Hrg. 113–24), and 

it was favorably reported by the Committee on June 3, 2013 (S. 


SSpencer on DSK4SPTVN1PROD with REPORTS
5 

Rpt. 113–37). The bill was similar to S. 1000 (112th Congress) as 

introduced on May 16, 2011, as heard by the Committee on June 

9, 2011 (S. Hrg. 112–273), and as favorably reported by the Committee on September 6, 2011 (S. Rpt. 112–71). Parts of S. 761 were 

similar to other bills that were considered by the Committee in the 

111th Congress including: the building energy codes provisions of 

S. 1462, the American Clean Energy Leadership Act of 2009; the 

commercial building financing provisions of the Recovery Through 

Building Renovation Act of 2010; the manufacturing efficiency provisions of S. 1462; and the provisions of the Supply Star Act of 

2010. 

Since the introduction of S. 720, S. 535, a bill comprised of sections 131–133 (Better Buildings), section 141 (Energy Information 

for Commercial Buildings), and section 421 (Grid-enabled Water 

Heaters) of S. 720 was introduced by Senators Portman and Shaheen. It passed by the Senate on March 27, 2015, and the House 

on April 21, 2015. It was signed by the President on April 30, 2015 

(Public Law 114–11). 

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

for Schools) was introduced as S. 600. Section 431 (Requirements 

for Federal Buildings) and Section 432 (Certification Systems for 

Federal Green Buildings) of S. 720 were introduced as S. 869. 

These two bills are also on the agenda for the April 30, 2015 hearing. 

The Committee on Energy and Natural Resources met in an open 

business session on July 30, 2015 and ordered S. 720 favorably reported with amendments. 

COMMITTEE RECOMMENDATION AND TABULATION OF VOTES

The Committee on Energy and Natural Resources, in an open 

business session on July 28, 2015, by a majority voice vote of a 

quorum present, recommended that the Senate pass S. 720 with 

amendments, if amended as described herein. 

The roll call vote on reporting the measure was 20 yeas, 2 nays, 

as follows: 

YEAS NAYS 

Ms. Murkowski Mr. Lee* 

Mr. Barrasso Mr. Flake* 

Mr. Risch 

Mr. Daines 

Mr. Cassidy* 

Mr. Gardner 

Mr. Portman 

Mr. Hoeven 

Mr. Alexander* 

Mrs. Capito 

Ms. Cantwell 

Mr. Wyden* 

Mr. Sanders* 

Ms. Stabenow 

Mr. Franken 

Mr. Manchin 

Mr. Heinrich 

Ms. Hirono 


SSpencer on DSK4SPTVN1PROD with REPORTS
6 

Mr. King 

Ms. Warren 

*Indicates vote by proxy. 

COMMITTEE AMENDMENTS

During its consideration of S. 720, the Committee adopted 

amendments that make three primary changes to the bill as introduced by striking subtitles D, relating to better buildings and striking subtitle E of title I, relating to energy information for commercial buildings; striking subtitle C of title IV, relating to water heaters; and substituting the language in section 441 relating to voluntary verification programs for air conditioning, furnace, boiler, 

heat pump, and water heater products in response to technical assistance received from the Department of Energy. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title; table of contents 

Section 1 provides a short title for the measure and the table of 

contents. 

Section 2. Definition of Secretary 

Section 2 provides the definition of Secretary. 

TITLE I: BUILDINGS 

SUBTITLE A: BUILDING ENERGY CODES

Section 101. Greater energy efficiency in building codes 

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

and Production Act (ECPA) to add certain definitions. Section 

101(b) amends section 304 of ECPA to require that the Secretary 

of Energy encourage and support the adoption of building energy 

codes by States, local governments, or Indian tribes that meet or 

exceed model building energy codes. Section 101(d) amends section 

307 of ECPA to require that the Secretary of Energy support the 

updating of model building energy codes. 

SUBTITLE B: WORKER TRAINING AND CAPACITY BUILDING

Section 111. Building training and assessment centers 

Section 111 directs the Secretary of Energy (Secretary) to provide 

grants to institutions of higher education and Tribal Colleges or 

Universities to establish building training and assessment centers. 

Section 112. Career skills training 

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


SSpencer on DSK4SPTVN1PROD with REPORTS
7 

SUBTITLE C: SCHOOL BUILDINGS

Section 121. Coordination of energy retrofitting assistance for 

schools 

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

Energy Efficiency and Renewable Energy (EERE) to coordinate and 

disseminate information on existing Federal programs that may be 

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

TITLE II: INDUSTRIAL EFFICIENCY AND COMPETITIVENESS 

SUBTITLE A: MANUFACTURING ENERGY EFFICIENCY

Section 201. Purposes 

Section 201 provides the purpose of this subtitle. 

Section 202. Future of Industry program 

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

2007 to add a definition of ‘‘energy service provider.’’ Section 202(c) 

amends section 452(e) of the EISA 2007 to direct Industrial Assessment Centers (IACs) to coordinate with the Manufacturing Extension Partnership Centers of the National Institute of Standards 

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

increase partnerships with the national laboratories and energy 

service and technology providers and directs the Secretary to establish an Advanced Manufacturing Steering Committee. 

Section 203. Sustainable manufacturing initiative 

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

Conservation Act (EPCA) to add a Sustainable Manufacturing Initiative which requires DOE’s EERE to provide onsite technical assessments to manufacturers seeking efficiency opportunities and 

requires the Secretary to carry out a joint industry-government 

partnership program to research, develop, and demonstrate new 

sustainable manufacturing and industrial technologies and processes. 

Section 204. Conforming Amendments 

Section 204 makes conforming changes to the Energy Policy Act 

(EPACT) of 2005. 

SUBTITLE B: SUPPLY STAR

Section 211. Supply Star 

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

DOE pilot program in coordination with Energy Star to promote 

practices that maximize supply chain efficiency. 

SUBTITLE C: EXTENDED PRODUCT REBATE PROGRAM

Section 221. Extended product system rebate program 

Section 221 directs the Secretary to establish a rebate program 

to encourage the replacement of energy inefficient electric motors. 


SSpencer on DSK4SPTVN1PROD with REPORTS
8 

SUBTITLE D: TRANSFORMER REBATE PROGRAM

Section 231. Energy efficient transformer rebate program 

Section 231 directs the Secretary to establish a rebate program 

to encourage the replacement of energy inefficient transformers. 

TITLE III: FEDERAL AGENCY ENERGY EFFICIENCY 

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

Section 301 amends section 543 of the National Energy Conservation Policy Act (NECPA) by adding a section that directs the 

Director of the Office of Management and Budget (OMB) to collaborate with each Federal agency to develop an implementation strategy for the maintenance, purchase, and use of energy-efficient and 

energy-saving information technologies. 

Section 302. Availability of funds for design updates 

Section 302 amends section 3307 of title 40 of the U.S. Code to 

allow the Administrator of General Services to use appropriated 

funds to update the design of a building for which the design has 

been substantially completed but on which construction has not 

begun to meet Federal building energy efficiency standards. 

Section 303. Energy efficient data centers 

Section 303 amends section 453 of EISA 2007 to update the Voluntary National Information Program. It requires the Secretary to 

develop a metric for data center energy efficiency, and directs the 

Secretary, in consultation with the Director of OMB, to maintain 

a data center energy practitioner program and open data initiative 

for Federal data center energy usage. 

Section 304. Budget-neutral demonstration program for energy and 

water conservation improvements at multifamily residential 

units 

Section 304 directs the Secretary of Housing and Urban Development (HUD) to conduct a pilot project that demonstrates the use 

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

water conservation improvements in HUD multifamily housing. 

TITLE IV: REGULATORY PROVISIONS 

SUBTITLE A: THIRD-PARTY CERTIFICATION UNDER ENERGY STAR

PROGRAM

Section 401. Third-party certification under Energy Star program 

Section 401 amends section 324A of EPCA by directing the Administrator to revise the certification requirements for Energy Star 

program partners that manufacture consumer, home, and office 

electronic products and have complied with all program requirements for at least 18 months. 


SSpencer on DSK4SPTVN1PROD with REPORTS
9 

SUBTITLE B: FEDERAL GREEN BUILDINGS

Section 411. High-performance green Federal buildings 

Section 411 amends section 436(h) of EISA 2007 to require the 

Federal Director of the Office of Federal High-Performance Green 

Buildings, within the General Services Administration, to conduct 

an ongoing review of private sector green building certification systems and provide the Secretary with a list of certification systems 

most likely to encourage a comprehensive and environmentally 

sound approach to certification of green buildings. 

SUBTITLE C: ENERGY PERFORMANCE REQUIREMENT FOR FEDERAL

BUILDINGS

Section 421. Energy performance requirements for Federal buildings 

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

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

buildings with energy intensive activities and creates reporting requirements for excluded buildings. Section 543(f)(3) will require 

federal energy managers to complete comprehensive energy and 

water evaluation and recommissioning or retrocommissioning for 

25 percent of the facilities of each agency for excluded buildings for 

which reporting is required by section 2(b) to ensure that federal 

buildings are performing at their optimal level of energy efficiency. 

Not later than 2 years after the date of completion of each evaluation, each energy manager may implement energy- or water-saving 

measures identified in the evaluation or shall explain why the 

measures were not implemented. 

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

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

existing energy standards for new federal buildings to cover major 

renovations. 

Section 423. Enhanced energy efficiency underwriting 

Section 423 requires the Secretary of Housing and Urban Development to develop and issue updated underwriting and appraisal 

guidelines for borrowers who voluntarily submit a qualified home 

energy report. The provision would cover any loan issued, insured, 

purchased, or securitized by the Federal Housing Administration 

(FHA) and other federal agencies, or their successors. The updated 

guidelines would adjust underwriting criteria and valuation guidelines to account for expected energy cost savings as an offset to 

other expenses and to account for present value of expected energy 

savings. If no qualified energy report is provided, no adjustment 

would be made. Lenders would be required to inform loan applicants of the costs and benefits of improving the energy efficiency 

of a home. 


SSpencer on DSK4SPTVN1PROD with REPORTS
10 

SUBTITLE D: VOLUNTARY VERIFICATION PROGRAMS FOR AIR CONDITIONING, FURNACE, BOILER, HEAT PUMP, AND WATER HEATER PRODUCTS

Section 431. Voluntary verification programs for air conditioning, 

furnace, boiler, heat pump, and water heater products 

Section 431 requires DOE to recognize certain qualified voluntary, independent certification programs for the energy performance of air conditioning, furnace, boiler, heat pump, and water 

heater products. It requires the DOE to rely on these programs to 

verify the performance rating of these products, provide annual reports of all test results, and maintain a publicly available list of all 

certified models. 

TITLE V: MISCELLANEOUS 

Section 501. Budgetary effects 

Section 501 states that for the purpose of complying with the 

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

legislation shall be determined by reference to the latest statement 

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

Section 502. Advance appropriations required 

Section 502 provides that authorization of amounts under this 

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

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

advance in appropriations Acts. 

COST AND BUDGETARY CONSIDERATIONS

The Congressional Budget Office estimate of the costs of this 

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

report was filed. When the report is available, the Chairman will 

request it to be printed in the Congressional Record for the advice 

of the Senate. 

REGULATORY IMPACT EVALUATION

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

Rules of the Senate, the Committee makes the following evaluation 

of the regulatory impact which would be incurred in carrying out 

the bill. 

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

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

with voluntary programs, such as those designed to increase energy 

efficiency efforts, will require commitments of resources. Various 

grant and other assistance programs will require submission of 

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

in light of the benefits of the programs. 

No personal information would be collected in administering the 

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

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


SSpencer on DSK4SPTVN1PROD with REPORTS
11 

CONGRESSIONALLY DIRECTED SPENDING

S. 720, as ordered reported, does not contain any congressionally 

directed spending items, limited tax benefits, or limited tariff benefits as defined in rule XLIV of the Standing Rules of the Senate. 

EXECUTIVE COMMUNICATIONS

The testimony provided by the Office of Energy Efficiency and 

Renewable Energy at the April 30, 2015 hearing on S. 720 follows: 

STATEMENT OF DR. KATHLEEN HOGAN, DEPUTY ASSISTANT

SECRETARY FOR ENERGY EFFICIENCY, OFFICE OF ENERGY

EFFICIENCY AND RENEWABLE ENERGY, DEPARTMENT OF

ENERGY

INTRODUCTION

Chairman Murkowski, Ranking Member Cantwell, and 

Members of the Committee, thank you for the opportunity 

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

(DOE) Office of Energy Efficiency and Renewable Energy 

(EERE) regarding energy efficiency. 

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

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

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

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

businesses money, creating jobs, and reducing pollution. 

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

and manufactured in America. 

As Deputy Assistant Secretary for Energy Efficiency in 

the Office of Energy Efficiency and Renewable Energy 

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

energy efficiency research, development, demonstration, 

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

designing homes and buildings, to new ways of improving 

the energy intensity and competitiveness of American 

manufacturers. EERE’s energy efficiency portfolio also 

supports better integrating the built environment with our 

energy system to combat costly peaks in energy demand 

and to increase the capabilities and value of buildings and 

facilities. 


SSpencer on DSK4SPTVN1PROD with REPORTS
12 

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

U.S. energy resource. Increased energy efficiency offers 

savings on energy bills, opportunities for more jobs, and 

improved industrial competitiveness, and it will lower air 

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

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

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

statement today will address the energy efficiency bills 

currently before the Committee, and provide an update on 

DOE’s energy efficiency portfolio, the challenges we are 

working to address, and the progress we are making. 

ENERGY EFFICIENCY LEGISLATION

I have been asked to testify on 22 energy efficiency bills 

currently before the Committee. In my testimony, I will 

address: 

• S. 720—Energy Savings and Industrial Competitiveness Act of 2015; 

• S. 703—Weatherization Enhancement and Local 

Energy Efficiency Investment and Accountability Act. 

This bill reauthorizes the Weatherization Assistance 

Program from fiscal year 2016 through fiscal year 

2020, and seeks to establish a competitive grant program to expand the number of low-income, single-family and multifamily homes that receive energy efficiency retrofits; and 

• S. 858—Energy Savings Through Public-Private 

Partnerships Act of 2015. This bill seeks to encourage 

the use of Energy Savings performance contracts and 

Utility Energy Service Contracts in federal government buildings. 

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

to continuing to work with the Committee and the range 

of bill sponsors as legislation works its way through Congress. 

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

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

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

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

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

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


SSpencer on DSK4SPTVN1PROD with REPORTS
13 

1Monthly Energy Review, Energy Information Administration, U.S. Department of Energy, 

November 2014, http://www.eia.gov/totalenergy/data/monthly/pdf/mer.pdf. 2 Annual Energy Outlook, Energy Information Administration, U.S. Department of Energy, 

April 2014, http://www.eia.gov/forecasts/aeo/pdf/0383(2014).pdf. 

with the bill sponsors and this Committee to cut carbon 

pollution and begin to slow the effects of climate change. 

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

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

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

to reauthorize DOE’s existing Weatherization Assistance 

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

recommends that authorization also be provided for the 

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

Budget. WAP provides grants to states, territories, and 

some Indian tribes to improve the energy efficiency of the 

homes of low-income families. SEP provides funding and 

technical assistance to state and territory energy offices to 

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

projects. While DOE supports the reauthorization of WAP 

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

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

2016 through 2020. The lowered amount for authorization 

for SEP may not be sufficient for States to complete 

projects contemplated under SEP, given the significant 

role of states in energy efficiency, renewable energy, and 

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

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

Energy Savings performance contracts and Utility Energy 

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

emissions and save taxpayer dollars. 

EERE’S ENERGY EFFICIENCY PORTFOLIO

EERE’s program offices are implementing a variety of 

strategies to improve the efficiency of our homes, buildings 

and manufacturers, similar to the activities highlighted in 

the legislation before the Committee today. 

Building technologies 

Improving energy efficiency in our homes and buildings 

offers a tremendous opportunity to create well-paying jobs, 

save money for businesses and consumers, and make our 

air cleaner. Residential and commercial buildings consume 

more than 40 percent of the Nation’s total energy and 

more than 73 percent of its electrical energy,1 resulting in 

an estimated annual national buildings energy bill of more 

than $430 billion.2 This energy bill can be reduced by 20– 

50 percent through a variety of existing and emerging 

building energy efficiency technologies and techniques once 


SSpencer on DSK4SPTVN1PROD with REPORTS
14 

these solutions are successfully developed, commercialized, 

and proven to be cost effective. 

EERE’s Building Technologies Program (BTO) will continue to develop and demonstrate advanced building efficiency technologies and practices to make buildings in the 

U.S. more efficient, affordable, and comfortable. Key recent 

EERE accomplishments in BTO include the following: • Helping American commercial, industrial, and multifamily buildings become at least 20 percent more energy 

efficient by 2020. Through the Better Buildings Challenge, 

more than 250 partners are achieving average energy savings of 2.5% annually. These partners are on track to 

achieve the goal of more than 20% energy savings over 10 

years and have saved 36 trillion Btus and $300 million 

since the Challenge began in 2011. • Curbing greenhouse gas emissions with advanced refrigeration systems. Through the Building Technologies Office’s Emerging Technologies R&D program, a leading commercial refrigeration manufacturer worked with Oak Ridge 

National Laboratory to design a refrigeration system with 

25% lower energy consumption and 78% lower GHG emissions than existing systems. • Providing consumers billions of dollars in energy savings. As part of President Obama’s Climate Action Plan, 

the Energy Department finalized ten energy efficiency 

standards in 2014. Altogether, those ten standards will 

help reduce carbon dioxide emissions by over 435 million 

metric tons and save American families and businesses 

$78 billion in electricity bills through 2030. 

The program uses a three-pronged strategy: (1) High Impact Technology Research and Development—research and 

development (R&D) targeting the greatest opportunities to 

develop high-impact new cost-effective energy efficiency 

products and solutions (i.e., the highest potential market 

and energy efficiency impact); (2) Technology-to-Market— 

validating and driving these technology products and solutions into the market by verifying and improving performance and cost, providing improved data and information, 

and partnering with manufacturers and users; and (3) 

Lock In Savings—where a government role is appropriate 

and justified, locking in the savings through market based 

(e.g., working with the Environmental Protection Agency 

on the ENERGY STAR Program) and regulatory (i.e., 

codes and standards) efforts that provide clear public and 

net economic benefits to both producers and consumers. 

The program invests in a balanced portfolio of activities 

that are determined to contribute optimally to national energy efficiency goals. 

R&D on next-generation building technologies will lead 

to advances in end-uses representing the majority of building energy consumption, including efficient lighting that is 

cost-competitive in today’s market, new technologies in 

heating and cooling, and windows that decrease energy demands and improve comfort. DOE also invests in whole 

building R&D that demonstrates how new energy efficient 


SSpencer on DSK4SPTVN1PROD with REPORTS
15 

3The BBC website address is www.better buildings.energy.gov/challenge. 

technologies can function together to create an efficient 

system, achieve greater overall savings, and inspire the 

next-generation of buildings. For homes, this will translate 

into a new generation of housing stock that is durable, 

uses smarter energy management systems, and offers substantial energy savings. 

In addition to creating energy efficiency opportunities in 

the new buildings market, DOE invests in activities that 

target the large savings potential that exists across the 

stock of existing homes, many built before modern codes. 

Here, the Department is working to reduce U.S. buildingrelated energy use in existing homes by 20 percent by 

2020 and 40 percent by 2030 through applied research 

(e.g. how builder/retrofitters can more cost effectively install technical solutions into homes) to: resolve the major 

technology to market challenges to achieving these goals, 

develop infrastructure to support the construction or improvement of homes to meet higher performance levels, 

and demonstrate and then promote higher energy efficiency home retrofit and model homes for new construction 

that may be implemented at the state and local level. 

The Better Buildings Challenge is a signature partnership effort to make our Nation’s buildings 20% more energy efficient over the next ten years, with over 250 partners across the commercial, industrial, residential, and 

public sectors. Together, these partners account for approximately 3.5 billion square feet of building floor space, 

more than 600 manufacturing facilities, and $5.5 billion in 

private sector financing. As partners advance toward meeting their individual goals, the Better Buildings Challenge 

website 3 will highlight their commitment and progress, including the sharing of showcase projects and hundreds of 

replicable implementation models that other organizations 

can adopt. To date, more than $3 billion of the commitment from private sector financial firms has been extended 

to projects, and we are continuing to look for ways to expand access to private-sector financing, as this remains an 

important barrier cited by commercial building owners. 

In addition, the Department sets minimum energy efficiency standards for approximately 60 categories of appliances and equipment used in homes, businesses, and other 

applications, as required by existing law. For most products, Congress passed laws that set initial federal energy 

efficiency standards and test procedures, and that established schedules for DOE to review and update these 

standards and test procedures. The Appliance and Equipment Standards Program reduces manufacturers’ regulatory burden and costs, and therefore costs to consumers, 

by providing single national standards in place of a patchwork of state-by-state standards. Since 2009, 25 new or 

updated standards, covering more than 30 products, have 

been issued and will ensure annual energy savings over 

the coming years. The Program is highly effective, achievVerDate Sep 11 2014 03:01 Sep 15, 2015 Jkt 049010 PO 00000 Frm 00015 Fmt 6659 Sfmt 6969 E:\HR\OC\SR130.XXX SR130

SSpencer on DSK4SPTVN1PROD with REPORTS
16 

4Full-time and Part-time employees by industry, U.S. Department of Commerce, http:// 

www.bea.gov/iTable/iTable.cfm?reqid=5&step=4&isuri=1&402=43&403=1#reqid=5&step=4& 

isuri=1&402=43&403=1 Value added by industry as percentage of GDP, U.S. Department of 

Commerce, http://www.bea.gov/iTable/ 

iTable.cfm?reqid=5&step=4&isuri=1&402=5&403=1#reqid=5&step=4&isuri=1&402=5&403=1 5 Annual Energy Outlook 2014: Reference Case Data, U.S. Energy Information Administration, available from: http://www.eia.gov/forecasts/aeo/data.cfm 

ing dramatic bang-for-the-buck in energy savings. The cumulative utility bill savings to consumers from energy efficiency standards is estimated to be nearly $1.8 trillion by 

2030. 

Further, DOE assists with the adoption and implementation of state and local building codes for both commercial 

and residential buildings. Building energy codes are an existing solution that can provide between 20–30 percent 

whole building energy savings. The program assists states 

and localities in adopting, complying with, and enforcing 

energy codes for residential and commercial buildings, resulting in higher-performing buildings that maximize costeffective energy savings. Pacific Northwest National Laboratory estimates the annual impact of these activities to 

be over 100 trillion Btu of primary energy savings and almost $780 million in energy cost savings. To accomplish its 

objectives in this area, DOE has developed a suite of assistance tools it routinely provides to state and local authorities. 

In FY2016, DOE has requested $264,000,000 for the 

Building Technologies Office. 

Advanced manufacturing 

The U.S. manufacturing sector offers important opportunities for cutting energy waste, while improving our industrial competitiveness and promoting economic growth. In 

the United States, manufacturing represents about 12% of 

the gross domestic product and nearly 12 million jobs.4

While being a key sector underlying long-term economic 

growth, manufacturing also has an annual energy bill of 

about $200 billion and uses roughly one-third of the primary energy (and related GHG emissions) in the U.S.5

U.S. manufacturing can particularly benefit from technologies for energy efficiency across the board, as industry 

must continually improve productivity and efficiency to remain globally competitive. 

EERE’s Advanced Manufacturing Office (AMO) partners 

with industry, small business, universities, and other 

stakeholders to identify and invest in emerging technologies with the potential to create high-quality manufacturing jobs, enhance global competitiveness of the United 

States, and reduce energy use by encouraging a culture of 

continuous enrichment in corporate energy management. 

Key recent AMO accomplishments include: 

• Pushing the boundaries of additive manufacturing. 

The EERE-supported Manufacturing Demonstration Facility (MDF) at Oak Ridge National Laboratory collaborated 

with private sector partners to design and prototype a 3Dprinted car—all in just six months. This project was enVerDate Sep 11 2014 07:04 Sep 15, 2015 Jkt 049010 PO 00000 Frm 00016 Fmt 6659 Sfmt 6969 E:\HR\OC\SR130.XXX SR130

SSpencer on DSK4SPTVN1PROD with REPORTS
17 

6 Internal analysis based on data from the Industrial Assessment Centers Database, http:// 

iac.rutgers.edu/database. 

abled through a partnership between the MDF and industry stakeholders, which developed breakthrough additive 

manufacturing processes and allowed industry to print 

more efficiently and on a larger scale than similar commercially available processes. 

• Assuring supply chains of materials critical to clean 

energy technologies. The Critical Materials Institute 

(CMI), an Energy Innovation Hub for the U.S. Department 

of Energy (DOE), celebrated its second anniversary with 

twenty-seven invention disclosures. Critical materials, including some rare earth elements that possess unique 

magnetic, catalytic, and luminescent properties, are key 

resources needed to manufacture products for the clean energy economy. 

• Saving manufacturers money across the U.S. Industrial Assessment Centers located within accredited engineering programs at 24 universities across the country 

conduct energy audit assessments at manufacturers’ sites. 

According to analyses done by the program, on average, 

each manufacturer identifies about $140,000 in potential 

annual energy savings. Almost 17,000 manufacturers have 

benefited from the program and implemented savings resulting in approximately 5 million metric tons of carbon dioxide emission reductions.6

AMO’s research, development, demonstration, and deployment investments advance high-impact technologies 

for energy efficiency in the manufacturing sector in addition to foundational, cross-cutting manufacturing and materials technologies critical to efficient and competitive domestic manufacturing of clean energy products. AMO’s investments in foundational technologies are anticipated to 

have a high impact in helping save energy and improve 

competitiveness and that will benefit multiple industries 

in the installed industrial base. When R&D investments 

are approached in this manner, the extensive supply 

chains associated with manufacturing multiply the government’s initial investments from one industry to multiple 

applications in other industries and end-use products. 

The Program addresses these clean energy manufacturing challenges using three primary modalities of support: research and development of early stage manufacturing technologies through the support of individual R&D 

projects, pre-commercial technology development through 

facilities and manufacturing consortia, and technology assistance through manufacturing partnership participation, 

assessment and evaluation tools. 

EERE leads the Department of Energy’s Clean Energy 

Manufacturing Initiative which is a Department-wide approach to increase U.S. competitiveness in clean energy 

manufacturing while advancing progress toward the nation’s energy goals. EERE-supported Clean Energy Manufacturing Innovation Institutes are public-private partnerVerDate Sep 11 2014 03:01 Sep 15, 2015 Jkt 049010 PO 00000 Frm 00017 Fmt 6659 Sfmt 6969 E:\HR\OC\SR130.XXX SR130

SSpencer on DSK4SPTVN1PROD with REPORTS
18 

ships focusing on RD&D of foundational technologies that 

are broadly applicable and prevalent in multiple industries 

and markets within the energy sector and that have potentially transformational technical and productivity impacts 

for the U.S. manufacturing sector more broadly. All institutes will be actively managed through cooperative agreements with well-defined milestones, and oriented toward 

clearly stated research objectives and outcomes to ensure 

timely achievement of all technical, operational, organizational and partnership goals. Also, within 5 years of its 

launch, each institute is expected to be financially independent and sustainable using only private-sector and 

other sources of funding without further federal financial 

assistance. 

One example of the Department’s efforts in this area include our recently selected Institute for Advanced Composites Manufacturing Innovation, led by the University of 

Tennessee and headquartered in Knoxville, already has 

122 committed partners united toward the common goal of 

lowering overall costs for manufacturing advanced composites by 50 percent, reducing the energy use to do so by 75 

percent, and increasing the ability to recycle composites by 

more than 95 percent. Advanced composites have the potential to deliver clean energy products with better performance and lower costs, such as lighter and longer wind 

turbines blades; high pressure tanks for natural gas- and 

hydrogen-fueled cars; lighter, highly energy-efficient industrial equipment; and lightweight vehicles. 

In addition, the Department has released a Notice of Intent to issue a competitive solicitation in 2015 to fund a 

Clean Energy Manufacturing Innovation Institute focused 

on smart manufacturing. Smart manufacturing utilizes a 

suite of tools to enable real-time operational energy efficiency improvements in manufacturing ranging from unit 

processes to factory-wide integration to enterprise-wide energy management. 

The Department also has active technical assistance programs aimed at reducing manufacturing energy intensity 

by 25% over ten years by engaging a diverse set of industry partners in effective business models, continuous improvement in energy efficiency, modeling key processes, 

and supporting standards and certifications for third-party 

services. One example is the 24 existing Industrial Assessment Centers (IACs), situated at universities with major 

engineering programs, which conduct energy efficiency, 

productivity improvement, and waste reduction assessments for small- and medium-sized manufacturer at no 

cost to them. DOE technical assistance also supports the 

achievement of the national goal set by President Obama 

of developing 40 gigawatts of new, cost-effective industrial 

CHP by 2020. And, DOE provides tools to support improvements in a number of common systems in manufacturing facilities, including motor, steam, compressed air, 

and pumping systems. 


SSpencer on DSK4SPTVN1PROD with REPORTS
19 

In FY2016, DOE has requested $404,000,000 for the Advanced Manufacturing Office. 

Weatherization and Intergovernmental Programs 

For decades, states have demonstrated leadership 

through their unique authorities to develop and implement 

energy efficiency and renewable energy policies and programs. State governments wield considerable influence in 

the building sector through upgraded building codes and 

incentives; in the utility sector through energy efficiency 

and renewable energy targets and customer programs; and 

in the industrial sector with policies that encourage energy 

efficiency through activities such as energy audits and 

combined heat and power. 

EERE’s Office of Weatherization and Intergovernmental 

Programs (WIP) partners with its national network of 

state and local organizations to significantly accelerate the 

deployment of energy efficiency and renewable energy 

technologies and practices by a wide range of government, 

community, and business stakeholders. 

Key recent WIP accomplishments include: 

• Provided critical funding for states to weatherize 

homes. In FY 2014 alone, EERE helped improve the energy performance and comfort in the homes of 37,831 

American low-income families across the Nation, resulting 

in an estimated 1.1 trillion Btu of first-year energy savings 

and $16 million in first-year energy cost savings. 

• Maintained strict certification and auditing requirements to protect taxpayers. In FY2014, WAP implemented 

national certifications and work specifications for residential retrofit worker training, energy audits and weatherization methods. 

Included within the Office of Weatherization and Intergovernmental Programs are the Weatherization Assistance 

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

The Weatherization Assistance Program provides funding through formula grants to increase the energy efficiency of dwellings owned or occupied by low-income persons, reduce their total residential energy expenditures, 

and improve their health and safety. Through retrofitting 

residential buildings, WAP activities reduce the cost of 

low-income household energy bills, which are significantly 

disproportionately higher relative to higher income households. Up to 40 million low-income households in the U.S. 

are eligible for low-income housing energy assistance. In 

FY2014, the Weatherization Assistance Program funding 

weatherized approximately 38,000 homes, exceeding its fiscal year goal of 24,600 homes retrofits for low income families by approximately 50 percent. The Weatherization Assistance Program also provides training and technical assistance to improve program effectiveness, service deliver, 

resource accountability, and operation efficiency. Specifically, training and technical assistance funding supports 

the development and implementation of a variety of tools 


SSpencer on DSK4SPTVN1PROD with REPORTS
20 

7White House Fact Sheet: Reducing Greenhouse Gas Emissions in the Federal Government 

and Across the Supply Chain. https://www.whitehouse.gov/the-press-office/2015/03/19/factsheet-reducing-greenhouse-gas-emissions-federal-government-and-acro 

needed to implement work quality, training accreditation, 

and worker certification. 

The State Energy Program assists states through competitive and formula funding in establishing and implementing energy efficiency and renewable energy plans, 

policies, and programs to reduce energy costs, increase 

competitiveness, enhance economic competitiveness, improve emergency planning, and improve the environment. 

States have purview over many of the policy and program 

levers that can catalyze greater investment in clean energy 

and help the country realize the suite of economic and environmental benefits associated with clean energy. The 

State Energy Program provides states with capacity building resources, technical assistance, and best practice sharing networks to facilitate the adoption of plans, policies, 

and programs that are appropriate based on state and regional circumstances. 

In addition, the Local Energy Program, proposed as part 

of the Department’s FY2016 Budget Request, is a new program that will provide support to local governments for energy planning, program development and implementation, 

analysis, and other related efforts through technical assistance and competitively awarded grants. Local energy efficiency policies, implemented at this scale, in a municipality, county or metropolitan area will lower energy costs, 

reduce greenhouse gas emissions, and support economic 

development goals. The objective of the Local Energy Program is to serve as a catalyst for developing creative and 

effective solutions through projects that improve local energy code implementation; expansion of energy upgrades in 

commercial buildings and residential buildings, upgrades 

to the energy efficiency of their own public facilities and 

operations; development of sustainable funding and financing resources. 

In FY2016, DOE has requested $318,499,000 for the Office of Weatherization and Intergovernmental Programs. 

Federal Energy Management 

The U.S. Federal government is the Nation’s single largest user of energy and has both a tremendous opportunity 

and an acknowledged responsibility to lead by example in 

saving energy. Since 1975, the Federal Government has reduced its energy intensity by 46.2 percent, and 20.6 percent from 2003. Federal GHG emissions have also dropped 

17.2 percent since 2008. Additionally, the Federal Government is credited with using 9.2 percent of its electricity 

from renewable sources. Federal Agencies have also made 

progress on a number of other fronts, like reducing water 

use by 19 percent since 2007.7

A number of energy efficiency goals for the federal government were recently extended through 2025 by ExecuVerDate Sep 11 2014 06:31 Sep 15, 2015 Jkt 049010 PO 00000 Frm 00020 Fmt 6659 Sfmt 6969 E:\HR\OC\SR130.XXX SR130

SSpencer on DSK4SPTVN1PROD with REPORTS
21 

8 Executive Order 13693 is accessible at https://www.whitehouse.gov/the-press-office/2015/ 

03/19/executive-order-planning-federal-sustainability-next-decade. 

tive Order 13693 8 signed in March 2015. It set goals to cut 

the Federal Government’s greenhouse gas (GHG) emissions by 40 percent below 2008 levels by 2025—saving tax 

payers up to $18 billion in avoided energy costs—and increase the share of electricity the Federal Government consumes from renewable sources to 30 percent. The new E.O. 

builds off of the strong progress the federal government 

has already made. 

DOE plays a critical role in providing technical assistance to Federal agencies to increase understanding and accelerate cost-effective adoption of energy-saving technologies and strategies. DOE’s Federal Energy Management Program (FEMP) has developed strategic programs 

to identify high impact opportunities with public-private 

sector partnerships as well as technical approaches to address critical barriers across the Federal Government. 

FEMP activities contribute to reducing the energy intensity at Federal facilities, lowering their energy bills, and 

providing environmental benefits through: 

• Interagency coordination to align interagency efforts surrounding Federal energy management planning and legislation compliance; • Training federal agency managers about the latest 

energy requirements, best practices, and technologies; 

• Reporting/tracking tools that provide centralized 

reporting, data collection, and strategic communication; 

• Financial resources and technical assistance to increase Federal agencies’ investments in energy efficiency, water conservation, and renewable energy; and 

• Data Center Assistance to help agencies develop 

and implement data center efficiency projects through 

technical assistance, tools, and training that increase 

adaptation of measurement protocols, reporting mechanisms, and best practices. 

Key recent FEMP accomplishments include: 

• Federal Energy Efficiency Fund. The First Federal Energy Efficiency Fund Solicitation in FY 2014 

was awarded $5 million to 9 projects worth a total investment of $120 million in renewable energy and 

combined heat and power projects (a 24:1 leveraging 

ratio). Many of the projects are first-time projects for 

particular agencies, offering the potential of more in 

the future. The effort also brought forward a broad set 

of projects through which FEMP can provide other assistance to federal agencies. 

• New Better Buildings Challenge and Accelerator 

for Data Centers. FEMP spearheaded a new Better 

Buildings Challenge and Accelerator for Data Centers 

announced in fall 2014, in coordination with EERE’s 

Building Technologies Office. This Challenge has engaged federal agencies, national laboratories, and the 


SSpencer on DSK4SPTVN1PROD with REPORTS
22 

private sector, including eBay and Staples, in efforts 

to greatly improve data center efficiency. Data center 

energy consumption is significant nationally and 

across the federal sector, and it can be reduced 20%– 

40% by applying best management energy efficiency 

measures and strategies typically with short returns 

on investment. 

In December 2011, President Obama signed a Presidential Memorandum directing the Federal government to 

enter into a minimum of $2 billion in performance-based 

contracts over the next two years for Federal building energy efficiency. In May of 2014, the president announced 

the expansion and extension of the President’s Performance Contracting Challenge (PPCC) to $4 billion by 2016. 

In FY 2016, DOE’s Federal Energy Management Program 

will continue to support the PPCC by assisting agencies to 

successfully meet the $4 billion goal, and helping agencies 

to continue their acceleration of using performance contracts to meet future energy investment needs and goals. 

FEMP will also share and rely on best practices from the 

PPCC to partner with other government and private sector 

stakeholders/partners to accelerate their use of performance contracts. As of March 15th, 2015, federal agencies 

have developed a pipeline of about $4.74 billion in projects, 

which exceeds the $3.97 billion commitment. Agencies are 

working with FEMP and to date have awarded a total of 

199 projects with an investment value of $2.01 billion and 

an estimate pipeline of $2.7 billion. 

In FY2016, DOE has requested $43,088,000 for the Federal Energy Management Program. 

CONCLUSION

Through R&D, deployment, and collaborations at all levels of government and the private sector, the Department 

of Energy aims to capitalize on the opportunities that energy efficiency affords. The Department’s efforts to lead in 

next-generation buildings and advanced manufacturing 

will result in a more secure, resilient, and competitive energy economy. While we are making progress, continued 

efforts are necessary to capture the full set of opportunities. 

The Administration looks forward to continuing to work 

with the Congress on bipartisan legislation to support energy efficiency and boost U.S. competitiveness and job creation. From partnering with companies and businesses to 

reduce their energy bills through the Better Buildings Initiative, to Federal administrative actions to cut energy use 

across Federal facilities, the Department is committed to 

winning the future by catalyzing a homegrown, clean energy economy in the United States. 

Thank you again for the opportunity to speak to this important issue, and I would be happy to answer any questions. 


SSpencer on DSK4SPTVN1PROD with REPORTS
23 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

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

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

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

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

roman): 

TABLE OF CONTENTS 

Page 

1. Energy Conservation and Production Act, Public Law 94–385, as Amended . 23 

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

Amended ............................................................................................................... 41 

3. Energy Policy Act of 2005, Public Law 109–58, as Amended ........................... 48 

4. Energy Policy Act of 1992, Public Law 102–486, as Amended ......................... 49 

5. Energy Policy and Conservation Act, Public Law 94–163, as Amended ......... 54 

6. National Energy Conservation Policy Act, Public Law 95–619, as Amended . 60 

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

Public Law 101–73, as Amended ........................................................................ 67 

8. Title 40, United States Code ............................................................................... 68 

ENERGY CONSERVATION AND PRODUCTION 

ACT 

Public Law 94–385, as amended 

* * * * * * * 

TITLE III—ENERGY CONSERVATION 

STANDARDS FOR NEW BUILDINGS 

* * * * * * * 

DEFINITIONS 

SEC. 303. AS USED IN THIS TITLE 

* * * * * * * 

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

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

Federal agency. Such term shall include buildings built for the 

purpose of being leased by a Federal agency, and privatized 

military housing. 

* * * * * * * 

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

energy consumption objectives to be met without specification 

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

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

any necessary commentary. 

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

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

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

or other appropriate organizations.¿ 


SSpencer on DSK4SPTVN1PROD with REPORTS
24 

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

standards developed and updated through a consensus process 

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

by— 

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

legal successor, International Code Council, Inc.; 

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

Air-Conditioning Engineers; or 

(C) other appropriate organizations. 

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

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

Heating, Refrigerating, and Air-Conditioning Engineers. 

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

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

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

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

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

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

* * * * * * * 

øSEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES. 

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

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

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

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

State to revise such residential building code provisions to meet or 

exceed CABO Model Energy Code, 1992. 

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

ø(A) made after public notice and hearing; 

ø(B) in writing; 

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

upon the evidence presented at the hearing; and 

ø(D) available to the public. 

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

code regarding energy efficiency to meet or exceed CABO Model 

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

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

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

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

to the public. 

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

12 months after such revision, determine whether such revision 

would improve energy efficiency in residential buildings. The SecVerDate Sep 11 2014 03:01 Sep 15, 2015 Jkt 049010 PO 00000 Frm 00024 Fmt 6659 Sfmt 6602 E:\HR\OC\SR130.XXX SR130

SSpencer on DSK4SPTVN1PROD with REPORTS
25 

retary shall publish notice of such determination in the Federal 

Register. 

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

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

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

made such determination. 

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

made under subparagraph (B). 

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

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

shall include a demonstration that such State’s code provisions 

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

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

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

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

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

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

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

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

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

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

State’s commercial building code regarding energy efficiency meet 

or exceed such revised standard. 

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

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

in commercial buildings, State commercial building code provisions 

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

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

deadlines for the certification requirements under subsections (a) 

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

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

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

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

the design and construction of energy efficient buildings. 

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

shall provide incentive funding to States to implement the requirements of this section, and to improve and implement State residenVerDate Sep 11 2014 06:31 Sep 15, 2015 Jkt 049010 PO 00000 Frm 00025 Fmt 6659 Sfmt 6602 E:\HR\OC\SR130.XXX SR130

SSpencer on DSK4SPTVN1PROD with REPORTS
26 

tial and commercial building energy efficiency codes, including increasing and verifying compliance with such codes. In determining 

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

this subsection, the Secretary shall consider the actions proposed 

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

efficiency codes, and to promote building energy efficiency through 

the use of such codes. 

ø(2) Additional funding shall be provided under this subsection 

for implementation of a plan to achieve and document at least a 

90 percent rate of compliance with residential and commercial 

building energy efficiency codes, based on energy performance— 

ø(A) to a State that has adopted and is implementing, on a 

statewide basis— 

ø(i) a residential building energy efficiency code that 

meets or exceeds the requirements of the 2004 International Energy Conservation Code, or any succeeding 

version of that code that has received an affirmative determination from the Secretary under subsection (a)(5)(A); 

and 

ø(ii) a commercial building energy efficiency code that 

meets or exceeds the requirements of the ASHRAE Standard 90.1–2004, or any succeeding version of that standard 

that has received an affirmative determination from the 

Secretary under subsection (b)(2)(A); or 

ø(B) in a State in which there is no statewide energy code 

either for residential buildings or for commercial buildings, to 

a local government that has adopted and is implementing residential and commercial building energy efficiency codes, as described in subparagraph (A). 

ø(3) Of the amounts made available under this subsection, the 

Secretary may use $500,000 for each fiscal year to train State and 

local officials to implement codes described in paragraph (2). 

ø(4)(A) There are authorized to be appropriated to carry out this 

subsection— 

ø(i) $25,000,000 for each of fiscal years 2006 through 2010; 

and 

ø(ii) such sums as are necessary for fiscal year 2011 and 

each fiscal year thereafter. 

ø(B) Funding provided to States under paragraph (2) for each fiscal year shall not exceed one-half of the excess of funding under 

this subsection over $5,000,000 for the fiscal year.¿ 

SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES. 

(a) IN GENERAL.—The Secretary shall— 

(1) encourage and support the adoption of building energy 

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

or achieve equivalent or greater energy savings; and 

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

(b) STATE AND INDIAN TRIBE CERTIFICATION OF BUILDING ENERGY CODE UPDATES.— 

(1) REVIEW AND UPDATING OF CODES BY EACH STATE AND INDIAN TRIBE.— 

(A) IN GENERAL.—Not later than 2 years after the date on 

which a model building energy code is updated, each State 


SSpencer on DSK4SPTVN1PROD with REPORTS
27 

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

tribe, respectively. 

(B) DEMONSTRATION.—The certification shall include a 

demonstration of whether or not the energy savings for the 

code provisions that are in effect throughout the State or 

Indian tribal territory meet or exceed— 

(i) the energy savings of the updated model building 

energy code; or 

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

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

model building energy code is not updated by a target date 

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

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

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

has reviewed and updated the energy provisions of the 

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

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

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

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

Secretary shall— 

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

Indian tribe, respectively, meet the criteria specified in 

paragraph (1); and 

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

(c) IMPROVEMENTS IN COMPLIANCE WITH BUILDING ENERGY

CODES.— 

(1) REQUIREMENT.— 

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

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

tribe shall certify whether or not the State and Indian 

tribe, respectively, has— 

(i) achieved full compliance under paragraph (3) 

with the applicable certified State and Indian tribe 

building energy code or with the associated model 

building energy code; or 

(ii) made significant progress under paragraph (4) 

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

with the associated model building energy code. 

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

certifies progress toward achieving compliance, the State or 

Indian tribe shall repeat the certification until the State or 

Indian tribe certifies that the State or Indian tribe has 

achieved full compliance, respectively. 

(2) MEASUREMENT OF COMPLIANCE.—A certification under 

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

(A) independent inspections of a random sample of the 

buildings covered by the code in the preceding year; or 

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


SSpencer on DSK4SPTVN1PROD with REPORTS
28 

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

shall be considered to achieve full compliance under paragraph 

(1) if— 

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

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

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

or 

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

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

the preceding year, compared to a baseline of comparable 

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

of the estimated energy use of all buildings covered by this 

code during the preceding year. 

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

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

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

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

programs; and 

(B) has met the most recent target under subparagraph 

(A). 

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

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

Secretary shall— 

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

accurate measurement of compliance; and 

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

(d) STATES OR INDIAN TRIBES THAT DO NOT ACHIEVE COMPLIANCE.— 

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

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

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

meeting the requirements and submitting the certification; 

and 

(B) a plan for meeting the requirements and submitting 

the certification. 

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

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

be a consideration for Federal support authorized under this 

section for code adoption and compliance activities. 

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

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

support by meeting the certification requirements of subsections 

(b) and (c). 

(4) ANNUAL REPORTS BY SECRETARY.— 


SSpencer on DSK4SPTVN1PROD with REPORTS
29 

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

Congress, and publish in the Federal Register, a report 

on— 

(i) the status of model building energy codes; 

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

States and Indian tribes; 

(iii) implementation of this section; and 

(iv) improvements in energy savings over time as result of the targets established under section 307(b)(2). 

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

(i) upfront financial and construction costs, cost benefits and returns (using investment analysis), and lifetime energy use for buildings; 

(ii) resulting energy costs to individuals and businesses; and 

(iii) resulting overall annual building ownership and 

operating costs. 

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

Secretary shall provide technical assistance to States and Indian 

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

tribes— 

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

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

Indian tribes achieve equivalent or greater energy savings than 

the model building energy codes and targets; 

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

code; and 

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

efficient buildings. 

(f) AVAILABILITY OF INCENTIVE FUNDING.— 

(1) IN GENERAL—The Secretary shall provide incentive funding to States and Indian tribes— 

(A) to implement the requirements of this section; 

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

verifying compliance with the codes and training of State, 

tribal, and local building code officials to implement and 

enforce the codes; and 

(C) to promote building energy efficiency through the use 

of the codes. 

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

achieve and document full compliance with residential and 

commercial building energy codes under subsection (c)— 

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

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

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

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

under this section. 

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

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


SSpencer on DSK4SPTVN1PROD with REPORTS
30 

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

building code officials to implement and enforce codes described 

in paragraph (2). 

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

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

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

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

use as— 

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

local, tribal, or State governments; and 

(B) guidelines for energy-efficient building design. 

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

shall be designed— 

(A) to achieve substantial energy savings compared to the 

model building energy codes; and 

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

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

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

science experts from the National Laboratories and institutions of 

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

(1) code improvements that would require that buildings be 

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

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

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

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

(3) legislative options for increasing energy savings from 

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

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

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

307 supersedes or modifies the application of sections 321 through 

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

seq.). 

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

be appropriated to carry out this section and section 307 

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

* * * * * * * 

SEC. 305. FEDERAL BUILDING ENERGY EFFICIENCY STANDARDS. 

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

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

consulting with appropriate Federal agencies, CABO, ASHRAE, the 

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


SSpencer on DSK4SPTVN1PROD with REPORTS
31 

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

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

1 year after such rule is issued. 

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

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

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

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

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

contain, measures with regard to radon and other indoor air 

pollutants. 

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

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

building energy efficiency performance standards that require 

that— 

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

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

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

paragraph; and 

ø(II) sustainable design principles are applied to the 

siting, design, and construction of all new and replacement 

buildings; 

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

technologies are life-cycle cost-effective; and 

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

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

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

amendment, whether the revised standards established under this 

paragraph should be updated to reflect the amendment.¿ 

(3) REVISED FEDERAL BUILDING ENERGY EFFICIENCY PERFORM- ANCE STANDARDS; CERTIFICATION FOR GREEN BUILDINGS.— 

(A) REVISED FEDERAL BUILDING ENERGY EFFICIENCY PER- FORMANCE STANDARDS.— (i) IN GENERAL.—Not later than 1 year after the date of 

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

revised Federal building energy efficiency performance 

standards that require that— 


SSpencer on DSK4SPTVN1PROD with REPORTS
32 

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

(aa) meet or exceed the most recent revision of 

the International Energy Conservation Code (in 

the case of residential buildings) or ASHRAE 

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

Savings and Industrial Competitiveness Act of 

2015; and 

(bb) meet or exceed the energy provisions of State 

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

Standard 90.1, as applicable; 

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

with major renovations— 

(aa) the buildings be designed to achieve energy 

consumption levels that are at least 30 percent 

below the levels established in the version of the 

ASHRAE Standard or the International Energy 

Conservation Code, as appropriate, that is applied 

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

subparagraph (B); and 

(bb) sustainable design principles are applied to 

the location, siting, design, and construction of all 

new Federal buildings and replacement Federal 

buildings; 

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

water conservation technologies shall be applied to the 

extent that the technologies are life-cycle cost effective; 

and 

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

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

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

solar hot water heaters. 

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

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

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

the International Energy Conservation Code, as appropriate, 

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

the revisions, based on the energy savings and life-cycle cost-effectiveness of the revisions. 

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

budget request of the Federal agency for each fiscal year and 

each report submitted by the Federal agency under section 

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

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

* * * * * * * 


SSpencer on DSK4SPTVN1PROD with REPORTS
33 

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

Energy Independence and Security Act of 2007, the Secretary 

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

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

prospectus to Congress under section 3307 of title 40, 

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

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

for other buildings: 

ø(I) The buildings shall be designed so that the fossil fuel-generated energy consumption of the buildings 

is reduced, as compared with such energy consumption 

by a similar building in fiscal year 2003 (as measured 

by Commercial Buildings Energy Consumption Survey 

or Residential Energy Consumption Survey data from 

the Energy Information Agency), by the percentage 

specified in the following table: 

øFiscal Year Percentage Reduction 

ø2010 55 

ø2015 65 

ø2020 80 

ø2025 90 

ø2030 100 

ø(II) Upon petition by an agency subject to this subparagraph, the Secretary may adjust the applicable 

numeric requirement under subclause (I) downward 

with respect to a specific building, if the head of the 

agency designing the building certifies in writing that 

meeting such requirement would be technically impracticable in light of the agency’s specified functional 

needs for that building and the Secretary concurs with 

the agency’s conclusion. This subclause shall not apply 

to the General Services Administration. 

ø(III) Sustainable design principles shall be applied 

to the siting, design, and construction of such buildings. Not later than 90 days after the date of enactment of the Energy Independence and Security Act of 

2007, the Secretary, after reviewing the findings of the 

Federal Director under section 436(h) of that Act, in 

consultation with the Administrator of General Services, and in consultation with the Secretary of Defense 

for considerations relating to those facilities under the 

custody and control of the Department of Defense, 

shall identify a certification system and level for green 

buildings that the Secretary determines to be the most 

likely to encourage a comprehensive and environmentally-sound approach to certification of green 

buildings. The identification of the certification system 

and level shall be based on a review of the Federal Director’s findings under section 436(h) of the Energy 

Independence and Security Act of 2007 and the criVerDate Sep 11 2014 06:49 Sep 15, 2015 Jkt 049010 PO 00000 Frm 00033 Fmt 6659 Sfmt 6602 E:\HR\OC\SR130.XXX SR130

SSpencer on DSK4SPTVN1PROD with REPORTS
34 

teria specified in clause (iii), shall identify the highest 

level the Secretary determines is appropriate above 

the minimum level required for certification under the 

system selected, and shall achieve results at least 

comparable to the system used by and highest level 

referenced by the General Services Administration as 

of the date of enactment of the Energy Independence 

and Security Act of 2007. Within 90 days of the completion of each study required by clause (iv), the Secretary, in consultation with the Administrator of General Services, and in consultation with the Secretary 

of Defense for considerations relating to those facilities 

under the custody and control of the Department of 

Defense, shall review and update the certification system and level, taking into account the conclusions of 

such study. 

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

significant opportunities for substantial improvements in 

energy efficiency. 

ø(iii) In identifying the green building certification system and level, the Secretary shall take into consideration— 

ø(I) the ability and availability of assessors and 

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

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

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

revised through a consensus-based process; 

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

for a high-performance green building, which shall 

give credit for promoting— 

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

ø(bb) use of renewable energy sources; 

ø(cc) improved indoor environmental quality 

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

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

ø(V) national recognition within the building industry. 

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

section 436 of the Energy Independence and Security Act 

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

green building certification systems and levels, taking into 

account the criteria listed in clause (iii). 


SSpencer on DSK4SPTVN1PROD with REPORTS
35 

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

to develop internal certification processes, using certified 

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

certification system and level identified under clause 

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

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

least 5 percent of the total number of buildings certified 

annually by the agency. 

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

Secretary of Defense, after consultation with the Secretary 

may, through rulemaking, develop alternative criteria to 

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

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

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

the technologies are life-cycle cost-effective.¿ 

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

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

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

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

the Administrator of General Services, and in consultation 

with the Secretary of Defense relating to those facilities 

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

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

and environmentally sound approach to certification of 

green buildings. 

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

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

clause (v). 

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

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

each system; 

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

technologies are fair and neutral (meaning that such 

criteria are based on an objective assessment of relevant technical data), do not prohibit, disfavor, or discriminate against selection based on technically inadequate information to inform human or environmental 


SSpencer on DSK4SPTVN1PROD with REPORTS
36 

risk, and are expressed to prefer performance measures 

whenever performance measures may reasonably be 

used in lieu of prescriptive measures; and 

(III) use environmental and health criteria that are 

based on risk assessment methodology that is generally 

accepted by the applicable scientific disciplines. 

(v) CONSIDERATIONS.—In determining the green building 

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

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

this subparagraph; 

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

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

revised through a consensus-based process; 

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

a high-performance green building, which shall give 

credit for promoting— 

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

(bb) use of renewable energy sources; 

(cc) improved indoor environmental quality 

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

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

(V) national recognition within the building industry. 

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

compare private sector green building certification systems, 

taking into account— 

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

(II) the identification made by the Federal Director 

under section 436(h) of the Energy Independence and 

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

(vii) EXCLUSIONS.— 

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

of clause (v), the Secretary shall— 

(aa) identify the portions of the system, whether 

prerequisites, credits, points, or otherwise, that 

meet the review criteria of clause (v); 

(bb) determine the portions of the system that 

are suitable for use; and 

(cc) exclude all other portions of the system from 

identification and use. 

(II) ENTIRE SYSTEMS.—The Secretary shall exclude 

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


SSpencer on DSK4SPTVN1PROD with REPORTS
37 

(aa) impedes the integrated use of the system; 

(bb) creates disparate review criteria or unequal 

point access for competing materials; or 

(cc) increases agency costs of the use. 

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

lieu of certification by certification entities identified under 

clause (ii). 

(ix) PRIVATIZED MILITARY HOUSING.—With respect to 

privatized military housing, the Secretary of Defense, after 

consultation with the Secretary may, through rulemaking, 

develop alternative certification systems and levels than the 

systems and levels identified under clause (ii) that achieve 

an equivalent result in terms of energy savings, sustainable 

design, and green building performance. 

(x) WATER CONSERVATION TECHNOLOGIES.—In addition to 

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

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

cost-effective. 

(xi) EFFECTIVE DATE.— (I) DETERMINATIONS MADE AFTER DECEMBER 31, 2015.—The amendments made by section 432(b)(1)(C) of 

Energy Savings and Industrial Competitiveness Act of 

2015 shall apply to any determination made by a Federal agency after December 31, 2015. 

(II) DETERMINATIONS MADE ON OR BEFORE DECEMBER 31, 2015.—This subparagraph (as in effect on the 

day before the date of enactment of Energy Savings 

and Industrial Competitiveness Act of 2015) shall 

apply to any use of a certification system for green commercial and residential buildings by a Federal agency 

on or before December 31, 2015. 

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

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

basis for any substantive difference between the Federal building 

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

and the appropriate øvoluntary building energy code¿ model building energy code. ø(c) PERIODIC REVIEW.—The Secretary shall periodically, but not 

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

standards established under this section and shall, if significant 

energy savings would result, upgrade such standards to include all 

new energy efficiency and renewable energy measures that are 

technologically feasible and economically justified.¿ 

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

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

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

(c) PERIODIC REVIEW.—The Secretary shall— 

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

standards established under this section; and 


SSpencer on DSK4SPTVN1PROD with REPORTS
38 

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

upgrade the standards to include all new energy efficiency and 

renewable energy measures that are technologically feasible and 

economically justified. 

* * * * * * * 

øSEC. 307. SUPPORT FOR VOLUNTARY BUILDING ENERGY CODES. 

ø(a) IN GENERAL.—Not later than 1 year after the date of the enactment of the Energy Policy Act of 1992, the Secretary, after consulting with the Secretary of Housing and Urban Development, the 

Secretary of Veterans Affairs, other appropriate Federal agencies, 

CABO, ASHRAE, the National Conference of States on Building 

Codes and Standards, and any other appropriate building codes 

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

buildings. Such support shall include— 

ø(1) a compilation of data and other information regarding 

building energy efficiency standards and codes in the possession of the Federal Government, State and local governments, 

and industry organizations; 

ø(2) assistance in improving the technical basis for such 

standards and codes; 

ø(3) assistance in determining the cost-effectiveness and the 

technical feasibility of the energy efficiency measures included 

in such standards and codes; and 

ø(4) assistance in identifying appropriate measures with regard to radon and other indoor air pollutants. 

ø(b) REVIEW.—The Secretary shall periodically review the technical and economic basis of voluntary building energy codes and, 

based upon ongoing research activities— 

ø(1) recommend amendments to such codes including measures with regard to radon and other indoor air pollutants; 

ø(2) seek adoption of all technologically feasible and economically justified energy efficiency measures; and 

ø(3) otherwise participate in any industry process for review 

and modification of such codes.¿ 

SEC. 307. SUPPORT FOR MODEL BUILDING ENERGY CODES. 

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

model building energy codes. 

(b) TARGETS.— 

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

the model building energy codes to enable the achievement of 

aggregate energy savings targets established under paragraph 

(2). 

(2) TARGETS.— 

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

Indian tribes, local governments, nationally recognized code 

and standards developers, and other interested parties to 

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

achieve the purposes of this section. 

(B) SEPARATE TARGETS.—The Secretary may establish 

separate targets for commercial and residential buildings. 


SSpencer on DSK4SPTVN1PROD with REPORTS
39 

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

buildings and ASHRAE Standard 90.1–2010 for commercial buildings. 

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

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

code and standards developers at a level that— 

(I) is at the maximum level of energy efficiency 

that is technologically feasible and life-cycle cost 

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

(II) is higher than the preceding target; and 

(III) promotes the achievement of commercial 

and residential high-performance buildings 

through high performance energy efficiency (within 

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

17061)). 

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

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

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

prior to the applicable year, the Secretary may set a 

later target year for any of the model building energy 

codes described in subparagraph (A) if the Secretary 

determines that a target cannot be met. 

(iv) SMALL BUSINESS.—When establishing targets 

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

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

(3) APPLIANCE STANDARDS AND OTHER FACTORS AFFECTING

BUILDING ENERGY USE.—In establishing building code targets 

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

targets in recognition of potential savings and costs relating 

to— 

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

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

(C) equipment improvements for heating, cooling, and 

ventilation systems; 

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

(E) other technologies, practices, and building systems 

that the Secretary considers appropriate regarding building 

plug load and other energy uses. 

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

shall consider the economic feasibility of achieving the proposed 

targets established under this section and the potential costs 

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


SSpencer on DSK4SPTVN1PROD with REPORTS
40 

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

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

and standard development organizations consistent with the 

goals of this section. 

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

by the organizations, technical assistance in— 

(A) evaluating code or standards proposals or revisions; 

(B) building energy analysis and design tools; 

(C) building demonstrations; 

(D) developing definitions of energy use intensity and 

building types for use in model building energy codes to 

evaluate the efficiency impacts of the model building energy 

codes; 

(E) performance-based standards; 

(F) evaluating economic considerations under subsection 

(b)(4); and 

(G) developing model building energy codes by Indian 

tribes in accordance with tribal law. 

(3) AMENDMENT PROPOSALS.—The Secretary may submit 

timely model building energy code amendment proposals to the 

model building energy code-setting and standard development 

organizations, with supporting evidence, sufficient to enable the 

model building energy codes to meet the targets established 

under subsection (b)(2). 

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

input assumptions and data) used by the Secretary to estimate 

the energy savings of code or standard proposals and revisions. 

(d) DETERMINATION.— 

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

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

the revision, and a final determination not later than 15 

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

(A) improve energy efficiency in buildings compared to 

the existing model building energy code; and 

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

(2) CODES OR STANDARDS NOT MEETING TARGETS.— 

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

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

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

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

code that meets the targets and with supporting evidence, 

taking into consideration— 

(i) whether the modified code is technically feasible 

and life-cycle cost effective; 

(ii) available appliances, technologies, materials, and 

construction practices; and 


SSpencer on DSK4SPTVN1PROD with REPORTS
41 

(iii) the economic considerations under subsection 

(b)(4). 

(B) INCORPORATION OF CHANGES.— (i) IN GENERAL.—On receipt of the proposed changes, 

the model building energy code or standard developer 

shall have an additional 270 days to accept or reject 

the proposed changes of the Secretary to the model 

building energy code or standard for the Secretary to 

make a final determination. 

(ii) FINAL DETERMINATION.—A final determination 

under paragraph (1) shall be on the modified model 

building energy code or standard. 

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

shall— 

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

any supporting modeling, data, assumptions, protocols, and 

cost-benefit analysis, including return on investment; and 

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

supporting analysis and determinations under this section. 

(f) VOLUNTARY CODES AND STANDARDS.—Notwithstanding any 

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

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

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

* * * * * * * 

ENERGY INDEPENDENCE AND SECURITY ACT 

OF 2007 

Public Law 110–140, as amended 

* * * * * * * 

SEC. 436. HIGH PERFORMANCE GREEN FEDERAL BUILDINGS. 

* * * * * * * 

(h) IDENTIFICATION OF CERTIFICATION øSYSTEM¿ SYSTEMS.— 

ø(1) In general.—For the purpose of this section, not later 

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

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

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

system that the Director determines to be the most likely to 

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

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

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

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

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

(1) shall be based on— 


SSpencer on DSK4SPTVN1PROD with REPORTS
42 

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

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

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

(A) an ongoing review provided to the Secretary pursuant 

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

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

and evaluate standards; and 

(ii) allow any developer or administrator of a rating 

system or certification system to be included in the review; 

(B) the ability and availability of assessors and auditors 

to independently verify the criteria and measurement of 

metrics at the scale necessary to implement this subtitle; 

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

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

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

high-performance green building, which shall give credit 

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

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

energy sources; (iii) improved indoor environmental quality 

through enhanced indoor air quality, thermal comfort, 

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

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

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

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

(G) a finding that, for all credits addressing grown, harvested, or mined materials, the system does not discriminate against the use of domestic products that have obtained certifications of responsible sourcing; and 

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

* * * * * * * 

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

INDUSTRY PROGRAM. 

(a) DEFINITIONS.—In this section: 

* * * * * * * 

(3) ENERGY SERVICE PROVIDER.—The term ‘‘energy service 

provider’’ means any business providing technology or services 

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

or load management of a manufacturing site or other industrial 

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

under a utility energy service project. 

ø(3)¿(4) FEEDSTOCK.—The term ‘‘feedstock’’ means the raw 

material supplied for use in manufacturing, chemical, and biological processes. 


SSpencer on DSK4SPTVN1PROD with REPORTS
43 

ø(4)¿(5) PARTNERSHIP.—The term ‘‘partnership’’ means an 

energy efficiency partnership established under subsection 

(c)(1)(A). 

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

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

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

develop, and promote the use of new materials processes, technologies, and techniques to optimize energy efficiency and the economic competitiveness of the United States’ industrial and commercial sectors. 

* * * * * * * 

(e) INSTITUTION OF HIGHER EDUCATION-BASED INDUSTRIAL RESEARCH AND ASSESSMENT CENTERS.—øThe Secretary¿ 

(1) IN GENERAL.—The Secretary shall provide funding to institution of higher education-based industrial research and assessment centers, whose purpose shall be— 

ø(1)¿(A) to identify opportunities for optimizing energy 

efficiency and environmental performance, including assessments of sustainable manufacturing goals and the implementation of information technology advancements for 

supply chain analysis, logistics, system monitoring, industrial and manufacturing processes, and other purposes; 

ø(2)¿(B) to promote applications of emerging concepts 

and technologies in small- and medium-sized manufacturers; 

ø(3)¿(C) to promote research and development for the 

use of alternative energy sources to supply heat, power, 

and new feedstocks for energy-intensive industries; 

ø(4)¿(D) to coordinate with appropriate Federal and 

State research offices, and provide a clearinghouse for industrial process and energy efficiency technical assistance 

resources; and 

ø(5)¿(E) to coordinate with State-accredited technical 

training centers and community colleges, while ensuring 

appropriate services to all regions of the United States. 

(2) COORDINATION.—To increase the value and capabilities of 

the industrial research and assessment centers, the centers 

shall— 

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

Technology; 

(B) coordinate with the Building Technologies Program 

of the Department of Energy to provide building assessment 

services to manufacturers; 

(C) increase partnerships with the National Laboratories 

of the Department of Energy to leverage the expertise and 

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

(D) increase partnerships with energy service providers 

and technology providers to leverage private sector expertise 

and accelerate deployment of new and existing technologies 


SSpencer on DSK4SPTVN1PROD with REPORTS
44 

and processes for energy efficiency, power factor, and load 

management; 

(E) identify opportunities for reducing greenhouse gas 

emissions; and 

(F) promote sustainable manufacturing practices for 

small- and medium-sized manufacturers. 

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

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

available; and 

(B) coordination activities by each industrial research 

and assessment center to leverage efforts with— 

(i) Federal and State efforts; 

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

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

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

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

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

industrial research and assessment centers. 

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

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

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

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

small business concerns for loans under the Small Business Act 

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

(6) ADVANCED MANUFACTURING STEERING COMMITTEE.—The 

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

* * * * * * * 

SEC. 453. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS. 

* * * * * * * 

(b) VOLUNTARY NATIONAL INFORMATION PROGRAM.— 

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

Environmental Protection Agency shall, after consulting with 

information technology industry and other interested parties, 

initiate a voluntary national information program for those 

types of data centers and data center equipment and facilities 

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


SSpencer on DSK4SPTVN1PROD with REPORTS
45 

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

shall— 

(A) address data center efficiency holistically, reflecting 

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

(B) consider prior work and studies undertaken in this 

area, including by the Environmental Protection Agency 

and the Department of Energy; 

(C) consistent with the objectives described in paragraph 

(1), determine the type of data center and data H. R. 6— 

147 center equipment and facilities to be covered under 

the program; 

(D) produce specifications, measurements, best practices, 

and benchmarks that will enable data center operators to 

make more informed decisions about the energy efficiency 

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

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

devices, and other information technology equipment; 

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

provided that no modification shall be required of a 

standard then in effect under the Energy Policy and 

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

power-conditioning product; 

(iii) energy savings from the adoption of software 

and data management techniques; and 

(iv) other factors determined by øthe organization¿ 

an organization described in subsection (c); 

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

function, as well as other appropriate characteristics; 

(F) advance the design and implementation of efficiency 

technologies to the maximum extent economically practical; 

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

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

(H) publish the information described in subparagraph 

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

publications, the Internet, or other mechanisms, that will 

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

and data center equipment and facilities. 

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

shall be developed in consultation with and coordinated by the 

organization described in subsection (c) according to commonly 

accepted procedures for the development of specifications, 

measurements, and benchmarks.¿ 

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

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


SSpencer on DSK4SPTVN1PROD with REPORTS
46 

ø(2) REQUIREMENTS.—The organization designated under 

paragraph (1), whether preexisting or formed specifically for 

the purposes of subsection (b), shall— 

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

energy efficiency and in the development, operation, and 

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

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

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

interest group with applicable expertise in any of the areas 

listed in paragraph (1); 

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

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

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

transmission of the information to the Secretary and the 

Administrator for consideration under subsection (d). 

ø(d) MEASUREMENTS AND SPECIFICATIONS.— 

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

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

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

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

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

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

104–113). 

ø(3) DETERMINATION OF IMPRACTICABILITY.—A determination 

that a specification, measurement, or benchmark described in 

subsection (b) is impractical may include consideration of the 

maximum efficiency that is technologically feasible and economically justified. 

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

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

described in subsection (b); and 

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

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

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

national information program for data centers consistent with the 

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

and the Administrator shall, after consultation with the National 

Institute of Standards and Technology and not later than 2 years 


SSpencer on DSK4SPTVN1PROD with REPORTS
47 

after the determination, develop and implement the program under 

subsection (b). 

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

the Administrator, or the data center efficiency organization shall 

not disclose any proprietary information or trade secrets provided 

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

section or the program established under this section.¿ 

(c) STAKEHOLDER INVOLVEMENT.— 

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

carry out subsection (b) in consultation with the information 

technology industry and other key stakeholders, with the goal of 

producing results that accurately reflect the best knowledge in 

the most pertinent domains. 

(2) CONSIDERATIONS.—In carrying out consultation described 

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

particular attention to organizations that— 

(A) have members with expertise in energy efficiency and 

in the development, operation, and functionality of data 

centers, information technology equipment, and software, 

including representatives of hardware manufacturers, data 

center operators, and facility managers; 

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

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

higher education, research institution, industry association, 

company, or public interest group with applicable expertise; 

(C) follow— 

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

(ii) accredited standards development processes; or 

(D) have a mission to promote energy efficiency for data 

centers and information technology. 

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

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

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

Star Program, and other efficiency programs of the Department of 

Energy or the Environmental Protection Agency. 

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

Energy Policy Modernization Act of 2015, shall make available to 

the public an update to the report submitted to Congress pursuant 

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

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

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

(1) a comparison and gap analysis of the estimates and projections contained in the original report with new data regarding the period from 2007 through 2014; 

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

public and private sectors; 

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

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

center energy usage; 


SSpencer on DSK4SPTVN1PROD with REPORTS
48 

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

(5) updated projections and recommendations for best practices through fiscal year 2020. 

(f) DATA CENTER ENERGY PRACTITIONER PROGRAM.— 

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

stakeholders and the Director of the Office of Management and 

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

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

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

by energy practitioners certified pursuant to the program, whenever practicable using certified practitioners employed by the 

agency. 

(g) OPEN DATA INITIATIVE.— 

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

stakeholders and the Director of the Office of Management and 

Budget, shall establish an open data initiative for Federal data 

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

available and accessible in a manner that encourages further 

data center innovation, optimization, and consolidation. 

(2) CONSIDERATION.—In establishing the initiative under 

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

Data Center Maturity Model. 

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

data center energy and water efficiency. 

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

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

center (including equipment and facilities). 

(j) PROTECTION OF PROPRIETARY INFORMATION.—The Secretary 

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

purposes of carrying out this section or the programs and initiatives 

established under this section. 

ENERGY POLICY ACT OF 2005 

Public Law 1–58, as amended 

* * * * * * * 

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

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

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

unit of physical output in an industrial process. 

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

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


SSpencer on DSK4SPTVN1PROD with REPORTS
49 

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

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

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

2016. 

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

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

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

to achieve the energy efficiency goals specified in the agreement 

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

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

goals. 

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

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

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

this section; and 

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

* * * * * * * 

ENERGY POLICY ACT OF 1992 

Public Law 102–486, as amended 

* * * * * * * 

øSEC. 131. ENERGY EFFICIENCY IN INDUSTRIAL FACILITIES. 

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

subsection, an industry association shall establish a voluntary 

energy efficiency improvement target program. 

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

project proposals and provide annual grants on a competitive 

basis. In evaluating grant proposals under this subsection, the 

Secretary shall consider— 

ø(A) potential energy savings; 

ø(B) potential environmental benefits; 

ø(C) the degree of cost sharing; 

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

ø(E) the level of industry involvement; 

ø(F) estimated project cost-effectiveness; and 

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

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

this subsection may include the following: 

ø(A) Workshops. 

ø(B) Training seminars. 


SSpencer on DSK4SPTVN1PROD with REPORTS
50 

ø(C) Handbooks. 

ø(D) Newsletters. 

ø(E) Data bases. 

ø(F) Other activities approved by the Secretary. 

ø(4) LIMITATION ON COST SHARING.—Grants provided under this subsection shall not exceed $250,000 and each grant shall 

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

the grant is made. 

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

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

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

energy efficiency. 

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

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

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

øSEC. 132. PROCESS ORIENTED INDUSTRIAL ENERGY EFFICIENCY. 

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

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

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

industries specified in Standard Industrial Classification Codes 

20 through 39 (or successor classification codes); 

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

means— 

ø(A) the identification of opportunities in the production 

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

ø(i) improving energy efficiency; 

ø(ii) reducing environmental impact; and 

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

ø(B) the identification of opportunities for improving the 

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

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

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

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

ø(b) GRANT PROGRAM.— 

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

are made available for such purpose, make grants to States 


SSpencer on DSK4SPTVN1PROD with REPORTS
51 

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

ø(A) To promote, through appropriate institutions such 

as universities, nonprofit organizations, State and local 

government entities, technical centers, utilities, and trade 

organizations, the use of energy-efficient technologies in 

covered industries. 

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

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

industrial assessments and to encourage the use of such 

trained assessors. 

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

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

paragraph (1). 

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

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

eligibility criteria for grants made pursuant to this subsection. 

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

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

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

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

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

resources planning and investments in conservation and 

demand management); and 

ø(B) by legislation or regulation— 

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

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

ø(I) process-oriented industrial assessments; 

and 

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

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

subsection shall be allocated each fiscal year among States 

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

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

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

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

such States. 

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

may continue to be renewed after 2 consecutive fiscal years 

during which a State receives a grant under this subsection, 

subject to the availability of funds, if— 


SSpencer on DSK4SPTVN1PROD with REPORTS
52 

ø(A) the Secretary determines that the funds made 

available to the State during the previous 2 years were 

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

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

the Secretary, utility participation in programs established 

pursuant to this subsection. 

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

shall, to the extent practicable, coordinate such functions with 

activities and programs conducted by the Energy Analysis and 

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

Standards and Technology. 

ø(c) OTHER FEDERAL ASSISTANCE.— 

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

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

as appropriate, update criteria for conducting process-oriented 

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

criteria shall be made available to State and local government, 

public utility commissions, utilities, representatives of affected 

process-oriented industries, and other interested parties. 

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

directory of organizations offering industrial energy efficiency 

assessments, technologies, and services consistent with the 

purposes of this section. Such directory shall be made available 

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

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

assistance programs. 

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

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

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

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

purposes of this section.¿ 

øSEC. 133. INDUSTRIAL INSULATION AND AUDIT GUIDELINES. 

ø(a) VOLUNTARY GUIDELINES FOR ENERGY EFFICIENCY AUDITING

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

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

insulation industry, shall establish voluntary guidelines for— 

ø(1) the conduct of energy efficiency audits of industrial facilities to identify cost-effective opportunities to increase energy efficiency; and 

ø(2) the installation of insulation to achieve cost-effective increases in energy efficiency in industrial facilities. 

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

shall conduct a program of educational and technical assistance to 


SSpencer on DSK4SPTVN1PROD with REPORTS
53 

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

* * * * * * * 

SEC. 2101. GENERAL IMPROVED ENERGY EFFICIENCY. 

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

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

cost effective technologies to improve energy efficiency and increase 

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

sectors. Such program shall include a broad range of technological 

approaches, and shall include field demonstrations of sufficient 

scale and number to prove technical and economic viability to meet 

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

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

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

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

Such program shall also include the activities conducted pursuant 

to the Steel and Aluminum Energy Conservation and Technology 

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

1990 (Public Law 101–425). 

* * * * * * * 

øSEC. 2103. PULP AND PAPER. 

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

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

advanced pulp and paper technologies. Such program shall include 

activities on energy generation technologies, boilers, combustion 

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

technologies that can improve the energy efficiency of, and reduce 

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

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

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

* * * * * * * 

øSEC. 2107. IMPROVING EFFICIENCY IN ENERGY INTENSIVE INDUSTRIES. 

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

sections 3001 and 3002 of this Act, shall— 

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

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

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

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

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


SSpencer on DSK4SPTVN1PROD with REPORTS
54 

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

ventures. 

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

and demonstrate changes to industrial processes that will result in 

improved energy efficiency and productivity. The joint ventures 

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

the principal objective of the joint venture. 

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

ventures under this section, the Secretary shall consider— 

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

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

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

and industrial processes that would benefit from the project.¿ 

* * * * * * * 

ENERGY POLICY AND CONSERVATION ACT 

Public Law 94–163, as amended 

* * * * * * * 

ENERGY STAR PROGRAM 

SEC. 324a. (a) IN GENERAL.— * * * 

* * * * * * * 

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

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

of consumer, home, and office electronic products for program 

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

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

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

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

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

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

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

program partner is found to have violated program requireVerDate Sep 11 2014 03:01 Sep 15, 2015 Jkt 049010 PO 00000 Frm 00054 Fmt 6659 Sfmt 6603 E:\HR\OC\SR130.XXX SR130

SSpencer on DSK4SPTVN1PROD with REPORTS
55 

ments with respect to at least 2 separate models during a 

2-year period. 

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

under subparagraph (A) shall cease if the program partner 

complies with all Energy Star program requirements for a 

period of at least 3 years. 

* * * * * * * 

SEC. 324B. SUPPLY STAR PROGRAM. 

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

Energy a Supply Star program to identify and promote practices, 

recognize companies, and, as appropriate, recognize products that 

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

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

subsection (a), the Secretary shall— 

(1) consult with other appropriate agencies; and 

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

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

in subsection (a), the Secretary shall— 

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

program as the preferred practices, companies, and products in 

the marketplace for maximizing supply chain efficiency; 

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

Supply Star program; 

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

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

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

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

chain efficiency; 

(6) work with domestic and international organizations to 

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

calculators, and databases; and 

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

(A) developing and sharing best practices; and 

(B) providing opportunities to benchmark supply chain 

efficiency. 

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

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

Secretary shall consider energy consumption and resource use 

throughout the entire lifecycle of a product, including production, 

transport, packaging, use, and disposal. 

(e) GRANTS AND INCENTIVES.— 

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

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

determined by the Secretary, for the purposes of— 

(A) studying supply chain energy resource efficiency; and 

(B) demonstrating and achieving reductions in the energy 

resource consumption of commercial products through 


SSpencer on DSK4SPTVN1PROD with REPORTS
56 

changes and improvements to the production supply and 

distribution chain of the products. 

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

Star Program. 

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

practices, and tools for improving supply chain efficiency. 

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

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

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

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

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

of fiscal years 2015 through 2024. 

* * * * * * * 

REQUIREMENTS OF MANUFACTURERS 

SEC. 326. (a) IN GENERAL.— * * * 

* * * * * * * 

(b) NOTIFICATION.—(1) Each manufacturer of a covered product 

to which a rule under section 324 applies shall notify the Secretary 

or the Commission— 

(A) not later than 60 days after the date such rule takes effect, of the models in current production (and starting serial 

numbers of those models) to which such rule applies; and 

(B) prior to commencement of production, of all models subsequently produced (and starting serial numbers of those models) to which such rule applies. 

(2) If requested by the Secretary or Commission, the manufacturer of a covered product to which a rule under section 324 applies 

shall provide, within 30 days of the date of the request, the data 

from which the information included on the label and required by 

the rule was derived. Data shall be kept on file by the manufacturer for a period specified in the rule. 

(3) When requested— 

(A) by the Secretary for purposes of ascertaining whether a 

product subject to a standard established in or prescribed 

under section 325 is in compliance with that standard, or 

(B) by the Commission for purposes of ascertaining whether 

the information set out on a label of a product, as required 

under section 324, is accurate, each manufacturer of such a 

product shall supply at his expense a reasonable number of 

such covered products to any laboratory designated by the Secretary or the Commission, as the case may be. Any reasonable 

charge levied by the laboratory for such testing shall be borne 

by the United States, if and to the extent provided in appropriation Acts. 

(4) Each manufacturer of a covered product to which a rule 

under section 324 applies shall annually, at a time specified by the 

Commission, supply to the Commission relevant data respecting 

energy consumption or water use developed in accordance with the 

test procedures applicable to such product under section 323. 


SSpencer on DSK4SPTVN1PROD with REPORTS
57 

(5) A rule under section 323, 324, or 325 may require the manufacturer or his agent to permit a representative designated by the 

Commission or the Secretary to observe any testing required by 

this part and inspect the results of such testing. 

(6) VOLUNTARY VERIFICATION PROGRAMS FOR AIR CONDITIONING, 

FURNACE, BOILER, HEAT PUMP, AND WATER HEATER PRODUCTS.— 

(A) RELIANCE ON VOLUNTARY PROGRAMS.—For the purpose of 

verifying compliance with energy conservation standards and 

Energy Star specifications established under sections 324A, 325, 

and 342 for covered products described in paragraphs (3), (4), 

(5), (9), and (11) of section 322(a) and covered equipment described in subparagraphs (B), (C), (D), (F), (I), (J), and (K) of 

section 340(1), the Secretary and the Administrator of the Environmental Protection Agency shall rely on voluntary verification 

programs that are recognized by the Secretary in accordance 

with subparagraph (B). 

(B) RECOGNITION OF VOLUNTARY VERIFICATION PROGRAMS.— 

(i) IN GENERAL.—Not later than 180 days after the date 

of enactment of this paragraph, the Secretary and the Administrator of the Environmental Protection Agency shall 

initiate a negotiated rulemaking in accordance with subchapter III of chapter 5 of title 5, United States Code (commonly known as the ‘‘Negotiated Rulemaking Act of 1990’’) 

to develop criteria that have consensus support for achieving recognition by the Secretary as an approved voluntary 

verification program. 

(ii) MINIMUM REQUIREMENTS.—The criteria developed 

under clause (i) shall, at a minimum, ensure that the voluntary verification program— 

(I) is nationally recognized; 

(II) satisfies any applicable elements of— 

(aa) International Organization for Standardization standard numbered 17025; and 

(bb) any other relevant International Organization for Standardization standards identified and 

agreed to through the negotiated rulemaking under 

clause (i); 

(III) at least annually tests products following the 

test procedures established under this title to verify the 

certified rating of a representative sample of products 

and equipment within the scope of the program; 

(IV) maintains a publicly available list of all certified products and equipment and their certified ratings; 

(V) requires the changing of the performance rating 

or removal of the product or equipment from the program if testing determines that the performance rating 

does not meet the levels the manufacturer has certified 

to the Secretary; 

(VI) requires the qualification of new participants in 

the program through testing and production of test reports; 

(VII) allows for challenge testing of products and 

equipment within the scope of the program; 


SSpencer on DSK4SPTVN1PROD with REPORTS
58 

(VIII) requires program participants to certify the 

performance rating of all covered products and equipment within the scope of the program for the covered 

product or equipment; 

(IX) provides to the Secretary— 

(aa) an annual report of all test results, the contents of which shall be determined through the negotiated rulemaking process under clause (i); 

(bb) prompt notification when program testing 

results in— 

(AA) the rerating of the performance rating 

of a product or equipment; or 

(BB) the delisting of a product or equipment; and 

(cc) test reports, on the request of the Secretary 

or the Administrator of the Environmental Protection Agency, that note any instructions specified by 

the manufacturer or the representative of the manufacturer for the purpose of conducting the 

verification testing, to be exempted from disclosure 

under section 552(b)(4) of title 5, United States 

Code (commonly known as the ‘‘Freedom of Information Act’’); and 

(X) satisfies any additional requirements or standards that the Secretary and Administrator of the Environmental Protection Agency shall establish consistent 

with this subparagraph. 

(iii) REVISION OF CRITERIA.— (I) IN GENERAL.—The Secretary and the Administrator of the Environmental Protection Agency may revise the criteria established under clause (ii) by initiating— 

(aa) a notice of proposed rulemaking in accordance with section 553(b) of title 5, United States 

Code, on publication of a determination in the 

Federal Register that revisions to the criteria are 

necessary; or 

(bb) a direct final rule in accordance with section 553(b)(3)(B) of title 5, United States Code, on 

publication of a determination in the Federal Register that revisions to the criteria are necessary 

and that substantive opposition to the proposed revisions is not expected. 

(II) EFFECT OF DIRECT FINAL RULE.— 

(aa) FULL FORCE AND EFFECT.—If the Secretary 

does not receive adversarial comments during the 

30-day period following publication of the determination in the Federal Register under subclause 

(I)(bb), the direct final rule shall have full force 

and effect. 

(bb) WITHDRAWAL.—If the Secretary receives adversarial comments during the 30-day period following publication of the determination in the Federal Register under subclause (I)(bb), the Secretary 

shall withdraw the direct final rule and publish a 


SSpencer on DSK4SPTVN1PROD with REPORTS
59 

notice of proposed rulemaking in accordance with 

subclause (I)(aa). 

(C) ADMINISTRATION.— 

(i) IN GENERAL.—The Secretary and the Administrator of 

the Environmental Protection Agency shall not require— 

(I) manufacturers to participate in a voluntary 

verification program described in subparagraph (A); or 

(II) participating manufacturers to provide information that can be obtained through a voluntary 

verification program described in subparagraph (A). 

(ii) LIST OF COVERED PRODUCTS.—The Secretary or the 

Administrator of the Environmental Protection Agency may 

maintain a publicly available list of covered products and 

equipment certified under this section that distinguishes between— 

(I) covered products and equipment certified by a voluntary verification program described in subparagraph 

(A); and 

(II) products not certified by a voluntary verification 

program described in subparagraph (A). 

(iii) PERIODIC VERIFICATION TESTING.—The Secretary— 

(I) shall not subject products or equipment that are 

certified under a voluntary verification program described in subparagraph (A) to periodic verification 

testing that verifies the accuracy of the certified performance rating of the products or equipment; but 

(II) may test products or equipment described in subclause (I) if the testing is necessary— 

(aa) to assess the overall performance of a voluntary verification program; 

(bb) to address specific performance issues; 

(cc) to determine other performance characteristics for use in updating test procedures and standards; or 

(dd) for other purposes consistent with this title. 

(D) EFFECT ON OTHER AUTHORITY.—Nothing in this paragraph limits the authority of the Secretary or the Administrator 

of the Environmental Protection Agency to enforce compliance 

with any law. 

* * * * * * * 

SEC. 376. SUSTAINABLE MANUFACTURING INITIATIVE. 

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

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

shall conduct on-site technical assessments to identify opportunities 

for— 

(1) maximizing the energy efficiency of industrial processes 

and cross-cutting systems; 

(2) preventing pollution and minimizing waste; 

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

(4) conserving natural resources; and 

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

be appropriate. 


SSpencer on DSK4SPTVN1PROD with REPORTS
60 

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

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

that improve energy efficiency. 

(c) RESEARCH AND DEVELOPMENT PROGRAM FOR SUSTAINABLE

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

new sustainable manufacturing and industrial technologies and 

processes that maximize the energy efficiency of industrial plants, 

reduce pollution, and conserve natural resources. 

* * * * * * * 

NATIONAL ENERGY CONSERVATION POLICY 

ACT 

Public Law 95–619, as amended 

* * * * * * * 

øSEC. 543. ENERGY MANAGEMENT REQUIREMENTS. 

ø(a) Energy Performance Requirement for Federal Buildings.— 

(1) Subject to paragraph (2), each agency shall apply energy conservation measures to, and shall improve the design for the construction of, the Federal buildings of the agency (including each industrial or laboratory facility) so that the energy consumption per 

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

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

consumption per gross square foot of the Federal buildings of the 

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

øFiscal Year Percentage Reduction 

ø2006 2 

ø2007 4 

ø2008 9 

ø2009 12 

ø2010 15 

ø2011 18 

ø2012 21 

ø2013 24 

ø2014 27 

ø2015 30 

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

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

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

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

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

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


SSpencer on DSK4SPTVN1PROD with REPORTS
61 

(a) ENERGY PERFORMANCE REQUIREMENT FOR FEDERAL BUILD- INGS.— 

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

shall apply energy conservation measures to, and shall improve 

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

agency (including each industrial or laboratory facility) so that 

the energy consumption per gross square foot of the Federal 

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

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

2003, by the percentage specified in the following table: 

Fiscal Year Percentage Reduction 

2006 2 

2007 4 

2008 9 

2009 12 

2010 15 

2011 18 

2012 21 

2013 24 

2014 27 

2015 30 

2016 33 

2017 36 

(2) EXCLUSION FOR BUILDINGS WITH ENERGY INTENSIVE ACTIVITIES.— 

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

associated energy consumption and gross square footage) in 

which energy intensive activities are carried out. 

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

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

(A). 

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

shall— 

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

performance requirements established under paragraph (1); 

and 

(B) based on the review conducted under subparagraph 

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

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

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

per gross square foot of the Federal buildings of the agency 

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

compared with the energy consumption per gross square 

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

* * * * * * * 

(f) USE OF ENERGY AND WATER EFFICIENCY MEASURES IN FEDERAL BUILDINGS.— 

* * * * * * * 


SSpencer on DSK4SPTVN1PROD with REPORTS
62 

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

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

of the facility, while meeting facility occupancy requirements. 

ø(E)¿(F) PAYBACK PERIOD.— 

(i) IN GENERAL.—Subject to clause (ii), the term 

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

value equal to the quotient obtained by dividing— 

(I) the estimated initial implementation cost of 

the measure (other than financing costs); by 

(II) the annual cost savings resulting from the 

measure, including— 

(aa) net savings in estimated energy and 

water costs; and 

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

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

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

measure as the Secretary determines to be appropriate 

to achieve the purposes of this Act. 

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

(i) of commissioning a facility or system beyond the 

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

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

performance of a facility, in accordance with design or 

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

ø(G)¿(H) RETROCOMMISSIONING.—The term ‘‘retrocommissioning’’ means a process of commissioning a facility or 

system that was not commissioned at the time of construction of the facility or system. 

(2) FACILITY ENERGY MANAGERS.— 

(A) IN GENERAL.—Each Federal agency shall designate 

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

criteria under subparagraph (B). 

(B) COVERED FACILITIES.—The Secretary shall develop 

criteria, after consultation with affected agencies, energy 

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

other energy intensive operations, that constitute at least 

75 percent of facility energy use at each agency. 

(C) ENERGY MANAGEMENT SYSTEM.—An energy manager 

designated under subparagraph (A) shall consider use of a 

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


SSpencer on DSK4SPTVN1PROD with REPORTS
63 

Organization for Standardization standard numbered 

50001 and entitled ‘‘Energy Management Systems’’. 

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

is 180 days after the date of enactment of this subsection 

and annually thereafter, energy managers shall complete, 

for each calendar year, a comprehensive energy and water 

evaluation for approximately 25 percent of the facilities of 

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

in a manner that ensures that an evaluation of each such 

facility is completed at least once every 4 years. 

ø(B) RECOMMISSIONING AND RETROCOMMISSIONING.—As 

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

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

retrocommissioning measures) for each such facility.¿ 

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

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

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

and 

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

(3) ENERGY AND WATER EVALUATIONS AND COMMISSIONING.— (A) EVALUATIONS.—Except as provided in subparagraph 

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

the date of enactment of the Energy Savings and Industrial 

Competitiveness Act of 2015, and annually thereafter, each 

energy manager shall complete, for each calendar year, a 

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

of the facilities of each agency that meet the criteria under 

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

(B) EXCEPTIONS.—An evaluation and recommissioning 

shall not be required under subparagraph (A) with respect 

to a facility that— 

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

the evaluation; 

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

retrocommissioned during the 10-year period preceding 

the date of the evaluation; or 

(II) is under ongoing commissioning; 

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

since the previous evaluation and commissioning; 

(iv) has been benchmarked with public disclosure 

under paragraph (8) within the year preceding the 

evaluation; and 

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

facility level the most recent cumulative energy savings 

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


SSpencer on DSK4SPTVN1PROD with REPORTS
64 

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

(bb) the date— 

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

(BB) on which ongoing commissioning 

began; or 

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

energy savings at least as great as the energy savings 

target under subclause (I). 

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

completion of each evaluation under paragraph (3), each 

energy manager may— 

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

that the Federal agency identified in the evaluation 

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

(ii) bundle individual measures of varying paybacks 

together into combined projects. 

(B) MEASURES NOT IMPLEMENTED.—The energy manager 

shall, as part of the certification system under paragraph 

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

measures were not implemented under subparagraph (A) 

using guidelines developed by the Secretary. 

* * * * * * * 

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

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

(i) to certify compliance with the requirements for— 

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

(II) implementation of identified energy and 

water measures under paragraph (4); and 

(III) follow-up on implemented measures under 

paragraph (5); and 

(ii) to publish energy and water consumption data 

on an individual facility basis. 

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

date of enactment of this subsection, the Secretary 

shall develop and deploy a web-based tracking system 

required under this paragraph in a manner that 

tracks, at a minimum— 

(I) the covered facilities; 

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

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

(IV) the measured savings and persistence of 

savings for implemented measures; and 

(V) the benchmarking information disclosed 

under paragraph (8)(C). 


SSpencer on DSK4SPTVN1PROD with REPORTS
65 

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

practicable— 

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

time demands on Federal employees; and 

(II) is coordinated with other applicable energy 

reporting requirements. 

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

shall make the web-based tracking system required 

under this paragraph available to Congress, other 

Federal agencies, and the public through the Internet. 

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

facilities from disclosure under clause (i) for national 

security purposes. 

(iii) SUMMARY REPORT.—The Secretary shall make 

available a report that summarizes the information 

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

as applicable, by each type of measure. 

* * * * * * * 

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

large capital energy investment in an existing building that is 

not a major renovation but involves replacement of installed 

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

renovation, rehabilitation, expansion, or remodeling of existing 

space, employs the most energy efficient designs, systems, 

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

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

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

(A) develop a process for reviewing each decision made 

on a large capital energy investment described in paragraph (1) to ensure that the requirements of this subsection are met; and 

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

and Budget on the process established. 

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

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

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

(h) FEDERAL IMPLEMENTATION STRATEGY FOR ENERGY EFFICIENT

AND ENERGY-SAVING INFORMATION TECHNOLOGIES.— (1) DEFINITIONS.—In this subsection: 

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

of the Office of Management and Budget. 

(B) INFORMATION TECHNOLOGY.—The term ‘‘information 

technology’’ has the meaning given the term in section 

11101 of title 40, United States Code. 

(2) DEVELOPMENT OF IMPLEMENTATION STRATEGY.—Not later 

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

Federal agency shall collaborate with the Director to develop an 


SSpencer on DSK4SPTVN1PROD with REPORTS
66 

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

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

(A) advanced metering infrastructure; 

(B) energy efficient data center strategies and methods of 

increasing asset and infrastructure utilization; 

(C) advanced power management tools; 

(D) building information modeling, including building 

energy management; and 

(E) secure telework and travel substitution tools. 

(4) PERFORMANCE GOALS.— 

(A) IN GENERAL.—Not later than September 30, 2015, the 

Director, in consultation with the Secretary, shall establish 

performance goals for evaluating the efforts of Federal 

agencies in improving the maintenance, purchase, and use 

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

(B) BEST PRACTICES.—The Chief Information Officers 

Council established under section 3603 of title 44, United 

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

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

(i) energy savings performance contracting; and 

(ii) utility energy services contracting. 

(5) REPORTS.— 

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

the requirements of this subsection shall include in the report of the agency under section 527 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17143) a description of the efforts and results of the agency under this 

subsection. 

(B) OMB GOVERNMENT EFFICIENCY REPORTS AND SCORECARDS.—Effective beginning not later than October 1, 2015, 

the Director shall include in the annual report and scorecard of the Director required under section 528 of the Energy Independence and Security Act of 2007 (42 U.S.C. 

17144) a description of the efforts and results of Federal 

agencies under this subsection. 

(C) USE OF EXISTING REPORTING STRUCTURES.—The Director may require Federal agencies to submit any information required to be submitted under this subsection though 

reporting structures in use as of the date of enactment of 

the Energy Savings and Industrial Competitiveness Act of 

2015. 

* * * * * * * 


SSpencer on DSK4SPTVN1PROD with REPORTS
67 

FINANCIAL INSTITUTIONS REFORM, 

RECOVERY, AND ENFORCEMENT ACT OF 1989 

Public Law 101–73, as amended 

* * * * * * * 

SEC. 1110. FUNCTIONS OF THE FEDERAL FINANCIAL INSTITUTIONS 

REGULATORY AGENCIES RELATING TO APPRAISAL 

STANDARDS. 

Each Federal financial institutions regulatory agency and the 

Resolution Trust Corporation shall prescribe appropriate standards 

for the performance of real estate appraisals in connection with 

federally related transactions under the jurisdiction of each such 

agency or instrumentality. These rules shall require, at a minimum— 

(1) that real estate appraisals be performed in accordance 

with generally accepted appraisal standards as evidenced by 

the appraisal standards promulgated by the Appraisal Standards Board of the Appraisal Foundation; 

(2) that such appraisals shall be written appraisalsø; and¿; 

(3) that such appraisals shall be subject to appropriate review for compliance with the Uniform Standards of Professional Appraisal Practiceø.¿; and 

(4) that State certified and licensed appraisers have timely 

access, whenever practicable, to information from the property 

owner and the lender that may be relevant in developing an 

opinion of value regarding the energy- and water-saving improvements or features of a property, such as— 

(A) labels or ratings of buildings; 

(B) installed appliances, measures, systems or technologies; 

(C) blueprints; 

(D) construction costs; 

(E) financial or other incentives regarding energy- and 

water-efficient components and systems installed in a property; 

(F) utility bills; 

(G) energy consumption and benchmarking data; and 

(H) third-party verifications or representations of energy 

and water efficiency performance of a property, observing 

all financial privacy requirements adhered to by certified 

and licensed appraisers, including section 501 of the 

Gramm-Leach-Bliley Act (15 U.S.C. 6801). 

Unless a property owner consents to a lender, an appraiser, in 

carrying out the requirements of paragraph (4), shall not have 

access to the commercial or financial information of the owner 

that is privileged or confidential. 

Each such agency or instrumentality may require compliance 

with additional standards if it makes a determination in writing that such additional standards are required in order to 

properly carry out its statutory responsibilities. 

* * * * * * * 


SSpencer on DSK4SPTVN1PROD with REPORTS
68 

SEC. 1113. TRANSACTIONS REQUIRING THE SERVICES OF A STATE 

CERTIFIED APPRAISER. 

In determining whether an appraisal in connection with a federally related transaction shall be performed by a State certified appraiser, an agency or instrumentality under this title shall consider 

whether transactions, either individually or collectively, are of sufficient financial or public policy importance to the United States 

that an individual who performs an appraisal in connection with 

such transactions should be a State certified appraiser, except 

that— 

(1) a State certified appraiser shall be required for all feder- ally related transactions having a value of $1,000,000 or more, or any real property on which the appraiser makes adjustments 

using an energy efficiency report; and 

(2) 1-to-4 unit, single family residential appraisals may be 

performed by State licensed appraisers unless the size and 

complexity requires a State certified appraiser, where a complex 1-to-4 unit single family residential appraisal means an 

appraisal for which the property to be appraised, the form of 

ownership, the property characteristics, or the market conditions are atypical, or an appraisal on which the appraiser 

makes adjustments using an energy efficiency report. 

* * * * * * * 

UNITED STATES CODE 

* * * * * * * 

TITLE 40—PUBLIC BUILDINGS, PROPERTY, 

AND WORKS 

* * * * * * * 

§ 3307. Congressional approval of proposed projects 

* * * * * * * 

(d) AVAILABILITY OF FUNDS FOR DESIGN UPDATES.— 

(1) IN GENERAL.—Subject to paragraph (2), for any project for 

which congressional approval is received under subsection (a) 

and for which the design has been substantially completed but 

construction has not begun, the Administrator of General Services may use appropriated funds to update the project design to 

meet applicable Federal building energy efficiency standards established under section 305 of the Energy Conservation and 

Production Act (42 U.S.C. 6834) and other requirements established under section 3312. 

(2) LIMITATION.—The use of funds under paragraph (1) shall 

not exceed 125 percent of the estimated energy or other cost savings associated with the updates as determined by a life cycle 

cost analysis under section 544 of the National Energy Conservation Policy Act (42 U.S.C. 8254). 

ø(d)¿(e) RESCISSION OF APPROVAL.—If an appropriation is not 

made within one year after the date a project for construction, alteration, or acquisition is approved under subsection (a), the ComVerDate Sep 11 2014 03:01 Sep 15, 2015 Jkt 049010 PO 00000 Frm 00068 Fmt 6659 Sfmt 6602 E:\HR\OC\SR130.XXX SR130

SSpencer on DSK4SPTVN1PROD with REPORTS
69 

mittee on Environment and Public Works of the Senate or the 

Committee on Transportation and Infrastructure of the House of 

Representatives by resolution may rescind its approval before an 

appropriation is made. 

ø(e)¿(f) EMERGENCY LEASES BY THE ADMINISTRATOR.—This section does not prevent the Administrator from entering into emergency leases during any period declared by the President to require 

emergency leasing authority. An emergency lease may not be for 

more than 180 days without approval of a prospectus for the lease 

in accordance with subsection (a). 

ø(f)¿(g) MINIMUM PERFORMANCE REQUIREMENTS FOR LEASED

SPACE.—With respect to space to be leased, the Administrator shall 

include, to the maximum extent practicable, minimum performance 

requirements requiring energy efficiency and the use of renewable 

energy. 

ø(g)¿(h) LIMITATION ON LEASING CERTAIN SPACE.— 

(1) IN GENERAL.—The Administrator may not lease space to 

accommodate any of the following if the average rental cost of 

leasing the space will exceed $1,500,000: 

(A) Computer and telecommunications operations. 

(B) Secure or sensitive activities related to the national 

defense or security, except when it would be inappropriate 

to locate those activities in a public building or other facility identified with the Government. 

(C) A permanent courtroom, judicial chamber, or administrative office for any United States court. 

(2) EXCEPTION.—The Administrator may lease space with respect to which paragraph (1) applies if the Administrator— 

(A) decides, for reasons set forth in writing, that leasing 

the space is necessary to meet requirements which cannot 

be met in public buildings; and 

(B) submits the reasons to the Committee on Environment and Public Works of the Senate and the Committee 

on Transportation and Infrastructure of the House of Representatives. 

ø(h)¿(i) DOLLAR AMOUNT ADJUSTMENT.—The Administrator annually may adjust any dollar amount referred to in this section to 

reflect a percentage increase or decrease in construction costs during the prior calendar year, as determined by the composite index 

of construction costs of the Department of Commerce. Any adjustment shall be expeditiously reported to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives. 

* * * * * * * 

Æ 


SSpencer on DSK4SPTVN1PROD with REPORTS