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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 535 Referred in House (RFH)]

114th CONGRESS
  1st Session
                                 S. 535

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 13, 2015

            Referred to the Committee on Energy and Commerce

_______________________________________________________________________

                                 AN ACT

 
                     To promote energy efficiency.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Energy Efficiency 
Improvement Act of 2015''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                       TITLE I--BETTER BUILDINGS

Sec. 101. Short title.
Sec. 102. Energy efficiency in Federal and other buildings.
Sec. 103. Separate spaces with high-performance energy efficiency 
                            measures.
Sec. 104. Tenant Star program.
                  TITLE II--GRID-ENABLED WATER HEATERS

Sec. 201. Grid-enabled water heaters.
         TITLE III--ENERGY INFORMATION FOR COMMERCIAL BUILDINGS

Sec. 301. Energy information for commercial buildings.

                       TITLE I--BETTER BUILDINGS

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Better Buildings Act of 2015''.

SEC. 102. ENERGY EFFICIENCY IN FEDERAL AND OTHER BUILDINGS.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of General Services.
            (2) Cost-effective energy efficiency measure.--The term 
        ``cost-effective energy efficiency measure'' means any building 
        product, material, equipment, or service, and the installing, 
        implementing, or operating thereof, that provides energy 
        savings in an amount that is not less than the cost of such 
        installing, implementing, or operating.
            (3) Cost-effective water efficiency measure.--The term 
        ``cost-effective water efficiency measure'' means any building 
        product, material, equipment, or service, and the installing, 
        implementing, or operating thereof, that provides water savings 
        in an amount that is not less than the cost of such installing, 
        implementing, or operating.
    (b) Model Provisions, Policies, and Best Practices.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Administrator, in consultation with 
        the Secretary of Energy and after providing the public with an 
        opportunity for notice and comment, shall develop model 
        commercial leasing provisions and best practices in accordance 
        with this subsection.
            (2) Commercial leasing.--
                    (A) In general.--The model commercial leasing 
                provisions developed under this subsection shall, at a 
                minimum, align the interests of building owners and 
                tenants with regard to investments in cost-effective 
                energy efficiency measures and cost-effective water 
                efficiency measures to encourage building owners and 
                tenants to collaborate to invest in such measures.
                    (B) Use of model provisions.--The Administrator may 
                use the model commercial leasing provisions developed 
                under this subsection in any standard leasing document 
                that designates a Federal agency (or other client of 
                the Administrator) as a landlord or tenant.
                    (C) Publication.--The Administrator shall 
                periodically publish the model commercial leasing 
                provisions developed under this subsection, along with 
                explanatory materials, to encourage building owners and 
                tenants in the private sector to use such provisions 
                and materials.
            (3) Realty services.--The Administrator shall develop 
        policies and practices to implement cost-effective energy 
        efficiency measures and cost-effective water efficiency 
        measures for the realty services provided by the Administrator 
        to Federal agencies (or other clients of the Administrator), 
        including periodic training of appropriate Federal employees 
        and contractors on how to identify and evaluate those measures.
            (4) State and local assistance.--The Administrator, in 
        consultation with the Secretary of Energy, shall make available 
        model commercial leasing provisions and best practices 
        developed under this subsection to State, county, and municipal 
        governments for use in managing owned and leased building space 
        in accordance with the goal of encouraging investment in all 
        cost-effective energy efficiency measures and cost-effective 
        water efficiency measures.

SEC. 103. SEPARATE SPACES WITH HIGH-PERFORMANCE ENERGY EFFICIENCY 
              MEASURES.

    (a) In General.--Subtitle B of title IV of the Energy Independence 
and Security Act of 2007 (42 U.S.C. 17081 et seq.) is amended by adding 
at the end the following:

``SEC. 424. SEPARATE SPACES WITH HIGH-PERFORMANCE ENERGY EFFICIENCY 
              MEASURES.

    ``(a) Definitions.--In this section:
            ``(1) High-performance energy efficiency measure.--The term 
        `high-performance energy efficiency measure' means a 
        technology, product, or practice that will result in 
        substantial operational cost savings by reducing energy 
        consumption and utility costs.
            ``(2) Separate spaces.--The term `separate spaces' means 
        areas within a commercial building that are leased or otherwise 
        occupied by a tenant or other occupant for a period of time 
        pursuant to the terms of a written agreement.
    ``(b) Study.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section, the Secretary, acting through the 
        Assistant Secretary of Energy Efficiency and Renewable Energy, 
        shall complete a study on the feasibility of--
                    ``(A) significantly improving energy efficiency in 
                commercial buildings through the design and 
                construction, by owners and tenants, of separate spaces 
                with high-performance energy efficiency measures; and
                    ``(B) encouraging owners and tenants to implement 
                high-performance energy efficiency measures in separate 
                spaces.
            ``(2) Scope.--The study shall, at a minimum, include--
                    ``(A) descriptions of--
                            ``(i) high-performance energy efficiency 
                        measures that should be considered as part of 
                        the initial design and construction of separate 
                        spaces;
                            ``(ii) processes that owners, tenants, 
                        architects, and engineers may replicate when 
                        designing and constructing separate spaces with 
                        high-performance energy efficiency measures;
                            ``(iii) policies and best practices to 
                        achieve reductions in energy intensities for 
                        lighting, plug loads, heating, cooling, 
                        cooking, laundry, and other systems to satisfy 
                        the needs of the commercial building tenant;
                            ``(iv) return on investment and payback 
                        analyses of the incremental cost and projected 
                        energy savings of the proposed set of high-
                        performance energy efficiency measures, 
                        including consideration of available 
                        incentives;
                            ``(v) models and simulation methods that 
                        predict the quantity of energy used by separate 
                        spaces with high-performance energy efficiency 
                        measures and that compare that predicted 
                        quantity to the quantity of energy used by 
                        separate spaces without high-performance energy 
                        efficiency measures but that otherwise comply 
                        with applicable building code requirements;
                            ``(vi) measurement and verification 
                        platforms demonstrating actual energy use of 
                        high-performance energy efficiency measures 
                        installed in separate spaces, and whether such 
                        measures generate the savings intended in the 
                        initial design and construction of the separate 
                        spaces;
                            ``(vii) best practices that encourage an 
                        integrated approach to designing and 
                        constructing separate spaces to perform at 
                        optimum energy efficiency in conjunction with 
                        the central systems of a commercial building; 
                        and
                            ``(viii) any impact on employment resulting 
                        from the design and construction of separate 
                        spaces with high-performance energy efficiency 
                        measures; and
                    ``(B) case studies reporting economic and energy 
                savings returns in the design and construction of 
                separate spaces with high-performance energy efficiency 
                measures.
            ``(3) Public participation.--Not later than 90 days after 
        the date of the enactment of this section, the Secretary shall 
        publish a notice in the Federal Register requesting public 
        comments regarding effective methods, measures, and practices 
        for the design and construction of separate spaces with high-
        performance energy efficiency measures.
            ``(4) Publication.--The Secretary shall publish the study 
        on the website of the Department of Energy.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
the Energy Independence and Security Act of 2007 is amended by 
inserting after the item relating to section 423 the following new 
item:

``Sec. 424. Separate spaces with high-performance energy efficiency 
                            measures.''.

SEC. 104. TENANT STAR PROGRAM.

    (a) In General.--Subtitle B of title IV of the Energy Independence 
and Security Act of 2007 (42 U.S.C. 17081 et seq.) (as amended by 
section 103) is amended by adding at the end the following:

``SEC. 425. TENANT STAR PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) High-performance energy efficiency measure.--The term 
        `high-performance energy efficiency measure' has the meaning 
        given the term in section 424.
            ``(2) Separate spaces.--The term `separate spaces' has the 
        meaning given the term in section 424.
    ``(b) Tenant Star.--The Administrator of the Environmental 
Protection Agency, in consultation with the Secretary of Energy, shall 
develop a voluntary program within the Energy Star program established 
by section 324A of the Energy Policy and Conservation Act (42 U.S.C. 
6294a), which may be known as `Tenant Star', to promote energy 
efficiency in separate spaces leased by tenants or otherwise occupied 
within commercial buildings.
    ``(c) Expanding Survey Data.--The Secretary of Energy, acting 
through the Administrator of the Energy Information Administration, 
shall--
            ``(1) collect, through each Commercial Buildings Energy 
        Consumption Survey of the Energy Information Administration 
        that is conducted after the date of enactment of this section, 
        data on--
                    ``(A) categories of building occupancy that are 
                known to consume significant quantities of energy, such 
                as occupancy by data centers, trading floors, and 
                restaurants; and
                    ``(B) other aspects of the property, building 
                operation, or building occupancy determined by the 
                Administrator of the Energy Information Administration, 
                in consultation with the Administrator of the 
                Environmental Protection Agency, to be relevant in 
                lowering energy consumption;
            ``(2) with respect to the first Commercial Buildings Energy 
        Consumption Survey conducted after the date of enactment of 
        this section, to the extent full compliance with the 
        requirements of paragraph (1) is not feasible, conduct 
        activities to develop the capability to collect such data and 
        begin to collect such data; and
            ``(3) make data collected under paragraphs (1) and (2) 
        available to the public in aggregated form and provide such 
        data, and any associated results, to the Administrator of the 
        Environmental Protection Agency for use in accordance with 
        subsection (d).
    ``(d)  Recognition of Owners and Tenants.--
            ``(1) Occupancy-based recognition.--Not later than 1 year 
        after the date on which sufficient data is received pursuant to 
        subsection (c), the Administrator of the Environmental 
        Protection Agency shall, following an opportunity for public 
        notice and comment--
                    ``(A) in a manner similar to the Energy Star rating 
                system for commercial buildings, develop policies and 
                procedures to recognize tenants in commercial buildings 
                that voluntarily achieve high levels of energy 
                efficiency in separate spaces;
                    ``(B) establish building occupancy categories 
                eligible for Tenant Star recognition based on the data 
                collected under subsection (c) and any other 
                appropriate data sources; and
                    ``(C) consider other forms of recognition for 
                commercial building tenants or other occupants that 
                lower energy consumption in separate spaces.
            ``(2) Design- and construction-based recognition.--After 
        the study required by section 424(b) is completed, the 
        Administrator of the Environmental Protection Agency, in 
        consultation with the Secretary and following an opportunity 
        for public notice and comment, may develop a voluntary program 
        to recognize commercial building owners and tenants that use 
        high-performance energy efficiency measures in the design and 
        construction of separate spaces.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
the Energy Independence and Security Act of 2007 is amended by 
inserting after the item relating to section 424 (as added by section 
103(b)) the following new item:

``Sec. 425. Tenant Star program.''.

                  TITLE II--GRID-ENABLED WATER HEATERS

SEC. 201. GRID-ENABLED WATER HEATERS.

    Part B of title III of the Energy Policy and Conservation Act is 
amended--
            (1) in section 325(e) (42 U.S.C. 6295(e)), by adding at the 
        end the following:
            ``(6) Additional standards for grid-enabled water 
        heaters.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Activation lock.--The term 
                        `activation lock' means a control mechanism 
                        (either a physical device directly on the water 
                        heater or a control system integrated into the 
                        water heater) that is locked by default and 
                        contains a physical, software, or digital 
                        communication that must be activated with an 
                        activation key to enable the product to operate 
                        at its designed specifications and capabilities 
                        and without which activation the product will 
                        provide not greater than 50 percent of the 
                        rated first hour delivery of hot water 
                        certified by the manufacturer.
                            ``(ii) Grid-enabled water heater.--The term 
                        `grid-enabled water heater' means an electric 
                        resistance water heater that--
                                    ``(I) has a rated storage tank 
                                volume of more than 75 gallons;
                                    ``(II) is manufactured on or after 
                                April 16, 2015;
                                    ``(III) has--
                                            ``(aa) an energy factor of 
                                        not less than 1.061 minus the 
                                        product obtained by 
                                        multiplying--

                                                    ``(AA) the rated 
                                                storage volume of the 
                                                tank, expressed in 
                                                gallons; and

                                                    ``(BB) 0.00168; or

                                            ``(bb) an equivalent 
                                        alternative standard prescribed 
                                        by the Secretary and developed 
                                        pursuant to paragraph (5)(E);
                                    ``(IV) is equipped at the point of 
                                manufacture with an activation lock; 
                                and
                                    ``(V) bears a permanent label 
                                applied by the manufacturer that--
                                            ``(aa) is made of material 
                                        not adversely affected by 
                                        water;
                                            ``(bb) is attached by means 
                                        of non-water-soluble adhesive; 
                                        and
                                            ``(cc) advises purchasers 
                                        and end-users of the intended 
                                        and appropriate use of the 
                                        product with the following 
                                        notice printed in 16.5 point 
                                        Arial Narrow Bold font:
```IMPORTANT INFORMATION: This water heater is intended only for use as 
part of an electric thermal storage or demand response program. It will 
not provide adequate hot water unless enrolled in such a program and 
activated by your utility company or another program operator. Confirm 
the availability of a program in your local area before purchasing or 
installing this product.'.
                    ``(B) Requirement.--The manufacturer or private 
                labeler shall provide the activation key for a grid-
                enabled water heater only to a utility or other company 
                that operates an electric thermal storage or demand 
                response program that uses such a grid-enabled water 
                heater.
                    ``(C) Reports.--
                            ``(i) Manufacturers.--The Secretary shall 
                        require each manufacturer of grid-enabled water 
                        heaters to report to the Secretary annually the 
                        quantity of grid-enabled water heaters that the 
                        manufacturer ships each year.
                            ``(ii) Operators.--The Secretary shall 
                        require utilities and other demand response and 
                        thermal storage program operators to report 
                        annually the quantity of grid-enabled water 
                        heaters activated for their programs using 
                        forms of the Energy Information Agency or using 
                        such other mechanism that the Secretary 
                        determines appropriate after an opportunity for 
                        notice and comment.
                            ``(iii) Confidentiality requirements.--The 
                        Secretary shall treat shipment data reported by 
                        manufacturers as confidential business 
                        information.
                    ``(D) Publication of information.--
                            ``(i) In general.--In 2017 and 2019, the 
                        Secretary shall publish an analysis of the data 
                        collected under subparagraph (C) to assess the 
                        extent to which shipped products are put into 
                        use in demand response and thermal storage 
                        programs.
                            ``(ii) Prevention of product diversion.--If 
                        the Secretary determines that sales of grid-
                        enabled water heaters exceed by 15 percent or 
                        greater the quantity of such products activated 
                        for use in demand response and thermal storage 
                        programs annually, the Secretary shall, after 
                        opportunity for notice and comment, establish 
                        procedures to prevent product diversion for 
                        non-program purposes.
                    ``(E) Compliance.--
                            ``(i) In general.--Subparagraphs (A) 
                        through (D) shall remain in effect until the 
                        Secretary determines under this section that--
                                    ``(I) grid-enabled water heaters do 
                                not require a separate efficiency 
                                requirement; or
                                    ``(II) sales of grid-enabled water 
                                heaters exceed by 15 percent or greater 
                                the quantity of such products activated 
                                for use in demand response and thermal 
                                storage programs annually and 
                                procedures to prevent product diversion 
                                for non-program purposes would not be 
                                adequate to prevent such product 
                                diversion.
                            ``(ii) Effective date.--If the Secretary 
                        exercises the authority described in clause (i) 
                        or amends the efficiency requirement for grid-
                        enabled water heaters, that action will take 
                        effect on the date described in subsection 
                        (m)(4)(A)(ii).
                            ``(iii) Consideration.--In carrying out 
                        this section with respect to electric water 
                        heaters, the Secretary shall consider the 
                        impact on thermal storage and demand response 
                        programs, including any impact on energy 
                        savings, electric bills, peak load reduction, 
                        electric reliability, integration of renewable 
                        resources, and the environment.
                            ``(iv) Requirements.--In carrying out this 
                        paragraph, the Secretary shall require that 
                        grid-enabled water heaters be equipped with 
                        communication capability to enable the grid-
                        enabled water heaters to participate in 
                        ancillary services programs if the Secretary 
                        determines that the technology is available, 
                        practical, and cost-effective.'';
            (2) in section 332(a) (42 U.S.C. 6302(a))--
                    (A) in paragraph (5), by striking ``or'' at the 
                end;
                    (B) in the first paragraph (6), by striking the 
                period at the end and inserting a semicolon;
                    (C) by redesignating the second paragraph (6) as 
                paragraph (7);
                    (D) in subparagraph (B) of paragraph (7) (as so 
                redesignated), by striking the period at the end and 
                inserting ``; or''; and
                    (E) by adding at the end the following:
            ``(8) for any person--
                    ``(A) to activate an activation lock for a grid-
                enabled water heater with knowledge that such water 
                heater is not used as part of an electric thermal 
                storage or demand response program;
                    ``(B) to distribute an activation key for a grid-
                enabled water heater with knowledge that such 
                activation key will be used to activate a grid-enabled 
                water heater that is not used as part of an electric 
                thermal storage or demand response program;
                    ``(C) to otherwise enable a grid-enabled water 
                heater to operate at its designed specification and 
                capabilities with knowledge that such water heater is 
                not used as part of an electric thermal storage or 
                demand response program; or
                    ``(D) to knowingly remove or render illegible the 
                label of a grid-enabled water heater described in 
                section 325(e)(6)(A)(ii)(V).'';
            (3) in section 333(a) (42 U.S.C. 6303(a))--
                    (A) by striking ``section 332(a)(5)'' and inserting 
                ``paragraph (5), (6), (7), or (8) of section 332(a)''; 
                and
                    (B) by striking ``paragraph (1), (2), or (5) of 
                section 332(a)'' and inserting ``paragraph (1), (2), 
                (5), (6), (7), or (8) of section 332(a)''; and
            (4) in section 334 (42 U.S.C. 6304)--
                    (A) by striking ``section 332(a)(5)'' and inserting 
                ``paragraph (5), (6), (7), or (8) of section 332(a)''; 
                and
                    (B) by striking ``section 332(a)(6)'' and inserting 
                ``section 332(a)(7)''.

         TITLE III--ENERGY INFORMATION FOR COMMERCIAL BUILDINGS

SEC. 301. ENERGY INFORMATION FOR COMMERCIAL BUILDINGS.

    (a) Requirement of Benchmarking and Disclosure for Leasing 
Buildings Without Energy Star Labels.--Section 435(b)(2) of the Energy 
Independence and Security Act of 2007 (42 U.S.C. 17091(b)(2)) is 
amended--
            (1) by striking ``paragraph (2)'' and inserting ``paragraph 
        (1)''; and
            (2) by striking ``signing the contract,'' and all that 
        follows through the period at the end and inserting the 
        following:
        ``signing the contract, the following requirements are met:
                    ``(A) The space is renovated for all energy 
                efficiency and conservation improvements that would be 
                cost effective over the life of the lease, including 
                improvements in lighting, windows, and heating, 
                ventilation, and air conditioning systems.
                    ``(B)(i) Subject to clause (ii), the space is 
                benchmarked under a nationally recognized, online, free 
                benchmarking program, with public disclosure, unless 
                the space is a space for which owners cannot access 
                whole building utility consumption data, including 
                spaces--
                            ``(I) that are located in States with 
                        privacy laws that provide that utilities shall 
                        not provide such aggregated information to 
                        multitenant building owners; and
                            ``(II) for which tenants do not provide 
                        energy consumption information to the 
                        commercial building owner in response to a 
                        request from the building owner.
                    ``(ii) A Federal agency that is a tenant of the 
                space shall provide to the building owner, or authorize 
                the owner to obtain from the utility, the energy 
                consumption information of the space for the 
                benchmarking and disclosure required by this 
                subparagraph.''.
    (b) Study.--
            (1) In general.--Not later than 2 years after the date of 
        enactment of this Act, the Secretary of Energy, in 
        collaboration with the Administrator of the Environmental 
        Protection Agency, shall complete a study--
                    (A) on the impact of--
                            (i) State and local performance 
                        benchmarking and disclosure policies, and any 
                        associated building efficiency policies, for 
                        commercial and multifamily buildings; and
                            (ii) programs and systems in which 
                        utilities provide aggregated information 
                        regarding whole building energy consumption and 
                        usage information to owners of multitenant 
                        commercial, residential, and mixed-use 
                        buildings;
                    (B) that identifies best practice policy approaches 
                studied under subparagraph (A) that have resulted in 
                the greatest improvements in building energy 
                efficiency; and
                    (C) that considers--
                            (i) compliance rates and the benefits and 
                        costs of the policies and programs on building 
                        owners, utilities, tenants, and other parties;
                            (ii) utility practices, programs, and 
                        systems that provide aggregated energy 
                        consumption information to multitenant building 
                        owners, and the impact of public utility 
                        commissions and State privacy laws on those 
                        practices, programs, and systems;
                            (iii) exceptions to compliance in existing 
                        laws where building owners are not able to 
                        gather or access whole building energy 
                        information from tenants or utilities;
                            (iv) the treatment of buildings with--
                                    (I) multiple uses;
                                    (II) uses for which baseline 
                                information is not available; and
                                    (III) uses that require high levels 
                                of energy intensities, such as data 
                                centers, trading floors, and 
                                televisions studios;
                            (v) implementation practices, including 
                        disclosure methods and phase-in of compliance;
                            (vi) the safety and security of 
                        benchmarking tools offered by government 
                        agencies, and the resiliency of those tools 
                        against cyber attacks; and
                            (vii) international experiences with regard 
                        to building benchmarking and disclosure laws 
                        and data aggregation for multitenant buildings.
            (2) Submission to congress.--At the conclusion of the 
        study, the Secretary shall submit to the Committee on Energy 
        and Commerce of the House of Representatives and Committee on 
        Energy and Natural Resources of the Senate a report on the 
        results of the study.
    (c) Creation and Maintenance of Database.--
            (1) In general.--Not later than 18 months after the date of 
        enactment of this Act and following opportunity for public 
        notice and comment, the Secretary of Energy, in coordination 
        with other relevant agencies, shall maintain, and if necessary 
        create, a database for the purpose of storing and making 
        available public energy-related information on commercial and 
        multifamily buildings, including--
                    (A) data provided under Federal, State, local, and 
                other laws or programs regarding building benchmarking 
                and energy information disclosure;
                    (B) information on buildings that have disclosed 
                energy ratings and certifications; and
                    (C) energy-related information on buildings 
                provided voluntarily by the owners of the buildings, 
                only in an anonymous form unless the owner provides 
                otherwise.
            (2) Complementary programs.--The database maintained 
        pursuant to paragraph (1) shall complement and not duplicate 
        the functions of the Environmental Protection Agency's Energy 
        Star Portfolio Manager tool.
    (d) Input From Stakeholders.--The Secretary of Energy shall seek 
input from stakeholders to maximize the effectiveness of the actions 
taken under this section.
    (e) Report.--Not later than 2 years after the date of enactment of 
this Act, and every 2 years thereafter, the Secretary of Energy shall 
submit to the Committee on Energy and Commerce of the House of 
Representatives and Committee on Energy and Natural Resources of the 
Senate a report on the progress made in complying with this section.

            Passed the Senate March 26 (legislative day, March 27), 
      2015.

            Attest:

                                                JULIE E. ADAMS,

                                                             Secretary.
```