IB 

Union Calendar No. 265 

114TH CONGRESS 

1ST SESSION H. R. 8 

[Report No. 114–347, Part I] 

To modernize energy infrastructure, build a 21st century energy and manufacturing workforce, bolster America’s energy security and diplomacy, and 

promote energy efficiency and government accountability, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 16, 2015 

Mr. UPTON introduced the following bill; which was referred to the Committee 

on Energy and Commerce, and in addition to the Committees on Science, 

Space, and Technology, Education and the Workforce, Oversight and 

Government Reform, and Foreign Affairs, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

NOVEMBER 19, 2015 

Reported from the Committee on Energy and Commerce 

[Strike out all after the enacting clause and insert the part printed in italic] 

NOVEMBER 19, 2015 

The Committees on Science, Space, and Technology, Education and the Workforce, Oversight and Government Reform, and Foreign Affairs discharged; committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on September 16, 2015] 

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A BILL 

To modernize energy infrastructure, build a 21st century 

energy and manufacturing workforce, bolster America’s 

energy security and diplomacy, and promote energy efficiency and government accountability, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘North American Energy Security and Infrastructure Act 

6 of 2015’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—MODERNIZING AND PROTECTING INFRASTRUCTURE 

Subtitle A—Energy Delivery, Reliability, and Security 

Sec. 1101. FERC process coordination. 

Sec. 1102. Resolving environmental and grid reliability conflicts. 

Sec. 1103. Emergency preparedness for energy supply disruptions. 

Sec. 1104. Critical electric infrastructure security. 

Sec. 1105. Strategic Transformer Reserve. 

Sec. 1106. Cyber Sense. 

Sec. 1107. State coverage and consideration of PURPA standards for electric utilities. 

Sec. 1108. Reliability analysis for certain rules that affect electric generating facilities. 

Sec. 1109. Carbon capture, utilization, and sequestration technologies. 

Sec. 1110. Reliability and performance assurance in Regional Transmission Organizations. 

Subtitle B—Energy Security and Infrastructure Modernization 

Sec. 1201. Energy Security and Infrastructure Modernization Fund. 

Subtitle C—Hydropower Regulatory Modernization 

Sec. 1301. Hydroelectric production and efficiency incentives. 

Sec. 1302. Protection of private property rights in hydropower licensing. 

Sec. 1303. Extension of time for FERC project involving W. Kerr Scott Dam. 

Sec. 1304. Hydropower licensing and process improvements. 

Sec. 1305. Judicial review of delayed Federal authorizations. 

Sec. 1306. Licensing study improvements. 

Sec. 1307. Closed-loop pumped storage projects. 

Sec. 1308. License amendment improvements. 

Sec. 1309. Promoting hydropower development at existing nonpowered dams. 

TITLE II—21ST CENTURY WORKFORCE 

Sec. 2001. Energy and manufacturing workforce development. 

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TITLE III—ENERGY SECURITY AND DIPLOMACY 

Sec. 3001. Sense of Congress. 

Sec. 3002. Energy security valuation. 

Sec. 3003. North American energy security plan. 

Sec. 3004. Collective energy security. 

Sec. 3005. Strategic Petroleum Reserve mission readiness plan. 

Sec. 3006. Authorization to export natural gas. 

TITLE IV—ENERGY EFFICIENCY AND ACCOUNTABILITY 

Subtitle A—Energy Efficiency 

CHAPTER 1—FEDERAL AGENCY ENERGY EFFICIENCY

Sec. 4111. Energy-efficient and energy-saving information technologies. 

Sec. 4112. Energy efficient data centers. 

Sec. 4113. Report on energy and water savings potential from thermal insulation. 

Sec. 4114. Federal purchase requirement. 

Sec. 4115. Energy performance requirement for Federal buildings. 

Sec. 4116. Federal building energy efficiency performance standards; certification 

system and level for Federal buildings. 

Sec. 4117. Operation of battery recharging stations in parking areas used by Federal employees. 

CHAPTER 2—ENERGY EFFICIENT TECHNOLOGY AND MANUFACTURING

Sec. 4121. Inclusion of Smart Grid capability on Energy Guide labels. 

Sec. 4122. Voluntary verification programs for air conditioning, furnace, boiler, 

heat pump, and water heater products. 

Sec. 4123. Facilitating consensus furnace standards. 

Sec. 4124. Future of Industry program. 

Sec. 4125. No warranty for certain certified Energy Star products. 

Sec. 4126. Clarification to effective date for regional standards. 

Sec. 4127. Internet of Things report. 

CHAPTER 3—ENERGY PERFORMANCE CONTRACTING

Sec. 4131. Use of energy and water efficiency measures in Federal buildings. 

CHAPTER 4—SCHOOL BUILDINGS

Sec. 4141. Coordination of energy retrofitting assistance for schools. 

CHAPTER 5—BUILDING ENERGY CODES

Sec. 4151. Greater energy efficiency in building codes. 

Sec. 4152. Voluntary nature of building asset rating program. 

CHAPTER 6—EPCA TECHNICAL CORRECTIONS AND CLARIFICATIONS

Sec. 4161. Modifying product definitions. 

Sec. 4162. Clarifying rulemaking procedures. 

CHAPTER 7—ENERGY AND WATER EFFICIENCY

Sec. 4171. Smart energy and water efficiency pilot program. 

Sec. 4172. WaterSense. 

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Subtitle B—Accountability 

CHAPTER 1—MARKET MANIPULATION, ENFORCEMENT, AND COMPLIANCE

Sec. 4211. FERC Office of Compliance Assistance and Public Participation. 

CHAPTER 2—MARKET REFORMS

Sec. 4221. GAO study on wholesale electricity markets. 

Sec. 4222. Clarification of facility merger authorization. 

CHAPTER 3—CODE MAINTENANCE

Sec. 4231. Repeal of off-highway motor vehicles study. 

Sec. 4232. Repeal of methanol study. 

Sec. 4233. Repeal of residential energy efficiency standards study. 

Sec. 4234. Repeal of weatherization study. 

Sec. 4235. Repeal of report to Congress. 

Sec. 4236. Repeal of report by General Services Administration. 

Sec. 4237. Repeal of intergovernmental energy management planning and coordination workshops. 

Sec. 4238. Repeal of Inspector General audit survey and President’s Council on 

Integrity and Efficiency report to Congress. 

Sec. 4239. Repeal of procurement and identification of energy efficient products 

program. 

Sec. 4240. Repeal of national action plan for demand response. 

Sec. 4241. Repeal of national coal policy study. 

Sec. 4242. Repeal of study on compliance problem of small electric utility systems. 

Sec. 4243. Repeal of study of socioeconomic impacts of increased coal production 

and other energy development. 

Sec. 4244. Repeal of study of the use of petroleum and natural gas in combustors. 

Sec. 4245. Repeal of submission of reports. 

Sec. 4246. Repeal of electric utility conservation plan. 

Sec. 4247. Technical amendment to Powerplant and Industrial Fuel Use Act of 

1978. 

Sec. 4248. Emergency energy conservation repeals. 

Sec. 4249. Repeal of State utility regulatory assistance. 

Sec. 4250. Repeal of survey of energy saving potential. 

Sec. 4251. Repeal of photovoltaic energy program. 

Sec. 4252. Repeal of energy auditor training and certification. 

CHAPTER 4—USE OF EXISTING FUNDS

Sec. 4261. Use of existing funds. 

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1 TITLE I—MODERNIZING AND 

2 PROTECTING INFRASTRUCTURE 

3 Subtitle A—Energy Delivery, 

4 Reliability, and Security 

5 SEC. 1101. FERC PROCESS COORDINATION. 

6 Section 15 of the Natural Gas Act (15 U.S.C. 717n) 

7 is amended— 

8 (1) by amending subsection (b)(2) to read as fol9 lows: 

10 ‘‘(2) OTHER AGENCIES.— 

11 ‘‘(A) IN GENERAL.—Each Federal and State 

12 agency considering an aspect of an application 

13 for Federal authorization shall cooperate with 

14 the Commission and comply with the deadlines 

15 established by the Commission. 

16 ‘‘(B) IDENTIFICATION.—The Commission 

17 shall identify, as early as practicable after it is 

18 notified by a prospective applicant of a potential 

19 project requiring Commission authorization, any 

20 Federal or State agency, local government, or In21 dian tribe that may consider an aspect of an ap22 plication for that Federal authorization. 

23 ‘‘(C) NOTIFICATION.— 

24 ‘‘(i) IN GENERAL.—The Commission 

25 shall notify any agency identified under 

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1 subparagraph (B) of the opportunity to co2 operate or participate in the review process. 

3 ‘‘(ii) DEADLINE.—A notification issued 

4 under clause (i) shall establish a deadline 

5 by which a response to the notification shall 

6 be submitted, which may be extended by the 

7 Commission for good cause.’’; 

8 (2) in subsection (c)— 

9 (A) in paragraph (1)— 

10 (i) by striking ‘‘and’’ at the end of sub11 paragraph (A); 

12 (ii) by redesignating subparagraph (B) 

13 as subparagraph (C); and 

14 (iii) by inserting after subparagraph 

15 (A) the following new subparagraph: 

16 ‘‘(B) set deadlines for all such Federal au17 thorizations; and’’; 

18 (B) by striking paragraph (2); and 

19 (C) by adding at the end the following new 

20 paragraphs: 

21 ‘‘(2) DEADLINE FOR FEDERAL AUTHORIZA22 TIONS.—A final decision on a Federal authorization 

23 is due no later than 90 days after the Commission 

24 issues its final environmental document, unless a 

25 schedule is otherwise established by Federal law. 

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1 ‘‘(3) CONCURRENT REVIEWS.—Each Federal and 

2 State agency considering an aspect of an application 

3 for a Federal authorization shall— 

4 ‘‘(A) carry out the obligations of that agen5 cy under applicable law concurrently, and in 

6 conjunction, with the review required by the Na7 tional Environmental Policy Act of 1969 (42 

8 U.S.C. 4321 et seq.), unless doing so would im9 pair the ability of the agency to conduct needed 

10 analysis or otherwise carry out those obligations; 

11 ‘‘(B) formulate and implement administra12 tive, policy, and procedural mechanisms to en13 able the agency to ensure completion of required 

14 Federal authorizations no later than 90 days 

15 after the Commission issues its final environ16 mental document; and 

17 ‘‘(C) transmit to the Commission a state18 ment— 

19 ‘‘(i) acknowledging receipt of the sched20 ule established under paragraph (1); and 

21 ‘‘(ii) setting forth the plan formulated 

22 under subparagraph (B) of this paragraph. 

23 ‘‘(4) ISSUE IDENTIFICATION AND RESOLUTION.— 

24 ‘‘(A) IDENTIFICATION.—Federal and State 

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1 plication for Federal authorization shall iden2 tify, as early as possible, any issues of concern 

3 that may delay or prevent an agency from work4 ing with the Commission to resolve such issues 

5 and granting such authorization. 

6 ‘‘(B) ISSUE RESOLUTION.—The Commission 

7 may forward any issue of concern identified 

8 under subparagraph (A) to the heads of the rel9 evant agencies (including, in the case of a failure 

10 by the State agency, the Federal agency over11 seeing the delegated authority) for resolution. 

12 ‘‘(5) FAILURE TO MEET SCHEDULE.—If a Fed13 eral or State agency does not complete a proceeding 

14 for an approval that is required for a Federal author15 ization in accordance with the schedule established by 

16 the Commission under paragraph (1)— 

17 ‘‘(A) the applicant may pursue remedies 

18 under section 19(d); and 

19 ‘‘(B) the head of the relevant Federal agency 

20 (including, in the case of a failure by a State 

21 agency, the Federal agency overseeing the dele22 gated authority) shall notify Congress and the 

23 Commission of such failure and set forth a rec24 ommended implementation plan to ensure com25 pletion of the proceeding for an approval.’’; 

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1 (3) by redesignating subsections (d) through (f) 

2 as subsections (g) through (i), respectively; and 

3 (4) by inserting after subsection (c) the following 

4 new subsections: 

5 ‘‘(d) REMOTE SURVEYS.—If a Federal or State agency 

6 considering an aspect of an application for Federal author7 ization requires the applicant to submit environmental 

8 data, the agency shall consider any such data gathered by 

9 aerial or other remote means that the applicant submits. 

10 The agency may grant a conditional approval for Federal 

11 authorization, conditioned on the verification of such data 

12 by subsequent onsite inspection. 

13 ‘‘(e) APPLICATION PROCESSING.—The Commission, 

14 and Federal and State agencies, may allow an applicant 

15 seeking Federal authorization to fund a third-party con16 tractor to assist in reviewing the application. 

17 ‘‘(f) ACCOUNTABILITY, TRANSPARENCY, EFFICIENCY.— 

18 For applications requiring multiple Federal authorizations, 

19 the Commission, with input from any Federal or State 

20 agency considering an aspect of an application, shall track 

21 and make available to the public on the Commission’s 

22 website information related to the actions required to com23 plete permitting, reviews, and other actions required. Such 

24 information shall include the following: 

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1 ‘‘(1) The schedule established by the Commission 

2 under subsection (c)(1). 

3 ‘‘(2) A list of all the actions required by each ap4 plicable agency to complete permitting, reviews, and 

5 other actions necessary to obtain a final decision on 

6 the Federal authorization. 

7 ‘‘(3) The expected completion date for each such 

8 action. 

9 ‘‘(4) A point of contact at the agency accountable 

10 for each such action. 

11 ‘‘(5) In the event that an action is still pending 

12 as of the expected date of completion, a brief expla13 nation of the reasons for the delay.’’. 

14 SEC. 1102. RESOLVING ENVIRONMENTAL AND GRID RELI15 ABILITY CONFLICTS. 

16 (a) COMPLIANCE WITH OR VIOLATION OF ENVIRON17 MENTAL LAWS WHILE UNDER EMERGENCY ORDER.—Sec18 tion 202(c) of the Federal Power Act (16 U.S.C. 824a(c)) 

19 is amended— 

20 (1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and 

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

22 ‘‘(2) With respect to an order issued under this sub23 section that may result in a conflict with a requirement 

24 of any Federal, State, or local environmental law or regula25 tion, the Commission shall ensure that such order requires 

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1 generation, delivery, interchange, or transmission of electric 

2 energy only during hours necessary to meet the emergency 

3 and serve the public interest, and, to the maximum extent 

4 practicable, is consistent with any applicable Federal, 

5 State, or local environmental law or regulation and mini6 mizes any adverse environmental impacts. 

7 ‘‘(3) To the extent any omission or action taken by 

8 a party, that is necessary to comply with an order issued 

9 under this subsection, including any omission or action 

10 taken to voluntarily comply with such order, results in non11 compliance with, or causes such party to not comply with, 

12 any Federal, State, or local environmental law or regula13 tion, such omission or action shall not be considered a viola14 tion of such environmental law or regulation, or subject 

15 such party to any requirement, civil or criminal liability, 

16 or a citizen suit under such environmental law or regula17 tion. 

18 ‘‘(4)(A) An order issued under this subsection that 

19 may result in a conflict with a requirement of any Federal, 

20 State, or local environmental law or regulation shall expire 

21 not later than 90 days after it is issued. The Commission 

22 may renew or reissue such order pursuant to paragraphs 

23 (1) and (2) for subsequent periods, not to exceed 90 days 

24 for each period, as the Commission determines necessary to 

25 meet the emergency and serve the public interest. 

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1 ‘‘(B) In renewing or reissuing an order under sub2 paragraph (A), the Commission shall consult with the pri3 mary Federal agency with expertise in the environmental 

4 interest protected by such law or regulation, and shall in5 clude in any such renewed or reissued order such conditions 

6 as such Federal agency determines necessary to minimize 

7 any adverse environmental impacts to the extent prac8 ticable. The conditions, if any, submitted by such Federal 

9 agency shall be made available to the public. The Commis10 sion may exclude such a condition from the renewed or re11 issued order if it determines that such condition would pre12 vent the order from adequately addressing the emergency 

13 necessitating such order and provides in the order, or other14 wise makes publicly available, an explanation of such deter15 mination. 

16 ‘‘(5) If an order issued under this subsection is subse17 quently stayed, modified, or set aside by a court pursuant 

18 to section 313 or any other provision of law, any omission 

19 or action previously taken by a party that was necessary 

20 to comply with the order while the order was in effect, in21 cluding any omission or action taken to voluntarily comply 

22 with the order, shall remain subject to paragraph (3).’’. 

23 (b) TEMPORARY CONNECTION OR CONSTRUCTION BY

24 MUNICIPALITIES.—Section 202(d) of the Federal Power Act 

25 (16 U.S.C. 824a(d)) is amended by inserting ‘‘or municimstockstill on DSK4VPTVN1PROD with BILLS

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1 pality’’ before ‘‘engaged in the transmission or sale of elec2 tric energy’’. 

3 SEC. 1103. EMERGENCY PREPAREDNESS FOR ENERGY SUP4 PLY DISRUPTIONS. 

5 (a) FINDING.—Congress finds that recent natural dis6 asters have underscored the importance of having resilient 

7 oil and natural gas infrastructure and effective ways for 

8 industry and government to communicate to address energy 

9 supply disruptions. 

10 (b) AUTHORIZATION FOR ACTIVITIES TO ENHANCE

11 EMERGENCY PREPAREDNESS FOR NATURAL DISASTERS.— 

12 The Secretary of Energy shall develop and adopt procedures 

13 to— 

14 (1) improve communication and coordination 

15 between the Department of Energy’s energy response 

16 team, Federal partners, and industry; 

17 (2) leverage the Energy Information Administra18 tion’s subject matter expertise within the Depart19 ment’s energy response team to improve supply chain 

20 situation assessments; 

21 (3) establish company liaisons and direct com22 munication with the Department’s energy response 

23 team to improve situation assessments; 

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1 (4) streamline and enhance processes for obtain2 ing temporary regulatory relief to speed up emergency 

3 response and recovery; 

4 (5) facilitate and increase engagement among 

5 States, the oil and natural gas industry, and the De6 partment in developing State and local energy assur7 ance plans; 

8 (6) establish routine education and training pro9 grams for key government emergency response posi10 tions with the Department and States; and 

11 (7) involve States and the oil and natural gas 

12 industry in comprehensive drill and exercise pro13 grams. 

14 (c) COOPERATION.—The activities carried out under 

15 subsection (b) shall include collaborative efforts with State 

16 and local government officials and the private sector. 

17 (d) REPORT.—Not later than 180 days after the date 

18 of enactment of this Act, the Secretary of Energy shall sub19 mit to Congress a report describing the effectiveness of the 

20 activities authorized under this section. 

21 SEC. 1104. CRITICAL ELECTRIC INFRASTRUCTURE SECU22 RITY. 

23 (a) CRITICAL ELECTRIC INFRASTRUCTURE SECU24 RITY.—Part II of the Federal Power Act (16 U.S.C. 824 

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1 et seq.) is amended by adding after section 215 the following 

2 new section: 

3 ‘‘SEC. 215A. CRITICAL ELECTRIC INFRASTRUCTURE SECU4 RITY. 

5 ‘‘(a) DEFINITIONS.—For purposes of this section: 

6 ‘‘(1) BULK-POWER SYSTEM; ELECTRIC RELI7 ABILITY ORGANIZATION; REGIONAL ENTITY.—The 

8 terms ‘bulk-power system’, ‘Electric Reliability Orga9 nization’, and ‘regional entity’ have the meanings 

10 given such terms in paragraphs (1), (2), and (7) of 

11 section 215(a), respectively. 

12 ‘‘(2) CRITICAL ELECTRIC INFRASTRUCTURE.— 

13 The term ‘critical electric infrastructure’ means a sys14 tem or asset of the bulk-power system, whether phys15 ical or virtual, the incapacity or destruction of which 

16 would negatively affect national security, economic se17 curity, public health or safety, or any combination of 

18 such matters. 

19 ‘‘(3) CRITICAL ELECTRIC INFRASTRUCTURE IN20 FORMATION.—The term ‘critical electric infrastruc21 ture information’ means information related to crit22 ical electric infrastructure, or proposed critical elec23 trical infrastructure, generated by or provided to the 

24 Commission or other Federal agency, other than clas25 sified national security information, that is desmstockstill on DSK4VPTVN1PROD with BILLS

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1 ignated as critical electric infrastructure information 

2 by the Commission under subsection (d)(2). Such 

3 term includes information that qualifies as critical 

4 energy infrastructure information under the Commis5 sion’s regulations. 

6 ‘‘(4) DEFENSE CRITICAL ELECTRIC INFRASTRUC7 TURE.—The term ‘defense critical electric infrastruc8 ture’ means any electric infrastructure located in the 

9 United States (including the territories) that serves a 

10 facility designated by the Secretary pursuant to sub11 section (c), but is not owned or operated by the owner 

12 or operator of such facility. 

13 ‘‘(5) ELECTROMAGNETIC PULSE.—The term ‘elec14 tromagnetic pulse’ means 1 or more pulses of electro15 magnetic energy emitted by a device capable of dis16 abling or disrupting operation of, or destroying, elec17 tronic devices or communications networks, including 

18 hardware, software, and data, by means of such a 

19 pulse. 

20 ‘‘(6) GEOMAGNETIC STORM.—The term ‘geo21 magnetic storm’ means a temporary disturbance of 

22 the Earth’s magnetic field resulting from solar activ23 ity. 

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1 ‘‘(7) GRID SECURITY EMERGENCY.—The term 

2 ‘grid security emergency’ means the occurrence or im3 minent danger of— 

4 ‘‘(A)(i) a malicious act using electronic 

5 communication or an electromagnetic pulse, or a 

6 geomagnetic storm event, that could disrupt the 

7 operation of those electronic devices or commu8 nications networks, including hardware, soft9 ware, and data, that are essential to the reli10 ability of critical electric infrastructure or of de11 fense critical electric infrastructure; and 

12 ‘‘(ii) disruption of the operation of such de13 vices or networks, with significant adverse effects 

14 on the reliability of critical electric infrastruc15 ture or of defense critical electric infrastructure, 

16 as a result of such act or event; or 

17 ‘‘(B)(i) a direct physical attack on critical 

18 electric infrastructure or on defense critical elec19 tric infrastructure; and 

20 ‘‘(ii) significant adverse effects on the reli21 ability of critical electric infrastructure or of de22 fense critical electric infrastructure as a result of 

23 such physical attack. 

24 ‘‘(8) SECRETARY.—The term ‘Secretary’ means 

25 the Secretary of Energy. 

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1 ‘‘(b) AUTHORITY TO ADDRESS GRID SECURITY EMER2 GENCY.— 

3 ‘‘(1) AUTHORITY.—Whenever the President issues 

4 and provides to the Secretary a written directive or 

5 determination identifying a grid security emergency, 

6 the Secretary may, with or without notice, hearing, or 

7 report, issue such orders for emergency measures as 

8 are necessary in the judgment of the Secretary to pro9 tect or restore the reliability of critical electric infra10 structure or of defense critical electric infrastructure 

11 during such emergency. As soon as practicable but not 

12 later than 180 days after the date of enactment of this 

13 section, the Secretary shall, after notice and oppor14 tunity for comment, establish rules of procedure that 

15 ensure that such authority can be exercised expedi16 tiously. 

17 ‘‘(2) NOTIFICATION OF CONGRESS.—Whenever 

18 the President issues and provides to the Secretary a 

19 written directive or determination under paragraph 

20 (1), the President shall promptly notify congressional 

21 committees of relevant jurisdiction, including the 

22 Committee on Energy and Commerce of the House of 

23 Representatives and the Committee on Energy and 

24 Natural Resources of the Senate, of the contents of, 

25 and justification for, such directive or determination. 

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1 ‘‘(3) CONSULTATION.—Before issuing an order 

2 for emergency measures under paragraph (1), the Sec3 retary shall, to the extent practicable in light of the 

4 nature of the grid security emergency and the urgency 

5 of the need for action, consult with appropriate gov6 ernmental authorities in Canada and Mexico, entities 

7 described in paragraph (4), the Electricity Sub-sector 

8 Coordinating Council, the Commission, and other ap9 propriate Federal agencies regarding implementation 

10 of such emergency measures. 

11 ‘‘(4) APPLICATION.—An order for emergency 

12 measures under this subsection may apply to— 

13 ‘‘(A) the Electric Reliability Organization; 

14 ‘‘(B) a regional entity; or 

15 ‘‘(C) any owner, user, or operator of critical 

16 electric infrastructure or of defense critical elec17 tric infrastructure within the United States. 

18 ‘‘(5) EXPIRATION AND REISSUANCE.— 

19 ‘‘(A) IN GENERAL.—Except as provided in 

20 subparagraph (B), an order for emergency meas21 ures issued under paragraph (1) shall expire no 

22 later than 15 days after its issuance. 

23 ‘‘(B) EXTENSIONS.—The Secretary may re24 issue an order for emergency measures issued 

25 under paragraph (1) for subsequent periods, not 

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1 to exceed 15 days for each such period, provided 

2 that the President, for each such period, issues 

3 and provides to the Secretary a written directive 

4 or determination that the grid security emer5 gency identified under paragraph (1) continues 

6 to exist or that the emergency measure continues 

7 to be required. 

8 ‘‘(6) COST RECOVERY.— 

9 ‘‘(A) CRITICAL ELECTRIC INFRASTRUC10 TURE.—If the Commission determines that own11 ers, operators, or users of critical electric infra12 structure have incurred substantial costs to com13 ply with an order for emergency measures issued 

14 under this subsection and that such costs were 

15 prudently incurred and cannot reasonably be re16 covered through regulated rates or market prices 

17 for the electric energy or services sold by such 

18 owners, operators, or users, the Commission 

19 shall, consistent with the requirements of section 

20 205, after notice and an opportunity for com21 ment, establish a mechanism that permits such 

22 owners, operators, or users to recover such costs. 

23 ‘‘(B) DEFENSE CRITICAL ELECTRIC INFRA24 STRUCTURE.—To the extent the owner or oper25 ator of defense critical electric infrastructure is 

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1 required to take emergency measures pursuant to 

2 an order issued under this subsection, the owners 

3 or operators of a critical defense facility or fa4 cilities designated by the Secretary pursuant to 

5 subsection (c) that rely upon such infrastructure 

6 shall bear the full incremental costs of the meas7 ures. 

8 ‘‘(7) TEMPORARY ACCESS TO CLASSIFIED INFOR9 MATION.—The Secretary, and other appropriate Fed10 eral agencies, shall, to the extent practicable and con11 sistent with their obligations to protect classified in12 formation, provide temporary access to classified in13 formation related to a grid security emergency for 

14 which emergency measures are issued under para15 graph (1) to key personnel of any entity subject to 

16 such emergency measures to enable optimum commu17 nication between the entity and the Secretary and 

18 other appropriate Federal agencies regarding the grid 

19 security emergency. 

20 ‘‘(c) DESIGNATION OF CRITICAL DEFENSE FACILI21 TIES.—Not later than 180 days after the date of enactment 

22 of this section, the Secretary, in consultation with other ap23 propriate Federal agencies and appropriate owners, users, 

24 or operators of infrastructure that may be defense critical 

25 electric infrastructure, shall identify and designate facilities 

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1 located in the United States (including the territories) that 

2 are— 

3 ‘‘(1) critical to the defense of the United States; 

4 and 

5 ‘‘(2) vulnerable to a disruption of the supply of 

6 electric energy provided to such facility by an exter7 nal provider. 

8 The Secretary may, in consultation with appropriate Fed9 eral agencies and appropriate owners, users, or operators 

10 of defense critical electric infrastructure, periodically revise 

11 the list of designated facilities as necessary. 

12 ‘‘(d) PROTECTION AND SHARING OF CRITICAL ELEC13 TRIC INFRASTRUCTURE INFORMATION.— 

14 ‘‘(1) PROTECTION OF CRITICAL ELECTRIC INFRA15 STRUCTURE INFORMATION.—Critical electric infra16 structure information— 

17 ‘‘(A) shall be exempt from disclosure under 

18 section 552(b)(3) of title 5, United States Code; 

19 and 

20 ‘‘(B) shall not be made available by any 

21 Federal, State, political subdivision or tribal au22 thority pursuant to any Federal, State, political 

23 subdivision or tribal law requiring public disclo24 sure of information or records. 

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1 ‘‘(2) DESIGNATION AND SHARING OF CRITICAL

2 ELECTRIC INFRASTRUCTURE INFORMATION.—Not later 

3 than one year after the date of enactment of this sec4 tion, the Commission, in consultation with the Sec5 retary of Energy, shall promulgate such regulations 

6 and issue such orders as necessary to— 

7 ‘‘(A) designate information as critical elec8 tric infrastructure information; 

9 ‘‘(B) prohibit the unauthorized disclosure of 

10 critical electric infrastructure information; 

11 ‘‘(C) ensure there are appropriate sanctions 

12 in place for Commissioners, officers, employees, 

13 or agents of the Commission who knowingly and 

14 willfully disclose critical electric infrastructure 

15 information in a manner that is not authorized 

16 under this section; and 

17 ‘‘(D) taking into account standards of the 

18 Electric Reliability Organization, facilitate vol19 untary sharing of critical electric infrastructure 

20 information with, between, and by— 

21 ‘‘(i) Federal, State, political subdivi22 sion, and tribal authorities; 

23 ‘‘(ii) the Electric Reliability Organiza24 tion; 

25 ‘‘(iii) regional entities; 

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1 ‘‘(iv) information sharing and analysis 

2 centers established pursuant to Presidential 

3 Decision Directive 63; 

4 ‘‘(v) owners, operators, and users of 

5 critical electric infrastructure in the United 

6 States; and 

7 ‘‘(vi) other entities determined appro8 priate by the Commission. 

9 ‘‘(3) CONSIDERATIONS.—In promulgating regu10 lations and issuing orders under paragraph (2), the 

11 Commission shall take into consideration the role of 

12 State commissions in reviewing the prudence and cost 

13 of investments, determining the rates and terms of 

14 conditions for electric services, and ensuring the safe15 ty and reliability of the bulk-power system and dis16 tribution facilities within their respective jurisdic17 tions. 

18 ‘‘(4) PROTOCOLS.—The Commission shall, in 

19 consultation with Canadian and Mexican authorities, 

20 develop protocols for the voluntary sharing of critical 

21 electric infrastructure information with Canadian 

22 and Mexican authorities and owners, operators, and 

23 users of the bulk-power system outside the United 

24 States. 

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1 ‘‘(5) NO REQUIRED SHARING OF INFORMATION.— 

2 Nothing in this section shall require a person or enti3 ty in possession of critical electric infrastructure in4 formation to share such information with Federal, 

5 State, political subdivision, or tribal authorities, or 

6 any other person or entity. 

7 ‘‘(6) SUBMISSION OF INFORMATION TO CON8 GRESS.—Nothing in this section shall permit or au9 thorize the withholding of information from Congress, 

10 any committee or subcommittee thereof, or the Comp11 troller General. 

12 ‘‘(7) DISCLOSURE OF NONPROTECTED INFORMA13 TION.—In implementing this section, the Commission 

14 shall protect from disclosure only the minimum 

15 amount of information necessary to protect the secu16 rity and reliability of the bulk-power system and dis17 tribution facilities. The Commission shall segregate 

18 critical electric infrastructure information within 

19 documents and electronic communications, wherever 

20 feasible, to facilitate disclosure of information that is 

21 not designated as critical electric infrastructure infor22 mation. 

23 ‘‘(8) DURATION OF DESIGNATION.—Information 

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1 ture information for longer than 5 years, unless spe2 cifically re-designated by the Commission. 

3 ‘‘(9) REMOVAL OF DESIGNATION.—The Commis4 sion shall remove the designation of critical electric 

5 infrastructure information, in whole or in part, from 

6 a document or electronic communication if the Com7 mission determines that the unauthorized disclosure of 

8 such information could no longer be used to impair 

9 the security or reliability of the bulk-power system or 

10 distribution facilities. 

11 ‘‘(10) JUDICIAL REVIEW OF DESIGNATIONS.— 

12 Notwithstanding section 313(b), any determination 

13 by the Commission concerning the designation of crit14 ical electric infrastructure information under this 

15 subsection shall be subject to review under chapter 7 

16 of title 5, United States Code, except that such review 

17 shall be brought in the district court of the United 

18 States in the district in which the complainant re19 sides, or has his principal place of business, or in the 

20 District of Columbia. In such a case the court shall 

21 examine in camera the contents of documents or elec22 tronic communications that are the subject of the de23 termination under review to determine whether such 

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1 ignated or not designated as critical electric infra2 structure information. 

3 ‘‘(e) SECURITY CLEARANCES.—The Secretary shall fa4 cilitate and, to the extent practicable, expedite the acquisi5 tion of adequate security clearances by key personnel of any 

6 entity subject to the requirements of this section, to enable 

7 optimum communication with Federal agencies regarding 

8 threats to the security of the critical electric infrastructure. 

9 The Secretary, the Commission, and other appropriate Fed10 eral agencies shall, to the extent practicable and consistent 

11 with their obligations to protect classified and critical elec12 tric infrastructure information, share timely actionable in13 formation regarding grid security with appropriate key 

14 personnel of owners, operators, and users of the critical elec15 tric infrastructure. 

16 ‘‘(f) CLARIFICATIONS OF LIABILITY.— 

17 ‘‘(1) COMPLIANCE WITH OR VIOLATION OF THIS

18 ACT.—Except as provided in paragraph (4), to the ex19 tent any action or omission taken by an entity that 

20 is necessary to comply with an order for emergency 

21 measures issued under subsection (b)(1), including 

22 any action or omission taken to voluntarily comply 

23 with such order, results in noncompliance with, or 

24 causes such entity not to comply with any rule, order, 

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1 liability standard approved by the Commission pur2 suant to section 215, such action or omission shall 

3 not be considered a violation of such rule, order, regu4 lation, or provision. 

5 ‘‘(2) RELATION TO SECTION 202(c).—Except as 

6 provided in paragraph (4), an action or omission 

7 taken by an owner, operator, or user of critical elec8 tric infrastructure or of defense critical electric infra9 structure to comply with an order for emergency 

10 measures issued under subsection (b)(1) shall be treat11 ed as an action or omission taken to comply with an 

12 order issued under section 202(c) for purposes of such 

13 section. 

14 ‘‘(3) SHARING OR RECEIPT OF INFORMATION.— 

15 No cause of action shall lie or be maintained in any 

16 Federal or State court for the sharing or receipt of in17 formation under, and that is conducted in accordance 

18 with, subsection (d). 

19 ‘‘(4) RULE OF CONSTRUCTION.—Nothing in this 

20 subsection shall be construed to require dismissal of a 

21 cause of action against an entity that, in the course 

22 of complying with an order for emergency measures 

23 issued under subsection (b)(1) by taking an action or 

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1 graph (1) or (2), takes such action or omission in a 

2 grossly negligent manner.’’. 

3 (b) CONFORMING AMENDMENTS.— 

4 (1) JURISDICTION.—Section 201(b)(2) of the 

5 Federal Power Act (16 U.S.C. 824(b)(2)) is amended 

6 by inserting ‘‘215A,’’ after ‘‘215,’’ each place it ap7 pears. 

8 (2) PUBLIC UTILITY.—Section 201(e) of the Fed9 eral Power Act (16 U.S.C. 824(e)) is amended by in10 serting ‘‘215A,’’ after ‘‘215,’’. 

11 SEC. 1105. STRATEGIC TRANSFORMER RESERVE. 

12 (a) FINDING.—Congress finds that the storage of stra13 tegically located spare large power transformers and emer14 gency mobile substations will reduce the vulnerability of the 

15 United States to multiple risks facing electric grid reli16 ability, including physical attack, cyber attack, electro17 magnetic pulse, geomagnetic disturbances, severe weather, 

18 and seismic events. 

19 (b) DEFINITIONS.—In this section: 

20 (1) BULK-POWER SYSTEM.—The term ‘‘bulk21 power system’’ has the meaning given such term in 

22 section 215(a) of the Federal Power Act (16 U.S.C. 

23 824o(a)). 

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1 (2) CRITICALLY DAMAGED LARGE POWER TRANS2 FORMER.—The term ‘‘critically damaged large power 

3 transformer’’ means a large power transformer that— 

4 (A) has sustained extensive damage such 

5 that— 

6 (i) repair or refurbishment is not eco7 nomically viable; or 

8 (ii) the extensive time to repair or re9 furbish the large power transformer would 

10 create an extended period of instability in 

11 the bulk-power system; and 

12 (B) prior to sustaining such damage, was 

13 part of the bulk-power system. 

14 (3) CRITICAL ELECTRIC INFRASTRUCTURE.—The 

15 term ‘‘critical electric infrastructure’’ has the mean16 ing given that term in section 215A of the Federal 

17 Power Act. 

18 (4) ELECTRIC RELIABILITY ORGANIZATION.—The 

19 term ‘‘Electric Reliability Organization’’ has the 

20 meaning given such term in section 215(a) of the Fed21 eral Power Act (16 U.S.C. 824o(a)). 

22 (5) EMERGENCY MOBILE SUBSTATION.—The 

23 term ‘‘emergency mobile substation’’ means a mobile 

24 substation or mobile transformer that is— 

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1 (A) assembled and permanently mounted on 

2 a trailer that is capable of highway travel and 

3 meets relevant Department of Transportation 

4 regulations; and 

5 (B) intended for express deployment and ca6 pable of being rapidly placed into service. 

7 (6) LARGE POWER TRANSFORMER.—The term 

8 ‘‘large power transformer’’ means a power trans9 former with a maximum nameplate rating of 100 

10 megavolt-amperes or higher, including related critical 

11 equipment, that is, or is intended to be, a part of the 

12 bulk-power system. 

13 (7) SECRETARY.—The term ‘‘Secretary’’ means 

14 the Secretary of Energy. 

15 (8) SPARE LARGE POWER TRANSFORMER.—The 

16 term ‘‘spare large power transformer’’ means a large 

17 power transformer that is stored within the Strategic 

18 Transformer Reserve to be available to temporarily 

19 replace a critically damaged large power transformer. 

20 (c) STRATEGIC TRANSFORMER RESERVE PLAN.— 

21 (1) PLAN.—Not later than one year after the 

22 date of enactment of this Act, the Secretary, acting 

23 through the Office of Electricity Delivery and Energy 

24 Reliability, shall, in consultation with the Federal 

25 Energy Regulatory Commission, the Electricity Submstockstill on DSK4VPTVN1PROD with BILLS

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1 sector Coordinating Council, the Electric Reliability 

2 Organization, and owners and operators of critical 

3 electric infrastructure and defense and military in4 stallations, prepare and submit to Congress a plan to 

5 establish a Strategic Transformer Reserve for the stor6 age, in strategically located facilities, of spare large 

7 power transformers and emergency mobile substations 

8 in sufficient numbers to temporarily replace critically 

9 damaged large power transformers and substations 

10 that are critical electric infrastructure or serve de11 fense and military installations. 

12 (2) INCLUSIONS.—The Strategic Transformer 

13 Reserve plan shall include a description of— 

14 (A) the appropriate number and type of 

15 spare large power transformers necessary to pro16 vide or restore sufficient resiliency to the bulk17 power system, critical electric infrastructure, 

18 and defense and military installations to miti19 gate significant impacts to the electric grid re20 sulting from— 

21 (i) physical attack; 

22 (ii) cyber attack; 

23 (iii) electromagnetic pulse attack; 

24 (iv) geomagnetic disturbances; 

25 (v) severe weather; or 

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1 (vi) seismic events; 

2 (B) other critical electric grid equipment for 

3 which an inventory of spare equipment, includ4 ing emergency mobile substations, is necessary to 

5 provide or restore sufficient resiliency to the 

6 bulk-power system, critical electric infrastruc7 ture, and defense and military installations; 

8 (C) the degree to which utility sector actions 

9 or initiatives, including individual utility own10 ership of spare equipment, joint ownership of 

11 spare equipment inventory, sharing agreements, 

12 or other spare equipment reserves or arrange13 ments, satisfy the needs identified under sub14 paragraphs (A) and (B); 

15 (D) the potential locations for, and feasi16 bility and appropriate number of, strategic stor17 age locations for reserve equipment, including 

18 consideration of— 

19 (i) the physical security of such loca20 tions; 

21 (ii) the protection of the confidentiality 

22 of such locations; and 

23 (iii) the proximity of such locations to 

24 sites of potentially critically damaged large 

25 power transformers and substations that are 

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1 critical electric infrastructure or serve de2 fense and military installations, so as to en3 able efficient delivery of equipment to such 

4 sites; 

5 (E) the necessary degree of flexibility of 

6 spare large power transformers to be included in 

7 the Strategic Transformer Reserve to conform to 

8 different substation configurations, including 

9 consideration of transformer— 

10 (i) power and voltage rating for each 

11 winding; 

12 (ii) overload requirements; 

13 (iii) impedance between windings; 

14 (iv) configuration of windings; and 

15 (v) tap requirements; 

16 (F) an estimate of the direct cost of the 

17 Strategic Transformer Reserve, as proposed, in18 cluding— 

19 (i) the cost of storage facilities; 

20 (ii) the cost of the equipment; and 

21 (iii) management, maintenance, and 

22 operation costs; 

23 (G) the funding options available to estab24 lish, stock, manage, and maintain the Strategic 

25 Transformer Reserve, including consideration of 

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1 fees on owners and operators of bulk-power sys2 tem facilities, critical electric infrastructure, and 

3 defense and military installations relying on the 

4 Strategic Transformer Reserve, use of Federal 

5 appropriations, and public-private cost-sharing 

6 options; 

7 (H) the ease and speed of transportation, 

8 installation, and energization of spare large 

9 power transformers to be included in the Stra10 tegic Transformer Reserve, including consider11 ation of factors such as— 

12 (i) transformer transportation weight; 

13 (ii) transformer size; 

14 (iii) topology of critical substations; 

15 (iv) availability of appropriate trans16 former mounting pads; 

17 (v) flexibility of the spare large power 

18 transformers as described in subparagraph 

19 (E); and 

20 (vi) ability to rapidly transition a 

21 spare large power transformer from storage 

22 to energization; 

23 (I) eligibility criteria for withdrawal of 

24 equipment from the Strategic Transformer Re25 serve; 

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1 (J) the process by which owners or opera2 tors of critically damaged large power trans3 formers or substations that are critical electric 

4 infrastructure or serve defense and military in5 stallations may apply for a withdrawal from the 

6 Strategic Transformer Reserve; 

7 (K) the process by which equipment with8 drawn from the Strategic Transformer Reserve is 

9 returned to the Strategic Transformer Reserve or 

10 is replaced; 

11 (L) possible fees to be paid by users of 

12 equipment withdrawn from the Strategic Trans13 former Reserve; 

14 (M) possible fees to be paid by owners and 

15 operators of large power transformers and sub16 stations that are critical electric infrastructure 

17 or serve defense and military installations to 

18 cover operating costs of the Strategic Trans19 former Reserve; 

20 (N) the domestic and international large 

21 power transformer supply chain; 

22 (O) the potential reliability, cost, and oper23 ational benefits of including emergency mobile 

24 substations in any Strategic Transformer Re25 serve established under this section; and 

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1 (P) other considerations for designing, con2 structing, stocking, funding, and managing the 

3 Strategic Transformer Reserve. 

4 (d) ESTABLISHMENT.—The Secretary may establish a 

5 Strategic Transformer Reserve in accordance with the plan 

6 prepared pursuant to subsection (c) after the date that is 

7 6 months after the date on which such plan is submitted 

8 to Congress. 

9 (e) DISCLOSURE OF INFORMATION.—Any information 

10 included in the Strategic Transformer Reserve plan, or 

11 shared in the preparation and development of such plan, 

12 the disclosure of which could cause harm to critical electric 

13 infrastructure, shall be exempt from disclosure under sec14 tion 552(b)(3) of title 5, United States Code, and any State, 

15 tribal, or local law requiring disclosure of information or 

16 records. 

17 SEC. 1106. CYBER SENSE. 

18 (a) IN GENERAL.—The Secretary of Energy shall es19 tablish a voluntary Cyber Sense program to identify and 

20 promote cyber-secure products intended for use in the bulk21 power system, as defined in section 215(a) of the Federal 

22 Power Act (16 U.S.C. 824o(a)). 

23 (b) PROGRAM REQUIREMENTS.—In carrying out sub24 section (a), the Secretary of Energy shall— 

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1 (1) establish a Cyber Sense testing process to 

2 identify products and technologies intended for use in 

3 the bulk-power system, including products relating to 

4 industrial control systems, such as supervisory control 

5 and data acquisition systems; 

6 (2) for products tested and identified under the 

7 Cyber Sense program, establish and maintain cyber8 security vulnerability reporting processes and a re9 lated database; 

10 (3) promulgate regulations regarding vulner11 ability reporting processes for products tested and 

12 identified under the Cyber Sense program; 

13 (4) provide technical assistance to utilities, prod14 uct manufacturers, and other electric sector stake15 holders to develop solutions to mitigate identified 

16 vulnerabilities in products tested and identified under 

17 the Cyber Sense program; 

18 (5) biennially review products tested and identi19 fied under the Cyber Sense program for 

20 vulnerabilities and provide analysis with respect to 

21 how such products respond to and mitigate cyber 

22 threats; 

23 (6) develop procurement guidance for utilities for 

24 products tested and identified under the Cyber Sense 

25 program; 

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1 (7) provide reasonable notice to the public, and 

2 solicit comments from the public, prior to establishing 

3 or revising the Cyber Sense testing process; 

4 (8) oversee Cyber Sense testing carried out by 

5 third parties; and 

6 (9) consider incentives to encourage the use in 

7 the bulk-power system of products tested and identi8 fied under the Cyber Sense program. 

9 (c) DISCLOSURE OF INFORMATION.—Any vulner10 ability reported pursuant to regulations promulgated under 

11 subsection (b)(3), the disclosure of which could cause harm 

12 to critical electric infrastructure (as defined in section 215A 

13 of the Federal Power Act), shall be exempt from disclosure 

14 under section 552(b)(3) of title 5, United States Code, and 

15 any State, tribal, or local law requiring disclosure of infor16 mation or records. 

17 (d) FEDERAL GOVERNMENT LIABILITY.—Consistent 

18 with other voluntary Federal Government certification pro19 grams, nothing in this section shall be construed to author20 ize the commencement of an action against the United 

21 States Government with respect to the testing and identi22 fication of a product under the Cyber Sense program. 

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1 SEC. 1107. STATE COVERAGE AND CONSIDERATION OF 

2 PURPA STANDARDS FOR ELECTRIC UTILI3 TIES. 

4 (a) STATE CONSIDERATION OF RESILIENCY AND AD5 VANCED ENERGY ANALYTICS TECHNOLOGIES AND RELI6 ABLE GENERATION.— 

7 (1) CONSIDERATION.—Section 111(d) of the Pub8 lic Utility Regulatory Policies Act of 1978 (16 U.S.C. 

9 2621(d)) is amended by adding the following at the 

10 end: 

11 ‘‘(20) IMPROVING THE RESILIENCE OF ELECTRIC

12 INFRASTRUCTURE.— 

13 ‘‘(A) IN GENERAL.—Each electric utility 

14 shall develop a plan to use resiliency-related 

15 technologies, upgrades, measures, and other ap16 proaches designed to improve the resilience of 

17 electric infrastructure, mitigate power outages, 

18 continue delivery of vital services, and maintain 

19 the flow of power to facilities critical to public 

20 health, safety, and welfare, to the extent prac21 ticable using the most current data, metrics, and 

22 frameworks related to current and future threats, 

23 including physical and cyber attacks, electro24 magnetic pulse attacks, geomagnetic disturb25 ances, seismic events, and severe weather and 

26 other environmental stressors. 

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1 ‘‘(B) RESILIENCY-RELATED TECH2 NOLOGIES.—For purposes of this paragraph, ex3 amples of resiliency-related technologies, up4 grades, measures, and other approaches in5 clude— 

6 ‘‘(i) hardening, or other enhanced pro7 tection, of utility poles, wiring, cabling, and 

8 other distribution components, facilities, or 

9 structures; 

10 ‘‘(ii) advanced grid technologies capa11 ble of isolating or repairing problems re12 motely, such as advanced metering infra13 structure, high-tech sensors, grid monitoring 

14 and control systems, and remote reconfig15 uration and redundancy systems; 

16 ‘‘(iii) cybersecurity products and com17 ponents; 

18 ‘‘(iv) distributed generation, including 

19 back-up generation to power critical facili20 ties and essential services, and related inte21 gration components, such as advanced in22 verter technology; 

23 ‘‘(v) microgrid systems, including hy24 brid microgrid systems for isolated commu25 nities; 

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1 ‘‘(vi) combined heat and power; 

2 ‘‘(vii) waste heat resources; 

3 ‘‘(viii) non-grid-scale energy storage 

4 technologies; 

5 ‘‘(ix) wiring, cabling, and other dis6 tribution components, including submersible 

7 distribution components, and enclosures; 

8 ‘‘(x) electronically controlled reclosers 

9 and similar technologies for power restora10 tion, including emergency mobile sub11 stations, as defined in section 1105 of the 

12 North American Energy Security and In13 frastructure Act of 2015; 

14 ‘‘(xi) advanced energy analytics tech15 nology, such as Internet-based and cloud16 based computing solutions and subscription 

17 licensing models; 

18 ‘‘(xii) measures that enhance resilience 

19 through planning, preparation, response, 

20 and recovery activities; 

21 ‘‘(xiii) operational capabilities to en22 hance resilience through rapid response re23 covery; and 

24 ‘‘(xiv) measures to ensure availability 

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1 tracts, cooperative agreements, stockpiling 

2 and prepositioning, or other measures. 

3 ‘‘(C) RATE RECOVERY.—Each State regu4 latory authority (with respect to each electric 

5 utility for which it has ratemaking authority) 

6 shall consider authorizing each such electric util7 ity to recover any capital, operating expenditure, 

8 or other costs of the electric utility related to the 

9 procurement, deployment, or use of resiliency-re10 lated technologies, including a reasonable rate of 

11 return on the capital expenditures of the electric 

12 utility for the procurement, deployment, or use of 

13 resiliency-related technologies. 

14 ‘‘(21) PROMOTING INVESTMENTS IN ADVANCED

15 ENERGY ANALYTICS TECHNOLOGY.— 

16 ‘‘(A) IN GENERAL.—Each electric utility 

17 shall develop and implement a plan for deploy18 ing advanced energy analytics technology. 

19 ‘‘(B) RATE RECOVERY.—Each State regu20 latory authority (with respect to each electric 

21 utility for which it has ratemaking authority) 

22 shall consider confirming and clarifying, if nec23 essary, that each such electric utility is author24 ized to recover the costs of the electric utility re25 lating to the procurement, deployment, or use of 

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1 advanced energy analytics technology, including 

2 a reasonable rate of return on all such costs in3 curred by the electric utility for the procurement, 

4 deployment, or use of advanced energy analytics 

5 technology, provided such technology is used by 

6 the electric utility for purposes of realizing oper7 ational efficiencies, cost savings, enhanced energy 

8 management and customer engagement, improve9 ments in system reliability, safety, and cyberse10 curity, or other benefits to ratepayers. 

11 ‘‘(C) ADVANCED ENERGY ANALYTICS TECH12 NOLOGY.—For purposes of this paragraph, exam13 ples of advanced energy analytics technology in14 clude Internet-based and cloud-based computing 

15 solutions and subscription licensing models, in16 cluding software as a service that uses cyber17 physical systems to allow the correlation of data 

18 aggregated from appropriate data sources and 

19 smart grid sensor networks, employs analytics 

20 and machine learning, or employs other ad21 vanced computing solutions and models. 

22 ‘‘(22) ASSURING ELECTRIC RELIABILITY WITH

23 RELIABLE GENERATION.— 

24 ‘‘(A) ASSURANCE OF ELECTRIC RELI25 ABILITY.—Each electric utility shall adopt or 

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1 modify policies to ensure that such electric util2 ity incorporates reliable generation into its inte3 grated resource plan to assure the availability of 

4 electric energy over a 10-year planning period. 

5 ‘‘(B) RELIABLE GENERATION.—For pur6 poses of this paragraph, ‘reliable generation’ 

7 means electric generation facilities with reli8 ability attributes that include— 

9 ‘‘(i)(I) possession of adequate fuel on10 site to enable operation for an extended pe11 riod of time; 

12 ‘‘(II) the operational ability to gen13 erate electric energy from more than one 

14 source; or 

15 ‘‘(III) fuel certainty, through firm con16 tractual obligations, that ensures adequate 

17 fuel supply to enable operation, for an ex18 tended period of time, for the duration of an 

19 emergency or severe weather conditions; 

20 ‘‘(ii) operational characteristics that 

21 enable the generation of electric energy for 

22 the duration of an emergency or severe 

23 weather conditions; and 

24 ‘‘(iii) unless procured through other 

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1 ability services, including frequency support 

2 and regulation services. 

3 ‘‘(23) SUBSIDIZATION OF CUSTOMER-SIDE TECH4 NOLOGY.— 

5 ‘‘(A) CONSIDERATION.—To the extent that a 

6 State regulatory authority may require or allow 

7 rates charged by any electric utility for which it 

8 has ratemaking authority to electric consumers 

9 that do not use a customer-side technology to in10 clude any cost, fee, or charge that directly or in11 directly cross-subsidizes the deployment, con12 struction, maintenance, or operation of that cus13 tomer-side technology, such authority shall evalu14 ate whether subsidizing the deployment, con15 struction, maintenance, or operation of a cus16 tomer-side technology would— 

17 ‘‘(i) result in benefits predominately 

18 enjoyed by only the users of that customer19 side technology; 

20 ‘‘(ii) shift costs of a customer-side tech21 nology to electricity consumers that do not 

22 use that customer-side technology, particu23 larly where disparate economic or resource 

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1 sumers cross-subsidizing the costumer-side 

2 technology; 

3 ‘‘(iii) negatively affect resource utiliza4 tion, fuel diversity, or grid security; 

5 ‘‘(iv) provide any unfair competitive 

6 advantage to market the customer-side tech7 nology; and 

8 ‘‘(v) be necessary to fulfill an obliga9 tion to serve electric consumers. 

10 ‘‘(B) PUBLIC NOTICE.—Each State regu11 latory authority shall make available to the pub12 lic the evaluation completed under subparagraph 

13 (A) at least 90 days prior to any proceedings in 

14 which such authority considers the cross-sub15 sidization of a customer-side technology. 

16 ‘‘(C) CUSTOMER-SIDE TECHNOLOGY.—For 

17 purposes of this paragraph, the term ‘customer18 side technology’ means a device connected to the 

19 electricity distribution system— 

20 ‘‘(i) at, or on the customer side of, the 

21 meter; or 

22 ‘‘(ii) that, if owned or operated by or 

23 on behalf of an electric utility, would other24 wise be at, or on the customer side of, the 

25 meter.’’. 

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1 (2) COMPLIANCE.— 

2 (A) TIME LIMITATIONS.—Section 112(b) of 

3 the Public Utility Regulatory Policies Act of 

4 1978 (16 U.S.C. 2622(b)) is amended by adding 

5 at the end the following: 

6 ‘‘(7)(A) Not later than 1 year after the date of 

7 enactment of this paragraph, each State regulatory 

8 authority (with respect to each electric utility for 

9 which it has ratemaking authority) and each non10 regulated electric utility, as applicable, shall com11 mence the consideration referred to in section 111, or 

12 set a hearing date for consideration, with respect to 

13 the standards established by paragraphs (20), (22), 

14 and (23) of section 111(d). 

15 ‘‘(B) Not later than 2 years after the date of the 

16 enactment of this paragraph, each State regulatory 

17 authority (with respect to each electric utility for 

18 which it has ratemaking authority) and each non19 regulated electric utility, as applicable, shall complete 

20 the consideration, and shall make the determination, 

21 referred to in section 111 with respect to each stand22 ard established by paragraphs (20), (22), and (23) of 

23 section 111(d). 

24 ‘‘(8)(A) Not later than 6 months after the date 

25 of enactment of this paragraph, each State regulatory 

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1 authority (with respect to each electric utility for 

2 which it has ratemaking authority) and each non3 regulated electric utility shall commence the consider4 ation referred to in section 111, or set a hearing date 

5 for consideration, with respect to the standard estab6 lished by paragraph (21) of section 111(d). 

7 ‘‘(B) Not later than 1 year after the date of en8 actment of this paragraph, each State regulatory au9 thority (with respect to each electric utility for which 

10 it has ratemaking authority) and each nonregulated 

11 electric utility shall complete the consideration, and 

12 shall make the determination, referred to in section 

13 111 with respect to the standard established by para14 graph (21) of section 111(d).’’. 

15 (B) FAILURE TO COMPLY.—Section 112(c) 

16 of the Public Utility Regulatory Policies Act of 

17 1978 (16 U.S.C. 2622(c)) is amended by adding 

18 the following at the end: ‘‘In the case of the 

19 standards established by paragraphs (20) 

20 through (23) of section 111(d), the reference con21 tained in this subsection to the date of enactment 

22 of this Act shall be deemed to be a reference to 

23 the date of enactment of such paragraphs.’’. 

24 (C) PRIOR STATE ACTIONS.—Section 112 of 

25 the Public Utility Regulatory Policies Act of 

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1 1978 (16 U.S.C. 2622) is amended by adding at 

2 the end the following new subsection: 

3 ‘‘(g) PRIOR STATE ACTIONS.—Subsections (b) and (c) 

4 of this section shall not apply to a standard established by 

5 paragraph (20), (21), (22), or (23) of section 111(d) in the 

6 case of any electric utility in a State if— 

7 ‘‘(1) before the date of enactment of this sub8 section, the State has implemented for such utility the 

9 standard concerned (or a comparable standard); 

10 ‘‘(2) the State regulatory authority for such 

11 State or relevant nonregulated electric utility has con12 ducted a proceeding to consider implementation of the 

13 standard concerned (or a comparable standard) for 

14 such utility during the 3-year period ending on the 

15 date of enactment of this subsection; or 

16 ‘‘(3) the State legislature has voted on the imple17 mentation of the standard concerned (or a comparable 

18 standard) for such utility during the 3-year period 

19 ending on the date of enactment of this subsection.’’. 

20 (b) COVERAGE FOR COMPETITIVE MARKETS.—Section 

21 102 of the Public Utility Regulatory Policies Act of 1978 

22 (16 U.S.C. 2612) is amended by adding at the end the fol23 lowing: 

24 ‘‘(d) COVERAGE FOR COMPETITIVE MARKETS.—The 

25 requirements of this title do not apply to the operations of 

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1 an electric utility, or to proceedings respecting such oper2 ations, to the extent that such operations or proceedings, 

3 or any portion thereof, relate to the competitive sale of retail 

4 electric energy that is unbundled or separated from the reg5 ulated provision or sale of distribution service.’’. 

6 SEC. 1108. RELIABILITY ANALYSIS FOR CERTAIN RULES 

7 THAT AFFECT ELECTRIC GENERATING FA8 CILITIES. 

9 (a) APPLICABILITY.—This section shall apply with re10 spect to any proposed or final covered rule issued by a Fed11 eral agency for which compliance with the rule may impact 

12 an electric utility generating unit or units, including by 

13 resulting in closure or interruption to operations of such 

14 a unit or units. 

15 (b) RELIABILITY ANALYSIS.— 

16 (1) ANALYSIS OF RULES.—The Federal Energy 

17 Regulatory Commission, in consultation with the 

18 Electric Reliability Organization, shall conduct an 

19 independent reliability analysis of a proposed or final 

20 covered rule under this section to evaluate the antici21 pated effects of implementation and enforcement of 

22 the rule on— 

23 (A) electric reliability and resource ade24 quacy; 

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1 (B) the electricity generation portfolio of the 

2 United States; 

3 (C) the operation of wholesale electricity 

4 markets; and 

5 (D) energy delivery and infrastructure, in6 cluding electric transmission facilities and nat7 ural gas pipelines. 

8 (2) RELEVANT INFORMATION.— 

9 (A) MATERIALS FROM FEDERAL AGEN10 CIES.—A Federal agency shall provide to the 

11 Commission materials and information relevant 

12 to the analysis required under paragraph (1) for 

13 a rule, including relevant data, modeling, and 

14 resource adequacy and reliability assessments, 

15 prepared or relied upon by such agency in devel16 oping the rule. 

17 (B) ANALYSES FROM OTHER ENTITIES.— 

18 The Electric Reliability Organization, regional 

19 entities, regional transmission organizations, 

20 independent system operators, and other reli21 ability coordinators and planning authorities 

22 shall timely conduct analyses and provide such 

23 information as may be reasonably requested by 

24 the Commission. 

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1 (3) NOTICE.—A Federal agency shall provide to 

2 the Commission notice of the issuance of any proposed 

3 or final covered rule not later than 15 days after the 

4 date of such issuance. 

5 (c) PROPOSED RULES.—Not later than 150 days after 

6 the date of publication in the Federal Register of a proposed 

7 rule described in subsection (a), the Federal Energy Regu8 latory Commission shall make available to the public an 

9 analysis of the proposed rule conducted in accordance with 

10 subsection (b), and any relevant special assessment or sea11 sonal or long-term reliability assessment completed by the 

12 Electric Reliability Organization. 

13 (d) FINAL RULES.— 

14 (1) INCLUSION.—A final rule described in sub15 section (a) shall include, if available at the time of 

16 issuance, a copy of the analysis conducted pursuant 

17 to subsection (c) of the rule as proposed. 

18 (2) ANALYSIS.—Not later than 120 days after 

19 the date of publication in the Federal Register of a 

20 final rule described in subsection (a), the Federal En21 ergy Regulatory Commission shall make available to 

22 the public an analysis of the final rule conducted in 

23 accordance with subsection (b), and any relevant spe24 cial assessment or seasonal or long-term reliability asmstockstill on DSK4VPTVN1PROD with BILLS

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1 sessment completed by the Electric Reliability Orga2 nization. 

3 (e) DEFINITIONS.—In this section: 

4 (1) ELECTRIC RELIABILITY ORGANIZATION.—The 

5 term ‘‘Electric Reliability Organization’’ has the 

6 meaning given to such term in section 215(a) of the 

7 Federal Power Act (16 U.S.C. 824o(a)). 

8 (2) FEDERAL AGENCY.—The term ‘‘Federal agen9 cy’’ means an agency, as that term is defined in sec10 tion 551 of title 5, United States Code. 

11 (3) COVERED RULE.—The term ‘‘covered rule’’ 

12 means a proposed or final rule that is estimated by 

13 the Federal agency issuing the rule, or the Director of 

14 the Office of Management and Budget, to result in an 

15 annual effect on the economy of $1,000,000,000 or 

16 more. 

17 SEC. 1109. CARBON CAPTURE, UTILIZATION, AND SEQUES18 TRATION TECHNOLOGIES. 

19 (a) AMENDMENTS TO THE ENERGY POLICY ACT OF

20 2005.— 

21 (1) FOSSIL ENERGY.—Section 961(a) of the En22 ergy Policy Act of 2005 (42 U.S.C. 16291(a)) is 

23 amended by adding at the end the following: 

24 ‘‘(8) Improving the conversion, use, and storage 

25 of carbon dioxide produced from fossil fuels.’’. 

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1 (2) COAL AND RELATED TECHNOLOGIES PRO2 GRAM.—Section 962(b)(1) of the Energy Policy Act of 

3 2005 (42 U.S.C. 16292(b)(1)) is amended— 

4 (A) by striking ‘‘during each of calendar 

5 years 2008, 2010, 2012, and 2016, and during 

6 each fiscal year beginning after September 30, 

7 2021,’’ and inserting ‘‘during each fiscal year be8 ginning after September 30, 2016,’’; 

9 (B) by inserting ‘‘allow for large-scale dem10 onstration and’’ after ‘‘technologies that would’’; 

11 and 

12 (C) by inserting ‘‘commercial use,’’ after 

13 ‘‘use of coal for’’. 

14 (b) INCREASED ACCOUNTABILITY WITH RESPECT TO

15 CARBON CAPTURE, UTILIZATION, AND SEQUESTRATION

16 PROJECTS.— 

17 (1) DOE EVALUATION.— 

18 (A) IN GENERAL.—The Secretary of Energy 

19 (in this subsection referred to as the ‘‘Secretary’’) 

20 shall, in accordance with this subsection, annu21 ally conduct an evaluation, and make rec22 ommendations, with respect to each project con23 ducted by the Secretary for research, develop24 ment, demonstration, or deployment of carbon 

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1 nologies (also known as carbon capture and stor2 age and utilization technologies). 

3 (B) SCOPE.—For purposes of this sub4 section, a project includes any contract, lease, co5 operative agreement, or other similar transaction 

6 with a public agency or private organization or 

7 person, entered into or performed, or any pay8 ment made, by the Secretary for research, devel9 opment, demonstration, or deployment of carbon 

10 capture, utilization, and sequestration tech11 nologies. 

12 (2) REQUIREMENTS FOR EVALUATION.—In con13 ducting an evaluation of a project under this sub14 section, the Secretary shall— 

15 (A) examine if the project has made ad16 vancements toward achieving any specific goal of 

17 the project with respect to a carbon capture, uti18 lization, and sequestration technology; and 

19 (B) evaluate and determine if the project 

20 has made significant progress in advancing a 

21 carbon capture, utilization, and sequestration 

22 technology. 

23 (3) RECOMMENDATIONS.—For each evaluation of 

24 a project conducted under this subsection, if the Sec25 retary determines that— 

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1 (A) significant progress in advancing a car2 bon capture, utilization, and sequestration tech3 nology has been made, the Secretary shall assess 

4 the funding of the project and make a rec5 ommendation as to whether increased funding is 

6 necessary to advance the project; or 

7 (B) significant progress in advancing a car8 bon capture, utilization, and sequestration tech9 nology has not been made, the Secretary shall— 

10 (i) assess the funding of the project and 

11 make a recommendation as to whether in12 creased funding is necessary to advance the 

13 project; 

14 (ii) assess and determine if the project 

15 has reached its full potential; and 

16 (iii) make a recommendation as to 

17 whether the project should continue. 

18 (4) REPORTS.— 

19 (A) REPORT ON EVALUATIONS AND REC20 OMMENDATIONS.—Not later than 2 years after 

21 the date of enactment of this Act, and every 2 

22 years thereafter, the Secretary shall— 

23 (i) issue a report on the evaluations 

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1 ing the previous year pursuant to this sub2 section; and 

3 (ii) make each such report available on 

4 the Internet website of the Department of 

5 Energy. 

6 (B) REPORT.—Not later than 2 years after 

7 the date of enactment of this Act, and every 3 

8 years thereafter, the Secretary shall submit to the 

9 Subcommittee on Energy and Power of the Com10 mittee on Energy and Commerce of the House of 

11 Representatives and the Committee on Energy 

12 and Natural Resources of the Senate a report 

13 on— 

14 (i) the evaluations conducted and rec15 ommendations made during the previous 3 

16 years pursuant to this subsection; and 

17 (ii) the progress of the Department of 

18 Energy in advancing carbon capture, utili19 zation, and sequestration technologies, in20 cluding progress in achieving the Depart21 ment of Energy’s goal of having an array 

22 of advanced carbon capture and sequestra23 tion technologies ready by 2020 for large24 scale demonstration. 

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1 SEC. 1110. RELIABILITY AND PERFORMANCE ASSURANCE IN 

2 REGIONAL TRANSMISSION ORGANIZATIONS. 

3 Part II of the Federal Power Act (16 U.S.C. 824 et 

4 seq.), as amended by section 1104, is further amended by 

5 adding after section 215A the following new section: 

6 ‘‘SEC. 215B. RELIABILITY AND PERFORMANCE ASSURANCE 

7 IN REGIONAL TRANSMISSION ORGANIZA8 TIONS. 

9 ‘‘(a) EXISTING CAPACITY MARKETS.— 

10 ‘‘(1) ANALYSIS CONCERNING CAPACITY MARKET

11 DESIGN.—Not later than 180 days after the date of 

12 enactment of this section, each Regional Transmission 

13 Organization, and each Independent System Oper14 ator, that operates a capacity market, or a com15 parable market intended to ensure the procurement 

16 and availability of sufficient future electric energy re17 sources, that is subject to the jurisdiction of the Com18 mission, shall provide to the Commission an analysis 

19 of how the structure of such market meets the fol20 lowing criteria: 

21 ‘‘(A) The structure of such market utilizes 

22 competitive market forces to the extent prac23 ticable in procuring capacity resources. 

24 ‘‘(B) Consistent with subparagraph (A), the 

25 structure of such market includes resource-neu26 tral performance criteria that ensure the promstockstill on DSK4VPTVN1PROD with BILLS

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1 curement of sufficient capacity from physical 

2 generation facilities that have reliability at3 tributes that include— 

4 ‘‘(i)(I) possession of adequate fuel on5 site to enable operation for an extended pe6 riod of time; 

7 ‘‘(II) the operational ability to gen8 erate electric energy from more than one 

9 fuel source; or 

10 ‘‘(III) fuel certainty, through firm con11 tractual obligations, that ensures adequate 

12 fuel supply to enable operation, for an ex13 tended period of time, for the duration of an 

14 emergency or severe weather conditions; 

15 ‘‘(ii) operational characteristics that 

16 enable the generation of electric energy for 

17 the duration of an emergency or severe 

18 weather conditions; and 

19 ‘‘(iii) unless procured through other 

20 markets or procurement mechanisms, essen21 tial reliability services, including frequency 

22 support and regulation services. 

23 ‘‘(2) COMMISSION EVALUATION AND REPORT.— 

24 Not later than 1 year after the date of enactment of 

25 this section, the Commission shall make publicly 

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1 available, and submit to the Committee on Energy 

2 and Commerce in the House of Representatives and 

3 the Committee on Energy and Natural Resources in 

4 the Senate, a report containing— 

5 ‘‘(A) evaluation of whether the structure of 

6 each market addressed in an analysis submitted 

7 pursuant to paragraph (1) meets the criteria 

8 under such paragraph, based on the analysis; 

9 and 

10 ‘‘(B) to the extent a market so addressed 

11 does not meet such criteria, any recommenda12 tions with respect to the procurement of suffi13 cient capacity, as described in paragraph (1)(B). 

14 ‘‘(b) COMMISSION EVALUATION AND REPORT FOR NEW

15 SCHEDULES.— 

16 ‘‘(1) INCLUSION OF ANALYSIS IN FILING.—Except 

17 as provided in subsection (a)(2), whenever a Regional 

18 Transmission Organization or Independent System 

19 Operator files a new schedule under section 205 to es20 tablish a market described in subsection (a)(1), or 

21 that substantially modifies the capacity market de22 sign of a market described in subsection (a)(1), the 

23 Regional Transmission Organization or Independent 

24 System Operator shall include in any such filing the 

25 analysis required by subsection (a)(1). 

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1 ‘‘(2) EVALUATION AND REPORT.—Not later than 

2 180 days of receiving an analysis under paragraph 

3 (1), the Commission shall make publicly available, 

4 and submit to the Committee on Energy and Com5 merce in the House of Representatives and the Com6 mittee on Energy and Natural Resources in the Sen7 ate, a report containing— 

8 ‘‘(A) an evaluation of whether the structure 

9 of the market addressed in the analysis meets the 

10 criteria under subsection (a)(1), based on the 

11 analysis; and 

12 ‘‘(B) to the extent the market does not meet 

13 such criteria, any recommendations with respect 

14 to the procurement of sufficient capacity, as de15 scribed in subsection (a)(1)(B). 

16 ‘‘(c) EFFECT ON EXISTING APPROVALS.—Nothing in 

17 this section shall be considered to— 

18 ‘‘(1) require a modification of the Commission’s 

19 approval of the capacity market design approved pur20 suant to docket numbers ER15–623–000, EL15–29– 

21 000, EL14–52–000, and ER14–2419–000; or 

22 ‘‘(2) provide grounds for the Commission to 

23 grant rehearing or otherwise modify orders issued in 

24 those dockets.’’. 

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1 Subtitle B—Energy Security and 

2 Infrastructure Modernization 

3 SEC. 1201. ENERGY SECURITY AND INFRASTRUCTURE MOD4 ERNIZATION FUND. 

5 (a) ESTABLISHMENT.—There is hereby established in 

6 the Treasury of the United States a fund to be known as 

7 the Energy Security and Infrastructure Modernization 

8 Fund (referred to in this section as the ‘‘Fund’’), consisting 

9 of— 

10 (1) collections deposited in the Fund under sub11 section (c); and 

12 (2) amounts otherwise appropriated to the Fund. 

13 (b) PURPOSE.—The purpose of the Fund is— 

14 (1) to provide for the construction, maintenance, 

15 repair, and replacement of Strategic Petroleum Re16 serve facilities; and 

17 (2) for carrying out non-Strategic Petroleum Re18 serve projects needed to enhance the energy security of 

19 the United States by increasing the resilience, reli20 ability, safety, and security of energy supply, trans21 mission, storage, or distribution infrastructure. 

22 (c) COLLECTION AND DEPOSIT OF SALE PROCEEDS IN

23 FUND.— 

24 (1) DRAWDOWN AND SALE.—Notwithstanding 

25 section 161 of the Energy Policy and Conservation 

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1 Act (42 U.S.C. 6241), to the extent provided in ad2 vance in appropriation Acts, the Secretary of Energy 

3 shall draw down and sell crude oil from the Strategic 

4 Petroleum Reserve in amounts as authorized under 

5 subsection (e), except as provided in paragraphs (2) 

6 and (3). Amounts received for a sale under this sub7 section shall be deposited into the Fund during the 

8 fiscal year in which the sale occurs. Such amounts 

9 shall remain available in the Fund without fiscal 

10 year limitation. 

11 (2) EMERGENCY PROTECTION.—The Secretary 

12 shall not draw down and sell crude oil under this 

13 subsection in amounts that would limit the authority 

14 to sell petroleum products under section 161(h) of the 

15 Energy Policy and Conservation Act (42 U.S.C. 

16 6241(h)) in the full amount authorized by that sub17 section. 

18 (3) INVESTMENT PROTECTION.—The Secretary 

19 shall not draw down and sell crude oil under this 

20 subsection at a price lower than the average price 

21 paid for oil in the Strategic Petroleum Reserve. 

22 (d) AUTHORIZED USES OF FUND.— 

23 (1) IN GENERAL.—Amounts in the Fund may be 

24 used for, or may be credited as offsetting collections 

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1 scribed in paragraphs (2), (3), and (4), to the extent 

2 provided in advance in appropriation Acts. 

3 (2) PROGRAM TO MODERNIZE THE STRATEGIC

4 PETROLEUM RESERVE.— 

5 (A) FINDINGS.—Congress finds the fol6 lowing: 

7 (i) The Strategic Petroleum Reserve is 

8 one of the Nation’s most valuable energy se9 curity assets. 

10 (ii) The age and condition of the Stra11 tegic Petroleum Reserve have diminished its 

12 value as a Federal energy security asset. 

13 (iii) Global oil markets and the loca14 tion and amount of United States oil pro15 duction and refining capacity have dra16 matically changed in the 40 years since the 

17 establishment of the Strategic Petroleum Re18 serve. 

19 (iv) Maximizing the energy security 

20 value of the Strategic Petroleum Reserve re21 quires a modernized infrastructure that 

22 meets the drawdown and distribution needs 

23 of changed domestic and international oil 

24 and refining market conditions. 

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1 (B) REAFFIRMATION OF POLICY.—Congress 

2 reaffirms the continuing strategic importance 

3 and need for the Strategic Petroleum Reserve as 

4 found and declared in section 151 of the Energy 

5 Policy and Conservation Act (42 U.S.C. 6231). 

6 (C) PROGRAM.—The Secretary of Energy 

7 shall establish a Strategic Petroleum Reserve 

8 modernization program to protect the United 

9 States economy from the impacts of emergency 

10 petroleum product supply disruptions. The pro11 gram shall include— 

12 (i) operational improvements to extend 

13 the useful life of surface and subsurface in14 frastructure; 

15 (ii) maintenance of cavern storage in16 tegrity; and 

17 (iii) addition of infrastructure and fa18 cilities to maximize the drawdown and in19 cremental distribution capacity of the Stra20 tegic Petroleum Reserve. 

21 (3) PROGRAM TO ENHANCE SAFETY, PERFORM22 ANCE, AND RESILIENCE OF NATURAL GAS DISTRIBU23 TION SYSTEMS.— 

24 (A) PROGRAM.—The Secretary of Energy 

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1 cial assistance to States to offset the incremental 

2 rate increases paid by eligible households result3 ing from the implementation of State-approved 

4 infrastructure replacement, repair, and mainte5 nance programs designed to accelerate the nec6 essary replacement, repair, or maintenance of 

7 natural gas distribution systems. 

8 (B) DATE OF ELIGIBILITY.—Awards may be 

9 provided under this paragraph to offset rate in10 creases described in subsection (a) occurring on 

11 or after July 1, 2015. 

12 (C) PRIORITIZATION.—The Secretary shall 

13 collaborate with States to prioritize the distribu14 tion of grants made under this paragraph. At a 

15 minimum, the Secretary shall consider 

16 prioritizing the distribution of grants to States 

17 which have— 

18 (i) authorized or adopted enhanced in19 frastructure replacement programs or inno20 vative rate recovery mechanisms, such as 

21 infrastructure cost trackers and riders, in22 frastructure base rate surcharges, deferred 

23 regulatory asset programs, and earnings 

24 stability mechanisms; and 

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1 (ii) a viable means for delivering fi2 nancial assistance to eligible households. 

3 (D) DEFINITION.—In this paragraph, the 

4 term ‘‘eligible household’’ means a household that 

5 is eligible to receive payments under section 

6 8624(b)(2) of title 42, United States Code. 

7 (4) PROGRAM TO ENHANCE ELECTRIC INFRA8 STRUCTURE RESILIENCE, RELIABILITY, AND ENERGY

9 SECURITY.— 

10 (A) PROGRAM.—The Secretary shall estab11 lish a competitive grant program to provide 

12 grants to States, units of local government, and 

13 Indian tribe economic development entities to en14 hance energy security through measures for elec15 tricity delivery infrastructure hardening and en16 hanced resilience and reliability. 

17 (B) PURPOSE OF GRANTS.—The Secretary 

18 may make grants on a competitive basis to en19 able broader use of resiliency-related technologies, 

20 upgrades, and institutional measures and prac21 tices designed to— 

22 (i) improve the resilience, reliability, 

23 and security of electricity delivery infra24 structure; 

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1 (ii) improve preparedness and restora2 tion time to mitigate power disturbances re3 sulting from physical and cyber attacks, 

4 electromagnetic pulse attacks, geomagnetic 

5 disturbances, seismic events, and severe 

6 weather and other environmental stressors; 

7 (iii) continue delivery of power to fa8 cilities critical to public health, safety, and 

9 welfare, including hospitals, assisted living 

10 facilities, and schools; 

11 (iv) continue delivery of power to elec12 tricity-dependent essential services, includ13 ing fueling stations and pumps, wastewater 

14 and sewage treatment facilities, gas pipeline 

15 infrastructure, communications systems, 

16 transportation services and systems, and 

17 services provided by emergency first re18 sponders; and 

19 (v) enhance regional grid resilience 

20 and the resilience of electricity-dependent 

21 regional infrastructure. 

22 (C) EXAMPLES.—Resiliency-related tech23 nologies, upgrades, and measures with respect to 

24 which grants may be made under this paragraph 

25 include— 

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1 (i) hardening, or other enhanced pro2 tection, of utility poles, wiring, cabling, and 

3 other distribution components, facilities, or 

4 structures; 

5 (ii) advanced grid technologies capable 

6 of isolating or repairing problems remotely, 

7 such as advanced metering infrastructure, 

8 high-tech sensors, grid monitoring and con9 trol systems, and remote reconfiguration 

10 and redundancy systems; 

11 (iii) cybersecurity products and com12 ponents; 

13 (iv) distributed generation, including 

14 back-up generation to power critical facili15 ties and essential services, and related inte16 gration components, such as advanced in17 verter technology; 

18 (v) microgrid systems, including hy19 brid microgrid systems for isolated commu20 nities; 

21 (vi) combined heat and power; 

22 (vii) waste heat resources; 

23 (viii) non-grid-scale energy storage 

24 technologies; 

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1 (ix) wiring, cabling, and other dis2 tribution components, including submersible 

3 distribution components, and enclosures; 

4 (x) electronically controlled reclosers 

5 and similar technologies for power restora6 tion, including emergency mobile sub7 stations, as defined in section 1105 of the 

8 North American Energy Security and In9 frastructure Act of 2015; 

10 (xi) advanced energy analytics tech11 nology, such as Internet-based and cloud12 based computing solutions and subscription 

13 licensing models; 

14 (xii) measures that enhance resilience 

15 through planning, preparation, response, 

16 and recovery activities; 

17 (xiii) operational capabilities to en18 hance resilience through rapid response re19 covery; and 

20 (xiv) measures to ensure availability of 

21 key critical components through contracts, 

22 cooperative agreements, stockpiling and 

23 prepositioning, or other measures. 

24 (D) IMPLEMENTATION.—Specific projects or 

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1 ant to awards provided under this paragraph 

2 shall be implemented through the States by pub3 lic and publicly regulated entities on a cost4 shared basis. 

5 (E) COOPERATION.—In carrying out 

6 projects or programs established, or to be estab7 lished, pursuant to awards provided under this 

8 paragraph, award recipients shall cooperate, as 

9 applicable, with— 

10 (i) State public utility commissions; 

11 (ii) State energy offices; 

12 (iii) electric infrastructure owners and 

13 operators; and 

14 (iv) other entities responsible for main15 taining electric reliability. 

16 (F) DATA AND METRICS.— 

17 (i) IN GENERAL.—To the extent prac18 ticable, award recipients shall utilize the 

19 most current data, metrics, and frameworks 

20 related to— 

21 (I) electricity delivery infrastruc22 ture hardening and enhancing resil23 ience and reliability; and 

24 (II) current and future threats, 

25 including physical and cyber attacks, 

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1 electromagnetic pulse, geomagnetic dis2 turbances, seismic events, and severe 

3 weather and other environmental 

4 stressors. 

5 (ii) METRICS.—Award recipients shall 

6 demonstrate to the Secretary with measur7 able and verifiable data how the deployment 

8 of resiliency-related technologies, upgrades, 

9 and technologies achieve improvements in 

10 the resiliency and recovery of electricity de11 livery infrastructure and related services, 

12 including a comparison of data collected be13 fore and after deployment. Metrics for dem14 onstrating improvements in resiliency and 

15 recovery may include— 

16 (I) power quality during power 

17 disturbances when delivered power does 

18 not meet power quality requirements of 

19 the customer; 

20 (II) duration of customer inter21 ruptions; 

22 (III) number of customers im23 pacted; 

24 (IV) cost impacts, including busi25 ness and other economic losses; 

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1 (V) impacts on electricity-depend2 ent essential services and critical fa3 cilities; and 

4 (VI) societal impacts. 

5 (iii) FURTHERING ENERGY ASSURANCE

6 PLANS.—Award recipients shall dem7 onstrate to the Secretary how projects or 

8 programs established, or to be established, 

9 pursuant to awards provided under this 

10 paragraph further applicable State and 

11 local energy assurance plans. 

12 (G) MATCHING CONTRIBUTIONS.—The Sec13 retary may not make a grant under this para14 graph unless the applicant agrees to make avail15 able non-Federal contributions (which may in16 clude in-kind contributions) in an amount not 

17 less than 50 percent of the Federal contribution. 

18 (e) AUTHORIZATION OF APPROPRIATIONS.—There are 

19 authorized to be appropriated (and drawdowns and sales 

20 under subsection (c) in an equal amount are authorized)— 

21 (1) for carrying out subsection (d)(2), 

22 $500,000,000 for the period encompassing fiscal years 

23 2017 through 2020; 

24 (2) for carrying out subsection (d)(3), 

25 $100,000,000 for the period encompassing fiscal years 

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1 2017 through 2020, of which not more than 5 percent 

2 may be used for administrative expenses; and 

3 (3) for carrying out subsection (d)(4), 

4 $250,000,000 for the period encompassing fiscal years 

5 2017 through 2020, of which not more than 5 percent 

6 may be used for administrative expenses. 

7 (f) TRANSMISSION OF DEPARTMENT BUDGET RE8 QUESTS.—The Secretary of Energy shall prepare and sub9 mit in the Department’s annual budget request to Con10 gress— 

11 (1) an itemization of the amounts of funds nec12 essary to carry out subsection (d); and 

13 (2) a designation of any activities thereunder for 

14 which a multiyear budget authority would be appro15 priate. 

16 (g) SUNSET.—The authority of the Secretary to draw17 down and sell crude oil from the Strategic Petroleum Re18 serve under this section shall expire at the end of fiscal year 

19 2020. 

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1 Subtitle C—Hydropower Regulatory 

2 Modernization 

3 SEC. 1301. HYDROELECTRIC PRODUCTION AND EFFICIENCY 

4 INCENTIVES. 

5 (a) HYDROELECTRIC PRODUCTION INCENTIVES.—Sec6 tion 242 of the Energy Policy Act of 2005 (42 U.S.C.15881) 

7 is amended— 

8 (1) in subsection (c), by striking ‘‘10’’ and in9 serting ‘‘20’’; 

10 (2) in subsection (f), by striking ‘‘20’’ and in11 serting ‘‘30’’; and 

12 (3) in subsection (g), by striking ‘‘each of the fis13 cal years 2006 through 2015’’ and inserting ‘‘each of 

14 fiscal years 2016 through 2025’’. 

15 (b) HYDROELECTRIC EFFICIENCY IMPROVEMENT.— 

16 Section 243(c) of the Energy Policy Act of 2005 (42 U.S.C. 

17 15882(c)) is amended by striking ‘‘each of the fiscal years 

18 2006 through 2015’’ and inserting ‘‘each of fiscal years 

19 2016 through 2025’’. 

20 SEC. 1302. PROTECTION OF PRIVATE PROPERTY RIGHTS IN 

21 HYDROPOWER LICENSING. 

22 (a) LICENCES.—Section 4(e) of the Federal Power Act 

23 (16 U.S.C. 797(e)) is amended— 

24 (1) by striking ‘‘and’’ after ‘‘recreational oppor25 tunities,’’; and 

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1 (2) by inserting ‘‘, and minimizing infringement 

2 on the useful exercise and enjoyment of property 

3 rights held by nonlicensees’’ after ‘‘aspects of environ4 mental quality’’. 

5 (b) PRIVATE LANDOWNERSHIP.—Section 10 of the 

6 Federal Power Act (16 U.S.C. 803) is amended— 

7 (1) in subsection (a)(1), by inserting ‘‘, includ8 ing minimizing infringement on the useful exercise 

9 and enjoyment of property rights held by non10 licensees’’ after ‘‘section 4(e)’’; and 

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

12 ‘‘(k) PRIVATE LANDOWNERSHIP.—In developing any 

13 recreational resource within the project boundary, the li14 censee shall consider private landownership as a means to 

15 encourage and facilitate— 

16 ‘‘(1) private investment; and 

17 ‘‘(2) increased tourism and recreational use.’’. 

18 SEC. 1303. EXTENSION OF TIME FOR FERC PROJECT IN19 VOLVING W. KERR SCOTT DAM. 

20 (a) IN GENERAL.—Notwithstanding the time period 

21 specified in section 13 of the Federal Power Act (16 U.S.C. 

22 806) that would otherwise apply to the Federal Energy Reg23 ulatory Commission project numbered 12642, the Commis24 sion may, at the request of the licensee for the project, and 

25 after reasonable notice, in accordance with the good faith, 

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1 due diligence, and public interest requirements of that sec2 tion and the Commission’s procedures under that section, 

3 extend the time period during which the licensee is required 

4 to commence the construction of the project for up to 3 con5 secutive 2-year periods from the date of the expiration of 

6 the extension originally issued by the Commission. 

7 (b) REINSTATEMENT OF EXPIRED LICENSE.—If the 

8 period required for commencement of construction of the 

9 project described in subsection (a) has expired prior to the 

10 date of the enactment of this Act, the Commission may rein11 state the license effective as of the date of its expiration and 

12 the first extension authorized under subsection (a) shall take 

13 effect on the date of such expiration. 

14 SEC. 1304. HYDROPOWER LICENSING AND PROCESS IM15 PROVEMENTS. 

16 Part I of the Federal Power Act (16 U.S.C. 792 et seq.) 

17 is amended by adding at the end the following: 

18 ‘‘SEC. 34. HYDROPOWER LICENSING AND PROCESS IM19 PROVEMENTS. 

20 ‘‘(a) DEFINITION.—In this section, the term ‘Federal 

21 authorization’— 

22 ‘‘(1) means any authorization required under 

23 Federal law with respect to an application for a li24 cense, license amendment, or exemption under this 

25 part; and 

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1 ‘‘(2) includes any permits, special use authoriza2 tions, certifications, opinions, or other approvals as 

3 may be required under Federal law to approve or im4 plement the license, license amendment, or exemption 

5 under this part. 

6 ‘‘(b) DESIGNATION AS LEAD AGENCY.— 

7 ‘‘(1) IN GENERAL.—The Commission shall act as 

8 the lead agency for the purposes of coordinating all 

9 applicable Federal authorizations and for the pur10 poses of complying with the National Environmental 

11 Policy Act of 1969 (42 U.S.C. 4321 et seq.). 

12 ‘‘(2) OTHER AGENCIES AND INDIAN TRIBES.— 

13 ‘‘(A) IN GENERAL.—Each Federal, State, 

14 and local government agency and Indian tribe 

15 considering an aspect of an application for Fed16 eral authorization shall coordinate with the 

17 Commission and comply with the deadline estab18 lished in the schedule developed for the project in 

19 accordance with the rule issued by the Commis20 sion under subsection (c). 

21 ‘‘(B) IDENTIFICATION.—The Commission 

22 shall identify, as early as practicable after it is 

23 notified by the applicant of a project or facility 

24 requiring Commission action under this part, 

25 any Federal or State agency, local government, 

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1 or Indian tribe that may consider an aspect of 

2 an application for a Federal authorization. 

3 ‘‘(C) NOTIFICATION.— 

4 ‘‘(i) IN GENERAL.—The Commission 

5 shall notify any agency and Indian tribe 

6 identified under subparagraph (B) of the 

7 opportunity to participate in the process of 

8 reviewing an aspect of an application for a 

9 Federal authorization. 

10 ‘‘(ii) DEADLINE.—Each agency and 

11 Indian tribe receiving a notice under clause 

12 (i) shall submit a response acknowledging 

13 receipt of the notice to the Commission 

14 within 30 days of receipt of such notice and 

15 request. 

16 ‘‘(D) ISSUE IDENTIFICATION AND RESOLU17 TION.— 

18 ‘‘(i) IDENTIFICATION OF ISSUES.—Fed19 eral, State, and local government agencies 

20 and Indian tribes that may consider an as21 pect of an application for Federal author22 ization shall identify, as early as possible, 

23 and share with the Commission and the ap24 plicant, any issues of concern identified 

25 during the pendency of the Commission’s 

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1 action under this part relating to any Fed2 eral authorization that may delay or pre3 vent the granting of such authorization, in4 cluding any issues that may prevent the 

5 agency or Indian tribe from meeting the 

6 schedule established for the project in ac7 cordance with the rule issued by the Com8 mission under subsection (c). 

9 ‘‘(ii) ISSUE RESOLUTION.—The Com10 mission may forward any issue of concern 

11 identified under clause (i) to the heads of 

12 the relevant State and Federal agencies (in13 cluding, in the case of scheduling concerns 

14 identified by a State or local government 

15 agency or Indian tribe, the Federal agency 

16 overseeing the delegated authority, or the 

17 Secretary of the Interior with regard to 

18 scheduling concerns identified by an Indian 

19 tribe) for resolution. The Commission and 

20 any relevant agency shall enter into a 

21 memorandum of understanding to facilitate 

22 interagency coordination and resolution of 

23 such issues of concern, as appropriate. 

24 ‘‘(c) SCHEDULE.— 

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1 ‘‘(1) COMMISSION RULEMAKING TO ESTABLISH

2 PROCESS TO SET SCHEDULE.—Within 180 days of the 

3 date of enactment of this section the Commission 

4 shall, in consultation with the appropriate Federal 

5 agencies, issue a rule, after providing for notice and 

6 public comment, establishing a process for setting a 

7 schedule following the filing of an application under 

8 this part for the review and disposition of each Fed9 eral authorization. 

10 ‘‘(2) ELEMENTS OF SCHEDULING RULE.—In 

11 issuing a rule under this subsection, the Commission 

12 shall ensure that the schedule for each Federal author13 ization— 

14 ‘‘(A) includes deadlines for actions by— 

15 ‘‘(i) any Federal or State agency, local 

16 government, or Indian tribe that may con17 sider an aspect of an application for the 

18 Federal authorization; 

19 ‘‘(ii) the applicant; 

20 ‘‘(iii) the Commission; and 

21 ‘‘(iv) other participants in a pro22 ceeding; 

23 ‘‘(B) is developed in consultation with the 

24 applicant and any agency and Indian tribe that 

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1 submits a response under subsection 

2 (b)(2)(C)(ii); 

3 ‘‘(C) provides an opportunity for any Fed4 eral or State agency, local government, or Indian 

5 tribe that may consider an aspect of an applica6 tion for the applicable Federal authorization to 

7 identify and resolve issues of concern, as pro8 vided in subsection (b)(2)(D); 

9 ‘‘(D) complies with applicable schedules es10 tablished under Federal and State law; 

11 ‘‘(E) ensures expeditious completion of all 

12 proceedings required under Federal and State 

13 law, to the extent practicable; and 

14 ‘‘(F) facilitates completion of Federal and 

15 State agency studies, reviews, and any other pro16 cedures required prior to, or concurrent with, the 

17 preparation of the Commission’s environmental 

18 document required under the National Environ19 mental Policy Act of 1969 (42 U.S.C. 4321 et 

20 seq.). 

21 ‘‘(d) TRANSMISSION OF FINAL SCHEDULE.— 

22 ‘‘(1) IN GENERAL.—For each application for a 

23 license, license amendment, or exemption under this 

24 part, the Commission shall establish a schedule in ac25 cordance with the rule issued by the Commission 

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1 under subsection (c). The Commission shall publicly 

2 notice and transmit the final schedule to the appli3 cant and each agency and Indian tribe identified 

4 under subsection (b)(2)(B). 

5 ‘‘(2) RESPONSE.—Each agency and Indian tribe 

6 receiving a schedule under this subsection shall ac7 knowledge receipt of such schedule in writing to the 

8 Commission within 30 days. 

9 ‘‘(e) ADHERENCE TO SCHEDULE.—All applicants, 

10 other licensing participants, and agencies and tribes con11 sidering an aspect of an application for a Federal author12 ization shall meet the deadlines set forth in the schedule 

13 established pursuant to subsection (d)(1). 

14 ‘‘(f) APPLICATION PROCESSING.—The Commission, 

15 Federal, State, and local government agencies, and Indian 

16 tribes may allow an applicant seeking a Federal authoriza17 tion to fund a third-party contractor selected by such agen18 cy or tribe to assist in reviewing the application. All costs 

19 of an agency or tribe incurred pursuant to direct funding 

20 by the applicant, including all costs associated with the 

21 third party contractor, shall not be considered costs of the 

22 United States for the administration of this part under sec23 tion 10(e). 

24 ‘‘(g) COMMISSION RECOMMENDATION ON SCOPE OF

25 ENVIRONMENTAL REVIEW.—For the purposes of coordimstockstill on DSK4VPTVN1PROD with BILLS

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1 nating Federal authorizations for each project, the Commis2 sion shall consult with and make a recommendation to 

3 agencies and Indian tribes receiving a schedule under sub4 section (d) on the scope of the environmental review for all 

5 Federal authorizations for such project. Each Federal and 

6 State agency and Indian tribe shall give due consideration 

7 and may give deference to the Commission’s recommenda8 tions, to the extent appropriate under Federal law. 

9 ‘‘(h) FAILURE TO MEET SCHEDULE.—A Federal, 

10 State, or local government agency or Indian tribe that an11 ticipates that it will be unable to complete its disposition 

12 of a Federal authorization by the deadline set forth in the 

13 schedule established under subsection (d)(1) may file for an 

14 extension as provided under section 313(b)(2). 

15 ‘‘(i) CONSOLIDATED RECORD.—The Commission shall, 

16 with the cooperation of Federal, State, and local govern17 ment agencies and Indian tribes, maintain a complete con18 solidated record of all decisions made or actions taken by 

19 the Commission or by a Federal administrative agency or 

20 officer (or State or local government agency or officer or 

21 Indian tribe acting under delegated Federal authority) with 

22 respect to any Federal authorization. Such record shall con23 stitute the record for judicial review under section 313(b).’’. 

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1 SEC. 1305. JUDICIAL REVIEW OF DELAYED FEDERAL AU2 THORIZATIONS. 

3 Section 313(b) of the Federal Power Act (16 U.S.C. 

4 825l(b)) is amended— 

5 (1) by striking ‘‘(b) Any party’’ and inserting 

6 the following: 

7 ‘‘(b) JUDICIAL REVIEW.— 

8 ‘‘(1) IN GENERAL.—Any party’’; and 

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

10 ‘‘(2) DELAY OF A FEDERAL AUTHORIZATION.— 

11 Any Federal, State, or local government agency or In12 dian tribe that will not complete its disposition of a 

13 Federal authorization by the deadline set forth in the 

14 schedule by the Commission under section 34 may file 

15 for an extension in the United States court of appeals 

16 for any circuit wherein the project or proposed project 

17 is located, or in the United States Court of Appeals 

18 for the District of Columbia. Such petition shall be 

19 filed not later than 30 days prior to such deadline. 

20 The court shall only grant an extension if the agency 

21 or tribe demonstrates, based on the record maintained 

22 under section 34, that it otherwise complied with the 

23 requirements of section 34 and that complying with 

24 the schedule set by the Commission would have pre25 vented the agency or tribe from complying with ap26 plicable Federal or State law. If the court grants the 

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1 extension, the court shall set a reasonable schedule 

2 and deadline, not to exceed 90 days, for the agency 

3 to act on remand. If the court denies the extension, 

4 or if an agency or tribe does not file for an extension 

5 as provided in this subsection and does not complete 

6 its disposition of a Federal authorization by the ap7 plicable deadline, the Commission and applicant may 

8 move forward with the proposed action.’’. 

9 SEC. 1306. LICENSING STUDY IMPROVEMENTS. 

10 Part I of the Federal Power Act (16 U.S.C. 792 et 

11 seq.), as amended by section 1304, is further amended by 

12 adding at the end the following: 

13 ‘‘SEC. 35. LICENSING STUDY IMPROVEMENTS. 

14 ‘‘(a) IN GENERAL.—To facilitate the timely and effi15 cient completion of the license proceedings under this part, 

16 the Commission shall, in consultation with applicable Fed17 eral and State agencies and interested members of the pub18 lic— 

19 ‘‘(1) compile current and accepted best practices 

20 in performing studies required in such license pro21 ceedings, including methodologies and the design of 

22 studies to assess the full range of environmental im23 pacts of a project that reflect the most recent peer-re24 viewed science; 

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1 ‘‘(2) compile a comprehensive collection of stud2 ies and data accessible to the public that could be 

3 used to inform license proceedings under this part; 

4 and 

5 ‘‘(3) encourage license applicants, agencies, and 

6 Indian tribes to develop and use, for the purpose of 

7 fostering timely and efficient consideration of license 

8 applications, a limited number of open-source meth9 odologies and tools applicable across a wide array of 

10 projects, including water balance models and 

11 streamflow analyses. 

12 ‘‘(b) USE OF STUDIES.—To the extent practicable, the 

13 Commission and other Federal, State, and local government 

14 agencies and Indian tribes considering an aspect of an ap15 plication for Federal authorization shall use current, ac16 cepted science toward studies and data in support of their 

17 actions. Any participant in a proceeding with respect to 

18 a Federal authorization shall demonstrate a study requested 

19 by the party is not duplicative of current, existing studies 

20 that are applicable to the project. 

21 ‘‘(c) BASIN-WIDE OR REGIONAL REVIEW.—The Com22 mission shall establish a program to develop comprehensive 

23 plans, at the request of project applicants, on a regional 

24 or basin-wide scale, in consultation with the applicants, ap25 propriate Federal agencies, and affected States, local govmstockstill on DSK4VPTVN1PROD with BILLS

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1 ernments, and Indian tribes, in basins or regions with re2 spect to which there are more than one project or applica3 tion for a project. Upon such a request, the Commission, 

4 in consultation with the applicants, such Federal agencies, 

5 and affected States, local governments, and Indian tribes, 

6 may conduct or commission regional or basin-wide environ7 mental studies, with the participation of at least 2 appli8 cants. Any study conducted under this subsection shall 

9 apply only to a project with respect to which the applicant 

10 participates.’’. 

11 SEC. 1307. CLOSED-LOOP PUMPED STORAGE PROJECTS. 

12 Part I of the Federal Power Act (16 U.S.C. 792 et 

13 seq.), as amended by section 1306, is further amended by 

14 adding at the end the following: 

15 ‘‘SEC. 36. CLOSED-LOOP PUMPED STORAGE PROJECTS. 

16 ‘‘(a) DEFINITION.—For purposes of this section, a 

17 closed-loop pumped storage project is a project— 

18 ‘‘(1) in which the upper and lower reservoirs do 

19 not impound or directly withdraw water from navi20 gable waters; or 

21 ‘‘(2) that is not continuously connected to a nat22 urally flowing water feature. 

23 ‘‘(b) IN GENERAL.—As provided in this section, the 

24 Commission may issue and amend licenses and prelimimstockstill on DSK4VPTVN1PROD with BILLS

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1 nary permits, as appropriate, for closed-loop pumped stor2 age projects. 

3 ‘‘(c) DAM SAFETY.—Before issuing any license for a 

4 closed-loop pumped storage project, the Commission shall 

5 assess the safety of existing dams and other structures re6 lated to the project (including possible consequences associ7 ated with failure of such structures). 

8 ‘‘(d) LICENSE CONDITIONS.—With respect to a closed9 loop pumped storage project, the authority of the Commis10 sion to impose conditions on a license under sections 4(e), 

11 10(a), 10(g), and 10(j) shall not apply, and any condition 

12 included in or applicable to a closed-loop pumped storage 

13 project licensed under this section, including any condition 

14 or other requirement of a Federal authorization, shall be 

15 limited to those that are— 

16 ‘‘(1) necessary to protect public safety; or 

17 ‘‘(2) reasonable, economically feasible, and essen18 tial to prevent loss of or damage to, or to mitigate ad19 verse effects on, fish and wildlife resources directly 

20 caused by the construction and operation of the 

21 project, as compared to the environmental baseline ex22 isting at the time the Commission completes its envi23 ronmental review. 

24 ‘‘(e) TRANSFERS.—Notwithstanding section 5, and re25 gardless of whether the holder of a preliminary permit for 

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1 a closed-loop pumped storage project claimed municipal 

2 preference under section 7(a) when obtaining the permit, 

3 the Commission may, to facilitate development of a closed4 loop pumped storage project— 

5 ‘‘(1) add entities as joint permittees following 

6 issuance of a preliminary permit; and 

7 ‘‘(2) transfer a license in part to one or more 

8 nonmunicipal entities as co-licensees with a munici9 pality.’’. 

10 SEC. 1308. LICENSE AMENDMENT IMPROVEMENTS. 

11 Part I of the Federal Power Act (16 U.S.C. 792 et 

12 seq.), as amended by section 1307, is further amended by 

13 adding at the end the following: 

14 ‘‘SEC. 37. LICENSE AMENDMENT IMPROVEMENTS. 

15 ‘‘(a) QUALIFYING PROJECT UPGRADES.— 

16 ‘‘(1) IN GENERAL.—As provided in this section, 

17 the Commission may approve an application for an 

18 amendment to a license issued under this part for a 

19 qualifying project upgrade. 

20 ‘‘(2) APPLICATION.—A licensee filing an applica21 tion for an amendment to a project license under this 

22 section shall include in such application information 

23 sufficient to demonstrate that the proposed change to 

24 the project described in the application is a quali25 fying project upgrade. 

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1 ‘‘(3) INITIAL DETERMINATION.—Not later than 

2 15 days after receipt of an application under para3 graph (2), the Commission shall make an initial de4 termination as to whether the proposed change to the 

5 project described in the application for a license 

6 amendment is a qualifying project upgrade. The 

7 Commission shall publish its initial determination 

8 and issue notice of the application filed under para9 graph (2). Such notice shall solicit public comment on 

10 the initial determination within 45 days. 

11 ‘‘(4) PUBLIC COMMENT ON QUALIFYING CRI12 TERIA.—The Commission shall accept public com13 ment regarding whether a proposed license amend14 ment is for a qualifying project upgrade for a period 

15 of 45 days beginning on the date of publication of a 

16 public notice described in paragraph (3), and shall— 

17 ‘‘(A) if no entity contests whether the pro18 posed license amendment is for a qualifying 

19 project upgrade during such comment period, 

20 immediately publish a notice stating that the 

21 initial determination has not been contested; or 

22 ‘‘(B) if an entity contests whether the pro23 posed license amendment is for a qualifying 

24 project upgrade during the comment period, 

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1 issue a written determination in accordance 

2 with paragraph (5). 

3 ‘‘(5) WRITTEN DETERMINATION.—If an entity 

4 contests whether the proposed license amendment is 

5 for a qualifying project upgrade during the comment 

6 period under paragraph (4), the Commission shall, 

7 not later than 30 days after the date of publication 

8 of the public notice of the initial determination under 

9 paragraph (3), issue a written determination as to 

10 whether the proposed license amendment is for a 

11 qualifying project upgrade. 

12 ‘‘(6) PUBLIC COMMENT ON AMENDMENT APPLICA13 TION.—If no entity contests whether the proposed li14 cense amendment is for a qualifying project upgrade 

15 during the comment period under paragraph (4) or 

16 the Commission issues a written determination under 

17 paragraph (5) that a proposed license amendment is 

18 a qualifying project upgrade, the Commission shall— 

19 ‘‘(A) during the 60-day period beginning on 

20 the date of publication of a notice under para21 graph (4)(A) or the date on which the Commis22 sion issues the written determination under 

23 paragraph (5), as applicable, solicit comments 

24 from each Federal, State, and local government 

25 agency and Indian tribe considering an aspect of 

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1 an application for Federal authorization (as de2 fined in section 34) with respect to the proposed 

3 license amendment, as well as other interested 

4 agencies, Indian tribes, and members of the pub5 lic; and 

6 ‘‘(B) during the 90-day period beginning on 

7 the date of publication of a notice under para8 graph (4)(A) or the date on which the Commis9 sion issues the written determination under 

10 paragraph (5), as applicable, consult with— 

11 ‘‘(i) appropriate Federal agencies and 

12 the State agency exercising administrative 

13 control over the fish and wildlife resources, 

14 and water quality and supply, of the State 

15 in which the qualifying project upgrade is 

16 located; 

17 ‘‘(ii) any Federal department super18 vising any public lands or reservations oc19 cupied by the qualifying project upgrade; 

20 and 

21 ‘‘(iii) any Indian tribe affected by the 

22 qualifying project upgrade. 

23 ‘‘(7) FEDERAL AUTHORIZATIONS.—The schedule 

24 established by the Commission under section 34 for 

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1 quire final disposition on all necessary Federal au2 thorizations (as defined in section 34), other than 

3 final action by the Commission, by not later than 120 

4 days after the date on which the Commission issues 

5 a notice under paragraph (4)(A) or a written deter6 mination under paragraph (5), as applicable. 

7 ‘‘(8) COMMISSION ACTION.—Not later than 150 

8 days after the date on which the Commission issues 

9 a notice under paragraph (4)(A) or a written deter10 mination under paragraph (5), as applicable, the 

11 Commission shall take final action on the license 

12 amendment application. 

13 ‘‘(9) LICENSE AMENDMENT CONDITIONS.—Any 

14 condition included in or applicable to a license 

15 amendment approved under this subsection, including 

16 any condition or other requirement of a Federal au17 thorization, shall be limited to those that are— 

18 ‘‘(A) necessary to protect public safety; or 

19 ‘‘(B) reasonable, economically feasible, and 

20 essential to prevent loss of or damage to, or to 

21 mitigate adverse effects on, fish and wildlife re22 sources, water supply, and water quality that 

23 are directly caused by the construction and oper24 ation of the qualifying project upgrade, as com25 pared to the environmental baseline existing at 

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1 the time the Commission approves the applica2 tion for the license amendment. 

3 ‘‘(10) PROPOSED LICENSE AMENDMENTS THAT

4 ARE NOT QUALIFYING PROJECT UPGRADES.—If the 

5 Commission determines under paragraph (3) or (5) 

6 that a proposed license amendment is not for a quali7 fying project upgrade, the procedures under para8 graphs (6) through (9) shall not apply to the applica9 tion. 

10 ‘‘(11) RULEMAKING.—Not later than 180 days 

11 after the date of enactment of this section, the Com12 mission shall, after notice and opportunity for public 

13 comment, issue a rule to implement this subsection. 

14 ‘‘(12) DEFINITIONS.—For purposes of this sub15 section: 

16 ‘‘(A) QUALIFYING PROJECT UPGRADE.—The 

17 term ‘qualifying project upgrade’ means a 

18 change to a project licensed under this part that 

19 meets the qualifying criteria, as determined by 

20 the Commission. 

21 ‘‘(B) QUALIFYING CRITERIA.—The term 

22 ‘qualifying criteria’ means, with respect to a 

23 project license under this part, a change to the 

24 project that— 

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1 ‘‘(i) if carried out, would be unlikely to 

2 adversely affect any species listed as threat3 ened or endangered under the Endangered 

4 Species Act of 1973 or result in the destruc5 tion or adverse modification of critical 

6 habitat, as determined in consultation with 

7 the Secretary of the Interior or Secretary of 

8 Commerce, as appropriate, in accordance 

9 with section 7 of the Endangered Species 

10 Act of 1973; 

11 ‘‘(ii) is consistent with any applicable 

12 comprehensive plan under section 10(a)(2); 

13 ‘‘(iii) includes only changes to project 

14 lands, waters, or operations that, in the 

15 judgment of the Commission, would result 

16 in only insignificant or minimal cumu17 lative adverse environmental effects; 

18 ‘‘(iv) would be unlikely to adversely af19 fect water quality and water supply; and 

20 ‘‘(v) proposes to implement— 

21 ‘‘(I) capacity increases, efficiency 

22 improvements, or other enhancements 

23 to hydropower generation at the li24 censed project; 

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1 ‘‘(II) environmental protection, 

2 mitigation, or enhancement measures 

3 to benefit fish and wildlife resources or 

4 other natural and cultural resources; 

5 or 

6 ‘‘(III) improvements to public 

7 recreation at the licensed project. 

8 ‘‘(b) AMENDMENT APPROVAL PROCESSES.— 

9 ‘‘(1) RULE.—Not later than 1 year after the date 

10 of enactment of this section, the Commission shall, 

11 after notice and opportunity for public comment, 

12 issue a rule establishing new standards and proce13 dures for license amendment applications under this 

14 part. In issuing such rule, the Commission shall seek 

15 to develop the most efficient and expedient process, 

16 consultation, and review requirements, commensurate 

17 with the scope of different categories of proposed li18 cense amendments. Such rule shall account for dif19 ferences in environmental effects across a wide range 

20 of categories of license amendment applications. 

21 ‘‘(2) CAPACITY.—In issuing a rule under this 

22 subsection, the Commission shall take into consider23 ation that a change in generating or hydraulic capac24 ity may indicate the potential environmental effects 

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1 of a proposed amendment but is not determinative of 

2 such effects. 

3 ‘‘(3) PROCESS OPTIONS.—In issuing a rule 

4 under this subsection, the Commission shall take into 

5 consideration the range of process options available 

6 under the Commission’s regulations for new and 

7 original license applications and adapt such options 

8 to amendment applications, where appropriate.’’. 

9 SEC. 1309. PROMOTING HYDROPOWER DEVELOPMENT AT 

10 EXISTING NONPOWERED DAMS. 

11 Part I of the Federal Power Act (16 U.S.C. 792 et 

12 seq.), as amended by section 1308, is further amended by 

13 adding at the end the following: 

14 ‘‘SEC. 38. PROMOTING HYDROPOWER DEVELOPMENT AT EX15 ISTING NONPOWERED DAMS. 

16 ‘‘(a) EXEMPTIONS FOR QUALIFYING FACILITIES.— 

17 ‘‘(1) EXEMPTION QUALIFICATIONS.—Subject to 

18 the requirements of this subsection, the Commission 

19 may grant an exemption in whole or in part from the 

20 requirements of this part, including any license re21 quirements contained in this part, to any facility the 

22 Commission determines is a qualifying facility. 

23 ‘‘(2) CONSULTATION WITH FEDERAL AND STATE

24 AGENCIES.—In granting any exemption under this 

25 subsection, the Commission shall consult with— 

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1 ‘‘(A) the United States Fish and Wildlife 

2 Service, the National Marine Fisheries Service, 

3 and the State agency exercising administrative 

4 control over the fish and wildlife resources of the 

5 State in which the facility will be located, in the 

6 manner provided by the Fish and Wildlife Co7 ordination Act; 

8 ‘‘(B) any Federal department supervising 

9 any public lands or reservations occupied by the 

10 project; and 

11 ‘‘(C) any Indian tribe affected by the 

12 project. 

13 ‘‘(3) EXEMPTION CONDITIONS.— 

14 ‘‘(A) IN GENERAL.—The Commission shall 

15 include in any exemption granted under this 

16 subsection only such terms and conditions that 

17 the Commission determines are— 

18 ‘‘(i) necessary to protect public safety; 

19 or 

20 ‘‘(ii) reasonable, economically feasible, 

21 and essential to prevent loss of or damage 

22 to, or to mitigate adverse effects on, fish and 

23 wildlife resources directly caused by the con24 struction and operation of the qualifying fa25 cility, as compared to the environmental 

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1 baseline existing at the time the Commis2 sion grants the exemption. 

3 ‘‘(B) NO CHANGES TO RELEASE REGIME.— 

4 No Federal authorization required with respect 

5 to a qualifying facility described in paragraph 

6 (1), including an exemption granted by the Com7 mission under this subsection, may include any 

8 condition or other requirement that results in 

9 any material change to the storage, control, 

10 withdrawal, diversion, release, or flow operations 

11 of the associated qualifying nonpowered dam. 

12 ‘‘(4) ENVIRONMENTAL REVIEW.—The Commis13 sion’s environmental review under the National Envi14 ronmental Policy Act of 1969 of a proposed exemp15 tion under this subsection shall consist only of an en16 vironmental assessment, unless the Commission deter17 mines, by rule or order, that the Commission’s obliga18 tions under such Act for granting exemptions under 

19 this subsection can be met through a categorical exclu20 sion. 

21 ‘‘(5) VIOLATION OF TERMS OF EXEMPTION.—Any 

22 violation of a term or condition of any exemption 

23 granted under this subsection shall be treated as a 

24 violation of a rule or order of the Commission under 

25 this Act. 

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1 ‘‘(6) ANNUAL CHARGES FOR ENHANCEMENT AC2 TIVITIES.—Exemptees under this subsection for any 

3 facility located at a non-Federal dam shall pay to the 

4 United States reasonable annual charges in an 

5 amount to be fixed by the Commission for the purpose 

6 of funding environmental enhancement projects in 

7 watersheds in which facilities exempted under this 

8 subsection are located. Such annual charges shall be 

9 equivalent to the annual charges for use of a Govern10 ment dam under section 10(e), unless the Commission 

11 determines, by rule, that a lower charge is appro12 priate to protect exemptees’ investment in the project 

13 or avoid increasing the price to consumers of power 

14 due to such charges. The proceeds of charges made by 

15 the Commission under this paragraph shall be paid 

16 into the Treasury of the United States and credited 

17 to miscellaneous receipts. Subject to annual appro18 priation Acts, such proceeds shall be available to Fed19 eral and State fish and wildlife agencies for purposes 

20 of carrying out specific environmental enhancement 

21 projects in watersheds in which one or more facilities 

22 exempted under this subsection are located. Not later 

23 than 180 days after the date of enactment of this sec24 tion, the Commission shall establish rules, after notice 

25 and opportunity for public comment, for the collection 

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1 and administration of annual charges under this 

2 paragraph. 

3 ‘‘(7) EFFECT OF JURISDICTION.—The jurisdic4 tion of the Commission over any qualifying facility 

5 exempted under this subsection shall extend only to 

6 the qualifying facility exempted and any associated 

7 primary transmission line, and shall not extend to 

8 any conduit, dam, impoundment, shoreline or other 

9 land, or any other project work associated with the 

10 qualifying facility exempted under this subsection. 

11 ‘‘(b) DEFINITIONS.—For purposes of this section— 

12 ‘‘(1) FEDERAL AUTHORIZATION.—The term ‘Fed13 eral authorization’ has the same meaning as provided 

14 in section 34. 

15 ‘‘(2) QUALIFYING CRITERIA.—The term ‘quali16 fying criteria’ means, with respect to a facility— 

17 ‘‘(A) as of the date of enactment of this sec18 tion, the facility is not licensed under, or ex19 empted from the license requirements contained 

20 in, this part; 

21 ‘‘(B) the facility will be associated with a 

22 qualifying nonpowered dam; 

23 ‘‘(C) the facility will be constructed, oper24 ated, and maintained for the generation of elec25 tric power; 

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1 ‘‘(D) the facility will use for such genera2 tion any withdrawals, diversions, releases, or 

3 flows from the associated qualifying nonpowered 

4 dam, including its associated impoundment or 

5 other infrastructure; and 

6 ‘‘(E) the operation of the facility will not 

7 result in any material change to the storage, con8 trol, withdrawal, diversion, release, or flow oper9 ations of the associated qualifying nonpowered 

10 dam. 

11 ‘‘(3) QUALIFYING FACILITY.—The term ‘quali12 fying facility’ means a facility that is determined 

13 under this section to meet the qualifying criteria. 

14 ‘‘(4) QUALIFYING NONPOWERED DAM.—The term 

15 ‘qualifying nonpowered dam’ means any dam, dike, 

16 embankment, or other barrier— 

17 ‘‘(A) the construction of which was com18 pleted on or before the date of enactment of this 

19 section; 

20 ‘‘(B) that is operated for the control, release, 

21 or distribution of water for agricultural, munic22 ipal, navigational, industrial, commercial, envi23 ronmental, recreational, aesthetic, or flood con24 trol purposes; 

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1 ‘‘(C) that, as of the date of enactment of this 

2 section, is not equipped with hydropower gener3 ating works that are licensed under, or exempted 

4 from the license requirements contained in, this 

5 part; and 

6 ‘‘(D) that, in the case of a non-Federal 

7 dam, has been certified by an independent con8 sultant approved by the Commission as com9 plying with the Commission’s dam safety re10 quirements.’’. 

11 TITLE II—21ST CENTURY 

12 WORKFORCE 

13 SEC. 2001. ENERGY AND MANUFACTURING WORKFORCE DE14 VELOPMENT. 

15 (a) IN GENERAL.—The Secretary of Energy (in this 

16 section referred to as the ‘‘Secretary’’) shall establish and 

17 carry out a comprehensive program to improve education 

18 and training for energy and manufacturing-related jobs in 

19 order to increase the number of skilled workers trained to 

20 work in energy and manufacturing-related fields, including 

21 by— 

22 (1) encouraging underrepresented groups, includ23 ing religious and ethnic minorities, women, veterans, 

24 individuals with disabilities, and socioeconomically 

25 disadvantaged individuals to enter into the science, 

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1 technology, engineering, and mathematics (in this sec2 tion referred to as ‘‘STEM’’) fields; 

3 (2) encouraging the Nation’s education system to 

4 equip students with the skills, mentorships, training, 

5 and technical expertise necessary to fill the employ6 ment opportunities vital to managing and operating 

7 the Nation’s energy and manufacturing industries; 

8 (3) providing students and other candidates for 

9 employment with the necessary skills and certifi10 cations for skilled, semiskilled, and highly skilled en11 ergy and manufacturing-related jobs; and 

12 (4) strengthening and more fully engaging De13 partment of Energy programs and labs in carrying 

14 out the Department’s Minorities in Energy Initiative. 

15 (b) PRIORITY.—The Secretary shall make educating 

16 and training underrepresented groups for energy and man17 ufacturing-related jobs a national priority under the pro18 gram established under subsection (a). 

19 (c) DIRECT ASSISTANCE.—In carrying out the pro20 gram established under subsection (a), the Secretary shall 

21 provide direct assistance (including financial assistance 

22 awards, technical expertise, wraparound services, career 

23 coaching, mentorships, internships, and partnerships) to 

24 schools, community colleges, workforce development organi25 zations, nonprofit organizations, labor organizations, apmstockstill on DSK4VPTVN1PROD with BILLS

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1 prenticeship programs, and minority serving institutions. 

2 The Secretary shall distribute direct assistance in a manner 

3 proportional to energy and manufacturing industry needs 

4 and demand for jobs, consistent with information obtained 

5 under subsections (e)(3) and (i). 

6 (d) CLEARINGHOUSE.—In carrying out the program 

7 established under subsection (a), the Secretary shall estab8 lish a clearinghouse to— 

9 (1) maintain and update information and re10 sources on training and workforce development pro11 grams for energy and manufacturing-related jobs, in12 cluding job training and workforce development pro13 grams available to assist displaced and unemployed 

14 energy and manufacturing workers transitioning to 

15 new employment; and 

16 (2) act as a resource, and provide guidance, for 

17 schools, community colleges, universities (including 

18 minority serving institutions), workforce development 

19 programs, labor-management organizations, and in20 dustry organizations that would like to develop and 

21 implement energy and manufacturing-related train22 ing programs. 

23 (e) COLLABORATION.—In carrying out the program es24 tablished under subsection (a), the Secretary— 

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1 (1) shall collaborate with schools, community col2 leges, universities (including minority serving institu3 tions), workforce-training organizations, national lab4 oratories, unions, State energy offices, workforce in5 vestment boards, and the energy and manufacturing 

6 industries; 

7 (2) shall encourage and foster collaboration, 

8 mentorships, and partnerships among organizations 

9 (including unions, industry, schools, community col10 leges, workforce-development organizations, and col11 leges and universities) that currently provide effective 

12 job training programs in the energy and manufac13 turing fields and institutions (including schools, com14 munity colleges, workforce development programs, and 

15 colleges and universities) that seek to establish these 

16 types of programs in order to share best practices and 

17 approaches that best suit local, State, and national 

18 needs; and 

19 (3) shall collaborate with the Bureau of Labor 

20 Statistics, the Department of Commerce, the Bureau 

21 of the Census, and the energy and manufacturing in22 dustries to develop a comprehensive and detailed un23 derstanding of the energy and manufacturing work24 force needs and opportunities by State and by region, 

25 and publish an annual report on energy and manumstockstill on DSK4VPTVN1PROD with BILLS

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1 facturing job creation by the sectors enumerated in 

2 subsection (i). 

3 (f) GUIDELINES FOR EDUCATIONAL INSTITUTIONS.— 

4 (1) IN GENERAL.—In carrying out the program 

5 established under subsection (a), the Secretary, in col6 laboration with the Secretary of Education, the Sec7 retary of Commerce, the Secretary of Labor, the Na8 tional Science Foundation, and industry shall develop 

9 voluntary guidelines and best practices for edu10 cational institutions of all levels, including for ele11 mentary and secondary schools and community col12 leges and for undergraduate, graduate, and post13 graduate university programs, to help provide grad14 uates with the skills necessary to work in energy and 

15 manufacturing-related jobs. 

16 (2) INPUT.—The Secretary shall solicit input 

17 from the oil, gas, coal, renewable, nuclear, utility, en18 ergy-intensive and advanced manufacturing, and 

19 pipeline industries in developing guidelines under 

20 paragraph (1). 

21 (3) ENERGY AND MANUFACTURING EFFICIENCY

22 AND CONSERVATION INITIATIVES.—The guidelines de23 veloped under paragraph (1) shall include grade-spe24 cific guidelines for teaching energy and manufacmstockstill on DSK4VPTVN1PROD with BILLS

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1 turing efficiency and conservation initiatives to edu2 cate students and families. 

3 (4) STEM EDUCATION.—The guidelines devel4 oped under paragraph (1) shall promote STEM edu5 cation as it relates to job opportunities in energy and 

6 manufacturing-related fields of study in schools, com7 munity colleges, and universities nationally. 

8 (g) OUTREACH TO MINORITY SERVING INSTITU9 TIONS.—In carrying out the program established under sub10 section (a), the Secretary shall— 

11 (1) give special consideration to increasing out12 reach to minority serving institutions (including his13 torically black colleges and universities, predomi14 nantly black institutions, Hispanic serving institu15 tions, and tribal institutions); 

16 (2) make resources available to minority serving 

17 institutions with the objective of increasing the num18 ber of skilled minorities and women trained to go into 

19 the energy and manufacturing sectors; 

20 (3) encourage industry to improve the opportu21 nities for students of minority serving institutions to 

22 participate in industry internships and cooperative 

23 work/study programs; and 

24 (4) partner with the Department of Energy lab25 oratories to increase underrepresented groups’ particimstockstill on DSK4VPTVN1PROD with BILLS

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1 pation in internships, fellowships, traineeships, and 

2 employment at all Department of Energy labora3 tories. 

4 (h) OUTREACH TO DISPLACED AND UNEMPLOYED EN5 ERGY AND MANUFACTURING WORKERS.—In carrying out 

6 the program established under subsection (a), the Secretary 

7 shall— 

8 (1) give special consideration to increasing out9 reach to employers and job trainers preparing dis10 placed and unemployed energy and manufacturing 

11 workers for emerging energy and manufacturing jobs; 

12 (2) make resources available to institutions serv13 ing displaced and unemployed energy and manufac14 turing workers with the objective of training individ15 uals to re-enter the energy and manufacturing work16 force; 

17 (3) encourage the energy and manufacturing in18 dustries to improve opportunities for displaced and 

19 unemployed energy and manufacturing workers to 

20 participate in internships and cooperative work/study 

21 programs; and 

22 (4) work closely with the energy and manufac23 turing industries to identify energy and manufac24 turing operations, such as coal-fired power plants and 

25 coal mines, scheduled for closure and to provide early 

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1 intervention assistance to workers employed at such 

2 energy and manufacturing operations by— 

3 (A) giving special consideration to employ4 ers and job trainers preparing such workers for 

5 emerging energy and manufacturing jobs; 

6 (B) making resources available to institu7 tions serving such workers with the objective of 

8 training them to re-enter the energy and manu9 facturing workforce; and 

10 (C) encouraging the energy and manufac11 turing industries to improve opportunities for 

12 such workers to participate in internships and 

13 cooperative work-study programs. 

14 (i) GUIDELINES TO DEVELOP SKILLS FOR AN ENERGY

15 AND MANUFACTURING INDUSTRY WORKFORCE.—In car16 rying out the program established under subsection (a), the 

17 Secretary shall collaborate with representatives from the en18 ergy and manufacturing industries (including the oil, gas, 

19 coal, nuclear, utility, pipeline, renewable, petrochemical, 

20 manufacturing, and electrical construction sectors) to iden21 tify the areas of highest need in each sector and to develop 

22 guidelines for the skills necessary to develop a workforce 

23 trained to go into the following sectors of the energy and 

24 manufacturing sectors: 

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1 (1) Energy efficiency industry, including work 

2 in energy efficiency, conservation, weatherization, or 

3 retrofitting, or as inspectors or auditors. 

4 (2) Pipeline industry, including work in pipe5 line construction and maintenance or work as engi6 neers or technical advisors. 

7 (3) Utility industry, including work in the gen8 eration, transmission, and distribution of electricity 

9 and natural gas, such as utility technicians, opera10 tors, lineworkers, engineers, scientists, and informa11 tion technology specialists. 

12 (4) Alternative fuels, including work in biofuel 

13 development and production. 

14 (5) Nuclear industry, including work as sci15 entists, engineers, technicians, mathematicians, or se16 curity personnel. 

17 (6) Oil and gas industry, including work as sci18 entists, engineers, technicians, mathematicians, petro19 chemical engineers, or geologists. 

20 (7) Renewable industry, including work in the 

21 development, manufacturing, and production of re22 newable energy sources (such as solar, hydropower, 

23 wind, or geothermal energy). 

24 (8) Coal industry, including work as coal min25 ers, engineers, developers and manufacturers of statemstockstill on DSK4VPTVN1PROD with BILLS

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1 of-the-art coal facilities, technology vendors, coal 

2 transportation workers and operators, or mining 

3 equipment vendors. 

4 (9) Manufacturing industry, including work as 

5 operations technicians, operations and design in ad6 ditive manufacturing, 3–D printing, advanced com7 posites, and advanced aluminum and other metal al8 loys, industrial energy efficiency management sys9 tems, including power electronics, and other innova10 tive technologies. 

11 (10) Chemical manufacturing industry, includ12 ing work in construction (such as welders, pipefitters, 

13 and tool and die makers) or as instrument and elec14 trical technicians, machinists, chemical process opera15 tors, chemical engineers, quality and safety profes16 sionals, and reliability engineers. 

17 (j) ENROLLMENT IN TRAINING AND APPRENTICESHIP

18 PROGRAMS.—In carrying out the program established 

19 under subsection (a), the Secretary shall work with indus20 try, organized labor, and community-based workforce orga21 nizations to help identify students and other candidates, in22 cluding from underrepresented communities such as mi23 norities, women, and veterans, to enroll into training and 

24 apprenticeship programs for energy and manufacturing-re25 lated jobs. 

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1 TITLE III—ENERGY SECURITY 

2 AND DIPLOMACY 

3 SEC. 3001. SENSE OF CONGRESS. 

4 Congress finds the following: 

5 (1) North America’s energy revolution has sig6 nificantly enhanced energy security in the United 

7 States, and fundamentally changed the Nation’s en8 ergy future from that of scarcity to abundance. 

9 (2) North America’s energy abundance has in10 creased global energy supplies and reduced the price 

11 of energy for consumers in the United States and 

12 abroad. 

13 (3) Allies and trading partners of the United 

14 States, including in Europe and Asia, are seeking 

15 stable and affordable energy supplies from North 

16 America to enhance their energy security. 

17 (4) The United States has an opportunity to im18 prove its energy security and promote greater sta19 bility and affordability of energy supplies for its al20 lies and trading partners through a more integrated, 

21 secure, and competitive North American energy sys22 tem. 

23 (5) The United States also has an opportunity 

24 to promote such objectives by supporting the free flow 

25 of energy commodities and more open, transparent, 

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1 and competitive global energy markets, and through 

2 greater Federal agency coordination relating to regu3 lations or agency actions that significantly affect the 

4 supply, distribution, or use of energy. 

5 SEC. 3002. ENERGY SECURITY VALUATION. 

6 (a) ESTABLISHMENT OF ENERGY SECURITY VALU7 ATION METHODS.—Not later than one year after the date 

8 of enactment of this Act, the Secretary of Energy, in collabo9 ration with the Secretary of State, shall develop and trans10 mit, after public notice and comment, to the Committee on 

11 Energy and Commerce and the Committee on Foreign Af12 fairs of the House of Representatives and the Committee on 

13 Energy and Natural Resources and the Committee on For14 eign Relations of the Senate a report that develops rec15 ommended United States energy security valuation meth16 ods. In developing the report, the Secretaries may consider 

17 the recommendations of the Administration’s Quadrennial 

18 Energy Review released on April 21, 2015. The report 

19 shall— 

20 (1) evaluate and define United States energy se21 curity to reflect modern domestic and global energy 

22 markets and the collective needs of the United States 

23 and its allies and partners; 

24 (2) identify transparent and uniform or coordi25 nated procedures and criteria to ensure that energymstockstill on DSK4VPTVN1PROD with BILLS

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1 related actions that significantly affect the supply, 

2 distribution, or use of energy are evaluated with re3 spect to their potential impact on energy security, in4 cluding their impact on— 

5 (A) consumers and the economy; 

6 (B) energy supply diversity and resiliency; 

7 (C) well-functioning and competitive energy 

8 markets; 

9 (D) United States trade balance; and 

10 (E) national security objectives; and 

11 (3) include a recommended implementation 

12 strategy that identifies and aims to ensure that the 

13 procedures and criteria referred to in paragraph (2) 

14 are— 

15 (A) evaluated consistently across the Fed16 eral Government; and 

17 (B) weighed appropriately and balanced 

18 with environmental considerations required by 

19 Federal law. 

20 (b) PARTICIPATION.—In developing the report referred 

21 to in subsection (a), the Secretaries may consult with rel22 evant Federal, State, private sector, and international par23 ticipants, as appropriate and consistent with applicable 

24 law. 

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1 SEC. 3003. NORTH AMERICAN ENERGY SECURITY PLAN. 

2 (a) REQUIREMENT.—Not later than one year after the 

3 date of enactment of this Act, the Secretary of Energy, in 

4 collaboration with the Secretary of State, shall develop and 

5 transmit to the Committee on Energy and Commerce and 

6 the Committee on Foreign Affairs of the House of Represent7 atives and the Committee on Energy and Natural Resources 

8 and the Committee on Foreign Relations of the Senate the 

9 plan described in subsection (b). 

10 (b) PURPOSE.—The plan referred to in subsection (a) 

11 shall include— 

12 (1) a recommended framework and implementa13 tion strategy to— 

14 (A) improve planning and coordination 

15 with Canada and Mexico to enhance energy inte16 gration, strengthen North American energy secu17 rity, and promote efficiencies in the exploration, 

18 production, storage, supply, distribution, mar19 keting, pricing, and regulation of North Amer20 ican energy resources; and 

21 (B) address— 

22 (i) North American energy public data, 

23 statistics, and mapping collaboration; 

24 (ii) responsible and sustainable best 

25 practices for the development of unconven26 tional oil and natural gas; and 

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1 (iii) modern, resilient energy infra2 structure for North America, including 

3 physical infrastructure as well as institu4 tional infrastructure such as policies, regu5 lations, and practices relating to energy de6 velopment; and 

7 (2) a recommended framework and implementa8 tion strategy to improve collaboration with Caribbean 

9 and Central American partners on energy security, 

10 including actions to support— 

11 (A) more open, transparent, and competi12 tive energy markets; 

13 (B) regulatory capacity building; 

14 (C) improvements to energy transmission 

15 and storage; and 

16 (D) improvements to the performance of en17 ergy infrastructure and efficiency. 

18 (c) PARTICIPATION.—In developing the plan referred 

19 to in subsection (a), the Secretaries may consult with other 

20 Federal, State, private sector, and international partici21 pants, as appropriate and consistent with applicable law. 

22 SEC. 3004. COLLECTIVE ENERGY SECURITY. 

23 (a) IN GENERAL.—The Secretary of Energy and the 

24 Secretary of State shall collaborate to strengthen domestic 

25 energy security and the energy security of the allies and 

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1 trading partners of the United States, including through 

2 actions that support or facilitate— 

3 (1) energy diplomacy; 

4 (2) the delivery of United States assistance, in5 cluding energy resources and technologies, to prevent 

6 or mitigate an energy security crisis; 

7 (3) the development of environmentally and com8 mercially sustainable energy resources; 

9 (4) open, transparent, and competitive energy 

10 markets; and 

11 (5) regulatory capacity building. 

12 (b) ENERGY SECURITY FORUMS.—Not later than one 

13 year after the date of enactment of this Act, the Secretary 

14 of Energy, in collaboration with the Secretary of State, 

15 shall convene not less than 2 forums to promote the collec16 tive energy security of the United States and its allies and 

17 trading partners. The forums shall include participation by 

18 the Secretary of Energy and the Secretary of State. In addi19 tion, an invitation shall be extended to— 

20 (1) appropriate representatives of foreign govern21 ments that are allies or trading partners of the 

22 United States; and 

23 (2) independent experts and industry representa24 tives. 

25 (c) REQUIREMENTS.—The forums shall— 

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1 (1) consist of at least one Trans-Atlantic and one 

2 Trans-Pacific energy security forum; 

3 (2) be designed to foster dialogue among govern4 ment officials, independent experts, and industry rep5 resentatives regarding— 

6 (A) the current state of global energy mar7 kets; 

8 (B) trade and investment issues relevant to 

9 energy; and 

10 (C) barriers to more open, competitive, and 

11 transparent energy markets; and 

12 (3) be recorded and made publicly available on 

13 the Department of Energy’s website, including, not 

14 later than 30 days after each forum, publication on 

15 the website any significant outcomes. 

16 (d) NOTIFICATION.—At least 30 days before each of the 

17 forums referred to in subsection (b), the Secretary of Energy 

18 shall send a notification regarding the forum to— 

19 (1) the chair and the ranking minority member 

20 of the Committee on Energy and Commerce and the 

21 Committee on Foreign Affairs of the House of Rep22 resentatives; and 

23 (2) the chair and ranking minority member of 

24 the Committee on Energy and Natural Resources and 

25 the Committee on Foreign Relations of the Senate. 

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1 SEC. 3005. STRATEGIC PETROLEUM RESERVE MISSION 

2 READINESS PLAN. 

3 Not later than 180 days after the date of enactment 

4 of this Act, the Secretary of Energy shall conduct a long5 range strategic review of the Strategic Petroleum Reserve 

6 and develop and transmit to Congress a plan that includes 

7 an analysis and implementation schedule that— 

8 (1) specifies near-term and long-term roles of the 

9 Strategic Petroleum Reserve relative to United States 

10 energy security and economic goals and objectives; 

11 (2) describes existing legal authorities governing 

12 the policies, configuration, and capabilities of the 

13 Strategic Petroleum Reserve; 

14 (3) identifies Strategic Petroleum Reserve con15 figuration and performance capabilities and rec16 ommends an action plan to achieve the optimal— 

17 (A) capacity, location, and composition of 

18 petroleum products in the Reserve; and 

19 (B) storage and distributional capabilities; 

20 and 

21 (4) estimates the resources required to attain and 

22 maintain the Strategic Petroleum Reserve’s long-term 

23 sustainability and operational effectiveness. 

24 SEC. 3006. AUTHORIZATION TO EXPORT NATURAL GAS. 

25 (a) DECISION DEADLINE.—For proposals that must 

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1 latory Commission or the United States Maritime Adminis2 tration to site, construct, expand, or operate LNG export 

3 facilities, the Department of Energy shall issue a final deci4 sion on any application for the authorization to export nat5 ural gas under section 3 of the Natural Gas Act (15 U.S.C. 

6 717b) not later than 30 days after the later of— 

7 (1) the conclusion of the review to site, construct, 

8 expand, or operate the LNG facilities required by the 

9 National Environmental Policy Act of 1969 (42 

10 U.S.C. 4321 et seq.); or 

11 (2) the date of enactment of this Act. 

12 (b) CONCLUSION OF REVIEW.—For purposes of sub13 section (a), review required by the National Environmental 

14 Policy Act of 1969 shall be considered concluded— 

15 (1) for a project requiring an Environmental 

16 Impact Statement, 30 days after publication of a 

17 Final Environmental Impact Statement; 

18 (2) for a project for which an Environmental As19 sessment has been prepared, 30 days after publication 

20 by the Department of Energy of a Finding of No Sig21 nificant Impact; and 

22 (3) upon a determination by the lead agency 

23 that an application is eligible for a categorical exclu24 sion pursuant to National Environmental Policy Act 

25 of 1969 implementing regulations. 

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1 (c) PUBLIC DISCLOSURE OF EXPORT DESTINA2 TIONS.—Section 3 of the Natural Gas Act (15 U.S.C. 717b) 

3 is amended by adding at the end the following: 

4 ‘‘(g) PUBLIC DISCLOSURE OF LNG EXPORT DESTINA5 TIONS.—As a condition for approval of any authorization 

6 to export LNG, the Secretary of Energy shall require the 

7 applicant to publicly disclose the specific destination or des8 tinations of any such authorized LNG exports.’’. 

9 TITLE IV—ENERGY EFFICIENCY 

10 AND ACCOUNTABILITY 

11 Subtitle A—Energy Efficiency 

12 CHAPTER 1—FEDERAL AGENCY ENERGY 

13 EFFICIENCY 

14 SEC. 4111. ENERGY-EFFICIENT AND ENERGY-SAVING INFOR15 MATION TECHNOLOGIES. 

16 (a) AMENDMENT.—Subtitle C of title V of the Energy 

17 Independence and Security Act of 2007 (Public Law 110– 

18 140; 121 Stat. 1661) is amended by adding at the end the 

19 following: 

20 ‘‘SEC. 530. ENERGY-EFFICIENT AND ENERGY-SAVING INFOR21 MATION TECHNOLOGIES. 

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

23 ‘‘(1) DIRECTOR.—The term ‘Director’ means the 

24 Director of the Office of Management and Budget. 

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1 ‘‘(2) INFORMATION TECHNOLOGY.—The term ‘in2 formation technology’ has the meaning given that 

3 term in section 11101 of title 40, United States Code. 

4 ‘‘(b) DEVELOPMENT OF IMPLEMENTATION STRAT5 EGY.—Not later than 1 year after the date of enactment 

6 of this section, each Federal agency shall coordinate with 

7 the Director, the Secretary, and the Administrator of the 

8 Environmental Protection Agency to develop an implemen9 tation strategy (that includes best practices and measure10 ment and verification techniques) for the maintenance, pur11 chase, and use by the Federal agency of energy-efficient and 

12 energy-saving information technologies, taking into consid13 eration the performance goals established under subsection 

14 (d). 

15 ‘‘(c) ADMINISTRATION.—In developing an implementa16 tion strategy under subsection (b), each Federal agency 

17 shall consider— 

18 ‘‘(1) advanced metering infrastructure; 

19 ‘‘(2) energy-efficient data center strategies and 

20 methods of increasing asset and infrastructure utili21 zation; 

22 ‘‘(3) advanced power management tools; 

23 ‘‘(4) building information modeling, including 

24 building energy management; 

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1 ‘‘(5) secure telework and travel substitution tools; 

2 and 

3 ‘‘(6) mechanisms to ensure that the agency real4 izes the energy cost savings brought about through in5 creased efficiency and utilization. 

6 ‘‘(d) PERFORMANCE GOALS.— 

7 ‘‘(1) IN GENERAL.—Not later than 180 days 

8 after the date of enactment of this section, the Direc9 tor, in consultation with the Secretary, shall establish 

10 performance goals for evaluating the efforts of Federal 

11 agencies in improving the maintenance, purchase, 

12 and use of energy-efficient and energy-saving infor13 mation technology. 

14 ‘‘(2) BEST PRACTICES.—The Chief Information 

15 Officers Council established under section 3603 of title 

16 44, United States Code, shall recommend best prac17 tices for the attainment of the performance goals, 

18 which shall include Federal agency consideration of, 

19 to the extent applicable by law, the use of— 

20 ‘‘(A) energy savings performance con21 tracting; and 

22 ‘‘(B) utility energy services contracting. 

23 ‘‘(e) REPORTS.— 

24 ‘‘(1) AGENCY REPORTS.—Each Federal agency 

25 shall include in the report of the agency under section 

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1 527 a description of the efforts and results of the 

2 agency under this section. 

3 ‘‘(2) OMB GOVERNMENT EFFICIENCY REPORTS

4 AND SCORECARDS.—Effective beginning not later 

5 than October 1, 2017, the Director shall include in the 

6 annual report and scorecard of the Director required 

7 under section 528 a description of the efforts and re8 sults of Federal agencies under this section.’’. 

9 (b) CONFORMING AMENDMENT.—The table of contents 

10 for the Energy Independence and Security Act of 2007 is 

11 amended by adding after the item relating to section 529 

12 the following: 

‘‘Sec. 530. Energy-efficient and energy-saving information technologies.’’. 

13 SEC. 4112. ENERGY EFFICIENT DATA CENTERS. 

14 Section 453 of the Energy Independence and Security 

15 Act of 2007 (42 U.S.C. 17112) is amended— 

16 (1) in subsection (b)(2)(D)(iv), by striking ‘‘de17 termined by the organization’’ and inserting ‘‘pro18 posed by the stakeholders’’; 

19 (2) by striking subsection (b)(3); and 

20 (3) by striking subsections (c) through (g) and 

21 inserting the following: 

22 ‘‘(c) STAKEHOLDER INVOLVEMENT.—The Secretary 

23 and the Administrator shall carry out subsection (b) in col24 laboration with the information technology industry and 

25 other key stakeholders, with the goal of producing results 

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1 that accurately reflect the most relevant and useful informa2 tion available. In such collaboration, the Secretary and the 

3 Administrator shall pay particular attention to organiza4 tions that— 

5 ‘‘(1) have members with expertise in energy effi6 ciency and in the development, operation, and 

7 functionality of data centers, information technology 

8 equipment, and software, such as representatives of 

9 hardware manufacturers, data center operators, and 

10 facility managers; 

11 ‘‘(2) obtain and address input from Department 

12 of Energy National Laboratories or any college, uni13 versity, research institution, industry association, 

14 company, or public interest group with applicable ex15 pertise; 

16 ‘‘(3) follow— 

17 ‘‘(A) commonly accepted procedures for the 

18 development of specifications; and 

19 ‘‘(B) accredited standards development 

20 processes; and 

21 ‘‘(4) have a mission to promote energy efficiency 

22 for data centers and information technology. 

23 ‘‘(d) MEASUREMENTS AND SPECIFICATIONS.—The Sec24 retary and the Administrator shall consider and assess the 

25 adequacy of the specifications, measurements, best practices, 

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1 and benchmarks described in subsection (b) for use by the 

2 Federal Energy Management Program, the Energy Star 

3 Program, and other efficiency programs of the Department 

4 of Energy or the Environmental Protection Agency. 

5 ‘‘(e) STUDY.—The Secretary, in collaboration with the 

6 Administrator, shall, not later than 18 months after the 

7 date of enactment of the North American Energy Security 

8 and Infrastructure Act of 2015, make available to the public 

9 an update to the Report to Congress on Server and Data 

10 Center Energy Efficiency published on August 2, 2007, 

11 under section 1 of Public Law 109–431 (120 Stat. 2920), 

12 that provides— 

13 ‘‘(1) a comparison and gap analysis of the esti14 mates and projections contained in the original report 

15 with new data regarding the period from 2008 

16 through 2015; 

17 ‘‘(2) an analysis considering the impact of infor18 mation technologies, including virtualization and 

19 cloud computing, in the public and private sectors; 

20 ‘‘(3) an evaluation of the impact of the combina21 tion of cloud platforms, mobile devices, social media, 

22 and big data on data center energy usage; 

23 ‘‘(4) an evaluation of water usage in data cen24 ters and recommendations for reductions in such 

25 water usage; and 

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1 ‘‘(5) updated projections and recommendations 

2 for best practices through fiscal year 2020. 

3 ‘‘(f) DATA CENTER ENERGY PRACTITIONER PRO4 GRAM.—The Secretary, in collaboration with key stake5 holders and the Director of the Office of Management and 

6 Budget, shall maintain a data center energy practitioner 

7 program that leads to the certification of energy practi8 tioners qualified to evaluate the energy usage and efficiency 

9 opportunities in Federal data centers. Each Federal agency 

10 shall consider having the data centers of the agency evalu11 ated every 4 years, in accordance with section 543(f) of the 

12 National Energy Conservation Policy Act (42 U.S.C. 8253), 

13 by energy practitioners certified pursuant to such program. 

14 ‘‘(g) OPEN DATA INITIATIVE.—The Secretary, in col15 laboration with key stakeholders and the Director of the Of16 fice of Management and Budget, shall establish an open 

17 data initiative for Federal data center energy usage data, 

18 with the purpose of making such data available and acces19 sible in a manner that encourages further data center inno20 vation, optimization, and consolidation. In establishing the 

21 initiative, the Secretary shall consider the use of the online 

22 Data Center Maturity Model. 

23 ‘‘(h) INTERNATIONAL SPECIFICATIONS AND

24 METRICS.—The Secretary, in collaboration with key stake25 holders, shall actively participate in efforts to harmonize 

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1 global specifications and metrics for data center energy and 

2 water efficiency. 

3 ‘‘(i) DATA CENTER UTILIZATION METRIC.—The Sec4 retary, in collaboration with key stakeholders, shall facili5 tate the development of an efficiency metric that measures 

6 the energy efficiency of a data center (including equipment 

7 and facilities). 

8 ‘‘(j) PROTECTION OF PROPRIETARY INFORMATION.— 

9 The Secretary and the Administrator shall not disclose any 

10 proprietary information or trade secrets provided by any 

11 individual or company for the purposes of carrying out this 

12 section or the programs and initiatives established under 

13 this section.’’. 

14 SEC. 4113. REPORT ON ENERGY AND WATER SAVINGS PO15 TENTIAL FROM THERMAL INSULATION. 

16 (a) REPORT.—Not later than 1 year after the date of 

17 enactment of this Act, the Secretary of Energy, in consulta18 tion with appropriate Federal agencies and relevant stake19 holders, shall submit to the Committee on Energy and Nat20 ural Resources of the Senate and the Committee on Energy 

21 and Commerce of the House of Representatives a report on 

22 the impact of thermal insulation on both energy and water 

23 use systems for potable hot and chilled water in Federal 

24 buildings, and the return on investment of installing such 

25 insulation. 

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1 (b) CONTENTS.—The report shall include— 

2 (1) an analysis based on the cost of municipal 

3 or regional water for delivered water and the avoided 

4 cost of new water; and 

5 (2) a summary of energy and water savings, in6 cluding short-term and long-term (20 years) projec7 tions of such savings. 

8 SEC. 4114. FEDERAL PURCHASE REQUIREMENT. 

9 (a) DEFINITIONS.—Section 203(b) of the Energy Pol10 icy Act of 2005 (42 U.S.C. 15852(b)) is amended by strik11 ing paragraph (2) and inserting the following: 

12 ‘‘(2) RENEWABLE ENERGY.—The term ‘renewable 

13 energy’ means electric energy, or thermal energy if re14 sulting from a thermal energy project placed in serv15 ice after December 31, 2014, generated from, or avoid16 ed by, solar, wind, biomass, landfill gas, ocean (in17 cluding tidal, wave, current, and thermal), geo18 thermal, municipal solid waste (in accordance with 

19 subsection (e)), qualified waste heat resource, or new 

20 hydroelectric generation capacity achieved from in21 creased efficiency or additions of new capacity at an 

22 existing hydroelectric project. 

23 ‘‘(3) QUALIFIED WASTE HEAT RESOURCE.—The 

24 term ‘qualified waste heat resource’ means— 

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1 ‘‘(A) exhaust heat or flared gas from any 

2 industrial process; 

3 ‘‘(B) waste gas or industrial tail gas that 

4 would otherwise be flared, incinerated, or vented; 

5 ‘‘(C) a pressure drop in any gas for an in6 dustrial or commercial process; or 

7 ‘‘(D) such other forms of waste heat as the 

8 Secretary determines appropriate.’’. 

9 (b) PAPER RECYCLING.—Section 203 of the Energy 

10 Policy Act of 2005 (42 U.S.C. 15852) is amended by adding 

11 at the end the following: 

12 ‘‘(e) PAPER RECYCLING.— 

13 ‘‘(1) SEPARATE COLLECTION.—For purposes of 

14 this section, any Federal agency may consider electric 

15 energy generation purchased from a facility to be re16 newable energy if the municipal solid waste used by 

17 the facility to generate the electricity is— 

18 ‘‘(A) separately collected (within the mean19 ing of section 246.101(z) of title 40, Code of Fed20 eral Regulations, as in effect on the date of en21 actment of the North American Energy Security 

22 and Infrastructure Act of 2015) from paper that 

23 is commonly recycled; and 

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1 ‘‘(B) processed in a way that keeps paper 

2 that is commonly recycled segregated from non3 recyclable solid waste. 

4 ‘‘(2) INCIDENTAL INCLUSION.—Municipal solid 

5 waste used to generate electric energy that meets the 

6 conditions described in paragraph (1) shall be consid7 ered renewable energy even if the municipal solid 

8 waste contains incidental commonly recycled paper. 

9 ‘‘(3) NO EFFECT ON EXISTING PROCESSES.— 

10 Nothing in paragraph (1) shall be interpreted to re11 quire a State or political subdivision of a State, di12 rectly or indirectly, to change the systems, processes, 

13 or equipment it uses to collect, treat, dispose of, or 

14 otherwise use municipal solid waste, within the 

15 meaning of the Solid Waste Disposal Act (42 U.S.C. 

16 6901 et seq.), nor require a change to the regulations 

17 that implement subtitle D of such Act (42 U.S.C. 

18 6941 et seq.).’’. 

19 SEC. 4115. ENERGY PERFORMANCE REQUIREMENT FOR 

20 FEDERAL BUILDINGS. 

21 Section 543 of the National Energy Conservation Pol22 icy Act (42 U.S.C. 8253) is amended— 

23 (1) by striking subsection (a) and inserting the 

24 following: 

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1 ‘‘(a) ENERGY PERFORMANCE REQUIREMENT FOR FED2 ERAL BUILDINGS.— 

3 ‘‘(1) REQUIREMENT.—Subject to paragraph (2), 

4 each agency shall apply energy conservation measures 

5 to, and shall improve the design for the construction 

6 of, the Federal buildings of the agency (including each 

7 industrial or laboratory facility) so that the energy 

8 consumption per gross square foot of the Federal 

9 buildings of the agency in fiscal years 2006 through 

10 2017 is reduced, as compared with the energy con11 sumption per gross square foot of the Federal build12 ings of the agency in fiscal year 2003, by the percent13 age specified in the following table: 

Percentage 

‘‘Fiscal Year 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. 

14 ‘‘(2) EXCLUSION FOR BUILDINGS WITH ENERGY

15 INTENSIVE ACTIVITIES.— 

16 ‘‘(A) IN GENERAL.—An agency may exclude 

17 from the requirements of paragraph (1) any 

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1 sumption and gross square footage) in which en2 ergy intensive activities are carried out. 

3 ‘‘(B) REPORTS.—Each agency shall identify 

4 and list in each report made under section 

5 548(a) the buildings designated by the agency for 

6 exclusion under subparagraph (A). 

7 ‘‘(3) REVIEW.—Not later than December 31, 

8 2017, the Secretary shall— 

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

12 ‘‘(B) based on the review conducted under 

13 subparagraph (A), submit to Congress a report 

14 that addresses the feasibility of requiring each 

15 agency to apply energy conservation measures to, 

16 and improve the design for the construction of, 

17 the Federal buildings of the agency (including 

18 each industrial or laboratory facility) so that the 

19 energy consumption per gross square foot of the 

20 Federal buildings of the agency in each of fiscal 

21 years 2018 through 2030 is reduced, as compared 

22 with the energy consumption per gross square 

23 foot of the Federal buildings of the agency in the 

24 prior fiscal year, by 3 percent.’’; and 

25 (2) in subsection (f)— 

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1 (A) in paragraph (1)— 

2 (i) by redesignating subparagraphs 

3 (E), (F), and (G) as subparagraphs (F), 

4 (G), and (H), respectively; and 

5 (ii) by inserting after subparagraph 

6 (D) the following: 

7 ‘‘(E) ONGOING COMMISSIONING.—The term 

8 ‘ongoing commissioning’ means an ongoing proc9 ess of commissioning using monitored data, the 

10 primary goal of which is to ensure continuous 

11 optimum performance of a facility, in accord12 ance with design or operating needs, over the 

13 useful life of the facility, while meeting facility 

14 occupancy requirements.’’; 

15 (B) in paragraph (2), by adding at the end 

16 the following: 

17 ‘‘(C) ENERGY MANAGEMENT SYSTEM.—An 

18 energy manager designated under subparagraph 

19 (A) shall consider use of a system to manage en20 ergy use at the facility and certification of the 

21 facility in accordance with the International Or22 ganization for Standardization standard num23 bered 50001 and entitled ‘Energy Management 

24 Systems’.’’; 

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1 (C) by striking paragraphs (3) and (4) and 

2 inserting the following: 

3 ‘‘(3) ENERGY AND WATER EVALUATIONS AND

4 COMMISSIONING.— 

5 ‘‘(A) EVALUATIONS.—Except as provided in 

6 subparagraph (B), effective beginning on the 

7 date that is 180 days after the date of enactment 

8 of the North American Energy Security and In9 frastructure Act of 2015, and annually there10 after, each energy manager shall complete, for 

11 each calendar year, a comprehensive energy and 

12 water evaluation and recommissioning or 

13 retrocommissioning for approximately 25 percent 

14 of the facilities of that energy manager’s agency 

15 that meet the criteria under paragraph (2)(B) in 

16 a manner that ensures that an evaluation of 

17 each facility is completed at least once every 4 

18 years. 

19 ‘‘(B) EXCEPTIONS.—An evaluation and re20 commissioning or recommissioning shall not be 

21 required under subparagraph (A) with respect to 

22 a facility that— 

23 ‘‘(i) has had a comprehensive energy 

24 and water evaluation during the 8-year pe25 riod preceding the date of the evaluation; 

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1 ‘‘(ii)(I) has been commissioned, re2 commissioned, or retrocommissioned during 

3 the 10-year period preceding the date of the 

4 evaluation; or 

5 ‘‘(II) is under ongoing commissioning, 

6 recommissioning, or retrocommissioning; 

7 ‘‘(iii) has not had a major change in 

8 function or use since the previous evalua9 tion and commissioning, recommissioning, 

10 or retrocommissioning; 

11 ‘‘(iv) has been benchmarked with pub12 lic disclosure under paragraph (8) within 

13 the year preceding the evaluation; and 

14 ‘‘(v)(I) based on the benchmarking, has 

15 achieved at a facility level the most recent 

16 cumulative energy savings target under sub17 section (a) compared to the earlier of— 

18 ‘‘(aa) the date of the most recent 

19 evaluation; or 

20 ‘‘(bb) the date— 

21 ‘‘(AA) of the most recent 

22 commissioning, recommissioning, 

23 or retrocommissioning; or 

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1 ‘‘(BB) on which ongoing 

2 commissioning, recommissioning, 

3 or retrocommissioning began; or 

4 ‘‘(II) has a long-term contract in place 

5 guaranteeing energy savings at least as 

6 great as the energy savings target under 

7 subclause (I). 

8 ‘‘(4) IMPLEMENTATION OF IDENTIFIED ENERGY

9 AND WATER EFFICIENCY MEASURES.— 

10 ‘‘(A) IN GENERAL.—Not later than 2 years 

11 after the date of completion of each evaluation 

12 under paragraph (3), each energy manager 

13 may— 

14 ‘‘(i) implement any energy- or water15 saving measure that the Federal agency 

16 identified in the evaluation conducted under 

17 paragraph (3) that is life-cycle cost effective; 

18 and 

19 ‘‘(ii) bundle individual measures of 

20 varying paybacks together into combined 

21 projects. 

22 ‘‘(B) MEASURES NOT IMPLEMENTED.—Each 

23 energy manager, as part of the certification sys24 tem under paragraph (7) and using guidelines 

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1 planation regarding any life-cycle cost-effective 

2 measures described in subparagraph (A)(i) that 

3 have not been implemented.’’; and 

4 (D) in paragraph (7)(C), by adding at the 

5 end the following: 

6 ‘‘(iii) SUMMARY REPORT.—The Sec7 retary shall make publicly available a re8 port that summarizes the information 

9 tracked under subparagraph (B)(i) by each 

10 agency and, as applicable, by each type of 

11 measure.’’. 

12 SEC. 4116. FEDERAL BUILDING ENERGY EFFICIENCY PER13 FORMANCE STANDARDS; CERTIFICATION SYS14 TEM AND LEVEL FOR FEDERAL BUILDINGS. 

15 (a) DEFINITIONS.—Section 303 of the Energy Con16 servation and Production Act (42 U.S.C. 6832) is amend17 ed— 

18 (1) in paragraph (6), by striking ‘‘to be con19 structed’’ and inserting ‘‘constructed or altered’’; and 

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

21 ‘‘(17) MAJOR RENOVATION.—The term ‘major 

22 renovation’ means a modification of building energy 

23 systems sufficiently extensive that the whole building 

24 can meet energy standards for new buildings, based 

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1 on criteria to be established by the Secretary through 

2 notice and comment rulemaking.’’. 

3 (b) FEDERAL BUILDING EFFICIENCY STANDARDS.— 

4 Section 305 of the Energy Conservation and Production Act 

5 (42 U.S.C. 6834) is amended— 

6 (1) in subsection (a)(3)— 

7 (A) by striking ‘‘(3)(A) Not later than’’ and 

8 all that follows through the end of subparagraph 

9 (B) and inserting the following: 

10 ‘‘(3) REVISED FEDERAL BUILDING ENERGY EFFI11 CIENCY PERFORMANCE STANDARDS; CERTIFICATION

12 FOR GREEN BUILDINGS.— 

13 ‘‘(A) REVISED FEDERAL BUILDING ENERGY

14 EFFICIENCY PERFORMANCE STANDARDS.— 

15 ‘‘(i) IN GENERAL.—Not later than 1 

16 year after the date of enactment of the 

17 North American Energy Security and In18 frastructure Act of 2015, the Secretary shall 

19 establish, by rule, revised Federal building 

20 energy efficiency performance standards 

21 that require that— 

22 ‘‘(I) new Federal buildings and 

23 alterations and additions to existing 

24 Federal buildings— 

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1 ‘‘(aa) meet or exceed the most 

2 recent revision of the IECC (in 

3 the case of residential buildings) 

4 or ASHRAE Standard 90.1 (in 

5 the case of commercial buildings) 

6 as of the date of enactment of the 

7 North American Energy Security 

8 and Infrastructure Act of 2015; 

9 and 

10 ‘‘(bb) meet or exceed the en11 ergy provisions of State and local 

12 building codes applicable to the 

13 building, if the codes are more 

14 stringent than the IECC or 

15 ASHRAE Standard 90.1, as ap16 plicable; 

17 ‘‘(II) unless demonstrated not to 

18 be life-cycle cost effective for new Fed19 eral buildings and Federal buildings 

20 with major renovations— 

21 ‘‘(aa) the buildings be de22 signed to achieve energy consump23 tion levels that are at least 30 

24 percent below the levels established 

25 in the version of the ASHRAE 

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1 Standard or the IECC, as appro2 priate, that is applied under sub3 clause (I)(aa), including updates 

4 under subparagraph (B); and 

5 ‘‘(bb) sustainable design 

6 principles are applied to the loca7 tion, siting, design, and construc8 tion of all new Federal buildings 

9 and replacement Federal build10 ings; 

11 ‘‘(III) if water is used to achieve 

12 energy efficiency, water conservation 

13 technologies shall be applied to the ex14 tent that the technologies are life-cycle 

15 cost effective; and 

16 ‘‘(IV) if life-cycle cost effective, as 

17 compared to other reasonably available 

18 technologies, not less than 30 percent of 

19 the hot water demand for each new 

20 Federal building or Federal building 

21 undergoing a major renovation be met 

22 through the installation and use of 

23 solar hot water heaters. 

24 ‘‘(ii) LIMITATION.—Clause (i)(I) shall 

25 not apply to unaltered portions of existing 

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1 Federal buildings and systems that have 

2 been added to or altered. 

3 ‘‘(B) UPDATES.—Not later than 1 year 

4 after the date of approval of each subsequent re5 vision of ASHRAE Standard 90.1 or the IECC, 

6 as appropriate, the Secretary shall determine 

7 whether the revised standards established under 

8 subparagraph (A) should be updated to reflect 

9 the revisions, based on the energy savings and 

10 life-cycle cost effectiveness of the revisions.’’; 

11 (B) in subparagraph (C), by striking ‘‘(C) 

12 In the budget request’’ and inserting the fol13 lowing: 

14 ‘‘(C) BUDGET REQUEST.—In the budget re15 quest’’; and 

16 (C) in subparagraph (D)— 

17 (i) by striking ‘‘(D) Not later than’’ 

18 and all that follows through the end of the 

19 first sentence of clause (i)(III) and inserting 

20 the following: 

21 ‘‘(D) CERTIFICATION FOR GREEN BUILD22 INGS.— 

23 ‘‘(i) IN GENERAL.—’’; 

24 (ii) by striking clause (ii); 

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1 (iii) in clause (iii), by striking ‘‘(iii) 

2 In identifying’’ and inserting the following: 

3 ‘‘(ii) CONSIDERATIONS.—In identi4 fying’’; 

5 (iv) in clause (iv)— 

6 (I) by striking ‘‘(iv) At least 

7 once’’ and inserting the following: 

8 ‘‘(iii) STUDY.—At least once’’; and 

9 (II) by striking ‘‘clause (iii)’’ and 

10 inserting ‘‘clause (ii)’’; 

11 (v) in clause (v)— 

12 (I) by striking ‘‘(v) The Secretary 

13 may’’ and inserting the following: 

14 ‘‘(iv) INTERNAL CERTIFICATION PROC15 ESSES.—The Secretary may’’; and 

16 (II) by striking ‘‘clause (i)(III)’’ 

17 each place it appears and inserting 

18 ‘‘clause (i)’’; 

19 (vi) in clause (vi)— 

20 (I) by striking ‘‘(vi) With respect’’ 

21 and inserting the following: 

22 ‘‘(v) PRIVATIZED MILITARY HOUS23 ING.—With respect’’; and 

24 (II) by striking ‘‘develop alter25 native criteria to those established by 

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1 subclauses (I) and (III) of clause (i) 

2 that achieve an equivalent result in 

3 terms of energy savings, sustainable de4 sign, and’’ and inserting ‘‘develop al5 ternative certification systems and lev6 els than the systems and levels identi7 fied under clause (i) that achieve an 

8 equivalent result in terms of’’; and 

9 (vii) in clause (vii), by striking ‘‘(vii) 

10 In addition to’’ and inserting the following: 

11 ‘‘(vi) WATER CONSERVATION TECH12 NOLOGIES.—In addition to’’; and 

13 (2) by striking subsections (c) and (d) and in14 serting the following: 

15 ‘‘(c) PERIODIC REVIEW.—The Secretary shall— 

16 ‘‘(1) every 5 years, review the Federal building 

17 energy standards established under this section; and 

18 ‘‘(2) on completion of a review under paragraph 

19 (1), if the Secretary determines that significant en20 ergy savings would result, upgrade the standards to 

21 include all new energy efficiency and renewable en22 ergy measures that are technologically feasible and 

23 economically justified.’’. 

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1 SEC. 4117. OPERATION OF BATTERY RECHARGING STA2 TIONS IN PARKING AREAS USED BY FEDERAL 

3 EMPLOYEES. 

4 (a) AUTHORIZATION.— 

5 (1) IN GENERAL.—The head of any office of the 

6 Federal Government which owns or operates a park7 ing area for the use of its employees (either directly 

8 or indirectly through a contractor) may install, con9 struct, operate, and maintain on a reimbursable basis 

10 a battery recharging station in such area for the use 

11 of privately owned vehicles of employees of the office 

12 and others who are authorized to park in such area. 

13 (2) USE OF VENDORS.—The head of an office 

14 may carry out paragraph (1) through a contract with 

15 a vendor, under such terms and conditions (including 

16 terms relating to the allocation between the office and 

17 the vendor of the costs of carrying out the contract) 

18 as the head of the office and the vendor may agree to. 

19 (b) IMPOSITION OF FEES TO COVER COSTS.— 

20 (1) FEES.—The head of an office of the Federal 

21 Government which operates and maintains a battery 

22 recharging station under this section shall charge fees 

23 to the individuals who use the station in such amount 

24 as is necessary to ensure that office recovers all of the 

25 costs it incurs in installing, constructing, operating, 

26 and maintaining the station. 

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1 (2) DEPOSIT AND AVAILABILITY OF FEES.—Any 

2 fees collected by the head of an office under this sub3 section shall be— 

4 (A) deposited monthly in the Treasury to 

5 the credit of the appropriations account for sala6 ries and expenses of the office; and 

7 (B) available for obligation without further 

8 appropriation during— 

9 (i) the fiscal year collected; and 

10 (ii) the fiscal year following the fiscal 

11 year collected. 

12 (c) NO EFFECT ON EXISTING PROGRAMS FOR HOUSE

13 AND SENATE.—Nothing in this section may be construed 

14 to affect the installation, construction, operation, or main15 tenance of battery recharging stations by the Architect of 

16 the Capitol— 

17 (1) under Public Law 112–170 (2 U.S.C. 2171), 

18 relating to employees of the House of Representatives 

19 and individuals authorized to park in any parking 

20 area under the jurisdiction of the House of Represent21 atives on the Capitol Grounds; or 

22 (2) under Public Law 112–167 (2 U.S.C. 2170), 

23 relating to employees of the Senate and individuals 

24 authorized to park in any parking area under the ju25 risdiction of the Senate on the Capitol Grounds. 

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1 (d) EFFECTIVE DATE.—This section shall apply with 

2 respect to fiscal year 2016 and each succeeding fiscal year. 

3 CHAPTER 2—ENERGY EFFICIENT 

4 TECHNOLOGY AND MANUFACTURING 

5 SEC. 4121. INCLUSION OF SMART GRID CAPABILITY ON EN6 ERGY GUIDE LABELS. 

7 Section 324(a)(2) of the Energy Policy and Conserva8 tion Act (42 U.S.C. 6294(a)(2)) is amended by adding the 

9 following at the end: 

10 ‘‘(J) SMART GRID CAPABILITY ON ENERGY

11 GUIDE LABELS.— 

12 ‘‘(i) RULE.—Not later than 1 year 

13 after the date of enactment of this subpara14 graph, the Commission shall initiate a rule15 making to consider making a special note 

16 in a prominent manner on any Energy 

17 Guide label for any product that includes 

18 Smart Grid capability that— 

19 ‘‘(I) Smart Grid capability is a 

20 feature of that product; 

21 ‘‘(II) the use and value of that 

22 feature depend on the Smart Grid ca23 pability of the utility system in which 

24 the product is installed and the active 

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1 utilization of that feature by the cus2 tomer; and 

3 ‘‘(III) on a utility system with 

4 Smart Grid capability, the use of the 

5 product’s Smart Grid capability could 

6 reduce the customer’s cost of the prod7 uct’s annual operation as a result of 

8 the incremental energy and electricity 

9 cost savings that would result from the 

10 customer taking full advantage of such 

11 Smart Grid capability. 

12 ‘‘(ii) DEADLINE.—Not later than 3 

13 years after the date of enactment of this 

14 subparagraph, the Commission shall com15 plete the rulemaking initiated under clause 

16 (i).’’. 

17 SEC. 4122. VOLUNTARY VERIFICATION PROGRAMS FOR AIR 

18 CONDITIONING, FURNACE, BOILER, HEAT 

19 PUMP, AND WATER HEATER PRODUCTS. 

20 Section 326(b) of the Energy Policy and Conservation 

21 Act (42 U.S.C. 6296(b)) is amended by adding at the end 

22 the following: 

23 ‘‘(6) VOLUNTARY VERIFICATION PROGRAMS FOR

24 AIR CONDITIONING, FURNACE, BOILER, HEAT PUMP, 

25 AND WATER HEATER PRODUCTS.— 

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1 ‘‘(A) RELIANCE ON VOLUNTARY PRO2 GRAMS.—For the purpose of verifying compli3 ance with energy conservation standards estab4 lished under sections 325 and 342 for covered 

5 products described in paragraphs (3), (4), (5), 

6 (9), and (11) of section 322(a) and covered 

7 equipment described in subparagraphs (B), (C), 

8 (D), (F), (I), (J), and (K) of section 340(1), the 

9 Secretary shall rely on testing conducted by rec10 ognized voluntary verification programs that are 

11 recognized by the Secretary in accordance with 

12 subparagraph (B). 

13 ‘‘(B) RECOGNITION OF VOLUNTARY

14 VERIFICATION PROGRAMS.— 

15 ‘‘(i) IN GENERAL.—Not later than 180 

16 days after the date of enactment of this 

17 paragraph, the Secretary shall initiate a 

18 negotiated rulemaking in accordance with 

19 subchapter III of chapter 5 of title 5, 

20 United States Code (commonly known as 

21 the ‘Negotiated Rulemaking Act of 1990’) to 

22 develop criteria that have consensus support 

23 for achieving recognition by the Secretary 

24 as an approved voluntary verification pro25 gram. Any subsequent amendment to such 

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1 criteria may be made only pursuant to a 

2 subsequent negotiated rulemaking in accord3 ance with subchapter III of chapter 5 of 

4 title 5, United States Code. 

5 ‘‘(ii) MINIMUM REQUIREMENTS.—The 

6 criteria developed under clause (i) shall, at 

7 a minimum, ensure that a voluntary 

8 verification program— 

9 ‘‘(I) is nationally recognized; 

10 ‘‘(II) is operated by a third party 

11 and not directly operated by a pro12 gram participant; 

13 ‘‘(III) satisfies any applicable ele14 ments of— 

15 ‘‘(aa) International Organi16 zation for Standardization stand17 ard numbered 17025; and 

18 ‘‘(bb) any other relevant 

19 International Organization for 

20 Standardization standards identi21 fied and agreed to through the ne22 gotiated rulemaking under clause 

23 (i); 

24 ‘‘(IV) at least annually tests inde25 pendently obtained products following 

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1 the test procedures established under 

2 this title to verify the certified rating 

3 of a representative sample of products 

4 and equipment within the scope of the 

5 program; 

6 ‘‘(V) maintains a publicly avail7 able list of all ratings of products sub8 ject to verification; 

9 ‘‘(VI) requires the changing of the 

10 performance rating or removal of the 

11 product or equipment from the pro12 gram if testing determines that the 

13 performance rating does not meet the 

14 levels the manufacturer has certified to 

15 the Secretary; 

16 ‘‘(VII) requires new program par17 ticipants to substantiate ratings 

18 through test data generated in accord19 ance with Department of Energy regu20 lations; 

21 ‘‘(VIII) allows for challenge test22 ing of products and equipment within 

23 the scope of the program; 

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1 ing of all covered products and equip2 ment within the scope of the program 

3 for the covered product or equipment; 

4 ‘‘(X) provides to the Secretary— 

5 ‘‘(aa) an annual report of all 

6 test results, the contents of which 

7 shall be determined through the 

8 negotiated rulemaking process 

9 under clause (i); and 

10 ‘‘(bb) test reports, on the re11 quest of the Secretary, that note 

12 any instructions specified by the 

13 manufacturer or the representa14 tive of the manufacturer for the 

15 purpose of conducting the 

16 verification testing, to be exempt17 ed from disclosure under section 

18 552(b)(4) of title 5, United States 

19 Code; and 

20 ‘‘(XI) satisfies any additional re21 quirements or standards that the Sec22 retary shall establish consistent with 

23 this subparagraph. 

24 ‘‘(iii) CESSATION OF RECOGNITION.— 

25 The Secretary may only cease recognition of 

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1 a voluntary verification program as an ap2 proved program described in subparagraph 

3 (A) upon a finding that the program is not 

4 meeting its obligations for compliance 

5 through program review criteria developed 

6 during the negotiated rulemaking conducted 

7 under subparagraph (B). 

8 ‘‘(C) ADMINISTRATION.— 

9 ‘‘(i) IN GENERAL.—The Secretary shall 

10 not require— 

11 ‘‘(I) manufacturers to participate 

12 in a recognized voluntary verification 

13 program described in subparagraph 

14 (A); or 

15 ‘‘(II) participating manufacturers 

16 to provide information that has al17 ready been provided to the Secretary. 

18 ‘‘(ii) LIST OF COVERED PRODUCTS.— 

19 The Secretary may maintain a publicly 

20 available list of covered products and equip21 ment that distinguishes between products 

22 that are and are not covered products and 

23 equipment verified through a recognized vol24 untary verification program described in 

25 subparagraph (A). 

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1 ‘‘(iii) PERIODIC VERIFICATION TEST2 ING.—The Secretary— 

3 ‘‘(I) shall not subject products or 

4 equipment that have been verification 

5 tested under a recognized voluntary 

6 verification program described in sub7 paragraph (A) to periodic verification 

8 testing to verify the accuracy of the 

9 certified performance rating of the 

10 products or equipment; but 

11 ‘‘(II) may require testing of prod12 ucts or equipment described in sub13 clause (I)— 

14 ‘‘(aa) if the testing is nec15 essary— 

16 ‘‘(AA) to assess the over17 all performance of a vol18 untary verification program; 

19 ‘‘(BB) to address spe20 cific performance issues; 

21 ‘‘(CC) for use in updat22 ing test procedures and 

23 standards; or 

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1 ‘‘(DD) for other pur2 poses consistent with this 

3 title; or 

4 ‘‘(bb) if such testing is agreed 

5 to during the negotiated rule6 making conducted under subpara7 graph (B). 

8 ‘‘(D) EFFECT ON OTHER AUTHORITY.— 

9 Nothing in this paragraph limits the authority 

10 of the Secretary to enforce compliance with any 

11 law.’’. 

12 SEC. 4123. FACILITATING CONSENSUS FURNACE STAND13 ARDS. 

14 (a) CONGRESSIONAL FINDINGS AND DECLARATION OF

15 PURPOSE.— 

16 (1) FINDINGS.—Congress finds that— 

17 (A) acting pursuant to the requirements of 

18 section 325 of the Energy Policy and Conserva19 tion Act (42 U.S.C. 6295), the Secretary of En20 ergy is considering amending the energy con21 servation standards applicable to residential 

22 nonweatherized gas furnaces and mobile home 

23 gas furnaces; 

24 (B) numerous stakeholders, representing 

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1 idential nonweatherized gas furnaces and mobile 

2 home furnaces, natural gas utilities, home build3 ers, multifamily property owners, and energy ef4 ficiency, environmental, and consumer advocates 

5 have begun negotiations in an attempt to agree 

6 on a consensus recommendation to the Secretary 

7 on levels for such standards that will meet the 

8 statutory criteria; and 

9 (C) the stakeholders believe these negotia10 tions are likely to result in a consensus rec11 ommendation, but several of the stakeholders do 

12 not support suspending the current rulemaking. 

13 (2) PURPOSE.—It is the purpose of this section 

14 to provide the stakeholders described in paragraph (1) 

15 with an opportunity to continue negotiations for a 

16 limited time period to facilitate the proposal for 

17 adoption of standards that enjoy consensus support, 

18 while not delaying the current rulemaking except to 

19 the extent necessary to provide such opportunity. 

20 (b) OPPORTUNITY FOR A NEGOTIATED FURNACE

21 STANDARD.—Section 325(f)(4) of the Energy Policy and 

22 Conservation Act (42 U.S.C. 6295(f)(4)) is amended by 

23 adding after subparagraph (D) the following: 

24 ‘‘(E)(i) Unless the Secretary has published such a no25 tice prior to the date of enactment of this Act, the Secretary 

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1 shall publish, not later than October 31, 2015, a supple2 mental notice of proposed rulemaking or a notice of data 

3 availability updating the proposed rule entitled ‘Energy 

4 Conservation Program for Consumer Products: Energy 

5 Conservation Standards for Residential Furnaces’ and pub6 lished in the Federal Register on March 12, 2015 (80 Fed. 

7 Reg. 13119), to provide notice and an opportunity for com8 ment on— 

9 ‘‘(I) dividing nonweatherized gas furnaces into 

10 two or more product classes with separate energy con11 servation standards based on capacity; and 

12 ‘‘(II) any other matters the Secretary determines 

13 appropriate. 

14 ‘‘(ii) On receipt of a statement that is submitted on 

15 or before January 1, 2016, jointly by interested persons that 

16 are fairly representative of relevant points of view, that con17 tains recommended standards for nonweatherized gas fur18 naces and mobile home gas furnaces that are consistent with 

19 the requirements of this part (except that the date on which 

20 such standards will apply may be earlier or later than the 

21 date required under this part), the Secretary shall evaluate 

22 the standards proposed in the joint statement for consist23 ency with the requirements of subsection (o), and shall pub24 lish notice of the potential adoption of the standards pro25 posed in the joint statement, modified as necessary to ensure 

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1 consistency with subsection (o). The Secretary shall solicit 

2 public comment for a period of at least 30 days with respect 

3 to such notice. 

4 ‘‘(iii) Not later than July 31, 2016, but not before July 

5 1, 2016, the Secretary shall publish a final rule containing 

6 a determination of whether the standards for nonweather7 ized gas furnaces and mobile home gas furnaces should be 

8 amended. Such rule shall contain any such amendments to 

9 the standards.’’. 

10 SEC. 4124. FUTURE OF INDUSTRY PROGRAM. 

11 (a) IN GENERAL.—Section 452 of the Energy Inde12 pendence and Security Act of 2007 (42 U.S.C. 17111) is 

13 amended by striking the section heading and inserting the 

14 following: ‘‘FUTURE OF INDUSTRY PROGRAM’’. 

15 (b) DEFINITION OF ENERGY SERVICE PROVIDER.— 

16 Section 452(a) of the Energy Independence and Security 

17 Act of 2007 (42 U.S.C. 17111(a)) is amended— 

18 (1) by redesignating paragraphs (3) through (5) 

19 as paragraphs (4) through (6), respectively; and 

20 (2) by inserting after paragraph (2): 

21 ‘‘(3) ENERGY SERVICE PROVIDER.—The term 

22 ‘energy service provider’ means any business pro23 viding technology or services to improve the energy ef24 ficiency, water efficiency, power factor, or load man25 agement of a manufacturing site or other industrial 

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1 process in an energy-intensive industry, or any util2 ity operating under a utility energy service project.’’. 

3 (c) INDUSTRIAL RESEARCH AND ASSESSMENT CEN4 TERS.—Section 452(e) of the Energy Independence and Se5 curity Act of 2007 (42 U.S.C. 17111(e)) is amended— 

6 (1) by redesignating paragraphs (1) through (5) 

7 as subparagraphs (A) through (E), respectively, and 

8 indenting appropriately; 

9 (2) by striking ‘‘The Secretary’’ and inserting 

10 the following: 

11 ‘‘(1) IN GENERAL.—The Secretary’’; 

12 (3) in subparagraph (A) (as redesignated by 

13 paragraph (1)), by inserting before the semicolon at 

14 the end the following: ‘‘, including assessments of sus15 tainable manufacturing goals and the implementation 

16 of information technology advancements for supply 

17 chain analysis, logistics, system monitoring, indus18 trial and manufacturing processes, and other pur19 poses’’; and 

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

21 ‘‘(2) COORDINATION.—To increase the value and 

22 capabilities of the industrial research and assessment 

23 centers, the centers shall— 

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1 ‘‘(A) coordinate with Manufacturing Exten2 sion Partnership Centers of the National Insti3 tute of Standards and Technology; 

4 ‘‘(B) coordinate with the Building Tech5 nologies Office of the Department of Energy to 

6 provide building assessment services to manufac7 turers; 

8 ‘‘(C) increase partnerships with the Na9 tional Laboratories of the Department of Energy 

10 to leverage the expertise and technologies of the 

11 National Laboratories for national industrial 

12 and manufacturing needs; and 

13 ‘‘(D) increase partnerships with energy 

14 service providers and technology providers to le15 verage private sector expertise and accelerate de16 ployment of new and existing technologies and 

17 processes for energy efficiency, power factor, and 

18 load management. 

19 ‘‘(3) OUTREACH.—The Secretary shall provide 

20 funding for— 

21 ‘‘(A) outreach activities by the industrial 

22 research and assessment centers to inform small23 and medium-sized manufacturers of the informa24 tion, technologies, and services available; and 

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1 ‘‘(B) coordination activities by each indus2 trial research and assessment center to leverage 

3 efforts with— 

4 ‘‘(i) Federal and State efforts; 

5 ‘‘(ii) the efforts of utilities and energy 

6 service providers; 

7 ‘‘(iii) the efforts of regional energy effi8 ciency organizations; and 

9 ‘‘(iv) the efforts of other industrial re10 search and assessment centers. 

11 ‘‘(4) SMALL BUSINESS LOANS.—The Adminis12 trator of the Small Business Administration shall, to 

13 the maximum extent practicable, expedite consider14 ation of applications from eligible small business con15 cerns for loans under the Small Business Act (15 

16 U.S.C. 631 et seq.) to implement recommendations of 

17 industrial research and assessment centers established 

18 under paragraph (1).’’. 

19 (d) CONFORMING AMENDMENT.—The item relating to 

20 section 452 in the table of contents for the Energy Independ21 ence and Security Act of 2007 is amended to read as fol22 lows: 

‘‘Sec. 452. Future of Industry program.’’. 

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1 SEC. 4125. NO WARRANTY FOR CERTAIN CERTIFIED ENERGY 

2 STAR PRODUCTS. 

3 Section 324A of the Energy Policy and Conservation 

4 Act (42 U.S.C. 6294a) is amended by adding at the end 

5 the following new subsection: 

6 ‘‘(e) NO WARRANTY.— 

7 ‘‘(1) IN GENERAL.—Any disclosure relating to 

8 participation of a product in the Energy Star pro9 gram shall not create an express or implied warranty 

10 or give rise to any private claims or rights of action 

11 under State or Federal law relating to the disquali12 fication of that product from Energy Star if— 

13 ‘‘(A) the product has been certified by a cer14 tification body recognized by the Energy Star 

15 program; 

16 ‘‘(B) the Administrator has approved cor17 rective measures, including a determination of 

18 whether or not consumer compensation is appro19 priate; and 

20 ‘‘(C) the responsible party has fully com21 plied with all approved corrective measures. 

22 ‘‘(2) CONSTRUAL.—Nothing in this subsection 

23 shall be construed to require the Administrator to 

24 modify any procedure or take any other action.’’. 

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1 SEC. 4126. CLARIFICATION TO EFFECTIVE DATE FOR RE2 GIONAL STANDARDS. 

3 Section 325(o)(6)(E)(ii) of the Energy Policy and 

4 Conservation Act (42 U.S.C. 6295(o)(6)(E)(ii)) is amended 

5 by striking ‘‘installed’’ and inserting ‘‘manufactured or im6 ported into the United States’’. 

7 SEC. 4127. INTERNET OF THINGS REPORT. 

8 The Secretary of Energy shall, not later than 18 

9 months after the date of enactment of this Act, report to 

10 the Committee on Energy and Commerce of the House of 

11 Representatives and the Committee on Energy and Natural 

12 Resources of the Senate on the efforts made to take advan13 tage of, and promote, the utilization of advanced tech14 nologies such as Internet of Things end-to-end platform so15 lutions to provide real-time actionable analytics and enable 

16 predictive maintenance and asset management to improve 

17 energy efficiency wherever feasible. In doing so, the Sec18 retary shall look to encourage and utilize Internet of Things 

19 energy management solutions that have security tightly in20 tegrated into the hardware and software from the outset. 

21 The Secretary shall also encourage the use of Internet of 

22 Things solutions that enable seamless connectivity and that 

23 are interoperable, open standards-based, and built on a re24 peatable foundation for ease of scalability. 

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1 CHAPTER 3—ENERGY PERFORMANCE 

2 CONTRACTING 

3 SEC. 4131. USE OF ENERGY AND WATER EFFICIENCY MEAS4 URES IN FEDERAL BUILDINGS. 

5 (a) REPORTS.—Section 548(b) of the National Energy 

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

7 (1) in paragraph (3), by striking ‘‘and’’ at the 

8 end; 

9 (2) in paragraph (4), by striking the period at 

10 the end and inserting ‘‘; and’’; and 

11 (3) by adding at the end the following new para12 graph: 

13 ‘‘(5) the status of each agency’s energy savings 

14 performance contracts and utility energy service con15 tracts, the investment value of such contracts, the 

16 guaranteed energy savings for the previous year as 

17 compared to the actual energy savings for the pre18 vious year, the plan for entering into such contracts 

19 in the coming year, and information explaining why 

20 any previously submitted plans for such contracts 

21 were not implemented.’’. 

22 (b) FEDERAL ENERGY MANAGEMENT DEFINITIONS.— 

23 Section 551(4) of the National Energy Conservation Policy 

24 Act (42 U.S.C. 8259(4)) is amended by striking ‘‘or retrofit 

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1 activities’’ and inserting ‘‘retrofit activities, or energy con2 suming devices and required support structures’’. 

3 (c) AUTHORITY TO ENTER INTO CONTRACTS.—Section 

4 801(a)(2)(F) of the National Energy Conservation Policy 

5 Act (42 U.S.C. 8287(a)(2)(F)) is amended— 

6 (1) in clause (i), by striking ‘‘or’’ at the end; 

7 (2) in clause (ii), by striking the period at the 

8 end and inserting ‘‘; or’’; and 

9 (3) by adding at the end the following new 

10 clause: 

11 ‘‘(iii) limit the recognition of operation 

12 and maintenance savings associated with 

13 systems modernized or replaced with the 

14 implementation of energy conservation 

15 measures, water conservation measures, or 

16 any series of energy conservation measures 

17 and water conservation measures.’’. 

18 (d) MISCELLANEOUS AUTHORITY.—Section 801(a)(2) 

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

20 8287(a)) is amended by adding at the end the following: 

21 ‘‘(H) MISCELLANEOUS AUTHORITY.—Not22 withstanding any other provision of law, a Fed23 eral agency may sell or transfer energy savings 

24 and apply the proceeds of such sale or transfer 

25 to fund a contract under this title.’’. 

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1 (e) PAYMENT OF COSTS.—Section 802 of the National 

2 Energy Conservation Policy Act (42 U.S.C. 8287a) is 

3 amended by striking ‘‘(and related operation and mainte4 nance expenses)’’ and inserting ‘‘, including related oper5 ations and maintenance expenses’’. 

6 (f) ENERGY SAVINGS PERFORMANCE CONTRACTS

7 DEFINITIONS.—Section 804(2) of the National Energy Con8 servation Policy Act (42 U.S.C. 8287c(2)) is amended— 

9 (1) in subparagraph (A), by striking ‘‘federally 

10 owned building or buildings or other federally owned 

11 facilities’’ and inserting ‘‘Federal building (as defined 

12 in section 551 (42 U.S.C. 8259))’’ each place it ap13 pears; 

14 (2) in subparagraph (C), by striking ‘‘; and’’ 

15 and inserting a semicolon; 

16 (3) in subparagraph (D), by striking the period 

17 at the end and inserting a semicolon; and 

18 (4) by adding at the end the following new sub19 paragraphs: 

20 ‘‘(E) the use, sale, or transfer of energy in21 centives, rebates, or credits (including renewable 

22 energy credits) from Federal, State, or local gov23 ernments or utilities; and 

24 ‘‘(F) any revenue generated from a reduc25 tion in energy or water use, more efficient waste 

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1 recycling, or additional energy generated from 

2 more efficient equipment.’’. 

3 CHAPTER 4—SCHOOL BUILDINGS 

4 SEC. 4141. COORDINATION OF ENERGY RETROFITTING AS5 SISTANCE FOR SCHOOLS. 

6 Section 392 of the Energy Policy and Conservation Act 

7 (42 U.S.C. 6371a) is amended by adding at the end the 

8 following: 

9 ‘‘(e) COORDINATION OF ENERGY RETROFITTING AS10 SISTANCE FOR SCHOOLS.— 

11 ‘‘(1) DEFINITION OF SCHOOL.—Notwithstanding 

12 section 391(6), for the purposes of this subsection, the 

13 term ‘school’ means— 

14 ‘‘(A) an elementary school or secondary 

15 school (as defined in section 9101 of the Elemen16 tary and Secondary Education Act of 1965 (20 

17 U.S.C. 7801)); 

18 ‘‘(B) an institution of higher education (as 

19 defined in section 102(a) of the Higher Edu20 cation Act of 1965 (20 U.S.C. 1002(a))); 

21 ‘‘(C) a school of the defense dependents’ edu22 cation system under the Defense Dependents’ 

23 Education Act of 1978 (20 U.S.C. 921 et seq.) or 

24 established under section 2164 of title 10, United 

25 States Code; 

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1 ‘‘(D) a school operated by the Bureau of In2 dian Affairs; 

3 ‘‘(E) a tribally controlled school (as defined 

4 in section 5212 of the Tribally Controlled 

5 Schools Act of 1988 (25 U.S.C. 2511)); and 

6 ‘‘(F) a Tribal College or University (as de7 fined in section 316(b) of the Higher Education 

8 Act of 1965 (20 U.S.C. 1059c(b))). 

9 ‘‘(2) ESTABLISHMENT OF CLEARINGHOUSE.—The 

10 Secretary, acting through the Office of Energy Effi11 ciency and Renewable Energy, shall establish a clear12 inghouse to disseminate information regarding avail13 able Federal programs and financing mechanisms 

14 that may be used to help initiate, develop, and fi15 nance energy efficiency, distributed generation, and 

16 energy retrofitting projects for schools. 

17 ‘‘(3) REQUIREMENTS.—In carrying out para18 graph (2), the Secretary shall— 

19 ‘‘(A) consult with appropriate Federal 

20 agencies to develop a list of Federal programs 

21 and financing mechanisms that are, or may be, 

22 used for the purposes described in paragraph (2); 

23 and 

24 ‘‘(B) coordinate with appropriate Federal 

25 agencies to develop a collaborative education and 

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1 outreach effort to streamline communications 

2 and promote available Federal programs and fi3 nancing mechanisms described in subparagraph 

4 (A), which may include the development and 

5 maintenance of a single online resource that in6 cludes contact information for relevant technical 

7 assistance in the Office of Energy Efficiency and 

8 Renewable Energy that States, local education 

9 agencies, and schools may use to effectively access 

10 and use such Federal programs and financing 

11 mechanisms.’’. 

12 CHAPTER 5—BUILDING ENERGY CODES 

13 SEC. 4151. GREATER ENERGY EFFICIENCY IN BUILDING 

14 CODES. 

15 (a) DEFINITIONS.—Section 303 of the Energy Con16 servation and Production Act (42 U.S.C. 6832), as amended 

17 by section 4116, is further amended— 

18 (1) by striking paragraph (14) and inserting the 

19 following: 

20 ‘‘(14) MODEL BUILDING ENERGY CODE.—The 

21 term ‘model building energy code’ means a voluntary 

22 building energy code or standard developed and up23 dated through a consensus process among interested 

24 persons, such as the IECC or ASHRAE Standard 

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1 tions regarding which the Secretary has issued a de2 termination that buildings subject to it would achieve 

3 greater energy efficiency than under a previously de4 veloped code.’’; and 

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

6 ‘‘(18) ASHRAE STANDARD 90.1.—The term 

7 ‘ASHRAE Standard 90.1’ means the American Soci8 ety of Heating, Refrigerating and Air-Conditioning 

9 Engineers ANSI/ASHRAE/IES Standard 90/1 En10 ergy Standard for Buildings Except Low-Rise Resi11 dential Buildings. 

12 ‘‘(19) COST-EFFECTIVE.—The term ‘cost-effective’ 

13 means having a simple payback of 10 years or less. 

14 ‘‘(20) IECC.—The term ‘IECC’ means the Inter15 national Energy Conservation Code as published by 

16 the International Code Council. 

17 ‘‘(21) INDIAN TRIBE.—The term ‘Indian tribe’ 

18 has the meaning given the term in section 4 of the 

19 Native American Housing Assistance and Self-Deter20 mination Act of 1996 (25 U.S.C. 4103). 

21 ‘‘(22) SIMPLE PAYBACK.—The term ‘simple pay22 back’ means the time in years that is required for en23 ergy savings to exceed the incremental first cost of a 

24 new requirement or code. 

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1 ‘‘(23) TECHNICALLY FEASIBLE.—The term ‘tech2 nically feasible’ means capable of being achieved, 

3 based on widely available appliances, equipment, 

4 technologies, materials, and construction practices.’’. 

5 (b) STATE BUILDING ENERGY EFFICIENCY CODES.— 

6 Section 304 of the Energy Conservation and Production Act 

7 (42 U.S.C. 6833) is amended to read as follows: 

8 ‘‘SEC. 304. UPDATING STATE BUILDING ENERGY EFFI9 CIENCY CODES. 

10 ‘‘(a) IN GENERAL.—The Secretary shall provide tech11 nical assistance, as described in subsection (e), for the pur12 poses of— 

13 ‘‘(1) implementation of building energy codes by 

14 States, Indian tribes, and, as appropriate, by local 

15 governments, that are technically feasible and cost-ef16 fective; and 

17 ‘‘(2) supporting full compliance with the State, 

18 tribal, and local codes. 

19 ‘‘(b) STATE AND INDIAN TRIBE CERTIFICATION OF

20 BUILDING ENERGY CODE UPDATES.— 

21 ‘‘(1) REVIEW AND UPDATING OF CODES BY EACH

22 STATE AND INDIAN TRIBE.— 

23 ‘‘(A) IN GENERAL.—Not later than 3 years 

24 after the date on which a model building energy 

25 code is published, each State or Indian tribe 

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1 shall certify whether or not the State or Indian 

2 tribe, respectively, has reviewed and updated the 

3 energy provisions of the building code of the 

4 State or Indian tribe, respectively. 

5 ‘‘(B) DEMONSTRATION.—The certification 

6 shall include a statement of whether or not the 

7 energy savings for the code provisions that are in 

8 effect throughout the State or Indian tribal terri9 tory meet or exceed— 

10 ‘‘(i) the energy savings of the most re11 cently published model building energy 

12 code; or 

13 ‘‘(ii) the targets established under sec14 tion 307(b)(2). 

15 ‘‘(C) NO MODEL BUILDING ENERGY CODE

16 UPDATE.—If a model building energy code is not 

17 updated by a target date established under sec18 tion 307(b)(2)(D), each State or Indian tribe 

19 shall, not later than 3 years after the specified 

20 date, certify whether or not the State or Indian 

21 tribe, respectively, has reviewed and updated the 

22 energy provisions of the building code of the 

23 State or Indian tribe, respectively, to meet or ex24 ceed the target in section 307(b)(2). 

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1 ‘‘(2) VALIDATION BY SECRETARY.—Not later 

2 than 90 days after a State or Indian tribe certifi3 cation under paragraph (1), the Secretary shall— 

4 ‘‘(A) determine whether the code provisions 

5 of the State or Indian tribe, respectively, meet 

6 the criteria specified in paragraph (1); 

7 ‘‘(B) determine whether the certification 

8 submitted by the State or Indian tribe, respec9 tively, is complete; and 

10 ‘‘(C) if the requirements of subparagraph 

11 (B) are satisfied, validate the certification. 

12 ‘‘(3) LIMITATION.—Nothing in this section shall 

13 be interpreted to require a State or Indian tribe to 

14 adopt any building code or provision within a code. 

15 ‘‘(c) IMPROVEMENTS IN COMPLIANCE WITH BUILDING

16 ENERGY CODES.— 

17 ‘‘(1) REQUIREMENT.— 

18 ‘‘(A) IN GENERAL.—Not later than 3 years 

19 after the date of a certification under subsection 

20 (b), each State and Indian tribe shall certify 

21 whether or not the State or Indian tribe, respec22 tively, has— 

23 ‘‘(i) achieved full compliance under 

24 paragraph (3) with the applicable certified 

25 State or Indian tribe building energy code 

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1 or with the associated model building en2 ergy code; or 

3 ‘‘(ii) made significant progress under 

4 paragraph (4) toward achieving compliance 

5 with the applicable certified State or Indian 

6 tribe building energy code or with the asso7 ciated model building energy code. 

8 ‘‘(B) REPEAT CERTIFICATIONS.—If the 

9 State or Indian tribe certifies progress toward 

10 achieving compliance, the State or Indian tribe 

11 shall repeat the certification until the State or 

12 Indian tribe certifies that the State or Indian 

13 tribe has achieved full compliance. 

14 ‘‘(2) MEASUREMENT OF COMPLIANCE.—A certifi15 cation under paragraph (1) shall include documenta16 tion of the rate of compliance based on— 

17 ‘‘(A) inspections of a random sample of the 

18 buildings covered by the code in the preceding 

19 year; or 

20 ‘‘(B) an alternative method that yields an 

21 accurate measure of compliance. 

22 ‘‘(3) ACHIEVEMENT OF COMPLIANCE.—A State or 

23 Indian tribe shall be considered to achieve full com24 pliance under paragraph (1) if— 

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1 ‘‘(A) at least 90 percent of building space 

2 covered by the code in the preceding year sub3 stantially meets all the requirements of the ap4 plicable code specified in paragraph (1), or 

5 achieves equivalent or greater energy savings 

6 level; or 

7 ‘‘(B) the estimated excess energy use of 

8 buildings that did not meet the applicable code 

9 specified in paragraph (1) in the preceding year, 

10 compared to a baseline of comparable buildings 

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

12 of the estimated energy use of all buildings cov13 ered by this code during the preceding year. 

14 ‘‘(4) SIGNIFICANT PROGRESS TOWARD ACHIEVE15 MENT OF COMPLIANCE.—A State or Indian tribe shall 

16 be considered to have made significant progress to17 ward achieving compliance for purposes of paragraph 

18 (1) if the State or Indian tribe— 

19 ‘‘(A) has developed and is implementing a 

20 plan for achieving compliance during the 8-year 

21 period beginning on the date of enactment of this 

22 paragraph, including annual targets for compli23 ance and active training and enforcement pro24 grams; and 

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1 ‘‘(B) has met the most recent target under 

2 subparagraph (A). 

3 ‘‘(5) VALIDATION BY SECRETARY.—Not later 

4 than 90 days after a State or Indian tribe certifi5 cation under paragraph (1), the Secretary shall— 

6 ‘‘(A) determine whether the State or Indian 

7 tribe has demonstrated meeting the criteria of 

8 this subsection, including accurate measurement 

9 of compliance; 

10 ‘‘(B) determine whether the certification 

11 submitted by the State or Indian tribe is com12 plete; and 

13 ‘‘(C) if the requirements of subparagraph 

14 (B) are satisfied, validate the certification. 

15 ‘‘(6) LIMITATION.—Nothing in this section shall 

16 be interpreted to require a State or Indian tribe to 

17 adopt any building code or provision within a code. 

18 ‘‘(d) STATES OR INDIAN TRIBES THAT DO NOT

19 ACHIEVE COMPLIANCE.— 

20 ‘‘(1) REPORTING.—A State or Indian tribe that 

21 has not made a certification required under sub22 section (b) or (c) by the applicable deadline shall sub23 mit to the Secretary a report on the status of the 

24 State or Indian tribe with respect to meeting the re25 quirements and submitting the certification. 

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1 ‘‘(2) STATE SOVEREIGNTY.—Nothing in this sec2 tion shall be interpreted to require a State or Indian 

3 tribe to adopt any building code or provision within 

4 a code. 

5 ‘‘(3) LOCAL GOVERNMENT.—In any State or In6 dian tribe for which the Secretary has not validated 

7 a certification under subsection (b) or (c), a local gov8 ernment may be eligible for Federal support by meet9 ing the certification requirements of subsections (b) 

10 and (c). 

11 ‘‘(4) ANNUAL REPORTS BY SECRETARY.— 

12 ‘‘(A) IN GENERAL.—The Secretary shall an13 nually submit to Congress, and publish in the 

14 Federal Register, a report on— 

15 ‘‘(i) the status of model building energy 

16 codes; 

17 ‘‘(ii) the status of code adoption and 

18 compliance in the States and Indian tribes; 

19 ‘‘(iii) implementation of this section; 

20 and 

21 ‘‘(iv) improvements in energy savings 

22 over time as a result of the targets estab23 lished under section 307(b)(2). 

24 ‘‘(B) IMPACTS.—The report shall include es25 timates of impacts of past action under this secmstockstill on DSK4VPTVN1PROD with BILLS

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1 tion, and potential impacts of further action, 

2 on— 

3 ‘‘(i) upfront financial and construction 

4 costs, cost benefits and returns (using a re5 turn on investment analysis), and lifetime 

6 energy use for buildings; 

7 ‘‘(ii) resulting energy costs to individ8 uals and businesses; and 

9 ‘‘(iii) resulting overall annual building 

10 ownership and operating costs. 

11 ‘‘(e) TECHNICAL ASSISTANCE TO STATES AND INDIAN

12 TRIBES.— 

13 ‘‘(1) IN GENERAL.—The Secretary shall, upon re14 quest, provide technical assistance to States and In15 dian tribes to implement the goals and requirements 

16 of this section— 

17 ‘‘(A) to implement State residential and 

18 commercial building energy codes; and 

19 ‘‘(B) to document the rate of compliance 

20 with a building energy code. 

21 ‘‘(2) TECHNICAL ASSISTANCE.—The assistance 

22 shall include, as requested by the State or Indian 

23 tribe, technical assistance in— 

24 ‘‘(A) evaluating the energy savings of build25 ing energy codes; 

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1 ‘‘(B) assessing the economic considerations, 

2 referenced in section 307(b)(4), of implementing 

3 building energy codes; 

4 ‘‘(C) building energy analysis and design 

5 tools; 

6 ‘‘(D) energy simulation models; 

7 ‘‘(E) building demonstrations; 

8 ‘‘(F) developing the definitions of energy use 

9 intensity and building types for use in model 

10 building energy codes to evaluate the efficiency 

11 impacts of the model building energy codes; and 

12 ‘‘(G) complying with a performance-based 

13 pathway referenced in the model code. 

14 ‘‘(3) EXCLUSION.—For purposes of this section, 

15 ‘technical assistance’ shall not include actions that 

16 promote or discourage the adoption of a particular 

17 building energy code, code provision, or energy sav18 ings target to a State or Indian tribe. 

19 ‘‘(4) INFORMATION QUALITY AND TRANS20 PARENCY.—For purposes of this section, information 

21 provided by the Secretary, attendant to any technical 

22 assistance provided to a State or Indian tribe, is ‘in23 fluential information’ and shall satisfy the guidelines 

24 established by the Office of Management and Budget 

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1 and published at 67 Federal Register 8,452 (Feb. 22, 

2 2002). 

3 ‘‘(f) FEDERAL SUPPORT.— 

4 ‘‘(1) IN GENERAL.—The Secretary shall provide 

5 support to States and Indian tribes— 

6 ‘‘(A) to implement the reporting require7 ments of this section; and 

8 ‘‘(B) to implement residential and commer9 cial building energy codes, including increasing 

10 and verifying compliance with the codes and 

11 training of State, tribal, and local building code 

12 officials to implement and enforce the codes. 

13 ‘‘(2) EXCLUSION.—Support shall not be given to 

14 support adoption and implementation of model build15 ing energy codes for which the Secretary has made a 

16 determination under section 307(g)(1)(C) that the 

17 code is not cost-effective. 

18 ‘‘(3) TRAINING.—Support shall be offered to 

19 States to train State and local building code officials 

20 to implement and enforce codes described in para21 graph (1)(B). 

22 ‘‘(4) LOCAL GOVERNMENTS.—States may work 

23 under this subsection with local governments that im24 plement and enforce codes described in paragraph 

25 (1)(B). 

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1 ‘‘(g) VOLUNTARY PROGRAMS TO EXCEED MODEL

2 BUILDING ENERGY CODE.— 

3 ‘‘(1) IN GENERAL.—The Secretary shall provide 

4 technical assistance, as described in subsection (e), for 

5 the development of voluntary programs that exceed the 

6 model building energy codes for residential and com7 mercial buildings for use as— 

8 ‘‘(A) voluntary incentive programs adopted 

9 by local, tribal, or State governments; and 

10 ‘‘(B) nonbinding guidelines for energy-effi11 cient building design. 

12 ‘‘(2) TARGETS.—The voluntary programs de13 scribed in paragraph (1) shall be designed— 

14 ‘‘(A) to achieve substantial energy savings 

15 compared to the model building energy codes; 

16 and 

17 ‘‘(B) to meet targets under section 307(b), if 

18 available, up to 3 to 6 years in advance of the 

19 target years. 

20 ‘‘(h) STUDIES.— 

21 ‘‘(1) GAO STUDY.— 

22 ‘‘(A) IN GENERAL.—The Comptroller Gen23 eral of the United States shall conduct a study 

24 of the impacts of updating the national model 

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1 mercial buildings. In conducting the study, the 

2 Comptroller General shall consider and report, 

3 at a minimum— 

4 ‘‘(i) the actual energy consumption 

5 savings stemming from updated energy 

6 codes compared to the energy consumption 

7 savings predicted during code development; 

8 ‘‘(ii) the actual consumer cost savings 

9 stemming from updated energy codes com10 pared to predicted consumer cost savings; 

11 and 

12 ‘‘(iii) an accounting of expenditures of 

13 the Federal funds under each program au14 thorized by this title. 

15 ‘‘(B) REPORT TO CONGRESS.—Not later 

16 than 3 years after the date of enactment of the 

17 North American Energy Security and Infra18 structure Act of 2015, the Comptroller General of 

19 the United States shall submit a report to the 

20 Committee on Energy and Natural Resources of 

21 the Senate and the Committee on Energy and 

22 Commerce of the House of Representatives in23 cluding the study findings and conclusions. 

24 ‘‘(2) FEASIBILITY STUDY.—The Secretary, in 

25 consultation with building science experts from the 

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1 National Laboratories and institutions of higher edu2 cation, designers and builders of energy-efficient resi3 dential and commercial buildings, code officials, and 

4 other stakeholders, shall undertake a study of the fea5 sibility, impact, economics, and merit of— 

6 ‘‘(A) code improvements that would require 

7 that buildings be designed, sited, and constructed 

8 in a manner that makes the buildings more 

9 adaptable in the future to become zero-net-energy 

10 after initial construction, as advances are 

11 achieved in energy-saving technologies; 

12 ‘‘(B) code procedures to incorporate a ten13 year payback, not just first-year energy use, in 

14 trade-offs and performance calculations; and 

15 ‘‘(C) legislative options for increasing en16 ergy savings from building energy codes, includ17 ing additional incentives for effective State and 

18 local verification of compliance with and enforce19 ment of a code. 

20 ‘‘(3) ENERGY DATA IN MULTITENANT BUILD21 INGS.—The Secretary, in consultation with appro22 priate representatives of the utility, utility regulatory, 

23 building ownership, and other stakeholders, shall— 

24 ‘‘(A) undertake a study of best practices re25 garding delivery of aggregated energy consumpmstockstill on DSK4VPTVN1PROD with BILLS

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1 tion information to owners and managers of res2 idential and commercial buildings with multiple 

3 tenants and uses; and 

4 ‘‘(B) consider the development of a memo5 randum of understanding between and among 

6 affected stakeholders to reduce barriers to the de7 livery of aggregated energy consumption infor8 mation to such owners and managers. 

9 ‘‘(i) EFFECT ON OTHER LAWS.—Nothing in this sec10 tion or section 307 supersedes or modifies the application 

11 of sections 321 through 346 of the Energy Policy and Con12 servation Act (42 U.S.C. 6291 et seq.). 

13 ‘‘(j) FUNDING LIMITATIONS.—No Federal funds shall 

14 be— 

15 ‘‘(1) used to support actions by the Secretary, or 

16 States, to promote or discourage the adoption of a 

17 particular building energy code, code provision, or 

18 energy saving target to a State or Indian tribe; or 

19 ‘‘(2) provided to private third parties or non20 governmental organizations to engage in such activi21 ties.’’. 

22 (c) FEDERAL BUILDING ENERGY EFFICIENCY STAND23 ARDS.—Section 305 of the Energy Conservation and Pro24 duction Act (42 U.S.C. 6834) is amended by striking ‘‘volmstockstill on DSK4VPTVN1PROD with BILLS

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1 untary building energy code’’ in subsections (a)(2)(B) and 

2 (b) and inserting ‘‘model building energy code’’. 

3 (d) MODEL BUILDING ENERGY CODES.— 

4 (1) AMENDMENT.—Section 307 of the Energy 

5 Conservation and Production Act (42 U.S.C. 6836) is 

6 amended to read as follows: 

7 ‘‘SEC. 307. SUPPORT FOR MODEL BUILDING ENERGY CODES. 

8 ‘‘(a) IN GENERAL.—The Secretary shall provide tech9 nical assistance, as described in subsection (c), for updating 

10 of model building energy codes. 

11 ‘‘(b) TARGETS.— 

12 ‘‘(1) IN GENERAL.—The Secretary shall provide 

13 technical assistance, for updating the model building 

14 energy codes. 

15 ‘‘(2) TARGETS.— 

16 ‘‘(A) IN GENERAL.—The Secretary shall 

17 provide technical assistance to States, Indian 

18 tribes, local governments, nationally recognized 

19 code and standards developers, and other inter20 ested parties for updating of model building en21 ergy codes by establishing one or more aggregate 

22 energy savings targets through rulemaking in ac23 cordance with section 553 of title 5, United 

24 States Code, to achieve the purposes of this sec25 tion. 

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1 ‘‘(B) SEPARATE TARGETS.—Separate tar2 gets may be established for commercial and resi3 dential buildings. 

4 ‘‘(C) BASELINES.—The baseline for updat5 ing model building energy codes shall be the 

6 2009 IECC for residential buildings and 

7 ASHRAE Standard 90.1–2010 for commercial 

8 buildings. 

9 ‘‘(D) SPECIFIC YEARS.— 

10 ‘‘(i) IN GENERAL.—Targets for specific 

11 years shall be established and revised by the 

12 Secretary through rulemaking in accordance 

13 with section 553 of title 5, United States 

14 Code, and coordinated with nationally rec15 ognized code and standards developers at a 

16 level that— 

17 ‘‘(I) is at the maximum level of 

18 energy efficiency that is technically 

19 feasible and cost effective, while ac20 counting for the economic consider21 ations under paragraph (4); and 

22 ‘‘(II) promotes the achievement of 

23 commercial and residential high per24 formance buildings through high per25 formance energy efficiency (within the 

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1 meaning of section 401 of the Energy 

2 Independence and Security Act of 2007 

3 (42 U.S.C. 17061)). 

4 ‘‘(ii) INITIAL TARGETS.—Not later 

5 than 1 year after the date of enactment of 

6 this clause, the Secretary shall establish ini7 tial targets under this subparagraph. 

8 ‘‘(iii) DIFFERENT TARGET YEARS.— 

9 Subject to clause (i), prior to the applicable 

10 year, the Secretary may set a later target 

11 year for any of the model building energy 

12 codes described in subparagraph (A) if the 

13 Secretary determines that a target cannot 

14 be met. 

15 ‘‘(E) SMALL BUSINESS.—When establishing 

16 targets under this paragraph through rule17 making, the Secretary shall ensure compliance 

18 with the Small Business Regulatory Enforcement 

19 Fairness Act of 1996 (5 U.S.C. 601 note; Public 

20 Law 104–121) for any indirect economic effect 

21 on small entities that is reasonably foreseeable 

22 and a result of such rule. 

23 ‘‘(3) APPLIANCE STANDARDS AND OTHER FAC24 TORS AFFECTING BUILDING ENERGY USE.—In estab25 lishing energy savings targets under paragraph (2), 

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1 the Secretary shall develop and adjust the targets in 

2 recognition of potential savings and costs relating 

3 to— 

4 ‘‘(A) efficiency gains made in appliances, 

5 lighting, windows, insulation, and building enve6 lope sealing; 

7 ‘‘(B) advancement of distributed generation 

8 and on-site renewable power generation tech9 nologies; 

10 ‘‘(C) equipment improvements for heating, 

11 cooling, and ventilation systems and water heat12 ing systems; 

13 ‘‘(D) building management systems and 

14 smart grid technologies to reduce energy use; and 

15 ‘‘(E) other technologies, practices, and 

16 building systems regarding building plug load 

17 and other energy uses. 

18 In developing and adjusting the targets, the Secretary 

19 shall use climate zone weighted averages for equip20 ment efficiency for heating, cooling, ventilation, and 

21 water heating systems, using equipment that is actu22 ally installed. 

23 ‘‘(4) ECONOMIC CONSIDERATIONS.—In estab24 lishing and revising energy savings targets under 

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1 nomic feasibility of achieving the proposed targets es2 tablished under this section and the potential costs 

3 and savings for consumers and building owners, by 

4 conducting a return on investment analysis, using a 

5 simple payback methodology over a 3-, 5-, and 7-year 

6 period. The Secretary shall not propose or provide 

7 technical or financial assistance for any code, provi8 sion in the code, or energy target, or amendment 

9 thereto, that has a payback greater than 10 years. 

10 ‘‘(c) TECHNICAL ASSISTANCE TO MODEL BUILDING

11 ENERGY CODE-SETTING AND STANDARD DEVELOPMENT

12 ORGANIZATIONS.— 

13 ‘‘(1) IN GENERAL.—The Secretary shall, on a 

14 timely basis, provide technical assistance to model 

15 building energy code-setting and standard develop16 ment organizations consistent with the goals of this 

17 section. 

18 ‘‘(2) TECHNICAL ASSISTANCE.—The assistance 

19 shall include, as requested by the organizations, tech20 nical assistance in— 

21 ‘‘(A) evaluating the energy savings of build22 ing energy codes; 

23 ‘‘(B) assessing the economic considerations, 

24 under subsection (b)(4), of code or standards pro25 posals or revisions; 

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1 ‘‘(C) building energy analysis and design 

2 tools; 

3 ‘‘(D) energy simulation models; 

4 ‘‘(E) building demonstrations; 

5 ‘‘(F) developing definitions of energy use in6 tensity and building types for use in model 

7 building energy codes to evaluate the efficiency 

8 impacts of the model building energy codes; 

9 ‘‘(G) developing a performance-based path10 way for compliance; 

11 ‘‘(H) developing model building energy 

12 codes by Indian tribes in accordance with tribal 

13 law; and 

14 ‘‘(I) code development meetings, including 

15 through direct Federal employee participation in 

16 committee meetings, hearings and online commu17 nication, voting, and presenting research and 

18 technical or economic analyses during such meet19 ings. 

20 ‘‘(3) EXCLUSION.—Except as provided in para21 graph (2)(I), for purposes of this section, ‘technical 

22 assistance’ shall not include actions that promote or 

23 discourage the adoption of a particular building en24 ergy code, code provision, or energy savings target. 

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1 ‘‘(4) INFORMATION QUALITY AND TRANS2 PARENCY.—For purposes of this section, information 

3 provided by the Secretary, attendant to development 

4 of any energy savings targets, is influential informa5 tion and shall satisfy the guidelines established by the 

6 Office of Management and Budget and published at 

7 67 Federal Register 8,452 (Feb. 22, 2002). 

8 ‘‘(d) AMENDMENT PROPOSALS.— 

9 ‘‘(1) IN GENERAL.—The Secretary may submit 

10 timely model building energy code amendment pro11 posals that are technically feasible, cost-effective, and 

12 technology-neutral to the model building energy code13 setting and standard development organizations, with 

14 supporting evidence, sufficient to enable the model 

15 building energy codes to meet the targets established 

16 under subsection (b)(2). 

17 ‘‘(2) PROCESS AND FACTORS.—All amendment 

18 proposals submitted by the Secretary shall be pub19 lished in the Federal Register and made available on 

20 the Department of Energy website 90 days prior to 

21 any submittal to a code development body, and shall 

22 be subject to a public comment period of not less than 

23 60 days. Information provided by the Secretary, at24 tendant to submission of any amendment proposals, 

25 is influential information and shall satisfy the guidemstockstill on DSK4VPTVN1PROD with BILLS

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1 lines established by the Office of Management and 

2 Budget and published at 67 Federal Register 8,452 

3 (Feb. 22, 2002). When calculating the costs and bene4 fits of an amendment, the Secretary shall use climate 

5 zone weighted averages for equipment efficiency for 

6 heating, cooling, ventilation, and water heating sys7 tems, using equipment that is actually installed. 

8 ‘‘(e) ANALYSIS METHODOLOGY.—The Secretary shall 

9 make publicly available the entire calculation methodology 

10 (including input assumptions and data) used by the Sec11 retary to estimate the energy savings of code or standard 

12 proposals and revisions. 

13 ‘‘(f) METHODOLOGY DEVELOPMENT.—The Secretary 

14 shall establish a methodology for evaluating cost effective15 ness of energy code changes in multifamily buildings that 

16 incorporates economic parameters representative of typical 

17 multifamily buildings. 

18 ‘‘(g) DETERMINATION.— 

19 ‘‘(1) REVISION OF MODEL BUILDING ENERGY

20 CODES.—If the provisions of the IECC or ASHRAE 

21 Standard 90.1 regarding building energy use are re22 vised, the Secretary shall make a preliminary deter23 mination not later than 90 days after the date of the 

24 revision, and a final determination not later than 15 

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1 months after the date of the revision, on whether or 

2 not the revision— 

3 ‘‘(A) improves energy efficiency in buildings 

4 compared to the existing IECC or ASHRAE 

5 Standard 90.1, as applicable; 

6 ‘‘(B) meets the applicable targets under sub7 section (b)(2); and 

8 ‘‘(C) is technically feasible and cost-effec9 tive. 

10 ‘‘(2) CODES OR STANDARDS NOT MEETING CRI11 TERIA.— 

12 ‘‘(A) IN GENERAL.—If the Secretary makes 

13 a preliminary determination under paragraph 

14 (1)(B) that a revised IECC or ASHRAE Stand15 ard 90.1 does not meet the targets established 

16 under subsection (b)(2), is not technically fea17 sible, or is not cost-effective, the Secretary may 

18 at the same time provide technical assistance, as 

19 described in subsection (c), to the International 

20 Code Council or ASHRAE, as applicable, with 

21 proposed changes that would result in a model 

22 building energy code or standard that meets the 

23 criteria, and with supporting evidence. Proposed 

24 changes submitted by the Secretary shall be pub25 lished in the Federal Register and made availmstockstill on DSK4VPTVN1PROD with BILLS

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1 able on the Department of Energy website 90 

2 days prior to any submittal to a code develop3 ment body, and shall be subject to a public com4 ment period of not less than 60 days. Informa5 tion provided by the Secretary, attendant to sub6 mission of any amendment proposals, is influen7 tial information and shall satisfy the guidelines 

8 established by the Office of Management and 

9 Budget and published at 67 Federal Register 

10 8,452 (Feb. 22, 2002). 

11 ‘‘(B) INCORPORATION OF CHANGES.— 

12 ‘‘(i) IN GENERAL.—On receipt of the 

13 technical assistance, as described in sub14 section (c), the International Code Council 

15 or ASHRAE, as applicable, shall, prior to 

16 the Secretary making a final determination 

17 under paragraph (1), have an additional 

18 270 days to accept or reject the proposed 

19 changes made by the Secretary to the model 

20 building energy code or standard. 

21 ‘‘(ii) FINAL DETERMINATION.—A final 

22 determination under paragraph (1) shall be 

23 on the final revised model building energy 

24 code or standard. 

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1 ‘‘(h) ADMINISTRATION.—In carrying out this section, 

2 the Secretary shall— 

3 ‘‘(1) publish notice of targets, amendment pro4 posals and supporting analysis and determinations 

5 under this section in the Federal Register to provide 

6 an explanation of and the basis for such actions, in7 cluding any supporting modeling, data, assumptions, 

8 protocols, and cost-benefit analysis, including return 

9 on investment; 

10 ‘‘(2) provide an opportunity for public comment 

11 on targets and supporting analysis and determina12 tions under this section, in accordance with section 

13 553 of title 5, United States Code; and 

14 ‘‘(3) provide an opportunity for public comment 

15 on amendment proposals. 

16 ‘‘(i) VOLUNTARY CODES AND STANDARDS.—Not with17 standing any other provision of this section, any model 

18 building code or standard established under this section 

19 shall not be binding on a State, local government, or Indian 

20 tribe as a matter of Federal law.’’. 

21 (2) CONFORMING AMENDMENT.—The item relat22 ing to section 307 in the table of contents for the En23 ergy Conservation and Production Act is amended to 

24 read as follows: 

‘‘Sec. 307. Support for model building energy codes.’’. 

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1 SEC. 4152. VOLUNTARY NATURE OF BUILDING ASSET RAT2 ING PROGRAM. 

3 (a) IN GENERAL.—Any program of the Secretary of 

4 Energy that may enable the owner of a commercial building 

5 or a residential building to obtain a rating, score, or label 

6 regarding the actual or anticipated energy usage or per7 formance of a building shall be made available on a vol8 untary, optional, and market-driven basis. 

9 (b) DISCLAIMER AS TO REGULATORY INTENT.—Infor10 mation disseminated by the Secretary of Energy regarding 

11 the program described in subsection (a), including any in12 formation made available by the Secretary on a website, 

13 shall include language plainly stating that such program 

14 is not developed or intended to be the basis for a regulatory 

15 program by a Federal, State, local, or municipal govern16 ment body. 

17 CHAPTER 6—EPCA TECHNICAL 

18 CORRECTIONS AND CLARIFICATIONS 

19 SEC. 4161. MODIFYING PRODUCT DEFINITIONS. 

20 (a) AUTHORITY TO MODIFY DEFINITIONS.— 

21 (1) COVERED PRODUCTS.—Section 322 of the 

22 Energy Policy and Conservation Act (42 U.S.C. 

23 6292) is amended by adding at the end the following: 

24 ‘‘(c) MODIFYING DEFINITIONS OF COVERED PROD25 UCTS.— 

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1 ‘‘(1) IN GENERAL.—For any covered product for 

2 which a definition is provided in section 321, the Sec3 retary may, by rule, unless prohibited herein, modify 

4 such definition in order to— 

5 ‘‘(A) address significant changes in the 

6 product or the market occurring since the defini7 tion was established; and 

8 ‘‘(B) better enable improvements in the en9 ergy efficiency of the product as part of an en10 ergy using system. 

11 ‘‘(2) ANTIBACKSLIDING EXEMPTION.—Section 

12 325(o)(1) shall not apply to adjustments to covered 

13 product definitions made pursuant to this subsection. 

14 ‘‘(3) PROCEDURE FOR MODIFYING DEFINITION.— 

15 ‘‘(A) IN GENERAL.—Notice of any adjust16 ment to the definition of a covered product and 

17 an explanation of the reasons therefor shall be 

18 published in the Federal Register and oppor19 tunity provided for public comment. 

20 ‘‘(B) CONSENSUS REQUIRED.—Any amend21 ment to the definition of a covered product under 

22 this subsection must have consensus support, as 

23 reflected in— 

24 ‘‘(i) the outcome of negotiations con25 ducted in accordance with the subchapter 

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1 III of chapter 5 of title 5, United States 

2 Code (commonly known as the ‘Negotiated 

3 Rulemaking Act of 1990’); or 

4 ‘‘(ii) the Secretary’s receipt of a state5 ment that is submitted jointly by interested 

6 persons that are fairly representative of rel7 evant points of view (including representa8 tives of manufacturers of covered products, 

9 States, and efficiency advocates), as deter10 mined by the Secretary, which contains a 

11 recommended modified definition for a cov12 ered product. 

13 ‘‘(4) EFFECT OF A MODIFIED DEFINITION.— 

14 ‘‘(A) IN GENERAL.—For any type or class 

15 of consumer product which becomes a covered 

16 product pursuant to this subsection— 

17 ‘‘(i) the Secretary may establish test 

18 procedures for such type or class of covered 

19 product pursuant to section 323 and energy 

20 conservation standards pursuant to section 

21 325(l); 

22 ‘‘(ii) the Commission may prescribe la23 beling rules pursuant to section 324 if the 

24 Commission determines that labeling in ac25 cordance with that section is technologically 

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1 and economically feasible and likely to as2 sist consumers in making purchasing deci3 sions; 

4 ‘‘(iii) section 327 shall begin to apply 

5 to such type or class of covered product in 

6 accordance with section 325(ii)(1); and 

7 ‘‘(iv) standards previously promul8 gated under section 325 shall not apply to 

9 such type or class of product. 

10 ‘‘(B) APPLICABILITY.—For any type or 

11 class of consumer product which ceases to be a 

12 covered product pursuant to this subsection, the 

13 provisions of this part shall no longer apply to 

14 the type or class of consumer product.’’. 

15 (2) COVERED EQUIPMENT.—Section 341 of the 

16 Energy Policy and Conservation Act (42 U.S.C. 

17 6312) is amended by adding at the end the following: 

18 ‘‘(d) MODIFYING DEFINITIONS OF COVERED EQUIP19 MENT.— 

20 ‘‘(1) IN GENERAL.—For any covered equipment 

21 for which a definition is provided in section 340, the 

22 Secretary may, by rule, unless prohibited herein, 

23 modify such definition in order to— 

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1 ‘‘(A) address significant changes in the 

2 product or the market occurring since the defini3 tion was established; and 

4 ‘‘(B) better enable improvements in the en5 ergy efficiency of the equipment as part of an en6 ergy using system. 

7 ‘‘(2) ANTIBACKSLIDING EXEMPTION.—Section 

8 325(o)(1) shall not apply to adjustments to covered 

9 equipment definitions made pursuant to this sub10 section. 

11 ‘‘(3) PROCEDURE FOR MODIFYING DEFINITION.— 

12 ‘‘(A) IN GENERAL.—Notice of any adjust13 ment to the definition of a type of covered equip14 ment and an explanation of the reasons therefor 

15 shall be published in the Federal Register and 

16 opportunity provided for public comment. 

17 ‘‘(B) CONSENSUS REQUIRED.—Any amend18 ment to the definition of a type of covered equip19 ment under this subsection must have consensus 

20 support, as reflected in— 

21 ‘‘(i) the outcome of negotiations con22 ducted in accordance with the subchapter 

23 III of chapter 5 of title 5, United States 

24 Code (commonly known as the ‘Negotiated 

25 Rulemaking Act of 1990’); or 

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1 ‘‘(ii) the Secretary’s receipt of a state2 ment that is submitted jointly by interested 

3 persons that are fairly representative of rel4 evant points of view (including representa5 tives of manufacturers of covered equipment, 

6 States, and efficiency advocates), as deter7 mined by the Secretary, which contains a 

8 recommended modified definition for a type 

9 of covered equipment. 

10 ‘‘(4) EFFECT OF A MODIFIED DEFINITION.— 

11 ‘‘(A) For any type or class of equipment 

12 which becomes covered equipment pursuant to 

13 this subsection— 

14 ‘‘(i) the Secretary may establish test 

15 procedures for such type or class of covered 

16 equipment pursuant to section 343 and en17 ergy conservation standards pursuant to 

18 section 325(l); 

19 ‘‘(ii) the Secretary may prescribe label20 ing rules pursuant to section 344 if the Sec21 retary determines that labeling in accord22 ance with that section is technologically and 

23 economically feasible and likely to assist 

24 purchasers in making purchasing decisions; 

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1 ‘‘(iii) section 327 shall begin to apply 

2 to such type or class of covered equipment 

3 in accordance with section 325(ii)(1); and 

4 ‘‘(iv) standards previously promul5 gated under section 325, 342, or 346 shall 

6 not apply to such type or class of covered 

7 equipment. 

8 ‘‘(B) For any type or class of equipment 

9 which ceases to be covered equipment pursuant to 

10 this subsection the provisions of this part shall 

11 no longer apply to the type or class of equip12 ment.’’. 

13 (b) CONFORMING AMENDMENTS PROVIDING FOR JUDI14 CIAL REVIEW.— 

15 (1) Section 336 of the Energy Policy and Con16 servation Act (42 U.S.C. 6306) is amended by strik17 ing ‘‘section 323,’’ each place it appears and inserting 

18 ‘‘section 322, 323,’’; and 

19 (2) Section 345(a)(1) of the Energy Policy and 

20 Conservation Act (42 U.S.C. 6316(a)(1)) is amended 

21 to read as follows: 

22 ‘‘(1) the references to sections 322, 323, 324, and 

23 325 of this Act shall be considered as references to sec24 tions 341, 343, 344, and 342 of this Act, respec25 tively;’’. 

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1 SEC. 4162. CLARIFYING RULEMAKING PROCEDURES. 

2 (a) COVERED PRODUCTS.—Section 325(p) of the En3 ergy Policy and Conservation Act (42 U.S.C. 6295(p)) is 

4 amended— 

5 (1) by redesignating paragraphs (1), (2), (3), 

6 and (4) as paragraphs (2), (3), (5), and (6), respec7 tively; 

8 (2) by inserting before paragraph (2) (as so re9 designated by paragraph (1) of this subsection) the 

10 following: 

11 ‘‘(1) The Secretary shall provide an opportunity 

12 for public input prior to the issuance of a proposed 

13 rule, seeking information— 

14 ‘‘(A) identifying and commenting on design 

15 options; 

16 ‘‘(B) on the existence of and opportunities 

17 for voluntary nonregulatory actions; and 

18 ‘‘(C) identifying significant subgroups of 

19 consumers and manufacturers that merit anal20 ysis.’’; 

21 (3) in paragraph (3) (as so redesignated by 

22 paragraph (1) of this subsection)— 

23 (A) in subparagraph (C), by striking ‘‘and’’ 

24 after ‘‘adequate;’’; 

25 (B) in subparagraph (D), by striking 

26 ‘‘standard.’’ and inserting ‘‘standard;’’; and 

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1 (C) by adding at the end the following new 

2 subparagraphs: 

3 ‘‘(E) whether the technical and economic 

4 analytical assumptions, methods, and models 

5 used to justify the standard to be prescribed 

6 are— 

7 ‘‘(i) justified; and 

8 ‘‘(ii) available and accessible for public 

9 review, analysis, and use; and 

10 ‘‘(F) the cumulative regulatory impacts on 

11 the manufacturers of the product, taking into ac12 count— 

13 ‘‘(i) other government standards affect14 ing energy use; and 

15 ‘‘(ii) other energy conservation stand16 ards affecting the same manufacturers.’’; 

17 and 

18 (4) by inserting after paragraph (3) (as so redes19 ignated by paragraph (1) of this subsection) the fol20 lowing: 

21 ‘‘(4) RESTRICTION ON TEST PROCEDURE AMEND22 MENTS.— 

23 ‘‘(A) IN GENERAL.—Any proposed energy 

24 conservation standards rule shall be based on the 

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1 mine compliance, and the public comment period 

2 on the proposed standards shall conclude no 

3 sooner than 180 days after the date of publica4 tion of a final rule revising the test procedure. 

5 ‘‘(B) EXCEPTION.—The Secretary may pro6 pose or prescribe an amendment to the test pro7 cedures issued pursuant to section 323 for any 

8 type or class of covered product after the 

9 issuance of a notice of proposed rulemaking to 

10 prescribe an amended or new energy conserva11 tion standard for that type or class of covered 

12 product, but before the issuance of a final rule 

13 prescribing any such standard, if— 

14 ‘‘(i) the amendments to the test proce15 dure have consensus support achieved 

16 through a rulemaking conducted in accord17 ance with the subchapter III of chapter 5 of 

18 title 5, United States Code (commonly 

19 known as the ‘Negotiated Rulemaking Act of 

20 1990’); or 

21 ‘‘(ii) the Secretary receives a statement 

22 that is submitted jointly by interested per23 sons that are fairly representative of rel24 evant points of view (including representa25 tives of manufacturers of the type or class 

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1 of covered product, States, and efficiency 

2 advocates), as determined by the Secretary, 

3 which contains a recommendation that a 

4 supplemental notice of proposed rulemaking 

5 is not necessary for the type or class of cov6 ered product.’’. 

7 (b) CONFORMING AMENDMENT.—Section 345(b)(1) of 

8 the Energy Policy and Conservation Act (42 U.S.C. 

9 6316(b)(1)) is amended by striking ‘‘section 325(p)(4),’’ 

10 and inserting ‘‘section 325(p)(3), (4), and (6),’’. 

11 CHAPTER 7—ENERGY AND WATER 

12 EFFICIENCY 

13 SEC. 4171. SMART ENERGY AND WATER EFFICIENCY PILOT 

14 PROGRAM. 

15 (a) DEFINITIONS.—In this section: 

16 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti17 ty’’ means— 

18 (A) a utility; 

19 (B) a municipality; 

20 (C) a water district; and 

21 (D) any other authority that provides 

22 water, wastewater, or water reuse services. 

23 (2) SECRETARY.—The term ‘‘Secretary’’ means 

24 the Secretary of Energy. 

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1 (3) SMART ENERGY AND WATER EFFICIENCY

2 PILOT PROGRAM.—The term ‘‘smart energy and water 

3 efficiency pilot program’’ or ‘‘pilot program’’ means 

4 the pilot program established under subsection (b). 

5 (b) SMART ENERGY AND WATER EFFICIENCY PILOT

6 PROGRAM.— 

7 (1) IN GENERAL.—The Secretary shall establish 

8 and carry out a smart energy and water efficiency 

9 management pilot program in accordance with this 

10 section. 

11 (2) PURPOSE.—The purpose of the smart energy 

12 and water efficiency pilot program is to award grants 

13 to eligible entities to demonstrate advanced and inno14 vative technology-based solutions that will— 

15 (A) increase and improve the energy effi16 ciency of water, wastewater, and water reuse sys17 tems to help communities across the United 

18 States make significant progress in conserving 

19 water, saving energy, and reducing costs; 

20 (B) support the implementation of innova21 tive processes and the installation of advanced 

22 automated systems that provide real-time data 

23 on energy and water; and 

24 (C) improve energy and water conservation, 

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1 ergy and water systems, through the use of Inter2 net-connected technologies, including sensors, in3 telligent gateways, and security embedded in 

4 hardware. 

5 (3) PROJECT SELECTION.— 

6 (A) IN GENERAL.—The Secretary shall 

7 make competitive, merit-reviewed grants under 

8 the pilot program to not less than 3, but not 

9 more than 5, eligible entities. 

10 (B) SELECTION CRITERIA.—In selecting an 

11 eligible entity to receive a grant under the pilot 

12 program, the Secretary shall consider— 

13 (i) energy and cost savings anticipated 

14 to result from the project; 

15 (ii) the innovative nature, commercial 

16 viability, and reliability of the technology to 

17 be used; 

18 (iii) the degree to which the project in19 tegrates next-generation sensors, software, 

20 hardware, analytics, and management tools; 

21 (iv) the anticipated cost effectiveness of 

22 the pilot project in terms of energy effi23 ciency savings, water savings or reuse, and 

24 infrastructure costs averted; 

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1 (v) whether the technology can be de2 ployed in a variety of geographic regions 

3 and the degree to which the technology can 

4 be implemented on a smaller or larger scale, 

5 including whether the technology can be im6 plemented by each type of eligible entity; 

7 (vi) whether the technology has been 

8 successfully deployed elsewhere; 

9 (vii) whether the technology is sourced 

10 from a manufacturer based in the United 

11 States; and 

12 (viii) whether the project will be com13 pleted in 5 years or less. 

14 (C) APPLICATIONS.— 

15 (i) IN GENERAL.—Subject to clause 

16 (ii), an eligible entity seeking a grant under 

17 the pilot program shall submit to the Sec18 retary an application at such time, in such 

19 manner, and containing such information 

20 as the Secretary determines to be necessary. 

21 (ii) CONTENTS.—An application under 

22 clause (i) shall, at a minimum, include— 

23 (I) a description of the project; 

24 (II) a description of the tech25 nology to be used in the project; 

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1 (III) the anticipated results, in2 cluding energy and water savings, of 

3 the project; 

4 (IV) a comprehensive budget for 

5 the project; 

6 (V) the names of the project lead 

7 organization and any partners; 

8 (VI) the number of users to be 

9 served by the project; and 

10 (VII) any other information that 

11 the Secretary determines to be nec12 essary to complete the review and selec13 tion of a grant recipient. 

14 (4) ADMINISTRATION.— 

15 (A) IN GENERAL.—Not later than 300 days 

16 after the date of enactment of this Act, the Sec17 retary shall select grant recipients under this sec18 tion. 

19 (B) EVALUATIONS.—The Secretary shall an20 nually carry out an evaluation of each project 

21 for which a grant is provided under this section 

22 that— 

23 (i) evaluates the progress and impact 

24 of the project; and 

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1 (ii) assesses the degree to which the 

2 project is meeting the goals of the pilot pro3 gram. 

4 (C) TECHNICAL AND POLICY ASSISTANCE.— 

5 On the request of a grant recipient, the Secretary 

6 shall provide technical and policy assistance to 

7 the grant recipient to carry out the project. 

8 (D) BEST PRACTICES.—The Secretary shall 

9 make available to the public— 

10 (i) a copy of each evaluation carried 

11 out under subparagraph (B); and 

12 (ii) a description of any best practices 

13 identified by the Secretary as a result of 

14 those evaluations. 

15 (E) REPORT TO CONGRESS.—The Secretary 

16 shall submit to Congress a report containing the 

17 results of each evaluation carried out under sub18 paragraph (B). 

19 (c) FUNDING.— 

20 (1) IN GENERAL.—To carry out this section, the 

21 Secretary shall use not more than $15,000,000 of 

22 amounts made available to the Secretary. 

23 (2) PRIORITIZATION.—In funding activities 

24 under this section, the Secretary shall prioritize fund25 ing in the following manner: 

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1 (A) The Secretary shall first use any unob2 ligated amounts made available to the Secretary 

3 to carry out the activities of the Energy Effi4 ciency and Renewable Energy Office. 

5 (B) After any amounts described in sub6 paragraph (A) have been used, the Secretary 

7 shall then use any unobligated amounts (other 

8 than those described in subparagraph (A)) made 

9 available to the Secretary. 

10 SEC. 4172. WATERSENSE. 

11 (a) IN GENERAL.—The Energy Policy and Conserva12 tion Act (42 U.S.C. 6201 et seq.) is amended by adding 

13 after section 324A the following: 

14 ‘‘SEC. 324B. WATERSENSE. 

15 ‘‘(a) WATERSENSE.— 

16 ‘‘(1) IN GENERAL.—There is established within 

17 the Environmental Protection Agency a voluntary 

18 program, to be entitled ‘WaterSense’, to identify 

19 water efficient products, buildings, landscapes, facili20 ties, processes, and services that sensibly— 

21 ‘‘(A) reduce water use; 

22 ‘‘(B) reduce the strain on public and com23 munity water systems and wastewater and 

24 stormwater infrastructure; 

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1 ‘‘(C) conserve energy used to pump, heat, 

2 transport, and treat water; and 

3 ‘‘(D) preserve water resources for future 

4 generations, through voluntary labeling of, or 

5 other forms of communications about, products, 

6 buildings, landscapes, facilities, processes, and 

7 services while still meeting strict performance 

8 criteria. 

9 ‘‘(2) DUTIES.—The Administrator, coordinating 

10 as appropriate with the Secretary of Energy, shall— 

11 ‘‘(A) establish— 

12 ‘‘(i) a WaterSense label to be used for 

13 items meeting the certification criteria es14 tablished in this section; and 

15 ‘‘(ii) the procedure, including the 

16 methods and means, by which an item may 

17 be certified to display the WaterSense label; 

18 ‘‘(B) conduct a public awareness education 

19 campaign regarding the WaterSense label; 

20 ‘‘(C) preserve the integrity of the 

21 WaterSense label by— 

22 ‘‘(i) establishing and maintaining fea23 sible performance criteria so that products, 

24 buildings, landscapes, facilities, processes, 

25 and services labeled with the WaterSense 

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1 label perform as well or better than less 

2 water-efficient counterparts; 

3 ‘‘(ii) overseeing WaterSense certifi4 cations made by third parties; 

5 ‘‘(iii) using testing protocols, from the 

6 appropriate, applicable, and relevant con7 sensus standards, for the purpose of deter8 mining standards compliance; and 

9 ‘‘(iv) auditing the use of the 

10 WaterSense label in the marketplace and 

11 preventing cases of misuse; and 

12 ‘‘(D) not more often than every six years, 

13 review and, if appropriate, update WaterSense 

14 criteria for the defined categories of water-effi15 cient product, building, landscape, process, or 

16 service, including— 

17 ‘‘(i) providing reasonable notice to in18 terested parties and the public of any such 

19 changes, including effective dates, and an 

20 explanation of the changes; 

21 ‘‘(ii) soliciting comments from inter22 ested parties and the public prior to any 

23 such changes; 

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1 ‘‘(iii) as appropriate, responding to 

2 comments submitted by interested parties 

3 and the public; and 

4 ‘‘(iv) providing an appropriate transi5 tion time prior to the applicable effective 

6 date of any such changes, taking into ac7 count the timing necessary for the manufac8 ture, marketing, training, and distribution 

9 of the specific water-efficient product, build10 ing, landscape, process, or service category 

11 being addressed. 

12 ‘‘(b) USE OF SCIENCE.—In carrying out this section, 

13 and, to the degree that an agency action is based on science, 

14 the Administrator shall use— 

15 ‘‘(1) the best available peer-reviewed science and 

16 supporting studies conducted in accordance with 

17 sound and objective scientific practices; and 

18 ‘‘(2) data collected by accepted methods or best 

19 available methods (if the reliability of the method and 

20 the nature of the decision justify use of the data). 

21 ‘‘(c) DISTINCTION OF AUTHORITIES.—In setting or 

22 maintaining standards for Energy Star pursuant to section 

23 324A, and WaterSense under this section, the Secretary and 

24 Administrator shall coordinate to prevent duplicative or 

25 conflicting requirements among the respective programs. 

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1 ‘‘(d) DEFINITIONS.—In this section: 

2 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis3 trator’ means the Administrator of the Environ4 mental Protection Agency. 

5 ‘‘(2) FEASIBLE.—The term ‘feasible’ means fea6 sible with the use of the best technology, treatment 

7 techniques, and other means that the Administrator 

8 finds, after examination for efficacy under field con9 ditions and not solely under laboratory conditions, 

10 are available (taking cost into consideration). 

11 ‘‘(3) SECRETARY.—The term ‘Secretary’ means 

12 the Secretary of Energy. 

13 ‘‘(4) WATER-EFFICIENT PRODUCT, BUILDING, 

14 LANDSCAPE, PROCESS, OR SERVICE.—The term 

15 ‘water-efficient product, building, landscape, process, 

16 or service’ means a product, building, landscape, 

17 process, or service for a residence or a commercial or 

18 institutional building, or its landscape, that is rated 

19 for water efficiency and performance, the covered cat20 egories of which are— 

21 ‘‘(A) irrigation technologies and services; 

22 ‘‘(B) point-of-use water treatment devices; 

23 ‘‘(C) plumbing products; 

24 ‘‘(D) reuse and recycling technologies; 

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1 ‘‘(E) landscaping and gardening products, 

2 including moisture control or water enhancing 

3 technologies; 

4 ‘‘(F) xeriscaping and other landscape con5 versions that reduce water use; and 

6 ‘‘(G) new water efficient homes certified 

7 under the WaterSense program.’’. 

8 (b) CONFORMING AMENDMENT.—The table of contents 

9 for the Energy Policy and Conservation Act (Public Law 

10 94–163; 42 U.S.C. 6201 et seq.) is amended by inserting 

11 after the item relating to section 324A the following new 

12 item: 

‘‘Sec. 324B. WaterSense.’’. 

13 Subtitle B—Accountability 

14 CHAPTER 1—MARKET MANIPULATION, 

15 ENFORCEMENT, AND COMPLIANCE 

16 SEC. 4211. FERC OFFICE OF COMPLIANCE ASSISTANCE AND 

17 PUBLIC PARTICIPATION. 

18 Section 319 of the Federal Power Act (16 U.S.C. 825q– 

19 1) is amended to read as follows: 

20 ‘‘SEC. 319. OFFICE OF COMPLIANCE ASSISTANCE AND PUB21 LIC PARTICIPATION. 

22 ‘‘(a) ESTABLISHMENT.—There is established within 

23 the Commission an Office of Compliance Assistance and 

24 Public Participation (referred to in this section as the ‘Of25 fice’). The Office shall be headed by a Director. 

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1 ‘‘(b) DUTIES OF DIRECTOR.— 

2 ‘‘(1) IN GENERAL.—The Director of the Office 

3 shall promote improved compliance with Commission 

4 rules and orders by— 

5 ‘‘(A) making recommendations to the Com6 mission regarding— 

7 ‘‘(i) the protection of consumers; 

8 ‘‘(ii) market integrity and support for 

9 the development of responsible market be10 havior; 

11 ‘‘(iii) the application of Commission 

12 rules and orders in a manner that ensures 

13 that— 

14 ‘‘(I) rates and charges for, or in 

15 connection with, the transmission or 

16 sale of electric energy subject to the ju17 risdiction of the Commission shall be 

18 just and reasonable and not unduly 

19 discriminatory or preferential; and 

20 ‘‘(II) markets for such trans21 mission and sale of electric energy are 

22 not impaired and consumers are not 

23 damaged; and 

24 ‘‘(iv) the impact of existing and pro25 posed Commission rules and orders on 

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1 small entities, as defined in section 601 of 

2 title 5, United States Code (commonly 

3 known as the Regulatory Flexibility Act); 

4 ‘‘(B) providing entities subject to regulation 

5 by the Commission the opportunity to obtain 

6 timely guidance for compliance with Commis7 sion rules and orders; and 

8 ‘‘(C) providing information to the Commis9 sion and Congress to inform policy with respect 

10 to energy issues under the jurisdiction of the 

11 Commission. 

12 ‘‘(2) REPORTS AND GUIDANCE.—The Director 

13 shall, as the Director determines appropriate, issue 

14 reports and guidance to the Commission and to enti15 ties subject to regulation by the Commission, regard16 ing market practices, proposing improvements in 

17 Commission monitoring of market practices, and ad18 dressing potential improvements to both industry and 

19 Commission practices. 

20 ‘‘(3) OUTREACH.—The Director shall promote 

21 improved compliance with Commission rules and or22 ders through outreach, publications, and, where ap23 propriate, direct communication with entities regu24 lated by the Commission.’’. 

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1 CHAPTER 2—MARKET REFORMS 

2 SEC. 4221. GAO STUDY ON WHOLESALE ELECTRICITY MAR3 KETS. 

4 (a) STUDY AND REPORT.—Not later than 1 year after 

5 the date of enactment of this Act, the Comptroller General 

6 shall submit to the Committee on Energy and Commerce 

7 of the House of Representatives and the Committee on En8 ergy and Natural Resources of the Senate a report describ9 ing the results of a study of whether and how the current 

10 market rules, practices, and structures of each regional 

11 transmission entity produce rates that are just and reason12 able by— 

13 (1) facilitating fuel diversity, the availability of 

14 generation resources during emergency and severe 

15 weather conditions, resource adequacy, and reli16 ability, including the cost-effective retention and de17 velopment of needed generation; 

18 (2) promoting the equitable treatment of business 

19 models, including different utility types, the integra20 tion of diverse generation resources, and advanced 

21 grid technologies; 

22 (3) identifying and addressing regulatory bar23 riers to entry, market-distorting incentives, and arti24 ficial constraints on competition; 

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1 (4) providing transparency regarding dispatch 

2 decisions, including the need for out-of-market actions 

3 and payments, and the accuracy of day-ahead unit 

4 commitments; 

5 (5) facilitating the development of necessary nat6 ural gas pipeline and electric transmission infra7 structure; 

8 (6) ensuring fairness and transparency in gov9 ernance structures and stakeholder processes, includ10 ing meaningful participation by both voting and non11 voting stakeholder representatives; 

12 (7) ensuring the proper alignment of the energy 

13 and transmission markets by including both energy 

14 and financial transmission rights in the day-ahead 

15 markets; 

16 (8) facilitating the ability of load-serving entities 

17 to self-supply their service territory load; 

18 (9) considering, as appropriate, State and local 

19 resource planning; and 

20 (10) mitigating, to the extent practicable, the 

21 disruptive effects of tariff revisions on the economic 

22 decisionmaking of market participants. 

23 (b) DEFINITIONS.—In this section: 

24 (1) LOAD-SERVING ENTITY.—The term ‘‘load25 serving entity’’ has the meaning given that term in 

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1 section 217 of the Federal Power Act (16 U.S.C. 

2 824q). 

3 (2) REGIONAL TRANSMISSION ENTITY.—The term 

4 ‘‘regional transmission entity’’ means a Regional 

5 Transmission Organization or an Independent Sys6 tem Operator, as such terms are defined in section 3 

7 of the Federal Power Act (16 U.S.C. 796). 

8 SEC. 4222. CLARIFICATION OF FACILITY MERGER AUTHOR9 IZATION. 

10 Section 203(a)(1)(B) of the Federal Power Act (16 

11 U.S.C. 824b(a)(1)(B)) is amended by striking ‘‘such facili12 ties or any part thereof’’ and inserting ‘‘such facilities, or 

13 any part thereof, of a value in excess of $10,000,000’’. 

14 CHAPTER 3—CODE MAINTENANCE 

15 SEC. 4231. REPEAL OF OFF-HIGHWAY MOTOR VEHICLES 

16 STUDY. 

17 (a) REPEAL.—Part I of title III of the Energy Policy 

18 and Conservation Act (42 U.S.C. 6373) is repealed. 

19 (b) CONFORMING AMENDMENT.—The table of contents 

20 for the Energy Policy and Conservation Act (Public Law 

21 94–163; 89 Stat. 871) is amended— 

22 (1) by striking the item relating to part I of title 

23 III; and 

24 (2) by striking the item relating to section 385. 

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1 SEC. 4232. REPEAL OF METHANOL STUDY. 

2 Section 400EE of the Energy Policy and Conservation 

3 Act (42 U.S.C. 6374d) is amended— 

4 (1) by striking subsection (a); and 

5 (2) by redesignating subsections (b) and (c) as 

6 subsections (a) and (b), respectively. 

7 SEC. 4233. REPEAL OF RESIDENTIAL ENERGY EFFICIENCY 

8 STANDARDS STUDY. 

9 (a) REPEAL.—Section 253 of the National Energy 

10 Conservation Policy Act (42 U.S.C. 8232) is repealed. 

11 (b) CONFORMING AMENDMENT.—The table of contents 

12 for the National Energy Conservation Policy Act (Public 

13 Law 95–619; 92 Stat. 3206) is amended by striking the 

14 item relating to section 253. 

15 SEC. 4234. REPEAL OF WEATHERIZATION STUDY. 

16 (a) REPEAL.—Section 254 of the National Energy 

17 Conservation Policy Act (42 U.S.C. 8233) is repealed. 

18 (b) CONFORMING AMENDMENT.—The table of contents 

19 for the National Energy Conservation Policy Act (Public 

20 Law 95–619; 92 Stat. 3206) is amended by striking the 

21 item relating to section 254. 

22 SEC. 4235. REPEAL OF REPORT TO CONGRESS. 

23 (a) REPEAL.—Section 273 of the National Energy 

24 Conservation Policy Act (42 U.S.C. 8236b) is repealed. 

25 (b) CONFORMING AMENDMENT.—The table of contents 

26 for the National Energy Conservation Policy Act (Public 

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1 Law 95–619; 92 Stat. 3206) is amended by striking the 

2 item relating to section 273. 

3 SEC. 4236. REPEAL OF REPORT BY GENERAL SERVICES AD4 MINISTRATION. 

5 (a) REPEAL.—Section 154 of the Energy Policy Act 

6 of 1992 (42 U.S.C. 8262a) is repealed. 

7 (b) CONFORMING AMENDMENTS.— 

8 (1) The table of contents for the Energy Policy 

9 Act of 1992 (Public Law 102–486; 106 Stat. 2776) is 

10 amended by striking the item relating to section 154. 

11 (2) Section 159 of the Energy Policy Act of 1992 

12 (42 U.S.C. 8262e) is amended by striking subsection 

13 (c). 

14 SEC. 4237. REPEAL OF INTERGOVERNMENTAL ENERGY MAN15 AGEMENT PLANNING AND COORDINATION 

16 WORKSHOPS. 

17 (a) REPEAL.—Section 156 of the Energy Policy Act 

18 of 1992 (42 U.S.C. 8262b) is repealed. 

19 (b) CONFORMING AMENDMENT.—The table of contents 

20 for the Energy Policy Act of 1992 (Public Law 102–486; 

21 106 Stat. 2776) is amended by striking the item relating 

22 to section 156. 

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1 SEC. 4238. REPEAL OF INSPECTOR GENERAL AUDIT SURVEY 

2 AND PRESIDENT’S COUNCIL ON INTEGRITY 

3 AND EFFICIENCY REPORT TO CONGRESS. 

4 (a) REPEAL.—Section 160 of the Energy Policy Act 

5 of 1992 (42 U.S.C. 8262f) is amended by striking the sec6 tion designation and heading and all that follows through 

7 ‘‘(c) INSPECTOR GENERAL REVIEW.—Each Inspector Gen8 eral’’ and inserting the following: 

9 ‘‘SEC. 160. INSPECTOR GENERAL REVIEW. 

10 ‘‘Each Inspector General’’. 

11 (b) CONFORMING AMENDMENT.—The table of contents 

12 for the Energy Policy Act of 1992 (Public Law 102–486; 

13 106 Stat. 2776) is amended by striking the item relating 

14 to section 160 and inserting the following: 

‘‘Sec. 160. Inspector General review.’’. 

15 SEC. 4239. REPEAL OF PROCUREMENT AND IDENTIFICA16 TION OF ENERGY EFFICIENT PRODUCTS PRO17 GRAM. 

18 (a) REPEAL.—Section 161 of the Energy Policy Act 

19 of 1992 (42 U.S.C. 8262g) is repealed. 

20 (b) CONFORMING AMENDMENT.—The table of contents 

21 for the Energy Policy Act of 1992 (Public Law 102–486; 

22 106 Stat. 2776) is amended by striking the item relating 

23 to section 161. 

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1 SEC. 4240. REPEAL OF NATIONAL ACTION PLAN FOR DE2 MAND RESPONSE. 

3 (a) REPEAL.—Part 5 of title V of the National Energy 

4 Conservation Policy Act (42 U.S.C. 8279) is repealed. 

5 (b) CONFORMING AMENDMENT.—The table of contents 

6 for the National Energy Conservation Policy Act (Public 

7 Law 95–619; 92 Stat. 3206; 121 Stat. 1665) is amended— 

8 (1) by striking the item relating to part 5 of title 

9 V; and 

10 (2) by striking the item relating to section 571. 

11 SEC. 4241. REPEAL OF NATIONAL COAL POLICY STUDY. 

12 (a) REPEAL.—Section 741 of the Powerplant and In13 dustrial Fuel Use Act of 1978 (42 U.S.C. 8451) is repealed. 

14 (b) CONFORMING AMENDMENT.—The table of contents 

15 for the Powerplant and Industrial Fuel Use Act of 1978 

16 (Public Law 95–620; 92 Stat. 3289) is amended by striking 

17 the item relating to section 741. 

18 SEC. 4242. REPEAL OF STUDY ON COMPLIANCE PROBLEM 

19 OF SMALL ELECTRIC UTILITY SYSTEMS. 

20 (a) REPEAL.—Section 744 of the Powerplant and In21 dustrial Fuel Use Act of 1978 (42 U.S.C. 8454) is repealed. 

22 (b) CONFORMING AMENDMENT.—The table of contents 

23 for the Powerplant and Industrial Fuel Use Act of 1978 

24 (Public Law 95–620; 92 Stat. 3289) is amended by striking 

25 the item relating to section 744. 

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1 SEC. 4243. REPEAL OF STUDY OF SOCIOECONOMIC IMPACTS 

2 OF INCREASED COAL PRODUCTION AND 

3 OTHER ENERGY DEVELOPMENT. 

4 (a) REPEAL.—Section 746 of the Powerplant and In5 dustrial Fuel Use Act of 1978 (42 U.S.C. 8456) is repealed. 

6 (b) CONFORMING AMENDMENT.—The table of contents 

7 for the Powerplant and Industrial Fuel Use Act of 1978 

8 (Public Law 95–620; 92 Stat. 3289) is amended by striking 

9 the item relating to section 746. 

10 SEC. 4244. REPEAL OF STUDY OF THE USE OF PETROLEUM 

11 AND NATURAL GAS IN COMBUSTORS. 

12 (a) REPEAL.—Section 747 of the Powerplant and In13 dustrial Fuel Use Act of 1978 (42 U.S.C. 8457) is repealed. 

14 (b) CONFORMING AMENDMENT.—The table of contents 

15 for the Powerplant and Industrial Fuel Use Act of 1978 

16 (Public Law 95–620; 92 Stat. 3289) is amended by striking 

17 the item relating to section 747. 

18 SEC. 4245. REPEAL OF SUBMISSION OF REPORTS. 

19 (a) REPEAL.—Section 807 of the Powerplant and In20 dustrial Fuel Use Act of 1978 (42 U.S.C. 8483) is repealed. 

21 (b) CONFORMING AMENDMENT.—The table of contents 

22 for the Powerplant and Industrial Fuel Use Act of 1978 

23 (Public Law 95–620; 92 Stat. 3289) is amended by striking 

24 the item relating to section 807. 

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1 SEC. 4246. REPEAL OF ELECTRIC UTILITY CONSERVATION 

2 PLAN. 

3 (a) REPEAL.—Section 808 of the Powerplant and In4 dustrial Fuel Use Act of 1978 (42 U.S.C. 8484) is repealed. 

5 (b) CONFORMING AMENDMENTS.— 

6 (1) TABLE OF CONTENTS.—The table of contents 

7 for the Powerplant and Industrial Fuel Use Act of 

8 1978 (Public Law 95–620; 92 Stat. 3289) is amended 

9 by striking the item relating to section 808. 

10 (2) REPORT ON IMPLEMENTATION.—Section 712 

11 of the Powerplant and Industrial Fuel Use Act of 

12 1978 (42 U.S.C. 8422) is amended— 

13 (A) by striking ‘‘(a) GENERALLY.—’’; and 

14 (B) by striking subsection (b). 

15 SEC. 4247. TECHNICAL AMENDMENT TO POWERPLANT AND 

16 INDUSTRIAL FUEL USE ACT OF 1978. 

17 The table of contents for the Powerplant and Indus18 trial Fuel Use Act of 1978 (Public Law 95–620; 92 Stat. 

19 3289) is amended by striking the item relating to section 

20 742. 

21 SEC. 4248. EMERGENCY ENERGY CONSERVATION REPEALS. 

22 (a) REPEALS.— 

23 (1) Section 201 of the Emergency Energy Con24 servation Act of 1979 (42 U.S.C. 8501) is amended— 

25 (A) in the section heading, by striking 

26 ‘‘FINDINGS AND’’; 

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1 (B) by striking subsection (a); and 

2 (C) by striking ‘‘(b) PURPOSES.—’’. 

3 (2) Section 221 of the Emergency Energy Con4 servation Act of 1979 (42 U.S.C. 8521) is repealed. 

5 (3) Section 222 of the Emergency Energy Con6 servation Act of 1979 (42 U.S.C. 8522) is repealed. 

7 (4) Section 241 of the Emergency Energy Con8 servation Act of 1979 (42 U.S.C. 8531) is repealed. 

9 (b) CONFORMING AMENDMENT.—The table of contents 

10 for the Emergency Energy Conservation Act of 1979 (Public 

11 Law 96–102; 93 Stat. 749) is amended— 

12 (1) by striking the item relating to section 201 

13 and inserting the following: 

‘‘Sec. 201. Purposes.’’; and 

14 (2) by striking the items relating to sections 221, 

15 222, and 241. 

16 SEC. 4249. REPEAL OF STATE UTILITY REGULATORY ASSIST17 ANCE. 

18 (a) REPEAL.—Section 207 of the Energy Conservation 

19 and Production Act (42 U.S.C. 6807) is repealed. 

20 (b) CONFORMING AMENDMENT.—The table of contents 

21 for the Energy Conservation and Production Act (Public 

22 Law 94–385; 90 Stat. 1125) is amended by striking the 

23 item relating to section 207. 

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1 SEC. 4250. REPEAL OF SURVEY OF ENERGY SAVING POTEN2 TIAL. 

3 (a) REPEAL.—Section 550 of the National Energy 

4 Conservation Policy Act (42 U.S.C. 8258b) is repealed. 

5 (b) CONFORMING AMENDMENTS.— 

6 (1) The table of contents for the National Energy 

7 Conservation Policy Act (Public Law 95–619; 92 

8 Stat. 3206; 106 Stat. 2851) is amended by striking 

9 the item relating to section 550. 

10 (2) Section 543(d)(2) of the National Energy 

11 Conservation Policy Act (42 U.S.C. 8253(d)(2)) is 

12 amended by striking ‘‘, incorporating any relevant 

13 information obtained from the survey conducted pur14 suant to section 550’’. 

15 SEC. 4251. REPEAL OF PHOTOVOLTAIC ENERGY PROGRAM. 

16 (a) REPEAL.—Part 4 of title V of the National Energy 

17 Conservation Policy Act (42 U.S.C. 8271 et seq.) is re18 pealed. 

19 (b) CONFORMING AMENDMENTS.—The table of contents 

20 for the National Energy Conservation Policy Act (Public 

21 Law 95–619; 92 Stat. 3206) is amended— 

22 (1) by striking the item relating to part 4 of title 

23 V; and 

24 (2) by striking the items relating to sections 561 

25 through 570. 

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1 SEC. 4252. REPEAL OF ENERGY AUDITOR TRAINING AND 

2 CERTIFICATION. 

3 (a) REPEAL.—Subtitle F of title V of the Energy Secu4 rity Act (42 U.S.C. 8285 et seq.) is repealed. 

5 (b) CONFORMING AMENDMENT.—The table of contents 

6 for the Energy Security Act (Public Law 96–294; 94 Stat. 

7 611) is amended by striking the items relating to subtitle 

8 F of title V. 

9 CHAPTER 4—USE OF EXISTING FUNDS 

10 SEC. 4261. USE OF EXISTING FUNDS. 

11 Amounts required for carrying out this Act, other than 

12 section 1201, shall be derived from amounts appropriated 

13 under authority provided by previously enacted law. 

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Union Calendar No. 265 

114TH CONGRESS 

1ST SESSION H. R. 8 

[Report No. 114–347, Part I] 

A BILL 

To modernize energy infrastructure, build a 21st 

accountability, and for other purposes. and promote energy efficiency and government bolster America’s energy security and diplomacy, century energy and manufacturing workforce, 

NOVEMBER 19, 2015 

Reported from the Committee on Energy and Commerce 

NOVEMBER 19, 2015 

The Committees on Science, Space, and Technology, 

State of the Union and ordered to be printed mitted to the Committee of the Whole House on the ment Reform, and Foreign Affairs discharged; comEducation and the Workforce, Oversight and Governmstockstill on DSK4VPTVN1PROD with BILLS