I 

114TH CONGRESS 

1ST SESSION H. R. 2177 

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

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 30, 2015 

Mr. MCKINLEY (for himself and Mr. WELCH) introduced the following bill; 

which was referred to the Committee on Energy and Commerce, and in 

addition to the Committees on the Budget, Transportation and Infrastructure, Oversight and Government Reform, Financial Services, and 

Science, Space, and Technology, 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 of 

6 2015’’. 

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

8 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. 

Subtitle D—Better Buildings 

Sec. 131. Energy efficiency in Federal and other buildings. 

Sec. 132. Separate spaces with high-performance energy efficiency measures. 

Sec. 133. Tenant star program. 

Subtitle E—Energy Information for Commercial Buildings 

Sec. 141. Energy information for commercial buildings. 

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. Availability of funds for design updates. 

Sec. 303. Energy efficient data centers. 

Sec. 304. 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 


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

Subtitle B—Federal Green Buildings 

Sec. 411. High-performance green Federal buildings. 

Subtitle C—Water Heaters 

Sec. 421. Grid-enabled water heaters. 

Subtitle D—Energy Performance Requirement for Federal Buildings 

Sec. 431. Energy performance requirement for Federal buildings. 

Sec. 432. Federal building energy efficiency performance standards; certification system and level for green buildings. 

Sec. 433. Enhanced energy efficiency underwriting. 

Subtitle E—Voluntary Verification Programs for Air Conditioning, Furnace, 

Boiler, Heat Pump, and Water Heater Products 

Sec. 441. Voluntary verification programs for air conditioning, furnace, boiler, 

heat pump, and water heater products. 

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 


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1 building energy code and standards developed and 

2 updated through a consensus process among inter3 ested persons, such as the IECC or the code used 

4 by— 

5 ‘‘(A) the Council of American Building Of6 ficials, or its legal successor, International Code 

7 Council, Inc.; 

8 ‘‘(B) the American Society of Heating, Re9 frigerating, and Air-Conditioning Engineers; or 

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

11 and 

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

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

14 International Energy Conservation Code. 

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

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

17 Native American Housing Assistance and Self-De18 termination Act of 1996 (25 U.S.C. 4103).’’. 

19 (b) STATE BUILDING ENERGY EFFICIENCY

20 CODES.—Section 304 of the Energy Conservation and 

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

22 follows: 

23 ‘‘SEC. 304. UPDATING STATE BUILDING ENERGY EFFI24 CIENCY CODES. 

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


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

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

3 as appropriate, by local governments that meet or 

4 exceed the model building energy codes, or achieve 

5 equivalent or greater energy savings; and 

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

7 local codes. 

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

9 BUILDING ENERGY CODE UPDATES.— 

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

11 EACH STATE AND INDIAN TRIBE.— 

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

13 after the date on which a model building energy 

14 code is updated, each State or Indian tribe shall 

15 certify whether or not the State or Indian tribe, 

16 respectively, has reviewed and updated the en17 ergy provisions of the building code of the State 

18 or Indian tribe, respectively. 

19 ‘‘(B) DEMONSTRATION.—The certification 

20 shall include a demonstration of whether or not 

21 the energy savings for the code provisions that 

22 are in effect throughout the State or Indian 

23 tribal territory meet or exceed— 

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

25 model building energy code; or 


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1 ‘‘(ii) the targets established under sec2 tion 307(b)(2). 

3 ‘‘(C) NO MODEL BUILDING ENERGY CODE

4 UPDATE.—If a model building energy code is 

5 not updated by a target date established under 

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

7 shall, not later than 2 years after the specified 

8 date, certify whether or not the State or Indian 

9 tribe, respectively, has reviewed and updated 

10 the energy provisions of the building code of the 

11 State or Indian tribe, respectively, to meet or 

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

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

14 than 90 days after a State or Indian tribe certifi15 cation under paragraph (1), the Secretary shall— 

16 ‘‘(A) determine whether the code provi17 sions of the State or Indian tribe, respectively, 

18 meet the criteria specified in paragraph (1); 

19 and 

20 ‘‘(B) if the determination is positive, vali21 date the certification. 

22 ‘‘(c) IMPROVEMENTS IN COMPLIANCE WITH BUILD23 ING ENERGY CODES.— 

24 ‘‘(1) REQUIREMENT.— 


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

2 after the date of a certification under sub3 section (b), each State and Indian tribe shall 

4 certify whether or not the State and Indian 

5 tribe, respectively, has— 

6 ‘‘(i) achieved full compliance under 

7 paragraph (3) with the applicable certified 

8 State and Indian tribe building energy 

9 code or with the associated model building 

10 energy code; or 

11 ‘‘(ii) made significant progress under 

12 paragraph (4) toward achieving compliance 

13 with the applicable certified State and In14 dian tribe building energy code or with the 

15 associated model building energy code. 

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

17 State or Indian tribe certifies progress toward 

18 achieving compliance, the State or Indian tribe 

19 shall repeat the certification until the State or 

20 Indian tribe certifies that the State or Indian 

21 tribe has achieved full compliance, respectively. 

22 ‘‘(2) MEASUREMENT OF COMPLIANCE.—A cer23 tification under paragraph (1) shall include docu24 mentation of the rate of compliance based on— 


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1 ‘‘(A) independent inspections of a random 

2 sample of the buildings covered by the code in 

3 the preceding year; or 

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

5 accurate measure of compliance. 

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

7 or Indian tribe shall be considered to achieve full 

8 compliance under paragraph (1) if— 

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

10 covered by the code in the preceding year sub11 stantially meets all the requirements of the ap12 plicable code specified in paragraph (1), or 

13 achieves equivalent or greater energy savings 

14 level; or 

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

16 buildings that did not meet the applicable code 

17 specified in paragraph (1) in the preceding 

18 year, compared to a baseline of comparable 

19 buildings that meet this code, is not more than 

20 5 percent of the estimated energy use of all 

21 buildings covered by this code during the pre22 ceding year. 

23 ‘‘(4) SIGNIFICANT PROGRESS TOWARD

24 ACHIEVEMENT OF COMPLIANCE.—A State or Indian 

25 tribe shall be considered to have made significant 


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1 progress toward achieving compliance for purposes 

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

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

4 plan for achieving compliance during the 8- 

5 year-period beginning on the date of enactment 

6 of this paragraph, including annual targets for 

7 compliance and active training and enforcement 

8 programs; and 

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

10 subparagraph (A). 

11 ‘‘(5) VALIDATION BY SECRETARY.—Not later 

12 than 90 days after a State or Indian tribe certifi13 cation under paragraph (1), the Secretary shall— 

14 ‘‘(A) determine whether the State or In15 dian tribe has demonstrated meeting the cri16 teria of this subsection, including accurate 

17 measurement of compliance; and 

18 ‘‘(B) if the determination is positive, vali19 date the certification. 

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

21 ACHIEVE COMPLIANCE.— 

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

23 has not made a certification required under sub24 section (b) or (c) by the applicable deadline shall 

25 submit to the Secretary a report on— 


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

2 with respect to meeting the requirements and 

3 submitting the certification; and 

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

5 and submitting the certification. 

6 ‘‘(2) FEDERAL SUPPORT.—For any State or In7 dian tribe for which the Secretary has not validated 

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

9 (c), the lack of the certification may be a consider10 ation for Federal support authorized under this sec11 tion for code adoption and compliance activities. 

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

13 Indian tribe for which the Secretary has not vali14 dated a certification under subsection (b) or (c), a 

15 local government may be eligible for Federal support 

16 by meeting the certification requirements of sub17 sections (b) and (c). 

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

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

20 annually submit to Congress, and publish in the 

21 Federal Register, a report on— 

22 ‘‘(i) the status of model building en23 ergy codes; 

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

25 compliance in the States and Indian tribes; 


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1 ‘‘(iii) implementation of this section; 

2 and 

3 ‘‘(iv) improvements in energy savings 

4 over time as result of the targets estab5 lished under section 307(b)(2). 

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

7 estimates of impacts of past action under this 

8 section, and potential impacts of further action, 

9 on— 

10 ‘‘(i) upfront financial and construction 

11 costs, cost benefits and returns (using in12 vestment analysis), and lifetime energy use 

13 for buildings; 

14 ‘‘(ii) resulting energy costs to individ15 uals and businesses; and 

16 ‘‘(iii) resulting overall annual building 

17 ownership and operating costs. 

18 ‘‘(e) TECHNICAL ASSISTANCE TO STATES AND IN19 DIAN TRIBES.—The Secretary shall provide technical as20 sistance to States and Indian tribes to implement the goals 

21 and requirements of this section, including procedures and 

22 technical analysis for States and Indian tribes— 

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

24 and commercial building energy codes; 


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

2 the States and Indian tribes achieve equivalent or 

3 greater energy savings than the model building en4 ergy codes and targets; 

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

6 building energy code; and 

7 ‘‘(4) to otherwise promote the design and con8 struction of energy efficient buildings. 

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

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

11 incentive funding to States and Indian tribes— 

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

13 section; 

14 ‘‘(B) to improve and implement residential 

15 and commercial building energy codes, including 

16 increasing and verifying compliance with the 

17 codes and training of State, tribal, and local 

18 building code officials to implement and enforce 

19 the codes; and 

20 ‘‘(C) to promote building energy efficiency 

21 through the use of the codes. 

22 ‘‘(2) ADDITIONAL FUNDING.—Additional fund23 ing shall be provided under this subsection for im24 plementation of a plan to achieve and document full 


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1 compliance with residential and commercial building 

2 energy codes under subsection (c)— 

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

4 the Secretary has validated a certification under 

5 subsection (b) or (c); and 

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

7 eligible under subparagraph (A), to a local gov8 ernment that is eligible under this section. 

9 ‘‘(3) TRAINING.—Of the amounts made avail10 able under this subsection, the State or Indian tribe 

11 may use amounts required, but not to exceed 

12 $750,000 for a State, to train State and local build13 ing code officials to implement and enforce codes de14 scribed in paragraph (2). 

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

16 grants under this subsection with local governments 

17 that implement and enforce the codes. 

18 ‘‘(g) STRETCH CODES AND ADVANCED STAND19 ARDS.— 

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

21 technical and financial support for the development 

22 of stretch codes and advanced standards for residen23 tial and commercial buildings for use as— 


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

2 energy code by local, tribal, or State govern3 ments; and 

4 ‘‘(B) guidelines for energy-efficient build5 ing design. 

6 ‘‘(2) TARGETS.—The stretch codes and ad7 vanced standards shall be designed— 

8 ‘‘(A) to achieve substantial energy savings 

9 compared to the model building energy codes; 

10 and 

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

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

13 the target years. 

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

15 building science experts from the National Laboratories 

16 and institutions of higher education, designers and build17 ers of energy-efficient residential and commercial build18 ings, code officials, and other stakeholders, shall under19 take a study of the feasibility, impact, economics, and 

20 merit of— 

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

22 buildings be designed, sited, and constructed in a 

23 manner that makes the buildings more adaptable in 

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


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1 construction, as advances are achieved in energy-sav2 ing technologies; 

3 ‘‘(2) code procedures to incorporate measured 

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

5 and performance calculations; and 

6 ‘‘(3) legislative options for increasing energy 

7 savings from building energy codes, including addi8 tional incentives for effective State and local action, 

9 and verification of compliance with and enforcement 

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

11 ‘‘(i) EFFECT ON OTHER LAWS.—Nothing in this sec12 tion or section 307 supersedes or modifies the application 

13 of sections 321 through 346 of the Energy Policy and 

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

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

16 are authorized to be appropriated to carry out this section 

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

18 expended.’’. 

19 (c) FEDERAL BUILDING ENERGY EFFICIENCY

20 STANDARDS.—Section 305 of the Energy Conservation 

21 and Production Act (42 U.S.C. 6834) is amended by strik22 ing ‘‘voluntary building energy code’’ each place it appears 

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

24 building energy code’’. 


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

2 of the Energy Conservation and Production Act (42 

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

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

5 CODES. 

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

7 updating of model building energy codes. 

8 ‘‘(b) TARGETS.— 

9 ‘‘(1) IN GENERAL.—The Secretary shall sup10 port the updating of the model building energy codes 

11 to enable the achievement of aggregate energy sav12 ings targets established under paragraph (2). 

13 ‘‘(2) TARGETS.— 

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

15 work with State, Indian tribes, local govern16 ments, nationally recognized code and stand17 ards developers, and other interested parties to 

18 support the updating of model building energy 

19 codes by establishing one or more aggregate en20 ergy savings targets to achieve the purposes of 

21 this section. 

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

23 may establish separate targets for commercial 

24 and residential buildings. 


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1 ‘‘(C) BASELINES.—The baseline for updat2 ing model building energy codes shall be the 

3 2009 IECC for residential buildings and 

4 ASHRAE Standard 90.1–2010 for commercial 

5 buildings. 

6 ‘‘(D) SPECIFIC YEARS.— 

7 ‘‘(i) IN GENERAL.—Targets for spe8 cific years shall be established and revised 

9 by the Secretary through rulemaking and 

10 coordinated with nationally recognized code 

11 and standards developers at a level that— 

12 ‘‘(I) is at the maximum level of 

13 energy efficiency that is techno14 logically feasible and life-cycle cost ef15 fective, while accounting for the eco16 nomic considerations under paragraph 

17 (4); 

18 ‘‘(II) is higher than the preceding 

19 target; and 

20 ‘‘(III) promotes the achievement 

21 of commercial and residential high22 performance buildings through high 

23 performance energy efficiency (within 

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1 ergy Independence and Security Act 

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

3 ‘‘(ii) INITIAL TARGETS.—Not later 

4 than 1 year after the date of enactment of 

5 this clause, the Secretary shall establish 

6 initial targets under this subparagraph. 

7 ‘‘(iii) DIFFERENT TARGET YEARS.— 

8 Subject to clause (i), prior to the applica9 ble year, the Secretary may set a later tar10 get year for any of the model building en11 ergy codes described in subparagraph (A) 

12 if the Secretary determines that a target 

13 cannot be met. 

14 ‘‘(iv) SMALL BUSINESS.—When estab15 lishing targets under this paragraph 

16 through rulemaking, the Secretary shall 

17 ensure compliance with the Small Business 

18 Regulatory Enforcement Fairness Act of 

19 1996 (5 U.S.C. 601 note; Public Law 104– 

20 121). 

21 ‘‘(3) APPLIANCE STANDARDS AND OTHER FAC22 TORS AFFECTING BUILDING ENERGY USE.—In es23 tablishing building code targets under paragraph 

24 (2), the Secretary shall develop and adjust the tarVerDate Sep 11 2014 03:55 May 12, 2015 Jkt 049200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H2177.IH H2177

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1 gets in recognition of potential savings and costs re2 lating to— 

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

4 lighting, windows, insulation, and building enve5 lope sealing; 

6 ‘‘(B) advancement of distributed genera7 tion and on-site renewable power generation 

8 technologies; 

9 ‘‘(C) equipment improvements for heating, 

10 cooling, and ventilation systems; 

11 ‘‘(D) building management systems and 

12 SmartGrid technologies to reduce energy use; 

13 and 

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

15 building systems that the Secretary considers 

16 appropriate regarding building plug load and 

17 other energy uses. 

18 ‘‘(4) ECONOMIC CONSIDERATIONS.—In estab19 lishing and revising building code targets under 

20 paragraph (2), the Secretary shall consider the eco21 nomic feasibility of achieving the proposed targets 

22 established under this section and the potential costs 

23 and savings for consumers and building owners, in24 cluding a return on investment analysis. 


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1 ‘‘(c) TECHNICAL ASSISTANCE TO MODEL BUILDING

2 ENERGY CODE-SETTING AND STANDARD DEVELOPMENT

3 ORGANIZATIONS.— 

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

5 timely basis, provide technical assistance to model 

6 building energy code-setting and standard develop7 ment organizations consistent with the goals of this 

8 section. 

9 ‘‘(2) ASSISTANCE.—The assistance shall in10 clude, as requested by the organizations, technical 

11 assistance in— 

12 ‘‘(A) evaluating code or standards pro13 posals or revisions; 

14 ‘‘(B) building energy analysis and design 

15 tools; 

16 ‘‘(C) building demonstrations; 

17 ‘‘(D) developing definitions of energy use 

18 intensity and building types for use in model 

19 building energy codes to evaluate the efficiency 

20 impacts of the model building energy codes; 

21 ‘‘(E) performance-based standards; 

22 ‘‘(F) evaluating economic considerations 

23 under subsection (b)(4); and 


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1 ‘‘(G) developing model building energy 

2 codes by Indian tribes in accordance with tribal 

3 law. 

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

5 may submit timely model building energy code 

6 amendment proposals to the model building energy 

7 code-setting and standard development organiza8 tions, with supporting evidence, sufficient to enable 

9 the model building energy codes to meet the targets 

10 established under subsection (b)(2). 

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

12 shall make publicly available the entire calculation 

13 methodology (including input assumptions and data) 

14 used by the Secretary to estimate the energy savings 

15 of code or standard proposals and revisions. 

16 ‘‘(d) DETERMINATION.— 

17 ‘‘(1) REVISION OF MODEL BUILDING ENERGY

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

19 Standard 90.1 regarding building energy use are re20 vised, the Secretary shall make a preliminary deter21 mination not later than 90 days after the date of the 

22 revision, and a final determination not later than 15 

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

24 not the revision will— 


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1 ‘‘(A) improve energy efficiency in buildings 

2 compared to the existing model building energy 

3 code; and 

4 ‘‘(B) meet the applicable targets under 

5 subsection (b)(2). 

6 ‘‘(2) CODES OR STANDARDS NOT MEETING TAR7 GETS.— 

8 ‘‘(A) IN GENERAL.—If the Secretary 

9 makes a preliminary determination under para10 graph (1)(B) that a code or standard does not 

11 meet the targets established under subsection 

12 (b)(2), the Secretary may at the same time pro13 vide the model building energy code or standard 

14 developer with proposed changes that would re15 sult in a model building energy code that meets 

16 the targets and with supporting evidence, tak17 ing into consideration— 

18 ‘‘(i) whether the modified code is tech19 nically feasible and life-cycle cost effective; 

20 ‘‘(ii) available appliances, technologies, 

21 materials, and construction practices; and 

22 ‘‘(iii) the economic considerations 

23 under subsection (b)(4). 

24 ‘‘(B) INCORPORATION OF CHANGES.— 


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

2 proposed changes, the model building en3 ergy code or standard developer shall have 

4 an additional 270 days to accept or reject 

5 the proposed changes of the Secretary to 

6 the model building energy code or standard 

7 for the Secretary to make a final deter8 mination. 

9 ‘‘(ii) FINAL DETERMINATION.—A 

10 final determination under paragraph (1) 

11 shall be on the modified model building en12 ergy code or standard. 

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

14 the Secretary shall— 

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

16 analysis and determinations under this section in the 

17 Federal Register to provide an explanation of and 

18 the basis for such actions, including any supporting 

19 modeling, data, assumptions, protocols, and cost20 benefit analysis, including return on investment; and 

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

22 on targets and supporting analysis and determina23 tions under this section. 

24 ‘‘(f) VOLUNTARY CODES AND STANDARDS.—Not25 withstanding any other provision of this section, any 


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1 model building code or standard established under section 

2 304 shall not be binding on a State, local government, or 

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

4 Subtitle B—Worker Training and 

5 Capacity Building 

6 SEC. 111. BUILDING TRAINING AND ASSESSMENT CENTERS. 

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

8 grants to institutions of higher education (as defined in 

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

10 U.S.C. 1001)) and Tribal Colleges or Universities (as de11 fined in section 316(b) of that Act (20 U.S.C. 1059c(b))) 

12 to establish building training and assessment centers— 

13 (1) to identify opportunities for optimizing en14 ergy efficiency and environmental performance in 

15 buildings; 

16 (2) to promote the application of emerging con17 cepts and technologies in commercial and institu18 tional buildings; 

19 (3) to train engineers, architects, building sci20 entists, building energy permitting and enforcement 

21 officials, and building technicians in energy-efficient 

22 design and operation; 

23 (4) to assist institutions of higher education 

24 and Tribal Colleges or Universities in training build25 ing technicians; 


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1 (5) to promote research and development for 

2 the use of alternative energy sources and distributed 

3 generation to supply heat and power for buildings, 

4 particularly energy-intensive buildings; and 

5 (6) to coordinate with and assist State-accred6 ited technical training centers, community colleges, 

7 and Tribal Colleges or Universities and ensure ap8 propriate services are provided under this section to 

9 each region of the United States. 

10 (b) COORDINATION AND NONDUPLICATION.— 

11 (1) IN GENERAL.—The Secretary shall coordi12 nate the program with the industrial research and 

13 assessment centers program and with other Federal 

14 programs to avoid duplication of effort. 

15 (2) COLLOCATION.—To the maximum extent 

16 practicable, building, training, and assessment cen17 ters established under this section shall be collocated 

18 with Industrial Assessment Centers. 

19 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

20 authorized to be appropriated to carry out this section 

21 $10,000,000, to remain available until expended. 

22 SEC. 112. CAREER SKILLS TRAINING. 

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

24 eligible entities described in subsection (b) to pay the Fed25 eral share of associated career skills training programs 


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1 under which students concurrently receive classroom in2 struction and on-the-job training for the purpose of ob3 taining an industry-related certification to install energy 

4 efficient buildings technologies, including technologies de5 scribed in section 307(b)(3) of the Energy Conservation 

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

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

8 under subsection (a), an entity shall be a nonprofit part9 nership described in section 171(e)(2)(B)(ii) of the Work10 force Investment Act of 1998 (29 U.S.C. 

11 2916(e)(2)(B)(ii)). 

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

13 of carrying out a career skills training program described 

14 in subsection (a) shall be 50 percent. 

15 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

16 authorized to be appropriated to carry out this section 

17 $10,000,000, to remain available until expended. 

18 Subtitle C—School Buildings 

19 SEC. 121. COORDINATION OF ENERGY RETROFITTING AS20 SISTANCE FOR SCHOOLS. 

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

22 term ‘‘school’’ means— 

23 (1) an elementary school or secondary school 

24 (as defined in section 9101 of the Elementary and 


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

2 7801)); 

3 (2) an institution of higher education (as de4 fined in section 102(a) of the Higher Education Act 

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

6 (3) a school of the defense dependents’ edu7 cation system under the Defense Dependents’ Edu8 cation Act of 1978 (20 U.S.C. 921 et seq.) or estab9 lished under section 2164 of title 10, United States 

10 Code; 

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

12 Affairs; 

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

14 section 5212 of the Tribally Controlled Schools Act 

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

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

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

18 (20 U.S.C. 1059c(b))). 

19 (b) DESIGNATION OF LEAD AGENCY.—The Sec20 retary, acting through the Office of Energy Efficiency and 

21 Renewable Energy, shall act as the lead Federal agency 

22 for coordinating and disseminating information on exist23 ing Federal programs and assistance that may be used 

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1 newable energy, and energy retrofitting projects for 

2 schools. 

3 (c) REQUIREMENTS.—In carrying out coordination 

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

5 (1) in consultation and coordination with the 

6 appropriate Federal agencies, carry out a review of 

7 existing programs and financing mechanisms (in8 cluding revolving loan funds and loan guarantees) 

9 available in or from the Department of Agriculture, 

10 the Department of Energy, the Department of Edu11 cation, the Department of the Treasury, the Internal 

12 Revenue Service, the Environmental Protection 

13 Agency, and other appropriate Federal agencies with 

14 jurisdiction over energy financing and facilitation 

15 that are currently used or may be used to help ini16 tiate, develop, and finance energy efficiency, renew17 able energy, and energy retrofitting projects for 

18 schools; 

19 (2) establish a Federal cross-departmental col20 laborative coordination, education, and outreach ef21 fort to streamline communication and promote avail22 able Federal opportunities and assistance described 

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

24 energy, and energy retrofitting projects that enables 

25 States, local educational agencies, and schools— 


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1 (A) to use existing Federal opportunities 

2 more effectively; and 

3 (B) to form partnerships with Governors, 

4 State energy programs, local educational, finan5 cial, and energy officials, State and local gov6 ernment officials, nonprofit organizations, and 

7 other appropriate entities, to support the initi8 ation of the projects; 

9 (3) provide technical assistance for States, local 

10 educational agencies, and schools to help develop 

11 and finance energy efficiency, renewable energy, and 

12 energy retrofitting projects— 

13 (A) to increase the energy efficiency of 

14 buildings or facilities; 

15 (B) to install systems that individually 

16 generate energy from renewable energy re17 sources; 

18 (C) to establish partnerships to leverage 

19 economies of scale and additional financing 

20 mechanisms available to larger clean energy ini21 tiatives; or 

22 (D) to promote— 

23 (i) the maintenance of health, environ24 mental quality, and safety in schools, in25 cluding the ambient air quality, through 


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1 energy efficiency, renewable energy, and 

2 energy retrofit projects; and 

3 (ii) the achievement of expected en4 ergy savings and renewable energy produc5 tion through proper operations and main6 tenance practices; 

7 (4) develop and maintain a single online re8 source website with contact information for relevant 

9 technical assistance and support staff in the Office 

10 of Energy Efficiency and Renewable Energy for 

11 States, local educational agencies, and schools to ef12 fectively access and use Federal opportunities and 

13 assistance described in paragraph (1) to develop en14 ergy efficiency, renewable energy, and energy retro15 fitting projects; and 

16 (5) establish a process for recognition of schools 

17 that— 

18 (A) have successfully implemented energy 

19 efficiency, renewable energy, and energy retro20 fitting projects; and 

21 (B) are willing to serve as resources for 

22 other local educational agencies and schools to 

23 assist initiation of similar efforts. 

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

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


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1 Congress a report describing the implementation of this 

2 section. 

3 Subtitle D—Better Buildings 

4 SEC. 131. ENERGY EFFICIENCY IN FEDERAL AND OTHER 

5 BUILDINGS. 

6 (a) DEFINITIONS.—In this section: 

7 (1) ADMINISTRATOR.—The term ‘‘Adminis8 trator’’ means the Administrator of General Serv9 ices. 

10 (2) COST-EFFECTIVE ENERGY EFFICIENCY

11 MEASURE.—The terms ‘‘cost-effective energy effi12 ciency measure’’ and ‘‘measure’’ mean any building 

13 product, material, equipment, or service and the in14 stalling, implementing, or operating thereof, that 

15 provides energy savings in an amount that is not 

16 less than the cost of such installing, implementing, 

17 or operating. 

18 (b) MODEL PROVISIONS, POLICIES, AND BEST PRAC19 TICES.— 

20 (1) IN GENERAL.—Not later than 180 days 

21 after the date of enactment of this Act, the Adminis22 trator, in consultation with the Secretary and after 

23 providing the public with an opportunity for notice 

24 and comment, shall develop model leasing provisions 


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1 and best practices in accordance with this sub2 section. 

3 (2) COMMERCIAL LEASING.— 

4 (A) IN GENERAL.—The model commercial 

5 leasing provisions developed under this sub6 section shall, at a minimum, align the interests 

7 of building owners and tenants with regard to 

8 investments in cost-effective energy efficiency 

9 measures to encourage building owners and ten10 ants to collaborate to invest in such measures. 

11 (B) USE OF MODEL PROVISIONS.—The 

12 Administrator may use the model provisions de13 veloped under this subsection in any standard 

14 leasing document that designates a Federal 

15 agency (or other client of the Administrator) as 

16 a landlord or tenant. 

17 (C) PUBLICATION.—The Administrator 

18 shall periodically publish the model leasing pro19 visions developed under this subsection, along 

20 with explanatory materials, to encourage build21 ing owners and tenants in the private sector to 

22 use such provisions and materials. 

23 (3) REALTY SERVICES.—The Administrator 

24 shall develop policies and practices to implement 

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1 ty services provided by the Administrator to Federal 

2 agencies (or other clients of the Administrator), in3 cluding periodic training of appropriate Federal em4 ployees and contractors on how to identify and 

5 evaluate those measures. 

6 (4) STATE AND LOCAL ASSISTANCE.—The Ad7 ministrator, in consultation with the Secretary, shall 

8 make available model leasing provisions and best 

9 practices developed under this subsection to State, 

10 county, and municipal governments to manage 

11 owned and leased building space in accordance with 

12 the goal of encouraging investment in all cost-effec13 tive energy efficiency measures. 

14 SEC. 132. SEPARATE SPACES WITH HIGH-PERFORMANCE 

15 ENERGY EFFICIENCY MEASURES. 

16 Subtitle B of title IV of the Energy Independence and 

17 Security Act of 2007 (42 U.S.C. 17081 et seq.) is amend18 ed by adding at the end the following: 

19 ‘‘SEC. 424. SEPARATE SPACES WITH HIGH-PERFORMANCE 

20 ENERGY EFFICIENCY MEASURES. 

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

22 ‘‘(1) HIGH-PERFORMANCE ENERGY EFFICIENCY

23 MEASURE.—The term ‘high-performance energy effi24 ciency measure’ means a technology, product, or 

25 practice that will result in substantial operational 


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1 cost savings by reducing energy consumption and 

2 utility costs. 

3 ‘‘(2) SEPARATE SPACES.—The term ‘separate 

4 spaces’ means areas within a commercial building 

5 that are leased or otherwise occupied by a tenant or 

6 other occupant for a period of time pursuant to the 

7 terms of a written agreement. 

8 ‘‘(b) STUDY.— 

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

10 the date of enactment of this section, the Secretary, 

11 acting through the Assistant Secretary of Energy 

12 Efficiency and Renewable Energy, shall complete a 

13 study on the feasibility of— 

14 ‘‘(A) significantly improving energy effi15 ciency in commercial buildings through the de16 sign and construction, by owners and tenants, 

17 of separate spaces with high-performance en18 ergy efficiency measures; and 

19 ‘‘(B) encouraging owners and tenants to 

20 implement high-performance energy efficiency 

21 measures in separate spaces. 

22 ‘‘(2) SCOPE.—The study shall, at a minimum, 

23 include— 

24 ‘‘(A) descriptions of— 


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1 ‘‘(i) high-performance energy effi2 ciency measures that should be considered 

3 as part of the initial design and construc4 tion of separate spaces; 

5 ‘‘(ii) processes that owners, tenants, 

6 architects, and engineers may replicate 

7 when designing and constructing separate 

8 spaces with high-performance energy effi9 ciency measures; 

10 ‘‘(iii) policies and best practices to 

11 achieve reductions in energy intensities for 

12 lighting, plug loads, heating, cooling, cook13 ing, laundry, and other systems to satisfy 

14 the needs of the commercial building ten15 ant; 

16 ‘‘(iv) return on investment and pay17 back analyses of the incremental cost and 

18 projected energy savings of the proposed 

19 set of high-performance energy efficiency 

20 measures, including consideration of avail21 able incentives; 

22 ‘‘(v) models and simulation methods 

23 that predict the quantity of energy used by 

24 separate spaces with high-performance en25 ergy efficiency measures and that compare 


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1 that predicted quantity to the quantity of 

2 energy used by separate spaces without 

3 high-performance energy efficiency meas4 ures but that otherwise comply with appli5 cable building code requirements; 

6 ‘‘(vi) measurement and verification 

7 platforms demonstrating actual energy use 

8 of high-performance energy efficiency 

9 measures installed in separate spaces, and 

10 whether such measures generate the sav11 ings intended in the initial design and con12 struction of the separate spaces; 

13 ‘‘(vii) best practices that encourage an 

14 integrated approach to designing and con15 structing separate spaces to perform at op16 timum energy efficiency in conjunction 

17 with the central systems of a commercial 

18 building; and 

19 ‘‘(viii) any impact on employment re20 sulting from the design and construction of 

21 separate spaces with high-performance en22 ergy efficiency measures; and 

23 ‘‘(B) case studies reporting economic and 

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1 struction of separate spaces with high-perform2 ance energy efficiency measures. 

3 ‘‘(3) PUBLIC PARTICIPATION.—Not later than 

4 90 days after the date of the enactment of this sec5 tion, the Secretary shall publish a notice in the Fed6 eral Register requesting public comments regarding 

7 effective methods, measures, and practices for the 

8 design and construction of separate spaces with 

9 high-performance energy efficiency measures. 

10 ‘‘(4) PUBLICATION.—The Secretary shall pub11 lish the study on the website of the Department of 

12 Energy.’’. 

13 SEC. 133. TENANT STAR PROGRAM. 

14 Subtitle B of title IV of the Energy Independence and 

15 Security Act of 2007 (42 U.S.C. 17081 et seq.) (as 

16 amended by section 132) is amended by adding at the end 

17 the following: 

18 ‘‘SEC. 425. TENANT STAR PROGRAM. 

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

20 ‘‘(1) HIGH-PERFORMANCE ENERGY EFFICIENCY

21 MEASURE.—The term ‘high-performance energy effi22 ciency measure’ has the meaning given the term in 

23 section 424. 


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1 ‘‘(2) SEPARATE SPACES.—The term ‘separate 

2 spaces’ has the meaning given the term in section 

3 424. 

4 ‘‘(b) TENANT STAR.—The Administrator of the Envi5 ronmental Protection Agency, in consultation with the 

6 Secretary of Energy, shall develop a voluntary program 

7 within the Energy Star program established by section 

8 324A of the Energy Policy and Conservation Act (42 

9 U.S.C. 6294a), which may be known as Tenant Star, to 

10 promote energy efficiency in separate spaces leased by ten11 ants or otherwise occupied within commercial buildings. 

12 ‘‘(c) EXPANDING SURVEY DATA.—The Secretary of 

13 Energy, acting through the Administrator of the Energy 

14 Information Administration, shall— 

15 ‘‘(1) collect, through each Commercial Build16 ings Energy Consumption Survey of the Energy In17 formation Administration that is conducted after the 

18 date of enactment of this section, data on— 

19 ‘‘(A) categories of building occupancy that 

20 are known to consume significant quantities of 

21 energy, such as occupancy by data centers, 

22 trading floors, and restaurants; and 

23 ‘‘(B) other aspects of the property, build24 ing operation, or building occupancy determined 

25 by the Administrator of the Energy Information 


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1 Administration, in consultation with the Admin2 istrator of the Environmental Protection Agen3 cy, to be relevant in lowering energy consump4 tion; 

5 ‘‘(2) with respect to the first Commercial Build6 ings Energy Consumption Survey conducted after 

7 the date of enactment of this section, to the extent 

8 full compliance with the requirements of paragraph 

9 (1) is not feasible, conduct activities to develop the 

10 capability to collect such data and begin to collect 

11 such data; and 

12 ‘‘(3) make data collected under paragraphs (1) 

13 and (2) available to the public in aggregated form 

14 and provide such data, and any associated results, to 

15 the Administrator of the Environmental Protection 

16 Agency for use in accordance with subsection (d). 

17 ‘‘(d) RECOGNITION OF OWNERS AND TENANTS.— 

18 ‘‘(1) OCCUPANCY-BASED RECOGNITION.—Not 

19 later than 1 year after the date on which sufficient 

20 data is received pursuant to subsection (c), the Ad21 ministrator of the Environmental Protection Agency 

22 shall, following an opportunity for public notice and 

23 comment— 

24 ‘‘(A) in a manner similar to the Energy 

25 Star rating system for commercial buildings, 


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1 develop policies and procedures to recognize 

2 tenants in commercial buildings that voluntarily 

3 achieve high levels of energy efficiency in sepa4 rate spaces; 

5 ‘‘(B) establish building occupancy cat6 egories eligible for Tenant Star recognition 

7 based on the data collected under subsection (c) 

8 and any other appropriate data sources; and 

9 ‘‘(C) consider other forms of recognition 

10 for commercial building tenants or other occu11 pants that lower energy consumption in sepa12 rate spaces. 

13 ‘‘(2) DESIGN- AND CONSTRUCTION-BASED REC14 OGNITION.—After the study required by section 

15 424(b) is completed, the Administrator of the Envi16 ronmental Protection Agency, in consultation with 

17 the Secretary and following an opportunity for pub18 lic notice and comment, may develop a voluntary 

19 program to recognize commercial building owners 

20 and tenants that use high-performance energy effi21 ciency measures in the design and construction of 

22 separate spaces.’’. 


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1 Subtitle E—Energy Information for 

2 Commercial Buildings 

3 SEC. 141. ENERGY INFORMATION FOR COMMERCIAL BUILD4 INGS. 

5 (a) REQUIREMENT OF BENCHMARKING AND DISCLO6 SURE FOR LEASING BUILDINGS WITHOUT ENERGY STAR

7 LABELS.—Section 435(b)(2) of the Energy Independence 

8 and Security Act of 2007 (42 U.S.C. 17091(b)(2)) is 

9 amended— 

10 (1) by striking ‘‘paragraph (2)’’ and inserting 

11 ‘‘paragraph (1)’’; and 

12 (2) by striking ‘‘signing the contract,’’ and all 

13 that follows through the period at the end and in14 serting the following: ‘‘signing the contract, the fol15 lowing requirements are met: 

16 ‘‘(A) The space is renovated for all energy 

17 efficiency and conservation improvements that 

18 would be cost effective over the life of the lease, 

19 including improvements in lighting, windows, 

20 and heating, ventilation, and air conditioning 

21 systems. 

22 ‘‘(B)(i) Subject to clause (ii), the space is 

23 benchmarked under a nationally recognized, on24 line, free benchmarking program, with public 

25 disclosure, unless the space is a space for which 


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1 owners cannot access whole building utility con2 sumption data, including spaces— 

3 ‘‘(I) that are located in States with 

4 privacy laws that provide that utilities shall 

5 not provide such aggregated information to 

6 multitenant building owners; and 

7 ‘‘(II) for which tenants do not provide 

8 energy consumption information to the 

9 commercial building owner in response to a 

10 request from the building owner. 

11 ‘‘(ii) A Federal agency that is a tenant of 

12 the space shall provide to the building owner, or 

13 authorize the owner to obtain from the utility, 

14 the energy consumption information of the 

15 space for the benchmarking and disclosure re16 quired by this subparagraph.’’. 

17 (b) DEPARTMENT OF ENERGY STUDY.— 

18 (1) IN GENERAL.—Not later than 2 years after 

19 the date of enactment of this Act, the Secretary 

20 shall complete a study, with opportunity for public 

21 comment— 

22 (A) on the impact of— 

23 (i) State and local performance 

24 benchmarking and disclosure policies, and 

25 any associated building efficiency policies, 


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1 for commercial and multifamily buildings; 

2 and 

3 (ii) programs and systems in which 

4 utilities provide aggregated information re5 garding whole building energy consumption 

6 and usage information to owners of multi7 tenant commercial, residential, and mixed8 use buildings; 

9 (B) that identifies best practice policy ap10 proaches studied under subparagraph (A) that 

11 have resulted in the greatest improvements in 

12 building energy efficiency; and 

13 (C) that considers— 

14 (i) compliance rates and the benefits 

15 and costs of the policies and programs on 

16 building owners, utilities, tenants, and 

17 other parties; 

18 (ii) utility practices, programs, and 

19 systems that provide aggregated energy 

20 consumption information to multitenant 

21 building owners, and the impact of public 

22 utility commissions and State privacy laws 

23 on those practices, programs, and systems; 

24 (iii) exceptions to compliance in exist25 ing laws where building owners are not 


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1 able to gather or access whole building en2 ergy information from tenants or utilities; 

3 (iv) the treatment of buildings with— 

4 (I) multiple uses; 

5 (II) uses for which baseline infor6 mation is not available; and 

7 (III) uses that require high levels 

8 of energy intensities, such as data 

9 centers, trading floors, and televisions 

10 studios; 

11 (v) implementation practices, includ12 ing disclosure methods and phase-in of 

13 compliance; 

14 (vi) the safety and security of 

15 benchmarking tools offered by government 

16 agencies, and the resiliency of those tools 

17 against cyber attacks; and 

18 (vii) international experiences with re19 gard to building benchmarking and disclo20 sure laws and data aggregation for multi21 tenant buildings. 

22 (2) SUBMISSION TO CONGRESS.—At the conclu23 sion of the study, the Secretary shall submit to Con24 gress a report on the results of the study. 

25 (c) CREATION AND MAINTENANCE OF DATABASES.— 


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

2 after the date of enactment of this Act and following 

3 opportunity for public notice and comment, the Sec4 retary, in coordination with other relevant agencies 

5 shall, to carry out the purpose described in para6 graph (2)— 

7 (A) assess existing databases; and 

8 (B) as necessary— 

9 (i) modify and maintain existing data10 bases; or 

11 (ii) create and maintain a new data12 base platform. 

13 (2) PURPOSE.—The maintenance of existing 

14 databases or creation of a new database platform 

15 under paragraph (1) shall be for the purpose of stor16 ing and making available public energy-related infor17 mation on commercial and multifamily buildings, in18 cluding— 

19 (A) data provided under Federal, State, 

20 local, and other laws or programs regarding 

21 building benchmarking and energy information 

22 disclosure; 

23 (B) buildings that have received energy 

24 ratings and certifications; and 


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1 (C) energy-related information on buildings 

2 provided voluntarily by the owners of the build3 ings, in an anonymous form, unless the owner 

4 provides otherwise. 

5 (d) COMPETITIVE AWARDS.—Based on the results of 

6 the research for the portion of the study described in sub7 section (b)(1)(A)(ii), and with criteria developed following 

8 public notice and comment, the Secretary may make com9 petitive awards to utilities, utility regulators, and utility 

10 partners to develop and implement effective and promising 

11 programs to provide aggregated whole building energy 

12 consumption information to multitenant building owners. 

13 (e) INPUT FROM STAKEHOLDERS.—The Secretary 

14 shall seek input from stakeholders to maximize the effec15 tiveness of the actions taken under this section. 

16 (f) REPORT.—Not later than 2 years after the date 

17 of enactment of this Act, and every 2 years thereafter, 

18 the Secretary shall submit to Congress a report on the 

19 progress made in complying with this section. 

20 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

21 authorized to be appropriated to carry out subsection (b) 

22 $2,500,000 for each of fiscal years 2015 through 2019, 

23 to remain available until expended. 


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1 TITLE II—INDUSTRIAL EFFI2 CIENCY AND COMPETITIVE3 NESS 

4 Subtitle A—Manufacturing Energy 

5 Efficiency 

6 SEC. 201. PURPOSES. 

7 The purposes of this subtitle are— 

8 (1) to reform and reorient the industrial effi9 ciency programs of the Department of Energy; 

10 (2) to establish a clear and consistent authority 

11 for industrial efficiency programs of the Depart12 ment; 

13 (3) to accelerate the deployment of technologies 

14 and practices that will increase industrial energy ef15 ficiency and improve productivity; 

16 (4) to accelerate the development and dem17 onstration of technologies that will assist the deploy18 ment goals of the industrial efficiency programs of 

19 the Department and increase manufacturing effi20 ciency; 

21 (5) to stimulate domestic economic growth and 

22 improve industrial productivity and competitiveness; 

23 and 


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1 (6) to strengthen partnerships between Federal 

2 and State governmental agencies and the private 

3 and academic sectors. 

4 SEC. 202. FUTURE OF INDUSTRY PROGRAM. 

5 (a) IN GENERAL.—Section 452 of the Energy Inde6 pendence and Security Act of 2007 (42 U.S.C. 17111) is 

7 amended by striking the section heading and inserting the 

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

9 (b) DEFINITION OF ENERGY SERVICE PROVIDER.— 

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

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

12 (1) by redesignating paragraphs (3) through 

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

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

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

16 ‘energy service provider’ means any business pro17 viding technology or services to improve the energy 

18 efficiency, water efficiency, power factor, or load 

19 management of a manufacturing site or other indus20 trial process in an energy-intensive industry, or any 

21 utility operating under a utility energy service 

22 project.’’. 

23 (c) INDUSTRIAL RESEARCH AND ASSESSMENT CEN24 TERS.—Section 452(e) of the Energy Independence and 

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


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1 (1) by redesignating paragraphs (1) through 

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

3 and indenting appropriately; 

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

5 the following: 

6 ‘‘(1) IN GENERAL.—The Secretary’’; 

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

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

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

10 sustainable manufacturing goals and the implemen11 tation of information technology advancements for 

12 supply chain analysis, logistics, system monitoring, 

13 industrial and manufacturing processes, and other 

14 purposes’’; and 

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

16 ‘‘(2) COORDINATION.— 

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

18 and capabilities of the industrial research and 

19 assessment centers, the centers shall— 

20 ‘‘(i) coordinate with Manufacturing 

21 Extension Partnership Centers of the Na22 tional Institute of Standards and Tech23 nology; 

24 ‘‘(ii) coordinate with the Building 

25 Technologies Office of the Department of 


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1 Energy to provide building assessment 

2 services to manufacturers; 

3 ‘‘(iii) increase partnerships with the 

4 National Laboratories of the Department 

5 of Energy to leverage the expertise and 

6 technologies of the National Laboratories 

7 for national industrial and manufacturing 

8 needs; 

9 ‘‘(iv) increase partnerships with en10 ergy service providers and technology pro11 viders to leverage private sector expertise 

12 and accelerate deployment of new and ex13 isting technologies and processes for en14 ergy efficiency, power factor, and load 

15 management; 

16 ‘‘(v) identify opportunities for reduc17 ing greenhouse gas emissions; and 

18 ‘‘(vi) promote sustainable manufac19 turing practices for small- and medium20 sized manufacturers. 

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

22 funding for— 

23 ‘‘(A) outreach activities by the industrial 

24 research and assessment centers to inform 

25 small- and medium-sized manufacturers of the 


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1 information, technologies, and services avail2 able; and 

3 ‘‘(B) coordination activities by each indus4 trial research and assessment center to leverage 

5 efforts with— 

6 ‘‘(i) Federal and State efforts; 

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

8 service providers; 

9 ‘‘(iii) the efforts of regional energy ef10 ficiency organizations; and 

11 ‘‘(iv) the efforts of other industrial re12 search and assessment centers. 

13 ‘‘(4) WORKFORCE TRAINING.— 

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

15 pay the Federal share of associated internship 

16 programs under which students work with or 

17 for industries, manufacturers, and energy serv18 ice providers to implement the recommendations 

19 of industrial research and assessment centers. 

20 ‘‘(B) FEDERAL SHARE.—The Federal 

21 share of the cost of carrying out internship pro22 grams described in subparagraph (A) shall be 

23 50 percent. 

24 ‘‘(5) SMALL BUSINESS LOANS.—The Adminis25 trator of the Small Business Administration shall, to 


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1 the maximum extent practicable, expedite consider2 ation of applications from eligible small business 

3 concerns for loans under the Small Business Act (15 

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

5 of industrial research and assessment centers estab6 lished under paragraph (1).’’. 

7 SEC. 203. SUSTAINABLE MANUFACTURING INITIATIVE. 

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

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

10 by adding at the end the following: 

11 ‘‘SEC. 376. SUSTAINABLE MANUFACTURING INITIATIVE. 

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

13 Efficiency and Renewable Energy, the Secretary, on the 

14 request of a manufacturer, shall conduct onsite technical 

15 assessments to identify opportunities for— 

16 ‘‘(1) maximizing the energy efficiency of indus17 trial processes and cross-cutting systems; 

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

19 ‘‘(3) improving efficient use of water in manu20 facturing processes; 

21 ‘‘(4) conserving natural resources; and 

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

23 determines to be appropriate. 

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

25 the initiative in coordination with the private sector and 


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1 appropriate agencies, including the National Institute of 

2 Standards and Technology, to accelerate adoption of new 

3 and existing technologies and processes that improve en4 ergy efficiency. 

5 ‘‘(c) RESEARCH AND DEVELOPMENT PROGRAM FOR

6 SUSTAINABLE MANUFACTURING AND INDUSTRIAL TECH7 NOLOGIES AND PROCESSES.—As part of the industrial ef8 ficiency programs of the Department of Energy, the Sec9 retary shall carry out a joint industry-government partner10 ship program to research, develop, and demonstrate new 

11 sustainable manufacturing and industrial technologies and 

12 processes that maximize the energy efficiency of industrial 

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

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

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

16 6201) is amended by adding at the end of the items relat17 ing to part E of title III the following: 

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

18 SEC. 204. CONFORMING AMENDMENTS. 

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

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

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

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

23 13453, 13456) are repealed. 

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

25 (42 U.S.C. 13451(a)) is amended in the third sentence 


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

2 2107, and 2108’’ and inserting ‘‘sections 2102, 2104, 

3 2105, 2106, and 2108 of this Act and section 376 of the 

4 Energy Policy and Conservation Act,’’. 

5 Subtitle B—Supply Star 

6 SEC. 211. SUPPLY STAR. 

7 The Energy Policy and Conservation Act is amended 

8 by inserting after section 324A (42 U.S.C. 6294a) the fol9 lowing: 

10 ‘‘SEC. 324B. SUPPLY STAR PROGRAM. 

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

12 Department of Energy a Supply Star program to identify 

13 and promote practices, recognize companies, and, as ap14 propriate, recognize products that use highly efficient sup15 ply chains in a manner that conserves energy, water, and 

16 other resources. 

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

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

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

20 and 

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

22 program established under section 324A. 

23 ‘‘(c) DUTIES.—In carrying out the Supply Star pro24 gram described in subsection (a), the Secretary shall— 


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

2 and, as appropriate, recognize products that comply 

3 with the Supply Star program as the preferred prac4 tices, companies, and products in the marketplace 

5 for maximizing supply chain efficiency; 

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

7 awareness of the Supply Star program; 

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

9 chain energy resource consumption; 

10 ‘‘(4) develop and disseminate metrics, proc11 esses, and analytical tools (including software) for 

12 evaluating supply chain energy resource use; 

13 ‘‘(5) develop guidance at the sector level for im14 proving supply chain efficiency; 

15 ‘‘(6) work with domestic and international orga16 nizations to harmonize approaches to analyzing sup17 ply chain efficiency, including the development of a 

18 consistent set of tools, templates, calculators, and 

19 databases; and 

20 ‘‘(7) work with industry, including small busi21 nesses, to improve supply chain efficiency through 

22 activities that include— 

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

24 and 


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1 ‘‘(B) providing opportunities to benchmark 

2 supply chain efficiency. 

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

4 chain efficiency carried out by the Secretary with respect 

5 to a specific product, the Secretary shall consider energy 

6 consumption and resource use throughout the entire 

7 lifecycle of a product, including production, transport, 

8 packaging, use, and disposal. 

9 ‘‘(e) GRANTS AND INCENTIVES.— 

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

11 grants or other forms of incentives on a competitive 

12 basis to eligible entities, as determined by the Sec13 retary, for the purposes of— 

14 ‘‘(A) studying supply chain energy resource 

15 efficiency; and 

16 ‘‘(B) demonstrating and achieving reduc17 tions in the energy resource consumption of 

18 commercial products through changes and im19 provements to the production supply and dis20 tribution chain of the products. 

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

22 or data generated as a result of the grants or incen23 tives described in paragraph (1) shall be used to in24 form the development of the Supply Star Program. 


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

2 support professional training programs to develop and 

3 communicate methods, practices, and tools for improving 

4 supply chain efficiency. 

5 ‘‘(g) EFFECT OF OUTSOURCING OF AMERICAN

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

7 American jobs in the production of a product shall not 

8 count as a positive factor in determining supply chain effi9 ciency. 

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

11 is authorized to be appropriated to carry out this section 

12 $10,000,000 for the period of fiscal years 2015 through 

13 2024.’’. 

14 Subtitle C—Extended Product 

15 System Rebate Program 

16 SEC. 221. EXTENDED PRODUCT SYSTEM REBATE PROGRAM. 

17 (a) DEFINITIONS.—In this section: 

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

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

20 431.12 of title 10, Code of Federal Regulations (as 

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

22 (2) ELECTRONIC CONTROL.—The term ‘‘elec23 tronic control’’ means— 

24 (A) a power converter; or 


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1 (B) a combination of a power circuit and 

2 control circuit included on 1 chassis. 

3 (3) EXTENDED PRODUCT SYSTEM.—The term 

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

5 and any required associated electronic control and 

6 driven load that— 

7 (A) offers variable speed or multispeed op8 eration; 

9 (B) offers partial load control that reduces 

10 input energy requirements (as measured in kilo11 watt-hours) as compared to identified base lev12 els set by the Secretary; and 

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

14 (ii) uses an extended product system tech15 nology, as determined by the Secretary. 

16 (4) QUALIFIED EXTENDED PRODUCT SYS17 TEM.— 

18 (A) IN GENERAL.—The term ‘‘qualified ex19 tended product system’’ means an extended 

20 product system that— 

21 (i) includes an electric motor and an 

22 electronic control; and 

23 (ii) reduces the input energy (as 

24 measured in kilowatt-hours) required to 

25 operate the extended product system by 


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1 not less than 5 percent, as compared to 

2 identified base levels set by the Secretary. 

3 (B) INCLUSIONS.—The term ‘‘qualified ex4 tended product system’’ includes commercial or 

5 industrial machinery or equipment that— 

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

7 the extended product system prior to the 

8 redesign described in subclause (II); and 

9 (II) incorporates an extended product 

10 system that has greater than 1 horsepower 

11 into redesigned machinery or equipment; 

12 and 

13 (ii) was previously used prior to, and 

14 was placed back into service during, cal15 endar year 2016 or 2017. 

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

17 the date of enactment of this Act, the Secretary shall es18 tablish a program to provide rebates for expenditures 

19 made by qualified entities for the purchase or installation 

20 of a qualified extended product system. 

21 (c) QUALIFIED ENTITIES.— 

22 (1) ELIGIBILITY REQUIREMENTS.—A qualified 

23 entity under this section shall be— 

24 (A) in the case of a qualified extended 

25 product system described in subsection 


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1 (a)(4)(A), the purchaser of the qualified ex2 tended product that is installed; and 

3 (B) in the case of a qualified extended 

4 product system described in subsection 

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

6 or industrial machinery or equipment that in7 corporated the extended product system into 

8 that machinery or equipment. 

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

10 rebate under this section, a qualified entity shall 

11 submit to the Secretary— 

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

13 time, and containing such information as the 

14 Secretary may require; and 

15 (B) a certification that includes dem16 onstrated evidence— 

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

18 and 

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

20 described in paragraph (1)(A)— 

21 (aa) that the qualified entity in22 stalled the qualified extended product 

23 system during the 2 fiscal years fol24 lowing the date of enactment of this 

25 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, 

25 1990, and December 31, 2009, for a transVerDate Sep 11 2014 03:55 May 12, 2015 Jkt 049200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 E:\BILLS\H2177.IH H2177

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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 2016 and 2017, to re14 main available until expended. 

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

17 2017. 

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, 2015, 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, 2015, 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 of 2015.’’. 

8 SEC. 302. AVAILABILITY OF FUNDS FOR DESIGN UPDATES. 

9 Section 3307 of title 40, United States Code, is 

10 amended— 

11 (1) by redesignating subsections (d) through (h) 

12 as subsections (e) through (i), respectively; and 

13 (2) by inserting after subsection (c) the fol14 lowing: 

15 ‘‘(d) AVAILABILITY OF FUNDS FOR DESIGN UP16 DATES.— 

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

18 for any project for which congressional approval is 

19 received under subsection (a) and for which the de20 sign has been substantially completed but construc21 tion has not begun, the Administrator of General 

22 Services may use appropriated funds to update the 

23 project design to meet applicable Federal building 

24 energy efficiency standards established under section 

25 305 of the Energy Conservation and Production Act 


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1 (42 U.S.C. 6834) and other requirements estab2 lished under section 3312. 

3 ‘‘(2) LIMITATION.—The use of funds under 

4 paragraph (1) shall not exceed 125 percent of the 

5 estimated energy or other cost savings associated 

6 with the updates as determined by a life cycle cost 

7 analysis under section 544 of the National Energy 

8 Conservation Policy Act (42 U.S.C. 8254).’’. 

9 SEC. 303. ENERGY EFFICIENT DATA CENTERS. 

10 Section 453 of the Energy Independence and Security 

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

12 (1) in subsection (b)— 

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

14 ‘‘the organization’’ and inserting ‘‘an organiza15 tion’’; and 

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

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

18 inserting the following: 

19 ‘‘(c) STAKEHOLDER INVOLVEMENT.— 

20 ‘‘(1) IN GENERAL.—The Secretary and the Ad21 ministrator shall carry out subsection (b) in con22 sultation with the information technology industry 

23 and other key stakeholders, with the goal of pro24 ducing results that accurately reflect the best knowl25 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 of 2015, shall make available to the public 

15 an update to the report submitted to Congress pursuant 

16 to section 1 of the Act of December 20, 2006 (Public Law 

17 109–431; 120 Stat. 2920), entitled ‘Report to Congress 

18 on Server and Data Center Energy Efficiency’ and dated 

19 August 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 2014; 


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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 2020. 

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. 304. 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, 2018, 

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 grown, harvested, or mined materials, the 

19 system does not discriminate against the use of 

20 domestic products that have obtained certifi21 cations of responsible sourcing; and 

22 ‘‘(H) a finding that the system incor23 porates life-cycle assessment as a credit path24 way.’’. 


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1 Subtitle C—Water Heaters 

2 SEC. 421. GRID-ENABLED WATER HEATERS. 

3 Part B of title III of the Energy Policy and Conserva4 tion Act is amended— 

5 (1) in section 325(e) (42 U.S.C. 6295(e)), by 

6 adding at the end the following: 

7 ‘‘(6) ADDITIONAL STANDARDS FOR GRID-EN8 ABLED WATER HEATERS.— 

9 ‘‘(A) DEFINITIONS.—In this paragraph: 

10 ‘‘(i) ACTIVATION LOCK.—The term 

11 ‘activation lock’ means a control mecha12 nism (either a physical device directly on 

13 the water heater or a control system inte14 grated into the water heater) that is locked 

15 by default and contains a physical, soft16 ware, or digital communication that must 

17 be activated with an activation key to en18 able the product to operate at its designed 

19 specifications and capabilities and without 

20 which activation the product will provide 

21 not greater than 50 percent of the rated 

22 first hour delivery of hot water certified by 

23 the manufacturer. 

24 ‘‘(ii) GRID-ENABLED WATER HEAT25 ER.—The term ‘grid-enabled water heater’ 


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1 means an electric resistance water heater 

2 that— 

3 ‘‘(I) has a rated storage tank vol4 ume of more than 75 gallons; 

5 ‘‘(II) is manufactured on or after 

6 April 16, 2015; 

7 ‘‘(III) has— 

8 ‘‘(aa) an energy factor of 

9 not less than 1.061 minus the 

10 product obtained by multi11 plying— 

12 ‘‘(AA) the rated storage 

13 volume of the tank, ex14 pressed in gallons; and 

15 ‘‘(BB) 0.00168; or 

16 ‘‘(bb) an equivalent alter17 native standard prescribed by the 

18 Secretary and developed pursu19 ant to paragraph (5)(E); 

20 ‘‘(IV) is equipped at the point of 

21 manufacture with an activation lock; 

22 and 

23 ‘‘(V) bears a permanent label ap24 plied by the manufacturer that— 


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1 ‘‘(aa) is made of material 

2 not adversely affected by water; 

3 ‘‘(bb) is attached by means 

4 of non-water-soluble adhesive; 

5 and 

6 ‘‘(cc) advises purchasers and 

7 end-users of the intended and ap8 propriate use of the product with 

9 the following notice printed in 

10 16.5 point Arial Narrow Bold 

11 font: 

12 ‘‘ ‘IMPORTANT INFORMATION: This water heater is 

13 intended only for use as part of an electric thermal storage 

14 or demand response program. It will not provide adequate 

15 hot water unless enrolled in such a program and activated 

16 by your utility company or another program operator. 

17 Confirm the availability of a program in your local area 

18 before purchasing or installing this product.’. 

19 ‘‘(B) REQUIREMENT.—The manufacturer 

20 or private labeler shall provide the activation 

21 key for a grid-enabled water heater only to a 

22 utility or other company that operates an elec23 tric thermal storage or demand response pro24 gram that uses such a grid-enabled water heat25 er. 


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1 ‘‘(C) REPORTS.— 

2 ‘‘(i) MANUFACTURERS.—The Sec3 retary shall require each manufacturer of 

4 grid-enabled water heaters to report to the 

5 Secretary annually the quantity of grid-en6 abled water heaters that the manufacturer 

7 ships each year. 

8 ‘‘(ii) OPERATORS.—The Secretary 

9 shall require utilities and other demand re10 sponse and thermal storage program oper11 ators to report annually the quantity of 

12 grid-enabled water heaters activated for 

13 their programs using forms of the Energy 

14 Information Agency or using such other 

15 mechanism that the Secretary determines 

16 appropriate after an opportunity for notice 

17 and comment. 

18 ‘‘(iii) CONFIDENTIALITY REQUIRE19 MENTS.—The Secretary shall treat ship20 ment data reported by manufacturers as 

21 confidential business information. 

22 ‘‘(D) PUBLICATION OF INFORMATION.— 

23 ‘‘(i) IN GENERAL.—In 2017 and 

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1 graph (C) to assess the extent to which 

2 shipped products are put into use in de3 mand response and thermal storage pro4 grams. 

5 ‘‘(ii) PREVENTION OF PRODUCT DI6 VERSION.—If the Secretary determines 

7 that sales of grid-enabled water heaters ex8 ceed by 15 percent or greater the quantity 

9 of such products activated for use in de10 mand response and thermal storage pro11 grams annually, the Secretary shall, after 

12 opportunity for notice and comment, estab13 lish procedures to prevent product diver14 sion for non-program purposes. 

15 ‘‘(E) COMPLIANCE.— 

16 ‘‘(i) IN GENERAL.—Subparagraphs 

17 (A) through (D) shall remain in effect 

18 until the Secretary determines under this 

19 section that— 

20 ‘‘(I) grid-enabled water heaters 

21 do not require a separate efficiency 

22 requirement; or 

23 ‘‘(II) sales of grid-enabled water 

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1 vated for use in demand response and 

2 thermal storage programs annually 

3 and procedures to prevent product di4 version for non-program purposes 

5 would not be adequate to prevent such 

6 product diversion. 

7 ‘‘(ii) EFFECTIVE DATE.—If the Sec8 retary exercises the authority described in 

9 clause (i) or amends the efficiency require10 ment for grid-enabled water heaters, that 

11 action will take effect on the date de12 scribed in subsection (m)(4)(A)(ii). 

13 ‘‘(iii) CONSIDERATION.—In carrying 

14 out this section with respect to electric 

15 water heaters, the Secretary shall consider 

16 the impact on thermal storage and demand 

17 response programs, including any impact 

18 on energy savings, electric bills, peak load 

19 reduction, electric reliability, integration of 

20 renewable resources, and the environment. 

21 ‘‘(iv) REQUIREMENTS.—In carrying 

22 out this paragraph, the Secretary shall re23 quire that grid-enabled water heaters be 

24 equipped with communication capability to 

25 enable the grid-enabled water heaters to 


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1 participate in ancillary services programs if 

2 the Secretary determines that the tech3 nology is available, practical, and cost-ef4 fective.’’; 

5 (2) in section 332(a) (42 U.S.C. 6302(a))— 

6 (A) in paragraph (5), by striking ‘‘or’’ at 

7 the end; 

8 (B) in the first paragraph (6), by striking 

9 the period at the end and inserting a semicolon; 

10 (C) by redesignating the second paragraph 

11 (6) as paragraph (7); 

12 (D) in subparagraph (B) of paragraph (7) 

13 (as so redesignated), by striking the period at 

14 the end and inserting ‘‘; or’’; and 

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

16 ‘‘(8) for any person— 

17 ‘‘(A) to activate an activation lock for a 

18 grid-enabled water heater with knowledge that 

19 such water heater is not used as part of an 

20 electric thermal storage or demand response 

21 program; 

22 ‘‘(B) to distribute an activation key for a 

23 grid-enabled water heater with knowledge that 

24 such activation key will be used to activate a 

25 grid-enabled water heater that is not used as 


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1 part of an electric thermal storage or demand 

2 response program; 

3 ‘‘(C) to otherwise enable a grid-enabled 

4 water heater to operate at its designed speci5 fication and capabilities with knowledge that 

6 such water heater is not used as part of an 

7 electric thermal storage or demand response 

8 program; or 

9 ‘‘(D) to knowingly remove or render illegi10 ble the label of a grid-enabled water heater de11 scribed in section 325(e)(6)(A)(ii)(V).’’; 

12 (3) in section 333(a) (42 U.S.C. 6303(a))— 

13 (A) by striking ‘‘section 332(a)(5)’’ and in14 serting ‘‘paragraph (5), (6), (7), or (8) of sec15 tion 332(a)’’; and 

16 (B) by striking ‘‘paragraph (1), (2), or (5) 

17 of section 332(a)’’ and inserting ‘‘paragraph 

18 (1), (2), (5), (6), (7), or (8) of section 332(a)’’; 

19 and 

20 (4) in section 334 (42 U.S.C. 6304)— 

21 (A) by striking ‘‘section 332(a)(5)’’ and in22 serting ‘‘paragraph (5), (6), (7), or (8) of sec23 tion 332(a)’’; and 

24 (B) by striking ‘‘section 332(a)(6)’’ and in25 serting ‘‘section 332(a)(7)’’. 


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1 Subtitle D—Energy Performance 

2 Requirement for Federal Buildings 

3 SEC. 431. ENERGY PERFORMANCE REQUIREMENT FOR FED4 ERAL BUILDINGS. 

5 Section 543 of the National Energy Conservation 

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

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

8 following: 

9 ‘‘(a) ENERGY PERFORMANCE REQUIREMENT FOR

10 FEDERAL BUILDINGS.— 

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

12 (2), each agency shall apply energy conservation 

13 measures to, and shall improve the design for the 

14 construction of, the Federal buildings of the agency 

15 (including each industrial or laboratory facility) so 

16 that the energy consumption per gross square foot 

17 of the Federal buildings of the agency in fiscal years 

18 2006 through 2017 is reduced, as compared with the 

19 energy consumption per gross square foot of the 

20 Federal buildings of the agency in fiscal year 2003, 

21 by the percentage specified in the following table: 

Percentage 

‘‘Fiscal Year Reduction 

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

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

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

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

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

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

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


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Percentage 

‘‘Fiscal Year Reduction 

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 

20 agency to apply energy conservation measures 

21 to, and improve the design for the construction 

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1 ing each industrial or laboratory facility) so 

2 that the energy consumption per gross square 

3 foot of the Federal buildings of the agency in 

4 each of fiscal years 2018 through 2030 is re5 duced, as compared with the energy consump6 tion per gross square foot of the Federal build7 ings of the agency in the prior fiscal year, by 

8 3 percent.’’; and 

9 (2) in subsection (f)— 

10 (A) in paragraph (1)— 

11 (i) by redesignating subparagraphs 

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

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

14 (ii) by inserting after subparagraph 

15 (D) the following: 

16 ‘‘(E) ONGOING COMMISSIONING.—The 

17 term ‘ongoing commissioning’ means an ongo18 ing process of commissioning using monitored 

19 data, the primary goal of which is to ensure 

20 continuous optimum performance of a facility, 

21 in accordance with design or operating needs, 

22 over the useful life of the facility, while meeting 

23 facility occupancy requirements.’’; 

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

25 the following: 


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1 ‘‘(C) ENERGY MANAGEMENT SYSTEM.—An 

2 energy manager designated under subparagraph 

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

4 energy use at the facility and certification of 

5 the facility in accordance with the International 

6 Organization for Standardization standard 

7 numbered 50001 and entitled ‘Energy Manage8 ment Systems’.’’; 

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

10 inserting the following: 

11 ‘‘(3) ENERGY AND WATER EVALUATIONS AND

12 COMMISSIONING.— 

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

14 in subparagraph (B), effective beginning on the 

15 date that is 180 days after the date of enact16 ment of the Energy Savings and Industrial 

17 Competitiveness Act of 2015, and annually 

18 thereafter, each energy manager shall complete, 

19 for each calendar year, a comprehensive energy 

20 and water evaluation and recommissioning or 

21 retrocommissioning for approximately 25 per22 cent of the facilities of each agency that meet 

23 the criteria under paragraph (2)(B) in a man24 ner that ensures that an evaluation of each fa25 cility is completed at least once every 4 years. 


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1 ‘‘(B) EXCEPTIONS.—An evaluation and re2 commissioning shall not be required under sub3 paragraph (A) with respect to a facility that— 

4 ‘‘(i) has had a comprehensive energy 

5 and water evaluation during the 8-year pe6 riod preceding the date of the evaluation; 

7 ‘‘(ii)(I) has been commissioned, re8 commissioned, or retrocommissioned dur9 ing the 10-year period preceding the date 

10 of the evaluation; or 

11 ‘‘(II) is under ongoing commissioning; 

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

13 function or use since the previous evalua14 tion and commissioning; 

15 ‘‘(iv) has been benchmarked with pub16 lic disclosure under paragraph (8) within 

17 the year preceding the evaluation; and 

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

19 has achieved at a facility level the most re20 cent cumulative energy savings target 

21 under subsection (a) compared to the ear22 lier of— 

23 ‘‘(aa) the date of the most recent 

24 evaluation; or 

25 ‘‘(bb) the date— 


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1 ‘‘(AA) of the most recent 

2 commissioning, recommissioning, 

3 or retrocommissioning; or 

4 ‘‘(BB) on which ongoing 

5 commissioning began; or 

6 ‘‘(II) has a long-term contract in 

7 place guaranteeing energy savings at least 

8 as great as the energy savings target under 

9 subclause (I). 

10 ‘‘(4) IMPLEMENTATION OF IDENTIFIED ENERGY

11 AND WATER EFFICIENCY MEASURES.— 

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

13 after the date of completion of each evaluation 

14 under paragraph (3), each energy manager 

15 may— 

16 ‘‘(i) implement any energy- or water17 saving measure that the Federal agency 

18 identified in the evaluation conducted 

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

20 effective; and 

21 ‘‘(ii) bundle individual measures of 

22 varying paybacks together into combined 

23 projects. 

24 ‘‘(B) MEASURES NOT IMPLEMENTED.— 

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1 tification system under paragraph (7), explain 

2 the reasons why any life-cycle cost effective 

3 measures were not implemented under subpara4 graph (A) using guidelines developed by the 

5 Secretary.’’; and 

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

7 end the following: 

8 ‘‘(iii) SUMMARY REPORT.—The Sec9 retary shall make available a report that 

10 summarizes the information tracked under 

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

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

13 SEC. 432. FEDERAL BUILDING ENERGY EFFICIENCY PER14 FORMANCE STANDARDS; CERTIFICATION 

15 SYSTEM AND LEVEL FOR GREEN BUILDINGS. 

16 (a) DEFINITIONS.—Section 303 of the Energy Con17 servation and Production Act (42 U.S.C. 6832) (as 

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

19 (1) in paragraph (6), by striking ‘‘to be con20 structed’’ and inserting ‘‘constructed or altered’’; 

21 and 

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

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

24 renovation’ means a modification of building energy 

25 systems sufficiently extensive that the whole building 


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1 can meet energy standards for new buildings, based 

2 on criteria to be established by the Secretary 

3 through notice and comment rulemaking.’’. 

4 (b) FEDERAL BUILDING EFFICIENCY STANDARDS.— 

5 Section 305 of the Energy Conservation and Production 

6 Act (42 U.S.C. 6834) is amended— 

7 (1) in subsection (a)(3)— 

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

9 and all that follows through subparagraph (B) 

10 and inserting the following: 

11 ‘‘(3) REVISED FEDERAL BUILDING ENERGY EF12 FICIENCY PERFORMANCE STANDARDS; CERTIFI13 CATION FOR GREEN BUILDINGS.— 

14 ‘‘(A) REVISED FEDERAL BUILDING EN15 ERGY EFFICIENCY PERFORMANCE STAND16 ARDS.— 

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

18 year after the date of enactment of the En19 ergy Savings and Industrial Competitive20 ness Act of 2015, the Secretary shall es21 tablish, by rule, revised Federal building 

22 energy efficiency performance standards 

23 that require that— 


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1 ‘‘(I) new Federal buildings and 

2 alterations and additions to existing 

3 Federal buildings— 

4 ‘‘(aa) meet or exceed the 

5 most recent revision of the Inter6 national Energy Conservation 

7 Code (in the case of residential 

8 buildings) or ASHRAE Standard 

9 90.1 (in the case of commercial 

10 buildings) as of the date of en11 actment of the Energy Savings 

12 and Industrial Competitiveness 

13 Act of 2015; and 

14 ‘‘(bb) meet or exceed the en15 ergy provisions of State and local 

16 building codes applicable to the 

17 building, if the codes are more 

18 stringent than the International 

19 Energy Conservation Code or 

20 ASHRAE Standard 90.1, as ap21 plicable; 

22 ‘‘(II) unless demonstrated not to 

23 be life-cycle cost effective for new 

24 Federal buildings and Federal build25 ings with major renovations— 


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1 ‘‘(aa) the buildings be de2 signed to achieve energy con3 sumption levels that are at least 

4 30 percent below the levels estab5 lished in the version of the 

6 ASHRAE Standard or the Inter7 national Energy Conservation 

8 Code, as appropriate, that is ap9 plied under subclause (I)(aa), in10 cluding updates under subpara11 graph (B); and 

12 ‘‘(bb) sustainable design 

13 principles are applied to the loca14 tion, siting, design, and construc15 tion of all new Federal buildings 

16 and replacement Federal build17 ings; 

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

19 energy efficiency, water conservation 

20 technologies shall be applied to the ex21 tent that the technologies are life22 cycle cost effective; and 

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

24 as compared to other reasonably avail25 able technologies, not less than 30 


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1 percent of the hot water demand for 

2 each new Federal building or Federal 

3 building undergoing a major renova4 tion be met through the installation 

5 and use of solar hot water heaters. 

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

7 not apply to unaltered portions of existing 

8 Federal buildings and systems that have 

9 been added to or altered. 

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

11 after the date of approval of each subsequent 

12 revision of the ASHRAE Standard or the Inter13 national Energy Conservation Code, as appro14 priate, the Secretary shall determine whether 

15 the revised standards established under sub16 paragraph (A) should be updated to reflect the 

17 revisions, based on the energy savings and life18 cycle cost-effectiveness of the revisions.’’; 

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

20 In the budget request’’ and inserting the fol21 lowing: 

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

23 request’’; and 

24 (C) by striking subparagraph (D) and in25 serting the following: 


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1 ‘‘(D) CERTIFICATION FOR GREEN BUILD2 INGS.— 

3 ‘‘(i) SUSTAINABLE DESIGN PRIN4 CIPLES.—Sustainable design principles 

5 shall be applied to the siting, design, and 

6 construction of buildings covered by this 

7 subparagraph. 

8 ‘‘(ii) SELECTION OF CERTIFICATION

9 SYSTEMS.—The Secretary, after reviewing 

10 the findings of the Federal Director under 

11 section 436(h) of the Energy Independence 

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

13 17092(h)), in consultation with the Admin14 istrator of General Services, and in con15 sultation with the Secretary of Defense re16 lating to those facilities under the custody 

17 and control of the Department of Defense, 

18 shall determine those certification systems 

19 for green commercial and residential build20 ings that the Secretary determines to be 

21 the most likely to encourage a comprehen22 sive and environmentally sound approach 

23 to certification of green buildings. 

24 ‘‘(iii) BASIS FOR SELECTION.—The 

25 determination of the certification systems 


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1 under clause (ii) shall be based on ongoing 

2 review of the findings of the Federal Direc3 tor under section 436(h) of the Energy 

4 Independence and Security Act of 2007 

5 (42 U.S.C. 17092(h)) and the criteria de6 scribed in clause (v). 

7 ‘‘(iv) ADMINISTRATION.—In deter8 mining certification systems under this 

9 subparagraph, the Secretary shall— 

10 ‘‘(I) make a separate determina11 tion for all or part of each system; 

12 ‘‘(II) confirm that the criteria 

13 used to support the selection of build14 ing products, materials, brands, and 

15 technologies are fair and neutral 

16 (meaning that such criteria are based 

17 on an objective assessment of relevant 

18 technical data), do not prohibit, dis19 favor, or discriminate against selec20 tion based on technically inadequate 

21 information to inform human or envi22 ronmental risk, and are expressed to 

23 prefer performance measures when24 ever performance measures may reaVerDate Sep 11 2014 03:55 May 12, 2015 Jkt 049200 PO 00000 Frm 00105 Fmt 6652 Sfmt 6201 E:\BILLS\H2177.IH H2177

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1 sonably be used in lieu of prescriptive 

2 measures; and 

3 ‘‘(III) use environmental and 

4 health criteria that are based on risk 

5 assessment methodology that is gen6 erally accepted by the applicable sci7 entific disciplines. 

8 ‘‘(v) CONSIDERATIONS.—In deter9 mining the green building certification sys10 tems under this subparagraph, the Sec11 retary shall take into consideration— 

12 ‘‘(I) the ability and availability of 

13 assessors and auditors to independ14 ently verify the criteria and measure15 ment of metrics at the scale necessary 

16 to implement this subparagraph; 

17 ‘‘(II) the ability of the applicable 

18 certification organization to collect 

19 and reflect public comment; 

20 ‘‘(III) the ability of the standard 

21 to be developed and revised through a 

22 consensus-based process; 

23 ‘‘(IV) an evaluation of the 

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1 performance green building, which 

2 shall give credit for promoting— 

3 ‘‘(aa) efficient and sustain4 able use of water, energy, and 

5 other natural resources; 

6 ‘‘(bb) use of renewable en7 ergy sources; 

8 ‘‘(cc) improved indoor envi9 ronmental quality through en10 hanced indoor air quality, ther11 mal comfort, acoustics, day light12 ing, pollutant source control, and 

13 use of low-emission materials and 

14 building system controls; and 

15 ‘‘(dd) such other criteria as 

16 the Secretary determines to be 

17 appropriate; and 

18 ‘‘(V) national recognition within 

19 the building industry. 

20 ‘‘(vi) REVIEW.—The Secretary, in 

21 consultation with the Administrator of 

22 General Services and the Secretary of De23 fense, shall conduct an ongoing review to 

24 evaluate and compare private sector green 


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1 building certification systems, taking into 

2 account— 

3 ‘‘(I) the criteria described in 

4 clause (v); and 

5 ‘‘(II) the identification made by 

6 the Federal Director under section 

7 436(h) of the Energy Independence 

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

9 17092(h)). 

10 ‘‘(vii) EXCLUSIONS.— 

11 ‘‘(I) IN GENERAL.—Subject to 

12 subclause (II), if a certification sys13 tem fails to meet the review require14 ments of clause (v), the Secretary 

15 shall— 

16 ‘‘(aa) identify the portions 

17 of the system, whether pre18 requisites, credits, points, or oth19 erwise, that meet the review cri20 teria of clause (v); 

21 ‘‘(bb) determine the portions 

22 of the system that are suitable 

23 for use; and 


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1 ‘‘(cc) exclude all other por2 tions of the system from identi3 fication and use. 

4 ‘‘(II) ENTIRE SYSTEMS.—The 

5 Secretary shall exclude an entire sys6 tem from use if an exclusion under 

7 subclause (I)— 

8 ‘‘(aa) impedes the integrated 

9 use of the system; 

10 ‘‘(bb) creates disparate re11 view criteria or unequal point ac12 cess for competing materials; or 

13 ‘‘(cc) increases agency costs 

14 of the use. 

15 ‘‘(viii) INTERNAL CERTIFICATION

16 PROCESSES.—The Secretary may by rule 

17 allow Federal agencies to develop internal 

18 certification processes, using certified pro19 fessionals, in lieu of certification by certifi20 cation entities identified under clause (ii). 

21 ‘‘(ix) PRIVATIZED MILITARY HOUS22 ING.—With respect to privatized military 

23 housing, the Secretary of Defense, after 

24 consultation with the Secretary may, 

25 through rulemaking, develop alternative 


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1 certification systems and levels than the 

2 systems and levels identified under clause 

3 (ii) that achieve an equivalent result in 

4 terms of energy savings, sustainable de5 sign, and green building performance. 

6 ‘‘(x) WATER CONSERVATION TECH7 NOLOGIES.—In addition to any use of 

8 water conservation technologies otherwise 

9 required by this section, water conservation 

10 technologies shall be applied to the extent 

11 that the technologies are life-cycle cost-ef12 fective. 

13 ‘‘(xi) EFFECTIVE DATE.— 

14 ‘‘(I) DETERMINATIONS MADE

15 AFTER DECEMBER 31, 2015.—The 

16 amendments made by section 

17 432(b)(1)(C) of Energy Savings and 

18 Industrial Competitiveness Act of 

19 2015 shall apply to any determination 

20 made by a Federal agency after De21 cember 31, 2015. 

22 ‘‘(II) DETERMINATIONS MADE ON

23 OR BEFORE DECEMBER 31, 2015.— 

24 This subparagraph (as in effect on the 

25 day before the date of enactment of 


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1 Energy Savings and Industrial Com2 petitiveness Act of 2015) shall apply 

3 to any use of a certification system 

4 for green commercial and residential 

5 buildings by a Federal agency on or 

6 before December 31, 2015.’’; and 

7 (2) by striking subsections (c) and (d) and in8 serting the following: 

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

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

11 building energy standards established under this sec12 tion; and 

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

14 (1), if the Secretary determines that significant en15 ergy savings would result, upgrade the standards to 

16 include all new energy efficiency and renewable en17 ergy measures that are technologically feasible and 

18 economically justified.’’. 

19 SEC. 433. ENHANCED ENERGY EFFICIENCY UNDER20 WRITING. 

21 (a) DEFINITIONS.—In this section: 

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

23 agency’’— 

24 (A) means— 


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1 (i) an executive agency, as that term 

2 is defined in section 102 of title 31, United 

3 States Code; and 

4 (ii) any other agency of the Federal 

5 Government; and 

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

7 defined under section 1303 of the Federal 

8 Housing Enterprises Financial Safety and 

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

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

11 means a loan secured by a home that is issued, in12 sured, purchased, or securitized by a covered agency. 

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

14 means the mortgagor under a covered loan. 

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

16 means— 

17 (A) an original lender under a covered loan 

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

19 which that mortgage transaction is con20 summated; 

21 (B) any affiliate, agent, subsidiary, suc22 cessor, or assignee of an original lender under 

23 a covered loan or the holder of a covered loan 

24 at the time at which that mortgage transaction 

25 is consummated; 


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

2 (D) any subsequent purchaser, trustee, or 

3 transferee of any covered loan issued by an 

4 original lender. 

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

6 the Secretary of Housing and Urban Development. 

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

8 person or entity responsible for the servicing of a 

9 covered loan, including the person or entity who 

10 makes or holds a covered loan if that person or enti11 ty also services the covered loan. 

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

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

14 Estate Settlement Procedures Act of 1974 (12 

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

16 (b) FINDINGS AND PURPOSES.— 

17 (1) FINDINGS.—Congress finds that— 

18 (A) energy costs for homeowners are a sig19 nificant and increasing portion of their house20 hold budgets; 

21 (B) household energy use can vary sub22 stantially depending on the efficiency and char23 acteristics of the house; 

24 (C) expected energy cost savings are im25 portant to the value of the house; 


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1 (D) the current test for loan affordability 

2 used by most covered agencies, commonly 

3 known as the ‘‘debt-to-income’’ test, is inad4 equate because it does not take into account the 

5 expected energy cost savings for the homeowner 

6 of an energy efficient home; and 

7 (E) another loan limitation, commonly 

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

9 appraisal, which often does not adjust for effi10 ciency features of houses. 

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

12 are to— 

13 (A) improve the accuracy of mortgage un14 derwriting by Federal mortgage agencies by en15 suring that energy cost savings are included in 

16 the underwriting process as described below, 

17 and thus to reduce the amount of energy con18 sumed by homes and to facilitate the creation 

19 of energy efficiency retrofit and construction 

20 jobs; 

21 (B) require a covered agency to include the 

22 expected energy cost savings of a homeowner as 

23 a regular expense in the tests, such as the debt24 to-income test, used to determine the ability of 


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1 the loan applicant to afford the cost of home2 ownership for all loan programs; and 

3 (C) require a covered agency to include the 

4 value home buyers place on the energy effi5 ciency of a house in tests used to compare the 

6 mortgage amount to home value, taking pre7 cautions to avoid double-counting and to sup8 port safe and sound lending. 

9 (c) ENHANCED ENERGY EFFICIENCY UNDER10 WRITING CRITERIA.— 

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

12 the date of enactment of this Act, the Secretary 

13 shall, in consultation with the advisory group estab14 lished in subsection (f)(2), develop and issue guide15 lines for a covered agency to implement enhanced 

16 loan eligibility requirements, for use when testing 

17 the ability of a loan applicant to repay a covered 

18 loan, that account for the expected energy cost sav19 ings for a loan applicant at a subject property, in 

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

21 (2) REQUIREMENTS TO ACCOUNT FOR ENERGY

22 COST SAVINGS.—The enhanced loan eligibility re23 quirements under paragraph (1) shall require that, 

24 for all covered loans for which an energy efficiency 

25 report is voluntarily provided to the mortgagee by 


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1 the mortgagor, the covered agency and the mort2 gagee shall take into consideration the estimated en3 ergy cost savings expected for the owner of the sub4 ject property in determining whether the loan appli5 cant has sufficient income to service the mortgage 

6 debt plus other regular expenses. To the extent that 

7 a covered agency uses a test such as a debt-to-in8 come test that includes certain regular expenses, 

9 such as hazard insurance and property taxes, the ex10 pected energy cost savings shall be included as an 

11 offset to these expenses. Energy costs to be assessed 

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

13 any other fuel regularly used to supply energy to the 

14 subject property. 

15 (3) DETERMINATION OF ESTIMATED ENERGY

16 COST SAVINGS.— 

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

18 issued under paragraph (1) shall include in19 structions for the covered agency to calculate 

20 estimated energy cost savings using— 

21 (i) the energy efficiency report; 

22 (ii) an estimate of baseline average 

23 energy costs; and 

24 (iii) additional sources of information 

25 as determined by the Secretary. 


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1 (B) REPORT REQUIREMENTS.—For the 

2 purposes of subparagraph (A), an energy effi3 ciency report shall— 

4 (i) estimate the expected energy cost 

5 savings specific to the subject property, 

6 based on specific information about the 

7 property; 

8 (ii) be prepared in accordance with 

9 the guidelines to be issued under para10 graph (1); and 

11 (iii) be prepared— 

12 (I) in accordance with the Resi13 dential Energy Service Network’s 

14 Home Energy Rating System (com15 monly known as ‘‘HERS’’) by an indi16 vidual certified by the Residential En17 ergy Service Network, unless the Sec18 retary finds that the use of HERS 

19 does not further the purposes of this 

20 section; or 

21 (II) by other methods approved 

22 by the Secretary, in consultation with 

23 the Secretary of Energy and the advi24 sory group established in subsection 

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


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1 which shall include a third-party qual2 ity assurance procedure. 

3 (C) USE BY APPRAISER.—If an energy ef4 ficiency report is used under paragraph (2), the 

5 energy efficiency report shall be provided to the 

6 appraiser to estimate the energy efficiency of 

7 the subject property and for potential adjust8 ments for energy efficiency. 

9 (4) REQUIRED DISCLOSURE TO CONSUMER FOR

10 A HOME WITH AN ENERGY EFFICIENCY REPORT.— 

11 If an energy efficiency report is used under para12 graph (2), the guidelines to be issued under para13 graph (1) shall require the mortgagee to— 

14 (A) inform the loan applicant of the ex15 pected energy costs as estimated in the energy 

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

17 prescribed by the Secretary, and if practicable, 

18 in the documents delivered at the time of loan 

19 application; and 

20 (B) include the energy efficiency report in 

21 the documentation for the loan provided to the 

22 borrower. 

23 (5) REQUIRED DISCLOSURE TO CONSUMER FOR

24 A HOME WITHOUT AN ENERGY EFFICIENCY RE25 PORT.—If an energy efficiency report is not used 


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

2 under paragraph (1) shall require the mortgagee to 

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

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

5 the documents delivered at the time of loan applica6 tion of— 

7 (A) typical energy cost savings that would 

8 be possible from a cost-effective energy upgrade 

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

10 subject property; 

11 (B) the impact the typical energy cost sav12 ings would have on monthly ownership costs of 

13 a typical home; 

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

15 that could be obtained if the typical energy cost 

16 savings were reflected in an energy efficiency 

17 report; and 

18 (D) resources for improving the energy ef19 ficiency of a home. 

20 (6) PRICING OF LOANS.— 

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

22 price covered loans originated under the en23 hanced loan eligibility requirements required 

24 under this section in accordance with the esti25 mated risk of the loans. 


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1 (B) IMPOSITION OF CERTAIN MATERIAL

2 COSTS, IMPEDIMENTS, OR PENALTIES.—In the 

3 absence of a publicly disclosed analysis that 

4 demonstrates significant additional default risk 

5 or prepayment risk associated with the loans, a 

6 covered agency shall not impose material costs, 

7 impediments, or penalties on covered loans 

8 merely because the loan uses an energy effi9 ciency report or the enhanced loan eligibility re10 quirements required under this section. 

11 (7) LIMITATIONS.— 

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

13 price covered loans originated under the en14 hanced loan eligibility requirements required 

15 under this section in accordance with the esti16 mated risk of those loans. 

17 (B) PROHIBITED ACTIONS.—A covered 

18 agency shall not— 

19 (i) modify existing underwriting cri20 teria or adopt new underwriting criteria 

21 that intentionally negate or reduce the im22 pact of the requirements or resulting bene23 fits that are set forth or otherwise derived 

24 from the enhanced loan eligibility require25 ments required under this subsection; or 


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1 (ii) impose greater buy back require2 ments, credit overlays, or insurance re3 quirements, including private mortgage in4 surance, on covered loans merely because 

5 the loan uses an energy efficiency report or 

6 the enhanced loan eligibility requirements 

7 required under this subsection. 

8 (8) APPLICABILITY AND IMPLEMENTATION

9 DATE.—Not later than 3 years after the date of en10 actment of this Act, and before December 31, 2017, 

11 the enhanced loan eligibility requirements required 

12 under this subsection shall be implemented by each 

13 covered agency to— 

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

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

16 home; 

17 (B) be available on any residential real 

18 property (including individual units of con19 dominiums and cooperatives) that qualifies for 

20 a covered loan; and 

21 (C) provide prospective mortgagees with 

22 sufficient guidance and applicable tools to im23 plement the required underwriting methods. 

24 (d) ENHANCED ENERGY EFFICIENCY UNDER25 WRITING VALUATION GUIDELINES.— 


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

2 the date of enactment of this Act, the Secretary 

3 shall— 

4 (A) in consultation with the Federal Fi5 nancial Institutions Examination Council and 

6 the advisory group established in subsection 

7 (f)(2), develop and issue guidelines for a cov8 ered agency to determine the maximum per9 mitted loan amount based on the value of the 

10 property for all covered loans made on prop11 erties with an energy efficiency report that 

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

13 and 

14 (B) in consultation with the Secretary of 

15 Energy, issue guidelines for a covered agency to 

16 determine the estimated energy savings under 

17 paragraph (3) for properties with an energy ef18 ficiency report. 

19 (2) REQUIREMENTS.—The enhanced energy ef20 ficiency underwriting valuation guidelines required 

21 under paragraph (1) shall include— 

22 (A) a requirement that if an energy effi23 ciency report that meets the requirements of 

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

25 the mortgagee, such report shall be used by the 


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1 mortgagee or covered agency to determine the 

2 estimated energy savings of the subject prop3 erty; and 

4 (B) a requirement that the estimated en5 ergy savings of the subject property be added to 

6 the appraised value of the subject property by 

7 a mortgagee or covered agency for the purpose 

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

9 subject property, unless the appraisal includes 

10 the value of the overall energy efficiency of the 

11 subject property, using methods to be estab12 lished under the guidelines issued under para13 graph (1). 

14 (3) DETERMINATION OF ESTIMATED ENERGY

15 SAVINGS.— 

16 (A) AMOUNT OF ENERGY SAVINGS.—The 

17 amount of estimated energy savings shall be de18 termined by calculating the difference between 

19 the estimated energy costs for the average com20 parable houses, as determined in guidelines to 

21 be issued under paragraph (1), and the esti22 mated energy costs for the subject property 

23 based upon the energy efficiency report. 

24 (B) DURATION OF ENERGY SAVINGS.—The 

25 duration of the estimated energy savings shall 


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1 be based upon the estimated life of the applica2 ble equipment, consistent with the rating sys3 tem used to produce the energy efficiency re4 port. 

5 (C) PRESENT VALUE OF ENERGY SAV6 INGS.—The present value of the future savings 

7 shall be discounted using the average interest 

8 rate on conventional 30-year mortgages, in the 

9 manner directed by guidelines issued under 

10 paragraph (1). 

11 (4) ENSURING CONSIDERATION OF ENERGY EF12 FICIENT FEATURES.—Section 1110 of the Financial 

13 Institutions Reform, Recovery, and Enforcement Act 

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

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

16 and inserting a semicolon; and 

17 (B) in paragraph (3), by striking the pe18 riod at the end and inserting ‘‘; and’’ and in19 serting after paragraph (3) the following: 

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

21 have timely access, whenever practicable, to informa22 tion from the property owner and the lender that 

23 may be relevant in developing an opinion of value re24 garding the energy- and water-saving improvements 

25 or features of a property, such as— 


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

2 ‘‘(B) installed appliances, measures, sys3 tems or technologies; 

4 ‘‘(C) blueprints; 

5 ‘‘(D) construction costs; 

6 ‘‘(E) financial or other incentives regard7 ing energy- and water-efficient components and 

8 systems installed in a property; 

9 ‘‘(F) utility bills; 

10 ‘‘(G) energy consumption and 

11 benchmarking data; and 

12 ‘‘(H) third-party verifications or represen13 tations of energy and water efficiency perform14 ance of a property, observing all financial pri15 vacy requirements adhered to by certified and 

16 licensed appraisers, including section 501 of the 

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

18 Unless a property owner consents to a lender, an ap19 praiser, in carrying out the requirements of para20 graph (4), shall not have access to the commercial 

21 or financial information of the owner that is privi22 leged or confidential.’’. 

23 (5) TRANSACTIONS REQUIRING STATE CER24 TIFIED APPRAISERS.—Section 1113 of the Financial 


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1 Institutions Reform, Recovery, and Enforcement Act 

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

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

4 the semicolon the following: ‘‘, or any real prop5 erty on which the appraiser makes adjustments 

6 using an energy efficiency report’’; and 

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

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

9 which the appraiser makes adjustments using 

10 an energy efficiency report.’’. 

11 (6) PROTECTIONS.— 

12 (A) AUTHORITY TO IMPOSE LIMITA13 TIONS.—The guidelines to be issued under 

14 paragraph (1) shall include such limitations and 

15 conditions as determined by the Secretary to be 

16 necessary to protect against meaningful under 

17 or over valuation of energy cost savings or du18 plicative counting of energy efficiency features 

19 or energy cost savings in the valuation of any 

20 subject property that is used to determine a 

21 loan amount. 

22 (B) ADDITIONAL AUTHORITY.—At the end 

23 of the 7-year period following the implementa24 tion of enhanced eligibility and underwriting 

25 valuation requirements under this section, the 


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1 Secretary may modify or apply additional ex2 ceptions to the approach described in paragraph 

3 (2), where the Secretary finds that the 

4 unadjusted appraisal will reflect an accurate 

5 market value of the efficiency of the subject 

6 property or that a modified approach will better 

7 reflect an accurate market value. 

8 (7) APPLICABILITY AND IMPLEMENTATION

9 DATE.—Not later than 3 years after the date of en10 actment of this Act, and before December 31, 2017, 

11 each covered agency shall implement the guidelines 

12 required under this subsection, which shall— 

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

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

15 home; and 

16 (B) be available on any residential real 

17 property, including individual units of con18 dominiums and cooperatives, that qualifies for a 

19 covered loan. 

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

21 date on which the enhanced eligibility and underwriting 

22 valuation requirements are implemented under this sec23 tion, and every year thereafter, each covered agency with 

24 relevant activity shall issue and make available to the pub25 lic a report that— 


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1 (1) enumerates the number of covered loans of 

2 the agency for which there was an energy efficiency 

3 report, and that used energy efficiency appraisal 

4 guidelines and enhanced loan eligibility require5 ments; 

6 (2) includes the default rates and rates of fore7 closures for each category of loans; and 

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

9 agency has priced into covered loans for which there 

10 was an energy efficiency report. 

11 (f) RULEMAKING.— 

12 (1) IN GENERAL.—The Secretary shall pre13 scribe regulations to carry out this section, in con14 sultation with the Secretary of Energy and the advi15 sory group established in paragraph (2), which may 

16 contain such classifications, differentiations, or other 

17 provisions, and may provide for such proper imple18 mentation and appropriate treatment of different 

19 types of transactions, as the Secretary determines 

20 are necessary or proper to effectuate the purposes of 

21 this section, to prevent circumvention or evasion 

22 thereof, or to facilitate compliance therewith. 

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

24 out this section, the Secretary shall establish an adVerDate Sep 11 2014 03:55 May 12, 2015 Jkt 049200 PO 00000 Frm 00128 Fmt 6652 Sfmt 6201 E:\BILLS\H2177.IH H2177

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1 visory group, consisting of individuals representing 

2 the interests of— 

3 (A) mortgage lenders; 

4 (B) appraisers; 

5 (C) energy raters and residential energy 

6 consumption experts; 

7 (D) energy efficiency organizations; 

8 (E) real estate agents; 

9 (F) home builders and remodelers; 

10 (G) State energy officials; and 

11 (H) others as determined by the Secretary. 

12 (g) ADDITIONAL STUDY.— 

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

14 after the date of enactment of this Act, the Sec15 retary shall reconvene the advisory group established 

16 in subsection (f)(2), in addition to water and loca17 tional efficiency experts, to advise the Secretary on 

18 the implementation of the enhanced energy efficiency 

19 underwriting criteria established in subsections (c) 

20 and (d). 

21 (2) RECOMMENDATIONS.—The advisory group 

22 established in subsection (f)(2) shall provide rec23 ommendations to the Secretary on any revisions or 

24 additions to the enhanced energy efficiency under25 writing criteria deemed necessary by the group, 


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1 which may include alternate methods to better ac2 count for home energy costs and additional factors 

3 to account for substantial and regular costs of home4 ownership such as location-based transportation 

5 costs and water costs. The Secretary shall forward 

6 any legislative recommendations from the advisory 

7 group to Congress for its consideration. 

8 Subtitle E—Voluntary Verification 

9 Programs for Air Conditioning, 

10 Furnace, Boiler, Heat Pump, 

11 and Water Heater Products 

12 SEC. 441. VOLUNTARY VERIFICATION PROGRAMS FOR AIR 

13 CONDITIONING, FURNACE, BOILER, HEAT 

14 PUMP, AND WATER HEATER PRODUCTS. 

15 Section 326(b) of the Energy Policy and Conserva16 tion Act (42 U.S.C. 6296(b)) is amended by adding at 

17 the end the following: 

18 ‘‘(6) VOLUNTARY VERIFICATION PROGRAMS FOR

19 AIR CONDITIONING, FURNACE, BOILER, HEAT PUMP, 

20 AND WATER HEATER PRODUCTS.— 

21 ‘‘(A) RELIANCE ON VOLUNTARY PRO22 GRAMS.—For the purpose of verifying compli23 ance with energy conservation standards and 

24 Energy Star specifications established under 

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1 ucts described in paragraphs (3), (4), (5), (9), 

2 and (11) of section 322(a) and covered equip3 ment described in subparagraphs (B), (C), (D), 

4 (F), (I), (J), and (K) of section 340(1), the 

5 Secretary and the Administrator of the Envi6 ronmental Protection Agency shall rely on vol7 untary verification programs that are recog8 nized by the Secretary in accordance with sub9 paragraph (B). 

10 ‘‘(B) RECOGNITION OF VOLUNTARY

11 VERIFICATION PROGRAMS.— 

12 ‘‘(i) IN GENERAL.—Not later than 

13 180 days after the date of enactment of 

14 this paragraph, the Secretary and the Ad15 ministrator of the Environmental Protec16 tion Agency shall initiate a negotiated rule17 making in accordance with subchapter III 

18 of chapter 5 of title 5, United States Code 

19 (commonly known as the ‘Negotiated Rule20 making Act of 1990’) to develop criteria 

21 that have consensus support for achieving 

22 recognition by the Secretary as an ap23 proved voluntary verification program. 

24 ‘‘(ii) MINIMUM REQUIREMENTS.—The 

25 criteria developed under clause (i) shall, at 


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1 a minimum, ensure that the voluntary 

2 verification program— 

3 ‘‘(I) is nationally recognized; 

4 ‘‘(II) satisfies any applicable ele5 ments of— 

6 ‘‘(aa) International Organi7 zation for Standardization stand8 ard numbered 17025; and 

9 ‘‘(bb) any other relevant 

10 International Organization for 

11 Standardization standards identi12 fied and agreed to through the 

13 negotiated rulemaking under 

14 clause (i); 

15 ‘‘(III) at least annually tests 

16 products following the test procedures 

17 established under this title to verify 

18 the certified rating of a representative 

19 sample of products and equipment 

20 within the scope of the program; 

21 ‘‘(IV) maintains a publicly avail22 able list of all certified products and 

23 equipment and their certified ratings; 

24 ‘‘(V) requires the changing of the 

25 performance rating or removal of the 


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1 product or equipment from the pro2 gram if testing determines that the 

3 performance rating does not meet the 

4 levels the manufacturer has certified 

5 to the Secretary; 

6 ‘‘(VI) requires the qualification 

7 of new participants in the program 

8 through testing and production of test 

9 reports; 

10 ‘‘(VII) allows for challenge test11 ing of products and equipment within 

12 the scope of the program; 

13 ‘‘(VIII) requires program partici14 pants to certify the performance rat15 ing of all covered products and equip16 ment within the scope of the program 

17 for the covered product or equipment; 

18 ‘‘(IX) provides to the Secretary— 

19 ‘‘(aa) an annual report of all 

20 test results, the contents of which 

21 shall be determined through the 

22 negotiated rulemaking process 

23 under clause (i); 


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1 ‘‘(bb) prompt notification 

2 when program testing results 

3 in— 

4 ‘‘(AA) the rerating of 

5 the performance rating of a 

6 product or equipment; or 

7 ‘‘(BB) the delisting of a 

8 product or equipment; and 

9 ‘‘(cc) test reports, on the re10 quest of the Secretary or the Ad11 ministrator of the Environmental 

12 Protection Agency, that note any 

13 instructions specified by the man14 ufacturer or the representative of 

15 the manufacturer for the purpose 

16 of conducting the verification 

17 testing, to be exempted from dis18 closure under section 552(b)(4) 

19 of title 5, United States Code 

20 (commonly known as the ‘Free21 dom of Information Act’); and 

22 ‘‘(X) satisfies any additional re23 quirements or standards that the Sec24 retary and Administrator of the Envi25 ronmental Protection Agency shall esVerDate Sep 11 2014 03:55 May 12, 2015 Jkt 049200 PO 00000 Frm 00134 Fmt 6652 Sfmt 6201 E:\BILLS\H2177.IH H2177

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1 tablish consistent with this subpara2 graph. 

3 ‘‘(iii) REVISION OF CRITERIA.— 

4 ‘‘(I) IN GENERAL.—The Sec5 retary and the Administrator of the 

6 Environmental Protection Agency may 

7 revise the criteria established under 

8 clause (ii) by initiating— 

9 ‘‘(aa) a notice of proposed 

10 rulemaking in accordance with 

11 section 553(b) of title 5, United 

12 States Code, on publication of a 

13 determination in the Federal 

14 Register that revisions to the cri15 teria are necessary; or 

16 ‘‘(bb) a direct final rule in 

17 accordance with section 

18 553(b)(3)(B) of title 5, United 

19 States Code, on publication of a 

20 determination in the Federal 

21 Register that revisions to the cri22 teria are necessary and that sub23 stantive opposition to the pro24 posed revisions is not expected. 


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1 ‘‘(II) EFFECT OF DIRECT FINAL

2 RULE.— 

3 ‘‘(aa) FULL FORCE AND EF4 FECT.—If the Secretary does not 

5 receive adversarial comments 

6 during the 30-day period fol7 lowing publication of the deter8 mination in the Federal Register 

9 under subclause (I)(bb), the di10 rect final rule shall have full 

11 force and effect. 

12 ‘‘(bb) WITHDRAWAL.—If the 

13 Secretary receives adversarial 

14 comments during the 30-day pe15 riod following publication of the 

16 determination in the Federal 

17 Register under subclause (I)(bb), 

18 the Secretary shall withdraw the 

19 direct final rule and publish a no20 tice of proposed rulemaking in 

21 accordance with subclause 

22 (I)(aa). 

23 ‘‘(C) ADMINISTRATION.— 


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1 ‘‘(i) IN GENERAL.—The Secretary and 

2 the Administrator of the Environmental 

3 Protection Agency shall not require— 

4 ‘‘(I) manufacturers to participate 

5 in a voluntary verification program 

6 described in subparagraph (A); or 

7 ‘‘(II) participating manufacturers 

8 to provide information that can be ob9 tained through a voluntary 

10 verification program described in sub11 paragraph (A). 

12 ‘‘(ii) LIST OF COVERED PRODUCTS.— 

13 The Secretary or the Administrator of the 

14 Environmental Protection Agency may 

15 maintain a publicly available list of covered 

16 products and equipment certified under 

17 this section that distinguishes between— 

18 ‘‘(I) covered products and equip19 ment certified by a voluntary 

20 verification program described in sub21 paragraph (A); and 

22 ‘‘(II) products not certified by a 

23 voluntary verification program de24 scribed in subparagraph (A). 


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1 ‘‘(iii) PERIODIC VERIFICATION TEST2 ING.—The Secretary— 

3 ‘‘(I) shall not subject products or 

4 equipment that are certified under a 

5 voluntary verification program de6 scribed in subparagraph (A) to peri7 odic verification testing that verifies 

8 the accuracy of the certified perform9 ance rating of the products or equip10 ment; but 

11 ‘‘(II) may test products or equip12 ment described in subclause (I) if the 

13 testing is necessary— 

14 ‘‘(aa) to assess the overall 

15 performance of a voluntary 

16 verification program; 

17 ‘‘(bb) to address specific 

18 performance issues; 

19 ‘‘(cc) to determine other per20 formance characteristics for use 

21 in updating test procedures and 

22 standards; or 

23 ‘‘(dd) for other purposes 

24 consistent with this title. 


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1 ‘‘(D) EFFECT ON OTHER AUTHORITY.— 

2 Nothing in this paragraph limits the authority 

3 of the Secretary or the Administrator of the 

4 Environmental Protection Agency to enforce 

5 compliance with any law.’’. 

6 TITLE V—MISCELLANEOUS 

7 SEC. 501. BUDGETARY EFFECTS. 

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

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

10 shall be determined by reference to the latest statement 

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

12 Act, submitted for printing in the Congressional Record 

13 by the Chairman of the Senate Budget Committee, pro14 vided that such statement has been submitted prior to the 

15 vote on passage. 

16 SEC. 502. ADVANCE APPROPRIATIONS REQUIRED. 

17 The authorization of amounts under this Act and the 

18 amendments made by this Act shall be effective for any 

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

20 in advance in appropriations Acts. 

Æ 


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