I 

115TH CONGRESS 

1ST SESSION H. R. 1443 

To promote energy savings in residential buildings and industry, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 9, 2017 

Mr. MCKINLEY (for himself, Mr. WELCH, Mr. CARTWRIGHT, and Ms. ESHOO) 

introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on the Budget, 

Financial Services, Science, Space, and Technology, Transportation and 

Infrastructure, and Oversight and Government Reform, 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 

A BILL 

To promote energy savings in residential buildings and 

industry, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Energy Savings and Industrial Competitiveness Act’’. 

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

7 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

Sec. 2. Definition of Secretary. 

TITLE I—BUILDINGS 

Subtitle A—Building Energy Codes 

Sec. 101. Greater energy efficiency in building codes. 

Subtitle B—Worker Training and Capacity Building 

Sec. 111. Building training and assessment centers. 

Sec. 112. Career skills training. 

Subtitle C—School Buildings 

Sec. 121. Coordination of energy retrofitting assistance for schools. 

TITLE II—INDUSTRIAL EFFICIENCY AND COMPETITIVENESS 

Subtitle A—Manufacturing Energy Efficiency 

Sec. 201. Purposes. 

Sec. 202. Future of Industry program. 

Sec. 203. Sustainable manufacturing initiative. 

Sec. 204. Conforming amendments. 

Subtitle B—Supply Star 

Sec. 211. Supply Star. 

Subtitle C—Extended Product System Rebate Program 

Sec. 221. Extended product system rebate program. 

Subtitle D—Transformer Rebate Program 

Sec. 231. Energy efficient transformer rebate program. 

TITLE III—FEDERAL AGENCY ENERGY EFFICIENCY 

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

Sec. 302. Energy efficient data centers. 

Sec. 303. Budget-neutral demonstration program for energy and water conservation improvements at multifamily residential units. 

TITLE IV—REGULATORY PROVISIONS 

Subtitle A—Third-Party Certification Under Energy Star Program 

Sec. 401. Third-Party Certification Under Energy Star Program. 

Subtitle B—Federal Green Buildings 

Sec. 411. High-performance green Federal buildings. 

Subtitle C—Energy Performance Requirement for Federal Buildings 

Sec. 421. Energy performance requirement for Federal buildings. 

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


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Sec. 423. Enhanced energy efficiency underwriting. 

TITLE V—MISCELLANEOUS 

Sec. 501. Budgetary effects. 

Sec. 502. Advance appropriations required. 

1 SEC. 2. DEFINITION OF SECRETARY. 

2 In this Act, the term ‘‘Secretary’’ means the Sec3 retary of Energy. 

4 TITLE I—BUILDINGS 

5 Subtitle A—Building Energy Codes 

6 SEC. 101. GREATER ENERGY EFFICIENCY IN BUILDING 

7 CODES. 

8 (a) DEFINITIONS.—Section 303 of the Energy Con9 servation and Production Act (42 U.S.C. 6832) is amend10 ed— 

11 (1) by striking paragraph (14) and inserting 

12 the following: 

13 ‘‘(14) MODEL BUILDING ENERGY CODE.—The 

14 term ‘model building energy code’ means a voluntary 

15 building energy code and standards developed and 

16 updated through a consensus process among inter17 ested persons, such as the IECC or the code used 

18 by— 

19 ‘‘(A) the Council of American Building Of20 ficials, or its legal successor, International Code 

21 Council, Inc.; 

22 ‘‘(B) the American Society of Heating, Re23 frigerating, and Air-Conditioning Engineers; or 


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1 ‘‘(C) other appropriate organizations.’’; 

2 and 

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

4 ‘‘(17) IECC.—The term ‘IECC’ means the 

5 International Energy Conservation Code. 

6 ‘‘(18) INDIAN TRIBE.—The term ‘Indian tribe’ 

7 has the meaning given the term in section 4 of the 

8 Native American Housing Assistance and Self-De9 termination Act of 1996 (25 U.S.C. 4103).’’. 

10 (b) STATE BUILDING ENERGY EFFICIENCY

11 CODES.—Section 304 of the Energy Conservation and 

12 Production Act (42 U.S.C. 6833) is amended to read as 

13 follows: 

14 ‘‘SEC. 304. UPDATING STATE BUILDING ENERGY EFFI15 CIENCY CODES. 

16 ‘‘(a) IN GENERAL.—The Secretary shall— 

17 ‘‘(1) encourage and support the adoption of 

18 building energy codes by States, Indian tribes, and, 

19 as appropriate, by local governments that meet or 

20 exceed the model building energy codes, or achieve 

21 equivalent or greater energy savings; and 

22 ‘‘(2) support full compliance with the State and 

23 local codes. 

24 ‘‘(b) STATE AND INDIAN TRIBE CERTIFICATION OF

25 BUILDING ENERGY CODE UPDATES.— 


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1 ‘‘(1) REVIEW AND UPDATING OF CODES BY

2 EACH STATE AND INDIAN TRIBE.— 

3 ‘‘(A) IN GENERAL.—Not later than 2 years 

4 after the date on which a model building energy 

5 code is updated, each State or Indian tribe shall 

6 certify whether or not the State or Indian tribe, 

7 respectively, has reviewed and updated the en8 ergy provisions of the building code of the State 

9 or Indian tribe, respectively. 

10 ‘‘(B) DEMONSTRATION.—The certification 

11 shall include a demonstration of whether or not 

12 the energy savings for the code provisions that 

13 are in effect throughout the State or Indian 

14 tribal territory meet or exceed— 

15 ‘‘(i) the energy savings of the updated 

16 model building energy code; or 

17 ‘‘(ii) the targets established under sec18 tion 307(b)(2). 

19 ‘‘(C) NO MODEL BUILDING ENERGY CODE

20 UPDATE.—If a model building energy code is 

21 not updated by a target date established under 

22 section 307(b)(2)(D), each State or Indian tribe 

23 shall, not later than 2 years after the specified 

24 date, certify whether or not the State or Indian 

25 tribe, respectively, has reviewed and updated 


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1 the energy provisions of the building code of the 

2 State or Indian tribe, respectively, to meet or 

3 exceed the target in section 307(b)(2). 

4 ‘‘(2) VALIDATION BY SECRETARY.—Not later 

5 than 90 days after a State or Indian tribe certifi6 cation under paragraph (1), the Secretary shall— 

7 ‘‘(A) determine whether the code provi8 sions of the State or Indian tribe, respectively, 

9 meet the criteria specified in paragraph (1); 

10 and 

11 ‘‘(B) if the determination is positive, vali12 date the certification. 

13 ‘‘(c) IMPROVEMENTS IN COMPLIANCE WITH BUILD14 ING ENERGY CODES.— 

15 ‘‘(1) REQUIREMENT.— 

16 ‘‘(A) IN GENERAL.—Not later than 3 years 

17 after the date of a certification under sub18 section (b), each State and Indian tribe shall 

19 certify whether or not the State and Indian 

20 tribe, respectively, has— 

21 ‘‘(i) achieved full compliance under 

22 paragraph (3) with the applicable certified 

23 State and Indian tribe building energy 

24 code or with the associated model building 

25 energy code; or 


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1 ‘‘(ii) made significant progress under 

2 paragraph (4) toward achieving compliance 

3 with the applicable certified State and In4 dian tribe building energy code or with the 

5 associated model building energy code. 

6 ‘‘(B) REPEAT CERTIFICATIONS.—If the 

7 State or Indian tribe certifies progress toward 

8 achieving compliance, the State or Indian tribe 

9 shall repeat the certification until the State or 

10 Indian tribe certifies that the State or Indian 

11 tribe has achieved full compliance, respectively. 

12 ‘‘(2) MEASUREMENT OF COMPLIANCE.—A cer13 tification under paragraph (1) shall include docu14 mentation of the rate of compliance based on— 

15 ‘‘(A) independent inspections of a random 

16 sample of the buildings covered by the code in 

17 the preceding year; or 

18 ‘‘(B) an alternative method that yields an 

19 accurate measure of compliance. 

20 ‘‘(3) ACHIEVEMENT OF COMPLIANCE.—A State 

21 or Indian tribe shall be considered to achieve full 

22 compliance under paragraph (1) if— 

23 ‘‘(A) at least 90 percent of building space 

24 covered by the code in the preceding year sub25 stantially meets all the requirements of the apVerDate Sep 11 2014 04:34 Mar 16, 2017 Jkt 069200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1443.IH H1443

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1 plicable code specified in paragraph (1), or 

2 achieves equivalent or greater energy savings 

3 level; or 

4 ‘‘(B) the estimated excess energy use of 

5 buildings that did not meet the applicable code 

6 specified in paragraph (1) in the preceding 

7 year, compared to a baseline of comparable 

8 buildings that meet this code, is not more than 

9 5 percent of the estimated energy use of all 

10 buildings covered by this code during the pre11 ceding year. 

12 ‘‘(4) SIGNIFICANT PROGRESS TOWARD

13 ACHIEVEMENT OF COMPLIANCE.—A State or Indian 

14 tribe shall be considered to have made significant 

15 progress toward achieving compliance for purposes 

16 of paragraph (1) if the State or Indian tribe— 

17 ‘‘(A) has developed and is implementing a 

18 plan for achieving compliance during the 8- 

19 year-period beginning on the date of enactment 

20 of this paragraph, including annual targets for 

21 compliance and active training and enforcement 

22 programs; and 

23 ‘‘(B) has met the most recent target under 

24 subparagraph (A). 


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1 ‘‘(5) 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 State or In5 dian tribe has demonstrated meeting the cri6 teria of this subsection, including accurate 

7 measurement of compliance; and 

8 ‘‘(B) if the determination is positive, vali9 date the certification. 

10 ‘‘(d) STATES OR INDIAN TRIBES THAT DO NOT

11 ACHIEVE COMPLIANCE.— 

12 ‘‘(1) REPORTING.—A State or Indian tribe that 

13 has not made a certification required under sub14 section (b) or (c) by the applicable deadline shall 

15 submit to the Secretary a report on— 

16 ‘‘(A) the status of the State or Indian tribe 

17 with respect to meeting the requirements and 

18 submitting the certification; and 

19 ‘‘(B) a plan for meeting the requirements 

20 and submitting the certification. 

21 ‘‘(2) FEDERAL SUPPORT.—For any State or In22 dian tribe for which the Secretary has not validated 

23 a certification by a deadline under subsection (b) or 

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1 ation for Federal support authorized under this sec2 tion for code adoption and compliance activities. 

3 ‘‘(3) LOCAL GOVERNMENT.—In any State or 

4 Indian tribe for which the Secretary has not vali5 dated a certification under subsection (b) or (c), a 

6 local government may be eligible for Federal support 

7 by meeting the certification requirements of sub8 sections (b) and (c). 

9 ‘‘(4) ANNUAL REPORTS BY SECRETARY.— 

10 ‘‘(A) IN GENERAL.—The Secretary shall 

11 annually submit to Congress, and publish in the 

12 Federal Register, a report on— 

13 ‘‘(i) the status of model building en14 ergy codes; 

15 ‘‘(ii) the status of code adoption and 

16 compliance in the States and Indian tribes; 

17 ‘‘(iii) implementation of this section; 

18 and 

19 ‘‘(iv) improvements in energy savings 

20 over time as result of the targets estab21 lished under section 307(b)(2). 

22 ‘‘(B) IMPACTS.—The report shall include 

23 estimates of impacts of past action under this 

24 section, and potential impacts of further action, 

25 on— 


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1 ‘‘(i) upfront financial and construction 

2 costs, cost benefits and returns (using in3 vestment analysis), and lifetime energy use 

4 for buildings; 

5 ‘‘(ii) resulting energy costs to individ6 uals and businesses; and 

7 ‘‘(iii) resulting overall annual building 

8 ownership and operating costs. 

9 ‘‘(e) TECHNICAL ASSISTANCE TO STATES AND IN10 DIAN TRIBES.—The Secretary shall provide technical as11 sistance to States and Indian tribes to implement the goals 

12 and requirements of this section, including procedures and 

13 technical analysis for States and Indian tribes— 

14 ‘‘(1) to improve and implement State residential 

15 and commercial building energy codes; 

16 ‘‘(2) to demonstrate that the code provisions of 

17 the States and Indian tribes achieve equivalent or 

18 greater energy savings than the model building en19 ergy codes and targets; 

20 ‘‘(3) to document the rate of compliance with a 

21 building energy code; and 

22 ‘‘(4) to otherwise promote the design and con23 struction of energy efficient buildings. 

24 ‘‘(f) AVAILABILITY OF INCENTIVE FUNDING.— 


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1 ‘‘(1) IN GENERAL.—The Secretary shall provide 

2 incentive funding to States and Indian tribes— 

3 ‘‘(A) to implement the requirements of this 

4 section; 

5 ‘‘(B) to improve and implement residential 

6 and commercial building energy codes, including 

7 increasing and verifying compliance with the 

8 codes and training of State, tribal, and local 

9 building code officials to implement and enforce 

10 the codes; and 

11 ‘‘(C) to promote building energy efficiency 

12 through the use of the codes. 

13 ‘‘(2) ADDITIONAL FUNDING.—Additional fund14 ing shall be provided under this subsection for im15 plementation of a plan to achieve and document full 

16 compliance with residential and commercial building 

17 energy codes under subsection (c)— 

18 ‘‘(A) to a State or Indian tribe for which 

19 the Secretary has validated a certification under 

20 subsection (b) or (c); and 

21 ‘‘(B) in a State or Indian tribe that is not 

22 eligible under subparagraph (A), to a local gov23 ernment that is eligible under this section. 

24 ‘‘(3) TRAINING.—Of the amounts made avail25 able under this subsection, the State or Indian tribe 


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1 may use amounts required, but not to exceed 

2 $750,000 for a State, to train State and local build3 ing code officials to implement and enforce codes de4 scribed in paragraph (2). 

5 ‘‘(4) LOCAL GOVERNMENTS.—States may share 

6 grants under this subsection with local governments 

7 that implement and enforce the codes. 

8 ‘‘(g) STRETCH CODES AND ADVANCED STAND9 ARDS.— 

10 ‘‘(1) IN GENERAL.—The Secretary shall provide 

11 technical and financial support for the development 

12 of stretch codes and advanced standards for residen13 tial and commercial buildings for use as— 

14 ‘‘(A) an option for adoption as a building 

15 energy code by local, tribal, or State govern16 ments; and 

17 ‘‘(B) guidelines for energy-efficient build18 ing design. 

19 ‘‘(2) TARGETS.—The stretch codes and ad20 vanced standards shall be designed— 

21 ‘‘(A) to achieve substantial energy savings 

22 compared to the model building energy codes; 

23 and 


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1 ‘‘(B) to meet targets under section 307(b), 

2 if available, at least 3 to 6 years in advance of 

3 the target years. 

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

5 building science experts from the National Laboratories 

6 and institutions of higher education, designers and build7 ers of energy-efficient residential and commercial build8 ings, code officials, and other stakeholders, shall under9 take a study of the feasibility, impact, economics, and 

10 merit of— 

11 ‘‘(1) code improvements that would require that 

12 buildings be designed, sited, and constructed in a 

13 manner that makes the buildings more adaptable in 

14 the future to become zero-net-energy after initial 

15 construction, as advances are achieved in energy-sav16 ing technologies; 

17 ‘‘(2) code procedures to incorporate measured 

18 lifetimes, not just first-year energy use, in trade-offs 

19 and performance calculations; and 

20 ‘‘(3) legislative options for increasing energy 

21 savings from building energy codes, including addi22 tional incentives for effective State and local action, 

23 and verification of compliance with and enforcement 

24 of a code other than by a State or local government. 


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1 ‘‘(i) EFFECT ON OTHER LAWS.—Nothing in this sec2 tion or section 307 supersedes or modifies the application 

3 of sections 321 through 346 of the Energy Policy and 

4 Conservation Act (42 U.S.C. 6291 et seq.). 

5 ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There 

6 are authorized to be appropriated to carry out this section 

7 and section 307 $200,000,000, to remain available until 

8 expended.’’. 

9 (c) FEDERAL BUILDING ENERGY EFFICIENCY

10 STANDARDS.—Section 305 of the Energy Conservation 

11 and Production Act (42 U.S.C. 6834) is amended by strik12 ing ‘‘voluntary building energy code’’ each place it appears 

13 in subsections (a)(2)(B) and (b) and inserting ‘‘model 

14 building energy code’’. 

15 (d) MODEL BUILDING ENERGY CODES.—Section 307 

16 of the Energy Conservation and Production Act (42 

17 U.S.C. 6836) is amended to read as follows: 

18 ‘‘SEC. 307. SUPPORT FOR MODEL BUILDING ENERGY 

19 CODES. 

20 ‘‘(a) IN GENERAL.—The Secretary shall support the 

21 updating of model building energy codes. 

22 ‘‘(b) TARGETS.— 

23 ‘‘(1) IN GENERAL.—The Secretary shall sup24 port the updating of the model building energy codes 


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1 to enable the achievement of aggregate energy sav2 ings targets established under paragraph (2). 

3 ‘‘(2) TARGETS.— 

4 ‘‘(A) IN GENERAL.—The Secretary shall 

5 work with State, Indian tribes, local govern6 ments, nationally recognized code and stand7 ards developers, and other interested parties to 

8 support the updating of model building energy 

9 codes by establishing one or more aggregate en10 ergy savings targets to achieve the purposes of 

11 this section. 

12 ‘‘(B) SEPARATE TARGETS.—The Secretary 

13 may establish separate targets for commercial 

14 and residential buildings. 

15 ‘‘(C) BASELINES.—The baseline for updat16 ing model building energy codes shall be the 

17 2009 IECC for residential buildings and 

18 ASHRAE Standard 90.1–2010 for commercial 

19 buildings. 

20 ‘‘(D) SPECIFIC YEARS.— 

21 ‘‘(i) IN GENERAL.—Targets for spe22 cific years shall be established and revised 

23 by the Secretary through rulemaking and 

24 coordinated with nationally recognized code 

25 and standards developers at a level that— 


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1 ‘‘(I) is at the maximum level of 

2 energy efficiency that is techno3 logically feasible and life-cycle cost ef4 fective, while accounting for the eco5 nomic considerations under paragraph 

6 (4); 

7 ‘‘(II) is higher than the preceding 

8 target; and 

9 ‘‘(III) promotes the achievement 

10 of commercial and residential high11 performance buildings through high 

12 performance energy efficiency (within 

13 the meaning of section 401 of the En14 ergy Independence and Security Act 

15 of 2007 (42 U.S.C. 17061)). 

16 ‘‘(ii) INITIAL TARGETS.—Not later 

17 than 1 year after the date of enactment of 

18 this clause, the Secretary shall establish 

19 initial targets under this subparagraph. 

20 ‘‘(iii) DIFFERENT TARGET YEARS.— 

21 Subject to clause (i), prior to the applica22 ble year, the Secretary may set a later tar23 get year for any of the model building en24 ergy codes described in subparagraph (A) 


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1 if the Secretary determines that a target 

2 cannot be met. 

3 ‘‘(iv) SMALL BUSINESS.—When estab4 lishing targets under this paragraph 

5 through rulemaking, the Secretary shall 

6 ensure compliance with the Small Business 

7 Regulatory Enforcement Fairness Act of 

8 1996 (5 U.S.C. 601 note; Public Law 104– 

9 121). 

10 ‘‘(3) APPLIANCE STANDARDS AND OTHER FAC11 TORS AFFECTING BUILDING ENERGY USE.—In es12 tablishing building code targets under paragraph 

13 (2), the Secretary shall develop and adjust the tar14 gets in recognition of potential savings and costs re15 lating to— 

16 ‘‘(A) efficiency gains made in appliances, 

17 lighting, windows, insulation, and building enve18 lope sealing; 

19 ‘‘(B) advancement of distributed genera20 tion and on-site renewable power generation 

21 technologies; 

22 ‘‘(C) equipment improvements for heating, 

23 cooling, and ventilation systems; 


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1 ‘‘(D) building management systems and 

2 SmartGrid technologies to reduce energy use; 

3 and 

4 ‘‘(E) other technologies, practices, and 

5 building systems that the Secretary considers 

6 appropriate regarding building plug load and 

7 other energy uses. 

8 ‘‘(4) ECONOMIC CONSIDERATIONS.—In estab9 lishing and revising building code targets under 

10 paragraph (2), the Secretary shall consider the eco11 nomic feasibility of achieving the proposed targets 

12 established under this section and the potential costs 

13 and savings for consumers and building owners, in14 cluding a return on investment analysis. 

15 ‘‘(c) TECHNICAL ASSISTANCE TO MODEL BUILDING

16 ENERGY CODE-SETTING AND STANDARD DEVELOPMENT

17 ORGANIZATIONS.— 

18 ‘‘(1) IN GENERAL.—The Secretary shall, on a 

19 timely basis, provide technical assistance to model 

20 building energy code-setting and standard develop21 ment organizations consistent with the goals of this 

22 section. 

23 ‘‘(2) ASSISTANCE.—The assistance shall in24 clude, as requested by the organizations, technical 

25 assistance in— 


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1 ‘‘(A) evaluating code or standards pro2 posals or revisions; 

3 ‘‘(B) building energy analysis and design 

4 tools; 

5 ‘‘(C) building demonstrations; 

6 ‘‘(D) developing definitions of energy use 

7 intensity and building types for use in model 

8 building energy codes to evaluate the efficiency 

9 impacts of the model building energy codes; 

10 ‘‘(E) performance-based standards; 

11 ‘‘(F) evaluating economic considerations 

12 under subsection (b)(4); and 

13 ‘‘(G) developing model building energy 

14 codes by Indian tribes in accordance with tribal 

15 law. 

16 ‘‘(3) AMENDMENT PROPOSALS.—The Secretary 

17 may submit timely model building energy code 

18 amendment proposals to the model building energy 

19 code-setting and standard development organiza20 tions, with supporting evidence, sufficient to enable 

21 the model building energy codes to meet the targets 

22 established under subsection (b)(2). 

23 ‘‘(4) ANALYSIS METHODOLOGY.—The Secretary 

24 shall make publicly available the entire calculation 

25 methodology (including input assumptions and data) 


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1 used by the Secretary to estimate the energy savings 

2 of code or standard proposals and revisions. 

3 ‘‘(d) DETERMINATION.— 

4 ‘‘(1) REVISION OF MODEL BUILDING ENERGY

5 CODES.—If the provisions of the IECC or ASHRAE 

6 Standard 90.1 regarding building energy use are re7 vised, the Secretary shall make a preliminary deter8 mination not later than 90 days after the date of the 

9 revision, and a final determination not later than 15 

10 months after the date of the revision, on whether or 

11 not the revision will— 

12 ‘‘(A) improve energy efficiency in buildings 

13 compared to the existing model building energy 

14 code; and 

15 ‘‘(B) meet the applicable targets under 

16 subsection (b)(2). 

17 ‘‘(2) CODES OR STANDARDS NOT MEETING TAR18 GETS.— 

19 ‘‘(A) IN GENERAL.—If the Secretary 

20 makes a preliminary determination under para21 graph (1)(B) that a code or standard does not 

22 meet the targets established under subsection 

23 (b)(2), the Secretary may at the same time pro24 vide the model building energy code or standard 

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1 sult in a model building energy code that meets 

2 the targets and with supporting evidence, tak3 ing into consideration— 

4 ‘‘(i) whether the modified code is tech5 nically feasible and life-cycle cost effective; 

6 ‘‘(ii) available appliances, technologies, 

7 materials, and construction practices; and 

8 ‘‘(iii) the economic considerations 

9 under subsection (b)(4). 

10 ‘‘(B) INCORPORATION OF CHANGES.— 

11 ‘‘(i) IN GENERAL.—On receipt of the 

12 proposed changes, the model building en13 ergy code or standard developer shall have 

14 an additional 270 days to accept or reject 

15 the proposed changes of the Secretary to 

16 the model building energy code or standard 

17 for the Secretary to make a final deter18 mination. 

19 ‘‘(ii) FINAL DETERMINATION.—A 

20 final determination under paragraph (1) 

21 shall be on the modified model building en22 ergy code or standard. 

23 ‘‘(e) ADMINISTRATION.—In carrying out this section, 

24 the Secretary shall— 


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1 ‘‘(1) publish notice of targets and supporting 

2 analysis and determinations under this section in the 

3 Federal Register to provide an explanation of and 

4 the basis for such actions, including any supporting 

5 modeling, data, assumptions, protocols, and cost6 benefit analysis, including return on investment; and 

7 ‘‘(2) provide an opportunity for public comment 

8 on targets and supporting analysis and determina9 tions under this section. 

10 ‘‘(f) VOLUNTARY CODES AND STANDARDS.—Not11 withstanding any other provision of this section, any 

12 model building code or standard established under section 

13 304 shall not be binding on a State, local government, or 

14 Indian tribe as a matter of Federal law.’’. 

15 Subtitle B—Worker Training and 

16 Capacity Building 

17 SEC. 111. BUILDING TRAINING AND ASSESSMENT CENTERS. 

18 (a) IN GENERAL.—The Secretary shall provide 

19 grants to institutions of higher education (as defined in 

20 section 101 of the Higher Education Act of 1965 (20 

21 U.S.C. 1001)) and Tribal Colleges or Universities (as de22 fined in section 316(b) of that Act (20 U.S.C. 1059c(b))) 

23 to establish building training and assessment centers— 


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1 (1) to identify opportunities for optimizing en2 ergy efficiency and environmental performance in 

3 buildings; 

4 (2) to promote the application of emerging con5 cepts and technologies in commercial and institu6 tional buildings; 

7 (3) to train engineers, architects, building sci8 entists, building energy permitting and enforcement 

9 officials, and building technicians in energy-efficient 

10 design and operation; 

11 (4) to assist institutions of higher education 

12 and Tribal Colleges or Universities in training build13 ing technicians; 

14 (5) to promote research and development for 

15 the use of alternative energy sources and distributed 

16 generation to supply heat and power for buildings, 

17 particularly energy-intensive buildings; and 

18 (6) to coordinate with and assist State-accred19 ited technical training centers, community colleges, 

20 Tribal Colleges or Universities, and local offices of 

21 the National Institute of Food and Agriculture and 

22 ensure appropriate services are provided under this 

23 section to each region of the United States. 

24 (b) COORDINATION AND NONDUPLICATION.— 


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1 (1) IN GENERAL.—The Secretary shall coordi2 nate the program with the industrial research and 

3 assessment centers program and with other Federal 

4 programs to avoid duplication of effort. 

5 (2) COLLOCATION.—To the maximum extent 

6 practicable, building, training, and assessment cen7 ters established under this section shall be collocated 

8 with Industrial Assessment Centers. 

9 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

10 authorized to be appropriated to carry out this section 

11 $10,000,000, to remain available until expended. 

12 SEC. 112. CAREER SKILLS TRAINING. 

13 (a) IN GENERAL.—The Secretary shall pay grants to 

14 eligible entities described in subsection (b) to pay the Fed15 eral share of associated career skills training programs 

16 under which students concurrently receive classroom in17 struction and on-the-job training for the purpose of ob18 taining an industry-related certification to install energy 

19 efficient buildings technologies, including technologies de20 scribed in section 307(b)(3) of the Energy Conservation 

21 and Production Act (42 U.S.C. 6836(b)(3)). 

22 (b) ELIGIBILITY.—To be eligible to obtain a grant 

23 under subsection (a), an entity shall be a nonprofit part24 nership described in section 171(e)(2)(B)(ii) of the WorkVerDate Sep 11 2014 04:34 Mar 16, 2017 Jkt 069200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H1443.IH H1443

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1 force Investment Act of 1998 (29 U.S.C. 

2 2916(e)(2)(B)(ii)). 

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

4 of carrying out a career skills training program described 

5 in subsection (a) shall be 50 percent. 

6 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

7 authorized to be appropriated to carry out this section 

8 $10,000,000, to remain available until expended. 

9 Subtitle C—School Buildings 

10 SEC. 121. COORDINATION OF ENERGY RETROFITTING AS11 SISTANCE FOR SCHOOLS. 

12 (a) DEFINITION OF SCHOOL.—In this section, the 

13 term ‘‘school’’ means— 

14 (1) an elementary school or secondary school 

15 (as defined in section 8101 of the Elementary and 

16 Secondary Education Act of 1965 (20 U.S.C. 

17 7801)); 

18 (2) an institution of higher education (as de19 fined in section 102(a) of the Higher Education Act 

20 of 1965 (20 U.S.C. 1002(a))); 

21 (3) a school of the defense dependents’ edu22 cation system under the Defense Dependents’ Edu23 cation Act of 1978 (20 U.S.C. 921 et seq.) or estab24 lished under section 2164 of title 10, United States 

25 Code; 


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1 (4) a school operated by the Bureau of Indian 

2 Affairs; 

3 (5) a tribally controlled school (as defined in 

4 section 5212 of the Tribally Controlled Schools Act 

5 of 1988 (25 U.S.C. 2511)); and 

6 (6) a Tribal College or University (as defined in 

7 section 316(b) of the Higher Education Act of 1965 

8 (20 U.S.C. 1059c(b))). 

9 (b) DESIGNATION OF LEAD AGENCY.—The Sec10 retary, acting through the Office of Energy Efficiency and 

11 Renewable Energy, shall act as the lead Federal agency 

12 for coordinating and disseminating information on exist13 ing Federal programs and assistance that may be used 

14 to help initiate, develop, and finance energy efficiency, re15 newable energy, and energy retrofitting projects for 

16 schools. 

17 (c) REQUIREMENTS.—In carrying out coordination 

18 and outreach under subsection (b), the Secretary shall— 

19 (1) in consultation and coordination with the 

20 appropriate Federal agencies, carry out a review of 

21 existing programs and financing mechanisms (in22 cluding revolving loan funds and loan guarantees) 

23 available in or from the Department of Agriculture, 

24 the Department of Energy, the Department of Edu25 cation, the Department of the Treasury, the Internal 


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1 Revenue Service, the Environmental Protection 

2 Agency, and other appropriate Federal agencies with 

3 jurisdiction over energy financing and facilitation 

4 that are currently used or may be used to help ini5 tiate, develop, and finance energy efficiency, renew6 able energy, and energy retrofitting projects for 

7 schools; 

8 (2) establish a Federal cross-departmental col9 laborative coordination, education, and outreach ef10 fort to streamline communication and promote avail11 able Federal opportunities and assistance described 

12 in paragraph (1), for energy efficiency, renewable 

13 energy, and energy retrofitting projects that enables 

14 States, local educational agencies, and schools— 

15 (A) to use existing Federal opportunities 

16 more effectively; and 

17 (B) to form partnerships with Governors, 

18 State energy programs, local educational, finan19 cial, and energy officials, State and local gov20 ernment officials, nonprofit organizations, and 

21 other appropriate entities, to support the initi22 ation of the projects; 

23 (3) provide technical assistance for States, local 

24 educational agencies, and schools to help develop 


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1 and finance energy efficiency, renewable energy, and 

2 energy retrofitting projects— 

3 (A) to increase the energy efficiency of 

4 buildings or facilities; 

5 (B) to install systems that individually 

6 generate energy from renewable energy re7 sources; 

8 (C) to establish partnerships to leverage 

9 economies of scale and additional financing 

10 mechanisms available to larger clean energy ini11 tiatives; or 

12 (D) to promote— 

13 (i) the maintenance of health, environ14 mental quality, and safety in schools, in15 cluding the ambient air quality, through 

16 energy efficiency, renewable energy, and 

17 energy retrofit projects; and 

18 (ii) the achievement of expected en19 ergy savings and renewable energy produc20 tion through proper operations and main21 tenance practices; 

22 (4) develop and maintain a single online re23 source website with contact information for relevant 

24 technical assistance and support staff in the Office 

25 of Energy Efficiency and Renewable Energy for 


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1 States, local educational agencies, and schools to ef2 fectively access and use Federal opportunities and 

3 assistance described in paragraph (1) to develop en4 ergy efficiency, renewable energy, and energy retro5 fitting projects; and 

6 (5) establish a process for recognition of schools 

7 that— 

8 (A) have successfully implemented energy 

9 efficiency, renewable energy, and energy retro10 fitting projects; and 

11 (B) are willing to serve as resources for 

12 other local educational agencies and schools to 

13 assist initiation of similar efforts. 

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

15 of enactment of this Act, the Secretary shall submit to 

16 Congress a report describing the implementation of this 

17 section. 

18 TITLE II—INDUSTRIAL EFFI19 CIENCY AND COMPETITIVE20 NESS 

21 Subtitle A—Manufacturing Energy 

22 Efficiency 

23 SEC. 201. PURPOSES. 

24 The purposes of this subtitle are— 


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1 (1) to reform and reorient the industrial effi2 ciency programs of the Department of Energy; 

3 (2) to establish a clear and consistent authority 

4 for industrial efficiency programs of the Depart5 ment; 

6 (3) to accelerate the deployment of technologies 

7 and practices that will increase industrial energy ef8 ficiency and improve productivity; 

9 (4) to accelerate the development and dem10 onstration of technologies that will assist the deploy11 ment goals of the industrial efficiency programs of 

12 the Department and increase manufacturing effi13 ciency; 

14 (5) to stimulate domestic economic growth and 

15 improve industrial productivity and competitiveness; 

16 and 

17 (6) to strengthen partnerships between Federal 

18 and State governmental agencies and the private 

19 and academic sectors. 

20 SEC. 202. FUTURE OF INDUSTRY PROGRAM. 

21 (a) IN GENERAL.—Section 452 of the Energy Inde22 pendence and Security Act of 2007 (42 U.S.C. 17111) is 

23 amended by striking the section heading and inserting the 

24 following: ‘‘FUTURE OF INDUSTRY PROGRAM’’. 


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1 (b) DEFINITION OF ENERGY SERVICE PROVIDER.— 

2 Section 452(a) of the Energy Independence and Security 

3 Act of 2007 (42 U.S.C. 17111(a)) is amended— 

4 (1) by redesignating paragraphs (3) through 

5 (5) as paragraphs (4) through (6), respectively; and 

6 (2) by inserting after paragraph (2): 

7 ‘‘(3) ENERGY SERVICE PROVIDER.—The term 

8 ‘energy service provider’ means any business pro9 viding technology or services to improve the energy 

10 efficiency, water efficiency, power factor, or load 

11 management of a manufacturing site or other indus12 trial process in an energy-intensive industry, or any 

13 utility operating under a utility energy service 

14 project.’’. 

15 (c) INDUSTRIAL RESEARCH AND ASSESSMENT CEN16 TERS.—Section 452(e) of the Energy Independence and 

17 Security Act of 2007 (42 U.S.C. 17111(e)) is amended— 

18 (1) by redesignating paragraphs (1) through 

19 (5) as subparagraphs (A) through (E), respectively, 

20 and indenting appropriately; 

21 (2) by striking ‘‘The Secretary’’ and inserting 

22 the following: 

23 ‘‘(1) IN GENERAL.—The Secretary’’; 

24 (3) in subparagraph (A) (as redesignated by 

25 paragraph (1)), by inserting before the semicolon at 


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1 the end the following: ‘‘, including assessments of 

2 sustainable manufacturing goals and the implemen3 tation of information technology advancements for 

4 supply chain analysis, logistics, system monitoring, 

5 industrial and manufacturing processes, and other 

6 purposes’’; and 

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

8 ‘‘(2) COORDINATION.— 

9 ‘‘(A) IN GENERAL.—To increase the value 

10 and capabilities of the industrial research and 

11 assessment centers, the centers shall— 

12 ‘‘(i) coordinate with Manufacturing 

13 Extension Partnership Centers of the Na14 tional Institute of Standards and Tech15 nology; 

16 ‘‘(ii) coordinate with the Building 

17 Technologies Program of the Department 

18 of Energy to provide building assessment 

19 services to manufacturers; 

20 ‘‘(iii) increase partnerships with the 

21 National Laboratories of the Department 

22 of Energy to leverage the expertise and 

23 technologies of the National Laboratories 

24 for national industrial and manufacturing 

25 needs; 


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1 ‘‘(iv) increase partnerships with en2 ergy service providers and technology pro3 viders to leverage private sector expertise 

4 and accelerate deployment of new and ex5 isting technologies and processes for en6 ergy efficiency, power factor, and load 

7 management; 

8 ‘‘(v) identify opportunities for reduc9 ing greenhouse gas emissions; and 

10 ‘‘(vi) promote sustainable manufac11 turing practices for small- and medium12 sized manufacturers. 

13 ‘‘(3) OUTREACH.—The Secretary shall provide 

14 funding for— 

15 ‘‘(A) outreach activities by the industrial 

16 research and assessment centers to inform 

17 small- and medium-sized manufacturers of the 

18 information, technologies, and services avail19 able; and 

20 ‘‘(B) coordination activities by each indus21 trial research and assessment center to leverage 

22 efforts with— 

23 ‘‘(i) Federal and State efforts; 

24 ‘‘(ii) the efforts of utilities and energy 

25 service providers; 


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1 ‘‘(iii) the efforts of regional energy ef2 ficiency organizations; and 

3 ‘‘(iv) the efforts of other industrial re4 search and assessment centers. 

5 ‘‘(4) WORKFORCE TRAINING.— 

6 ‘‘(A) IN GENERAL.—The Secretary shall 

7 pay the Federal share of associated internship 

8 programs under which students work with or 

9 for industries, manufacturers, and energy serv10 ice providers to implement the recommendations 

11 of industrial research and assessment centers. 

12 ‘‘(B) FEDERAL SHARE.—The Federal 

13 share of the cost of carrying out internship pro14 grams described in subparagraph (A) shall be 

15 50 percent. 

16 ‘‘(5) SMALL BUSINESS LOANS.—The Adminis17 trator of the Small Business Administration shall, to 

18 the maximum extent practicable, expedite consider19 ation of applications from eligible small business 

20 concerns for loans under the Small Business Act (15 

21 U.S.C. 631 et seq.) to implement recommendations 

22 of industrial research and assessment centers estab23 lished under paragraph (1). 

24 ‘‘(6) ADVANCED MANUFACTURING STEERING

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1 sory steering committee to provide recommendations 

2 to the Secretary on planning and implementation of 

3 the Advanced Manufacturing Office of the Depart4 ment of Energy.’’. 

5 SEC. 203. SUSTAINABLE MANUFACTURING INITIATIVE. 

6 (a) IN GENERAL.—Part E of title III of the Energy 

7 Policy and Conservation Act (42 U.S.C. 6341) is amended 

8 by adding at the end the following: 

9 ‘‘SEC. 376. SUSTAINABLE MANUFACTURING INITIATIVE. 

10 ‘‘(a) IN GENERAL.—As part of the Office of Energy 

11 Efficiency and Renewable Energy, the Secretary, on the 

12 request of a manufacturer, shall conduct onsite technical 

13 assessments to identify opportunities for— 

14 ‘‘(1) maximizing the energy efficiency of indus15 trial processes and cross-cutting systems; 

16 ‘‘(2) preventing pollution and minimizing waste; 

17 ‘‘(3) improving efficient use of water in manu18 facturing processes; 

19 ‘‘(4) conserving natural resources; and 

20 ‘‘(5) achieving such other goals as the Secretary 

21 determines to be appropriate. 

22 ‘‘(b) COORDINATION.—The Secretary shall carry out 

23 the initiative in coordination with the private sector and 

24 appropriate agencies, including the National Institute of 

25 Standards and Technology, to accelerate adoption of new 


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1 and existing technologies and processes that improve en2 ergy efficiency. 

3 ‘‘(c) RESEARCH AND DEVELOPMENT PROGRAM FOR

4 SUSTAINABLE MANUFACTURING AND INDUSTRIAL TECH5 NOLOGIES AND PROCESSES.—As part of the industrial ef6 ficiency programs of the Department of Energy, the Sec7 retary shall carry out a joint industry-government partner8 ship program to research, develop, and demonstrate new 

9 sustainable manufacturing and industrial technologies and 

10 processes that maximize the energy efficiency of industrial 

11 plants, reduce pollution, and conserve natural resources.’’. 

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

13 the Energy Policy and Conservation Act (42 U.S.C. prec. 

14 6201) is amended by adding at the end of the items relat15 ing to part E of title III the following: 

‘‘Sec. 376. Sustainable manufacturing initiative.’’. 

16 SEC. 204. CONFORMING AMENDMENTS. 

17 (a) Section 106 of the Energy Policy Act of 2005 (42 

18 U.S.C. 15811) is repealed. 

19 (b) Sections 131, 132, 133, 2103, and 2107 of the 

20 Energy Policy Act of 1992 (42 U.S.C. 6348, 6349, 6350, 

21 13453, 13456) are repealed. 

22 (c) Section 2101(a) of the Energy Policy Act of 1992 

23 (42 U.S.C. 13451(a)) is amended in the third sentence 

24 by striking ‘‘sections 2102, 2103, 2104, 2105, 2106, 

25 2107, and 2108’’ and inserting ‘‘sections 2102, 2104, 


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1 2105, 2106, and 2108 of this Act and section 376 of the 

2 Energy Policy and Conservation Act,’’. 

3 Subtitle B—Supply Star 

4 SEC. 211. SUPPLY STAR. 

5 The Energy Policy and Conservation Act is amended 

6 by inserting after section 324A (42 U.S.C. 6294a) the fol7 lowing: 

8 ‘‘SEC. 324B. SUPPLY STAR PROGRAM. 

9 ‘‘(a) IN GENERAL.—There is established within the 

10 Department of Energy a Supply Star program to identify 

11 and promote practices, recognize companies, and, as ap12 propriate, recognize products that use highly efficient sup13 ply chains in a manner that conserves energy, water, and 

14 other resources. 

15 ‘‘(b) COORDINATION.—In carrying out the program 

16 described in subsection (a), the Secretary shall— 

17 ‘‘(1) consult with other appropriate agencies; 

18 and 

19 ‘‘(2) coordinate efforts with the Energy Star 

20 program established under section 324A. 

21 ‘‘(c) DUTIES.—In carrying out the Supply Star pro22 gram described in subsection (a), the Secretary shall— 

23 ‘‘(1) promote practices, recognize companies, 

24 and, as appropriate, recognize products that comply 

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1 tices, companies, and products in the marketplace 

2 for maximizing supply chain efficiency; 

3 ‘‘(2) work to enhance industry and public 

4 awareness of the Supply Star program; 

5 ‘‘(3) collect and disseminate data on supply 

6 chain energy resource consumption; 

7 ‘‘(4) develop and disseminate metrics, proc8 esses, and analytical tools (including software) for 

9 evaluating supply chain energy resource use; 

10 ‘‘(5) develop guidance at the sector level for im11 proving supply chain efficiency; 

12 ‘‘(6) work with domestic and international orga13 nizations to harmonize approaches to analyzing sup14 ply chain efficiency, including the development of a 

15 consistent set of tools, templates, calculators, and 

16 databases; and 

17 ‘‘(7) work with industry, including small busi18 nesses, to improve supply chain efficiency through 

19 activities that include— 

20 ‘‘(A) developing and sharing best practices; 

21 and 

22 ‘‘(B) providing opportunities to benchmark 

23 supply chain efficiency. 

24 ‘‘(d) EVALUATION.—In any evaluation of supply 

25 chain efficiency carried out by the Secretary with respect 


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1 to a specific product, the Secretary shall consider energy 

2 consumption and resource use throughout the entire 

3 lifecycle of a product, including production, transport, 

4 packaging, use, and disposal. 

5 ‘‘(e) GRANTS AND INCENTIVES.— 

6 ‘‘(1) IN GENERAL.—The Secretary may award 

7 grants or other forms of incentives on a competitive 

8 basis to eligible entities, as determined by the Sec9 retary, for the purposes of— 

10 ‘‘(A) studying supply chain energy resource 

11 efficiency; and 

12 ‘‘(B) demonstrating and achieving reduc13 tions in the energy resource consumption of 

14 commercial products through changes and im15 provements to the production supply and dis16 tribution chain of the products. 

17 ‘‘(2) USE OF INFORMATION.—Any information 

18 or data generated as a result of the grants or incen19 tives described in paragraph (1) shall be used to in20 form the development of the Supply Star Program. 

21 ‘‘(f) TRAINING.—The Secretary shall use funds to 

22 support professional training programs to develop and 

23 communicate methods, practices, and tools for improving 

24 supply chain efficiency. 


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1 ‘‘(g) EFFECT OF OUTSOURCING OF AMERICAN

2 JOBS.—For purposes of this section, the outsourcing of 

3 American jobs in the production of a product shall not 

4 count as a positive factor in determining supply chain effi5 ciency. 

6 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 

7 is authorized to be appropriated to carry out this section 

8 $10,000,000 for the period of fiscal years 2018 through 

9 2027.’’. 

10 Subtitle C—Extended Product 

11 System Rebate Program 

12 SEC. 221. EXTENDED PRODUCT SYSTEM REBATE PROGRAM. 

13 (a) DEFINITIONS.—In this section: 

14 (1) ELECTRIC MOTOR.—The term ‘‘electric 

15 motor’’ has the meaning given the term in section 

16 431.12 of title 10, Code of Federal Regulations (as 

17 in effect on the date of enactment of this Act). 

18 (2) ELECTRONIC CONTROL.—The term ‘‘elec19 tronic control’’ means— 

20 (A) a power converter; or 

21 (B) a combination of a power circuit and 

22 control circuit included on 1 chassis. 

23 (3) EXTENDED PRODUCT SYSTEM.—The term 

24 ‘‘extended product system’’ means an electric motor 


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1 and any required associated electronic control and 

2 driven load that— 

3 (A) offers variable speed or multispeed op4 eration; 

5 (B) offers partial load control that reduces 

6 input energy requirements (as measured in kilo7 watt-hours) as compared to identified base lev8 els set by the Secretary; and 

9 (C)(i) has greater than 1 horsepower; and 

10 (ii) uses an extended product system tech11 nology, as determined by the Secretary. 

12 (4) QUALIFIED EXTENDED PRODUCT SYS13 TEM.— 

14 (A) IN GENERAL.—The term ‘‘qualified ex15 tended product system’’ means an extended 

16 product system that— 

17 (i) includes an electric motor and an 

18 electronic control; and 

19 (ii) reduces the input energy (as 

20 measured in kilowatt-hours) required to 

21 operate the extended product system by 

22 not less than 5 percent, as compared to 

23 identified base levels set by the Secretary. 


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1 (B) INCLUSIONS.—The term ‘‘qualified ex2 tended product system’’ includes commercial or 

3 industrial machinery or equipment that— 

4 (i)(I) did not previously make use of 

5 the extended product system prior to the 

6 redesign described in subclause (II); and 

7 (II) incorporates an extended product 

8 system that has greater than 1 horsepower 

9 into redesigned machinery or equipment; 

10 and 

11 (ii) was previously used prior to, and 

12 was placed back into service during, cal13 endar year 2019 or 2020. 

14 (b) ESTABLISHMENT.—Not later than 180 days after 

15 the date of enactment of this Act, the Secretary shall es16 tablish a program to provide rebates for expenditures 

17 made by qualified entities for the purchase or installation 

18 of a qualified extended product system. 

19 (c) QUALIFIED ENTITIES.— 

20 (1) ELIGIBILITY REQUIREMENTS.—A qualified 

21 entity under this section shall be— 

22 (A) in the case of a qualified extended 

23 product system described in subsection 

24 (a)(4)(A), the purchaser of the qualified ex25 tended product that is installed; and 


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1 (B) in the case of a qualified extended 

2 product system described in subsection 

3 (a)(4)(B), the manufacturer of the commercial 

4 or industrial machinery or equipment that in5 corporated the extended product system into 

6 that machinery or equipment. 

7 (2) APPLICATION.—To be eligible to receive a 

8 rebate under this section, a qualified entity shall 

9 submit to the Secretary— 

10 (A) an application in such form, at such 

11 time, and containing such information as the 

12 Secretary may require; and 

13 (B) a certification that includes dem14 onstrated evidence— 

15 (i) that the entity is a qualified entity; 

16 and 

17 (ii)(I) in the case of a qualified entity 

18 described in paragraph (1)(A)— 

19 (aa) that the qualified entity in20 stalled the qualified extended product 

21 system during the 2 fiscal years fol22 lowing the date of enactment of this 

23 Act; 


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1 (bb) that the qualified extended 

2 product system meets the require3 ments of subsection (a)(4)(A); and 

4 (cc) showing the serial number, 

5 manufacturer, and model number 

6 from the nameplate of the installed 

7 motor of the qualified entity on which 

8 the qualified extended product system 

9 was installed; or 

10 (II) in the case of a qualified entity 

11 described in paragraph (1)(B), dem12 onstrated evidence— 

13 (aa) that the qualified extended 

14 product system meets the require15 ments of subsection (a)(4)(B); and 

16 (bb) showing the serial number, 

17 manufacturer, and model number 

18 from the nameplate of the installed 

19 motor of the qualified entity with 

20 which the extended product system is 

21 integrated. 

22 (d) AUTHORIZED AMOUNT OF REBATE.— 

23 (1) IN GENERAL.—The Secretary may provide 

24 to a qualified entity a rebate in an amount equal to 

25 the product obtained by multiplying— 


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1 (A) an amount equal to the sum of the 

2 nameplate rated horsepower of— 

3 (i) the electric motor to which the 

4 qualified extended product system is at5 tached; and 

6 (ii) the electronic control; and 

7 (B) $25. 

8 (2) MAXIMUM AGGREGATE AMOUNT.—A quali9 fied entity shall not be entitled to aggregate rebates 

10 under this section in excess of $25,000 per calendar 

11 year. 

12 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

13 authorized to be appropriated to carry out this section 

14 $5,000,000 for each of the first 2 full fiscal years following 

15 the date of enactment of this Act, to remain available until 

16 expended. 

17 Subtitle D—Transformer Rebate 

18 Program 

19 SEC. 231. ENERGY EFFICIENT TRANSFORMER REBATE PRO20 GRAM. 

21 (a) DEFINITIONS.—In this section: 

22 (1) QUALIFIED ENERGY EFFICIENT TRANS23 FORMER.—The term ‘‘qualified energy efficient 

24 transformer’’ means a transformer that meets or ex25 ceeds the applicable energy conservation standards 


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1 described in the tables in subsection (b)(2) and 

2 paragraphs (1) and (2) of subsection (c) of section 

3 431.196 of title 10, Code of Federal Regulations (as 

4 in effect on the date of enactment of this Act). 

5 (2) QUALIFIED ENERGY INEFFICIENT TRANS6 FORMER.—The term ‘‘qualified energy inefficient 

7 transformer’’ means a transformer with an equal 

8 number of phases and capacity to a transformer de9 scribed in any of the tables in subsection (b)(2) and 

10 paragraphs (1) and (2) of subsection (c) of section 

11 431.196 of title 10, Code of Federal Regulations (as 

12 in effect on the date of enactment of this Act) 

13 that— 

14 (A) does not meet or exceed the applicable 

15 energy conservation standards described in 

16 paragraph (1); and 

17 (B)(i) was manufactured between January 

18 1, 1985, and December 31, 2006, for a trans19 former with an equal number of phases and ca20 pacity as a transformer described in the table 

21 in subsection (b)(2) of section 431.196 of title 

22 10, Code of Federal Regulations (as in effect on 

23 the date of enactment of this Act); or 

24 (ii) was manufactured between January 1, 

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1 former with an equal number of phases and ca2 pacity as a transformer described in the table 

3 in paragraph (1) or (2) of subsection (c) of that 

4 section (as in effect on the date of enactment 

5 of this Act). 

6 (3) QUALIFIED ENTITY.—The term ‘‘qualified 

7 entity’’ means an owner of industrial or manufac8 turing facilities, commercial buildings, or multifamily 

9 residential buildings, a utility, or an energy service 

10 company that fulfills the requirements of subsection 

11 (d). 

12 (b) ESTABLISHMENT.—Not later than 90 days after 

13 the date of enactment of this Act, the Secretary shall es14 tablish a program to provide rebates to qualified entities 

15 for expenditures made by the qualified entity for the re16 placement of a qualified energy inefficient transformer 

17 with a qualified energy efficient transformer. 

18 (c) REQUIREMENTS.—To be eligible to receive a re19 bate under this section, an entity shall submit to the Sec20 retary an application in such form, at such time, and con21 taining such information as the Secretary may require, in22 cluding demonstrated evidence— 

23 (1) that the entity purchased a qualified energy 

24 efficient transformer; 


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1 (2) of the core loss value of the qualified energy 

2 efficient transformer; 

3 (3) of the age of the qualified energy inefficient 

4 transformer being replaced; 

5 (4) of the core loss value of the qualified energy 

6 inefficient transformer being replaced— 

7 (A) as measured by a qualified professional 

8 or verified by the equipment manufacturer, as 

9 applicable; or 

10 (B) for transformers described in sub11 section (a)(2)(B)(i), as selected from a table of 

12 default values as determined by the Secretary 

13 in consultation with applicable industry; and 

14 (5) that the qualified energy inefficient trans15 former has been permanently decommissioned and 

16 scrapped. 

17 (d) AUTHORIZED AMOUNT OF REBATE.—The 

18 amount of a rebate provided under this section shall be— 

19 (1) for a 3-phase or single-phase transformer 

20 with a capacity of not less than 10 and not greater 

21 than 2,500 kilovolt-amperes, twice the amount equal 

22 to the difference in Watts between the core loss 

23 value (as measured in accordance with paragraphs 

24 (2) and (4) of subsection (c)) of— 


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1 (A) the qualified energy inefficient trans2 former; and 

3 (B) the qualified energy efficient trans4 former; or 

5 (2) for a transformer described in subsection 

6 (a)(2)(B)(i), the amount determined using a table of 

7 default rebate values by rated transformer output, 

8 as measured in kilovolt-amperes, as determined by 

9 the Secretary in consultation with applicable indus10 try. 

11 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

12 authorized to be appropriated to carry out this section 

13 $5,000,000 for each of fiscal years 2018 and 2019, to re14 main available until expended. 

15 (f) TERMINATION OF EFFECTIVENESS.—The author16 ity provided by this section terminates on December 31, 

17 2019. 

18 TITLE III—FEDERAL AGENCY 

19 ENERGY EFFICIENCY 

20 SEC. 301. ENERGY-EFFICIENT AND ENERGY-SAVING INFOR21 MATION TECHNOLOGIES. 

22 Section 543 of the National Energy Conservation 

23 Policy Act (42 U.S.C. 8253) is amended— 


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1 (1) by redesignating the second subsection (f) 

2 (relating to large capital energy investments) as sub3 section (g); and 

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

5 ‘‘(h) FEDERAL IMPLEMENTATION STRATEGY FOR

6 ENERGY-EFFICIENT AND ENERGY-SAVING INFORMATION

7 TECHNOLOGIES.— 

8 ‘‘(1) DEFINITIONS.—In this subsection: 

9 ‘‘(A) DIRECTOR.—The term ‘Director’ 

10 means the Director of the Office of Manage11 ment and Budget. 

12 ‘‘(B) INFORMATION TECHNOLOGY.—The 

13 term ‘information technology’ has the meaning 

14 given the term in section 11101 of title 40, 

15 United States Code. 

16 ‘‘(2) DEVELOPMENT OF IMPLEMENTATION

17 STRATEGY.—Not later than 1 year after the date of 

18 enactment of this subsection, each Federal agency 

19 shall collaborate with the Director to develop an im20 plementation strategy (including best-practices and 

21 measurement and verification techniques) for the 

22 maintenance, purchase, and use by the Federal 

23 agency of energy-efficient and energy-saving infor24 mation technologies. 


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1 ‘‘(3) ADMINISTRATION.—In developing an im2 plementation strategy, each Federal agency shall 

3 consider— 

4 ‘‘(A) advanced metering infrastructure; 

5 ‘‘(B) energy efficient data center strategies 

6 and methods of increasing asset and infrastruc7 ture utilization; 

8 ‘‘(C) advanced power management tools; 

9 ‘‘(D) building information modeling, in10 cluding building energy management; and 

11 ‘‘(E) secure telework and travel substi12 tution tools. 

13 ‘‘(4) PERFORMANCE GOALS.— 

14 ‘‘(A) IN GENERAL.—Not later than Sep15 tember 30, 2017, the Director, in consultation 

16 with the Secretary, shall establish performance 

17 goals for evaluating the efforts of Federal agen18 cies in improving the maintenance, purchase, 

19 and use of energy-efficient and energy-saving 

20 information technology systems. 

21 ‘‘(B) BEST PRACTICES.—The Chief Infor22 mation Officers Council established under sec23 tion 3603 of title 44, United States Code, shall 

24 supplement the performance goals established 

25 under this paragraph with recommendations on 


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1 best practices for the attainment of the per2 formance goals, to include a requirement for 

3 agencies to consider the use of— 

4 ‘‘(i) energy savings performance con5 tracting; and 

6 ‘‘(ii) utility energy services con7 tracting. 

8 ‘‘(5) REPORTS.— 

9 ‘‘(A) AGENCY REPORTS.—Each Federal 

10 agency subject to the requirements of this sub11 section shall include in the report of the agency 

12 under section 527 of the Energy Independence 

13 and Security Act of 2007 (42 U.S.C. 17143) a 

14 description of the efforts and results of the 

15 agency under this subsection. 

16 ‘‘(B) OMB GOVERNMENT EFFICIENCY RE17 PORTS AND SCORECARDS.—Effective beginning 

18 not later than October 1, 2017, the Director 

19 shall include in the annual report and scorecard 

20 of the Director required under section 528 of 

21 the Energy Independence and Security Act of 

22 2007 (42 U.S.C. 17144) a description of the ef23 forts and results of Federal agencies under this 

24 subsection. 


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1 ‘‘(C) USE OF EXISTING REPORTING STRUC2 TURES.—The Director may require Federal 

3 agencies to submit any information required to 

4 be submitted under this subsection though re5 porting structures in use as of the date of en6 actment of the Energy Savings and Industrial 

7 Competitiveness Act.’’. 

8 SEC. 302. ENERGY EFFICIENT DATA CENTERS. 

9 Section 453 of the Energy Independence and Security 

10 Act of 2007 (42 U.S.C. 17112) is amended— 

11 (1) in subsection (b)— 

12 (A) in paragraph (2)(D)(iv), by striking 

13 ‘‘the organization’’ and inserting ‘‘an organiza14 tion’’; and 

15 (B) by striking paragraph (3); and 

16 (2) by striking subsections (c) through (g) and 

17 inserting the following: 

18 ‘‘(c) STAKEHOLDER INVOLVEMENT.— 

19 ‘‘(1) IN GENERAL.—The Secretary and the Ad20 ministrator shall carry out subsection (b) in con21 sultation with the information technology industry 

22 and other key stakeholders, with the goal of pro23 ducing results that accurately reflect the best knowl24 edge in the most pertinent domains. 


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1 ‘‘(2) CONSIDERATIONS.—In carrying out con2 sultation described in paragraph (1), the Secretary 

3 and the Administrator shall pay particular attention 

4 to organizations that— 

5 ‘‘(A) have members with expertise in en6 ergy efficiency and in the development, oper7 ation, and functionality of data centers, infor8 mation technology equipment, and software, in9 cluding representatives of hardware manufac10 turers, data center operators, and facility man11 agers; 

12 ‘‘(B) obtain and address input from the 

13 National Laboratories (as that term is defined 

14 in section 2 of the Energy Policy Act of 2005 

15 (42 U.S.C. 15801)) or any institution of higher 

16 education, research institution, industry asso17 ciation, company, or public interest group with 

18 applicable expertise; 

19 ‘‘(C) follow— 

20 ‘‘(i) commonly accepted procedures 

21 for the development of specifications; and 

22 ‘‘(ii) accredited standards development 

23 processes; or 


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1 ‘‘(D) have a mission to promote energy ef2 ficiency for data centers and information tech3 nology. 

4 ‘‘(d) MEASUREMENTS AND SPECIFICATIONS.—The 

5 Secretary and the Administrator shall consider and assess 

6 the adequacy of the specifications, measurements, and 

7 benchmarks described in subsection (b) for use by the 

8 Federal Energy Management Program, the Energy Star 

9 Program, and other efficiency programs of the Depart10 ment of Energy or the Environmental Protection Agency. 

11 ‘‘(e) STUDY.—The Secretary, in consultation with the 

12 Administrator, not later than 18 months after the date 

13 of enactment of the Energy Savings and Industrial Com14 petitiveness Act, shall make available to the public an up15 date to the report submitted to Congress pursuant to sec16 tion 1 of the Act of December 20, 2006 (Public Law 109– 

17 431; 120 Stat. 2920), entitled ‘Report to Congress on 

18 Server and Data Center Energy Efficiency’ and dated Au19 gust 2, 2007, that provides— 

20 ‘‘(1) a comparison and gap analysis of the esti21 mates and projections contained in the original re22 port with new data regarding the period from 2007 

23 through 2016; 


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1 ‘‘(2) an analysis considering the impact of in2 formation technologies, including virtualization and 

3 cloud computing, in the public and private sectors; 

4 ‘‘(3) an evaluation of the impact of the com5 bination of cloud platforms, mobile devices, social 

6 media, and big data on data center energy usage; 

7 and 

8 ‘‘(4) updated projections and recommendations 

9 for best practices through fiscal year 2022. 

10 ‘‘(f) DATA CENTER ENERGY PRACTITIONER PRO11 GRAM.— 

12 ‘‘(1) IN GENERAL.—The Secretary, in consulta13 tion with key stakeholders and the Director of the 

14 Office of Management and Budget, shall maintain a 

15 data center energy practitioner program that pro16 vides for the certification of energy practitioners 

17 qualified to evaluate the energy usage and efficiency 

18 opportunities in Federal data centers. 

19 ‘‘(2) EVALUATIONS.—Each Federal agency 

20 shall consider having the data centers of the agency 

21 evaluated once every 4 years by energy practitioners 

22 certified pursuant to the program, whenever prac23 ticable using certified practitioners employed by the 

24 agency. 

25 ‘‘(g) OPEN DATA INITIATIVE.— 


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1 ‘‘(1) IN GENERAL.—The Secretary, in consulta2 tion with key stakeholders and the Director of the 

3 Office of Management and Budget, shall establish 

4 an open data initiative for Federal data center en5 ergy usage data, with the purpose of making the 

6 data available and accessible in a manner that en7 courages further data center innovation, optimiza8 tion, and consolidation. 

9 ‘‘(2) CONSIDERATION.—In establishing the ini10 tiative under paragraph (1), the Secretary shall con11 sider using the online Data Center Maturity Model. 

12 ‘‘(h) INTERNATIONAL SPECIFICATIONS AND

13 METRICS.—The Secretary, in consultation with key stake14 holders, shall actively participate in efforts to harmonize 

15 global specifications and metrics for data center energy 

16 efficiency. 

17 ‘‘(i) DATA CENTER UTILIZATION METRIC.—The Sec18 retary, in collaboration with key stakeholders, shall facili19 tate in the development of an efficiency metric that meas20 ures the energy efficiency of a data center (including 

21 equipment and facilities). 

22 ‘‘(j) PROTECTION OF PROPRIETARY INFORMATION.— 

23 The Secretary and the Administrator shall not disclose 

24 any proprietary information or trade secrets provided by 

25 any individual or company for the purposes of carrying 


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1 out this section or the programs and initiatives established 

2 under this section.’’. 

3 SEC. 303. BUDGET-NEUTRAL DEMONSTRATION PROGRAM 

4 FOR ENERGY AND WATER CONSERVATION IM5 PROVEMENTS AT MULTIFAMILY RESIDEN6 TIAL UNITS. 

7 (a) ESTABLISHMENT.—The Secretary of Housing 

8 and Urban Development (referred to in this section as the 

9 ‘‘Secretary’’) shall establish a demonstration program 

10 under which, during the period beginning on the date of 

11 enactment of this Act, and ending on September 30, 2020, 

12 the Secretary may enter into budget-neutral, performance13 based agreements that result in a reduction in energy or 

14 water costs with such entities as the Secretary determines 

15 to be appropriate under which the entities shall carry out 

16 projects for energy or water conservation improvements at 

17 not more than 20,000 residential units in multifamily 

18 buildings participating in— 

19 (1) the project-based rental assistance program 

20 under section 8 of the United States Housing Act of 

21 1937 (42 U.S.C. 1437f), other than assistance pro22 vided under section 8(o) of that Act; 

23 (2) the supportive housing for the elderly pro24 gram under section 202 of the Housing Act of 1959 

25 (12 U.S.C. 1701q); or 


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1 (3) the supportive housing for persons with dis2 abilities program under section 811(d)(2) of the 

3 Cranston-Gonzalez National Affordable Housing Act 

4 (42 U.S.C. 8013(d)(2)). 

5 (b) REQUIREMENTS.— 

6 (1) PAYMENTS CONTINGENT ON SAVINGS.— 

7 (A) IN GENERAL.—The Secretary shall 

8 provide to an entity a payment under an agree9 ment under this section only during applicable 

10 years for which an energy or water cost savings 

11 is achieved with respect to the applicable multi12 family portfolio of properties, as determined by 

13 the Secretary, in accordance with subparagraph 

14 (B). 

15 (B) PAYMENT METHODOLOGY.— 

16 (i) IN GENERAL.—Each agreement 

17 under this section shall include a pay-for18 success provision— 

19 (I) that will serve as a payment 

20 threshold for the term of the agree21 ment; and 

22 (II) pursuant to which the De23 partment of Housing and Urban De24 velopment shall share a percentage of 

25 the savings at a level determined by 


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1 the Secretary that is sufficient to 

2 cover the administrative costs of car3 rying out this section. 

4 (ii) LIMITATIONS.—A payment made 

5 by the Secretary under an agreement 

6 under this section shall— 

7 (I) be contingent on documented 

8 utility savings; and 

9 (II) not exceed the utility savings 

10 achieved by the date of the payment, 

11 and not previously paid, as a result of 

12 the improvements made under the 

13 agreement. 

14 (C) THIRD-PARTY VERIFICATION.—Savings 

15 payments made by the Secretary under this sec16 tion shall be based on a measurement and 

17 verification protocol that includes at least— 

18 (i) establishment of a weather-normal19 ized and occupancy-normalized utility con20 sumption baseline established preretrofit; 

21 (ii) annual third-party confirmation of 

22 actual utility consumption and cost for 

23 owner-paid utilities; 

24 (iii) annual third-party validation of 

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1 ing the applicable year and vacancy rates 

2 for each unit type; and 

3 (iv) annual third-party determination 

4 of savings to the Secretary. 

5 (2) TERM.—The term of an agreement under 

6 this section shall be not longer than 12 years. 

7 (3) ENTITY ELIGIBILITY.—The Secretary 

8 shall— 

9 (A) establish a competitive process for en10 tering into agreements under this section; and 

11 (B) enter into such agreements only with 

12 entities that demonstrate significant experience 

13 relating to— 

14 (i) financing and operating properties 

15 receiving assistance under a program de16 scribed in subsection (a); 

17 (ii) oversight of energy and water con18 servation programs, including oversight of 

19 contractors; and 

20 (iii) raising capital for energy and 

21 water conservation improvements from 

22 charitable organizations or private inves23 tors. 

24 (4) GEOGRAPHICAL DIVERSITY.—Each agree25 ment entered into under this section shall provide 


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1 for the inclusion of properties with the greatest fea2 sible regional and State variance. 

3 (c) PLAN AND REPORTS.— 

4 (1) PLAN.—Not later than 90 days after the 

5 date of enactment of this Act, the Secretary shall 

6 submit to the Committees on Appropriations of the 

7 House of Representatives and the Senate a detailed 

8 plan for the implementation of this section. 

9 (2) REPORTS.—Not later than 1 year after the 

10 date of enactment of this Act, and annually there11 after, the Secretary shall— 

12 (A) conduct an evaluation of the program 

13 under this section; and 

14 (B) submit to Congress a report describing 

15 each evaluation conducted under subparagraph 

16 (A). 

17 (d) FUNDING.—For each fiscal year during which an 

18 agreement under this section is in effect, the Secretary 

19 may use to carry out this section any funds appropriated 

20 to the Secretary for the renewal of contracts under a pro21 gram described in subsection (a). 


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1 TITLE IV—REGULATORY 

2 PROVISIONS 

3 Subtitle A—Third-Party Certifi4 cation Under Energy Star Pro5 gram 

6 SEC. 401. THIRD-PARTY CERTIFICATION UNDER ENERGY 

7 STAR PROGRAM. 

8 Section 324A of the Energy Policy and Conservation 

9 Act (42 U.S.C. 6294a) is amended by adding at the end 

10 the following: 

11 ‘‘(e) THIRD-PARTY CERTIFICATION.— 

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

13 not later than 180 days after the date of enactment 

14 of this subsection, the Administrator shall revise the 

15 certification requirements for the labeling of con16 sumer, home, and office electronic products for pro17 gram partners that have complied with all require18 ments of the Energy Star program for a period of 

19 at least 18 months. 

20 ‘‘(2) ADMINISTRATION.—In the case of a pro21 gram partner described in paragraph (1), the new 

22 requirements under paragraph (1)— 

23 ‘‘(A) shall not require third-party certifi24 cation for a product to be listed; but 


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1 ‘‘(B) may require that test data and other 

2 product information be submitted to facilitate 

3 product listing and performance verification for 

4 a sample of products. 

5 ‘‘(3) THIRD PARTIES.—Nothing in this sub6 section prevents the Administrator from using third 

7 parties in the course of the administration of the 

8 Energy Star program. 

9 ‘‘(4) TERMINATION.— 

10 ‘‘(A) IN GENERAL.—Subject to subpara11 graph (B), an exemption from third-party cer12 tification provided to a program partner under 

13 paragraph (1) shall terminate if the program 

14 partner is found to have violated program re15 quirements with respect to at least 2 separate 

16 models during a 2-year period. 

17 ‘‘(B) RESUMPTION.—A termination for a 

18 program partner under subparagraph (A) shall 

19 cease if the program partner complies with all 

20 Energy Star program requirements for a period 

21 of at least 3 years.’’. 


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1 Subtitle B—Federal Green 

2 Buildings 

3 SEC. 411. HIGH-PERFORMANCE GREEN FEDERAL BUILD4 INGS. 

5 Section 436(h) of the Energy Independence and Se6 curity Act of 2007 (42 U.S.C. 17092(h)) is amended— 

7 (1) in the subsection heading, by striking ‘‘SYS8 TEM’’ and inserting ‘‘SYSTEMS’’; 

9 (2) by striking paragraph (1) and inserting the 

10 following: 

11 ‘‘(1) IN GENERAL.—Based on an ongoing re12 view, the Federal Director shall identify and shall 

13 provide to the Secretary pursuant to section 

14 305(a)(3)(D) of the Energy Conservation and Pro15 duction Act (42 U.S.C. 6834(a)(3)(D)), a list of 

16 those certification systems that the Director identi17 fies as the most likely to encourage a comprehensive 

18 and environmentally sound approach to certification 

19 of green buildings.’’; and 

20 (3) in paragraph (2)— 

21 (A) in the matter preceding subparagraph 

22 (A), by striking ‘‘system’’ and inserting ‘‘sys23 tems’’; 

24 (B) by striking subparagraph (A) and in25 serting the following: 


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1 ‘‘(A) an ongoing review provided to the 

2 Secretary pursuant to section 305(a)(3)(D) of 

3 the Energy Conservation and Production Act 

4 (42 U.S.C. 6834(a)(3)(D)), which shall— 

5 ‘‘(i) be carried out by the Federal Di6 rector to compare and evaluate standards; 

7 and 

8 ‘‘(ii) allow any developer or adminis9 trator of a rating system or certification 

10 system to be included in the review;’’; 

11 (C) in subparagraph (E)(v), by striking 

12 ‘‘and’’ after the semicolon at the end; 

13 (D) in subparagraph (F), by striking the 

14 period at the end and inserting a semicolon; 

15 and 

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

17 ‘‘(G) a finding that, for all credits address18 ing the sourcing of grown, harvested, or mined 

19 materials, the system rewards the use of prod20 ucts that have obtained certifications of respon21 sible sourcing, such as certifications provided by 

22 the Sustainable Forestry Initiative, the Forest 

23 Stewardship Council, the American Tree Farm 

24 System, or the Programme for the Endorse25 ment of Forest Certification; and 


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1 ‘‘(H) a finding that the system incor2 porates life-cycle assessment as a credit path3 way.’’. 

4 Subtitle C—Energy Performance 

5 Requirement for Federal Buildings 

6 SEC. 421. ENERGY PERFORMANCE REQUIREMENT FOR FED7 ERAL BUILDINGS. 

8 Section 543 of the National Energy Conservation 

9 Policy Act (42 U.S.C. 8253) is amended— 

10 (1) by striking subsection (a) and inserting the 

11 following: 

12 ‘‘(a) ENERGY PERFORMANCE REQUIREMENT FOR

13 FEDERAL BUILDINGS.— 

14 ‘‘(1) REQUIREMENT.—Subject to paragraph 

15 (2), each agency shall apply energy conservation 

16 measures to, and shall improve the design for the 

17 construction of, the Federal buildings of the agency 

18 (including each industrial or laboratory facility) so 

19 that the energy consumption per gross square foot 

20 of the Federal buildings of the agency in fiscal years 

21 2006 through 2017 is reduced, as compared with the 

22 energy consumption per gross square foot of the 

23 Federal buildings of the agency in fiscal year 2003, 

24 by the percentage specified in the following table: 

Percentage 

‘‘Fiscal Year Reduction 

2006 ............................................................................................. 2


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Percentage 

‘‘Fiscal Year Reduction 

2007 ............................................................................................. 4

2008 ............................................................................................. 9

2009 ............................................................................................. 12

2010 ............................................................................................. 15

2011 ............................................................................................. 18

2012 ............................................................................................. 21

2013 ............................................................................................. 24

2014 ............................................................................................. 27

2015 ............................................................................................. 30

2016 ............................................................................................. 33

2017 ............................................................................................. 36. 

1 ‘‘(2) EXCLUSION FOR BUILDINGS WITH ENERGY

2 INTENSIVE ACTIVITIES.— 

3 ‘‘(A) IN GENERAL.—An agency may ex4 clude from the requirements of paragraph (1) 

5 any building (including the associated energy 

6 consumption and gross square footage) in which 

7 energy intensive activities are carried out. 

8 ‘‘(B) REPORTS.—Each agency shall iden9 tify and list in each report made under section 

10 548(a) the buildings designated by the agency 

11 for exclusion under subparagraph (A). 

12 ‘‘(3) REVIEW.—Not later than December 31, 

13 2017, the Secretary shall— 

14 ‘‘(A) review the results of the implementa15 tion of the energy performance requirements es16 tablished under paragraph (1); and 

17 ‘‘(B) based on the review conducted under 

18 subparagraph (A), submit to Congress a report 

19 that addresses the feasibility of requiring each 


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1 agency to apply energy conservation measures 

2 to, and improve the design for the construction 

3 of, the Federal buildings of the agency (includ4 ing each industrial or laboratory facility) so 

5 that the energy consumption per gross square 

6 foot of the Federal buildings of the agency in 

7 each of fiscal years 2018 through 2030 is re8 duced, as compared with the energy consump9 tion per gross square foot of the Federal build10 ings of the agency in the prior fiscal year, by 

11 3 percent.’’; and 

12 (2) in subsection (f)— 

13 (A) in paragraph (1)— 

14 (i) by redesignating subparagraphs 

15 (E), (F), and (G) as subparagraphs (F), 

16 (G), and (H), respectively; and 

17 (ii) by inserting after subparagraph 

18 (D) the following: 

19 ‘‘(E) ONGOING COMMISSIONING.—The 

20 term ‘ongoing commissioning’ means an ongo21 ing process of commissioning using monitored 

22 data, the primary goal of which is to ensure 

23 continuous optimum performance of a facility, 

24 in accordance with design or operating needs, 


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1 over the useful life of the facility, while meeting 

2 facility occupancy requirements.’’; 

3 (B) in paragraph (2), by adding at the end 

4 the following: 

5 ‘‘(C) ENERGY MANAGEMENT SYSTEM.—An 

6 energy manager designated under subparagraph 

7 (A) shall consider use of a system to manage 

8 energy use at the facility and certification of 

9 the facility in accordance with the International 

10 Organization for Standardization standard 

11 numbered 50001 and entitled ‘Energy Manage12 ment Systems’.’’; 

13 (C) by striking paragraphs (3) and (4) and 

14 inserting the following: 

15 ‘‘(3) ENERGY AND WATER EVALUATIONS AND

16 COMMISSIONING.— 

17 ‘‘(A) EVALUATIONS.—Except as provided 

18 in subparagraph (B), effective beginning on the 

19 date that is 180 days after the date of enact20 ment of the Energy Savings and Industrial 

21 Competitiveness Act, and annually thereafter, 

22 each energy manager shall complete, for each 

23 calendar year, a comprehensive energy and 

24 water evaluation and recommissioning or 

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1 cent of the facilities of each agency that meet 

2 the criteria under paragraph (2)(B) in a man3 ner that ensures that an evaluation of each fa4 cility is completed at least once every 4 years. 

5 ‘‘(B) EXCEPTIONS.—An evaluation and re6 commissioning shall not be required under sub7 paragraph (A) with respect to a facility that— 

8 ‘‘(i) has had a comprehensive energy 

9 and water evaluation during the 8-year pe10 riod preceding the date of the evaluation; 

11 ‘‘(ii)(I) has been commissioned, re12 commissioned, or retrocommissioned dur13 ing the 10-year period preceding the date 

14 of the evaluation; or 

15 ‘‘(II) is under ongoing commissioning; 

16 ‘‘(iii) has not had a major change in 

17 function or use since the previous evalua18 tion and commissioning; 

19 ‘‘(iv) has been benchmarked with pub20 lic disclosure under paragraph (8) within 

21 the year preceding the evaluation; and 

22 ‘‘(v)(I) based on the benchmarking, 

23 has achieved at a facility level the most re24 cent cumulative energy savings target 


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1 under subsection (a) compared to the ear2 lier of— 

3 ‘‘(aa) the date of the most recent 

4 evaluation; or 

5 ‘‘(bb) the date— 

6 ‘‘(AA) of the most recent 

7 commissioning, recommissioning, 

8 or retrocommissioning; or 

9 ‘‘(BB) on which ongoing 

10 commissioning began; or 

11 ‘‘(II) has a long-term contract in 

12 place guaranteeing energy savings at least 

13 as great as the energy savings target under 

14 subclause (I). 

15 ‘‘(4) IMPLEMENTATION OF IDENTIFIED ENERGY

16 AND WATER EFFICIENCY MEASURES.— 

17 ‘‘(A) IN GENERAL.—Not later than 2 years 

18 after the date of completion of each evaluation 

19 under paragraph (3), each energy manager 

20 may— 

21 ‘‘(i) implement any energy- or water22 saving measure that the Federal agency 

23 identified in the evaluation conducted 

24 under paragraph (3) that is life-cycle cost 

25 effective; and 


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1 ‘‘(ii) bundle individual measures of 

2 varying paybacks together into combined 

3 projects. 

4 ‘‘(B) MEASURES NOT IMPLEMENTED.— 

5 The energy manager shall, as part of the cer6 tification system under paragraph (7), explain 

7 the reasons why any life-cycle cost effective 

8 measures were not implemented under subpara9 graph (A) using guidelines developed by the 

10 Secretary.’’; and 

11 (D) in paragraph (7)(C), by adding at the 

12 end the following: 

13 ‘‘(iii) SUMMARY REPORT.—The Sec14 retary shall make available a report that 

15 summarizes the information tracked under 

16 subparagraph (B)(i) by each agency and, 

17 as applicable, by each type of measure.’’. 

18 SEC. 422. FEDERAL BUILDING ENERGY EFFICIENCY PER19 FORMANCE STANDARDS; CERTIFICATION 

20 SYSTEM AND LEVEL FOR GREEN BUILDINGS. 

21 (a) DEFINITIONS.—Section 303 of the Energy Con22 servation and Production Act (42 U.S.C. 6832) (as 

23 amended by section 101(a)) is amended— 


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1 (1) in paragraph (6), by striking ‘‘to be con2 structed’’ and inserting ‘‘constructed or altered’’; 

3 and 

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

5 ‘‘(19) MAJOR RENOVATION.—The term ‘major 

6 renovation’ means a modification of building energy 

7 systems sufficiently extensive that the whole building 

8 can meet energy standards for new buildings, based 

9 on criteria to be established by the Secretary 

10 through notice and comment rulemaking.’’. 

11 (b) FEDERAL BUILDING EFFICIENCY STANDARDS.— 

12 Section 305 of the Energy Conservation and Production 

13 Act (42 U.S.C. 6834) is amended— 

14 (1) in subsection (a)(3)— 

15 (A) by striking ‘‘(3)(A) Not later than’’ 

16 and all that follows through subparagraph (B) 

17 and inserting the following: 

18 ‘‘(3) REVISED FEDERAL BUILDING ENERGY EF19 FICIENCY PERFORMANCE STANDARDS; CERTIFI20 CATION FOR GREEN BUILDINGS.— 

21 ‘‘(A) REVISED FEDERAL BUILDING EN22 ERGY EFFICIENCY PERFORMANCE STAND23 ARDS.— 

24 ‘‘(i) IN GENERAL.—Not later than 1 

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1 ergy Savings and Industrial Competitive2 ness Act, the Secretary shall establish, by 

3 rule, revised Federal building energy effi4 ciency performance standards that require 

5 that— 

6 ‘‘(I) new Federal buildings and 

7 alterations and additions to existing 

8 Federal buildings— 

9 ‘‘(aa) meet or exceed the 

10 most recent revision of the Inter11 national Energy Conservation 

12 Code (in the case of residential 

13 buildings) or ASHRAE Standard 

14 90.1 (in the case of commercial 

15 buildings) as of the date of en16 actment of the Energy Savings 

17 and Industrial Competitiveness 

18 Act; and 

19 ‘‘(bb) meet or exceed the en20 ergy provisions of State and local 

21 building codes applicable to the 

22 building, if the codes are more 

23 stringent than the International 

24 Energy Conservation Code or 


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1 ASHRAE Standard 90.1, as ap2 plicable; 

3 ‘‘(II) unless demonstrated not to 

4 be life-cycle cost effective for new 

5 Federal buildings and Federal build6 ings with major renovations— 

7 ‘‘(aa) the buildings be de8 signed to achieve energy con9 sumption levels that are at least 

10 30 percent below the levels estab11 lished in the version of the 

12 ASHRAE Standard or the Inter13 national Energy Conservation 

14 Code, as appropriate, that is ap15 plied under subclause (I)(aa), in16 cluding updates under subpara17 graph (B); and 

18 ‘‘(bb) sustainable design 

19 principles are applied to the loca20 tion, siting, design, and construc21 tion of all new Federal buildings 

22 and replacement Federal build23 ings; 

24 ‘‘(III) if water is used to achieve 

25 energy efficiency, water conservation 


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1 technologies shall be applied to the ex2 tent that the technologies are life3 cycle cost effective; and 

4 ‘‘(IV) if life-cycle cost effective, 

5 as compared to other reasonably avail6 able technologies, not less than 30 

7 percent of the hot water demand for 

8 each new Federal building or Federal 

9 building undergoing a major renova10 tion be met through the installation 

11 and use of solar hot water heaters. 

12 ‘‘(ii) LIMITATION.—Clause (i)(I) shall 

13 not apply to unaltered portions of existing 

14 Federal buildings and systems that have 

15 been added to or altered. 

16 ‘‘(B) UPDATES.—Not later than 1 year 

17 after the date of approval of each subsequent 

18 revision of the ASHRAE Standard or the Inter19 national Energy Conservation Code, as appro20 priate, the Secretary shall determine whether 

21 the revised standards established under sub22 paragraph (A) should be updated to reflect the 

23 revisions, based on the energy savings and life24 cycle cost-effectiveness of the revisions.’’; 


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1 (B) in subparagraph (C), by striking ‘‘(C) 

2 In the budget request’’ and inserting the fol3 lowing: 

4 ‘‘(C) BUDGET REQUEST.—In the budget 

5 request’’; and 

6 (C) by striking subparagraph (D) and in7 serting the following: 

8 ‘‘(D) CERTIFICATION FOR GREEN BUILD9 INGS.— 

10 ‘‘(i) SUSTAINABLE DESIGN PRIN11 CIPLES.—Sustainable design principles 

12 shall be applied to the siting, design, and 

13 construction of buildings covered by this 

14 subparagraph. 

15 ‘‘(ii) SELECTION OF CERTIFICATION

16 SYSTEMS.—The Secretary, after reviewing 

17 the findings of the Federal Director under 

18 section 436(h) of the Energy Independence 

19 and Security Act of 2007 (42 U.S.C. 

20 17092(h)), in consultation with the Admin21 istrator of General Services, and in con22 sultation with the Secretary of Defense re23 lating to those facilities under the custody 

24 and control of the Department of Defense, 

25 shall determine those certification systems 


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1 for green commercial and residential build2 ings that the Secretary determines to be 

3 the most likely to encourage a comprehen4 sive and environmentally sound approach 

5 to certification of green buildings. 

6 ‘‘(iii) BASIS FOR SELECTION.—The 

7 determination of the certification systems 

8 under clause (ii) shall be based on ongoing 

9 review of the findings of the Federal Direc10 tor under section 436(h) of the Energy 

11 Independence and Security Act of 2007 

12 (42 U.S.C. 17092(h)) and the criteria de13 scribed in clause (v). 

14 ‘‘(iv) ADMINISTRATION.—In deter15 mining certification systems under this 

16 subparagraph, the Secretary shall— 

17 ‘‘(I) make a separate determina18 tion for all or part of each system; 

19 and 

20 ‘‘(II) confirm that the criteria 

21 used to support the selection of build22 ing products, materials, brands, and 

23 technologies— 

24 ‘‘(aa) are based on relevant 

25 technical data; 


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1 ‘‘(bb) use and reward eval2 uation of health, safety, and envi3 ronmental risks and impacts 

4 across the lifecycle of the build5 ing product, material, brand, or 

6 technology, including methodolo7 gies generally accepted by the ap8 plicable scientific disciplines; 

9 ‘‘(cc) as practicable, give 

10 preference to performance stand11 ards instead of prescriptive meas12 ures; and 

13 ‘‘(dd) reward continual im14 provements in the lifecycle man15 agement of health, safety, and 

16 environmental risks and impacts. 

17 ‘‘(v) CONSIDERATIONS.—In deter18 mining the green building certification sys19 tems under this subparagraph, the Sec20 retary shall take into consideration— 

21 ‘‘(I) the ability and availability of 

22 assessors and auditors to independ23 ently verify the criteria and measure24 ment of metrics at the scale necessary 

25 to implement this subparagraph; 


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1 ‘‘(II) the ability of the applicable 

2 certification organization to collect 

3 and reflect public comment; 

4 ‘‘(III) the ability of the standard 

5 to be developed and revised through a 

6 consensus-based process; 

7 ‘‘(IV) an evaluation of the 

8 robustness of the criteria for a high9 performance green building, which 

10 shall give credit for promoting— 

11 ‘‘(aa) efficient and sustain12 able use of water, energy, and 

13 other natural resources; 

14 ‘‘(bb) use of renewable en15 ergy sources; 

16 ‘‘(cc) improved indoor envi17 ronmental quality through en18 hanced indoor air quality, ther19 mal comfort, acoustics, day light20 ing, pollutant source control, and 

21 use of low-emission materials and 

22 building system controls; 

23 ‘‘(dd)(AA) the sourcing of 

24 grown, harvested, or mined mate25 rials; and 


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1 ‘‘(BB) certifications of re2 sponsible sourcing, such as cer3 tifications provided by the Forest 

4 Stewardship Council, the Sus5 tainable Forestry Initiative, the 

6 American Tree Farm System, or 

7 the Programme for the Endorse8 ment of Forest Certification; and 

9 ‘‘(ee) such other criteria as 

10 the Secretary determines to be 

11 appropriate; and 

12 ‘‘(V) national recognition within 

13 the building industry. 

14 ‘‘(vi) REVIEW.—The Secretary, in 

15 consultation with the Administrator of 

16 General Services and the Secretary of De17 fense, shall conduct an ongoing review to 

18 evaluate and compare private sector green 

19 building certification systems, taking into 

20 account— 

21 ‘‘(I) the criteria described in 

22 clause (v); and 

23 ‘‘(II) the identification made by 

24 the Federal Director under section 

25 436(h) of the Energy Independence 


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1 and Security Act of 2007 (42 U.S.C. 

2 17092(h)). 

3 ‘‘(vii) EXCLUSIONS.— 

4 ‘‘(I) IN GENERAL.—Subject to 

5 subclause (II), if a certification sys6 tem fails to meet the review require7 ments of clause (v), the Secretary 

8 shall— 

9 ‘‘(aa) identify the portions 

10 of the system, whether pre11 requisites, credits, points, or oth12 erwise, that meet the review cri13 teria of clause (v); 

14 ‘‘(bb) determine the portions 

15 of the system that are suitable 

16 for use; and 

17 ‘‘(cc) exclude all other por18 tions of the system from identi19 fication and use. 

20 ‘‘(II) ENTIRE SYSTEMS.—The 

21 Secretary shall exclude an entire sys22 tem from use if an exclusion under 

23 subclause (I)— 

24 ‘‘(aa) impedes the integrated 

25 use of the system; 


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1 ‘‘(bb) creates disparate re2 view criteria or unequal point ac3 cess for competing materials; or 

4 ‘‘(cc) increases agency costs 

5 of the use. 

6 ‘‘(viii) INTERNAL CERTIFICATION

7 PROCESSES.—The Secretary may by rule 

8 allow Federal agencies to develop internal 

9 certification processes, using certified pro10 fessionals, in lieu of certification by certifi11 cation entities identified under clause (ii). 

12 ‘‘(ix) PRIVATIZED MILITARY HOUS13 ING.—With respect to privatized military 

14 housing, the Secretary of Defense, after 

15 consultation with the Secretary may, 

16 through rulemaking, develop alternative 

17 certification systems and levels than the 

18 systems and levels identified under clause 

19 (ii) that achieve an equivalent result in 

20 terms of energy savings, sustainable de21 sign, and green building performance. 

22 ‘‘(x) WATER CONSERVATION TECH23 NOLOGIES.—In addition to any use of 

24 water conservation technologies otherwise 

25 required by this section, water conservation 


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1 technologies shall be applied to the extent 

2 that the technologies are life-cycle cost-ef3 fective. 

4 ‘‘(xi) EFFECTIVE DATE.— 

5 ‘‘(I) DETERMINATIONS MADE

6 AFTER DECEMBER 31, 2017.—The 

7 amendments made by section 

8 432(b)(1)(C) of Energy Savings and 

9 Industrial Competitiveness Act shall 

10 apply to any determination made by a 

11 Federal agency after December 31, 

12 2017. 

13 ‘‘(II) DETERMINATIONS MADE ON

14 OR BEFORE DECEMBER 31, 2017.— 

15 This subparagraph (as in effect on the 

16 day before the date of enactment of 

17 Energy Savings and Industrial Com18 petitiveness Act) shall apply to any 

19 use of a certification system for green 

20 commercial and residential buildings 

21 by a Federal agency on or before De22 cember 31, 2017.’’; and 

23 (2) by striking subsections (c) and (d) and in24 serting the following: 

25 ‘‘(c) PERIODIC REVIEW.—The Secretary shall— 


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1 ‘‘(1) once every 5 years, review the Federal 

2 building energy standards established under this sec3 tion; and 

4 ‘‘(2) on completion of a review under paragraph 

5 (1), if the Secretary determines that significant en6 ergy savings would result, upgrade the standards to 

7 include all new energy efficiency and renewable en8 ergy measures that are technologically feasible and 

9 economically justified.’’. 

10 SEC. 423. ENHANCED ENERGY EFFICIENCY UNDER11 WRITING. 

12 (a) DEFINITIONS.—In this section: 

13 (1) COVERED AGENCY.—The term ‘‘covered 

14 agency’’— 

15 (A) means— 

16 (i) an executive agency, as that term 

17 is defined in section 102 of title 31, United 

18 States Code; and 

19 (ii) any other agency of the Federal 

20 Government; and 

21 (B) includes any enterprise, as that term is 

22 defined under section 1303 of the Federal 

23 Housing Enterprises Financial Safety and 

24 Soundness Act of 1992 (12 U.S.C. 4502). 


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1 (2) COVERED LOAN.—The term ‘‘covered loan’’ 

2 means a loan secured by a home that is issued, in3 sured, purchased, or securitized by a covered agency. 

4 (3) HOMEOWNER.—The term ‘‘homeowner’’ 

5 means the mortgagor under a covered loan. 

6 (4) MORTGAGEE.—The term ‘‘mortgagee’’ 

7 means— 

8 (A) an original lender under a covered loan 

9 or the holder of a covered loan at the time at 

10 which that mortgage transaction is con11 summated; 

12 (B) any affiliate, agent, subsidiary, suc13 cessor, or assignee of an original lender under 

14 a covered loan or the holder of a covered loan 

15 at the time at which that mortgage transaction 

16 is consummated; 

17 (C) any servicer of a covered loan; and 

18 (D) any subsequent purchaser, trustee, or 

19 transferee of any covered loan issued by an 

20 original lender. 

21 (5) SECRETARY.—The term ‘‘Secretary’’ means 

22 the Secretary of Housing and Urban Development. 

23 (6) SERVICER.—The term ‘‘servicer’’ means the 

24 person or entity responsible for the servicing of a 

25 covered loan, including the person or entity who 


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1 makes or holds a covered loan if that person or enti2 ty also services the covered loan. 

3 (7) SERVICING.—The term ‘‘servicing’’ has the 

4 meaning given the term in section 6(i) of the Real 

5 Estate Settlement Procedures Act of 1974 (12 

6 U.S.C. 2605(i)). 

7 (b) FINDINGS AND PURPOSES.— 

8 (1) FINDINGS.—Congress finds that— 

9 (A) energy costs for homeowners are a sig10 nificant and increasing portion of their house11 hold budgets; 

12 (B) household energy use can vary sub13 stantially depending on the efficiency and char14 acteristics of the house; 

15 (C) expected energy cost savings are im16 portant to the value of the house; 

17 (D) the current test for loan affordability 

18 used by most covered agencies, commonly 

19 known as the ‘‘debt-to-income’’ test, is inad20 equate because it does not take into account the 

21 expected energy cost savings for the homeowner 

22 of an energy efficient home; and 

23 (E) another loan limitation, commonly 

24 known as the ‘‘loan-to-value’’ test, is tied to the 


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1 appraisal, which often does not adjust for effi2 ciency features of houses. 

3 (2) PURPOSES.—The purposes of this section 

4 are to— 

5 (A) improve the accuracy of mortgage un6 derwriting by Federal mortgage agencies by en7 suring that energy cost savings are included in 

8 the underwriting process as described below, 

9 and thus to reduce the amount of energy con10 sumed by homes and to facilitate the creation 

11 of energy efficiency retrofit and construction 

12 jobs; 

13 (B) require a covered agency to include the 

14 expected energy cost savings of a homeowner as 

15 a regular expense in the tests, such as the debt16 to-income test, used to determine the ability of 

17 the loan applicant to afford the cost of home18 ownership for all loan programs; and 

19 (C) require a covered agency to include the 

20 value home buyers place on the energy effi21 ciency of a house in tests used to compare the 

22 mortgage amount to home value, taking pre23 cautions to avoid double-counting and to sup24 port safe and sound lending. 


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1 (c) ENHANCED ENERGY EFFICIENCY UNDER2 WRITING CRITERIA.— 

3 (1) IN GENERAL.—Not later than 1 year after 

4 the date of enactment of this Act, the Secretary 

5 shall, in consultation with the advisory group estab6 lished in subsection (f)(2), develop and issue guide7 lines for a covered agency to implement enhanced 

8 loan eligibility requirements, for use when testing 

9 the ability of a loan applicant to repay a covered 

10 loan, that account for the expected energy cost sav11 ings for a loan applicant at a subject property, in 

12 the manner set forth in paragraphs (2) and (3). 

13 (2) REQUIREMENTS TO ACCOUNT FOR ENERGY

14 COST SAVINGS.—The enhanced loan eligibility re15 quirements under paragraph (1) shall require that, 

16 for all covered loans for which an energy efficiency 

17 report is voluntarily provided to the mortgagee by 

18 the mortgagor, the covered agency and the mort19 gagee shall take into consideration the estimated en20 ergy cost savings expected for the owner of the sub21 ject property in determining whether the loan appli22 cant has sufficient income to service the mortgage 

23 debt plus other regular expenses. To the extent that 

24 a covered agency uses a test such as a debt-to-in25 come test that includes certain regular expenses, 


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1 such as hazard insurance and property taxes, the ex2 pected energy cost savings shall be included as an 

3 offset to these expenses. Energy costs to be assessed 

4 include the cost of electricity, natural gas, oil, and 

5 any other fuel regularly used to supply energy to the 

6 subject property. 

7 (3) DETERMINATION OF ESTIMATED ENERGY

8 COST SAVINGS.— 

9 (A) IN GENERAL.—The guidelines to be 

10 issued under paragraph (1) shall include in11 structions for the covered agency to calculate 

12 estimated energy cost savings using— 

13 (i) the energy efficiency report; 

14 (ii) an estimate of baseline average 

15 energy costs; and 

16 (iii) additional sources of information 

17 as determined by the Secretary. 

18 (B) REPORT REQUIREMENTS.—For the 

19 purposes of subparagraph (A), an energy effi20 ciency report shall— 

21 (i) estimate the expected energy cost 

22 savings specific to the subject property, 

23 based on specific information about the 

24 property; 


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1 (ii) be prepared in accordance with 

2 the guidelines to be issued under para3 graph (1); and 

4 (iii) be prepared— 

5 (I) in accordance with the Resi6 dential Energy Service Network’s 

7 Home Energy Rating System (com8 monly known as ‘‘HERS’’) by an indi9 vidual certified by the Residential En10 ergy Service Network, unless the Sec11 retary finds that the use of HERS 

12 does not further the purposes of this 

13 section; or 

14 (II) by other methods approved 

15 by the Secretary, in consultation with 

16 the Secretary of Energy and the advi17 sory group established in subsection 

18 (f)(2), for use under this section, 

19 which shall include a third-party qual20 ity assurance procedure. 

21 (C) USE BY APPRAISER.—If an energy ef22 ficiency report is used under paragraph (2), the 

23 energy efficiency report shall be provided to the 

24 appraiser to estimate the energy efficiency of 


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1 the subject property and for potential adjust2 ments for energy efficiency. 

3 (4) REQUIRED DISCLOSURE TO CONSUMER FOR

4 A HOME WITH AN ENERGY EFFICIENCY REPORT.— 

5 If an energy efficiency report is used under para6 graph (2), the guidelines to be issued under para7 graph (1) shall require the mortgagee to— 

8 (A) inform the loan applicant of the ex9 pected energy costs as estimated in the energy 

10 efficiency report, in a manner and at a time as 

11 prescribed by the Secretary, and if practicable, 

12 in the documents delivered at the time of loan 

13 application; and 

14 (B) include the energy efficiency report in 

15 the documentation for the loan provided to the 

16 borrower. 

17 (5) REQUIRED DISCLOSURE TO CONSUMER FOR

18 A HOME WITHOUT AN ENERGY EFFICIENCY RE19 PORT.—If an energy efficiency report is not used 

20 under paragraph (2), the guidelines to be issued 

21 under paragraph (1) shall require the mortgagee to 

22 inform the loan applicant in a manner and at a time 

23 as prescribed by the Secretary, and if practicable, in 

24 the documents delivered at the time of loan applica25 tion of— 


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1 (A) typical energy cost savings that would 

2 be possible from a cost-effective energy upgrade 

3 of a home of the size and in the region of the 

4 subject property; 

5 (B) the impact the typical energy cost sav6 ings would have on monthly ownership costs of 

7 a typical home; 

8 (C) the impact on the size of a mortgage 

9 that could be obtained if the typical energy cost 

10 savings were reflected in an energy efficiency 

11 report; and 

12 (D) resources for improving the energy ef13 ficiency of a home. 

14 (6) PRICING OF LOANS.— 

15 (A) IN GENERAL.—A covered agency may 

16 price covered loans originated under the en17 hanced loan eligibility requirements required 

18 under this section in accordance with the esti19 mated risk of the loans. 

20 (B) IMPOSITION OF CERTAIN MATERIAL

21 COSTS, IMPEDIMENTS, OR PENALTIES.—In the 

22 absence of a publicly disclosed analysis that 

23 demonstrates significant additional default risk 

24 or prepayment risk associated with the loans, a 

25 covered agency shall not impose material costs, 


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1 impediments, or penalties on covered loans 

2 merely because the loan uses an energy effi3 ciency report or the enhanced loan eligibility re4 quirements required under this section. 

5 (7) LIMITATIONS.— 

6 (A) IN GENERAL.—A covered agency may 

7 price covered loans originated under the en8 hanced loan eligibility requirements required 

9 under this section in accordance with the esti10 mated risk of those loans. 

11 (B) PROHIBITED ACTIONS.—A covered 

12 agency shall not— 

13 (i) modify existing underwriting cri14 teria or adopt new underwriting criteria 

15 that intentionally negate or reduce the im16 pact of the requirements or resulting bene17 fits that are set forth or otherwise derived 

18 from the enhanced loan eligibility require19 ments required under this subsection; or 

20 (ii) impose greater buy back require21 ments, credit overlays, or insurance re22 quirements, including private mortgage in23 surance, on covered loans merely because 

24 the loan uses an energy efficiency report or 


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1 the enhanced loan eligibility requirements 

2 required under this subsection. 

3 (8) APPLICABILITY AND IMPLEMENTATION

4 DATE.—Not later than 3 years after the date of en5 actment of this Act, and before December 31, 2019, 

6 the enhanced loan eligibility requirements required 

7 under this subsection shall be implemented by each 

8 covered agency to— 

9 (A) apply to any covered loan for the sale, 

10 or refinancing of any loan for the sale, of any 

11 home; 

12 (B) be available on any residential real 

13 property (including individual units of con14 dominiums and cooperatives) that qualifies for 

15 a covered loan; and 

16 (C) provide prospective mortgagees with 

17 sufficient guidance and applicable tools to im18 plement the required underwriting methods. 

19 (d) ENHANCED ENERGY EFFICIENCY UNDER20 WRITING VALUATION GUIDELINES.— 

21 (1) IN GENERAL.—Not later than 1 year after 

22 the date of enactment of this Act, the Secretary 

23 shall— 

24 (A) in consultation with the Federal Fi25 nancial Institutions Examination Council and 


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1 the advisory group established in subsection 

2 (f)(2), develop and issue guidelines for a cov3 ered agency to determine the maximum per4 mitted loan amount based on the value of the 

5 property for all covered loans made on prop6 erties with an energy efficiency report that 

7 meets the requirements of subsection (c)(3)(B); 

8 and 

9 (B) in consultation with the Secretary of 

10 Energy, issue guidelines for a covered agency to 

11 determine the estimated energy savings under 

12 paragraph (3) for properties with an energy ef13 ficiency report. 

14 (2) REQUIREMENTS.—The enhanced energy ef15 ficiency underwriting valuation guidelines required 

16 under paragraph (1) shall include— 

17 (A) a requirement that if an energy effi18 ciency report that meets the requirements of 

19 subsection (c)(3)(B) is voluntarily provided to 

20 the mortgagee, such report shall be used by the 

21 mortgagee or covered agency to determine the 

22 estimated energy savings of the subject prop23 erty; and 

24 (B) a requirement that the estimated en25 ergy savings of the subject property be added to 


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1 the appraised value of the subject property by 

2 a mortgagee or covered agency for the purpose 

3 of determining the loan-to-value ratio of the 

4 subject property, unless the appraisal includes 

5 the value of the overall energy efficiency of the 

6 subject property, using methods to be estab7 lished under the guidelines issued under para8 graph (1). 

9 (3) DETERMINATION OF ESTIMATED ENERGY

10 SAVINGS.— 

11 (A) AMOUNT OF ENERGY SAVINGS.—The 

12 amount of estimated energy savings shall be de13 termined by calculating the difference between 

14 the estimated energy costs for the average com15 parable houses, as determined in guidelines to 

16 be issued under paragraph (1), and the esti17 mated energy costs for the subject property 

18 based upon the energy efficiency report. 

19 (B) DURATION OF ENERGY SAVINGS.—The 

20 duration of the estimated energy savings shall 

21 be based upon the estimated life of the applica22 ble equipment, consistent with the rating sys23 tem used to produce the energy efficiency re24 port. 


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1 (C) PRESENT VALUE OF ENERGY SAV2 INGS.—The present value of the future savings 

3 shall be discounted using the average interest 

4 rate on conventional 30-year mortgages, in the 

5 manner directed by guidelines issued under 

6 paragraph (1). 

7 (4) ENSURING CONSIDERATION OF ENERGY EF8 FICIENT FEATURES.—Section 1110 of the Financial 

9 Institutions Reform, Recovery, and Enforcement Act 

10 of 1989 (12 U.S.C. 3339) is amended— 

11 (A) in paragraph (2), by striking ‘‘; and’’ 

12 and inserting a semicolon; and 

13 (B) in paragraph (3), by striking the pe14 riod at the end and inserting ‘‘; and’’ and in15 serting after paragraph (3) the following: 

16 ‘‘(4) that State certified and licensed appraisers 

17 have timely access, whenever practicable, to informa18 tion from the property owner and the lender that 

19 may be relevant in developing an opinion of value re20 garding the energy- and water-saving improvements 

21 or features of a property, such as— 

22 ‘‘(A) labels or ratings of buildings; 

23 ‘‘(B) installed appliances, measures, sys24 tems or technologies; 

25 ‘‘(C) blueprints; 


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1 ‘‘(D) construction costs; 

2 ‘‘(E) financial or other incentives regard3 ing energy- and water-efficient components and 

4 systems installed in a property; 

5 ‘‘(F) utility bills; 

6 ‘‘(G) energy consumption and benchmark7 ing data; and 

8 ‘‘(H) third-party verifications or represen9 tations of energy and water efficiency perform10 ance of a property, observing all financial pri11 vacy requirements adhered to by certified and 

12 licensed appraisers, including section 501 of the 

13 Gramm-Leach-Bliley Act (15 U.S.C. 6801). 

14 Unless a property owner consents to a lender, an ap15 praiser, in carrying out the requirements of para16 graph (4), shall not have access to the commercial 

17 or financial information of the owner that is privi18 leged or confidential.’’. 

19 (5) TRANSACTIONS REQUIRING STATE CER20 TIFIED APPRAISERS.—Section 1113 of the Financial 

21 Institutions Reform, Recovery, and Enforcement Act 

22 of 1989 (12 U.S.C. 3342) is amended— 

23 (A) in paragraph (1), by inserting before 

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1 erty on which the appraiser makes adjustments 

2 using an energy efficiency report’’; and 

3 (B) in paragraph (2), by inserting after 

4 ‘‘atypical’’ the following: ‘‘, or an appraisal on 

5 which the appraiser makes adjustments using 

6 an energy efficiency report.’’. 

7 (6) PROTECTIONS.— 

8 (A) AUTHORITY TO IMPOSE LIMITA9 TIONS.—The guidelines to be issued under 

10 paragraph (1) shall include such limitations and 

11 conditions as determined by the Secretary to be 

12 necessary to protect against meaningful under 

13 or over valuation of energy cost savings or du14 plicative counting of energy efficiency features 

15 or energy cost savings in the valuation of any 

16 subject property that is used to determine a 

17 loan amount. 

18 (B) ADDITIONAL AUTHORITY.—At the end 

19 of the 7-year period following the implementa20 tion of enhanced eligibility and underwriting 

21 valuation requirements under this section, the 

22 Secretary may modify or apply additional ex23 ceptions to the approach described in paragraph 

24 (2), where the Secretary finds that the 

25 unadjusted appraisal will reflect an accurate 


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1 market value of the efficiency of the subject 

2 property or that a modified approach will better 

3 reflect an accurate market value. 

4 (7) APPLICABILITY AND IMPLEMENTATION

5 DATE.—Not later than 3 years after the date of en6 actment of this Act, and before December 31, 2019, 

7 each covered agency shall implement the guidelines 

8 required under this subsection, which shall— 

9 (A) apply to any covered loan for the sale, 

10 or refinancing of any loan for the sale, of any 

11 home; and 

12 (B) be available on any residential real 

13 property, including individual units of con14 dominiums and cooperatives, that qualifies for a 

15 covered loan. 

16 (e) MONITORING.—Not later than 1 year after the 

17 date on which the enhanced eligibility and underwriting 

18 valuation requirements are implemented under this sec19 tion, and every year thereafter, each covered agency with 

20 relevant activity shall issue and make available to the pub21 lic a report that— 

22 (1) enumerates the number of covered loans of 

23 the agency for which there was an energy efficiency 

24 report, and that used energy efficiency appraisal 


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1 guidelines and enhanced loan eligibility require2 ments; 

3 (2) includes the default rates and rates of fore4 closures for each category of loans; and 

5 (3) describes the risk premium, if any, that the 

6 agency has priced into covered loans for which there 

7 was an energy efficiency report. 

8 (f) RULEMAKING.— 

9 (1) IN GENERAL.—The Secretary shall pre10 scribe regulations to carry out this section, in con11 sultation with the Secretary of Energy and the advi12 sory group established in paragraph (2), which may 

13 contain such classifications, differentiations, or other 

14 provisions, and may provide for such proper imple15 mentation and appropriate treatment of different 

16 types of transactions, as the Secretary determines 

17 are necessary or proper to effectuate the purposes of 

18 this section, to prevent circumvention or evasion 

19 thereof, or to facilitate compliance therewith. 

20 (2) ADVISORY GROUP.—To assist in carrying 

21 out this section, the Secretary shall establish an ad22 visory group, consisting of individuals representing 

23 the interests of— 

24 (A) mortgage lenders; 

25 (B) appraisers; 


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1 (C) energy raters and residential energy 

2 consumption experts; 

3 (D) energy efficiency organizations; 

4 (E) real estate agents; 

5 (F) home builders and remodelers; 

6 (G) State energy officials; and 

7 (H) others as determined by the Secretary. 

8 (g) ADDITIONAL STUDY.— 

9 (1) IN GENERAL.—Not later than 18 months 

10 after the date of enactment of this Act, the Sec11 retary shall reconvene the advisory group established 

12 in subsection (f)(2), in addition to water and loca13 tional efficiency experts, to advise the Secretary on 

14 the implementation of the enhanced energy efficiency 

15 underwriting criteria established in subsections (c) 

16 and (d). 

17 (2) RECOMMENDATIONS.—The advisory group 

18 established in subsection (f)(2) shall provide rec19 ommendations to the Secretary on any revisions or 

20 additions to the enhanced energy efficiency under21 writing criteria deemed necessary by the group, 

22 which may include alternate methods to better ac23 count for home energy costs and additional factors 

24 to account for substantial and regular costs of home25 ownership such as location-based transportation 


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1 costs and water costs. The Secretary shall forward 

2 any legislative recommendations from the advisory 

3 group to Congress for its consideration. 

4 TITLE V—MISCELLANEOUS 

5 SEC. 501. BUDGETARY EFFECTS. 

6 The budgetary effects of this Act, for the purpose of 

7 complying with the Statutory Pay-As-You-Go Act of 2010, 

8 shall be determined by reference to the latest statement 

9 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

10 Act, submitted for printing in the Congressional Record 

11 by the Chairman of the Senate Budget Committee, pro12 vided that such statement has been submitted prior to the 

13 vote on passage. 

14 SEC. 502. ADVANCE APPROPRIATIONS REQUIRED. 

15 The authorization of amounts under this Act and the 

16 amendments made by this Act shall be effective for any 

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

18 in advance in appropriations Acts. 

Æ 


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