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[Senate Report 114-130]
[From the U.S. Government Publishing Office]

                                                       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:
          ``(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.--
                                  ``(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.

                          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. 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
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.

                      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.

                 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.

                  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.

   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.

                   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.
    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 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 these solutions are 
successfully developed, commercialized, and proven to be cost 
effective.
---------------------------------------------------------------------------
    \1\Monthly 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.
---------------------------------------------------------------------------
    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 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. building-related 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.
---------------------------------------------------------------------------
    \3\The BBC website address is www.better buildings.energy.gov/
challenge.
---------------------------------------------------------------------------
    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, achieving 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 cost-effective 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.
---------------------------------------------------------------------------
    \4\Full-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
---------------------------------------------------------------------------
    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 3D-printed car--all 
in just six months. This project was enabled 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\
---------------------------------------------------------------------------
    \6\Internal analysis based on data from the Industrial Assessment 
Centers Database, http://iac.rutgers.edu/database.
---------------------------------------------------------------------------
    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 partnerships 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.
    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 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\
---------------------------------------------------------------------------
    \7\White 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/fact-sheet-reducing-
greenhouse-gas-emissions-federal-government-and-acro
---------------------------------------------------------------------------
    A number of energy efficiency goals for the federal 
government were recently extended through 2025 by Executive 
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.
---------------------------------------------------------------------------
    \8\Executive Order 13693 is accessible at https://
www.whitehouse.gov/the-press-office/2015/03/19/executive-order-
planning-federal-sustainability-next-decade.
---------------------------------------------------------------------------
    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 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.

                        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.GEnergy Conservation and Production Act, Public Law 94-385, as 
  Amended........................................................    23
2.GEnergy 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.GNational Energy Conservation Policy Act, Public Law 95-619, as 
  Amended........................................................    60
7.GFinancial 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 
        [to 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.
          [(14) The term ``voluntary building energy code'' 
        means a building energy code developed and updated 
        through a consensus process among interested persons, 
        such as that used by the Council of American Building 
        Officials; the American Society of Heating, 
        Refrigerating, and Air-Conditioning Engineers; or other 
        appropriate organizations.]
          (14) Model building energy code.--The term `model 
        building energy code' means a voluntary building energy 
        code and standards developed and updated through a 
        consensus process among interested persons, such as the 
        IECC or the code used by--
                  (A) the Council of American Building 
                Officials, or its legal successor, 
                International Code Council, Inc.;
                  (B) the American Society of Heating, 
                Refrigerating, and Air-Conditioning Engineers; 
                or
                  (C) other appropriate organizations.
          (15) The term ``CABO'' means the Council of American 
        Building Officials.
          (16) The term ``ASHRAE'' means the American Society 
        of Heating, Refrigerating, and Air-Conditioning 
        Engineers.
          (17) IECC.--The term ``IECC'' means the International 
        Energy Conservation Code.
          (18) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Native 
        American Housing Assistance and Self-Determination Act 
        of 1996 (25 U.S.C. 4103).
          (19) Major renovation.--The term ``major renovation'' 
        means a modification of building energy systems 
        sufficiently extensive that the whole building can meet 
        energy standards for new buildings, based on criteria 
        to be established by the Secretary through notice and 
        comment rulemaking.

           *       *       *       *       *       *       *

[SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.

    [(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.
    [(2) The determination referred to in paragraph (1) shall 
be--
          [(A) made after public notice and hearing;
          [(B) in writing;
          [(C) based upon findings included in such 
        determination and upon the evidence presented at the 
        hearing; and
          [(D) available to the public.
    [(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.
    [(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.
    [(5)(A) Whenever CABO Model Energy Code, 1992, (or any 
successor of such code) is revised, the Secretary shall, not 
later than 12 months after such revision, determine whether 
such revision would improve energy efficiency in residential 
buildings. The Secretary shall publish notice of such 
determination in the Federal Register.
    [(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.
    [(C) Paragraphs (2), (3), and (4) shall apply to any 
determination made under subparagraph (B).
    [(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.
    [(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.
    [(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.
    [(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).
    [(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.
    [(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.
    [(e) Availability of Incentive Funding.--(1) The Secretary 
shall provide incentive funding to States to implement the 
requirements of this section, and to improve and implement 
State residential and commercial building energy efficiency 
codes, including increasing and verifying compliance with such 
codes. In determining whether, and in what amount, to provide 
incentive funding under this subsection, the Secretary shall 
consider the actions proposed by the State to implement the 
requirements of this section, to improve and implement 
residential and commercial building energy efficiency codes, 
and to promote building energy efficiency through the use of 
such codes.
    [(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--
          [(A) to a State that has adopted and is implementing, 
        on a statewide basis--
                  [(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
                  [(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
          [(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).
    [(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).
    [(4)(A) There are authorized to be appropriated to carry 
out this subsection--
          [(i) $25,000,000 for each of fiscal years 2006 
        through 2010; and
          [(ii) such sums as are necessary for fiscal year 2011 
        and each fiscal year thereafter.
    [(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 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.
          (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.--
                  (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, 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 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 [voluntary 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.
    [(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--
          [(i) if life-cycle cost-effective for new Federal 
        buildings--
                  [(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
                  [(II) sustainable design principles are 
                applied to the siting, design, and construction 
                of all new and replacement buildings;
          [(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
          [(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.
    [(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 Performance 
Standards; Certification for Green Buildings.--
          (A) Revised federal building energy efficiency 
        performance standards.--
                  (i) In general.--Not later than 1 year after 
                the date of enactment of the Energy Savings and 
                Industrial Competitiveness Act of 2015, the 
                Secretary shall establish, by rule, revised 
                Federal building energy efficiency performance 
                standards that require that--
                          (I) new Federal buildings and 
                        alterations and additions to existing 
                        Federal buildings--
                                  (aa) meet or exceed the most 
                                recent revision of the 
                                International Energy 
                                Conservation Code (in the case 
                                of residential buildings) or 
                                ASHRAE Standard 90.1 (in the 
                                case of commercial buildings) 
                                as of the date of enactment of 
                                the Energy Savings and 
                                Industrial Competitiveness Act 
                                of 2015; and
                                  (bb) meet or exceed the 
                                energy provisions of State and 
                                local building codes applicable 
                                to the building, if the codes 
                                are more stringent than the 
                                International Energy 
                                Conservation Code or ASHRAE 
                                Standard 90.1, as applicable;
                          (II) unless demonstrated not to be 
                        life-cycle cost effective for new 
                        Federal buildings and Federal buildings 
                        with major renovations--
                                  (aa) the buildings be 
                                designed to achieve energy 
                                consumption levels that are at 
                                least 30 percent below the 
                                levels established in the 
                                version of the ASHRAE Standard 
                                or the International Energy 
                                Conservation Code, as 
                                appropriate, that is applied 
                                under subclause (I)(aa), 
                                including updates under 
                                subparagraph (B); and
                                  (bb) sustainable design 
                                principles are applied to the 
                                location, siting, design, and 
                                construction of all 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.
          [(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--

           *       *       *       *       *       *       *

          [(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--
                  [(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:
                          [(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:

------------------------------------------------------------------------
            [Fiscal Year                     Percentage Reduction
------------------------------------------------------------------------
                        [2010                                   55
                        [2015                                   65
                        [2020                                   80
                        [2025                                   90
                        [2030                                  100
------------------------------------------------------------------------

                          [(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.
                          [(III) Sustainable design principles 
                        shall be applied to the siting, design, 
                        and construction of such buildings. Not 
                        later than 90 days after the date of 
                        enactment of the Energy Independence 
                        and Security Act of 2007, the 
                        Secretary, after reviewing the findings 
                        of the Federal Director under section 
                        436(h) of that Act, in consultation 
                        with the Administrator of General 
                        Services, and in consultation with the 
                        Secretary of Defense for considerations 
                        relating to those facilities under the 
                        custody and control of the Department 
                        of Defense, shall identify a 
                        certification system and level for 
                        green buildings that the Secretary 
                        determines to be the most likely to 
                        encourage a comprehensive and 
                        environmentally-sound approach to 
                        certification of green buildings. The 
                        identification of the certification 
                        system and level shall be based on a 
                        review of the Federal Director's 
                        findings under section 436(h) of the 
                        Energy Independence and Security Act of 
                        2007 and the criteria specified in 
                        clause (iii), shall identify the 
                        highest level the Secretary determines 
                        is appropriate above the minimum level 
                        required for certification under the 
                        system selected, and shall achieve 
                        results at least comparable to the 
                        system used by and highest level 
                        referenced by the General Services 
                        Administration as of the date of 
                        enactment of the Energy Independence 
                        and Security Act of 2007. Within 90 
                        days of the completion of each study 
                        required by clause (iv), the Secretary, 
                        in consultation with the Administrator 
                        of General Services, and in 
                        consultation with the Secretary of 
                        Defense for considerations relating to 
                        those facilities under the custody and 
                        control of the Department of Defense, 
                        shall review and update the 
                        certification system and level, taking 
                        into account the conclusions of such 
                        study.
                  [(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.
                  [(iii) In identifying the green building 
                certification system and level, 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.
                  [(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).
                  [(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.
                  [(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.
                  [(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 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)--
                                  (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 [voluntary 
building energy code] model building energy code.
    [(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.]
    [(d) Interim Standards.--Interim energy performance 
standards for new Federal buildings issued by the Secretary 
under this title as it existed before the date of the enactment 
of the Energy Policy Act of 1992 shall remain in effect until 
the standards established under subsection (a) become 
effective.]
    (c) Periodic Review.--The Secretary shall--
          (1) once every 5 years, review the Federal building 
        energy standards established under this section; and
          (2) on completion of a review under paragraph (1), if 
        the Secretary determines that significant energy 
        savings would result, upgrade the standards to include 
        all new energy efficiency and renewable energy measures 
        that are technologically feasible and economically 
        justified.

           *       *       *       *       *       *       *

[SEC. 307. SUPPORT FOR VOLUNTARY BUILDING ENERGY CODES.

    [(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--
          [(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;
          [(2) assistance in improving the technical basis for 
        such standards and codes;
          [(3) assistance in determining the cost-effectiveness 
        and the technical feasibility of the energy efficiency 
        measures included in such standards and codes; and
          [(4) assistance in identifying appropriate measures 
        with regard to radon and other indoor air pollutants.
    [(b) Review.--The Secretary shall periodically review the 
technical and economic basis of voluntary building energy codes 
and, based upon ongoing research activities--
          [(1) recommend amendments to such codes including 
        measures with regard to radon and other indoor air 
        pollutants;
          [(2) seek adoption of all technologically feasible 
        and economically justified energy efficiency measures; 
        and
          [(3) otherwise participate in any industry process 
        for review and modification of such codes.]

SEC. 307. SUPPORT FOR MODEL BUILDING ENERGY CODES.

    (a) In General.--The Secretary shall support the updating 
of model building energy codes.
    (b) Targets.--
          (1) In general.--The Secretary shall support the 
        updating of the model building energy codes to enable 
        the achievement of aggregate energy savings targets 
        established under paragraph (2).
          (2) Targets.--
                  (A) In general.--The Secretary shall work 
                with State, Indian tribes, local governments, 
                nationally recognized code and standards 
                developers, and other interested parties to 
                support the updating of model building energy 
                codes by establishing one or more aggregate 
                energy savings targets to achieve the purposes 
                of this section.
                  (B) Separate targets.--The Secretary may 
                establish separate targets for commercial and 
                residential buildings.
                  (C) Baselines.--The baseline for updating 
                model building energy codes shall be the 2009 
                IECC for residential buildings and ASHRAE 
                Standard 90.1-2010 for commercial buildings.
                  (D) Specific years.--
                          (i) In general.--Targets for specific 
                        years shall be established and revised 
                        by the Secretary through rulemaking and 
                        coordinated with nationally recognized 
                        code and standards developers at a 
                        level that--
                                  (I) is at the maximum level 
                                of energy efficiency that is 
                                technologically feasible and 
                                life-cycle cost effective, 
                                while accounting for the 
                                economic considerations under 
                                paragraph (4);
                                  (II) is higher than the 
                                preceding target; and
                                  (III) promotes the 
                                achievement of commercial and 
                                residential high-performance 
                                buildings through high 
                                performance energy efficiency 
                                (within the meaning of section 
                                401 of the Energy Independence 
                                and Security Act of 2007 (42 
                                U.S.C. 17061)).
                          (ii) Initial targets.--Not later than 
                        1 year after the date of enactment of 
                        this clause, the Secretary shall 
                        establish initial targets under this 
                        subparagraph.
                          (iii) Different target years.--
                        Subject to clause (i), prior to the 
                        applicable year, the Secretary may set 
                        a later target year for any of the 
                        model building energy codes described 
                        in subparagraph (A) if the Secretary 
                        determines that a target cannot be met.
                          (iv) Small business.--When 
                        establishing targets under this 
                        paragraph through rulemaking, the 
                        Secretary shall ensure compliance with 
                        the Small Business Regulatory 
                        Enforcement Fairness Act of 1996 (5 
                        U.S.C. 601 note; Public Law 104-121).
          (3) Appliance standards and other factors affecting 
        building energy use.--In establishing building code 
        targets under paragraph (2), the Secretary shall 
        develop and adjust the targets in recognition of 
        potential savings and costs relating to--
                  (A) efficiency gains made in appliances, 
                lighting, windows, insulation, and building 
                envelope sealing;
                  (B) advancement of distributed generation and 
                on-site renewable power generation 
                technologies;
                  (C) equipment improvements for heating, 
                cooling, and ventilation systems;
                  (D) building management systems and SmartGrid 
                technologies to reduce energy use; and
                  (E) other technologies, practices, and 
                building systems that the Secretary considers 
                appropriate regarding building plug load and 
                other energy uses.
          (4) Economic considerations.--In establishing and 
        revising building code targets under paragraph (2), the 
        Secretary shall consider the economic feasibility of 
        achieving the proposed targets established under this 
        section and the potential costs and savings for 
        consumers and building owners, including a return on 
        investment analysis.
    (c) Technical Assistance to Model Building Energy Code-
Setting 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
                          (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 [System] Systems._
          [(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 [system] systems identified under 
        paragraph (1) shall be based on--
                  [(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; [and]
                  (F) national recognition within the building 
                industry[.];
                  (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. [ENERGY-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.
          [(3)](4) Feedstock.--The term ``feedstock'' means the 
        raw material supplied for use in manufacturing, 
        chemical, and biological processes.
          [(4)](5) Partnership.--The term ``partnership'' means 
        an energy efficiency partnership established under 
        subsection (c)(1)(A).
          [(5)](6) Program.--The term ``program'' means the 
        energy-intensive industries program established under 
        subsection (b).
    (b) Establishment of Program.--The Secretary shall 
establish a program under which the Secretary, in cooperation 
with energy-intensive 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.--[The Secretary]
          (1) In general.--The Secretary shall provide funding 
        to institution of higher education-based industrial 
        research and assessment centers, whose purpose shall 
        be--
                  [(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;
                  [(2)](B) to promote applications of emerging 
                concepts and technologies in small- and medium-
                sized manufacturers;
                  [(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;
                  [(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
                  [(5)](E) to coordinate with State-accredited 
                technical training centers and community 
                colleges, while ensuring appropriate services 
                to all regions of the United States.
          (2) Coordination.--To increase the value and 
        capabilities of the industrial research and assessment 
        centers, the centers shall--
                  (A) coordinate with Manufacturing Extension 
                Partnership Centers of the National Institute 
                of Standards and Technology;
                  (B) coordinate with the Building Technologies 
                Program of the Department of Energy to provide 
                building assessment services to manufacturers;
                  (C) increase partnerships with the National 
                Laboratories of the Department of Energy to 
                leverage the expertise and technologies of the 
                National Laboratories for national industrial 
                and manufacturing needs;
                  (D) increase partnerships with energy service 
                providers and technology providers to leverage 
                private sector expertise and accelerate 
                deployment of new and existing technologies and 
                processes for energy efficiency, power factor, 
                and load management;
                  (E) identify opportunities for reducing 
                greenhouse gas emissions; and
                  (F) promote sustainable manufacturing 
                practices for small- and medium-sized 
                manufacturers.
          (3) Outreach.--The Secretary shall provide funding 
        for--
                  (A) outreach activities by the industrial 
                research and assessment centers to inform 
                small- and medium-sized manufacturers of the 
                information, technologies, and services 
                available; and
                  (B) coordination activities by each 
                industrial research and assessment center to 
                leverage efforts with--
                          (i) Federal and State efforts;
                          (ii) the efforts of utilities and 
                        energy service providers;
                          (iii) the efforts of regional energy 
                        efficiency organizations; and
                          (iv) the efforts of other industrial 
                        research and assessment centers.
          (4) Workforce training.--
                  (A) In general.--The Secretary shall pay the 
                Federal share of associated internship programs 
                under which students work with or for 
                industries, manufacturers, and energy service 
                providers to implement the recommendations of 
                industrial research and assessment centers.
                  (B) Federal share.--The Federal share of the 
                cost of carrying out internship programs 
                described in subparagraph (A) shall be 50 
                percent.
          (5) Small business loans.--The Administrator of the 
        Small Business Administration shall, to the maximum 
        extent practicable, expedite consideration of 
        applications from eligible small business concerns for 
        loans under the Small Business Act (15 U.S.C. 631 et 
        seq.) to implement recommendations of industrial 
        research and assessment centers established under 
        paragraph (1).
          (6) Advanced manufacturing steering committee.--The 
        Secretary shall establish an advisory steering 
        committee to provide recommendations to the Secretary 
        on planning and implementation of the Advanced 
        Manufacturing Office of the Department of Energy.

           *       *       *       *       *       *       *

SEC. 453. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS.

           *       *       *       *       *       *       *

    (b) Voluntary National Information Program.--
          (1) In general.--Not later than 90 days after the 
        date of enactment of this Act, the Secretary and the 
        Administrator of the Environmental Protection Agency 
        shall, after consulting with information technology 
        industry and other interested parties, initiate a 
        voluntary national information program for those types 
        of data centers and data center equipment and 
        facilities that are widely used and for which there is 
        a potential for significant data center energy savings 
        as a result of the program.
          (2) Requirements.--The program described in paragraph 
        (1) shall--
                  (A) address data center efficiency 
                holistically, reflecting the total energy 
                consumption of data centers as whole systems, 
                including both equipment and facilities;
                  (B) consider prior work and studies 
                undertaken in this area, including by the 
                Environmental Protection Agency and the 
                Department of Energy;
                  (C) consistent with the objectives described 
                in paragraph (1), determine the type of data 
                center and data 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 [the 
                        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.
          [(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.]
    [(c) Data Center Efficiency Organization.--
          [(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.
          [(2) Requirements.--The organization designated under 
        paragraph (1), whether preexisting or formed 
        specifically for the purposes of subsection (b), 
        shall--
                  [(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;
                  [(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);
                  [(C) follow commonly accepted procedures for 
                the development of specifications and 
                accredited standards development processes;
                  [(D) have a mission to develop and promote 
                energy efficiency for data centers and 
                information technology; and
                  [(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).
    [(d) Measurements and Specifications.--
          [(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.
          [(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).
          [(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.
    [(e) Monitoring.--The Secretary and the Administrator 
shall--
          [(1) monitor and evaluate the efforts to develop the 
        program described in subsection (b); and
          [(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).
    [(f) Alternative System.--If the Secretary and the 
Administrator make a determination under subsection (e) that a 
voluntary national information program for data centers 
consistent with the objectives of subsection (b) has not been 
developed, the Secretary and the Administrator shall, after 
consultation with the National Institute of Standards and 
Technology and not later than 2 years after the determination, 
develop and implement the program under subsection (b).
    [(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;
          (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

           *       *       *       *       *       *       *

[SEC. 106. VOLUNTARY COMMITMENTS TO REDUCE INDUSTRIAL ENERGY INTENSITY.

    [(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.
    [(b) Voluntary Agreements.--The Secretary may enter into 
voluntary agreements with one or more persons in industrial 
sectors that consume significant quantities of primary energy 
for each unit of physical output to reduce the energy intensity 
of the production activities of the persons.
    [(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.
    [(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.
    [(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.
    [(f) Report.--Not later than each of June 30, 2012, and 
June 30, 2017, the Secretary shall submit to Congress a report 
that--
          [(1) evaluates the success of the voluntary 
        agreements under this section; and
          [(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

           *       *       *       *       *       *       *

[SEC. 131. ENERGY EFFICIENCY IN INDUSTRIAL FACILITIES.

    [(a) Grant Program.--
          [(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.
          [(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--
                  [(A) potential energy savings;
                  [(B) potential environmental benefits;
                  [(C) the degree of cost sharing;
                  [(D) the degree to which new and innovative 
                technologies will be encouraged;
                  [(E) the level of industry involvement;
                  [(F) estimated project cost-effectiveness; 
                and
                  [(G) the degree to which progress toward the 
                energy improvement targets can be monitored.
          [(3) Eligible projects.--Projects eligible for grants 
        under this subsection may include the following:
                  [(A) Workshops.
                  [(B) Training seminars.
                  [(C) Handbooks.
                  [(D) Newsletters.
                  [(E) Data bases.
                  [(F) Other activities approved by the 
                Secretary.
          [(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.
          [(5) Authorization.--There are authorized to be 
        appropriated such sums as are necessary to carry out 
        this subsection.
    [(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.
    [(c) Report on Industrial Reporting and Voluntary 
Targets.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall, in consultation 
with affected industries, evaluate and report to the Congress 
regarding the establishment of Federally mandated energy 
efficiency reporting requirements and voluntary energy 
efficiency improvement targets for energy intensive industries. 
Such report shall include an evaluation of the costs and 
benefits of such reporting requirements and voluntary energy 
efficiency improvement targets, and recommendations regarding 
the role of such activities in improving energy efficiency in 
energy intensive industries.]

[SEC. 132. PROCESS ORIENTED INDUSTRIAL ENERGY EFFICIENCY.

    [(a) Definitions.--For the purposes of this section--
          [(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);
          [(2) the term ``process-oriented industrial 
        assessment'' means--
                  [(A) the identification of opportunities in 
                the production process (from the introduction 
                of materials to final packaging of the product 
                for shipping) for--
                          [(i) improving energy efficiency;
                          [(ii) reducing environmental impact; 
                        and
                          [(iii) designing technological 
                        improvements to increase 
                        competitiveness and achieve cost-
                        effective product quality enhancement;
                  [(B) the identification of opportunities for 
                improving the energy efficiency of lighting, 
                heating, ventilation, air conditioning, and the 
                associated building envelope; and
                  [(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
          [(3) the term ``utility'' means any person, State 
        agency (including any municipality), or Federal agency, 
        which sells electric or gas energy to retail customers.
    [(b) Grant Program.--
          [(1) Use of funds.--The Secretary shall, to the 
        extent funds are made available for such purpose, make 
        grants to States which, consistent with State law, 
        shall be used for the following purposes:
                  [(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.
                  [(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.
                  [(C) To assist utilities in developing, 
                testing, and evaluating energy efficiency 
                programs and technologies for industrial 
                customers in covered industries.
          [(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).
          [(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--
                  [(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
                  [(B) by legislation or regulation--
                          [(i) allows utilities to recover the 
                        costs prudently incurred in providing 
                        process-oriented industrial 
                        assessments; and
                          [(ii) encourages utilities to provide 
                        to covered industries--
                                  [(I) process-oriented 
                                industrial assessments; and
                                  [(II) financial incentives 
                                for implementing energy 
                                efficiency improvements.
          [(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.
          [(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--
                  [(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
                  [(B) such State demonstrates, in a manner 
                prescribed by the Secretary, utility 
                participation in programs established pursuant 
                to this subsection.
          [(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.
    [(c) Other Federal Assistance.--
          [(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.
          [(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.
          [(3) Award program.--The Secretary shall establish an 
        annual award program to recognize utilities operating 
        outstanding or innovative industrial energy efficiency 
        technology assistance programs.
          [(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.
    [(d) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as may be necessary to carry out 
the purposes of this section.]

[SEC. 133. INDUSTRIAL INSULATION AND AUDIT GUIDELINES.

    [(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--
          [(1) the conduct of energy efficiency audits of 
        industrial facilities to identify cost-effective 
        opportunities to increase energy efficiency; and
          [(2) the installation of insulation to achieve cost-
        effective increases in energy efficiency in industrial 
        facilities.
    [(b) Educational and Technical Assistance.--The Secretary 
shall conduct a program of educational and technical assistance 
to promote the use of the voluntary guidelines established 
under subsection (a).]

           *       *       *       *       *       *       *

SEC. 2101. GENERAL IMPROVED ENERGY EFFICIENCY.

    (a) Program Direction.--The Secretary shall conduct a 5-
year program, in accordance with sections 3001 and 3002 of this 
Act, on cost effective technologies to improve energy 
efficiency and increase the use of renewable energy in the 
buildings, industrial, and utility sectors. Such program shall 
include a broad range of technological approaches, and shall 
include field demonstrations of sufficient scale and number to 
prove technical and economic viability to meet the goals stated 
in section 2001. Such program shall include the activities 
required under [sections 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).

           *       *       *       *       *       *       *

[SEC. 2103. PULP AND PAPER.

    [(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.
    [(b) Proposals.--Within 180 days after the date of 
enactment of this Act, the Secretary shall solicit proposals 
for conducting activities under this section.]

           *       *       *       *       *       *       *

[SEC. 2107. IMPROVING EFFICIENCY IN ENERGY INTENSIVE INDUSTRIES.

    [(a) Secretarial Action.--The Secretary, in accordance with 
sections 3001 and 3002 of this Act, shall--
          [(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
          [(2) undertake joint ventures to encourage the 
        commercialization of technologies developed under 
        paragraph (1).
    [(b) Joint Ventures.--(1) The Secretary shall--
          [(A) conduct a competitive solicitation for proposals 
        from private firms and investors for such joint 
        ventures under subsection (a)(2); and
          [(B) provide financial assistance to at least five 
        such joint ventures.
    [(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.
    [(3) In evaluating proposals for financial assistance and 
joint ventures under this section, the Secretary shall 
consider--
          [(A) whether the activities conducted under this 
        section improve the quality and energy efficiency of 
        industries or industrial processes;
          [(B) the regional distribution of the energy-
        intensive industries and industrial processes; and
          [(C) whether the proposed joint venture project would 
        be located in the region which has the energy-intensive 
        industry and industrial processes that would benefit 
        from the project.]

           *       *       *       *       *       *       *

                              ----------                              

                   ENERGY POLICY AND CONSERVATION ACT

Public Law 94-163, as amended

           *       *       *       *       *       *       *

                          ENERGY STAR PROGRAM

    Sec. 324a. (a) In General.-- * * *

           *       *       *       *       *       *       *

    (e) Third-Party Certification.--
          (1) In general.--Subject to paragraph (2), not later 
        than 180 days after the date of enactment of this 
        subsection, the Administrator shall revise the 
        certification requirements for the labeling of 
        consumer, home, and office electronic products for 
        program partners that have complied with all 
        requirements of the Energy Star program for a period of 
        at least 18 months.
          (2) Administration.--In the case of a program partner 
        described in paragraph (1), the new requirements under 
        paragraph (1)--
                  (A) shall not require third-party 
                certification for a product to be listed; but
                  (B) may require that test data and other 
                product information be submitted to facilitate 
                product listing and performance verification 
                for a sample of products.
          (3) Third parties.--Nothing in this subsection 
        prevents the Administrator from using third parties in 
        the course of the administration of the Energy Star 
        program.
          (4) Termination.--
                  (A) In general.--Subject to subparagraph (B), 
                an exemption from third-party certification 
                provided to a program partner under paragraph 
                (1) shall terminate if the program partner is 
                found to have violated program requirements 
                with respect to at least 2 separate models 
                during a 2-year period.
                  (B) Resumption.--A termination for a program 
                partner under subparagraph (A) shall cease if 
                the program partner complies with all Energy 
                Star program requirements for a period of at 
                least 3 years.

           *       *       *       *       *       *       *

SEC. 324B. SUPPLY STAR PROGRAM.

    (a) In General.--There is established within the Department 
of Energy a Supply Star program to identify and promote 
practices, recognize companies, and, as appropriate, recognize 
products that use highly efficient supply chains in a manner 
that conserves energy, water, and other resources.
    (b) Coordination.--In carrying out the program described in 
subsection (a), the Secretary shall--
          (1) consult with other appropriate agencies; and
          (2) coordinate efforts with the Energy Star program 
        established under section 324A.
    (c) Duties.--In carrying out the Supply Star program 
described in subsection (a), the Secretary shall--
          (1) promote practices, recognize companies, and, as 
        appropriate, recognize products that comply with the 
        Supply Star program as the preferred practices, 
        companies, and products in the marketplace for 
        maximizing supply chain efficiency;
          (2) work to enhance industry and public awareness of 
        the Supply Star program;
          (3) collect and disseminate data on supply chain 
        energy resource consumption;
          (4) develop and disseminate metrics, processes, and 
        analytical tools (including software) for evaluating 
        supply chain energy resource use;
          (5) develop guidance at the sector level for 
        improving supply chain efficiency;
          (6) work with domestic and international 
        organizations to harmonize approaches to analyzing 
        supply chain efficiency, including the development of a 
        consistent set of tools, templates, calculators, and 
        databases; and
          (7) work with industry, including small businesses, 
        to improve supply chain efficiency through activities 
        that include--
                  (A) developing and sharing best practices; 
                and
                  (B) providing opportunities to benchmark 
                supply chain efficiency.
    (d) Evaluation.--In any evaluation of supply chain 
efficiency carried out by the Secretary with respect to a 
specific product, the Secretary shall consider energy 
consumption and resource use throughout the entire lifecycle of 
a product, including production, transport, packaging, use, and 
disposal.
    (e) Grants and Incentives.--
          (1) In general.--The Secretary may award grants or 
        other forms of incentives on a competitive basis to 
        eligible entities, as determined by the Secretary, for 
        the purposes of--
                  (A) studying supply chain energy resource 
                efficiency; and
                  (B) demonstrating and achieving reductions in 
                the energy resource consumption of commercial 
                products through changes and improvements to 
                the production supply and distribution chain of 
                the products.
          (2) Use of information.--Any information or data 
        generated as a result of the grants or incentives 
        described in paragraph (1) shall be used to inform the 
        development of the Supply Star Program.
    (f) Training.--The Secretary shall use funds to support 
professional training programs to develop and communicate 
methods, practices, and tools for improving supply chain 
efficiency.
    (g) Effect of Outsourcing of American Jobs.--For purposes 
of this section, the outsourcing of American jobs in the 
production of a product shall not count as a positive factor in 
determining supply chain efficiency.
    (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.
    (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;
                          (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 
                                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.
    (b) Coordination.--The Secretary shall carry out the 
initiative in coordination with the private sector and 
appropriate agencies, including the National Institute of 
Standards and Technology, to accelerate adoption of new and 
existing technologies and processes that improve energy 
efficiency.
    (c) Research and Development Program for Sustainable 
Manufacturing and Industrial Technologies and Processes.--As 
part of the industrial efficiency programs of the Department of 
Energy, the Secretary shall carry out a joint industry-
government partnership program to research, develop, and 
demonstrate new sustainable manufacturing and industrial 
technologies and processes that maximize the energy efficiency 
of industrial plants, reduce pollution, and conserve natural 
resources.

           *       *       *       *       *       *       *

                              ----------                              

                NATIONAL ENERGY CONSERVATION POLICY ACT

Public Law 95-619, as amended

           *       *       *       *       *       *       *

[SEC. 543. ENERGY MANAGEMENT REQUIREMENTS.

    [(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:

------------------------------------------------------------------------
            [Fiscal Year                     Percentage Reduction
------------------------------------------------------------------------
                        [2006                                    2
                        [2007                                    4
                        [2008                                    9
                        [2009                                   12
                        [2010                                   15
                        [2011                                   18
                        [2012                                   21
                        [2013                                   24
                        [2014                                   27
                        [2015                                   30
------------------------------------------------------------------------

    [(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.
    [(3) Not later than December 31, 2014, the Secretary shall 
review the results of the implementation of the energy 
performance requirement established under paragraph (1) and 
submit to Congress recommendations concerning energy 
performance requirements for fiscal years 2016 through 2025.]
    (a) Energy Performance Requirement for Federal Buildings.--
          (1) Requirement.--Subject to paragraph (2), each 
        agency shall apply energy conservation measures to, and 
        shall improve the design for the construction of, the 
        Federal buildings of the agency (including each 
        industrial or laboratory facility) so that the energy 
        consumption per gross square foot of the Federal 
        buildings of the agency in fiscal years 2006 through 
        2017 is reduced, as compared with the energy 
        consumption per gross square foot of the Federal 
        buildings of the agency in fiscal year 2003, by the 
        percentage specified in the following table:

------------------------------------------------------------------------
            Fiscal Year                      Percentage Reduction
------------------------------------------------------------------------
                         2006                                    2
                         2007                                    4
                         2008                                    9
                         2009                                   12
                         2010                                   15
                         2011                                   18
                         2012                                   21
                         2013                                   24
                         2014                                   27
                         2015                                   30
                         2016                                   33
                         2017                                   36
------------------------------------------------------------------------

          (2) Exclusion for buildings with energy intensive 
        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.--

           *       *       *       *       *       *       *

                  (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.
                  [(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.
                  [(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.
                  [(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 
                Organization for Standardization standard 
                numbered 50001 and entitled ``Energy Management 
                Systems''.
          [(3) Energy and water evaluations.--
                  [(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.
                  [(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.]
          [(4) Implementation of identified energy and water 
        efficiency measures.--Not later than 2 years after the 
        completion of each evaluation under paragraph (3), each 
        energy manager may--
                  [(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
                  [(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--
                                  (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 
        efficiency 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).
                          (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 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.

           *       *       *       *       *       *       *

                              ----------                              

  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 
        appraisals[; and];
          (3) that such appraisals shall be subject to 
        appropriate review for compliance with the Uniform 
        Standards of Professional Appraisal Practice[.]; 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.

           *       *       *       *       *       *       *

SEC. 1113. TRANSACTIONS REQUIRING THE SERVICES OF A STATE CERTIFIED 
                    APPRAISER.

    In determining whether an appraisal in connection with a 
federally related transaction shall be performed by a State 
certified appraiser, an agency or instrumentality under this 
title shall consider whether transactions, either individually 
or collectively, are of sufficient financial or public policy 
importance to the United States that an individual who performs 
an appraisal in connection with such transactions should be a 
State certified appraiser, except that--
          (1) a State certified appraiser shall be required for 
        all federally related transactions having a value of 
        $1,000,000 or more, or any real property on which the 
        appraiser makes adjustments using an energy efficiency 
        report; and
          (2) 1-to-4 unit, single family residential appraisals 
        may be performed by State licensed appraisers unless 
        the size and complexity requires a State certified 
        appraiser, where a complex 1-to-4 unit single family 
        residential appraisal means an appraisal for which the 
        property to be appraised, the form of ownership, the 
        property characteristics, or the market conditions are 
        atypical, or an appraisal on which the appraiser makes 
        adjustments using an energy efficiency report.

           *       *       *       *       *       *       *

                              ----------                              

UNITED STATES CODE

           *       *       *       *       *       *       *

TITLE 40--PUBLIC BUILDINGS, PROPERTY, AND WORKS

           *       *       *       *       *       *       *

Sec. 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).
    [(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 Committee 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.
    [(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).
    [(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.
    [(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.
    [(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.

           *       *       *       *       *       *       *

                                  [all]
```