II 

Calendar No. 210 

114TH CONGRESS 

1ST SESSION S. 720 

[Report No. 114–130] 

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

other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 11, 2015 

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

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

MANCHIN, Ms. MURKOWSKI, Mr. WARNER, Mr. WICKER, and Mr. HELLER) introduced the following bill; which was read twice and referred to 

the Committee on Energy and Natural Resources 

SEPTEMBER 9, 2015 

Reported by Ms. MURKOWSKI, with amendments 

[Omit the part struck through and insert the part printed in italic] 

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, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘Energy Savings and Industrial Competitiveness Act of 

4 2015’’. 

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

6 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—Extended Product System Rebate Program 

Sec. 221. Extended product system rebate program. 

Subtitle D—Transformer Rebate Program 


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Sec. 231. Energy efficient transformer rebate program. 

TITLE III—FEDERAL AGENCY ENERGY EFFICIENCY 

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

Sec. 302. Availability of funds for design updates. 

Sec. 303. Energy efficient data centers. 

Sec. 304. Budget-neutral demonstration program for energy and water conservation improvements at multifamily residential units. 

TITLE IV—REGULATORY PROVISIONS 

Subtitle A—Third-Party Certification Under Energy Star Program 

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 DC—Energy Performance Requirement for Federal Buildings 

Sec. 431421. Energy performance requirement for Federal buildings. 

Sec. 432422. Federal building energy efficiency performance standards; certification system and level for green buildings. 

Sec. 433423. Enhanced energy efficiency underwriting. 

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

Boiler, Heat Pump, and Water Heater Products 

Sec. 441431. Voluntary verification programs for air conditioning, furnace, boiler, heat pump, and water heater products. 

TITLE V—MISCELLANEOUS 

Sec. 501. Budgetary effects. 

Sec. 502. Advance appropriations required. 

1 SEC. 2. DEFINITION OF SECRETARY. 

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


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1 TITLE I—BUILDINGS 

2 Subtitle A—Building Energy Codes 

3 SEC. 101. GREATER ENERGY EFFICIENCY IN BUILDING 

4 CODES. 

5 (a) DEFINITIONS.—Section 303 of the Energy Con6 servation and Production Act (42 U.S.C. 6832) is amend7 ed— 

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

9 the following: 

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

11 term ‘model building energy code’ means a voluntary 

12 building energy code and standards developed and 

13 updated through a consensus process among inter14 ested persons, such as the IECC or the code used 

15 by— 

16 ‘‘(A) the Council of American Building Of17 ficials, or its legal successor, International Code 

18 Council, Inc.; 

19 ‘‘(B) the American Society of Heating, Re20 frigerating, and Air-Conditioning Engineers; or 

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

22 and 

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

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

25 International Energy Conservation Code. 


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

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

3 Native American Housing Assistance and Self-De4 termination Act of 1996 (25 U.S.C. 4103).’’. 

5 (b) STATE BUILDING ENERGY EFFICIENCY

6 CODES.—Section 304 of the Energy Conservation and 

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

8 follows: 

9 ‘‘SEC. 304. UPDATING STATE BUILDING ENERGY EFFI10 CIENCY CODES. 

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

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

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

14 as appropriate, by local governments that meet or 

15 exceed the model building energy codes, or achieve 

16 equivalent or greater energy savings; and 

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

18 local codes. 

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

20 BUILDING ENERGY CODE UPDATES.— 

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

22 EACH STATE AND INDIAN TRIBE.— 

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

24 after the date on which a model building energy 

25 code is updated, each State or Indian tribe shall 


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1 certify whether or not the State or Indian tribe, 

2 respectively, has reviewed and updated the en3 ergy provisions of the building code of the State 

4 or Indian tribe, respectively. 

5 ‘‘(B) DEMONSTRATION.—The certification 

6 shall include a demonstration of whether or not 

7 the energy savings for the code provisions that 

8 are in effect throughout the State or Indian 

9 tribal territory meet or exceed— 

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

11 model building energy code; or 

12 ‘‘(ii) the targets established under sec13 tion 307(b)(2). 

14 ‘‘(C) NO MODEL BUILDING ENERGY CODE

15 UPDATE.—If a model building energy code is 

16 not updated by a target date established under 

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

18 shall, not later than 2 years after the specified 

19 date, certify whether or not the State or Indian 

20 tribe, respectively, has reviewed and updated 

21 the energy provisions of the building code of the 

22 State or Indian tribe, respectively, to meet or 

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


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

2 than 90 days after a State or Indian tribe certifi3 cation under paragraph (1), the Secretary shall— 

4 ‘‘(A) determine whether the code provi5 sions of the State or Indian tribe, respectively, 

6 meet the criteria specified in paragraph (1); 

7 and 

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

10 ‘‘(c) IMPROVEMENTS IN COMPLIANCE WITH BUILD11 ING ENERGY CODES.— 

12 ‘‘(1) REQUIREMENT.— 

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

14 after the date of a certification under sub15 section (b), each State and Indian tribe shall 

16 certify whether or not the State and Indian 

17 tribe, respectively, has— 

18 ‘‘(i) achieved full compliance under 

19 paragraph (3) with the applicable certified 

20 State and Indian tribe building energy 

21 code or with the associated model building 

22 energy code; or 

23 ‘‘(ii) made significant progress under 

24 paragraph (4) toward achieving compliance 

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1 dian tribe building energy code or with the 

2 associated model building energy code. 

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

4 State or Indian tribe certifies progress toward 

5 achieving compliance, the State or Indian tribe 

6 shall repeat the certification until the State or 

7 Indian tribe certifies that the State or Indian 

8 tribe has achieved full compliance, respectively. 

9 ‘‘(2) MEASUREMENT OF COMPLIANCE.—A cer10 tification under paragraph (1) shall include docu11 mentation of the rate of compliance based on— 

12 ‘‘(A) independent inspections of a random 

13 sample of the buildings covered by the code in 

14 the preceding year; or 

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

16 accurate measure of compliance. 

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

18 or Indian tribe shall be considered to achieve full 

19 compliance under paragraph (1) if— 

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

21 covered by the code in the preceding year sub22 stantially meets all the requirements of the ap23 plicable code specified in paragraph (1), or 

24 achieves equivalent or greater energy savings 

25 level; or 


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

2 buildings that did not meet the applicable code 

3 specified in paragraph (1) in the preceding 

4 year, compared to a baseline of comparable 

5 buildings that meet this code, is not more than 

6 5 percent of the estimated energy use of all 

7 buildings covered by this code during the pre8 ceding year. 

9 ‘‘(4) SIGNIFICANT PROGRESS TOWARD

10 ACHIEVEMENT OF COMPLIANCE.—A State or Indian 

11 tribe shall be considered to have made significant 

12 progress toward achieving compliance for purposes 

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

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

15 plan for achieving compliance during the 8- 

16 year-period beginning on the date of enactment 

17 of this paragraph, including annual targets for 

18 compliance and active training and enforcement 

19 programs; and 

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

21 subparagraph (A). 

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

23 than 90 days after a State or Indian tribe certifi24 cation under paragraph (1), the Secretary shall— 


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1 ‘‘(A) determine whether the State or In2 dian tribe has demonstrated meeting the cri3 teria of this subsection, including accurate 

4 measurement of compliance; and 

5 ‘‘(B) if the determination is positive, vali6 date the certification. 

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

8 ACHIEVE COMPLIANCE.— 

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

10 has not made a certification required under sub11 section (b) or (c) by the applicable deadline shall 

12 submit to the Secretary a report on— 

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

14 with respect to meeting the requirements and 

15 submitting the certification; and 

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

17 and submitting the certification. 

18 ‘‘(2) FEDERAL SUPPORT.—For any State or In19 dian tribe for which the Secretary has not validated 

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

21 (c), the lack of the certification may be a consider22 ation for Federal support authorized under this sec23 tion for code adoption and compliance activities. 

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

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1 dated a certification under subsection (b) or (c), a 

2 local government may be eligible for Federal support 

3 by meeting the certification requirements of sub4 sections (b) and (c). 

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

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

7 annually submit to Congress, and publish in the 

8 Federal Register, a report on— 

9 ‘‘(i) the status of model building en10 ergy codes; 

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

12 compliance in the States and Indian tribes; 

13 ‘‘(iii) implementation of this section; 

14 and 

15 ‘‘(iv) improvements in energy savings 

16 over time as result of the targets estab17 lished under section 307(b)(2). 

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

19 estimates of impacts of past action under this 

20 section, and potential impacts of further action, 

21 on— 

22 ‘‘(i) upfront financial and construction 

23 costs, cost benefits and returns (using in24 vestment analysis), and lifetime energy use 

25 for buildings; 


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1 ‘‘(ii) resulting energy costs to individ2 uals and businesses; and 

3 ‘‘(iii) resulting overall annual building 

4 ownership and operating costs. 

5 ‘‘(e) TECHNICAL ASSISTANCE TO STATES AND IN6 DIAN TRIBES.—The Secretary shall provide technical as7 sistance to States and Indian tribes to implement the goals 

8 and requirements of this section, including procedures and 

9 technical analysis for States and Indian tribes— 

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

11 and commercial building energy codes; 

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

13 the States and Indian tribes achieve equivalent or 

14 greater energy savings than the model building en15 ergy codes and targets; 

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

17 building energy code; and 

18 ‘‘(4) to otherwise promote the design and con19 struction of energy efficient buildings. 

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

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

22 incentive funding to States and Indian tribes— 

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

24 section; 


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1 ‘‘(B) to improve and implement residential 

2 and commercial building energy codes, including 

3 increasing and verifying compliance with the 

4 codes and training of State, tribal, and local 

5 building code officials to implement and enforce 

6 the codes; and 

7 ‘‘(C) to promote building energy efficiency 

8 through the use of the codes. 

9 ‘‘(2) ADDITIONAL FUNDING.—Additional fund10 ing shall be provided under this subsection for im11 plementation of a plan to achieve and document full 

12 compliance with residential and commercial building 

13 energy codes under subsection (c)— 

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

15 the Secretary has validated a certification under 

16 subsection (b) or (c); and 

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

18 eligible under subparagraph (A), to a local gov19 ernment that is eligible under this section. 

20 ‘‘(3) TRAINING.—Of the amounts made avail21 able under this subsection, the State or Indian tribe 

22 may use amounts required, but not to exceed 

23 $750,000 for a State, to train State and local build24 ing code officials to implement and enforce codes de25 scribed in paragraph (2). 


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

2 grants under this subsection with local governments 

3 that implement and enforce the codes. 

4 ‘‘(g) STRETCH CODES AND ADVANCED STAND5 ARDS.— 

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

7 technical and financial support for the development 

8 of stretch codes and advanced standards for residen9 tial and commercial buildings for use as— 

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

11 energy code by local, tribal, or State govern12 ments; and 

13 ‘‘(B) guidelines for energy-efficient build14 ing design. 

15 ‘‘(2) TARGETS.—The stretch codes and ad16 vanced standards shall be designed— 

17 ‘‘(A) to achieve substantial energy savings 

18 compared to the model building energy codes; 

19 and 

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

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

22 the target years. 

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

24 building science experts from the National Laboratories 

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1 ers of energy-efficient residential and commercial build2 ings, code officials, and other stakeholders, shall under3 take a study of the feasibility, impact, economics, and 

4 merit of— 

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

6 buildings be designed, sited, and constructed in a 

7 manner that makes the buildings more adaptable in 

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

9 construction, as advances are achieved in energy-sav10 ing technologies; 

11 ‘‘(2) code procedures to incorporate measured 

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

13 and performance calculations; and 

14 ‘‘(3) legislative options for increasing energy 

15 savings from building energy codes, including addi16 tional incentives for effective State and local action, 

17 and verification of compliance with and enforcement 

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

19 ‘‘(i) EFFECT ON OTHER LAWS.—Nothing in this sec20 tion or section 307 supersedes or modifies the application 

21 of sections 321 through 346 of the Energy Policy and 

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

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

24 are authorized to be appropriated to carry out this section 


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

2 expended.’’. 

3 (c) FEDERAL BUILDING ENERGY EFFICIENCY

4 STANDARDS.—Section 305 of the Energy Conservation 

5 and Production Act (42 U.S.C. 6834) is amended by strik6 ing ‘‘voluntary building energy code’’ each place it appears 

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

8 building energy code’’. 

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

10 of the Energy Conservation and Production Act (42 

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

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

13 CODES. 

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

15 updating of model building energy codes. 

16 ‘‘(b) TARGETS.— 

17 ‘‘(1) IN GENERAL.—The Secretary shall sup18 port the updating of the model building energy codes 

19 to enable the achievement of aggregate energy sav20 ings targets established under paragraph (2). 

21 ‘‘(2) TARGETS.— 

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

23 work with State, Indian tribes, local govern24 ments, nationally recognized code and stand25 ards developers, and other interested parties to 


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1 support the updating of model building energy 

2 codes by establishing one or more aggregate en3 ergy savings targets to achieve the purposes of 

4 this section. 

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

6 may establish separate targets for commercial 

7 and residential buildings. 

8 ‘‘(C) BASELINES.—The baseline for updat9 ing model building energy codes shall be the 

10 2009 IECC for residential buildings and 

11 ASHRAE Standard 90.1–2010 for commercial 

12 buildings. 

13 ‘‘(D) SPECIFIC YEARS.— 

14 ‘‘(i) IN GENERAL.—Targets for spe15 cific years shall be established and revised 

16 by the Secretary through rulemaking and 

17 coordinated with nationally recognized code 

18 and standards developers at a level that— 

19 ‘‘(I) is at the maximum level of 

20 energy efficiency that is techno21 logically feasible and life-cycle cost ef22 fective, while accounting for the eco23 nomic considerations under paragraph 

24 (4); 


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1 ‘‘(II) is higher than the preceding 

2 target; and 

3 ‘‘(III) promotes the achievement 

4 of commercial and residential high5 performance buildings through high 

6 performance energy efficiency (within 

7 the meaning of section 401 of the En8 ergy Independence and Security Act 

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

10 ‘‘(ii) INITIAL TARGETS.—Not later 

11 than 1 year after the date of enactment of 

12 this clause, the Secretary shall establish 

13 initial targets under this subparagraph. 

14 ‘‘(iii) DIFFERENT TARGET YEARS.— 

15 Subject to clause (i), prior to the applica16 ble year, the Secretary may set a later tar17 get year for any of the model building en18 ergy codes described in subparagraph (A) 

19 if the Secretary determines that a target 

20 cannot be met. 

21 ‘‘(iv) SMALL BUSINESS.—When estab22 lishing targets under this paragraph 

23 through rulemaking, the Secretary shall 

24 ensure compliance with the Small Business 

25 Regulatory Enforcement Fairness Act of 


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1 1996 (5 U.S.C. 601 note; Public Law 104– 

2 121). 

3 ‘‘(3) APPLIANCE STANDARDS AND OTHER FAC4 TORS AFFECTING BUILDING ENERGY USE.—In es5 tablishing building code targets under paragraph 

6 (2), the Secretary shall develop and adjust the tar7 gets in recognition of potential savings and costs re8 lating to— 

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

10 lighting, windows, insulation, and building enve11 lope sealing; 

12 ‘‘(B) advancement of distributed genera13 tion and on-site renewable power generation 

14 technologies; 

15 ‘‘(C) equipment improvements for heating, 

16 cooling, and ventilation systems; 

17 ‘‘(D) building management systems and 

18 SmartGrid technologies to reduce energy use; 

19 and 

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

21 building systems that the Secretary considers 

22 appropriate regarding building plug load and 

23 other energy uses. 

24 ‘‘(4) ECONOMIC CONSIDERATIONS.—In estab25 lishing and revising building code targets under 


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1 paragraph (2), the Secretary shall consider the eco2 nomic feasibility of achieving the proposed targets 

3 established under this section and the potential costs 

4 and savings for consumers and building owners, in5 cluding a return on investment analysis. 

6 ‘‘(c) TECHNICAL ASSISTANCE TO MODEL BUILDING

7 ENERGY CODE-SETTING AND STANDARD DEVELOPMENT

8 ORGANIZATIONS.— 

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

10 timely basis, provide technical assistance to model 

11 building energy code-setting and standard develop12 ment organizations consistent with the goals of this 

13 section. 

14 ‘‘(2) ASSISTANCE.—The assistance shall in15 clude, as requested by the organizations, technical 

16 assistance in— 

17 ‘‘(A) evaluating code or standards pro18 posals or revisions; 

19 ‘‘(B) building energy analysis and design 

20 tools; 

21 ‘‘(C) building demonstrations; 

22 ‘‘(D) developing definitions of energy use 

23 intensity and building types for use in model 

24 building energy codes to evaluate the efficiency 

25 impacts of the model building energy codes; 


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1 ‘‘(E) performance-based standards; 

2 ‘‘(F) evaluating economic considerations 

3 under subsection (b)(4); and 

4 ‘‘(G) developing model building energy 

5 codes by Indian tribes in accordance with tribal 

6 law. 

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

8 may submit timely model building energy code 

9 amendment proposals to the model building energy 

10 code-setting and standard development organiza11 tions, with supporting evidence, sufficient to enable 

12 the model building energy codes to meet the targets 

13 established under subsection (b)(2). 

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

15 shall make publicly available the entire calculation 

16 methodology (including input assumptions and data) 

17 used by the Secretary to estimate the energy savings 

18 of code or standard proposals and revisions. 

19 ‘‘(d) DETERMINATION.— 

20 ‘‘(1) REVISION OF MODEL BUILDING ENERGY

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

22 Standard 90.1 regarding building energy use are re23 vised, the Secretary shall make a preliminary deter24 mination not later than 90 days after the date of the 

25 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 website with contact information for relevant 

12 technical assistance and support staff in the Office 

13 of Energy Efficiency and Renewable Energy for 

14 States, local educational agencies, and schools to ef15 fectively 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 2015 through 2019, 

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, water efficiency, power factor, or load 

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

21 utility operating under a utility energy service 

22 project.’’. 

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

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


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1 (1) by redesignating paragraphs (1) through 

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

3 and indenting appropriately; 

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

5 the following: 

6 ‘‘(1) IN GENERAL.—The Secretary’’; 

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

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

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

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

12 supply chain analysis, logistics, system monitoring, 

13 industrial and manufacturing processes, and other 

14 purposes’’; and 

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

16 ‘‘(2) COORDINATION.— 

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

18 and capabilities of the industrial research and 

19 assessment centers, the centers shall— 

20 ‘‘(i) coordinate with Manufacturing 

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

24 ‘‘(ii) coordinate with the Building 

25 Technologies 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 2015 through 

17 2024.’’. 

18 Subtitle C—Extended Product 

19 System Rebate Program 

20 SEC. 221. EXTENDED PRODUCT SYSTEM REBATE PROGRAM. 

21 (a) DEFINITIONS.—In this section: 

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

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

24 431.12 of title 10, Code of Federal Regulations (as 

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


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1 (2) ELECTRONIC CONTROL.—The term ‘‘elec2 tronic control’’ means— 

3 (A) a power converter; or 

4 (B) a combination of a power circuit and 

5 control circuit included on 1 chassis. 

6 (3) EXTENDED PRODUCT SYSTEM.—The term 

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

8 and any required associated electronic control and 

9 driven load that— 

10 (A) offers variable speed or multispeed op11 eration; 

12 (B) offers partial load control that reduces 

13 input energy requirements (as measured in kilo14 watt-hours) as compared to identified base lev15 els set by the Secretary; and 

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

17 (ii) uses an extended product system tech18 nology, as determined by the Secretary. 

19 (4) QUALIFIED EXTENDED PRODUCT SYS20 TEM.— 

21 (A) IN GENERAL.—The term ‘‘qualified ex22 tended product system’’ means an extended 

23 product system that— 

24 (i) includes an electric motor and an 

25 electronic control; and 


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1 (ii) reduces the input energy (as 

2 measured in kilowatt-hours) required to 

3 operate the extended product system by 

4 not less than 5 percent, as compared to 

5 identified base levels set by the Secretary. 

6 (B) INCLUSIONS.—The term ‘‘qualified ex7 tended product system’’ includes commercial or 

8 industrial machinery or equipment that— 

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

10 the extended product system prior to the 

11 redesign described in subclause (II); and 

12 (II) incorporates an extended product 

13 system that has greater than 1 horsepower 

14 into redesigned machinery or equipment; 

15 and 

16 (ii) was previously used prior to, and 

17 was placed back into service during, cal18 endar year 2016 or 2017. 

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

20 the date of enactment of this Act, the Secretary shall es21 tablish a program to provide rebates for expenditures 

22 made by qualified entities for the purchase or installation 

23 of a qualified extended product system. 

24 (c) QUALIFIED ENTITIES.— 


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1 (1) ELIGIBILITY REQUIREMENTS.—A qualified 

2 entity under this section shall be— 

3 (A) in the case of a qualified extended 

4 product system described in subsection 

5 (a)(4)(A), the purchaser of the qualified ex6 tended product that is installed; and 

7 (B) in the case of a qualified extended 

8 product system described in subsection 

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

10 or industrial machinery or equipment that in11 corporated the extended product system into 

12 that machinery or equipment. 

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

14 rebate under this section, a qualified entity shall 

15 submit to the Secretary— 

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

17 time, and containing such information as the 

18 Secretary may require; and 

19 (B) a certification that includes dem20 onstrated evidence— 

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

22 and 

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

24 described in paragraph (1)(A)— 


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1 (aa) that the qualified entity in2 stalled the qualified extended product 

3 system during the 2 fiscal years fol4 lowing the date of enactment of this 

5 Act; 

6 (bb) that the qualified extended 

7 product system meets the require8 ments of subsection (a)(4)(A); and 

9 (cc) showing the serial number, 

10 manufacturer, and model number 

11 from the nameplate of the installed 

12 motor of the qualified entity on which 

13 the qualified extended product system 

14 was installed; or 

15 (II) in the case of a qualified entity 

16 described in paragraph (1)(B), dem17 onstrated evidence— 

18 (aa) that the qualified extended 

19 product system meets the require20 ments of subsection (a)(4)(B); and 

21 (bb) showing the serial number, 

22 manufacturer, and model number 

23 from the nameplate of the installed 

24 motor of the qualified entity with 


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1 which the extended product system is 

2 integrated. 

3 (d) AUTHORIZED AMOUNT OF REBATE.— 

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

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

6 the product obtained by multiplying— 

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

8 nameplate rated horsepower of— 

9 (i) the electric motor to which the 

10 qualified extended product system is at11 tached; and 

12 (ii) the electronic control; and 

13 (B) $25. 

14 (2) MAXIMUM AGGREGATE AMOUNT.—A quali15 fied entity shall not be entitled to aggregate rebates 

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

17 year. 

18 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

19 authorized to be appropriated to carry out this section 

20 $5,000,000 for each of the first 2 full fiscal years following 

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

22 expended. 


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1 Subtitle D—Transformer Rebate 

2 Program 

3 SEC. 231. ENERGY EFFICIENT TRANSFORMER REBATE PRO4 GRAM. 

5 (a) DEFINITIONS.—In this section: 

6 (1) QUALIFIED ENERGY EFFICIENT TRANS7 FORMER.—The term ‘‘qualified energy efficient 

8 transformer’’ means a transformer that meets or ex9 ceeds the applicable energy conservation standards 

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

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

12 431.196 of title 10, Code of Federal Regulations (as 

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

14 (2) QUALIFIED ENERGY INEFFICIENT TRANS15 FORMER.—The term ‘‘qualified energy inefficient 

16 transformer’’ means a transformer with an equal 

17 number of phases and capacity to a transformer de18 scribed in any of the tables in subsection (b)(2) and 

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

20 431.196 of title 10, Code of Federal Regulations (as 

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

22 that— 

23 (A) does not meet or exceed the applicable 

24 energy conservation standards described in 

25 paragraph (1); and 


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1 (B)(i) was manufactured between January 

2 1, 1985, and December 31, 2006, for a trans3 former with an equal number of phases and ca4 pacity as a transformer described in the table 

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

6 10, Code of Federal Regulations (as in effect on 

7 the date of enactment of this Act); or 

8 (ii) was manufactured between January 1, 

9 1990, and December 31, 2009, for a trans10 former with an equal number of phases and ca11 pacity as a transformer described in the table 

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

13 section (as in effect on the date of enactment 

14 of this Act). 

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

16 entity’’ means an owner of industrial or manufac17 turing facilities, commercial buildings, or multifamily 

18 residential buildings, a utility, or an energy service 

19 company that fulfills the requirements of subsection 

20 (d). 

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

22 the date of enactment of this Act, the Secretary shall es23 tablish a program to provide rebates to qualified entities 

24 for expenditures made by the qualified entity for the reVerDate Sep 11 2014 00:20 Sep 10, 2015 Jkt 049200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\S720.RS S720

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1 placement of a qualified energy inefficient transformer 

2 with a qualified energy efficient transformer. 

3 (c) REQUIREMENTS.—To be eligible to receive a re4 bate under this section, an entity shall submit to the Sec5 retary an application in such form, at such time, and con6 taining such information as the Secretary may require, in7 cluding demonstrated evidence— 

8 (1) that the entity purchased a qualified energy 

9 efficient transformer; 

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

11 efficient transformer; 

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

13 transformer being replaced; 

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

15 inefficient transformer being replaced— 

16 (A) as measured by a qualified professional 

17 or verified by the equipment manufacturer, as 

18 applicable; or 

19 (B) for transformers described in sub20 section (a)(2)(B)(i), as selected from a table of 

21 default values as determined by the Secretary 

22 in consultation with applicable industry; and 

23 (5) that the qualified energy inefficient trans24 former has been permanently decommissioned and 

25 scrapped. 


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1 (d) AUTHORIZED AMOUNT OF REBATE.—The 

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

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

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

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

6 to the difference in Watts between the core loss 

7 value (as measured in accordance with paragraphs 

8 (2) and (4) of subsection (c)) of— 

9 (A) the qualified energy inefficient trans10 former; and 

11 (B) the qualified energy efficient trans12 former; or 

13 (2) for a transformer described in subsection 

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

15 default rebate values by rated transformer output, 

16 as measured in kilovolt-amperes, as determined by 

17 the Secretary in consultation with applicable indus18 try. 

19 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

20 authorized to be appropriated to carry out this section 

21 $5,000,000 for each of fiscal years 2016 and 2017, to re22 main available until expended. 

23 (f) TERMINATION OF EFFECTIVENESS.—The author24 ity provided by this section terminates on December 31, 

25 2017. 


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1 TITLE III—FEDERAL AGENCY 

2 ENERGY EFFICIENCY 

3 SEC. 301. ENERGY-EFFICIENT AND ENERGY-SAVING INFOR4 MATION TECHNOLOGIES. 

5 Section 543 of the National Energy Conservation 

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

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

8 (relating to large capital energy investments) as sub9 section (g); and 

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

11 ‘‘(h) FEDERAL IMPLEMENTATION STRATEGY FOR

12 ENERGY-EFFICIENT AND ENERGY-SAVING INFORMATION

13 TECHNOLOGIES.— 

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

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

16 means the Director of the Office of Manage17 ment and Budget. 

18 ‘‘(B) INFORMATION TECHNOLOGY.—The 

19 term ‘information technology’ has the meaning 

20 given the term in section 11101 of title 40, 

21 United States Code. 

22 ‘‘(2) DEVELOPMENT OF IMPLEMENTATION

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

24 enactment of this subsection, each Federal agency 

25 shall collaborate with the Director to develop an imVerDate Sep 11 2014 00:20 Sep 10, 2015 Jkt 049200 PO 00000 Frm 00067 Fmt 6652 Sfmt 6201 E:\BILLS\S720.RS S720

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1 plementation strategy (including best-practices and 

2 measurement and verification techniques) for the 

3 maintenance, purchase, and use by the Federal 

4 agency of energy-efficient and energy-saving infor5 mation technologies. 

6 ‘‘(3) ADMINISTRATION.—In developing an im7 plementation strategy, each Federal agency shall 

8 consider— 

9 ‘‘(A) advanced metering infrastructure; 

10 ‘‘(B) energy efficient data center strategies 

11 and methods of increasing asset and infrastruc12 ture utilization; 

13 ‘‘(C) advanced power management tools; 

14 ‘‘(D) building information modeling, in15 cluding building energy management; and 

16 ‘‘(E) secure telework and travel substi17 tution tools. 

18 ‘‘(4) PERFORMANCE GOALS.— 

19 ‘‘(A) IN GENERAL.—Not later than Sep20 tember 30, 2015, the Director, in consultation 

21 with the Secretary, shall establish performance 

22 goals for evaluating the efforts of Federal agen23 cies in improving the maintenance, purchase, 

24 and use of energy-efficient and energy-saving 

25 information technology systems. 


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1 ‘‘(B) BEST PRACTICES.—The Chief Infor2 mation Officers Council established under sec3 tion 3603 of title 44, United States Code, shall 

4 supplement the performance goals established 

5 under this paragraph with recommendations on 

6 best practices for the attainment of the per7 formance goals, to include a requirement for 

8 agencies to consider the use of— 

9 ‘‘(i) energy savings performance con10 tracting; and 

11 ‘‘(ii) utility energy services con12 tracting. 

13 ‘‘(5) REPORTS.— 

14 ‘‘(A) AGENCY REPORTS.—Each Federal 

15 agency subject to the requirements of this sub16 section shall include in the report of the agency 

17 under section 527 of the Energy Independence 

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

19 description of the efforts and results of the 

20 agency under this subsection. 

21 ‘‘(B) OMB GOVERNMENT EFFICIENCY RE22 PORTS AND SCORECARDS.—Effective beginning 

23 not later than October 1, 2015, the Director 

24 shall include in the annual report and scorecard 

25 of the Director required under section 528 of 


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1 the Energy Independence and Security Act of 

2 2007 (42 U.S.C. 17144) a description of the ef3 forts and results of Federal agencies under this 

4 subsection. 

5 ‘‘(C) USE OF EXISTING REPORTING STRUC6 TURES.—The Director may require Federal 

7 agencies to submit any information required to 

8 be submitted under this subsection though re9 porting structures in use as of the date of en10 actment of the Energy Savings and Industrial 

11 Competitiveness Act of 2015.’’. 

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

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

14 amended— 

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

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

17 (2) by inserting after subsection (c) the fol18 lowing: 

19 ‘‘(d) AVAILABILITY OF FUNDS FOR DESIGN UP20 DATES.— 

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

22 for any project for which congressional approval is 

23 received under subsection (a) and for which the de24 sign has been substantially completed but construc25 tion has not begun, the Administrator of General 


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1 Services may use appropriated funds to update the 

2 project design to meet applicable Federal building 

3 energy efficiency standards established under section 

4 305 of the Energy Conservation and Production Act 

5 (42 U.S.C. 6834) and other requirements estab6 lished under section 3312. 

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

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

9 estimated energy or other cost savings associated 

10 with the updates as determined by a life cycle cost 

11 analysis under section 544 of the National Energy 

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

13 SEC. 303. ENERGY EFFICIENT DATA CENTERS. 

14 Section 453 of the Energy Independence and Security 

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

16 (1) in subsection (b)— 

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

18 ‘‘the organization’’ and inserting ‘‘an organiza19 tion’’; and 

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

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

22 inserting the following: 

23 ‘‘(c) STAKEHOLDER INVOLVEMENT.— 

24 ‘‘(1) IN GENERAL.—The Secretary and the Ad25 ministrator shall carry out subsection (b) in conVerDate Sep 11 2014 00:20 Sep 10, 2015 Jkt 049200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 E:\BILLS\S720.RS S720

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1 sultation with the information technology industry 

2 and other key stakeholders, with the goal of pro3 ducing results that accurately reflect the best knowl4 edge in the most pertinent domains. 

5 ‘‘(2) CONSIDERATIONS.—In carrying out con6 sultation described in paragraph (1), the Secretary 

7 and the Administrator shall pay particular attention 

8 to organizations that— 

9 ‘‘(A) have members with expertise in en10 ergy efficiency and in the development, oper11 ation, and functionality of data centers, infor12 mation technology equipment, and software, in13 cluding representatives of hardware manufac14 turers, data center operators, and facility man15 agers; 

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

17 National Laboratories (as that term is defined 

18 in section 2 of the Energy Policy Act of 2005 

19 (42 U.S.C. 15801)) or any institution of higher 

20 education, research institution, industry asso21 ciation, company, or public interest group with 

22 applicable expertise; 

23 ‘‘(C) follow— 

24 ‘‘(i) commonly accepted procedures 

25 for the development of specifications; and 


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1 ‘‘(ii) accredited standards development 

2 processes; or 

3 ‘‘(D) have a mission to promote energy ef4 ficiency for data centers and information tech5 nology. 

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

7 Secretary and the Administrator shall consider and assess 

8 the adequacy of the specifications, measurements, and 

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

10 Federal Energy Management Program, the Energy Star 

11 Program, and other efficiency programs of the Depart12 ment of Energy or the Environmental Protection Agency. 

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

14 Administrator, not later than 18 months after the date 

15 of enactment of the Energy Savings and Industrial Com16 petitiveness Act of 2015, shall make available to the public 

17 an update to the report submitted to Congress pursuant 

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

19 109–431; 120 Stat. 2920), entitled ‘Report to Congress 

20 on Server and Data Center Energy Efficiency’ and dated 

21 August 2, 2007, that provides— 

22 ‘‘(1) a comparison and gap analysis of the esti23 mates and projections contained in the original re24 port with new data regarding the period from 2007 

25 through 2014; 


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

3 cloud computing, in the public and private sectors; 

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

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

7 and 

8 ‘‘(4) updated projections and recommendations 

9 for best practices through fiscal year 2020. 

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

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

14 Office of Management and Budget, shall maintain a 

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

17 qualified to evaluate the energy usage and efficiency 

18 opportunities in Federal data centers. 

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

20 shall consider having the data centers of the agency 

21 evaluated once every 4 years by energy practitioners 

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

24 agency. 

25 ‘‘(g) OPEN DATA INITIATIVE.— 


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

3 Office of Management and Budget, shall establish 

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

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

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

12 ‘‘(h) INTERNATIONAL SPECIFICATIONS AND

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

15 global specifications and metrics for data center energy 

16 efficiency. 

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

21 equipment and facilities). 

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

23 The Secretary and the Administrator shall not disclose 

24 any proprietary information or trade secrets provided by 

25 any individual or company for the purposes of carrying 


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1 out this section or the programs and initiatives established 

2 under this section.’’. 

3 SEC. 304. BUDGET-NEUTRAL DEMONSTRATION PROGRAM 

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

7 (a) ESTABLISHMENT.—The Secretary of Housing 

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

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

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

11 enactment of this Act, and ending on September 30, 2018, 

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

14 water costs with such entities as the Secretary determines 

15 to be appropriate under which the entities shall carry out 

16 projects for energy or water conservation improvements at 

17 not more than 20,000 residential units in multifamily 

18 buildings participating in— 

19 (1) the project-based rental assistance program 

20 under section 8 of the United States Housing Act of 

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

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

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


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

3 Cranston-Gonzalez National Affordable Housing Act 

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

5 (b) REQUIREMENTS.— 

6 (1) PAYMENTS CONTINGENT ON SAVINGS.— 

7 (A) IN GENERAL.—The Secretary shall 

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

10 years for which an energy or water cost savings 

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

13 the Secretary, in accordance with subparagraph 

14 (B). 

15 (B) PAYMENT METHODOLOGY.— 

16 (i) IN GENERAL.—Each agreement 

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

19 (I) that will serve as a payment 

20 threshold for the term of the agree21 ment; and 

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

25 the savings at a level determined by 


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1 the Secretary that is sufficient to 

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

4 (ii) LIMITATIONS.—A payment made 

5 by the Secretary under an agreement 

6 under this section shall— 

7 (I) be contingent on documented 

8 utility savings; and 

9 (II) not exceed the utility savings 

10 achieved by the date of the payment, 

11 and not previously paid, as a result of 

12 the improvements made under the 

13 agreement. 

14 (C) THIRD PARTY VERIFICATION.—Savings 

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

17 verification protocol that includes at least— 

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

21 (ii) annual third party confirmation of 

22 actual utility consumption and cost for 

23 owner-paid utilities; 

24 (iii) annual third party validation of 

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1 ing the applicable year and vacancy rates 

2 for each unit type; and 

3 (iv) annual third party determination 

4 of savings to the Secretary. 

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

6 this section shall be not longer than 12 years. 

7 (3) ENTITY ELIGIBILITY.—The Secretary 

8 shall— 

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

11 (B) enter into such agreements only with 

12 entities that demonstrate significant experience 

13 relating to— 

14 (i) financing and operating properties 

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

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

19 contractors; and 

20 (iii) raising capital for energy and 

21 water conservation improvements from 

22 charitable organizations or private inves23 tors. 

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


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

3 (c) PLAN AND REPORTS.— 

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

5 date of enactment of this Act, the Secretary shall 

6 submit to the Committees on Appropriations of the 

7 House of Representatives and the Senate a detailed 

8 plan for the implementation of this section. 

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

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

12 (A) conduct an evaluation of the program 

13 under this section; and 

14 (B) submit to Congress a report describing 

15 each evaluation conducted under subparagraph 

16 (A). 

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

18 agreement under this section is in effect, the Secretary 

19 may use to carry out this section any funds appropriated 

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


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1 TITLE IV—REGULATORY 

2 PROVISIONS 

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

6 SEC. 401. THIRD-PARTY CERTIFICATION UNDER ENERGY 

7 STAR PROGRAM. 

8 Section 324A of the Energy Policy and Conservation 

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

10 the following: 

11 ‘‘(e) THIRD-PARTY CERTIFICATION.— 

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

13 not later than 180 days after the date of enactment 

14 of this subsection, the Administrator shall revise the 

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

19 at least 18 months. 

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

22 requirements under paragraph (1)— 

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


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

2 product information be submitted to facilitate 

3 product listing and performance verification for 

4 a sample of products. 

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

7 parties in the course of the administration of the 

8 Energy Star program. 

9 ‘‘(4) TERMINATION.— 

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

13 paragraph (1) shall terminate if the program 

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

16 models during a 2-year period. 

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

18 program partner under subparagraph (A) shall 

19 cease if the program partner complies with all 

20 Energy Star program requirements for a period 

21 of at least 3 years.’’. 


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1 Subtitle B—Federal Green 

2 Buildings 

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

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

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

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

10 following: 

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

13 provide to the Secretary pursuant to section 

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

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

18 and environmentally sound approach to certification 

19 of green buildings.’’; and 

20 (3) in paragraph (2)— 

21 (A) in the matter preceding subparagraph 

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

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


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

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

3 the Energy Conservation and Production Act 

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

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

7 and 

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

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

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

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

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

14 period at the end and inserting a semicolon; 

15 and 

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

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

19 system does not discriminate against the use of 

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

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


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1 Subtitle C—Water Heaters 

2 SEC. 421. GRID-ENABLED WATER HEATERS. 

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

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

6 adding at the end the following: 

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

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

10 ‘‘(i) ACTIVATION LOCK.—The term 

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

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

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

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

19 specifications and capabilities and without 

20 which activation the product will provide 

21 not greater than 50 percent of the rated 

22 first hour delivery of hot water certified by 

23 the manufacturer. 

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


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1 means an electric resistance water heater 

2 that— 

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

5 ‘‘(II) is manufactured on or after 

6 April 16, 2015; 

7 ‘‘(III) has— 

8 ‘‘(aa) an energy factor of 

9 not less than 1.061 minus the 

10 product obtained by multi11 plying— 

12 ‘‘(AA) the rated storage 

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

15 ‘‘(BB) 0.00168; or 

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

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

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

21 manufacture with an activation lock; 

22 and 

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


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1 ‘‘(aa) is made of material 

2 not adversely affected by water; 

3 ‘‘(bb) is attached by means 

4 of non-water-soluble adhesive; 

5 and 

6 ‘‘(cc) advises purchasers and 

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

9 the following notice printed in 

10 16.5 point Arial Narrow Bold 

11 font: 

12 ‘‘ ‘IMPORTANT INFORMATION: This water heater is 

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

14 or demand response program. It will not provide adequate 

15 hot water unless enrolled in such a program and activated 

16 by your utility company or another program operator. 

17 Confirm the availability of a program in your local area 

18 before purchasing or installing this product.’. 

19 ‘‘(B) REQUIREMENT.—The manufacturer 

20 or private labeler shall provide the activation 

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

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


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1 ‘‘(C) REPORTS.— 

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

4 grid-enabled water heaters to report to the 

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

7 ships each year. 

8 ‘‘(ii) OPERATORS.—The Secretary 

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

12 grid-enabled water heaters activated for 

13 their programs using forms of the Energy 

14 Information Agency or using such other 

15 mechanism that the Secretary determines 

16 appropriate after an opportunity for notice 

17 and comment. 

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

21 confidential business information. 

22 ‘‘(D) PUBLICATION OF INFORMATION.— 

23 ‘‘(i) IN GENERAL.—In 2017 and 

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1 graph (C) to assess the extent to which 

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

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

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

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

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

15 ‘‘(E) COMPLIANCE.— 

16 ‘‘(i) IN GENERAL.—Subparagraphs 

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

18 until the Secretary determines under this 

19 section that— 

20 ‘‘(I) grid-enabled water heaters 

21 do not require a separate efficiency 

22 requirement; or 

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

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1 vated for use in demand response and 

2 thermal storage programs annually 

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

5 would not be adequate to prevent such 

6 product diversion. 

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

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

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

13 ‘‘(iii) CONSIDERATION.—In carrying 

14 out this section with respect to electric 

15 water heaters, the Secretary shall consider 

16 the impact on thermal storage and demand 

17 response programs, including any impact 

18 on energy savings, electric bills, peak load 

19 reduction, electric reliability, integration of 

20 renewable resources, and the environment. 

21 ‘‘(iv) REQUIREMENTS.—In carrying 

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

24 equipped with communication capability to 

25 enable the grid-enabled water heaters to 


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1 participate in ancillary services programs if 

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

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

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

7 the end; 

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

9 the period at the end and inserting a semicolon; 

10 (C) by redesignating the second paragraph 

11 (6) as paragraph (7); 

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

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

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

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

16 ‘‘(8) for any person— 

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

18 grid-enabled water heater with knowledge that 

19 such water heater is not used as part of an 

20 electric thermal storage or demand response 

21 program; 

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

23 grid-enabled water heater with knowledge that 

24 such activation key will be used to activate a 

25 grid-enabled water heater that is not used as 


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1 part of an electric thermal storage or demand 

2 response program; 

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

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

6 such water heater is not used as part of an 

7 electric thermal storage or demand response 

8 program; or 

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

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

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

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

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

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

19 and 

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

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

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


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1 Subtitle DC—Energy Performance 

2 Requirement for Federal Buildings 

3 SEC. 4321. ENERGY PERFORMANCE REQUIREMENT FOR 

4 FEDERAL BUILDINGS. 

5 Section 543 of the National Energy Conservation 

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

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

8 following: 

9 ‘‘(a) ENERGY PERFORMANCE REQUIREMENT FOR

10 FEDERAL BUILDINGS.— 

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

12 (2), each agency shall apply energy conservation 

13 measures to, and shall improve the design for the 

14 construction of, the Federal buildings of the agency 

15 (including each industrial or laboratory facility) so 

16 that the energy consumption per gross square foot 

17 of the Federal buildings of the agency in fiscal years 

18 2006 through 2017 is reduced, as compared with the 

19 energy consumption per gross square foot of the 

20 Federal buildings of the agency in fiscal year 2003, 

21 by the percentage specified in the following table: 

Percentage 

‘‘Fiscal Year Reduction 

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

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

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

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

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

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

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


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Percentage 

‘‘Fiscal Year Reduction 

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

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

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

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

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

1 ‘‘(2) EXCLUSION FOR BUILDINGS WITH ENERGY

2 INTENSIVE ACTIVITIES.— 

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

5 any building (including the associated energy 

6 consumption and gross square footage) in which 

7 energy intensive activities are carried out. 

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

10 548(a) the buildings designated by the agency 

11 for exclusion under subparagraph (A). 

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

13 2017, the Secretary shall— 

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

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

18 subparagraph (A), submit to Congress a report 

19 that addresses the feasibility of requiring each 

20 agency to apply energy conservation measures 

21 to, and improve the design for the construction 

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1 ing each industrial or laboratory facility) so 

2 that the energy consumption per gross square 

3 foot of the Federal buildings of the agency in 

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

8 3 percent.’’; and 

9 (2) in subsection (f)— 

10 (A) in paragraph (1)— 

11 (i) by redesignating subparagraphs 

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

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

14 (ii) by inserting after subparagraph 

15 (D) the following: 

16 ‘‘(E) ONGOING COMMISSIONING.—The 

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

19 data, the primary goal of which is to ensure 

20 continuous optimum performance of a facility, 

21 in accordance with design or operating needs, 

22 over the useful life of the facility, while meeting 

23 facility occupancy requirements.’’; 

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

25 the following: 


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1 ‘‘(C) ENERGY MANAGEMENT SYSTEM.—An 

2 energy manager designated under subparagraph 

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

4 energy use at the facility and certification of 

5 the facility in accordance with the International 

6 Organization for Standardization standard 

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

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

10 inserting the following: 

11 ‘‘(3) ENERGY AND WATER EVALUATIONS AND

12 COMMISSIONING.— 

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

14 in subparagraph (B), effective beginning on the 

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

17 Competitiveness Act of 2015, and annually 

18 thereafter, each energy manager shall complete, 

19 for each calendar year, a comprehensive energy 

20 and water evaluation and recommissioning or 

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

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


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

4 ‘‘(i) has had a comprehensive energy 

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

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

10 of the evaluation; or 

11 ‘‘(II) is under ongoing commissioning; 

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

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

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

17 the year preceding the evaluation; and 

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

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

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

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

24 evaluation; or 

25 ‘‘(bb) the date— 


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1 ‘‘(AA) of the most recent 

2 commissioning, recommissioning, 

3 or retrocommissioning; or 

4 ‘‘(BB) on which ongoing 

5 commissioning began; or 

6 ‘‘(II) has a long-term contract in 

7 place guaranteeing energy savings at least 

8 as great as the energy savings target under 

9 subclause (I). 

10 ‘‘(4) IMPLEMENTATION OF IDENTIFIED ENERGY

11 AND WATER EFFICIENCY MEASURES.— 

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

13 after the date of completion of each evaluation 

14 under paragraph (3), each energy manager 

15 may— 

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

18 identified in the evaluation conducted 

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

20 effective; and 

21 ‘‘(ii) bundle individual measures of 

22 varying paybacks together into combined 

23 projects. 

24 ‘‘(B) MEASURES NOT IMPLEMENTED.— 

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1 tification system under paragraph (7), explain 

2 the reasons why any life-cycle cost effective 

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

5 Secretary.’’; and 

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

7 end the following: 

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

10 summarizes the information tracked under 

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

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

13 SEC. 4322. FEDERAL BUILDING ENERGY EFFICIENCY PER14 FORMANCE STANDARDS; CERTIFICATION 

15 SYSTEM AND LEVEL FOR GREEN BUILDINGS. 

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

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

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

21 and 

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

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

24 renovation’ means a modification of building energy 

25 systems sufficiently extensive that the whole building 


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1 can meet energy standards for new buildings, based 

2 on criteria to be established by the Secretary 

3 through notice and comment rulemaking.’’. 

4 (b) FEDERAL BUILDING EFFICIENCY STANDARDS.— 

5 Section 305 of the Energy Conservation and Production 

6 Act (42 U.S.C. 6834) is amended— 

7 (1) in subsection (a)(3)— 

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

9 and all that follows through subparagraph (B) 

10 and inserting the following: 

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

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

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

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

22 energy efficiency performance standards 

23 that require that— 


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1 ‘‘(I) new Federal buildings and 

2 alterations and additions to existing 

3 Federal buildings— 

4 ‘‘(aa) meet or exceed the 

5 most recent revision of the Inter6 national Energy Conservation 

7 Code (in the case of residential 

8 buildings) or ASHRAE Standard 

9 90.1 (in the case of commercial 

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

12 and Industrial Competitiveness 

13 Act of 2015; and 

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

16 building codes applicable to the 

17 building, if the codes are more 

18 stringent than the International 

19 Energy Conservation Code or 

20 ASHRAE Standard 90.1, as ap21 plicable; 

22 ‘‘(II) unless demonstrated not to 

23 be life-cycle cost effective for new 

24 Federal buildings and Federal build25 ings with major renovations— 


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

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

6 ASHRAE Standard or the Inter7 national Energy Conservation 

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

12 ‘‘(bb) sustainable design 

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

16 and replacement Federal build17 ings; 

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

19 energy efficiency, water conservation 

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

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

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


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1 percent of the hot water demand for 

2 each new Federal building or Federal 

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

5 and use of solar hot water heaters. 

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

7 not apply to unaltered portions of existing 

8 Federal buildings and systems that have 

9 been added to or altered. 

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

11 after the date of approval of each subsequent 

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

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

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

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

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

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

23 request’’; and 

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


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

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

5 shall be applied to the siting, design, and 

6 construction of buildings covered by this 

7 subparagraph. 

8 ‘‘(ii) SELECTION OF CERTIFICATION

9 SYSTEMS.—The Secretary, after reviewing 

10 the findings of the Federal Director under 

11 section 436(h) of the Energy Independence 

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

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

17 and control of the Department of Defense, 

18 shall determine those certification systems 

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

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

23 to certification of green buildings. 

24 ‘‘(iii) BASIS FOR SELECTION.—The 

25 determination of the certification systems 


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1 under clause (ii) shall be based on ongoing 

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

4 Independence and Security Act of 2007 

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

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

9 subparagraph, the Secretary shall— 

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

12 ‘‘(II) confirm that the criteria 

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

15 technologies are fair and neutral 

16 (meaning that such criteria are based 

17 on an objective assessment of relevant 

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

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

23 prefer performance measures when24 ever performance measures may reaVerDate Sep 11 2014 00:20 Sep 10, 2015 Jkt 049200 PO 00000 Frm 00105 Fmt 6652 Sfmt 6201 E:\BILLS\S720.RS S720

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1 sonably be used in lieu of prescriptive 

2 measures; and 

3 ‘‘(III) use environmental and 

4 health criteria that are based on risk 

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

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

12 ‘‘(I) the ability and availability of 

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

16 to implement this subparagraph; 

17 ‘‘(II) the ability of the applicable 

18 certification organization to collect 

19 and reflect public comment; 

20 ‘‘(III) the ability of the standard 

21 to be developed and revised through a 

22 consensus-based process; 

23 ‘‘(IV) an evaluation of the 

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1 performance green building, which 

2 shall give credit for promoting— 

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

5 other natural resources; 

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

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

13 use of low-emission materials and 

14 building system controls; and 

15 ‘‘(dd) such other criteria as 

16 the Secretary determines to be 

17 appropriate; and 

18 ‘‘(V) national recognition within 

19 the building industry. 

20 ‘‘(vi) REVIEW.—The Secretary, in 

21 consultation with the Administrator of 

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

24 evaluate and compare private sector green 


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1 building certification systems, taking into 

2 account— 

3 ‘‘(I) the criteria described in 

4 clause (v); and 

5 ‘‘(II) the identification made by 

6 the Federal Director under section 

7 436(h) of the Energy Independence 

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

9 17092(h)). 

10 ‘‘(vii) EXCLUSIONS.— 

11 ‘‘(I) IN GENERAL.—Subject to 

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

15 shall— 

16 ‘‘(aa) identify the portions 

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

21 ‘‘(bb) determine the portions 

22 of the system that are suitable 

23 for use; and 


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

4 ‘‘(II) ENTIRE SYSTEMS.—The 

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

7 subclause (I)— 

8 ‘‘(aa) impedes the integrated 

9 use of the system; 

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

13 ‘‘(cc) increases agency costs 

14 of the use. 

15 ‘‘(viii) INTERNAL CERTIFICATION

16 PROCESSES.—The Secretary may by rule 

17 allow Federal agencies to develop internal 

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

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

23 housing, the Secretary of Defense, after 

24 consultation with the Secretary may, 

25 through rulemaking, develop alternative 


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1 certification systems and levels than the 

2 systems and levels identified under clause 

3 (ii) that achieve an equivalent result in 

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

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

8 water conservation technologies otherwise 

9 required by this section, water conservation 

10 technologies shall be applied to the extent 

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

13 ‘‘(xi) EFFECTIVE DATE.— 

14 ‘‘(I) DETERMINATIONS MADE

15 AFTER DECEMBER 31, 2015.—The 

16 amendments made by section 

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

18 Industrial Competitiveness Act of 

19 2015 shall apply to any determination 

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

22 ‘‘(II) DETERMINATIONS MADE ON

23 OR BEFORE DECEMBER 31, 2015.— 

24 This subparagraph (as in effect on the 

25 day before the date of enactment of 


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

3 to any use of a certification system 

4 for green commercial and residential 

5 buildings by a Federal agency on or 

6 before December 31, 2015.’’; and 

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

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

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

11 building energy standards established under this sec12 tion; and 

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

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

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

18 economically justified.’’. 

19 SEC. 4323. ENHANCED ENERGY EFFICIENCY UNDER20 WRITING. 

21 (a) DEFINITIONS.—In this section: 

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

23 agency’’— 

24 (A) means— 


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1 (i) an executive agency, as that term 

2 is defined in section 102 of title 31, United 

3 States Code; and 

4 (ii) any other agency of the Federal 

5 Government; and 

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

7 defined under section 1303 of the Federal 

8 Housing Enterprises Financial Safety and 

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

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

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

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

14 means the mortgagor under a covered loan. 

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

16 means— 

17 (A) an original lender under a covered loan 

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

19 which that mortgage transaction is con20 summated; 

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

23 a covered loan or the holder of a covered loan 

24 at the time at which that mortgage transaction 

25 is consummated; 


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

2 (D) any subsequent purchaser, trustee, or 

3 transferee of any covered loan issued by an 

4 original lender. 

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

6 the Secretary of Housing and Urban Development. 

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

8 person or entity responsible for the servicing of a 

9 covered loan, including the person or entity who 

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

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

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

14 Estate Settlement Procedures Act of 1974 (12 

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

16 (b) FINDINGS AND PURPOSES.— 

17 (1) FINDINGS.—Congress finds that— 

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

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

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


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1 (D) the current test for loan affordability 

2 used by most covered agencies, commonly 

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

5 expected energy cost savings for the homeowner 

6 of an energy efficient home; and 

7 (E) another loan limitation, commonly 

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

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

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

12 are to— 

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

16 the underwriting process as described below, 

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

19 of energy efficiency retrofit and construction 

20 jobs; 

21 (B) require a covered agency to include the 

22 expected energy cost savings of a homeowner as 

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


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

3 (C) require a covered agency to include the 

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

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

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

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

12 the date of enactment of this Act, the Secretary 

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

16 loan eligibility requirements, for use when testing 

17 the ability of a loan applicant to repay a covered 

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

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

21 (2) REQUIREMENTS TO ACCOUNT FOR ENERGY

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

24 for all covered loans for which an energy efficiency 

25 report is voluntarily provided to the mortgagee by 


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

6 debt plus other regular expenses. To the extent that 

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

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

11 offset to these expenses. Energy costs to be assessed 

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

13 any other fuel regularly used to supply energy to the 

14 subject property. 

15 (3) DETERMINATION OF ESTIMATED ENERGY

16 COST SAVINGS.— 

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

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

20 estimated energy cost savings using— 

21 (i) the energy efficiency report; 

22 (ii) an estimate of baseline average 

23 energy costs; and 

24 (iii) additional sources of information 

25 as determined by the Secretary. 


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1 (B) REPORT REQUIREMENTS.—For the 

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

4 (i) estimate the expected energy cost 

5 savings specific to the subject property, 

6 based on specific information about the 

7 property; 

8 (ii) be prepared in accordance with 

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

11 (iii) be prepared— 

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

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

19 does not further the purposes of this 

20 section; or 

21 (II) by other methods approved 

22 by the Secretary, in consultation with 

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

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


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

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

5 energy efficiency report shall be provided to the 

6 appraiser to estimate the energy efficiency of 

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

9 (4) REQUIRED DISCLOSURE TO CONSUMER FOR

10 A HOME WITH AN ENERGY EFFICIENCY REPORT.— 

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

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

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

17 prescribed by the Secretary, and if practicable, 

18 in the documents delivered at the time of loan 

19 application; and 

20 (B) include the energy efficiency report in 

21 the documentation for the loan provided to the 

22 borrower. 

23 (5) REQUIRED DISCLOSURE TO CONSUMER FOR

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


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

2 under paragraph (1) shall require the mortgagee to 

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

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

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

7 (A) typical energy cost savings that would 

8 be possible from a cost-effective energy upgrade 

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

10 subject property; 

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

13 a typical home; 

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

15 that could be obtained if the typical energy cost 

16 savings were reflected in an energy efficiency 

17 report; and 

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

20 (6) PRICING OF LOANS.— 

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

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

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


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1 (B) IMPOSITION OF CERTAIN MATERIAL

2 COSTS, IMPEDIMENTS, OR PENALTIES.—In the 

3 absence of a publicly disclosed analysis that 

4 demonstrates significant additional default risk 

5 or prepayment risk associated with the loans, a 

6 covered agency shall not impose material costs, 

7 impediments, or penalties on covered loans 

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

11 (7) LIMITATIONS.— 

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

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

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

17 (B) PROHIBITED ACTIONS.—A covered 

18 agency shall not— 

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

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

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


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

5 the loan uses an energy efficiency report or 

6 the enhanced loan eligibility requirements 

7 required under this subsection. 

8 (8) APPLICABILITY AND IMPLEMENTATION

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

11 the enhanced loan eligibility requirements required 

12 under this subsection shall be implemented by each 

13 covered agency to— 

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

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

16 home; 

17 (B) be available on any residential real 

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

20 a covered loan; and 

21 (C) provide prospective mortgagees with 

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

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


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

2 the date of enactment of this Act, the Secretary 

3 shall— 

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

6 the advisory group established in subsection 

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

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

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

13 and 

14 (B) in consultation with the Secretary of 

15 Energy, issue guidelines for a covered agency to 

16 determine the estimated energy savings under 

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

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

21 under paragraph (1) shall include— 

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

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

25 the mortgagee, such report shall be used by the 


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1 mortgagee or covered agency to determine the 

2 estimated energy savings of the subject prop3 erty; and 

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

6 the appraised value of the subject property by 

7 a mortgagee or covered agency for the purpose 

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

9 subject property, unless the appraisal includes 

10 the value of the overall energy efficiency of the 

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

14 (3) DETERMINATION OF ESTIMATED ENERGY

15 SAVINGS.— 

16 (A) AMOUNT OF ENERGY SAVINGS.—The 

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

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

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

23 based upon the energy efficiency report. 

24 (B) DURATION OF ENERGY SAVINGS.—The 

25 duration of the estimated energy savings shall 


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

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

7 shall be discounted using the average interest 

8 rate on conventional 30-year mortgages, in the 

9 manner directed by guidelines issued under 

10 paragraph (1). 

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

13 Institutions Reform, Recovery, and Enforcement Act 

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

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

16 and inserting a semicolon; and 

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

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

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

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

25 or features of a property, such as— 


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

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

4 ‘‘(C) blueprints; 

5 ‘‘(D) construction costs; 

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

8 systems installed in a property; 

9 ‘‘(F) utility bills; 

10 ‘‘(G) energy consumption and 

11 benchmarking data; and 

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

16 licensed appraisers, including section 501 of the 

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

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

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

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


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1 Institutions Reform, Recovery, and Enforcement Act 

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

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

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

6 using an energy efficiency report’’; and 

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

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

9 which the appraiser makes adjustments using 

10 an energy efficiency report.’’. 

11 (6) PROTECTIONS.— 

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

14 paragraph (1) shall include such limitations and 

15 conditions as determined by the Secretary to be 

16 necessary to protect against meaningful under 

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

19 or energy cost savings in the valuation of any 

20 subject property that is used to determine a 

21 loan amount. 

22 (B) ADDITIONAL AUTHORITY.—At the end 

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

25 valuation requirements under this section, the 


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

3 (2), where the Secretary finds that the 

4 unadjusted appraisal will reflect an accurate 

5 market value of the efficiency of the subject 

6 property or that a modified approach will better 

7 reflect an accurate market value. 

8 (7) APPLICABILITY AND IMPLEMENTATION

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

11 each covered agency shall implement the guidelines 

12 required under this subsection, which shall— 

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

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

15 home; and 

16 (B) be available on any residential real 

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

19 covered loan. 

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

21 date on which the enhanced eligibility and underwriting 

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

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


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1 (1) enumerates the number of covered loans of 

2 the agency for which there was an energy efficiency 

3 report, and that used energy efficiency appraisal 

4 guidelines and enhanced loan eligibility require5 ments; 

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

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

9 agency has priced into covered loans for which there 

10 was an energy efficiency report. 

11 (f) RULEMAKING.— 

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

16 contain such classifications, differentiations, or other 

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

19 types of transactions, as the Secretary determines 

20 are necessary or proper to effectuate the purposes of 

21 this section, to prevent circumvention or evasion 

22 thereof, or to facilitate compliance therewith. 

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

24 out this section, the Secretary shall establish an adVerDate Sep 11 2014 00:20 Sep 10, 2015 Jkt 049200 PO 00000 Frm 00128 Fmt 6652 Sfmt 6201 E:\BILLS\S720.RS S720

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1 visory group, consisting of individuals representing 

2 the interests of— 

3 (A) mortgage lenders; 

4 (B) appraisers; 

5 (C) energy raters and residential energy 

6 consumption experts; 

7 (D) energy efficiency organizations; 

8 (E) real estate agents; 

9 (F) home builders and remodelers; 

10 (G) State energy officials; and 

11 (H) others as determined by the Secretary. 

12 (g) ADDITIONAL STUDY.— 

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

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

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

18 the implementation of the enhanced energy efficiency 

19 underwriting criteria established in subsections (c) 

20 and (d). 

21 (2) RECOMMENDATIONS.—The advisory group 

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

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


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

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

5 costs and water costs. The Secretary shall forward 

6 any legislative recommendations from the advisory 

7 group to Congress for its consideration. 

8 Subtitle ED—Voluntary 

9 Verification Programs for Air 

10 Conditioning, Furnace, Boiler, 

11 Heat Pump, and Water Heater 

12 Products 

13 SEC. 441. VOLUNTARY VERIFICATION PROGRAMS FOR AIR 

14 CONDITIONING, FURNACE, BOILER, HEAT 

15 PUMP, AND WATER HEATER PRODUCTS. 

16 Section 326(b) of the Energy Policy and Conserva17 tion Act (42 U.S.C. 6296(b)) is amended by adding at 

18 the end the following: 

19 ‘‘(6) VOLUNTARY VERIFICATION PROGRAMS FOR

20 AIR CONDITIONING, FURNACE, BOILER, HEAT PUMP, 

21 AND WATER HEATER PRODUCTS.— 

22 ‘‘(A) RELIANCE ON VOLUNTARY PRO23 GRAMS.—For the purpose of verifying compli24 ance with energy conservation standards and 

25 Energy Star specifications established under 


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1 sections 324A, 325, and 342 for covered prod2 ucts described in paragraphs (3), (4), (5), (9), 

3 and (11) of section 322(a) and covered equip4 ment described in subparagraphs (B), (C), (D), 

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

6 Secretary and the Administrator of the Envi7 ronmental Protection Agency shall rely on vol8 untary verification programs that are recog9 nized by the Secretary in accordance with sub10 paragraph (B). 

11 ‘‘(B) RECOGNITION OF VOLUNTARY

12 VERIFICATION PROGRAMS.— 

13 ‘‘(i) IN GENERAL.—Not later than 

14 180 days after the date of enactment of 

15 this paragraph, the Secretary and the Ad16 ministrator of the Environmental Protec17 tion Agency shall initiate a negotiated rule18 making in accordance with subchapter III 

19 of chapter 5 of title 5, United States Code 

20 (commonly known as the ‘Negotiated Rule21 making Act of 1990’) to develop criteria 

22 that have consensus support for achieving 

23 recognition by the Secretary as an ap24 proved voluntary verification program. 


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1 ‘‘(ii) MINIMUM REQUIREMENTS.—The 

2 criteria developed under clause (i) shall, at 

3 a minimum, ensure that the voluntary 

4 verification program— 

5 ‘‘(I) is nationally recognized; 

6 ‘‘(II) satisfies any applicable ele7 ments of— 

8 ‘‘(aa) International Organi9 zation for Standardization stand10 ard numbered 17025; and 

11 ‘‘(bb) any other relevant 

12 International Organization for 

13 Standardization standards identi14 fied and agreed to through the 

15 negotiated rulemaking under 

16 clause (i); 

17 ‘‘(III) at least annually tests 

18 products following the test procedures 

19 established under this title to verify 

20 the certified rating of a representative 

21 sample of products and equipment 

22 within the scope of the program; 

23 ‘‘(IV) maintains a publicly avail24 able list of all certified products and 

25 equipment and their certified ratings; 


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1 ‘‘(V) requires the changing of the 

2 performance rating or removal of the 

3 product or equipment from the pro4 gram if testing determines that the 

5 performance rating does not meet the 

6 levels the manufacturer has certified 

7 to the Secretary; 

8 ‘‘(VI) requires the qualification 

9 of new participants in the program 

10 through testing and production of test 

11 reports; 

12 ‘‘(VII) allows for challenge test13 ing of products and equipment within 

14 the scope of the program; 

15 ‘‘(VIII) requires program partici16 pants to certify the performance rat17 ing of all covered products and equip18 ment within the scope of the program 

19 for the covered product or equipment; 

20 ‘‘(IX) provides to the Secretary— 

21 ‘‘(aa) an annual report of all 

22 test results, the contents of which 

23 shall be determined through the 

24 negotiated rulemaking process 

25 under clause (i); 


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1 ‘‘(bb) prompt notification 

2 when program testing results 

3 in— 

4 ‘‘(AA) the rerating of 

5 the performance rating of a 

6 product or equipment; or 

7 ‘‘(BB) the delisting of a 

8 product or equipment; and 

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

12 Protection Agency, that note any 

13 instructions specified by the man14 ufacturer or the representative of 

15 the manufacturer for the purpose 

16 of conducting the verification 

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

19 of title 5, United States Code 

20 (commonly known as the ‘Free21 dom of Information Act’); and 

22 ‘‘(X) satisfies any additional re23 quirements or standards that the Sec24 retary and Administrator of the Envi25 ronmental Protection Agency shall esVerDate Sep 11 2014 00:20 Sep 10, 2015 Jkt 049200 PO 00000 Frm 00134 Fmt 6652 Sfmt 6401 E:\BILLS\S720.RS S720

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1 tablish consistent with this subpara2 graph. 

3 ‘‘(iii) REVISION OF CRITERIA.— 

4 ‘‘(I) IN GENERAL.—The Sec5 retary and the Administrator of the 

6 Environmental Protection Agency may 

7 revise the criteria established under 

8 clause (ii) by initiating— 

9 ‘‘(aa) a notice of proposed 

10 rulemaking in accordance with 

11 section 553(b) of title 5, United 

12 States Code, on publication of a 

13 determination in the Federal 

14 Register that revisions to the cri15 teria are necessary; or 

16 ‘‘(bb) a direct final rule in 

17 accordance with section 

18 553(b)(3)(B) of title 5, United 

19 States Code, on publication of a 

20 determination in the Federal 

21 Register that revisions to the cri22 teria are necessary and that sub23 stantive opposition to the pro24 posed revisions is not expected. 


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1 ‘‘(II) EFFECT OF DIRECT FINAL

2 RULE.— 

3 ‘‘(aa) FULL FORCE AND EF4 FECT.—If the Secretary does not 

5 receive adversarial comments 

6 during the 30-day period fol7 lowing publication of the deter8 mination in the Federal Register 

9 under subclause (I)(bb), the di10 rect final rule shall have full 

11 force and effect. 

12 ‘‘(bb) WITHDRAWAL.—If the 

13 Secretary receives adversarial 

14 comments during the 30-day pe15 riod following publication of the 

16 determination in the Federal 

17 Register under subclause (I)(bb), 

18 the Secretary shall withdraw the 

19 direct final rule and publish a no20 tice of proposed rulemaking in 

21 accordance with subclause 

22 (I)(aa). 

23 ‘‘(C) ADMINISTRATION.— 


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1 ‘‘(i) IN GENERAL.—The Secretary and 

2 the Administrator of the Environmental 

3 Protection Agency shall not require— 

4 ‘‘(I) manufacturers to participate 

5 in a voluntary verification program 

6 described in subparagraph (A); or 

7 ‘‘(II) participating manufacturers 

8 to provide information that can be ob9 tained through a voluntary 

10 verification program described in sub11 paragraph (A). 

12 ‘‘(ii) LIST OF COVERED PRODUCTS.— 

13 The Secretary or the Administrator of the 

14 Environmental Protection Agency may 

15 maintain a publicly available list of covered 

16 products and equipment certified under 

17 this section that distinguishes between— 

18 ‘‘(I) covered products and equip19 ment certified by a voluntary 

20 verification program described in sub21 paragraph (A); and 

22 ‘‘(II) products not certified by a 

23 voluntary verification program de24 scribed in subparagraph (A). 


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1 ‘‘(iii) PERIODIC VERIFICATION TEST2 ING.—The Secretary— 

3 ‘‘(I) shall not subject products or 

4 equipment that are certified under a 

5 voluntary verification program de6 scribed in subparagraph (A) to peri7 odic verification testing that verifies 

8 the accuracy of the certified perform9 ance rating of the products or equip10 ment; but 

11 ‘‘(II) may test products or equip12 ment described in subclause (I) if the 

13 testing is necessary— 

14 ‘‘(aa) to assess the overall 

15 performance of a voluntary 

16 verification program; 

17 ‘‘(bb) to address specific 

18 performance issues; 

19 ‘‘(cc) to determine other per20 formance characteristics for use 

21 in updating test procedures and 

22 standards; or 

23 ‘‘(dd) for other purposes 

24 consistent with this title. 


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1 ‘‘(D) EFFECT ON OTHER AUTHORITY.— 

2 Nothing in this paragraph limits the authority 

3 of the Secretary or the Administrator of the 

4 Environmental Protection Agency to enforce 

5 compliance with any law.’’. 

6 SEC. 431. VOLUNTARY VERIFICATION PROGRAMS FOR AIR 

7 CONDITIONING, FURNACE, BOILER, HEAT 

8 PUMP, AND WATER HEATER PRODUCTS. 

9 Section 326(b) of the Energy Policy and Conservation 

10 Act (42 U.S.C. 6296(b)) is amended by adding at the end 

11 the following: 

12 ‘‘(6) VOLUNTARY VERIFICATION PROGRAMS FOR

13 AIR CONDITIONING, FURNACE, BOILER, HEAT PUMP, 

14 AND WATER HEATER PRODUCTS.— 

15 ‘‘(A) RELIANCE ON VOLUNTARY PRO16 GRAMS.—For the purpose of periodic testing to 

17 verify compliance with energy conservation 

18 standards and Energy Star specifications estab19 lished under sections 324A, 325, and 342 for cov20 ered products described in paragraphs (3), (4), 

21 (5), (9), and (11) of section 322(a) and covered 

22 equipment described in subparagraphs (B), (C), 

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

24 Secretary and the Administrator of the Environ25 mental Protection Agency shall rely on testing 


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1 conducted by voluntary verification programs 

2 that are recognized by the Secretary in accord3 ance with subparagraph (B). 

4 ‘‘(B) RECOGNITION OF VOLUNTARY

5 VERIFICATION PROGRAMS.— 

6 ‘‘(i) IN GENERAL.—Not later than 180 

7 days after the date of enactment of this 

8 paragraph, the Secretary shall initiate a 

9 negotiated rulemaking in accordance with 

10 subchapter III of chapter 5 of title 5, 

11 United States Code (commonly known as 

12 the ‘Negotiated Rulemaking Act of 1990’) to 

13 develop criteria that have consensus support 

14 for achieving recognition by the Secretary 

15 as an approved voluntary verification pro16 gram. 

17 ‘‘(ii) MINIMUM REQUIREMENTS.—The 

18 criteria developed under clause (i) shall, at 

19 a minimum, ensure that the voluntary 

20 verification program— 

21 ‘‘(I) is nationally recognized; 

22 ‘‘(II) is operated by a third party 

23 and not directly operated by a pro24 gram participant; 


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1 ‘‘(III) satisfies any applicable ele2 ments of— 

3 ‘‘(aa) International Organi4 zation for Standardization stand5 ard numbered 17025; and 

6 ‘‘(bb) any other relevant 

7 International Organization for 

8 Standardization standards identi9 fied and agreed to through the ne10 gotiated rulemaking under clause 

11 (i); 

12 ‘‘(IV) at least annually tests inde13 pendently obtained products following 

14 the test procedures established under 

15 this title to verify the certified rating 

16 of a representative sample of products 

17 and equipment within the scope of the 

18 program; 

19 ‘‘(V) maintains a publicly avail20 able list of all ratings of products sub21 ject to verification; 

22 ‘‘(VI) requires the changing of the 

23 performance rating or removal of the 

24 product or equipment from the pro25 gram if testing determines that the 


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1 performance rating does not meet the 

2 levels the manufacturer has certified to 

3 the Secretary; 

4 ‘‘(VII) requires new program par5 ticipants to substantiate ratings 

6 through test data generated in accord7 ance with DOE regulations; 

8 ‘‘(VIII) allows for challenge test9 ing of products and equipment within 

10 the scope of the program; 

11 ‘‘(IX) requires program partici12 pants to disclose the performance rat13 ing of all covered products and equip14 ment within the scope of the program 

15 for the covered product or equipment; 

16 ‘‘(X) provides to the Secretary— 

17 ‘‘(aa) an annual report of all 

18 test results, the contents of which 

19 shall be determined through the 

20 negotiated rulemaking process 

21 under clause (i); and 

22 ‘‘(bb) test reports, on the re23 quest of the Secretary or the Ad24 ministrator of the Environmental 

25 Protection Agency, that note any 


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1 instructions specified by the man2 ufacturer or the representative of 

3 the manufacturer for the purpose 

4 of conducting the verification test5 ing, to be exempted from disclo6 sure to the extent provided under 

7 section 552(b)(4) of title 5, United 

8 States Code (commonly known as 

9 the ‘Freedom of Information Act’); 

10 and 

11 ‘‘(XI) satisfies any additional re12 quirements or standards that the Sec13 retary and Administrator of the Envi14 ronmental Protection Agency shall es15 tablish consistent with this subpara16 graph. 

17 ‘‘(iii) FINDING REQUIRED FOR CES18 SATION OF RECOGNITION.—The Secretary 

19 may only cease recognition of a voluntary 

20 verification program as an approved pro21 gram described in subparagraph (A) on a 

22 finding that the program is not meeting its 

23 obligations for compliance through program 

24 review criteria established under this sub25 paragraph. 


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1 ‘‘(iv) REVISIONS.— 

2 ‘‘(I) IN GENERAL.—Major revi3 sions to voluntary verification pro4 gram criteria established under this 

5 subparagraph shall only be made pur6 suant to a subsequent negotiated rule7 making in accordance with subchapter 

8 III of chapter 5 of title 5, United 

9 States Code (commonly known as the 

10 ‘Negotiated Rulemaking Act of 1990’). 

11 ‘‘(II) NONMAJOR REVISIONS.— 

12 ‘‘(aa) IN GENERAL.—The 

13 Secretary may make all other 

14 nonmajor criteria revisions by 

15 initiating a direct final rule in 

16 accordance with section 

17 553(b)(3)(B) of title 5, United 

18 States Code, on a determination 

19 published in the Federal Register 

20 that revisions to the criteria are 

21 necessary and that substantive op22 position to the proposed revisions 

23 is not expected. 

24 ‘‘(bb) CONDITIONS FOR EF25 FECTIVENESS.—If the Secretary 


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1 does not receive adversarial com2 ments with respect to the deter3 mination published under item 

4 (aa) during the 30-day-period fol5 lowing publication of that deter6 mination in the Federal Register, 

7 the direct final rule shall have the 

8 force and effect of law. 

9 ‘‘(cc) WITHDRAWAL OF FINAL

10 RULE.—Receipt of any adver11 sarial comment with respect to the 

12 determination published under 

13 item (aa) shall require the Sec14 retary to withdraw the direct 

15 final rule and publish— 

16 ‘‘(AA) a notice of pro17 posed rulemaking pursuant 

18 to section 553 of title 5, 

19 United States Code; or 

20 ‘‘(BB) a notice of pro21 posed rulemaking pursuant 

22 to section 553 of title 5, 

23 United States Code, that in24 cludes a determination that 


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1 revisions to the criteria are 

2 necessary. 

3 ‘‘(C) ADMINISTRATION.— 

4 ‘‘(i) IN GENERAL.—The Secretary and 

5 the Administrator of the Environmental 

6 Protection Agency shall not require— 

7 ‘‘(I) manufacturers to participate 

8 in a voluntary verification program 

9 described in subparagraph (A); or 

10 ‘‘(II) participating manufacturers 

11 to provide information that has al12 ready been provided to the Secretary or 

13 the Administrator. 

14 ‘‘(ii) LIST OF COVERED PRODUCTS.— 

15 The Secretary or the Administrator of the 

16 Environmental Protection Agency may 

17 maintain a publicly available list of covered 

18 products and equipment that distinguishes 

19 between products that are, and are not cov20 ered products and equipment verified 

21 through a voluntary verification program 

22 described in subparagraph (A); 

23 ‘‘(iii) PERIODIC VERIFICATION TEST24 ING.— 


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1 ‘‘(I) IN GENERAL.—The Sec2 retary— 

3 ‘‘(aa) shall not subject prod4 ucts or equipment that have been 

5 verification tested under a vol6 untary verification program de7 scribed in subparagraph (A) to 

8 periodic verification testing that 

9 verifies the accuracy of the cer10 tified performance rating of the 

11 products or equipment; but 

12 ‘‘(bb) may test products or 

13 equipment described in subclause 

14 (I) if the testing is necessary— 

15 ‘‘(AA) to assess the over16 all performance of a vol17 untary verification program; 

18 ‘‘(BB) to address spe19 cific performance issues; 

20 ‘‘(CC) for use in updat21 ing test procedures and 

22 standards; or 

23 ‘‘(DD) for other pur24 poses consistent with this 

25 title. 


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1 ‘‘(II) ADDITIONAL TESTING.—The 

2 Secretary may subject products or 

3 equipment described in subclause (I) to 

4 periodic verification testing outside the 

5 restrictions of subclause (I)(bb), if 

6 agreed to during the rulemaking de7 scribed in subparagraph (B) 

8 ‘‘(D) EFFECT ON OTHER AUTHORITY.— 

9 Nothing in this paragraph limits the authority 

10 of the Secretary or the Administrator of the En11 vironmental Protection Agency to enforce com12 pliance with any law.’’. 

13 TITLE V—MISCELLANEOUS 

14 SEC. 501. BUDGETARY EFFECTS. 

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

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

17 shall be determined by reference to the latest statement 

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

19 Act, submitted for printing in the Congressional Record 

20 by the Chairman of the Senate Budget Committee, pro21 vided that such statement has been submitted prior to the 

22 vote on passage. 

23 SEC. 502. ADVANCE APPROPRIATIONS REQUIRED. 

24 The authorization of amounts under this Act and the 

25 amendments made by this Act shall be effective for any 


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

2 in advance in appropriations Acts. 


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Calendar No. 210 

114TH CONGRESS 

1ST SESSION S. 720 

[Report No. 114–130] 

A BILL 

To promote energy savings in residential buildings 

and industry, and for other purposes. 

SEPTEMBER 9, 2015 

Reported with amendments 


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