IB 
Union Calendar No. 70
108TH CONGRESS 
1ST SESSION H. R. 1346
[Report No. 108–78, Part I] 
To amend the Office of Federal Procurement Policy Act to provide an addi-
tional function of the Administrator for Federal Procurement Policy 
relating to encouraging Federal procurement policies that enhance energy 
efficiency. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 19, 2003
Mr. TURNER of Ohio introduced the following bill; which was referred to the 
Committee on Government Reform 
APRIL 29, 2003
Reported with an amendment and referred to the Committee on Trans-
portation and Infrastructure for a period ending not later than June 2, 
2003, for consideration of such provisions of the bill and amendment as 
fall within the jurisdiction of that committee pursuant to clause 1(q),
rule X 
[Strike out all after the enacting clause and insert the part printed in italic] 
JUNE 2, 2003 
Committee on Transportation and Infrastructure discharged; committed to the 
Committee of the Whole House on the State of the Union and ordered 
to be printed 
[For text of introduced bill, see copy of bill as introduced on March 19, 2003] 
A BILL 
To amend the Office of Federal Procurement Policy Act 
to provide an additional function of the Administrator
for Federal Procurement Policy relating to encouraging 
Federal procurement policies that enhance energy effi-
ciency.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Federal Government Energy Management Improvement 
Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title; table of contents. 
TITLE I—FEDERAL FACILITIES 
Sec. 101. Energy management requirements. 
Sec. 102. Energy use measurement and accountability. 
Sec. 103. Energy savings performance contracts. 
Sec. 104. Federal agency participation in demand reduction programs. 
TITLE II—FEDERAL FLEETS 
Sec. 201. Waivers of alternative fueled vehicle fueling requirement. 
Sec. 202. Study on reducing petroleum consumption. 
Sec. 203. Hybrid vehicles. 
TITLE III—FEDERAL PROCUREMENT 
Sec. 301. Procurement of energy efficient products. 
Sec. 302. Increased use of recovered mineral component in federally funded 
projects involving procurement of cement or concrete. 
Sec. 303. Participation of small business concerns. 
Sec. 304. Amendment to Buy Indian Act. 
Sec. 305. Buy American. 
TITLE IV—FEDERAL WORKERS 
Sec. 401. Telecommuting study. 
Sec. 402. Elimination of pension offset.
TITLE I—FEDERAL FACILITIES 
SEC. 101. ENERGY MANAGEMENT REQUIREMENTS. 
(a) ENERGY REDUCTION GOALS.—
(1) AMENDMENT.—Section 543(a)(1) of the Na-
tional Energy Conservation Policy Act (42 U.S.C. 
8253(a)(1)) is amended by striking ‘‘its Federal 
buildings so that’’ and all that follows through the 
end and inserting ‘‘the Federal buildings of the agen-
cy (including each industrial or laboratory facility) 
so that the energy consumption per gross square foot 
of the Federal buildings of the agency in fiscal years 
2004 through 2013 is reduced, as compared with the 
energy consumption per gross square foot of the Fed-
eral buildings of the agency in fiscal year 2001, by 
the percentage specified in the following table:
‘‘Fiscal Year 
Percentage reduction 
2004 ............................................................................................
2005 ............................................................................................
2006 ............................................................................................
2007 ............................................................................................
2008 ............................................................................................
2009 ............................................................................................
2010 ............................................................................................
2011 ............................................................................................
2012 ............................................................................................
2013 ............................................................................................
20.’’.
(2) REPORTING BASELINE.—The energy reduc-
tion goals and baseline established in paragraph (1) 
of section 543(a) of the National Energy Conservation 
Policy Act, as amended by paragraph (1) of this sub-
section, supersede all previous goals and baselines
under such paragraph, and related reporting require-
ments. 
(b) REVIEW AND REVISION OF ENERGY PERFORMANCE 
REQUIREMENT.—Section 543(a) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(a)) is further 
amended by adding at the end the following: 
‘‘(3) Not later than December 31, 2012, the Secretary 
shall review the results of the implementation of the energy 
performance requirement established under paragraph (1) 
and submit to Congress recommendations concerning en-
ergy performance requirements for fiscal years 2014 
through 2023.’’. 
(c) EXCLUSIONS.—Section 543(c)(1) of the National 
Energy Conservation Policy Act (42 U.S.C. 8253(c)(1)) is 
amended by striking ‘‘An agency may exclude’’ and all that 
follows through the end and inserting ‘‘(A) An agency may 
exclude, from the energy performance requirement for a fis-
cal year established under subsection (a) and the energy 
management requirement established under subsection (b), 
any Federal building or collection of Federal buildings, if 
the head of the agency finds that—
‘‘(i) compliance with those requirements would 
be impracticable; 
‘‘(ii) the agency has completed and submitted all 
federally required energy management reports;
‘‘(iii) the agency has achieved compliance with 
the energy efficiency requirements of this Act, the En-
ergy Policy Act of 1992, Executive Orders, and other 
Federal law; and
‘‘(iv) the agency has implemented all practicable, 
life cycle cost-effective projects with respect to the Fed-
eral building or collection of Federal buildings to be 
excluded. 
‘‘(B) A finding of impracticability under subpara-
graph (A)(i) shall be based on— 
‘‘(i) the energy intensiveness of activities carried 
out in the Federal building or collection of Federal 
buildings; or 
‘‘(ii) the fact that the Federal building or collec-
tion of Federal buildings is used in the performance 
of a national security function.’’. 
(d) REVIEW BY SECRETARY.—Section 543(c)(2) of the 
National Energy Conservation Policy Act (42 U.S.C. 
8253(c)(2)) is amended— 
(1) by striking ‘‘impracticability standards’’ and 
inserting ‘‘standards for exclusion’’; and 
(2) by striking ‘‘a finding of impracticability’’ 
and inserting ‘‘the exclusion’’.
(e) CRITERIA.—Section 543(c) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(c)) is further 
amended by adding at the end the following: 
‘‘(3) Not later than 180 days after the date of enact-
ment of this paragraph, the Secretary shall issue guidelines 
that establish criteria for exclusions under paragraph (1).’’. 
(f) RETENTION OF ENERGY SAVINGS.—Section 546 of 
the National Energy Conservation Policy Act (42 U.S.C. 
8256) is amended by adding at the end the following new 
subsection: 
‘‘(e) RETENTION OF ENERGY SAVINGS.—An agency 
may retain any funds appropriated to that agency for en-
ergy expenditures, at buildings subject to the requirements 
of section 543(a) and (b), that are not made because of en-
ergy savings. Except as otherwise provided by law, such 
funds may be used only for energy efficiency or unconven-
tional and renewable energy resources projects.’’. 
(g) REPORTS.—Section 548(b) of the National Energy 
Conservation Policy Act (42 U.S.C. 8258(b)) is amended—
(1) in the subsection heading, by inserting ‘‘THE 
PRESIDENT AND’’ before ‘‘CONGRESS’’; and 
(2) by inserting ‘‘President and’’ before ‘‘Con-
gress’’. 
(h) CONFORMING AMENDMENT.—Section 550(d) of the 
National Energy Conservation Policy Act (42 U.S.C.
8258b(d)) is amended in the second sentence by striking 
‘‘the 20 percent reduction goal established under section 
543(a) of the National Energy Conservation Policy Act (42 
U.S.C. 8253(a)).’’ and inserting ‘‘each of the energy reduc-
tion goals established under section 543(a).’’. 
SEC. 102. ENERGY USE MEASUREMENT AND ACCOUNT-
ABILITY. 
Section 543 of the National Energy Conservation Pol-
icy Act (42 U.S.C. 8253) is further amended by adding at 
the end the following: 
‘‘(e) METERING OF ENERGY USE.—
‘‘(1) DEADLINE.—By October 1, 2010, in accord-
ance with guidelines established by the Secretary 
under paragraph (2), all Federal buildings shall, for 
the purposes of efficient use of energy and reduction 
in the cost of electricity used in such buildings, be me-
tered or submetered. Each agency shall use, to the 
maximum extent practicable, advanced meters or ad-
vanced metering devices that provide data at least 
daily and that measure at least hourly consumption 
of electricity in the Federal buildings of the agency. 
Such data shall be incorporated into existing Federal 
energy tracking systems and made available to Fed-
eral facility energy managers. 
‘‘(2) GUIDELINES.—
‘‘(A) IN
GENERAL.—Not later than 180 
days after the date of enactment of this sub-
section, the Secretary, in consultation with the 
Department of Defense, the General Services Ad-
ministration, representatives from the metering 
industry, utility industry, energy services indus-
try, energy efficiency industry, national labora-
tories, universities, and Federal facility energy 
managers, shall establish guidelines for agencies 
to carry out paragraph (1). 
‘‘(B) REQUIREMENTS
FOR
GUIDELINES.—
The guidelines shall—
‘‘(i) take into consideration—
‘‘(I) the cost of metering and sub-
metering and the reduced cost of oper-
ation and maintenance expected to re-
sult from metering and submetering; 
‘‘(II) the extent to which metering 
and submetering are expected to result 
in increased potential for energy man-
agement, increased potential for energy 
savings and energy efficiency improve-
ment, and cost and energy savings due 
to utility contract aggregation; and
‘‘(III) 
the 
measurement 
and 
verification protocols of the Depart-
ment of Energy; 
‘‘(ii) include recommendations con-
cerning the amount of funds and the num-
ber of trained personnel necessary to gather 
and use the metering information to track 
and reduce energy use; 
‘‘(iii) establish priorities for types and 
locations of buildings to be metered and 
submetered based on cost-effectiveness and a 
schedule of one or more dates, not later than 
1 year after the date of issuance of the 
guidelines, on which the requirements speci-
fied in paragraph (1) shall take effect; and 
‘‘(iv) establish exclusions from the re-
quirements specified in paragraph (1) based 
on the de minimis quantity of energy use of 
a Federal building, industrial process, or 
structure. 
‘‘(3) PLAN.—No later than 6 months after the 
date 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 how the agency will implement the
requirements of paragraph (1), including (A) how the 
agency will designate personnel primarily responsible 
for achieving the requirements and (B) demonstration 
by the agency, complete with documentation, of any 
finding that advanced meters or advanced metering
devices, as defined in paragraph (1), are not prac-
ticable.’’. 
SEC. 103. ENERGY SAVINGS PERFORMANCE CONTRACTS. 
(a) PERMANENT EXTENSION.—Section 801(c) of the 
National Energy Conservation Policy Act (42 U.S.C. 
8287(c)) is repealed. 
(b) REPLACEMENT FACILITIES.—Section 801(a) of the 
National Energy Conservation Policy Act (42 U.S.C. 
8287(a)) is amended by adding at the end the following 
new paragraph: 
‘‘(3)(A) In the case of an energy savings contract or 
energy savings performance contract providing for energy 
savings through the construction and operation of one or 
more buildings or facilities to replace one or more existing 
buildings or facilities, benefits ancillary to the purpose of 
such contract under paragraph (1) may include savings re-
sulting from reduced costs of operation and maintenance 
at such replacement buildings or facilities when compared 
with costs of operation and maintenance at the buildings
or facilities being replaced, established through a method-
ology set forth in the contract. 
‘‘(B) Notwithstanding paragraph (2)(B), aggregate 
annual payments by an agency under an energy savings 
contract or energy savings performance contract referred to 
in subparagraph (A) may take into account (through the 
procedures developed pursuant to this section) savings re-
sulting from reduced costs of operation and maintenance 
as described in that subparagraph.’’. 
(c) ENERGY SAVINGS.—Section 804(2) of the National 
Energy Conservation Policy Act (42 U.S.C. 8287c(2)) is 
amended to read as follows: 
‘‘(2) The term ‘energy savings’ means—
‘‘(A) a reduction in the cost of energy or 
water, from a base cost established through a 
methodology set forth in the contract, used in an 
existing federally owned building or buildings or 
other federally owned facilities as a result of—
‘‘(i) the lease or purchase of operating 
equipment, improvements, altered operation 
and maintenance, or technical services; 
‘‘(ii) the increased efficient use of exist-
ing energy sources by cogeneration or heat 
recovery, excluding any cogeneration process 
for other than a federally owned building or