102 
‘‘(aa) the buildings be de-
signed to achieve energy con-
sumption levels that are at least 
30 percent below the levels estab-
lished in the version of the 
ASHRAE Standard or the Inter-
national 
Energy 
Conservation 
Code, as appropriate, that is ap-
plied under subclause (I)(aa), in-
cluding updates under subpara-
graph (B); and 
‘‘(bb) 
sustainable 
design 
principles are applied to the loca-
tion, siting, design, and construc-
tion of all new Federal buildings 
and replacement Federal build-
ings; 
‘‘(III) if water is used to achieve 
energy efficiency, water conservation 
technologies shall be applied to the ex-
tent that the technologies are life- 
cycle cost effective; and 
‘‘(IV) if life-cycle cost effective, 
as compared to other reasonably avail-
able technologies, not less than 30 
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percent of the hot water demand for 
each new Federal building or Federal 
building undergoing a major renova-
tion be met through the installation 
and use of solar hot water heaters. 
‘‘(ii) LIMITATION.—Clause (i)(I) shall 
not apply to unaltered portions of existing 
Federal buildings and systems that have 
been added to or altered. 
‘‘(B) UPDATES.—Not later than 1 year 
after the date of approval of each subsequent 
revision of the ASHRAE Standard or the Inter-
national Energy Conservation Code, as appro-
priate, the Secretary shall determine whether 
the revised standards established under sub-
paragraph (A) should be updated to reflect the 
revisions, based on the energy savings and life- 
cycle cost-effectiveness of the revisions.’’; 
(B) in subparagraph (C), by striking ‘‘(C) 
In the budget request’’ and inserting the fol-
lowing: 
‘‘(C) BUDGET
REQUEST.—In the budget 
request’’; and 
(C) by striking subparagraph (D) and in-
serting the following: 
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‘‘(D) CERTIFICATION FOR GREEN BUILD-
INGS.— 
‘‘(i) 
SUSTAINABLE
DESIGN
PRIN-
CIPLES.—Sustainable 
design 
principles 
shall be applied to the siting, design, and 
construction of buildings covered by this 
subparagraph. 
‘‘(ii) SELECTION
OF
CERTIFICATION 
SYSTEMS.—The Secretary, after reviewing 
the findings of the Federal Director under 
section 436(h) of the Energy Independence 
and Security Act of 2007 (42 U.S.C. 
17092(h)), in consultation with the Admin-
istrator of General Services, and in con-
sultation with the Secretary of Defense re-
lating to those facilities under the custody 
and control of the Department of Defense, 
shall determine those certification systems 
for green commercial and residential build-
ings that the Secretary determines to be 
the most likely to encourage a comprehen-
sive and environmentally sound approach 
to certification of green buildings. 
‘‘(iii) BASIS
FOR
SELECTION.—The 
determination of the certification systems 
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under clause (ii) shall be based on ongoing 
review of the findings of the Federal Direc-
tor under section 436(h) of the Energy 
Independence and Security Act of 2007 
(42 U.S.C. 17092(h)) and the criteria de-
scribed in clause (v). 
‘‘(iv) 
ADMINISTRATION.—In 
deter-
mining certification systems under this 
subparagraph, the Secretary shall— 
‘‘(I) make a separate determina-
tion for all or part of each system; 
‘‘(II) confirm that the criteria 
used to support the selection of build-
ing products, materials, brands, and 
technologies are fair and neutral 
(meaning that such criteria are based 
on an objective assessment of relevant 
technical data), do not prohibit, dis-
favor, or discriminate against selec-
tion based on technically inadequate 
information to inform human or envi-
ronmental risk, and are expressed to 
prefer performance measures when-
ever performance measures may rea-
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sonably be used in lieu of prescriptive 
measures; and 
‘‘(III) use environmental and 
health criteria that are based on risk 
assessment methodology that is gen-
erally accepted by the applicable sci-
entific disciplines. 
‘‘(v) 
CONSIDERATIONS.—In 
deter-
mining the green building certification sys-
tems under this subparagraph, the Sec-
retary shall take into consideration— 
‘‘(I) the ability and availability of 
assessors and auditors to independ-
ently verify the criteria and measure-
ment of metrics at the scale necessary 
to implement this subparagraph; 
‘‘(II) the ability of the applicable 
certification organization to collect 
and reflect public comment; 
‘‘(III) the ability of the standard 
to be developed and revised through a 
consensus-based process; 
‘‘(IV) 
an 
evaluation 
of 
the 
robustness of the criteria for a high- 
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performance green building, which 
shall give credit for promoting— 
‘‘(aa) efficient and sustain-
able use of water, energy, and 
other natural resources; 
‘‘(bb) use of renewable en-
ergy sources; 
‘‘(cc) improved indoor envi-
ronmental quality through en-
hanced indoor air quality, ther-
mal comfort, acoustics, day light-
ing, pollutant source control, and 
use of low-emission materials and 
building system controls; and 
‘‘(dd) such other criteria as 
the Secretary determines to be 
appropriate; and 
‘‘(V) national recognition within 
the building industry. 
‘‘(vi) REVIEW.—The Secretary, in 
consultation with the Administrator of 
General Services and the Secretary of De-
fense, shall conduct an ongoing review to 
evaluate and compare private sector green 
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109 
‘‘(cc) exclude all other por-
tions of the system from identi-
fication and use. 
‘‘(II) 
ENTIRE
SYSTEMS.—The 
Secretary shall exclude an entire sys-
tem from use if an exclusion under 
subclause (I)— 
‘‘(aa) impedes the integrated 
use of the system; 
‘‘(bb) creates disparate re-
view criteria or unequal point ac-
cess for competing materials; or 
‘‘(cc) increases agency costs 
of the use. 
‘‘(viii) 
INTERNAL
CERTIFICATION 
PROCESSES.—The Secretary may by rule 
allow Federal agencies to develop internal 
certification processes, using certified pro-
fessionals, in lieu of certification by certifi-
cation entities identified under clause (ii). 
‘‘(ix) PRIVATIZED
MILITARY
HOUS-
ING.—With respect to privatized military 
housing, the Secretary of Defense, after 
consultation with the Secretary may, 
through rulemaking, develop alternative 
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certification systems and levels than the 
systems and levels identified under clause 
(ii) that achieve an equivalent result in 
terms of energy savings, sustainable de-
sign, and green building performance. 
‘‘(x) WATER
CONSERVATION
TECH-
NOLOGIES.—In addition to any use of 
water conservation technologies otherwise 
required by this section, water conservation 
technologies shall be applied to the extent 
that the technologies are life-cycle cost-ef-
fective. 
‘‘(xi) EFFECTIVE DATE.— 
‘‘(I) 
DETERMINATIONS
MADE 
AFTER
DECEMBER
31, 
2015.—The 
amendments 
made 
by 
section 
432(b)(1)(C) of Energy Savings and 
Industrial Competitiveness Act of 
2015 shall apply to any determination 
made by a Federal agency after De-
cember 31, 2015. 
‘‘(II) DETERMINATIONS MADE ON 
OR
BEFORE
DECEMBER
31, 2015.— 
This subparagraph (as in effect on the 
day before the date of enactment of 
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111 
Energy Savings and Industrial Com-
petitiveness Act of 2015) shall apply 
to any use of a certification system 
for green commercial and residential 
buildings by a Federal agency on or 
before December 31, 2015.’’; and 
(2) by striking subsections (c) and (d) and in-
serting the following: 
‘‘(c) PERIODIC REVIEW.—The Secretary shall— 
‘‘(1) once every 5 years, review the Federal 
building energy standards established under this sec-
tion; and 
‘‘(2) on completion of a review under paragraph 
(1), if the Secretary determines that significant en-
ergy savings would result, upgrade the standards to 
include all new energy efficiency and renewable en-
ergy measures that are technologically feasible and 
economically justified.’’. 
SEC. 
433. 
ENHANCED 
ENERGY 
EFFICIENCY 
UNDER-
WRITING. 
(a) DEFINITIONS.—In this section: 
(1) COVERED
AGENCY.—The term ‘‘covered 
agency’’— 
(A) means— 
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(i) an executive agency, as that term 
is defined in section 102 of title 31, United 
States Code; and 
(ii) any other agency of the Federal 
Government; and 
(B) includes any enterprise, as that term is 
defined under section 1303 of the Federal 
Housing Enterprises Financial Safety and 
Soundness Act of 1992 (12 U.S.C. 4502). 
(2) COVERED LOAN.—The term ‘‘covered loan’’ 
means a loan secured by a home that is issued, in-
sured, purchased, or securitized by a covered agency. 
(3) HOMEOWNER.—The term ‘‘homeowner’’ 
means the mortgagor under a covered loan. 
(4) 
MORTGAGEE.—The 
term 
‘‘mortgagee’’ 
means— 
(A) an original lender under a covered loan 
or the holder of a covered loan at the time at 
which that mortgage transaction is con-
summated; 
(B) any affiliate, agent, subsidiary, suc-
cessor, or assignee of an original lender under 
a covered loan or the holder of a covered loan 
at the time at which that mortgage transaction 
is consummated; 
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(C) any servicer of a covered loan; and 
(D) any subsequent purchaser, trustee, or 
transferee of any covered loan issued by an 
original lender. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
(6) SERVICER.—The term ‘‘servicer’’ means the 
person or entity responsible for the servicing of a 
covered loan, including the person or entity who 
makes or holds a covered loan if that person or enti-
ty also services the covered loan. 
(7) SERVICING.—The term ‘‘servicing’’ has the 
meaning given the term in section 6(i) of the Real 
Estate Settlement Procedures Act of 1974 (12 
U.S.C. 2605(i)). 
(b) FINDINGS AND PURPOSES.— 
(1) FINDINGS.—Congress finds that— 
(A) energy costs for homeowners are a sig-
nificant and increasing portion of their house-
hold budgets; 
(B) household energy use can vary sub-
stantially depending on the efficiency and char-
acteristics of the house; 
(C) expected energy cost savings are im-
portant to the value of the house; 
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(D) the current test for loan affordability 
used by most covered agencies, commonly 
known as the ‘‘debt-to-income’’ test, is inad-
equate because it does not take into account the 
expected energy cost savings for the homeowner 
of an energy efficient home; and 
(E) another loan limitation, commonly 
known as the ‘‘loan-to-value’’ test, is tied to the 
appraisal, which often does not adjust for effi-
ciency features of houses. 
(2) PURPOSES.—The purposes of this section 
are to— 
(A) improve the accuracy of mortgage un-
derwriting by Federal mortgage agencies by en-
suring that energy cost savings are included in 
the underwriting process as described below, 
and thus to reduce the amount of energy con-
sumed by homes and to facilitate the creation 
of energy efficiency retrofit and construction 
jobs; 
(B) require a covered agency to include the 
expected energy cost savings of a homeowner as 
a regular expense in the tests, such as the debt- 
to-income test, used to determine the ability of 
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115 
the loan applicant to afford the cost of home-
ownership for all loan programs; and 
(C) require a covered agency to include the 
value home buyers place on the energy effi-
ciency of a house in tests used to compare the 
mortgage amount to home value, taking pre-
cautions to avoid double-counting and to sup-
port safe and sound lending. 
(c) ENHANCED
ENERGY
EFFICIENCY
UNDER-
WRITING CRITERIA.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the Secretary 
shall, in consultation with the advisory group estab-
lished in subsection (f)(2), develop and issue guide-
lines for a covered agency to implement enhanced 
loan eligibility requirements, for use when testing 
the ability of a loan applicant to repay a covered 
loan, that account for the expected energy cost sav-
ings for a loan applicant at a subject property, in 
the manner set forth in paragraphs (2) and (3). 
(2) REQUIREMENTS TO ACCOUNT FOR ENERGY 
COST
SAVINGS.—The enhanced loan eligibility re-
quirements under paragraph (1) shall require that, 
for all covered loans for which an energy efficiency 
report is voluntarily provided to the mortgagee by 
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the mortgagor, the covered agency and the mort-
gagee shall take into consideration the estimated en-
ergy cost savings expected for the owner of the sub-
ject property in determining whether the loan appli-
cant has sufficient income to service the mortgage 
debt plus other regular expenses. To the extent that 
a covered agency uses a test such as a debt-to-in-
come test that includes certain regular expenses, 
such as hazard insurance and property taxes, the ex-
pected energy cost savings shall be included as an 
offset to these expenses. Energy costs to be assessed 
include the cost of electricity, natural gas, oil, and 
any other fuel regularly used to supply energy to the 
subject property. 
(3) DETERMINATION
OF
ESTIMATED
ENERGY 
COST SAVINGS.— 
(A) IN
GENERAL.—The guidelines to be 
issued under paragraph (1) shall include in-
structions for the covered agency to calculate 
estimated energy cost savings using— 
(i) the energy efficiency report; 
(ii) an estimate of baseline average 
energy costs; and 
(iii) additional sources of information 
as determined by the Secretary. 
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(B) REPORT
REQUIREMENTS.—For the 
purposes of subparagraph (A), an energy effi-
ciency report shall— 
(i) estimate the expected energy cost 
savings specific to the subject property, 
based on specific information about the 
property; 
(ii) be prepared in accordance with 
the guidelines to be issued under para-
graph (1); and 
(iii) be prepared— 
(I) in accordance with the Resi-
dential Energy Service Network’s 
Home Energy Rating System (com-
monly known as ‘‘HERS’’) by an indi-
vidual certified by the Residential En-
ergy Service Network, unless the Sec-
retary finds that the use of HERS 
does not further the purposes of this 
section; or 
(II) by other methods approved 
by the Secretary, in consultation with 
the Secretary of Energy and the advi-
sory group established in subsection 
(f)(2), for use under this section, 
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which shall include a third-party qual-
ity assurance procedure. 
(C) USE BY APPRAISER.—If an energy ef-
ficiency report is used under paragraph (2), the 
energy efficiency report shall be provided to the 
appraiser to estimate the energy efficiency of 
the subject property and for potential adjust-
ments for energy efficiency. 
(4) REQUIRED DISCLOSURE TO CONSUMER FOR 
A HOME WITH AN ENERGY EFFICIENCY REPORT.— 
If an energy efficiency report is used under para-
graph (2), the guidelines to be issued under para-
graph (1) shall require the mortgagee to— 
(A) inform the loan applicant of the ex-
pected energy costs as estimated in the energy 
efficiency report, in a manner and at a time as 
prescribed by the Secretary, and if practicable, 
in the documents delivered at the time of loan 
application; and 
(B) include the energy efficiency report in 
the documentation for the loan provided to the 
borrower. 
(5) REQUIRED DISCLOSURE TO CONSUMER FOR 
A
HOME
WITHOUT
AN
ENERGY
EFFICIENCY
RE-
PORT.—If an energy efficiency report is not used 
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under paragraph (2), the guidelines to be issued 
under paragraph (1) shall require the mortgagee to 
inform the loan applicant in a manner and at a time 
as prescribed by the Secretary, and if practicable, in 
the documents delivered at the time of loan applica-
tion of— 
(A) typical energy cost savings that would 
be possible from a cost-effective energy upgrade 
of a home of the size and in the region of the 
subject property; 
(B) the impact the typical energy cost sav-
ings would have on monthly ownership costs of 
a typical home; 
(C) the impact on the size of a mortgage 
that could be obtained if the typical energy cost 
savings were reflected in an energy efficiency 
report; and 
(D) resources for improving the energy ef-
ficiency of a home. 
(6) PRICING OF LOANS.— 
(A) IN GENERAL.—A covered agency may 
price covered loans originated under the en-
hanced loan eligibility requirements required 
under this section in accordance with the esti-
mated risk of the loans. 
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(B) IMPOSITION
OF
CERTAIN
MATERIAL 
COSTS, IMPEDIMENTS, OR PENALTIES.—In the 
absence of a publicly disclosed analysis that 
demonstrates significant additional default risk 
or prepayment risk associated with the loans, a 
covered agency shall not impose material costs, 
impediments, or penalties on covered loans 
merely because the loan uses an energy effi-
ciency report or the enhanced loan eligibility re-
quirements required under this section. 
(7) LIMITATIONS.— 
(A) IN GENERAL.—A covered agency may 
price covered loans originated under the en-
hanced loan eligibility requirements required 
under this section in accordance with the esti-
mated risk of those loans. 
(B) PROHIBITED
ACTIONS.—A covered 
agency shall not— 
(i) modify existing underwriting cri-
teria or adopt new underwriting criteria 
that intentionally negate or reduce the im-
pact of the requirements or resulting bene-
fits that are set forth or otherwise derived 
from the enhanced loan eligibility require-
ments required under this subsection; or 
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(ii) impose greater buy back require-
ments, credit overlays, or insurance re-
quirements, including private mortgage in-
surance, on covered loans merely because 
the loan uses an energy efficiency report or 
the enhanced loan eligibility requirements 
required under this subsection. 
(8) 
APPLICABILITY
AND
IMPLEMENTATION 
DATE.—Not later than 3 years after the date of en-
actment of this Act, and before December 31, 2017, 
the enhanced loan eligibility requirements required 
under this subsection shall be implemented by each 
covered agency to— 
(A) apply to any covered loan for the sale, 
or refinancing of any loan for the sale, of any 
home; 
(B) be available on any residential real 
property (including individual units of con-
dominiums and cooperatives) that qualifies for 
a covered loan; and 
(C) provide prospective mortgagees with 
sufficient guidance and applicable tools to im-
plement the required underwriting methods. 
(d) ENHANCED
ENERGY
EFFICIENCY
UNDER-
WRITING VALUATION GUIDELINES.— 
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(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the Secretary 
shall— 
(A) in consultation with the Federal Fi-
nancial Institutions Examination Council and 
the advisory group established in subsection 
(f)(2), develop and issue guidelines for a cov-
ered agency to determine the maximum per-
mitted loan amount based on the value of the 
property for all covered loans made on prop-
erties with an energy efficiency report that 
meets the requirements of subsection (c)(3)(B); 
and 
(B) in consultation with the Secretary of 
Energy, issue guidelines for a covered agency to 
determine the estimated energy savings under 
paragraph (3) for properties with an energy ef-
ficiency report. 
(2) REQUIREMENTS.—The enhanced energy ef-
ficiency underwriting valuation guidelines required 
under paragraph (1) shall include— 
(A) a requirement that if an energy effi-
ciency report that meets the requirements of 
subsection (c)(3)(B) is voluntarily provided to 
the mortgagee, such report shall be used by the 
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mortgagee or covered agency to determine the 
estimated energy savings of the subject prop-
erty; and 
(B) a requirement that the estimated en-
ergy savings of the subject property be added to 
the appraised value of the subject property by 
a mortgagee or covered agency for the purpose 
of determining the loan-to-value ratio of the 
subject property, unless the appraisal includes 
the value of the overall energy efficiency of the 
subject property, using methods to be estab-
lished under the guidelines issued under para-
graph (1). 
(3) DETERMINATION
OF
ESTIMATED
ENERGY 
SAVINGS.— 
(A) AMOUNT OF ENERGY SAVINGS.—The 
amount of estimated energy savings shall be de-
termined by calculating the difference between 
the estimated energy costs for the average com-
parable houses, as determined in guidelines to 
be issued under paragraph (1), and the esti-
mated energy costs for the subject property 
based upon the energy efficiency report. 
(B) DURATION OF ENERGY SAVINGS.—The 
duration of the estimated energy savings shall 
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be based upon the estimated life of the applica-
ble equipment, consistent with the rating sys-
tem used to produce the energy efficiency re-
port. 
(C) PRESENT
VALUE
OF
ENERGY
SAV-
INGS.—The present value of the future savings 
shall be discounted using the average interest 
rate on conventional 30-year mortgages, in the 
manner directed by guidelines issued under 
paragraph (1). 
(4) ENSURING CONSIDERATION OF ENERGY EF-
FICIENT FEATURES.—Section 1110 of the Financial 
Institutions Reform, Recovery, and Enforcement Act 
of 1989 (12 U.S.C. 3339) is amended— 
(A) in paragraph (2), by striking ‘‘; and’’ 
and inserting a semicolon; and 
(B) in paragraph (3), by striking the pe-
riod at the end and inserting ‘‘; and’’ and in-
serting after paragraph (3) the following: 
‘‘(4) that State certified and licensed appraisers 
have timely access, whenever practicable, to informa-
tion from the property owner and the lender that 
may be relevant in developing an opinion of value re-
garding the energy- and water-saving improvements 
or features of a property, such as— 
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‘‘(A) labels or ratings of buildings; 
‘‘(B) installed appliances, measures, sys-
tems or technologies; 
‘‘(C) blueprints; 
‘‘(D) construction costs; 
‘‘(E) financial or other incentives regard-
ing energy- and water-efficient components and 
systems installed in a property; 
‘‘(F) utility bills; 
‘‘(G) 
energy 
consumption 
and 
benchmarking data; and 
‘‘(H) third-party verifications or represen-
tations of energy and water efficiency perform-
ance of a property, observing all financial pri-
vacy requirements adhered to by certified and 
licensed appraisers, including section 501 of the 
Gramm-Leach-Bliley Act (15 U.S.C. 6801). 
Unless a property owner consents to a lender, an ap-
praiser, in carrying out the requirements of para-
graph (4), shall not have access to the commercial 
or financial information of the owner that is privi-
leged or confidential.’’. 
(5) TRANSACTIONS
REQUIRING
STATE
CER-
TIFIED APPRAISERS.—Section 1113 of the Financial 
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Institutions Reform, Recovery, and Enforcement Act 
of 1989 (12 U.S.C. 3342) is amended— 
(A) in paragraph (1), by inserting before 
the semicolon the following: ‘‘, or any real prop-
erty on which the appraiser makes adjustments 
using an energy efficiency report’’; and 
(B) in paragraph (2), by inserting after 
‘‘atypical’’ the following: ‘‘, or an appraisal on 
which the appraiser makes adjustments using 
an energy efficiency report.’’. 
(6) PROTECTIONS.— 
(A) 
AUTHORITY
TO
IMPOSE
LIMITA-
TIONS.—The guidelines to be issued under 
paragraph (1) shall include such limitations and 
conditions as determined by the Secretary to be 
necessary to protect against meaningful under 
or over valuation of energy cost savings or du-
plicative counting of energy efficiency features 
or energy cost savings in the valuation of any 
subject property that is used to determine a 
loan amount. 
(B) ADDITIONAL AUTHORITY.—At the end 
of the 7-year period following the implementa-
tion of enhanced eligibility and underwriting 
valuation requirements under this section, the 
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127 
Secretary may modify or apply additional ex-
ceptions to the approach described in paragraph 
(2), where the Secretary finds that the 
unadjusted appraisal will reflect an accurate 
market value of the efficiency of the subject 
property or that a modified approach will better 
reflect an accurate market value. 
(7) 
APPLICABILITY
AND
IMPLEMENTATION 
DATE.—Not later than 3 years after the date of en-
actment of this Act, and before December 31, 2017, 
each covered agency shall implement the guidelines 
required under this subsection, which shall— 
(A) apply to any covered loan for the sale, 
or refinancing of any loan for the sale, of any 
home; and 
(B) be available on any residential real 
property, including individual units of con-
dominiums and cooperatives, that qualifies for a 
covered loan. 
(e) MONITORING.—Not later than 1 year after the 
date on which the enhanced eligibility and underwriting 
valuation requirements are implemented under this sec-
tion, and every year thereafter, each covered agency with 
relevant activity shall issue and make available to the pub-
lic a report that— 
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128 
(1) enumerates the number of covered loans of 
the agency for which there was an energy efficiency 
report, and that used energy efficiency appraisal 
guidelines and enhanced loan eligibility require-
ments; 
(2) includes the default rates and rates of fore-
closures for each category of loans; and 
(3) describes the risk premium, if any, that the 
agency has priced into covered loans for which there 
was an energy efficiency report. 
(f) RULEMAKING.— 
(1) IN
GENERAL.—The Secretary shall pre-
scribe regulations to carry out this section, in con-
sultation with the Secretary of Energy and the advi-
sory group established in paragraph (2), which may 
contain such classifications, differentiations, or other 
provisions, and may provide for such proper imple-
mentation and appropriate treatment of different 
types of transactions, as the Secretary determines 
are necessary or proper to effectuate the purposes of 
this section, to prevent circumvention or evasion 
thereof, or to facilitate compliance therewith. 
(2) ADVISORY GROUP.—To assist in carrying 
out this section, the Secretary shall establish an ad-
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129 
visory group, consisting of individuals representing 
the interests of— 
(A) mortgage lenders; 
(B) appraisers; 
(C) energy raters and residential energy 
consumption experts; 
(D) energy efficiency organizations; 
(E) real estate agents; 
(F) home builders and remodelers; 
(G) State energy officials; and 
(H) others as determined by the Secretary. 
(g) ADDITIONAL STUDY.— 
(1) IN GENERAL.—Not later than 18 months 
after the date of enactment of this Act, the Sec-
retary shall reconvene the advisory group established 
in subsection (f)(2), in addition to water and loca-
tional efficiency experts, to advise the Secretary on 
the implementation of the enhanced energy efficiency 
underwriting criteria established in subsections (c) 
and (d). 
(2) RECOMMENDATIONS.—The advisory group 
established in subsection (f)(2) shall provide rec-
ommendations to the Secretary on any revisions or 
additions to the enhanced energy efficiency under-
writing criteria deemed necessary by the group, 
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130 
which may include alternate methods to better ac-
count for home energy costs and additional factors 
to account for substantial and regular costs of home-
ownership such as location-based transportation 
costs and water costs. The Secretary shall forward 
any legislative recommendations from the advisory 
group to Congress for its consideration. 
Subtitle E—Voluntary Verification 
Programs for Air Conditioning, 
Furnace, Boiler, Heat Pump, 
and Water Heater Products 
SEC. 441. VOLUNTARY VERIFICATION PROGRAMS FOR AIR 
CONDITIONING, 
FURNACE, 
BOILER, 
HEAT 
PUMP, AND WATER HEATER PRODUCTS. 
Section 326(b) of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6296(b)) is amended by adding at 
the end the following: 
‘‘(6) VOLUNTARY VERIFICATION PROGRAMS FOR 
AIR CONDITIONING, FURNACE, BOILER, HEAT PUMP, 
AND WATER HEATER PRODUCTS.— 
‘‘(A) RELIANCE
ON
VOLUNTARY
PRO-
GRAMS.—For the purpose of verifying compli-
ance with energy conservation standards and 
Energy Star specifications established under 
sections 324A, 325, and 342 for covered prod-
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131 
ucts described in paragraphs (3), (4), (5), (9), 
and (11) of section 322(a) and covered equip-
ment described in subparagraphs (B), (C), (D), 
(F), (I), (J), and (K) of section 340(1), the 
Secretary and the Administrator of the Envi-
ronmental Protection Agency shall rely on vol-
untary verification programs that are recog-
nized by the Secretary in accordance with sub-
paragraph (B). 
‘‘(B) 
RECOGNITION
OF
VOLUNTARY 
VERIFICATION PROGRAMS.— 
‘‘(i) IN
GENERAL.—Not later than 
180 days after the date of enactment of 
this paragraph, the Secretary and the Ad-
ministrator of the Environmental Protec-
tion Agency shall initiate a negotiated rule-
making in accordance with subchapter III 
of chapter 5 of title 5, United States Code 
(commonly known as the ‘Negotiated Rule-
making Act of 1990’) to develop criteria 
that have consensus support for achieving 
recognition by the Secretary as an ap-
proved voluntary verification program. 
‘‘(ii) MINIMUM REQUIREMENTS.—The 
criteria developed under clause (i) shall, at 
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