II 

Calendar No. 368 

113TH CONGRESS 

2D SESSION S. 2262 

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

other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 28, 2014 

Mrs. SHAHEEN (for herself, Mr. PORTMAN, Ms. AYOTTE, Mr. BENNET, Ms. 

COLLINS, Mr. COONS, Mr. FRANKEN, Mr. HOEVEN, Mr. ISAKSON, Ms. 

LANDRIEU, Mr. MANCHIN, Ms. MURKOWSKI, Mr. WARNER, and Mr. 

WICKER) introduced the following bill; which was read the first time 

APRIL 29, 2014 

Read the second time and placed on the calendar 

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 2014’’. 


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

2 this Act is as follows: 

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—Electric Motor Rebate Program 

Sec. 221. Energy saving motor control, electric motor, and advanced motor systems 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. 


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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 

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—Third Party Testing 

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

heat pump, and water heater products. 

TITLE V—MISCELLANEOUS 

Sec. 501. Offset. 

Sec. 502. Budgetary effects. 

Sec. 503. 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— 


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

2 the following: 

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

4 term ‘model building energy code’ means a voluntary 

5 building energy code and standards developed and 

6 updated through a consensus process among inter7 ested persons, such as the IECC or the code used 

8 by— 

9 ‘‘(A) the Council of American Building Of10 ficials, or its legal successor, International Code 

11 Council, Inc.; 

12 ‘‘(B) the American Society of Heating, Re13 frigerating, and Air-Conditioning Engineers; or 

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

15 and 

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

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

18 International Energy Conservation Code. 

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

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

21 Native American Housing Assistance and Self-De22 termination Act of 1996 (25 U.S.C. 4103).’’. 

23 (b) STATE BUILDING ENERGY EFFICIENCY

24 CODES.—Section 304 of the Energy Conservation and 


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

2 follows: 

3 ‘‘SEC. 304. UPDATING STATE BUILDING ENERGY EFFI4 CIENCY CODES. 

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

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

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

8 as appropriate, by local governments that meet or 

9 exceed the model building energy codes, or achieve 

10 equivalent or greater energy savings; and 

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

12 local codes. 

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

14 BUILDING ENERGY CODE UPDATES.— 

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

16 EACH STATE AND INDIAN TRIBE.— 

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

18 after the date on which a model building energy 

19 code is updated, each State or Indian tribe shall 

20 certify whether or not the State or Indian tribe, 

21 respectively, has reviewed and updated the en22 ergy provisions of the building code of the State 

23 or Indian tribe, respectively. 

24 ‘‘(B) DEMONSTRATION.—The certification 

25 shall include a demonstration of whether or not 


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1 the energy savings for the code provisions that 

2 are in effect throughout the State or Indian 

3 tribal territory meet or exceed— 

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

5 model building energy code; or 

6 ‘‘(ii) the targets established under sec7 tion 307(b)(2). 

8 ‘‘(C) NO MODEL BUILDING ENERGY CODE

9 UPDATE.—If a model building energy code is 

10 not updated by a target date established under 

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

12 shall, not later than 2 years after the specified 

13 date, certify whether or not the State or Indian 

14 tribe, respectively, has reviewed and updated 

15 the energy provisions of the building code of the 

16 State or Indian tribe, respectively, to meet or 

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

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

19 than 90 days after a State or Indian tribe certifi20 cation under paragraph (1), the Secretary shall— 

21 ‘‘(A) determine whether the code provi22 sions of the State or Indian tribe, respectively, 

23 meet the criteria specified in paragraph (1); 

24 and 


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1 ‘‘(B) if the determination is positive, vali2 date the certification. 

3 ‘‘(c) IMPROVEMENTS IN COMPLIANCE WITH BUILD4 ING ENERGY CODES.— 

5 ‘‘(1) REQUIREMENT.— 

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

7 after the date of a certification under sub8 section (b), each State and Indian tribe shall 

9 certify whether or not the State and Indian 

10 tribe, respectively, has— 

11 ‘‘(i) achieved full compliance under 

12 paragraph (3) with the applicable certified 

13 State and Indian tribe building energy 

14 code or with the associated model building 

15 energy code; or 

16 ‘‘(ii) made significant progress under 

17 paragraph (4) toward achieving compliance 

18 with the applicable certified State and In19 dian tribe building energy code or with the 

20 associated model building energy code. 

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

22 State or Indian tribe certifies progress toward 

23 achieving compliance, the State or Indian tribe 

24 shall repeat the certification until the State or 


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1 Indian tribe certifies that the State or Indian 

2 tribe has achieved full compliance, respectively. 

3 ‘‘(2) MEASUREMENT OF COMPLIANCE.—A cer4 tification under paragraph (1) shall include docu5 mentation of the rate of compliance based on— 

6 ‘‘(A) independent inspections of a random 

7 sample of the buildings covered by the code in 

8 the preceding year; or 

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

10 accurate measure of compliance. 

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

12 or Indian tribe shall be considered to achieve full 

13 compliance under paragraph (1) if— 

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

15 covered by the code in the preceding year sub16 stantially meets all the requirements of the ap17 plicable code specified in paragraph (1), or 

18 achieves equivalent or greater energy savings 

19 level; or 

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

21 buildings that did not meet the applicable code 

22 specified in paragraph (1) in the preceding 

23 year, compared to a baseline of comparable 

24 buildings that meet this code, is not more than 

25 5 percent of the estimated energy use of all 


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1 buildings covered by this code during the pre2 ceding year. 

3 ‘‘(4) SIGNIFICANT PROGRESS TOWARD

4 ACHIEVEMENT OF COMPLIANCE.—A State or Indian 

5 tribe shall be considered to have made significant 

6 progress toward achieving compliance for purposes 

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

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

9 plan for achieving compliance during the 8- 

10 year-period beginning on the date of enactment 

11 of this paragraph, including annual targets for 

12 compliance and active training and enforcement 

13 programs; and 

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

15 subparagraph (A). 

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

17 than 90 days after a State or Indian tribe certifi18 cation under paragraph (1), the Secretary shall— 

19 ‘‘(A) determine whether the State or In20 dian tribe has demonstrated meeting the cri21 teria of this subsection, including accurate 

22 measurement of compliance; and 

23 ‘‘(B) if the determination is positive, vali24 date the certification. 


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

2 ACHIEVE COMPLIANCE.— 

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

4 has not made a certification required under sub5 section (b) or (c) by the applicable deadline shall 

6 submit to the Secretary a report on— 

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

8 with respect to meeting the requirements and 

9 submitting the certification; and 

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

11 and submitting the certification. 

12 ‘‘(2) FEDERAL SUPPORT.—For any State or In13 dian tribe for which the Secretary has not validated 

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

15 (c), the lack of the certification may be a consider16 ation for Federal support authorized under this sec17 tion for code adoption and compliance activities. 

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

19 Indian tribe for which the Secretary has not vali20 dated a certification under subsection (b) or (c), a 

21 local government may be eligible for Federal support 

22 by meeting the certification requirements of sub23 sections (b) and (c). 

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


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

2 annually submit to Congress, and publish in the 

3 Federal Register, a report on— 

4 ‘‘(i) the status of model building en5 ergy codes; 

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

7 compliance in the States and Indian tribes; 

8 ‘‘(iii) implementation of this section; 

9 and 

10 ‘‘(iv) improvements in energy savings 

11 over time as result of the targets estab12 lished under section 307(b)(2). 

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

14 estimates of impacts of past action under this 

15 section, and potential impacts of further action, 

16 on— 

17 ‘‘(i) upfront financial and construction 

18 costs, cost benefits and returns (using in19 vestment analysis), and lifetime energy use 

20 for buildings; 

21 ‘‘(ii) resulting energy costs to individ22 uals and businesses; and 

23 ‘‘(iii) resulting overall annual building 

24 ownership and operating costs. 


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1 ‘‘(e) TECHNICAL ASSISTANCE TO STATES AND IN2 DIAN TRIBES.—The Secretary shall provide technical as3 sistance to States and Indian tribes to implement the goals 

4 and requirements of this section, including procedures and 

5 technical analysis for States and Indian tribes— 

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

7 and commercial building energy codes; 

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

9 the States and Indian tribes achieve equivalent or 

10 greater energy savings than the model building en11 ergy codes and targets; 

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

13 building energy code; and 

14 ‘‘(4) to otherwise promote the design and con15 struction of energy efficient buildings. 

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

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

18 incentive funding to States and Indian tribes— 

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

20 section; 

21 ‘‘(B) to improve and implement residential 

22 and commercial building energy codes, including 

23 increasing and verifying compliance with the 

24 codes and training of State, tribal, and local 


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1 building code officials to implement and enforce 

2 the codes; and 

3 ‘‘(C) to promote building energy efficiency 

4 through the use of the codes. 

5 ‘‘(2) ADDITIONAL FUNDING.—Additional fund6 ing shall be provided under this subsection for im7 plementation of a plan to achieve and document full 

8 compliance with residential and commercial building 

9 energy codes under subsection (c)— 

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

11 the Secretary has validated a certification under 

12 subsection (b) or (c); and 

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

14 eligible under subparagraph (A), to a local gov15 ernment that is eligible under this section. 

16 ‘‘(3) TRAINING.—Of the amounts made avail17 able under this subsection, the State or Indian tribe 

18 may use amounts required, but not to exceed 

19 $750,000 for a State, to train State and local build20 ing code officials to implement and enforce codes de21 scribed in paragraph (2). 

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

23 grants under this subsection with local governments 

24 that implement and enforce the codes. 


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1 ‘‘(g) STRETCH CODES AND ADVANCED STAND2 ARDS.— 

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

4 technical and financial support for the development 

5 of stretch codes and advanced standards for residen6 tial and commercial buildings for use as— 

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

8 energy code by local, tribal, or State govern9 ments; and 

10 ‘‘(B) guidelines for energy-efficient build11 ing design. 

12 ‘‘(2) TARGETS.—The stretch codes and ad13 vanced standards shall be designed— 

14 ‘‘(A) to achieve substantial energy savings 

15 compared to the model building energy codes; 

16 and 

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

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

19 the target years. 

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

21 building science experts from the National Laboratories 

22 and institutions of higher education, designers and build23 ers of energy-efficient residential and commercial build24 ings, code officials, and other stakeholders, shall underVerDate Mar 15 2010 00:56 Apr 30, 2014 Jkt 039200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S2262.PCS S2262

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1 take a study of the feasibility, impact, economics, and 

2 merit of— 

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

4 buildings be designed, sited, and constructed in a 

5 manner that makes the buildings more adaptable in 

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

7 construction, as advances are achieved in energy-sav8 ing technologies; 

9 ‘‘(2) code procedures to incorporate measured 

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

11 and performance calculations; and 

12 ‘‘(3) legislative options for increasing energy 

13 savings from building energy codes, including addi14 tional incentives for effective State and local action, 

15 and verification of compliance with and enforcement 

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

17 ‘‘(i) EFFECT ON OTHER LAWS.—Nothing in this sec18 tion or section 307 supersedes or modifies the application 

19 of sections 321 through 346 of the Energy Policy and 

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

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

22 are authorized to be appropriated to carry out this section 

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

24 expended.’’. 


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1 (c) FEDERAL BUILDING ENERGY EFFICIENCY

2 STANDARDS.—Section 305 of the Energy Conservation 

3 and Production Act (42 U.S.C. 6834) is amended by strik4 ing ‘‘voluntary building energy code’’ each place it appears 

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

6 building energy code’’. 

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

8 of the Energy Conservation and Production Act (42 

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

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

11 CODES. 

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

13 updating of model building energy codes. 

14 ‘‘(b) TARGETS.— 

15 ‘‘(1) IN GENERAL.—The Secretary shall sup16 port the updating of the model building energy codes 

17 to enable the achievement of aggregate energy sav18 ings targets established under paragraph (2). 

19 ‘‘(2) TARGETS.— 

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

21 work with State, Indian tribes, local govern22 ments, nationally recognized code and stand23 ards developers, and other interested parties to 

24 support the updating of model building energy 

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1 ergy savings targets to achieve the purposes of 

2 this section. 

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

4 may establish separate targets for commercial 

5 and residential buildings. 

6 ‘‘(C) BASELINES.—The baseline for updat7 ing model building energy codes shall be the 

8 2009 IECC for residential buildings and 

9 ASHRAE Standard 90.1–2010 for commercial 

10 buildings. 

11 ‘‘(D) SPECIFIC YEARS.— 

12 ‘‘(i) IN GENERAL.—Targets for spe13 cific years shall be established and revised 

14 by the Secretary through rulemaking and 

15 coordinated with nationally recognized code 

16 and standards developers at a level that— 

17 ‘‘(I) is at the maximum level of 

18 energy efficiency that is techno19 logically feasible and life-cycle cost ef20 fective, while accounting for the eco21 nomic considerations under paragraph 

22 (4); 

23 ‘‘(II) is higher than the preceding 

24 target; and 


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1 ‘‘(III) promotes the achievement 

2 of commercial and residential high3 performance buildings through high 

4 performance energy efficiency (within 

5 the meaning of section 401 of the En6 ergy Independence and Security Act 

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

8 ‘‘(ii) INITIAL TARGETS.—Not later 

9 than 1 year after the date of enactment of 

10 this clause, the Secretary shall establish 

11 initial targets under this subparagraph. 

12 ‘‘(iii) DIFFERENT TARGET YEARS.— 

13 Subject to clause (i), prior to the applica14 ble year, the Secretary may set a later tar15 get year for any of the model building en16 ergy codes described in subparagraph (A) 

17 if the Secretary determines that a target 

18 cannot be met. 

19 ‘‘(iv) SMALL BUSINESS.—When estab20 lishing targets under this paragraph 

21 through rulemaking, the Secretary shall 

22 ensure compliance with the Small Business 

23 Regulatory Enforcement Fairness Act of 

24 1996 (5 U.S.C. 601 note; Public Law 104– 

25 121). 


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1 ‘‘(3) APPLIANCE STANDARDS AND OTHER FAC2 TORS AFFECTING BUILDING ENERGY USE.—In es3 tablishing building code targets under paragraph 

4 (2), the Secretary shall develop and adjust the tar5 gets in recognition of potential savings and costs re6 lating to— 

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

8 lighting, windows, insulation, and building enve9 lope sealing; 

10 ‘‘(B) advancement of distributed genera11 tion and on-site renewable power generation 

12 technologies; 

13 ‘‘(C) equipment improvements for heating, 

14 cooling, and ventilation systems; 

15 ‘‘(D) building management systems and 

16 SmartGrid technologies to reduce energy use; 

17 and 

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

19 building systems that the Secretary considers 

20 appropriate regarding building plug load and 

21 other energy uses. 

22 ‘‘(4) ECONOMIC CONSIDERATIONS.—In estab23 lishing and revising building code targets under 

24 paragraph (2), the Secretary shall consider the eco25 nomic feasibility of achieving the proposed targets 


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1 established under this section and the potential costs 

2 and savings for consumers and building owners, in3 cluding a return on investment analysis. 

4 ‘‘(c) TECHNICAL ASSISTANCE TO MODEL BUILDING

5 ENERGY CODE-SETTING AND STANDARD DEVELOPMENT

6 ORGANIZATIONS.— 

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

8 timely basis, provide technical assistance to model 

9 building energy code-setting and standard develop10 ment organizations consistent with the goals of this 

11 section. 

12 ‘‘(2) ASSISTANCE.—The assistance shall in13 clude, as requested by the organizations, technical 

14 assistance in— 

15 ‘‘(A) evaluating code or standards pro16 posals or revisions; 

17 ‘‘(B) building energy analysis and design 

18 tools; 

19 ‘‘(C) building demonstrations; 

20 ‘‘(D) developing definitions of energy use 

21 intensity and building types for use in model 

22 building energy codes to evaluate the efficiency 

23 impacts of the model building energy codes; 

24 ‘‘(E) performance-based standards; 


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1 ‘‘(F) evaluating economic considerations 

2 under subsection (b)(4); and 

3 ‘‘(G) developing model building energy 

4 codes by Indian tribes in accordance with tribal 

5 law. 

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

7 may submit timely model building energy code 

8 amendment proposals to the model building energy 

9 code-setting and standard development organiza10 tions, with supporting evidence, sufficient to enable 

11 the model building energy codes to meet the targets 

12 established under subsection (b)(2). 

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

14 shall make publicly available the entire calculation 

15 methodology (including input assumptions and data) 

16 used by the Secretary to estimate the energy savings 

17 of code or standard proposals and revisions. 

18 ‘‘(d) DETERMINATION.— 

19 ‘‘(1) REVISION OF MODEL BUILDING ENERGY

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

21 Standard 90.1 regarding building energy use are re22 vised, the Secretary shall make a preliminary deter23 mination not later than 90 days after the date of the 

24 revision, and a final determination not later than 15 


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

2 not the revision will— 

3 ‘‘(A) improve energy efficiency in buildings 

4 compared to the existing model building energy 

5 code; and 

6 ‘‘(B) meet the applicable targets under 

7 subsection (b)(2). 

8 ‘‘(2) CODES OR STANDARDS NOT MEETING TAR9 GETS.— 

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

11 makes a preliminary determination under para12 graph (1)(B) that a code or standard does not 

13 meet the targets established under subsection 

14 (b)(2), the Secretary may at the same time pro15 vide the model building energy code or standard 

16 developer with proposed changes that would re17 sult in a model building energy code that meets 

18 the targets and with supporting evidence, tak19 ing into consideration— 

20 ‘‘(i) whether the modified code is tech21 nically feasible and life-cycle cost effective; 

22 ‘‘(ii) available appliances, technologies, 

23 materials, and construction practices; and 

24 ‘‘(iii) the economic considerations 

25 under subsection (b)(4). 


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1 ‘‘(B) INCORPORATION OF CHANGES.— 

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

3 proposed changes, the model building en4 ergy code or standard developer shall have 

5 an additional 270 days to accept or reject 

6 the proposed changes of the Secretary to 

7 the model building energy code or standard 

8 for the Secretary to make a final deter9 mination. 

10 ‘‘(ii) FINAL DETERMINATION.—A 

11 final determination under paragraph (1) 

12 shall be on the modified model building en13 ergy code or standard. 

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

15 the Secretary shall— 

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

17 analysis and determinations under this section in the 

18 Federal Register to provide an explanation of and 

19 the basis for such actions, including any supporting 

20 modeling, data, assumptions, protocols, and cost21 benefit analysis, including return on investment; and 

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

23 on targets and supporting analysis and determina24 tions under this section. 


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1 ‘‘(f) VOLUNTARY CODES AND STANDARDS.—Not2 withstanding any other provision of this section, any 

3 model building code or standard established under section 

4 304 shall not be binding on a State, local government, or 

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

6 Subtitle B—Worker Training and 

7 Capacity Building 

8 SEC. 111. BUILDING TRAINING AND ASSESSMENT CENTERS. 

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

10 grants to institutions of higher education (as defined in 

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

12 U.S.C. 1001)) and Tribal Colleges or Universities (as de13 fined in section 316(b) of that Act (20 U.S.C. 1059c(b))) 

14 to establish building training and assessment centers— 

15 (1) to identify opportunities for optimizing en16 ergy efficiency and environmental performance in 

17 buildings; 

18 (2) to promote the application of emerging con19 cepts and technologies in commercial and institu20 tional buildings; 

21 (3) to train engineers, architects, building sci22 entists, building energy permitting and enforcement 

23 officials, and building technicians in energy-efficient 

24 design and operation; 


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1 (4) to assist institutions of higher education 

2 and Tribal Colleges or Universities in training build3 ing technicians; 

4 (5) to promote research and development for 

5 the use of alternative energy sources and distributed 

6 generation to supply heat and power for buildings, 

7 particularly energy-intensive buildings; and 

8 (6) to coordinate with and assist State-accred9 ited technical training centers, community colleges, 

10 Tribal Colleges or Universities, and local offices of 

11 the National Institute of Food and Agriculture and 

12 ensure appropriate services are provided under this 

13 section to each region of the United States. 

14 (b) COORDINATION AND NONDUPLICATION.— 

15 (1) IN GENERAL.—The Secretary shall coordi16 nate the program with the industrial research and 

17 assessment centers program and with other Federal 

18 programs to avoid duplication of effort. 

19 (2) COLLOCATION.—To the maximum extent 

20 practicable, building, training, and assessment cen21 ters established under this section shall be collocated 

22 with Industrial Assessment Centers. 

23 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

24 authorized to be appropriated to carry out this section 

25 $10,000,000, to remain available until expended. 


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1 SEC. 112. CAREER SKILLS TRAINING. 

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

3 eligible entities described in subsection (b) to pay the Fed4 eral share of associated career skills training programs 

5 under which students concurrently receive classroom in6 struction and on-the-job training for the purpose of ob7 taining an industry-related certification to install energy 

8 efficient buildings technologies, including technologies de9 scribed in section 307(b)(3) of the Energy Conservation 

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

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

12 under subsection (a), an entity shall be a nonprofit part13 nership described in section 171(e)(2)(B)(ii) of the Work14 force Investment Act of 1998 (29 U.S.C. 

15 2916(e)(2)(B)(ii)). 

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

17 of carrying out a career skills training program described 

18 in subsection (a) shall be 50 percent. 

19 (d) 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 Subtitle C—School Buildings 

23 SEC. 121. COORDINATION OF ENERGY RETROFITTING AS24 SISTANCE FOR SCHOOLS. 

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

26 term ‘‘school’’ means— 


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1 (1) an elementary school or secondary school 

2 (as defined in section 9101 of the Elementary and 

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

4 7801)); 

5 (2) an institution of higher education (as de6 fined in section 102(a) of the Higher Education Act 

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

8 (3) a school of the defense dependents’ edu9 cation system under the Defense Dependents’ Edu10 cation Act of 1978 (20 U.S.C. 921 et seq.) or estab11 lished under section 2164 of title 10, United States 

12 Code; 

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

14 Affairs; 

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

16 section 5212 of the Tribally Controlled Schools Act 

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

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

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

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

21 (b) DESIGNATION OF LEAD AGENCY.—The Sec22 retary, acting through the Office of Energy Efficiency and 

23 Renewable Energy, shall act as the lead Federal agency 

24 for coordinating and disseminating information on exist25 ing Federal programs and assistance that may be used 


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1 to help initiate, develop, and finance energy efficiency, re2 newable energy, and energy retrofitting projects for 

3 schools. 

4 (c) REQUIREMENTS.—In carrying out coordination 

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

6 (1) in consultation and coordination with the 

7 appropriate Federal agencies, carry out a review of 

8 existing programs and financing mechanisms (in9 cluding revolving loan funds and loan guarantees) 

10 available in or from the Department of Agriculture, 

11 the Department of Energy, the Department of Edu12 cation, the Department of the Treasury, the Internal 

13 Revenue Service, the Environmental Protection 

14 Agency, and other appropriate Federal agencies with 

15 jurisdiction over energy financing and facilitation 

16 that are currently used or may be used to help ini17 tiate, develop, and finance energy efficiency, renew18 able energy, and energy retrofitting projects for 

19 schools; 

20 (2) establish a Federal cross-departmental col21 laborative coordination, education, and outreach ef22 fort to streamline communication and promote avail23 able Federal opportunities and assistance described 

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


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1 energy, and energy retrofitting projects that enables 

2 States, local educational agencies, and schools— 

3 (A) to use existing Federal opportunities 

4 more effectively; and 

5 (B) to form partnerships with Governors, 

6 State energy programs, local educational, finan7 cial, and energy officials, State and local gov8 ernment officials, nonprofit organizations, and 

9 other appropriate entities, to support the initi10 ation of the projects; 

11 (3) provide technical assistance for States, local 

12 educational agencies, and schools to help develop 

13 and finance energy efficiency, renewable energy, and 

14 energy retrofitting projects— 

15 (A) to increase the energy efficiency of 

16 buildings or facilities; 

17 (B) to install systems that individually 

18 generate energy from renewable energy re19 sources; 

20 (C) to establish partnerships to leverage 

21 economies of scale and additional financing 

22 mechanisms available to larger clean energy ini23 tiatives; or 

24 (D) to promote— 


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1 (i) the maintenance of health, environ2 mental quality, and safety in schools, in3 cluding the ambient air quality, through 

4 energy efficiency, renewable energy, and 

5 energy retrofit projects; and 

6 (ii) the achievement of expected en7 ergy savings and renewable energy produc8 tion through proper operations and main9 tenance practices; 

10 (4) develop and maintain a single online re11 source Web site with contact information for rel12 evant technical assistance and support staff in the 

13 Office of Energy Efficiency and Renewable Energy 

14 for States, local educational agencies, and schools to 

15 effectively access and use Federal opportunities and 

16 assistance described in paragraph (1) to develop en17 ergy efficiency, renewable energy, and energy retro18 fitting projects; and 

19 (5) establish a process for recognition of schools 

20 that— 

21 (A) have successfully implemented energy 

22 efficiency, renewable energy, and energy retro23 fitting projects; and 


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1 (B) are willing to serve as resources for 

2 other local educational agencies and schools to 

3 assist initiation of similar efforts. 

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

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

6 Congress a report describing the implementation of this 

7 section. 

8 Subtitle D—Better Buildings 

9 SEC. 131. ENERGY EFFICIENCY IN FEDERAL AND OTHER 

10 BUILDINGS. 

11 (a) DEFINITIONS.—In this section: 

12 (1) ADMINISTRATOR.—The term ‘‘Adminis13 trator’’ means the Administrator of General Serv14 ices. 

15 (2) COST-EFFECTIVE ENERGY EFFICIENCY

16 MEASURE.—The terms ‘‘cost-effective energy effi17 ciency measure’’ and ‘‘measure’’ mean any building 

18 product, material, equipment, or service and the in19 stalling, implementing, or operating thereof, that 

20 provides energy savings in an amount that is not 

21 less than the cost of such installing, implementing, 

22 or operating. 

23 (b) MODEL PROVISIONS, POLICIES, AND BEST PRAC24 TICES.— 


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

2 after the date of enactment of this Act, the Adminis3 trator, in consultation with the Secretary and after 

4 providing the public with an opportunity for notice 

5 and comment, shall develop model leasing provisions 

6 and best practices in accordance with this sub7 section. 

8 (2) COMMERCIAL LEASING.— 

9 (A) IN GENERAL.—The model commercial 

10 leasing provisions developed under this sub11 section shall, at a minimum, align the interests 

12 of building owners and tenants with regard to 

13 investments in cost-effective energy efficiency 

14 measures to encourage building owners and ten15 ants to collaborate to invest in such measures. 

16 (B) USE OF MODEL PROVISIONS.—The 

17 Administrator may use the model provisions de18 veloped under this subsection in any standard 

19 leasing document that designates a Federal 

20 agency (or other client of the Administrator) as 

21 a landlord or tenant. 

22 (C) PUBLICATION.—The Administrator 

23 shall periodically publish the model leasing pro24 visions developed under this subsection, along 

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1 ing owners and tenants in the private sector to 

2 use such provisions and materials. 

3 (3) REALTY SERVICES.—The Administrator 

4 shall develop policies and practices to implement 

5 cost-effective energy efficiency measures for the real6 ty services provided by the Administrator to Federal 

7 agencies (or other clients of the Administrator), in8 cluding periodic training of appropriate Federal em9 ployees and contractors on how to identify and 

10 evaluate those measures. 

11 (4) STATE AND LOCAL ASSISTANCE.—The Ad12 ministrator, in consultation with the Secretary, shall 

13 make available model leasing provisions and best 

14 practices developed under this subsection to State, 

15 county, and municipal governments to manage 

16 owned and leased building space in accordance with 

17 the goal of encouraging investment in all cost-effec18 tive energy efficiency measures. 

19 SEC. 132. SEPARATE SPACES WITH HIGH-PERFORMANCE 

20 ENERGY EFFICIENCY MEASURES. 

21 Subtitle B of title IV of the Energy Independence and 

22 Security Act of 2007 (42 U.S.C. 17081 et seq.) is amend23 ed by adding at the end the following: 


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

2 ENERGY EFFICIENCY MEASURES. 

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

4 ‘‘(1) HIGH-PERFORMANCE ENERGY EFFICIENCY

5 MEASURE.—The term ‘high-performance energy effi6 ciency measure’ means a technology, product, or 

7 practice that will result in substantial operational 

8 cost savings by reducing energy consumption and 

9 utility costs. 

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

11 spaces’ means areas within a commercial building 

12 that are leased or otherwise occupied by a tenant or 

13 other occupant for a period of time pursuant to the 

14 terms of a written agreement. 

15 ‘‘(b) STUDY.— 

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

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

18 acting through the Assistant Secretary of Energy 

19 Efficiency and Renewable Energy, shall complete a 

20 study on the feasibility of— 

21 ‘‘(A) significantly improving energy effi22 ciency in commercial buildings through the de23 sign and construction, by owners and tenants, 

24 of separate spaces with high-performance en25 ergy efficiency measures; and 


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1 ‘‘(B) encouraging owners and tenants to 

2 implement high-performance energy efficiency 

3 measures in separate spaces. 

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

5 include— 

6 ‘‘(A) descriptions of— 

7 ‘‘(i) high-performance energy effi8 ciency measures that should be considered 

9 as part of the initial design and construc10 tion of separate spaces; 

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

12 architects, and engineers may replicate 

13 when designing and constructing separate 

14 spaces with high-performance energy effi15 ciency measures; 

16 ‘‘(iii) policies and best practices to 

17 achieve reductions in energy intensities for 

18 lighting, plug loads, heating, cooling, cook19 ing, laundry, and other systems to satisfy 

20 the needs of the commercial building ten21 ant; 

22 ‘‘(iv) return on investment and pay23 back analyses of the incremental cost and 

24 projected energy savings of the proposed 

25 set of high-performance energy efficiency 


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1 measures, including consideration of avail2 able incentives; 

3 ‘‘(v) models and simulation methods 

4 that predict the quantity of energy used by 

5 separate spaces with high-performance en6 ergy efficiency measures and that compare 

7 that predicted quantity to the quantity of 

8 energy used by separate spaces without 

9 high-performance energy efficiency meas10 ures but that otherwise comply with appli11 cable building code requirements; 

12 ‘‘(vi) measurement and verification 

13 platforms demonstrating actual energy use 

14 of high-performance energy efficiency 

15 measures installed in separate spaces, and 

16 whether such measures generate the sav17 ings intended in the initial design and con18 struction of the separate spaces; 

19 ‘‘(vii) best practices that encourage an 

20 integrated approach to designing and con21 structing separate spaces to perform at op22 timum energy efficiency in conjunction 

23 with the central systems of a commercial 

24 building; and 


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1 ‘‘(viii) any impact on employment re2 sulting from the design and construction of 

3 separate spaces with high-performance en4 ergy efficiency measures; and 

5 ‘‘(B) case studies reporting economic and 

6 energy saving returns in the design and con7 struction of separate spaces with high-perform8 ance energy efficiency measures. 

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

10 90 days after the date of the enactment of this sec11 tion, the Secretary shall publish a notice in the Fed12 eral Register requesting public comments regarding 

13 effective methods, measures, and practices for the 

14 design and construction of separate spaces with 

15 high-performance energy efficiency measures. 

16 ‘‘(4) PUBLICATION.—The Secretary shall pub17 lish the study on the website of the Department of 

18 Energy.’’. 

19 SEC. 133. TENANT STAR PROGRAM. 

20 Subtitle B of title IV of the Energy Independence and 

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

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

23 the following: 

24 ‘‘SEC. 425. TENANT STAR PROGRAM. 

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


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1 ‘‘(1) HIGH-PERFORMANCE ENERGY EFFICIENCY

2 MEASURE.—The term ‘high-performance energy effi3 ciency measure’ has the meaning given the term in 

4 section 424. 

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

6 spaces’ has the meaning given the term in section 

7 424. 

8 ‘‘(b) TENANT STAR.—The Administrator of the Envi9 ronmental Protection Agency, in consultation with the 

10 Secretary of Energy, shall develop a voluntary program 

11 within the Energy Star program established by section 

12 324A of the Energy Policy and Conservation Act (42 

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

14 promote energy efficiency in separate spaces leased by ten15 ants or otherwise occupied within commercial buildings. 

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

17 Energy, acting through the Administrator of the Energy 

18 Information Administration, shall— 

19 ‘‘(1) collect, through each Commercial Build20 ings Energy Consumption Survey of the Energy In21 formation Administration that is conducted after the 

22 date of enactment of this section, data on— 

23 ‘‘(A) categories of building occupancy that 

24 are known to consume significant quantities of 


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1 energy, such as occupancy by data centers, 

2 trading floors, and restaurants; and 

3 ‘‘(B) other aspects of the property, build4 ing operation, or building occupancy determined 

5 by the Administrator of the Energy Information 

6 Administration, in consultation with the Admin7 istrator of the Environmental Protection Agen8 cy, to be relevant in lowering energy consump9 tion; 

10 ‘‘(2) with respect to the first Commercial Build11 ings Energy Consumption Survey conducted after 

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

13 full compliance with the requirements of paragraph 

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

15 capability to collect such data and begin to collect 

16 such data; and 

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

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

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

20 the Administrator of the Environmental Protection 

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

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

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

24 later than 1 year after the date on which sufficient 

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1 ministrator of the Environmental Protection Agency 

2 shall, following an opportunity for public notice and 

3 comment— 

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

5 Star rating system for commercial buildings, 

6 develop policies and procedures to recognize 

7 tenants in commercial buildings that voluntarily 

8 achieve high levels of energy efficiency in sepa9 rate spaces; 

10 ‘‘(B) establish building occupancy cat11 egories eligible for Tenant Star recognition 

12 based on the data collected under subsection (c) 

13 and any other appropriate data sources; and 

14 ‘‘(C) consider other forms of recognition 

15 for commercial building tenants or other occu16 pants that lower energy consumption in sepa17 rate spaces. 

18 ‘‘(2) DESIGN- AND CONSTRUCTION-BASED REC19 OGNITION.—After the study required by section 

20 424(b) is completed, the Administrator of the Envi21 ronmental Protection Agency, in consultation with 

22 the Secretary and following an opportunity for pub23 lic notice and comment, may develop a voluntary 

24 program to recognize commercial building owners 

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1 ciency measures in the design and construction of 

2 separate spaces.’’. 

3 Subtitle E—Energy Information for 

4 Commercial Buildings 

5 SEC. 141. ENERGY INFORMATION FOR COMMERCIAL BUILD6 INGS. 

7 (a) REQUIREMENT OF BENCHMARKING AND DISCLO8 SURE FOR LEASING BUILDINGS WITHOUT ENERGY STAR

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

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

11 amended— 

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

13 ‘‘paragraph (1)’’; and 

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

15 that follows through the period at the end and in16 serting the following: 

17 ‘‘signing the contract, the following requirements are 

18 met: 

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

20 efficiency and conservation improvements that 

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

22 including improvements in lighting, windows, 

23 and heating, ventilation, and air conditioning 

24 systems. 


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

2 benchmarked under a nationally recognized, on3 line, free benchmarking program, with public 

4 disclosure, unless the space is a space for which 

5 owners cannot access whole building utility con6 sumption data, including spaces— 

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

8 privacy laws that provide that utilities shall 

9 not provide such aggregated information to 

10 multitenant building owners; and 

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

12 energy consumption information to the 

13 commercial building owner in response to a 

14 request from the building owner. 

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

16 the space shall provide to the building owner, or 

17 authorize the owner to obtain from the utility, 

18 the energy consumption information of the 

19 space for the benchmarking and disclosure re20 quired by this subparagraph.’’. 

21 (b) DEPARTMENT OF ENERGY STUDY.— 

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

23 the date of enactment of this Act, the Secretary 

24 shall complete a study, with opportunity for public 

25 comment— 


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1 (A) on the impact of— 

2 (i) State and local performance 

3 benchmarking and disclosure policies, and 

4 any associated building efficiency policies, 

5 for commercial and multifamily buildings; 

6 and 

7 (ii) programs and systems in which 

8 utilities provide aggregated information re9 garding whole building energy consumption 

10 and usage information to owners of multi11 tenant commercial, residential, and mixed12 use buildings; 

13 (B) that identifies best practice policy ap14 proaches studied under subparagraph (A) that 

15 have resulted in the greatest improvements in 

16 building energy efficiency; and 

17 (C) that considers— 

18 (i) compliance rates and the benefits 

19 and costs of the policies and programs on 

20 building owners, utilities, tenants, and 

21 other parties; 

22 (ii) utility practices, programs, and 

23 systems that provide aggregated energy 

24 consumption information to multitenant 

25 building owners, and the impact of public 


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1 utility commissions and State privacy laws 

2 on those practices, programs, and systems; 

3 (iii) exceptions to compliance in exist4 ing laws where building owners are not 

5 able to gather or access whole building en6 ergy information from tenants or utilities; 

7 (iv) the treatment of buildings with— 

8 (I) multiple uses; 

9 (II) uses for which baseline infor10 mation is not available; and 

11 (III) uses that require high levels 

12 of energy intensities, such as data 

13 centers, trading floors, and televisions 

14 studios; 

15 (v) implementation practices, includ16 ing disclosure methods and phase-in of 

17 compliance; 

18 (vi) the safety and security of 

19 benchmarking tools offered by government 

20 agencies, and the resiliency of those tools 

21 against cyber-attacks; and 

22 (vii) international experiences with re23 gard to building benchmarking and disclo24 sure laws and data aggregation for multi25 tenant buildings. 


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1 (2) SUBMISSION TO CONGRESS.—At the conclu2 sion of the study, the Secretary shall submit to Con3 gress a report on the results of the study. 

4 (c) CREATION AND MAINTENANCE OF DATABASES.— 

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

6 after the date of enactment of this Act and following 

7 opportunity for public notice and comment, the Sec8 retary, in coordination with other relevant agencies 

9 shall, to carry out the purpose described in para10 graph (2)— 

11 (A) assess existing databases; and 

12 (B) as necessary— 

13 (i) modify and maintain existing data14 bases; or 

15 (ii) create and maintain a new data16 base platform. 

17 (2) PURPOSE.—The maintenance of existing 

18 databases or creation of a new database platform 

19 under paragraph (1) shall be for the purpose of stor20 ing and making available public energy-related infor21 mation on commercial and multifamily buildings, in22 cluding— 

23 (A) data provided under Federal, State, 

24 local, and other laws or programs regarding 


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1 building benchmarking and energy information 

2 disclosure; 

3 (B) buildings that have received energy 

4 ratings and certifications; and 

5 (C) energy-related information on buildings 

6 provided voluntarily by the owners of the build7 ings, in an anonymous form, unless the owner 

8 provides otherwise. 

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

10 the research for the portion of the study described in sub11 section (b)(1)(A)(ii), and with criteria developed following 

12 public notice and comment, the Secretary may make com13 petitive awards to utilities, utility regulators, and utility 

14 partners to develop and implement effective and promising 

15 programs to provide aggregated whole building energy 

16 consumption information to multitenant building owners. 

17 (e) INPUT FROM STAKEHOLDERS.—The Secretary 

18 shall seek input from stakeholders to maximize the effec19 tiveness of the actions taken under this section. 

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

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

22 the Secretary shall submit to Congress a report on the 

23 progress made in complying with this section. 

24 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

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


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1 $2,500,000 for each of fiscal years 2014 through 2018, 

2 to remain available until expended. 

3 TITLE II—INDUSTRIAL EFFI4 CIENCY AND COMPETITIVE5 NESS 

6 Subtitle A—Manufacturing Energy 

7 Efficiency 

8 SEC. 201. PURPOSES. 

9 The purposes of this subtitle are— 

10 (1) to reform and reorient the industrial effi11 ciency programs of the Department of Energy; 

12 (2) to establish a clear and consistent authority 

13 for industrial efficiency programs of the Depart14 ment; 

15 (3) to accelerate the deployment of technologies 

16 and practices that will increase industrial energy ef17 ficiency and improve productivity; 

18 (4) to accelerate the development and dem19 onstration of technologies that will assist the deploy20 ment goals of the industrial efficiency programs of 

21 the Department and increase manufacturing effi22 ciency; 

23 (5) to stimulate domestic economic growth and 

24 improve industrial productivity and competitiveness; 

25 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, power factor, or load management of a 

19 manufacturing site or other industrial process in an 

20 energy-intensive industry, or any utility operating 

21 under a utility energy service project.’’. 

22 (c) INDUSTRIAL RESEARCH AND ASSESSMENT CEN23 TERS.—Section 452(e) of the Energy Independence and 

24 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 Program of the Department 


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1 of 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 ‘‘(6) ADVANCED MANUFACTURING STEERING

8 COMMITTEE.—The Secretary shall establish an advi9 sory steering committee to provide recommendations 

10 to the Secretary on planning and implementation of 

11 the Advanced Manufacturing Office of the Depart12 ment of Energy.’’. 

13 SEC. 203. SUSTAINABLE MANUFACTURING INITIATIVE. 

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

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

16 by adding at the end the following: 

17 ‘‘SEC. 376. SUSTAINABLE MANUFACTURING INITIATIVE. 

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

19 Efficiency and Renewable Energy, the Secretary, on the 

20 request of a manufacturer, shall conduct onsite technical 

21 assessments to identify opportunities for— 

22 ‘‘(1) maximizing the energy efficiency of indus23 trial processes and cross-cutting systems; 

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


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1 ‘‘(3) improving efficient use of water in manu2 facturing processes; 

3 ‘‘(4) conserving natural resources; and 

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

5 determines to be appropriate. 

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

7 the initiative in coordination with the private sector and 

8 appropriate agencies, including the National Institute of 

9 Standards and Technology, to accelerate adoption of new 

10 and existing technologies and processes that improve en11 ergy efficiency. 

12 ‘‘(c) RESEARCH AND DEVELOPMENT PROGRAM FOR

13 SUSTAINABLE MANUFACTURING AND INDUSTRIAL TECH14 NOLOGIES AND PROCESSES.—As part of the industrial ef15 ficiency programs of the Department of Energy, the Sec16 retary shall carry out a joint industry-government partner17 ship program to research, develop, and demonstrate new 

18 sustainable manufacturing and industrial technologies and 

19 processes that maximize the energy efficiency of industrial 

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

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

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

23 6201) is amended by adding at the end of the items relat24 ing to part E of title III the following: 

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


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1 SEC. 204. CONFORMING AMENDMENTS. 

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

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

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

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

6 13453, 13456) are repealed. 

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

8 (42 U.S.C. 13451(a)) is amended in the third sentence 

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

10 2107, and 2108’’ and inserting ‘‘sections 2102, 2104, 

11 2105, 2106, and 2108 of this Act and section 376 of the 

12 Energy Policy and Conservation Act,’’. 

13 Subtitle B—Supply Star 

14 SEC. 211. SUPPLY STAR. 

15 The Energy Policy and Conservation Act is amended 

16 by inserting after section 324A (42 U.S.C. 6294a) the fol17 lowing: 

18 ‘‘SEC. 324B. SUPPLY STAR PROGRAM. 

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

20 Department of Energy a Supply Star program to identify 

21 and promote practices, recognize companies, and, as ap22 propriate, recognize products that use highly efficient sup23 ply chains in a manner that conserves energy, water, and 

24 other resources. 

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

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


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

2 and 

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

4 program established under section 324A. 

5 ‘‘(c) DUTIES.—In carrying out the Supply Star pro6 gram described in subsection (a), the Secretary shall— 

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

8 and, as appropriate, recognize products that comply 

9 with the Supply Star program as the preferred prac10 tices, companies, and products in the marketplace 

11 for maximizing supply chain efficiency; 

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

13 awareness of the Supply Star program; 

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

15 chain energy resource consumption; 

16 ‘‘(4) develop and disseminate metrics, proc17 esses, and analytical tools (including software) for 

18 evaluating supply chain energy resource use; 

19 ‘‘(5) develop guidance at the sector level for im20 proving supply chain efficiency; 

21 ‘‘(6) work with domestic and international orga22 nizations to harmonize approaches to analyzing sup23 ply chain efficiency, including the development of a 

24 consistent set of tools, templates, calculators, and 

25 databases; and 


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1 ‘‘(7) work with industry, including small busi2 nesses, to improve supply chain efficiency through 

3 activities that include— 

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

5 and 

6 ‘‘(B) providing opportunities to benchmark 

7 supply chain efficiency. 

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

9 chain efficiency carried out by the Secretary with respect 

10 to a specific product, the Secretary shall consider energy 

11 consumption and resource use throughout the entire 

12 lifecycle of a product, including production, transport, 

13 packaging, use, and disposal. 

14 ‘‘(e) GRANTS AND INCENTIVES.— 

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

16 grants or other forms of incentives on a competitive 

17 basis to eligible entities, as determined by the Sec18 retary, for the purposes of— 

19 ‘‘(A) studying supply chain energy resource 

20 efficiency; and 

21 ‘‘(B) demonstrating and achieving reduc22 tions in the energy resource consumption of 

23 commercial products through changes and im24 provements to the production supply and dis25 tribution chain of the products. 


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

2 or data generated as a result of the grants or incen3 tives described in paragraph (1) shall be used to in4 form the development of the Supply Star Program. 

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

6 support professional training programs to develop and 

7 communicate methods, practices, and tools for improving 

8 supply chain efficiency. 

9 ‘‘(g) EFFECT OF OUTSOURCING OF AMERICAN

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

11 American jobs in the production of a product shall not 

12 count as a positive factor in determining supply chain effi13 ciency. 

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

15 is authorized to be appropriated to carry out this section 

16 $10,000,000 for the period of fiscal years 2014 through 

17 2023.’’. 

18 Subtitle C—Electric Motor Rebate 

19 Program 

20 SEC. 221. ENERGY SAVING MOTOR CONTROL, ELECTRIC 

21 MOTOR, AND ADVANCED MOTOR SYSTEMS 

22 REBATE PROGRAM. 

23 (a) DEFINITIONS.—In this section: 

24 (1) ADVANCED MOTOR AND DRIVE SYSTEM.— 

25 The term ‘‘advanced motor and drive system’’ means 


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1 an electric motor and any required associated elec2 tronic control that— 

3 (A) offers variable or multiple speed oper4 ation; 

5 (B) offers efficiency at a rated full load 

6 that is greater than the efficiency described for 

7 the equivalent rating in— 

8 (i) table 12–12 of National Electrical 

9 Manufactures Association (NEMA MG 1– 

10 2011); or 

11 (ii) section 431.446 of National Elec12 trical Manufactures Association (2012); 

13 and 

14 (C) uses— 

15 (i) permanent magnet alternating cur16 rent synchronous motor technology; 

17 (ii) electronically commutated motor 

18 technology; 

19 (iii) switched reluctance motor tech20 nology; 

21 (iv) synchronous reluctance motor 

22 technology; or 

23 (v) such other motor that has greater 

24 than 1 horsepower and uses a drive sysVerDate Mar 15 2010 00:56 Apr 30, 2014 Jkt 039200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 E:\BILLS\S2262.PCS S2262

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1 tems technology, as determined by the Sec2 retary. 

3 (2) ELECTRIC MOTOR.—The term ‘‘electric 

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

5 431.12 of title 10, Code of Federal Regulations (as 

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

7 (3) QUALIFIED PRODUCT.—The term ‘‘qualified 

8 product’’ means— 

9 (A) a new constant speed electric motor 

10 control that— 

11 (i) is attached to an electric motor; 

12 and 

13 (ii) reduces the energy use of the elec14 tric motor by not less than 5 percent; and 

15 (B) commercial or industrial machinery or 

16 equipment that— 

17 (i) is manufactured and incorporates 

18 an advanced motor and drive system that 

19 has greater than 1 horsepower into a rede20 signed machine or equipment that did not 

21 previously make use of the advanced motor 

22 and drive system; or 

23 (ii) was previously used and placed 

24 back into service in calendar year 2014 or 

25 2015 that upgrades the existing machine 


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1 or equipment with an advanced motor and 

2 drive system. 

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

4 the date of enactment of this Act, the Secretary shall es5 tablish a program to provide rebates for expenditures 

6 made by qualified entities for the purchase and installa7 tion of qualified products. 

8 (c) QUALIFIED ENTITIES.—A qualified entity under 

9 this section shall be— 

10 (1) in the case of a qualified product described 

11 in subsection (a)(3)(A), the purchaser of the quali12 fied product for whom the qualified product is in13 stalled; and 

14 (2) in the case of a qualified product described 

15 in subsection (a)(3)(B)), the manufacturer of the 

16 machine or equipment that incorporated the ad17 vanced motor and drive system into the machine or 

18 equipment. 

19 (d) REQUIREMENTS.— 

20 (1) APPLICATION.—To be eligible to receive a 

21 rebate under this section, a qualified entity shall 

22 submit to the Secretary or an entity designated by 

23 the Secretary an application and certification in 

24 such form, at such time, and containing such infor25 mation as the Secretary may require, including demVerDate Mar 15 2010 00:56 Apr 30, 2014 Jkt 039200 PO 00000 Frm 00060 Fmt 6652 Sfmt 6201 E:\BILLS\S2262.PCS S2262

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1 onstrated evidence that the qualified entity pur2 chased a qualified product and— 

3 (A) in the case of a qualified product de4 scribed in subsection (a)(3)(A)— 

5 (i) demonstrated evidence that the 

6 qualified entity installed the qualified prod7 uct in calendar year 2014 or 2015; 

8 (ii) demonstrated evidence that the 

9 qualified product reduces motor energy use 

10 by not less than 5 percent, in accordance 

11 with procedures approved by the Secretary; 

12 and 

13 (iii) the serial number, manufacturer, 

14 and model number from the nameplate of 

15 the installed motor of the qualified entity 

16 on which the qualified product was in17 stalled; and 

18 (B) in the case of a qualified product de19 scribed in subsection (a)(3)(B)— 

20 (i) demonstrated evidence that the 

21 manufacturer— 

22 (I) redesigned a machine or 

23 equipment of a manufacturer that did 

24 not previously make use of an ad25 vanced motor and drive system; or 


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1 (II) upgraded a used machine or 

2 equipment to incorporate an advanced 

3 motor and drive system; 

4 (ii) demonstrated evidence that the 

5 qualified product was sold, installed, or 

6 placed back into service in calendar year 

7 2014 or 2015; and 

8 (iii) the serial number, manufacturer, 

9 and model number from the nameplate of 

10 the installed motor of the qualified entity 

11 with which the advanced motor and drive 

12 system is integrated. 

13 (2) AUTHORIZED AMOUNT OF REBATE.—The 

14 Secretary may provide to a qualified entity that has 

15 satisfied the requirements of paragraph (1) a rebate 

16 the amount of which shall be equal to the product 

17 obtained by multiplying— 

18 (A) the nameplate rated horsepower of— 

19 (i) the electric motor to which the new 

20 constant speed electric motor control is at21 tached; 

22 (ii) the new electric motor that re23 placed a previously installed electric motor; 

24 or 


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1 (iii) the advanced electric motor con2 trol system; and 

3 (B) $25. 

4 (3) MAXIMUM AGGREGATE AMOUNT.—No entity 

5 shall be entitled to aggregate rebates under this sec6 tion in excess of $250,000. 

7 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

8 authorized to be appropriated to carry out this section 

9 $5,000,000 for each of fiscal years 2014 and 2015, to re10 main available until expended. 

11 Subtitle D—Transformer Rebate 

12 Program 

13 SEC. 231. ENERGY EFFICIENT TRANSFORMER REBATE PRO14 GRAM. 

15 (a) DEFINITION OF QUALIFIED TRANSFORMER.—In 

16 this section, the term ‘‘qualified transformer’’ means a 

17 transformer that meets or exceeds the National Electrical 

18 Manufacturers Association (NEMA) Premium Efficiency 

19 designation, calculated to 2 decimal points, as having 30 

20 percent fewer losses than the NEMA TP–1–2002 effi21 ciency standard for a transformer of the same number of 

22 phases and capacity, as measured in kilovolt-amperes. 

23 (b) ESTABLISHMENT.—Not later than January 1, 

24 2014, the Secretary shall establish a program under which 

25 rebates are provided for expenditures made by owners of 


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1 industrial or manufacturing facilities, commercial build2 ings, and multifamily residential buildings for the pur3 chase and installation of a new energy efficient trans4 formers. 

5 (c) REQUIREMENTS.— 

6 (1) APPLICATION.—To be eligible to receive a 

7 rebate under this section, an owner shall submit to 

8 the Secretary an application in such form, at such 

9 time, and containing such information as the Sec10 retary may require, including demonstrated evidence 

11 that the owner purchased a qualified transformer. 

12 (2) AUTHORIZED AMOUNT OF REBATE.—For 

13 qualified transformers, rebates, in dollars per kilo14 volt-ampere (referred to in this paragraph as 

15 ‘‘kVA’’) shall be— 

16 (A) for 3-phase transformers— 

17 (i) with a capacity of not greater than 

18 10 kVA, 15; 

19 (ii) with a capacity of not less than 10 

20 kVA and not greater than 100 kVA, the 

21 difference between 15 and the quotient ob22 tained by dividing— 

23 (I) the difference between— 

24 (aa) the capacity of the 

25 transformer in kVA; and 


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1 (bb) 10; by 

2 (II) 9; and 

3 (iii) with a capacity greater than or 

4 equal to 100 kVA, 5; and 

5 (B) for single-phase transformers, 75 per6 cent of the rebate for a 3-phase transformer of 

7 the same capacity. 

8 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

9 authorized to be appropriated to carry out this section 

10 $5,000,000 for each of fiscal years 2014 and 2015, to re11 main available until expended. 

12 (e) TERMINATION OF EFFECTIVENESS.—The author13 ity provided by this section terminates effective December 

14 31, 2015. 

15 TITLE III—FEDERAL AGENCY 

16 ENERGY EFFICIENCY 

17 SEC. 301. ENERGY-EFFICIENT AND ENERGY-SAVING INFOR18 MATION TECHNOLOGIES. 

19 Section 543 of the National Energy Conservation 

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

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

22 (relating to large capital energy investments) as sub23 section (g); and 

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


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1 ‘‘(h) FEDERAL IMPLEMENTATION STRATEGY FOR

2 ENERGY-EFFICIENT AND ENERGY-SAVING INFORMATION

3 TECHNOLOGIES.— 

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

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

6 means the Director of the Office of Manage7 ment and Budget. 

8 ‘‘(B) INFORMATION TECHNOLOGY.—The 

9 term ‘information technology’ has the meaning 

10 given the term in section 11101 of title 40, 

11 United States Code. 

12 ‘‘(2) DEVELOPMENT OF IMPLEMENTATION

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

14 enactment of this subsection, each Federal agency 

15 shall collaborate with the Director to develop an im16 plementation strategy (including best-practices and 

17 measurement and verification techniques) for the 

18 maintenance, purchase, and use by the Federal 

19 agency of energy-efficient and energy-saving infor20 mation technologies. 

21 ‘‘(3) ADMINISTRATION.—In developing an im22 plementation strategy, each Federal agency shall 

23 consider— 

24 ‘‘(A) advanced metering infrastructure; 


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1 ‘‘(B) energy efficient data center strategies 

2 and methods of increasing asset and infrastruc3 ture utilization; 

4 ‘‘(C) advanced power management tools; 

5 ‘‘(D) building information modeling, in6 cluding building energy management; and 

7 ‘‘(E) secure telework and travel substi8 tution tools. 

9 ‘‘(4) PERFORMANCE GOALS.— 

10 ‘‘(A) IN GENERAL.—Not later than Sep11 tember 30, 2014, the Director, in consultation 

12 with the Secretary, shall establish performance 

13 goals for evaluating the efforts of Federal agen14 cies in improving the maintenance, purchase, 

15 and use of energy-efficient and energy-saving 

16 information technology systems. 

17 ‘‘(B) BEST PRACTICES.—The Chief Infor18 mation Officers Council established under sec19 tion 3603 of title 44, United States Code, shall 

20 supplement the performance goals established 

21 under this paragraph with recommendations on 

22 best practices for the attainment of the per23 formance goals, to include a requirement for 

24 agencies to consider the use of— 


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1 ‘‘(i) energy savings performance con2 tracting; and 

3 ‘‘(ii) utility energy services con4 tracting. 

5 ‘‘(5) REPORTS.— 

6 ‘‘(A) AGENCY REPORTS.—Each Federal 

7 agency subject to the requirements of this sub8 section shall include in the report of the agency 

9 under section 527 of the Energy Independence 

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

11 description of the efforts and results of the 

12 agency under this subsection. 

13 ‘‘(B) OMB GOVERNMENT EFFICIENCY RE14 PORTS AND SCORECARDS.—Effective beginning 

15 not later than October 1, 2014, the Director 

16 shall include in the annual report and scorecard 

17 of the Director required under section 528 of 

18 the Energy Independence and Security Act of 

19 2007 (42 U.S.C. 17144) a description of the ef20 forts and results of Federal agencies under this 

21 subsection. 

22 ‘‘(C) USE OF EXISTING REPORTING STRUC23 TURES.—The Director may require Federal 

24 agencies to submit any information required to 

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1 porting structures in use as of the date of en2 actment of the Energy Savings and Industrial 

3 Competitiveness Act of 2014.’’. 

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

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

6 amended— 

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

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

9 (2) by inserting after subsection (c) the fol10 lowing: 

11 ‘‘(d) AVAILABILITY OF FUNDS FOR DESIGN UP12 DATES.— 

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

14 for any project for which congressional approval is 

15 received under subsection (a) and for which the de16 sign has been substantially completed but construc17 tion has not begun, the Administrator of General 

18 Services may use appropriated funds to update the 

19 project design to meet applicable Federal building 

20 energy efficiency standards established under section 

21 305 of the Energy Conservation and Production Act 

22 (42 U.S.C. 6834) and other requirements estab23 lished under section 3312. 

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

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


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1 estimated energy or other cost savings associated 

2 with the updates as determined by a life cycle cost 

3 analysis under section 544 of the National Energy 

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

5 SEC. 303. ENERGY EFFICIENT DATA CENTERS. 

6 Section 453 of the Energy Independence and Security 

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

8 (1) in subsection (c), by striking paragraph (1) 

9 and inserting the following: 

10 ‘‘(1) IN GENERAL.—Not later than 30 days 

11 after the date of enactment of the Energy Savings 

12 and Industrial Competitiveness Act of 2014, the 

13 Secretary and the Administrator shall— 

14 ‘‘(A) designate an established information 

15 technology industry organization to coordinate 

16 the program described in subsection (b); and 

17 ‘‘(B) make the designation public, includ18 ing on an appropriate website.’’; 

19 (2) by striking subsections (e) and (f) and in20 serting the following: 

21 ‘‘(e) STUDY.—The Secretary, with assistance from 

22 the Administrator, shall— 

23 ‘‘(1) not later than December 31, 2014, make 

24 available to the public an update to the Report to 

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1 ciency published on August 2, 2007, under section 

2 1 of Public Law 109–431 (120 Stat. 2920), that 

3 provides— 

4 ‘‘(A) a comparison and gap analysis of the 

5 estimates and projections contained in the origi6 nal report with new data regarding the period 

7 from 2007 through 2013; 

8 ‘‘(B) an analysis considering the impact of 

9 information technologies, to include 

10 virtualization and cloud computing, in the pub11 lic and private sectors; and 

12 ‘‘(C) updated projections and recommenda13 tions for best practices through fiscal year 

14 2020; and 

15 ‘‘(2) collaborate with the organization des16 ignated under subsection (c) in preparing the report. 

17 ‘‘(f) DATA CENTER ENERGY PRACTITIONER PRO18 GRAM.— 

19 ‘‘(1) IN GENERAL.—The Secretary, in collabo20 ration with the organization designated under sub21 section (c) and in consultation with the Adminis22 trator for the Office of E-Government and Informa23 tion Technology within the Office of Management 

24 and Budget, shall maintain a data center energy 

25 practitioner program that leads to the certification 


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1 of energy practitioners qualified to evaluate the en2 ergy usage and efficiency opportunities in data cen3 ters. 

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

5 shall consider having the data centers of the agency 

6 evaluated every 4 years by energy practitioners cer7 tified pursuant to the program, whenever practicable 

8 using certified practitioners employed by the agen9 cy.’’; 

10 (3) by redesignating subsection (g) as sub11 section (j); and 

12 (4) by inserting after subsection (f) the fol13 lowing: 

14 ‘‘(g) OPEN DATA INITIATIVE.— 

15 ‘‘(1) IN GENERAL.—The Secretary, in collabo16 ration with the organization designated under sub17 section (c) and in consultation with the Adminis18 trator for the Office of E-Government and Informa19 tion Technology within the Office of Management 

20 and Budget, shall establish an open data initiative 

21 for Federal data center energy usage data, with the 

22 purpose of making the data available and accessible 

23 in a manner that empowers further data center opti24 mization and consolidation. 


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1 ‘‘(2) ADMINISTRATION.—In establishing the ini2 tiative, the Secretary shall consider use of the online 

3 Data Center Maturity Model. 

4 ‘‘(h) INTERNATIONAL SPECIFICATIONS AND

5 METRICS.—The Secretary, in collaboration with the orga6 nization designated under subsection (c), shall actively 

7 participate in efforts to harmonize global specifications 

8 and metrics for data center energy efficiency. 

9 ‘‘(i) DATA CENTER UTILIZATION METRIC.—The Sec10 retary, in collaboration with the organization designated 

11 under subsection (c), shall assist in the development of 

12 an efficiency metric that measures the energy efficiency 

13 of the overall data center.’’. 

14 SEC. 304. BUDGET-NEUTRAL DEMONSTRATION PROGRAM 

15 FOR ENERGY AND WATER CONSERVATION IM16 PROVEMENTS AT MULTIFAMILY RESIDEN17 TIAL UNITS. 

18 (a) ESTABLISHMENT.—The Secretary of Housing 

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

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

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

22 enactment of this Act, and ending on September 30, 2017, 

23 the Secretary may enter into budget-neutral, performance24 based agreements that result in a reduction in energy or 

25 water costs with such entities as the Secretary determines 


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1 to be appropriate under which the entities shall carry out 

2 projects for energy or water conservation improvements at 

3 not more than 20,000 residential units in multifamily 

4 buildings participating in— 

5 (1) the project-based rental assistance program 

6 under section 8 of the United States Housing Act of 

7 1937 (42 U.S.C. 1437f), other than assistance pro8 vided under section 8(o) of that Act; 

9 (2) the supportive housing for the elderly pro10 gram under section 202 of the Housing Act of 1959 

11 (12 U.S.C. 1701q); or 

12 (3) the supportive housing for persons with dis13 abilities program under section 811(d)(2) of the 

14 Cranston-Gonzalez National Affordable Housing Act 

15 (42 U.S.C. 8013(d)(2)). 

16 (b) REQUIREMENTS.— 

17 (1) PAYMENTS CONTINGENT ON SAVINGS.— 

18 (A) IN GENERAL.—The Secretary shall 

19 provide to an entity a payment under an agree20 ment under this section only during applicable 

21 years for which an energy or water cost savings 

22 is achieved with respect to the applicable multi23 family portfolio of properties, as determined by 

24 the Secretary, in accordance with subparagraph 

25 (B). 


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1 (B) PAYMENT METHODOLOGY.— 

2 (i) IN GENERAL.—Each agreement 

3 under this section shall include a pay-for4 success provision— 

5 (I) that will serve as a payment 

6 threshold for the term of the agree7 ment; and 

8 (II) pursuant to which the De9 partment of Housing and Urban De10 velopment shall share a percentage of 

11 the savings at a level determined by 

12 the Secretary that is sufficient to 

13 cover the administrative costs of car14 rying out this section. 

15 (ii) LIMITATIONS.—A payment made 

16 by the Secretary under an agreement 

17 under this section shall— 

18 (I) be contingent on documented 

19 utility savings; and 

20 (II) not exceed the utility savings 

21 achieved by the date of the payment, 

22 and not previously paid, as a result of 

23 the improvements made under the 

24 agreement. 


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1 (C) THIRD PARTY VERIFICATION.—Savings 

2 payments made by the Secretary under this sec3 tion shall be based on a measurement and 

4 verification protocol that includes at least— 

5 (i) establishment of a weather-normal6 ized and occupancy-normalized utility con7 sumption baseline established preretrofit; 

8 (ii) annual third party confirmation of 

9 actual utility consumption and cost for 

10 owner-paid utilities; 

11 (iii) annual third party validation of 

12 the tenant utility allowances in effect dur13 ing the applicable year and vacancy rates 

14 for each unit type; and 

15 (iv) annual third party determination 

16 of savings to the Secretary. 

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

18 this section shall be not longer than 12 years. 

19 (3) ENTITY ELIGIBILITY.—The Secretary 

20 shall— 

21 (A) establish a competitive process for en22 tering into agreements under this section; and 

23 (B) enter into such agreements only with 

24 entities that demonstrate significant experience 

25 relating to— 


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1 (i) financing and operating properties 

2 receiving assistance under a program de3 scribed in subsection (a); 

4 (ii) oversight of energy and water con5 servation programs, including oversight of 

6 contractors; and 

7 (iii) raising capital for energy and 

8 water conservation improvements from 

9 charitable organizations or private inves10 tors. 

11 (4) GEOGRAPHICAL DIVERSITY.—Each agree12 ment entered into under this section shall provide 

13 for the inclusion of properties with the greatest fea14 sible regional and State variance. 

15 (c) PLAN AND REPORTS.— 

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

17 date of enactment of this Act, the Secretary shall 

18 submit to the Committees on Appropriations of the 

19 House of Representatives and the Senate a detailed 

20 plan for the implementation of this section. 

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

22 date of enactment of this Act, and annually there23 after, the Secretary shall— 

24 (A) conduct an evaluation of the program 

25 under this section; and 


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1 (B) submit to Congress a report describing 

2 each evaluation conducted under subparagraph 

3 (A). 

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

5 agreement under this section is in effect, the Secretary 

6 may use to carry out this section any funds appropriated 

7 to the Secretary for the renewal of contracts under a pro8 gram described in subsection (a). 

9 TITLE IV—REGULATORY 

10 PROVISIONS 

11 Subtitle A—Third-party Certifi12 cation Under Energy Star Pro13 gram 

14 SEC. 401. THIRD-PARTY CERTIFICATION UNDER ENERGY 

15 STAR PROGRAM. 

16 Section 324A of the Energy Policy and Conservation 

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

18 the following: 

19 ‘‘(e) THIRD-PARTY CERTIFICATION.— 

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

21 not later than 180 days after the date of enactment 

22 of this subsection, the Administrator shall revise the 

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1 ments of the Energy Star program for a period of 

2 at least 18 months. 

3 ‘‘(2) ADMINISTRATION.—In the case of a pro4 gram partner described in paragraph (1), the new 

5 requirements under paragraph (1)— 

6 ‘‘(A) shall not require third-party certifi7 cation for a product to be listed; but 

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

9 product information be submitted to facilitate 

10 product listing and performance verification for 

11 a sample of products. 

12 ‘‘(3) THIRD PARTIES.—Nothing in this sub13 section prevents the Administrator from using third 

14 parties in the course of the administration of the 

15 Energy Star program. 

16 ‘‘(4) TERMINATION.— 

17 ‘‘(A) IN GENERAL.—Subject to subpara18 graph (B), an exemption from third-party cer19 tification provided to a program partner under 

20 paragraph (1) shall terminate if the program 

21 partner is found to have violated program re22 quirements with respect to at least 2 separate 

23 models during a 2-year period. 

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

25 program partner under subparagraph (A) shall 


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1 cease if the program partner complies with all 

2 Energy Star program requirements for a period 

3 of at least 3 years.’’. 

4 Subtitle B—Federal Green 

5 Buildings 

6 SEC. 411. HIGH-PERFORMANCE GREEN FEDERAL BUILD7 INGS. 

8 Section 436(h) of the Energy Independence and Se9 curity Act of 2007 (42 U.S.C. 17092(h)) is amended— 

10 (1) in the subsection heading, by striking ‘‘SYS11 TEM’’ and inserting ‘‘SYSTEMS’’; 

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

13 following: 

14 ‘‘(1) IN GENERAL.—Based on an ongoing re15 view, the Federal Director shall identify and shall 

16 provide to the Secretary pursuant to section 

17 305(a)(3)(D) of the Energy Conservation and Pro18 duction Act (42 U.S.C. 6834(a)(3)(D)), a list of 

19 those certification systems that the Director identi20 fies as the most likely to encourage a comprehensive 

21 and environmentally sound approach to certification 

22 of green buildings.’’; and 

23 (3) in paragraph (2)— 


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1 (A) in the matter preceding subparagraph 

2 (A), by striking ‘‘system’’ and inserting ‘‘sys3 tems’’; 

4 (B) by striking subparagraph (A) and in5 serting the following: 

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

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

8 the Energy Conservation and Production Act 

9 (42 U.S.C. 6834(a)(3)(D)), which shall— 

10 ‘‘(i) be carried out by the Federal Di11 rector to compare and evaluate standards; 

12 and 

13 ‘‘(ii) allow any developer or adminis14 trator of a rating system or certification 

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

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

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

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

19 period at the end and inserting a semicolon; 

20 and 

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

22 ‘‘(G) a finding that, for all credits address23 ing grown, harvested, or mined materials, the 

24 system does not discriminate against the use of 


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1 domestic products that have obtained certifi2 cations of responsible sourcing; and 

3 ‘‘(H) a finding that the system incor4 porates life-cycle assessment as a credit path5 way.’’. 

6 Subtitle C—Water Heaters 

7 SEC. 421. GRID-ENABLED WATER HEATERS. 

8 Part B of title III of the Energy Policy and Conserva9 tion Act (42 U.S.C. 6291 et seq.) is amended— 

10 (1) in section 325(e), by adding at the end the 

11 following: 

12 ‘‘(6) ADDITIONAL STANDARDS FOR GRID-EN13 ABLED WATER HEATERS.— 

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

15 ‘‘(i) ACTIVATION KEY.—The term ‘ac16 tivation key’ means a physical device or 

17 control directly on the water heater, a soft18 ware code, or a digital communication 

19 means— 

20 ‘‘(I) that must be activated to en21 able the product to operate continu22 ously and at its designed specifica23 tions and capabilities; and 

24 ‘‘(II) without which activation 

25 the product will provide not greater 


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1 than 50 percent of the rated first 

2 hour delivery of hot water certified by 

3 the manufacturer. 

4 ‘‘(ii) GRID-ENABLED WATER HEAT5 ER.—The term ‘grid-enabled water heater’ 

6 means an electric resistance water heat7 er— 

8 ‘‘(I) with a rated storage tank 

9 volume of more than 75 gallons; 

10 ‘‘(II) manufactured on or after 

11 April 16, 2015; 

12 ‘‘(III) that has— 

13 ‘‘(aa) an energy factor of 

14 not less than 1.061 minus the 

15 product obtained by multi16 plying— 

17 ‘‘(AA) the rated storage 

18 volume of the tank, ex19 pressed in gallons; and 

20 ‘‘(BB) 0.00168; or 

21 ‘‘(bb) an efficiency level 

22 equivalent to the energy factor 

23 under item (aa) and expressed as 

24 a uniform energy descriptor 

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1 dure for water heaters described 

2 in paragraph (5); 

3 ‘‘(IV) equipped by the manufac4 turer with an activation key; and 

5 ‘‘(V) that bears a permanent 

6 label applied by the manufacturer 

7 that— 

8 ‘‘(aa) is made of material 

9 not adversely affected by water; 

10 ‘‘(bb) is attached by means 

11 of non-water-soluble adhesive; 

12 and 

13 ‘‘(cc) advises purchasers and 

14 end-users of the intended and ap15 propriate use of the product with 

16 the following notice printed in 

17 16.5 point Arial Narrow Bold 

18 font: 

19 ‘‘ ‘IMPORTANT INFORMATION: This water heater is 

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

21 or demand response program. It will not provide adequate 

22 hot water unless enrolled in such a program and activated 

23 by your utility company or another program operator. 

24 Confirm the availability of a program in your local area 

25 before purchasing or installing this product.’. 


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1 ‘‘(B) REQUIREMENT.—The manufacturer 

2 or private labeler shall provide the activation 

3 key only to utilities or other companies oper4 ating electric thermal storage or demand re5 sponse programs that use grid-enabled water 

6 heaters. 

7 ‘‘(C) REPORTS.— 

8 ‘‘(i) MANUFACTURERS.—The Sec9 retary shall require each manufacturer of 

10 grid-enabled water heaters to report to the 

11 Secretary annually the number of grid-en12 abled water heaters that the manufacturer 

13 ships each year. 

14 ‘‘(ii) OPERATORS.—The Secretary 

15 shall require utilities and other demand re16 sponse and thermal storage program oper17 ators to report annually the number of 

18 grid-enabled water heaters activated for 

19 their programs using forms of the Energy 

20 Information Agency or using such other 

21 mechanism that the Secretary determines 

22 appropriate after an opportunity for notice 

23 and comment. 

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1 ment data reported by manufacturers as 

2 confidential business information. 

3 ‘‘(D) PUBLICATION OF INFORMATION.— 

4 ‘‘(i) IN GENERAL.—In 2017 and 

5 2019, the Secretary shall publish an anal6 ysis of the data collected under subpara7 graph (C) to assess the extent to which 

8 shipped products are put into use in de9 mand response and thermal storage pro10 grams. 

11 ‘‘(ii) PREVENTION OF PRODUCT DI12 VERSION.—If the Secretary determines 

13 that sales of grid-enabled water heaters ex14 ceed by 15 percent or greater the number 

15 of such products activated for use in de16 mand response and thermal storage pro17 grams annually, the Secretary shall, after 

18 opportunity for notice and comment, estab19 lish procedures to prevent product diver20 sion for non-program purposes. 

21 ‘‘(E) COMPLIANCE.— 

22 ‘‘(i) IN GENERAL.—Subparagraphs 

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

24 until the Secretary determines under this 

25 section that grid-enabled water heaters do 


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1 not require a separate efficiency require2 ment. 

3 ‘‘(ii) EFFECTIVE DATE.—If the Sec4 retary exercises the authority described in 

5 clause (i) or amends the efficiency require6 ment for grid-enabled water heaters, that 

7 action will take effect on the date de8 scribed in subsection (m)(4)(A)(ii). 

9 ‘‘(iii) CONSIDERATION.—In carrying 

10 out this section with respect to electric 

11 water heaters, the Secretary shall consider 

12 the impact on thermal storage and demand 

13 response programs, including the con14 sequent impact on energy savings, electric 

15 bills, electric reliability, integration of re16 newable resources, and the environment. 

17 ‘‘(iv) REQUIREMENTS.—In carrying 

18 out this subparagraph, the Secretary shall 

19 require that grid-enabled water heaters be 

20 equipped with communication capability to 

21 enable the grid-enabled water heaters to 

22 participate in ancillary services programs if 

23 the Secretary determines that the tech24 nology is available, practical, and cost-ef25 fective.’’; and 


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1 (2) in section 332— 

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

3 the end; 

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

5 the period at the end and inserting a semicolon; 

6 (C) by redesignating the second paragraph 

7 (6) as paragraph (7); 

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

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

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

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

12 ‘‘(8) with respect to grid-enabled water heaters 

13 that are not used as part of an electric thermal stor14 age or demand response program, for any person 

15 knowingly and repeatedly— 

16 ‘‘(A) to distribute activation keys for those 

17 grid-enabled water heaters; 

18 ‘‘(B) otherwise to enable the full operation 

19 of those grid-enabled water heaters; or 

20 ‘‘(C) to remove or render illegible the la21 bels of those grid-enabled water heaters.’’. 


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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 2014, 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 2014, 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 2014; 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; 

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 and 

7 ‘‘(V) in addition to complying 

8 with the other requirements under 

9 this paragraph, unless found not to be 

10 life-cycle cost effective, new Federal 

11 buildings that are at least 5,000 

12 square feet in size shall comply with 

13 the Guiding Principles for Sustainable 

14 New Construction and Major Renova15 tions (as established in the document 

16 entitled High Performance and Sus17 tainable Buildings Guidance (Final) 

18 and dated December 1, 2008). 

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

20 not apply to unaltered portions of existing 

21 Federal buildings and systems that have 

22 been added to or altered. 

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

24 after the date of approval of each subsequent 

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1 national Energy Conservation Code, as appro2 priate, the Secretary shall determine whether 

3 the revised standards established under sub4 paragraph (A) should be updated to reflect the 

5 revisions, based on the energy savings and life6 cycle cost-effectiveness of the revisions.’’; 

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

8 In the budget request’’ and inserting the fol9 lowing: 

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

11 request’’; and 

12 (C) by striking subparagraph (D) and in13 serting the following: 

14 ‘‘(D) CERTIFICATION FOR GREEN BUILD15 INGS.— 

16 ‘‘(i) SUSTAINABLE DESIGN PRIN17 CIPLES.—Sustainable design principles 

18 shall be applied to the siting, design, and 

19 construction of buildings covered by this 

20 subparagraph. 

21 ‘‘(ii) SELECTION OF CERTIFICATION

22 SYSTEMS.—The Secretary, after reviewing 

23 the findings of the Federal Director under 

24 section 436(h) of the Energy Independence 

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


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1 17092(h)), in consultation with the Admin2 istrator of General Services, and in con3 sultation with the Secretary of Defense re4 lating to those facilities under the custody 

5 and control of the Department of Defense, 

6 shall determine those certification systems 

7 for green commercial and residential build8 ings that the Secretary determines to be 

9 the most likely to encourage a comprehen10 sive and environmentally sound approach 

11 to certification of green buildings. 

12 ‘‘(iii) BASIS FOR SELECTION.—The 

13 determination of the certification systems 

14 under clause (ii) shall be based on ongoing 

15 review of the findings of the Federal Direc16 tor under section 436(h) of the Energy 

17 Independence and Security Act of 2007 

18 (42 U.S.C. 17092(h)) and the criteria de19 scribed in clause (v). 

20 ‘‘(iv) ADMINISTRATION.—In deter21 mining certification systems under this 

22 subparagraph, the Secretary shall— 

23 ‘‘(I) make a separate determina24 tion for all or part of each system; 


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1 ‘‘(II) confirm that the criteria 

2 used to support the selection of build3 ing products, materials, brands, and 

4 technologies are fair and neutral 

5 (meaning that such criteria are based 

6 on an objective assessment of relevant 

7 technical data), do not prohibit, dis8 favor, or discriminate against selec9 tion based on technically inadequate 

10 information to inform human or envi11 ronmental risk, and are expressed to 

12 prefer performance measures when13 ever performance measures may rea14 sonably be used in lieu of prescriptive 

15 measures; and 

16 ‘‘(III) use environmental and 

17 health criteria that are based on risk 

18 assessment methodology that is gen19 erally accepted by the applicable sci20 entific disciplines. 

21 ‘‘(v) CONSIDERATIONS.—In deter22 mining the green building certification sys23 tems under this subparagraph, the Sec24 retary shall take into consideration— 


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1 ‘‘(I) the ability and availability of 

2 assessors and auditors to independ3 ently verify the criteria and measure4 ment of metrics at the scale necessary 

5 to implement this subparagraph; 

6 ‘‘(II) the ability of the applicable 

7 certification organization to collect 

8 and reflect public comment; 

9 ‘‘(III) the ability of the standard 

10 to be developed and revised through a 

11 consensus-based process; 

12 ‘‘(IV) an evaluation of the 

13 robustness of the criteria for a high14 performance green building, which 

15 shall give credit for promoting— 

16 ‘‘(aa) efficient and sustain17 able use of water, energy, and 

18 other natural resources; 

19 ‘‘(bb) use of renewable en20 ergy sources; 

21 ‘‘(cc) improved indoor envi22 ronmental quality through en23 hanced indoor air quality, ther24 mal comfort, acoustics, day light25 ing, pollutant source control, and 


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1 use of low-emission materials and 

2 building system controls; and 

3 ‘‘(dd) such other criteria as 

4 the Secretary determines to be 

5 appropriate; and 

6 ‘‘(V) national recognition within 

7 the building industry. 

8 ‘‘(vi) REVIEW.—The Secretary, in 

9 consultation with the Administrator of 

10 General Services and the Secretary of De11 fense, shall conduct an ongoing review to 

12 evaluate and compare private sector green 

13 building certification systems, taking into 

14 account— 

15 ‘‘(I) the criteria described in 

16 clause (v); and 

17 ‘‘(II) the identification made by 

18 the Federal Director under section 

19 436(h) of the Energy Independence 

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

21 17092(h)). 

22 ‘‘(vii) EXCLUSIONS.— 

23 ‘‘(I) IN GENERAL.—Subject to 

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1 ments of clause (v), the Secretary 

2 shall— 

3 ‘‘(aa) identify the portions 

4 of the system, whether pre5 requisites, credits, points, or oth6 erwise, that meet the review cri7 teria of clause (v); 

8 ‘‘(bb) determine the portions 

9 of the system that are suitable 

10 for use; and 

11 ‘‘(cc) exclude all other por12 tions of the system from identi13 fication and use. 

14 ‘‘(II) ENTIRE SYSTEMS.—The 

15 Secretary shall exclude an entire sys16 tem from use if an exclusion under 

17 subclause (I)— 

18 ‘‘(aa) impedes the integrated 

19 use of the system; 

20 ‘‘(bb) creates disparate re21 view criteria or unequal point ac22 cess for competing materials; or 

23 ‘‘(cc) increases agency costs 

24 of the use. 


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1 ‘‘(viii) INTERNAL CERTIFICATION

2 PROCESSES.—The Secretary may by rule 

3 allow Federal agencies to develop internal 

4 certification processes, using certified pro5 fessionals, in lieu of certification by certifi6 cation entities identified under clause (ii). 

7 ‘‘(ix) PRIVATIZED MILITARY HOUS8 ING.—With respect to privatized military 

9 housing, the Secretary of Defense, after 

10 consultation with the Secretary may, 

11 through rulemaking, develop alternative 

12 certification systems and levels than the 

13 systems and levels identified under clause 

14 (ii) that achieve an equivalent result in 

15 terms of energy savings, sustainable de16 sign, and green building performance. 

17 ‘‘(x) WATER CONSERVATION TECH18 NOLOGIES.—In addition to any use of 

19 water conservation technologies otherwise 

20 required by this section, water conservation 

21 technologies shall be applied to the extent 

22 that the technologies are life-cycle cost-ef23 fective. 

24 ‘‘(xi) EFFECTIVE DATE.— 


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1 ‘‘(I) DETERMINATIONS MADE

2 AFTER DECEMBER 31, 2015.—The 

3 amendments made by section 

4 432(b)(1)(C) of the Energy Savings 

5 and Industrial Competitiveness Act of 

6 2014 shall apply to any determination 

7 made by a Federal agency after De8 cember 31, 2015. 

9 ‘‘(II) DETERMINATIONS MADE ON

10 OR BEFORE DECEMBER 31, 2015.— 

11 This subparagraph (as in effect on the 

12 day before the date of enactment of 

13 the Energy Savings and Industrial 

14 Competitiveness Act of 2014) shall 

15 apply to any use of a certification sys16 tem for green commercial and residen17 tial buildings by a Federal agency on 

18 or before December 31, 2015.’’; and 

19 (2) by striking subsections (c) and (d) and in20 serting the following: 

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

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

23 building energy standards established under this sec24 tion; and 


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

2 (1), if the Secretary determines that significant en3 ergy savings would result, upgrade the standards to 

4 include all new energy efficiency and renewable en5 ergy measures that are technologically feasible and 

6 economically justified.’’. 

7 SEC. 433. ENHANCED ENERGY EFFICIENCY UNDER8 WRITING. 

9 (a) DEFINITIONS.—In this section: 

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

11 agency’’— 

12 (A) means— 

13 (i) an executive agency, as that term 

14 is defined in section 102 of title 31, United 

15 States Code; and 

16 (ii) any other agency of the Federal 

17 Government; and 

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

19 defined under section 1303 of the Federal 

20 Housing Enterprises Financial Safety and 

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

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

23 means a loan secured by a home that is issued, in24 sured, purchased, or securitized by a covered agency. 


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

2 means the mortgagor under a covered loan. 

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

4 means— 

5 (A) an original lender under a covered loan 

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

7 which that mortgage transaction is con8 summated; 

9 (B) any affiliate, agent, subsidiary, suc10 cessor, or assignee of an original lender under 

11 a covered loan or the holder of a covered loan 

12 at the time at which that mortgage transaction 

13 is consummated; 

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

15 (D) any subsequent purchaser, trustee, or 

16 transferee of any covered loan issued by an 

17 original lender. 

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

19 the Secretary of Housing and Urban Development. 

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

21 person or entity responsible for the servicing of a 

22 covered loan, including the person or entity who 

23 makes or holds a covered loan if that person or enti24 ty also services the covered loan. 


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

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

3 Estate Settlement Procedures Act of 1974 (12 

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

5 (b) FINDINGS AND PURPOSES.— 

6 (1) FINDINGS.—Congress finds that— 

7 (A) energy costs for homeowners are a sig8 nificant and increasing portion of their house9 hold budgets; 

10 (B) household energy use can vary sub11 stantially depending on the efficiency and char12 acteristics of the house; 

13 (C) expected energy cost savings are im14 portant to the value of the house; 

15 (D) the current test for loan affordability 

16 used by most covered agencies, commonly 

17 known as the ‘‘debt-to-income’’ test, is inad18 equate because it does not take into account the 

19 expected energy cost savings for the homeowner 

20 of an energy efficient home; and 

21 (E) another loan limitation, commonly 

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

23 appraisal, which often does not adjust for effi24 ciency features of houses. 


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

2 are to— 

3 (A) improve the accuracy of mortgage un4 derwriting by Federal mortgage agencies by en5 suring that energy cost savings are included in 

6 the underwriting process as described below, 

7 and thus to reduce the amount of energy con8 sumed by homes and to facilitate the creation 

9 of energy efficiency retrofit and construction 

10 jobs; 

11 (B) require a covered agency to include the 

12 expected energy cost savings of a homeowner as 

13 a regular expense in the tests, such as the debt14 to-income test, used to determine the ability of 

15 the loan applicant to afford the cost of home16 ownership for all loan programs; and 

17 (C) require a covered agency to include the 

18 value home buyers place on the energy effi19 ciency of a house in tests used to compare the 

20 mortgage amount to home value, taking pre21 cautions to avoid double-counting and to sup22 port safe and sound lending. 

23 (c) ENHANCED ENERGY EFFICIENCY UNDER24 WRITING CRITERIA.— 


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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, in consultation with the advisory group estab4 lished in subsection (f)(2), develop and issue guide5 lines for a covered agency to implement enhanced 

6 loan eligibility requirements, for use when testing 

7 the ability of a loan applicant to repay a covered 

8 loan, that account for the expected energy cost sav9 ings for a loan applicant at a subject property, in 

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

11 (2) REQUIREMENTS TO ACCOUNT FOR ENERGY

12 COST SAVINGS.—The enhanced loan eligibility re13 quirements under paragraph (1) shall require that, 

14 for all covered loans for which an energy efficiency 

15 report is voluntarily provided to the mortgagee by 

16 the mortgagor, the covered agency and the mort17 gagee shall take into consideration the estimated en18 ergy cost savings expected for the owner of the sub19 ject property in determining whether the loan appli20 cant has sufficient income to service the mortgage 

21 debt plus other regular expenses. To the extent that 

22 a covered agency uses a test such as a debt-to-in23 come test that includes certain regular expenses, 

24 such as hazard insurance and property taxes, the ex25 pected energy cost savings shall be included as an 


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1 offset to these expenses. Energy costs to be assessed 

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

3 any other fuel regularly used to supply energy to the 

4 subject property. 

5 (3) DETERMINATION OF ESTIMATED ENERGY

6 COST SAVINGS.— 

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

8 issued under paragraph (1) shall include in9 structions for the covered agency to calculate 

10 estimated energy cost savings using— 

11 (i) the energy efficiency report; 

12 (ii) an estimate of baseline average 

13 energy costs; and 

14 (iii) additional sources of information 

15 as determined by the Secretary. 

16 (B) REPORT REQUIREMENTS.—For the 

17 purposes of subparagraph (A), an energy effi18 ciency report shall— 

19 (i) estimate the expected energy cost 

20 savings specific to the subject property, 

21 based on specific information about the 

22 property; 

23 (ii) be prepared in accordance with 

24 the guidelines to be issued under para25 graph (1); and 


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1 (iii) be prepared— 

2 (I) in accordance with the Resi3 dential Energy Service Network’s 

4 Home Energy Rating System (com5 monly known as ‘‘HERS’’) by an indi6 vidual certified by the Residential En7 ergy Service Network, unless the Sec8 retary finds that the use of HERS 

9 does not further the purposes of this 

10 section; or 

11 (II) by other methods approved 

12 by the Secretary, in consultation with 

13 the Secretary of Energy and the advi14 sory group established in subsection 

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

16 which shall include a third-party qual17 ity assurance procedure. 

18 (C) USE BY APPRAISER.—If an energy ef19 ficiency report is used under paragraph (2), the 

20 energy efficiency report shall be provided to the 

21 appraiser to estimate the energy efficiency of 

22 the subject property and for potential adjust23 ments for energy efficiency. 

24 (4) REQUIRED DISCLOSURE TO CONSUMER FOR

25 A HOME WITH AN ENERGY EFFICIENCY REPORT.— 


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1 If an energy efficiency report is used under para2 graph (2), the guidelines to be issued under para3 graph (1) shall require the mortgagee to— 

4 (A) inform the loan applicant of the ex5 pected energy costs as estimated in the energy 

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

7 prescribed by the Secretary, and if practicable, 

8 in the documents delivered at the time of loan 

9 application; and 

10 (B) include the energy efficiency report in 

11 the documentation for the loan provided to the 

12 borrower. 

13 (5) REQUIRED DISCLOSURE TO CONSUMER FOR

14 A HOME WITHOUT AN ENERGY EFFICIENCY RE15 PORT.—If an energy efficiency report is not used 

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

17 under paragraph (1) shall require the mortgagee to 

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

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

20 the documents delivered at the time of loan applica21 tion of— 

22 (A) typical energy cost savings that would 

23 be possible from a cost-effective energy upgrade 

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

25 subject property; 


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1 (B) the impact the typical energy cost sav2 ings would have on monthly ownership costs of 

3 a typical home; 

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

5 that could be obtained if the typical energy cost 

6 savings were reflected in an energy efficiency 

7 report; and 

8 (D) resources for improving the energy ef9 ficiency of a home. 

10 (6) PRICING OF LOANS.— 

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

12 price covered loans originated under the en13 hanced loan eligibility requirements required 

14 under this section in accordance with the esti15 mated risk of the loans. 

16 (B) IMPOSITION OF CERTAIN MATERIAL

17 COSTS, IMPEDIMENTS, OR PENALTIES.—In the 

18 absence of a publicly disclosed analysis that 

19 demonstrates significant additional default risk 

20 or prepayment risk associated with the loans, a 

21 covered agency shall not impose material costs, 

22 impediments, or penalties on covered loans 

23 merely because the loan uses an energy effi24 ciency report or the enhanced loan eligibility re25 quirements required under this section. 


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1 (7) LIMITATIONS.— 

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

3 price covered loans originated under the en4 hanced loan eligibility requirements required 

5 under this section in accordance with the esti6 mated risk of those loans. 

7 (B) PROHIBITED ACTIONS.—A covered 

8 agency shall not— 

9 (i) modify existing underwriting cri10 teria or adopt new underwriting criteria 

11 that intentionally negate or reduce the im12 pact of the requirements or resulting bene13 fits that are set forth or otherwise derived 

14 from the enhanced loan eligibility require15 ments required under this subsection; or 

16 (ii) impose greater buy back require17 ments, credit overlays, or insurance re18 quirements, including private mortgage in19 surance, on covered loans merely because 

20 the loan uses an energy efficiency report or 

21 the enhanced loan eligibility requirements 

22 required under this subsection. 

23 (8) APPLICABILITY AND IMPLEMENTATION

24 DATE.—Not later than 3 years after the date of en25 actment of this Act, and before December 31, 2016, 


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1 the enhanced loan eligibility requirements required 

2 under this subsection shall be implemented by each 

3 covered agency to— 

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

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

6 home; 

7 (B) be available on any residential real 

8 property (including individual units of con9 dominiums and cooperatives) that qualifies for 

10 a covered loan; and 

11 (C) provide prospective mortgagees with 

12 sufficient guidance and applicable tools to im13 plement the required underwriting methods. 

14 (d) ENHANCED ENERGY EFFICIENCY UNDER15 WRITING VALUATION GUIDELINES.— 

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

17 the date of enactment of this Act, the Secretary 

18 shall— 

19 (A) in consultation with the Federal Fi20 nancial Institutions Examination Council and 

21 the advisory group established in subsection 

22 (f)(2), develop and issue guidelines for a cov23 ered agency to determine the maximum per24 mitted loan amount based on the value of the 

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1 erties with an energy efficiency report that 

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

3 and 

4 (B) in consultation with the Secretary of 

5 Energy, issue guidelines for a covered agency to 

6 determine the estimated energy savings under 

7 paragraph (3) for properties with an energy ef8 ficiency report. 

9 (2) REQUIREMENTS.—The enhanced energy ef10 ficiency underwriting valuation guidelines required 

11 under paragraph (1) shall include— 

12 (A) a requirement that if an energy effi13 ciency report that meets the requirements of 

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

15 the mortgagee, such report shall be used by the 

16 mortgagee or covered agency to determine the 

17 estimated energy savings of the subject prop18 erty; and 

19 (B) a requirement that the estimated en20 ergy savings of the subject property be added to 

21 the appraised value of the subject property by 

22 a mortgagee or covered agency for the purpose 

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

24 subject property, unless the appraisal includes 

25 the value of the overall energy efficiency of the 


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1 subject property, using methods to be estab2 lished under the guidelines issued under para3 graph (1). 

4 (3) DETERMINATION OF ESTIMATED ENERGY

5 SAVINGS.— 

6 (A) AMOUNT OF ENERGY SAVINGS.—The 

7 amount of estimated energy savings shall be de8 termined by calculating the difference between 

9 the estimated energy costs for the average com10 parable houses, as determined in guidelines to 

11 be issued under paragraph (1), and the esti12 mated energy costs for the subject property 

13 based upon the energy efficiency report. 

14 (B) DURATION OF ENERGY SAVINGS.—The 

15 duration of the estimated energy savings shall 

16 be based upon the estimated life of the applica17 ble equipment, consistent with the rating sys18 tem used to produce the energy efficiency re19 port. 

20 (C) PRESENT VALUE OF ENERGY SAV21 INGS.—The present value of the future savings 

22 shall be discounted using the average interest 

23 rate on conventional 30-year mortgages, in the 

24 manner directed by guidelines issued under 

25 paragraph (1). 


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1 (4) ENSURING CONSIDERATION OF ENERGY EF2 FICIENT FEATURES.—Section 1110 of the Financial 

3 Institutions Reform, Recovery, and Enforcement Act 

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

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

6 and inserting a semicolon; and 

7 (B) in paragraph (3), by striking the pe8 riod at the end and inserting ‘‘; and’’ and in9 serting after paragraph (3) the following: 

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

11 have timely access, whenever practicable, to informa12 tion from the property owner and the lender that 

13 may be relevant in developing an opinion of value re14 garding the energy- and water-saving improvements 

15 or features of a property, such as— 

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

17 ‘‘(B) installed appliances, measures, sys18 tems or technologies; 

19 ‘‘(C) blueprints; 

20 ‘‘(D) construction costs; 

21 ‘‘(E) financial or other incentives regard22 ing energy- and water-efficient components and 

23 systems installed in a property; 

24 ‘‘(F) utility bills; 


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1 ‘‘(G) energy consumption and 

2 benchmarking data; and 

3 ‘‘(H) third-party verifications or represen4 tations of energy and water efficiency perform5 ance of a property, observing all financial pri6 vacy requirements adhered to by certified and 

7 licensed appraisers, including section 501 of the 

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

9 Unless a property owner consents to a lender, an ap10 praiser, in carrying out the requirements of para11 graph (4), shall not have access to the commercial 

12 or financial information of the owner that is privi13 leged or confidential.’’. 

14 (5) TRANSACTIONS REQUIRING STATE CER15 TIFIED APPRAISERS.—Section 1113 of the Financial 

16 Institutions Reform, Recovery, and Enforcement Act 

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

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

19 the semicolon the following: ‘‘, or any real prop20 erty on which the appraiser makes adjustments 

21 using an energy efficiency report’’; and 

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

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

24 which the appraiser makes adjustments using 

25 an energy efficiency report.’’. 


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1 (6) PROTECTIONS.— 

2 (A) AUTHORITY TO IMPOSE LIMITA3 TIONS.—The guidelines to be issued under 

4 paragraph (1) shall include such limitations and 

5 conditions as determined by the Secretary to be 

6 necessary to protect against meaningful under 

7 or over valuation of energy cost savings or du8 plicative counting of energy efficiency features 

9 or energy cost savings in the valuation of any 

10 subject property that is used to determine a 

11 loan amount. 

12 (B) ADDITIONAL AUTHORITY.—At the end 

13 of the 7-year period following the implementa14 tion of enhanced eligibility and underwriting 

15 valuation requirements under this section, the 

16 Secretary may modify or apply additional ex17 ceptions to the approach described in paragraph 

18 (2), where the Secretary finds that the 

19 unadjusted appraisal will reflect an accurate 

20 market value of the efficiency of the subject 

21 property or that a modified approach will better 

22 reflect an accurate market value. 

23 (7) APPLICABILITY AND IMPLEMENTATION

24 DATE.—Not later than 3 years after the date of en25 actment of this Act, and before December 31, 2016, 


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1 each covered agency shall implement the guidelines 

2 required under this subsection, which shall— 

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

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

5 home; and 

6 (B) be available on any residential real 

7 property, including individual units of con8 dominiums and cooperatives, that qualifies for a 

9 covered loan. 

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

11 date on which the enhanced eligibility and underwriting 

12 valuation requirements are implemented under this sec13 tion, and every year thereafter, each covered agency with 

14 relevant activity shall issue and make available to the pub15 lic a report that— 

16 (1) enumerates the number of covered loans of 

17 the agency for which there was an energy efficiency 

18 report, and that used energy efficiency appraisal 

19 guidelines and enhanced loan eligibility require20 ments; 

21 (2) includes the default rates and rates of fore22 closures for each category of loans; and 

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

24 agency has priced into covered loans for which there 

25 was an energy efficiency report. 


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1 (f) RULEMAKING.— 

2 (1) IN GENERAL.—The Secretary shall pre3 scribe regulations to carry out this section, in con4 sultation with the Secretary of Energy and the advi5 sory group established in paragraph (2), which may 

6 contain such classifications, differentiations, or other 

7 provisions, and may provide for such proper imple8 mentation and appropriate treatment of different 

9 types of transactions, as the Secretary determines 

10 are necessary or proper to effectuate the purposes of 

11 this section, to prevent circumvention or evasion 

12 thereof, or to facilitate compliance therewith. 

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

14 out this section, the Secretary shall establish an ad15 visory group, consisting of individuals representing 

16 the interests of— 

17 (A) mortgage lenders; 

18 (B) appraisers; 

19 (C) energy raters and residential energy 

20 consumption experts; 

21 (D) energy efficiency organizations; 

22 (E) real estate agents; 

23 (F) home builders and remodelers; 

24 (G) State energy officials; and 

25 (H) others as determined by the Secretary. 


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1 (g) ADDITIONAL STUDY.— 

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

3 after the date of enactment of this Act, the Sec4 retary shall reconvene the advisory group established 

5 in subsection (f)(2), in addition to water and loca6 tional efficiency experts, to advise the Secretary on 

7 the implementation of the enhanced energy efficiency 

8 underwriting criteria established in subsections (c) 

9 and (d). 

10 (2) RECOMMENDATIONS.—The advisory group 

11 established in subsection (f)(2) shall provide rec12 ommendations to the Secretary on any revisions or 

13 additions to the enhanced energy efficiency under14 writing criteria deemed necessary by the group, 

15 which may include alternate methods to better ac16 count for home energy costs and additional factors 

17 to account for substantial and regular costs of home18 ownership such as location-based transportation 

19 costs and water costs. The Secretary shall forward 

20 any legislative recommendations from the advisory 

21 group to Congress for its consideration. 


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1 Subtitle E—Third Party Testing 

2 SEC. 441. VOLUNTARY CERTIFICATION PROGRAMS FOR AIR 

3 CONDITIONING, FURNACE, BOILER, HEAT 

4 PUMP, AND WATER HEATER PRODUCTS. 

5 Section 326(b) of the Energy Policy and Conserva6 tion Act (42 U.S.C. 6296(b)) is amended by adding at 

7 the end the following: 

8 ‘‘(6) VOLUNTARY CERTIFICATION PROGRAMS

9 FOR AIR CONDITIONING, FURNACE, BOILER, HEAT

10 PUMP, AND WATER HEATER PRODUCTS.— 

11 ‘‘(A) DEFINITION OF BASIC MODEL

12 GROUP.—In this paragraph, the term ‘basic 

13 model group’ means a set of models— 

14 ‘‘(i) that share characteristics that 

15 allow the performance of 1 model to be 

16 generally representative of the performance 

17 of other models within the group; and 

18 ‘‘(ii) in which the group of products 

19 does not necessarily have to share discrete 

20 performance. 

21 ‘‘(B) RELIANCE ON VOLUNTARY CERTIFI22 CATION PROGRAMS.—For the purpose of testing 

23 to verify the performance rating of, or receiving 

24 test reports from manufacturers certifying com25 pliance with energy conservation standards and 


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1 Energy Star specifications established under 

2 sections 324A, 325, and 342, the covered prod3 ucts described in paragraphs (3), (4), (5), (9), 

4 and (11) of section 322(a) and covered equip5 ment described in subparagraphs (B), (C), (D), 

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

7 Secretary and Administrator shall rely on vol8 untary certification programs that— 

9 ‘‘(i) are nationally recognized; 

10 ‘‘(ii) maintain a publicly available list 

11 of all certified products and equipment; 

12 ‘‘(iii) as determined by the Secretary, 

13 annually test not less than 10 percent and 

14 not more than 30 percent of the basic 

15 model group of a program participant 

16 ‘‘(iv) require the changing of the per17 formance rating or removal of the product 

18 or equipment from the program, if 

19 verification testing determines that the 

20 performance rating does not meet the lev21 els the manufacturer has certified to the 

22 Secretary; 

23 ‘‘(v) require the qualification of new 

24 participants in the program through test25 ing and production of test reports; 


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1 ‘‘(vi) allow for challenge testing of 

2 products and equipment within the scope 

3 of the program; 

4 ‘‘(vii) require program participants to 

5 certify the performance rating of all cov6 ered products and equipment within the 

7 scope of the program; 

8 ‘‘(viii) are conducted by a certification 

9 body that is accredited under International 

10 Organization for Standardization/ Inter11 national Electrotechnical Commission 

12 (ISO/IEC) Standard 17065; 

13 ‘‘(ix) provide to the Secretary— 

14 ‘‘(I) an annual report of all test 

15 results; 

16 ‘‘(II) prompt notification when 

17 program testing results in— 

18 ‘‘(aa) the rerating of the 

19 performance rating of a product 

20 or equipment; or 

21 ‘‘(bb) the delisting of a 

22 product or equipment; and 

23 ‘‘(III) test reports, on the request 

24 of the Secretary or the Administrator, 

25 for Energy Star compliant products, 


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1 which shall be treated as confidential 

2 business information as provided for 

3 under section 552(b)(4) of title 5, 

4 United States Code (commonly known 

5 as the ‘‘Freedom of Information 

6 Act’’); 

7 ‘‘(x) use verification testing that— 

8 ‘‘(I) is conducted by an inde9 pendent test laboratory that is accred10 ited under International Organization 

11 for Standardization/International 

12 Electrotechnical Commission (ISO/ 

13 IEC) Standard 17025 with a scope 

14 covering the tested products or equip15 ment; 

16 ‘‘(II) follows the test procedures 

17 established under this title; and 

18 ‘‘(III) notes in each test report 

19 any instructions specified by the man20 ufacturer or the representative of the 

21 manufacturer for the purpose of con22 ducting the verification testing; and 

23 ‘‘(xi) satisfy such other requirements 

24 as the Secretary has determined— 


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1 ‘‘(I) are essential to ensure 

2 standards compliance; or 

3 ‘‘(II) have consensus support 

4 achieved through a negotiated rule5 making process. 

6 ‘‘(C) ADMINISTRATION.— 

7 ‘‘(i) IN GENERAL.—The Secretary 

8 shall not require— 

9 ‘‘(I) manufacturers to participate 

10 in a voluntary certification program 

11 described in subparagraph (B); or 

12 ‘‘(II) participating manufacturers 

13 to provide information that can be ob14 tained through a voluntary certifi15 cation program described in subpara16 graph (B). 

17 ‘‘(ii) LIST OF COVERED PRODUCTS.— 

18 The Secretary or the Administrator may 

19 maintain a publicly available list of covered 

20 products and equipment certified under a 

21 program described in subparagraph (B) 

22 that distinguishes between— 

23 ‘‘(I) covered products and equip24 ment verified by the program; and 


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1 ‘‘(II) products not verified by the 

2 program. 

3 ‘‘(iii) REDUCTION OF REQUIRE4 MENTS.—Any rules promulgated by the 

5 Secretary that require testing of products 

6 or equipment for certification of perform7 ance ratings shall on average reduce re8 quirements and burdens for manufacturers 

9 participating in a voluntary certification 

10 program described in subparagraph (B) for 

11 the products or equipment relative to other 

12 manufacturers. 

13 ‘‘(iv) PERIODIC TESTING BY PROGRAM

14 NONPARTICIPANTS.—In addition to certifi15 cation requirements, the Secretary shall re16 quire a manufacturer that does not partici17 pate in a voluntary certification program 

18 described in subparagraph (B)— 

19 ‘‘(I) to verify the accuracy of the 

20 performance rating of the product or 

21 equipment through periodic testing 

22 using the testing methods described in 

23 clause (iii) or (x) of subparagraph 

24 (B); and 


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1 ‘‘(II) to provide to the Secretary 

2 test results and, on request, test re3 ports verifying the certified perform4 ance for each basic model group of 

5 the manufacturer. 

6 ‘‘(v) RESTRICTIONS ON TEST LABORA7 TORIES.— 

8 ‘‘(I) IN GENERAL.—Subject to 

9 subclause (II), with respect to covered 

10 products and equipment, a voluntary 

11 certification program described in 

12 subparagraph (B) shall not be a test 

13 laboratory that conducts the testing 

14 on products or equipment within the 

15 scope of the program. 

16 ‘‘(II) LIMITATION.—Subclause 

17 (I) shall not apply to Energy Star 

18 specifications established under sec19 tion 324A. 

20 ‘‘(vi) EFFECT ON OTHER AUTHOR21 ITY.—Nothing in this paragraph limits the 

22 authority of the Secretary or the Adminis23 trator to test products or equipment or to 

24 enforce compliance with any law (including 

25 regulations).’’. 


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1 TITLE V—MISCELLANEOUS 

2 SEC. 501. OFFSET. 

3 Section 422(f) of the Energy Independence and Secu4 rity Act of 2007 (42 U.S.C. 17082(f)) is amended— 

5 (1) in paragraph (3), by striking ‘‘and’’ after 

6 the semicolon at the end; and 

7 (2) by striking paragraph (4) and inserting the 

8 following: 

9 ‘‘(4) $200,000,000 for fiscal year 2013; and 

10 ‘‘(5) $144,000,000 for each of fiscal years 2014 

11 through 2018.’’. 

12 SEC. 502. BUDGETARY EFFECTS. 

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

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

15 shall be determined by reference to the latest statement 

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

17 Act, submitted for printing in the Congressional Record 

18 by the Chairman of the Senate Budget Committee, pro19 vided that such statement has been submitted prior to the 

20 vote on passage. 

21 SEC. 503. ADVANCE APPROPRIATIONS REQUIRED. 

22 The authorization of amounts under this Act and the 

23 amendments made by this Act shall be effective for any 

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

25 in advance in appropriations Acts. 


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Calendar No. 368 

113TH CONGRESS 

2D SESSION S. 2262 

A BILL 

To promote energy savings in residential buildings 

and industry, and for other purposes. 

APRIL 29, 2014 

Read the second time and placed on the calendar 


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