Federal Cost Reduction Act of 2013

To reduce Federal expenditures associated with data center real estate and electricity consumption, to implement savings reductions proposed by Federal employees, to reduce energy costs across Federal Executive agencies, and for other purposes. 1. Short title and table of contents (a) Short title This Act may be cited as the Federal Cost Reduction Act of 2013 (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title and table of contents. Sec. 2. Findings. Sec. 3. Definitions. Sec. 4. Reduction and consolidation of data centers. Sec. 5. GSA reports. Sec. 6. Reduction of printing. Sec. 7. Implementation of Federal employee cost savings proposals. Sec. 8. Power purchase agreement program. Sec. 9. Federal facility energy efficiency and renewable energy projects fund. Sec. 10. Incentives for Executive agencies for utility energy savings contracts. Sec. 11. Renewable energy facilities surveys by Executive agencies. Sec. 12. Adoption of personal computer power savings techniques by Executive agencies. Sec. 13. Federal energy management and data collection standard. Sec. 14. Advanced metering best practices for advanced metering. Sec. 15. Availability of funds for design updates. Sec. 16. Continuous commissioning within the Federal building stock. Sec. 17. Elimination of State matching requirement for energy efficiency upgrades at National Guard and reserve armories and readiness centers. 2. Findings Congress finds the following: (1) The number of Federal data centers has quintupled over the past decade from 400 to more than 2,000. (2) Data center consolidation, including data centers of the House of Representatives, has reduced electricity expenses and requisite real estate where it has been pursued. (3) Federal energy expenses exceed $24 billion annually, while most existing Federal facilities do not meet efficiency standards that are expected for new Federal construction. (4) Contract period limitations of 10 years for Federal Executive agencies limit deployment of domestic energy sources that could reduce long-term Federal energy expenses. (5) Energy saving performance contracts can offer low or zero cost options for improving energy efficiency in Federal facilities. (6) The Federal Government spends $1.3 billion annually on employee printing. (7) Federal employees estimate that they immediately recycle 35 percent of all paper printed, equating to $440.4 million in potential annual savings. (8) Only 9 percent of Federal Executive agencies have automatic duplex printing. (9) The Department of Veterans Affairs has developed an acquisition personnel training center to improve Federal employee productivity and reduce employee turnover. (10) Federal employees have proposed more than 18,000 ways to save taxpayer money through the Save Awards 3. Definitions In this Act: (1) Appropriate congressional committees The term appropriate congressional committees (A) the Committee on Oversight and Government Reform of the House of Representatives; and (B) the Committee on Homeland Security and Governmental Affairs of the Senate. (2) Energy savings performance contract The term energy savings performance contract (3) Federal data center The term Federal data center (A) means a room within a conventional building that is devoted to data processing servers, including server closets that are typically less than 200 square feet and server rooms that are typically less than 500 square feet; (B) means larger floor spaces or entire buildings dedicated to housing servers, storage devices, and network equipment; and (C) does not include any facilities that are exclusively devoted to communications and network equipment (such as telephone exchanges and telecommunications rooms and closets). (4) Executive agency Except as provided in section 8, the term Executive agency section 105 4. Reduction and consolidation of data centers (a) OMB recommendation Not later than 6 months after the date of the enactment of this Act, the Director of the Office of Management and Budget, in consultation with the Administrator of General Services and the heads of other Executive agencies, shall issue recommendations for reducing or consolidating the number of Federal data centers in existence as of the date of the enactment of this Act— (1) by at least 40 percent not later than September 30, 2018; and (2) by at least 80 percent not later than September 30, 2023. (b) Reduction of data centers Not later than 6 months after the issuance of recommendations by the Director of the Office of Management and Budget under subsection (a), the head of each Executive agency shall implement the recommendations by reducing the number of Federal data centers in accordance with such recommendations. 5. GSA reports (a) Report on reducing real estate costs and energy expenditures Not later than one year after the date of the enactment of this Act, the Administrator of General Services shall submit to the appropriate congressional committees a report on the following: (1) Recommendations to reduce long-term real estate costs through consolidating or eliminating leased space and any additional authority that might be necessary to replace leased space with owned space if the payback period is 15 years or fewer. (2) A description of a plan by the General Services Administration to use energy saving performance contracts and other low-capital investments to reduce energy expenditures. (b) Report and plan To reduce Federal automobile parking expenses (1) Initial report Not later than 6 months after the date of the enactment of this Act, the Administrator of General Services shall submit to the Congress a report on the annual expense for each of fiscal years 2002 through 2012 for Federal employee parking, including— (A) parking spaces and parking facilities that are leased or owned by the Federal Government; (B) maintenance and construction costs for such spaces and facilities; and (C) the total construction costs for parking facilities that are used by Federal employees for fiscal years 2002 through 2012. (2) Plan to reduce parking expenses Not later than one year after the date of the enactment of this Act, the General Services Administration shall submit a report to Congress that includes a plan, using existing agency authorities, to reduce the expense for Federal employee parking by at least five percent annually for each of the next 5 fiscal years after date of enactment of this Act. 6. Reduction of printing Not later than 6 months after the date of the enactment of this Act, each Executive agency shall establish a plan to reduce by 35 percent the volume of material printed during fiscal year 2013 for each of fiscal years 2014 through 2024, including a requirement for duplex printing as the default setting on all Federal printers and copiers, where applicable, and shall submit such plan to the Office of the Environmental Executive. 7. Implementation of Federal employee cost savings proposals Not later than 12 months after the date of the enactment of this Act, the Director of the Office of Personnel Management shall submit to the appropriate congressional committees a plan to implement Federal employee cost savings proposals. 8. Power purchase agreement program (a) Definitions In this section: (1) Cost-effective The term cost-effective (A) applicable cost, including any cost resulting from— (i) a demand charge; (ii) an applicable rider; (iii) a fuel adjustment charge; or (iv) any other surcharge; and (B) reasonably anticipated increase in the cost of the electricity resulting from— (i) inflation; (ii) increased regulatory requirements; (iii) decreased availability of fossil fuels; and (iv) any other factor that may increase the cost of electricity. (2) Executive agency The term Executive agency section 133 (3) Federal facility The term Federal facility facility 42 U.S.C. 8253(f)(1)(C) (4) Government corporation The term Government corporation section 103 (5) Renewable energy source The term renewable energy source 42 U.S.C. 8259 (b) Power purchase agreement projects (1) Authorization of heads of executive agencies In accordance with paragraphs (2) and (3), the head of each Executive agency or a designee may establish 1 or more projects under which the head of the Executive agency may offer to enter into power purchase agreements during the 10-year period beginning on the date of enactment of this Act for the purchase of electricity from 1 or more Federal facilities that are owned or controlled by the Executive agency from renewable energy sources located at the Federal facility. (2) Cost-effective requirement A head of an Executive agency described in paragraph (1) may offer to enter into a power purchase agreement described in that paragraph only if the power purchase agreement is cost-effective. (3) Term of power purchase agreement Notwithstanding any other provision of law (including regulations), the term of a power purchase agreement described in paragraph (1) may not be longer than a period of 30 years. (4) Allocation of incremental costs Each head of an Executive agency (including the Administrator of General Services) who enters into a power purchase agreement under paragraph (1) for the purchase of electricity at a Federal facility that is owned or controlled by the Executive agency for distribution to 1 or more other Executive agencies shall allocate, on an annual basis for the period covered by the power purchase agreement, the incremental cost or incremental savings of the power purchase agreement for the purchase of electricity at a Federal facility from renewable energy sources (as compared to the cost of electricity from the electricity supplier of the Federal facility) among each user of the Federal facility based on the proportion that— (A) the electricity usage of the user of the Federal facility; bears to (B) the aggregate electricity usage of all users of the Federal facility. (c) Power purchase agreements with multiple Federal facilities An Executive agency may enter into an interagency agreement as part of a power purchase agreement that involves more than 1 Federal facility. (d) Negotiated rate as basis for determining cost effectiveness of future energy efficiency or renewable energy projects An Executive agency that enters into a power purchase agreement may not use the negotiated rate as a basis for determining the business case or economic feasibility of future energy efficiency or renewable energy projects. (e) Regulations The Secretary of Energy shall promulgate such regulations as are necessary to carry out this section. (f) Authorization of appropriations There are authorized to be appropriated to carry out this section such sums as are necessary for each of fiscal years 2014 through 2017, to remain available until expended. 9. Federal facility energy efficiency and renewable energy projects fund (a) Establishment There is established in the Treasury of the United States a revolving fund, to be known as the Federal Facility Energy Efficiency and Renewable Energy Projects Fund Fund (b) Transfers to fund (1) Authorization of appropriations There are authorized to be appropriated to the Fund $500,000,000, to remain available until expended. (2) Loan repayments There are appropriated to the Fund, out of funds of the Treasury not otherwise appropriated, amounts equivalent to loan amounts repaid and received in the Treasury under subsection (e). (c) Expenditures from fund (1) In general Subject to paragraph (2), on request by the Secretary of Energy (referred to in this section as the Secretary (2) Administrative expenses An amount not exceeding 10 percent of the amounts in the Fund shall be available for each fiscal year to pay the administrative expenses necessary to carry out this section. (d) Transfers of amounts (1) In general The amounts required to be transferred to the Fund under this section shall be transferred at least monthly from the general fund of the Treasury to the Fund on the basis of estimates made by the Secretary of the Treasury. (2) Adjustments Proper adjustment shall be made in amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred. (e) Federal facility energy efficiency and renewable energy projects fund program (1) In general The Secretary shall establish a Federal facility energy efficiency and renewable energy projects fund program under which the Secretary shall make loans to Executive agencies to assist the agencies in reducing energy use and related purposes, as determined by the Secretary. (2) Guidelines for applications Not later than 180 days after the date of enactment of this Act, the Secretary shall issue guidelines for Executive agencies to submit applications for loans under this subsection. (3) Eligibility Each Executive agency shall be eligible to submit an application for a loan under this subsection. (4) Loan awards (A) In general The Secretary shall award loans under this subsection on a competitive basis. (B) Allocation The Secretary shall convene a committee of Executive agencies to determine allocation from the Fund to carry out this subsection after a competitive assessment of the technical and economic effectiveness of each application for a loan under this subsection. (C) Selection In determining whether to provide a loan to an Executive agency for a project under this subsection, the Secretary shall consider— (i) the cost-effectiveness of the project; (ii) the amount of energy and cost savings anticipated to the Federal Government; (iii) the amount of funding committed to the project by the agency; (iv) the extent that a project will leverage financing from other non-Federal sources; and (v) any other factor that the Secretary determines will result in the greatest amount of energy and cost savings to the Federal Government. 10. Incentives for Executive agencies for utility energy savings contracts Not later than 180 days after the date of enactment of this Act, the Secretary of Energy, in consultation with the Secretary of Defense and the Administrator of General Services, shall promulgate regulations that enable Executive agencies to retain the financial savings that result from entering into utility energy savings contracts. 11. Renewable energy facilities surveys by Executive agencies (a) In general Not later than 180 days after the date of enactment of this Act, the Secretary of Energy, in consultation with the Secretary of Defense and the Administrator of General Services, shall promulgate regulations that establish appropriate methods and procedures for use by Executive agencies to implement, unless inconsistent with the mission of the Executive agencies or impracticable due to environmental constraints, the identification of all potential locations at Federal facilities of the agencies for renewable energy projects (including available land, building roofs, and parking structures). (b) Identification of potential locations Not later than 1 year after the date of the promulgation of regulations under subsection (a), each Executive agency shall complete the report of the agency that identifies potential locations described in subsection (a). 12. Adoption of personal computer power savings techniques by Executive agencies (a) In general Not later than 180 days after the date of enactment of this Act, the Secretary of Energy, in consultation with the Secretary of Defense, the Secretary of Veterans Affairs, and the Administrator of General Services, shall issue guidance for Executive agencies to employ advanced tools allowing energy savings through the use of computer hardware, energy efficiency software, and power management tools. (b) Reports on plans and savings Not later than 90 days after the date of the issuance of the guidance under subsection (a), each Executive agency shall submit to the Secretary of Energy a report that describes— (1) the plan of the agency for implementing the guidance within the agency; and (2) estimated energy and financial savings from employing the tools described in subsection (a). 13. Federal energy management and data collection standard (a) In general Not later than 1 year after the date of enactment of this Act, the Secretary of Energy, in consultation with the Secretary of Defense, the Administrator of General Services, the Office of Science and Technology Policy, and relevant industry and nonprofit groups, shall develop and issue guidance on a Federal energy management and data collection standard. (b) Requirements Guidance described in subsection (a) shall include, at a minimum, a plan for the General Services Administration to publish energy consumption data for individual Federal facilities on a single, searchable website, accessible by the public at no cost to access. 14. Advanced metering best practices for advanced metering Section 543(e) of the National Energy Conservation Policy Act ( 42 U.S.C. 8253(e) (3) Plan (A) In general Not later than 180 days after the date on which guidelines are established under paragraph (2), in a report submitted by the agency under section 548(a), each agency shall submit to the Secretary a plan describing the manner in which the agency will implement the requirements of paragraph (1), including— (i) how the agency will designate personnel primarily responsible for achieving the requirements; and (ii) a demonstration by the agency, complete with documentation, of any finding that advanced meters or advanced metering devices (as those terms are used in paragraph (1)), are not practicable. (B) Updates Reports submitted under subparagraph (A) shall be updated annually. (4) Best practices report (A) In general Not later than 180 days after the date of enactment of the Federal Cost Reduction Act of 2013 (B) Updating The report described under subparagraph (A) shall be updated annually. (C) Components The report shall include, at a minimum— (i) summaries and analysis of the reports by agencies under paragraph (3); (ii) recommendations on standard requirements or guidelines for automated energy management systems, including— (I) potential common communications standards to allow data sharing and reporting; (II) means of facilitating continuous commissioning of buildings and evidence-based maintenance of buildings and building systems; and (III) standards for sufficient levels of security and protection against cyber threats to ensure systems cannot be controlled by unauthorized persons; and (iii) an analysis of— (I) the types of advanced metering and monitoring systems being piloted, tested, or installed in Federal buildings; and (II) existing techniques used within the private sector or other non-Federal government buildings. . 15. Availability of funds for design updates Section 3307 (1) by redesignating subsections (d) through (h) as subsections (e) through (i); and (2) by inserting after subsection (c) the following: (d) Availability of funds for design updates (1) In general Subject to paragraph (2), for any project for which congressional approval is received under subsection (a) and for which the design has been substantially completed but construction has not begun, the Administrator of General Services may use appropriated funds to update the project design to meet applicable Federal building energy efficiency standards established under section 305 of the Energy Conservation and Production Act ( 42 U.S.C. 6834 (2) Limitation The use of funds under paragraph (1) shall not exceed 125 percent of the estimated energy or other cost savings associated with the updates as determined by a life-cycle cost analysis under section 544 of the National Energy Conservation Policy Act ( 42 U.S.C. 8254 . 16. Continuous commissioning within the Federal building stock (a) In general Section 3312 (1) by redesignating subsections (c) through (g) as subsections (d) through (h), respectively; and (2) by inserting after subsection (b) the following: (c) Continuous commissioning within the Federal building stock (1) In general Not later than 1 year after the date of enactment of the Federal Cost Reduction Act of 2013 42 U.S.C. 8253(f) (A) is more than $10,000,000 in value; (B) has more than 50,000 square feet; or (C) has energy intensity of more than $2 per square foot. (2) Regulations Not later than 180 days after the date of enactment of the Federal Cost Reduction Act of 2013 . (b) Conforming amendments Section 3312 (1) in subsection (e)(1) (as redesignated by subsection (a)(1)), by striking and (c) and (d) (2) in the first sentence of subsection (f) (as so redesignated), by striking and (c) and (d) (3) in subsection (g) (as so redesignated), by striking subsection (b), (c), or (d) or for failure to carry out any recommendation under subsection (e) subsection (b), (d), or (e) or for failure to carry out any recommendation under subsection (f) 17. Elimination of State matching requirement for energy efficiency upgrades at National Guard and reserve armories and readiness centers Section 18236(b) (1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively; (2) by striking A contribution (1) Subject to paragraph (2), a contribution (3) by striking For the purpose (3) For the purpose (4) by inserting after subparagraph (B) of paragraph (1), as so designated, the following new paragraph: (2) If an armory or readiness center project for which a contribution is made under paragraph (4) or (5) of section 18233(a) of this title consists of or includes an energy efficiency upgrade, the Secretary of Defense shall cover— (A) 100 percent of the cost of architectural, engineering, and design services related to the upgrade (including advance architectural, engineering, and design services under section 18233(e) of this title), as provided in subparagraph (A) of paragraph (1); and (B) 100 percent of the cost of construction related to the upgrade, notwithstanding subparagraph (B) of paragraph (1), and payment of such cost shall not be considered in applying the limitation in such subparagraph. .

Summary: Federal Cost Reduction Act of 2013 - Requires: (1) the Director of the Office of Management and Budget (OMB) to issue recommendations for reducing or consolidating the number of federal data centers by at least 40% by the end of FY2018 and by at least 80% by the end of FY2023, and (2) executive agency heads to implement such recommendations within six months after their issuance. Requires the Administrator of General Services (GSA) to report on: (1) recommendations to reduce long-term real estate costs and energy expenditures; and (2) federal employee parking expenses, with a plan to reduce such expenses. Requires executive agency heads to establish a plan to reduce the volume of material printed for FY2014-FY2024 and to require duplex printing on all federal printers and copiers. Requires the Director of the Office of Personnel Management (OPM) to submit a plan to implement federal employee cost savings proposals. Authorizes executive agency heads to enter into cost-effective power purchase agreements for the purchase of electricity from federally-owned or controlled renewable energy sources. Establishes in the Treasury the Federal Facility Energy Efficiency and Renewable Energy Projects Fund to provide assistance for energy efficiency and renewable energy projects carried out at federal facilities to reduce energy use. Requires the Secretary of Energy (DOE) to: (1) establish a federal facility energy efficiency and renewable energy projects fund program to make loans to assist agencies in reducing energy use; (2) promulgate regulations to enable agencies to retain the financial savings from entering into utility energy saving contracts; (3) promulgate regulations to enable agencies to identify all potential locations for renewable energy projects; (4) issue guidance for agencies to achieve energy savings by using computer hardware, energy efficiency software, and power management tools; and (5) issue guidance on a federal energy management and data collection standard that includes a plan for GSA to publish energy consumption data for individual facilities on a searchable and free website accessible by the public. Requires federal agencies to submit a plan to the Secretary on metering their consumption of electricity. Requires the Secretary to develop and report on best practices for the use of advanced metering of energy use in federal facilities, buildings, and equipment. Authorizes the GSA Administrator to use appropriated funds to update project designs to meet federal building energy efficiency standards. Requires the Administrator and the Secretary to incorporate commissioning and recommissioning standards for all real property that: (1) is more than $10 million in value, (2) has more than 50,000 square feet, or (3) has energy intensity of more than $2 per square foot. Requires that a contribution by the Secretary of Defense (DOD) to a state for facilities for reserve components of the Armed Forces, which is made at an armory or readiness center for an energy efficiency upgrade, cover 100% of the costs of architectural, engineering, and design services and the cost of the construction related to the upgrade.