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tion under subparagraph (A), the energy man-
ager shall identify and assess recommissioning
measures (or, if the facility has never been com-
missioned, retrocommissioning measures) for
each such facility.
‘‘(4) IMPLEMENTATION OF IDENTIFIED ENERGY
AND WATER EFFICIENCY MEASURES.—Not later than
2 years after the completion of each evaluation under
paragraph (3), each energy manager may—
‘‘(A) implement any energy- or water-sav-
ing measure that the Federal agency identified
in the evaluation conducted under paragraph (3)
that is life cycle cost-effective; and
‘‘(B) bundle individual measures of varying
paybacks together into combined projects.
‘‘(5) 
FOLLOW-UP
ON
IMPLEMENTED
MEAS-
URES.—For each measure implemented under para-
graph (4), each energy manager shall ensure that—
‘‘(A) equipment, including building and
equipment controls, is fully commissioned at ac-
ceptance to be operating at design specifications;
‘‘(B) a plan for appropriate operations,
maintenance, and repair of the equipment is in
place at acceptance and is followed;
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‘‘(C) equipment and system performance is
measured during its entire life to ensure proper
operations, maintenance, and repair; and
‘‘(D) energy and water savings are meas-
ured and verified.
‘‘(6) GUIDELINES.—
‘‘(A) IN
GENERAL.—The Secretary shall
issue guidelines and necessary criteria that each
Federal agency shall follow for implementation
of—
‘‘(i) paragraphs (2) and (3) not later
than 180 days after the date of enactment
of this subsection; and
‘‘(ii) paragraphs (4) and (5) not later
than 1 year after the date of enactment of
this subsection.
‘‘(B) 
RELATIONSHIP
TO
FUNDING
SOURCE.—The guidelines issued by the Secretary
under subparagraph (A) shall be appropriate
and uniform for measures funded with each type
of funding made available under paragraph
(10), but may distinguish between different types
of measures project size, and other criteria the
Secretary determines are relevant.
‘‘(7) WEB-BASED CERTIFICATION.—
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‘‘(A) IN GENERAL.—For each facility that
meets the criteria established by the Secretary
under paragraph (2)(B), the energy manager
shall use the web-based tracking system under
subparagraph (B) to certify compliance with the
requirements for—
‘‘(i) energy and water evaluations
under paragraph (3);
‘‘(ii) implementation of identified en-
ergy and water measures under paragraph
(4); and
‘‘(iii) follow-up on implemented meas-
ures under paragraph (5).
‘‘(B) DEPLOYMENT.—
‘‘(i) IN GENERAL.—Not later than 1
year after the date of enactment of this sub-
section, the Secretary shall develop and de-
ploy a web-based tracking system required
under this paragraph in a manner that
tracks, at a minimum—
‘‘(I) the covered facilities;
‘‘(II) the status of meeting the re-
quirements specified in subparagraph
(A);
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‘‘(III) the estimated cost and sav-
ings for measures required to be imple-
mented in a facility;
‘‘(IV) the measured savings and
persistence of savings for implemented
measures; and
‘‘(V) the benchmarking informa-
tion disclosed under paragraph (8)(C).
‘‘(ii) EASE OF COMPLIANCE.—The Sec-
retary shall ensure that energy manager
compliance with the requirements in this
paragraph, 
to 
the 
maximum 
extent
practicable—
‘‘(I) can be accomplished with the
use of streamlined procedures and tem-
plates that minimize the time demands
on Federal employees; and
‘‘(II) is coordinated with other
applicable energy reporting require-
ments.
‘‘(C) AVAILABILITY.—
‘‘(i) IN
GENERAL.—Subject to clause
(ii), the Secretary shall make the web-based
tracking system required under this para-
graph available to Congress, other Federal
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agencies, and the public through the Inter-
net.
‘‘(ii) EXEMPTIONS.—At the request of
a Federal agency, the Secretary may exempt
specific data for specific facilities from dis-
closure under clause (i) for national secu-
rity purposes.
‘‘(8) BENCHMARKING OF FEDERAL FACILITIES.—
‘‘(A) IN
GENERAL.—The energy manager
shall enter energy use data for each metered
building that is (or is a part of) a facility that
meets the criteria established by the Secretary
under paragraph (2)(B) into a building energy
use benchmarking system, such as the Energy
Star Portfolio Manager.
‘‘(B) SYSTEM
AND
GUIDANCE.—Not later
than 1 year after the date of enactment of this
subsection, the Secretary shall—
‘‘(i) select or develop the building en-
ergy use benchmarking system required
under this paragraph for each type of build-
ing; and
‘‘(ii) issue guidance for use of the sys-
tem.
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‘‘(C) PUBLIC
DISCLOSURE.—Each energy
manager shall post the information entered into,
or generated by, a benchmarking system under
this subsections, on the web-based tracking sys-
tem under paragraph (7)(B). The energy man-
ager shall update such information each year,
and shall include in such reporting previous
years’ information to allow changes in building
performance to be tracked over time.
‘‘(9) FEDERAL AGENCY SCORECARDS.—
‘‘(A) IN GENERAL.—The Director of the Of-
fice of Management and Budget shall issue semi-
annual scorecards for energy management activi-
ties carried out by each Federal agency that
includes—
‘‘(i) summaries of the status of imple-
menting the various requirements of the
agency and its energy managers under this
subsection; and
‘‘(ii) any other means of measuring
performance that the Director considers ap-
propriate.
‘‘(B) AVAILABILITY.—The Director shall
make the scorecards required under this para-
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graph available to Congress, other Federal agen-
cies, and the public through the Internet.
‘‘(10) FUNDING AND IMPLEMENTATION.—
‘‘(A) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appropriated
such sums as are necessary to carry out this sub-
section.
‘‘(B) FUNDING OPTIONS.—
‘‘(i) IN GENERAL.—To carry out this
subsection, a Federal agency may use any
combination of—
‘‘(I) appropriated funds made
available under subparagraph (A); and
‘‘(II) private financing otherwise
authorized under Federal law, includ-
ing financing available through energy
savings performance contracts or util-
ity energy service contracts.
‘‘(ii) COMBINED
FUNDING
FOR
SAME
MEASURE.—A Federal agency may use any
combination of appropriated funds and pri-
vate financing described in clause (i) to
carry out the same measure under this sub-
section.
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‘‘(C) 
IMPLEMENTATION.—Each 
Federal
agency may implement the requirements under
this subsection itself or may contract out per-
formance of some or all of the requirements.
‘‘(11) RULE OF CONSTRUCTION.—This subsection
shall not be construed to require or to obviate any
contractor savings guarantees.’’.
SEC. 433. FEDERAL BUILDING ENERGY EFFICIENCY PER-
FORMANCE STANDARDS.
(a) STANDARDS.—Section 305(a)(3) of the Energy
Conservation and Production Act (42 U.S.C. 6834(a)(3))
is amended by adding at the end the following new subpara-
graph:
‘‘(D) Not later than 1 year after the date of enactment
of the Energy Independence and Security Act of 2007, the
Secretary shall establish, by rule, revised Federal building
energy efficiency performance standards that require that:
‘‘(i) For new Federal buildings and Federal
buildings undergoing major renovations, with respect
to which the Administrator of General Services is re-
quired to transmit a prospectus to Congress under
section 3307 of title 40, United States Code, in the
case of public buildings (as defined in section 3301 of
title 40, United States Code), or of at least $2,500,000
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in costs adjusted annually for inflation for other
buildings:
‘‘(I) The buildings shall be designed so that
the fossil fuel-generated energy consumption of
the buildings is reduced, as compared with such
energy consumption by a similar building in fis-
cal year 2003 (as measured by Commercial
Buildings Energy Consumption Survey or Resi-
dential Energy Consumption Survey data from
the Energy Information Agency), by the percent-
age specified in the following table:
‘‘Fiscal Year
Percentage Reduction
2010 .............................................................................
2015 .............................................................................
2020 .............................................................................
2025 .............................................................................
2030 .............................................................................
100.
‘‘(II) Upon petition by an agency subject to
this subparagraph, the Secretary may adjust the
applicable numeric requirement under subclause
(I) downward with respect to a specific building,
if the head of the agency designing the building
certifies in writing that meeting such require-
ment would be technically impracticable in light
of the agency’s specified functional needs for that
building and the Secretary concurs with the
agency’s conclusion. This subclause shall not
apply to the General Services Administration.
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‘‘(III) Sustainable design principles shall be
applied to the siting, design, and construction of
such buildings. Not later than 90 days after the
date of enactment of the Energy Independence
and Security Act of 2007, the Secretary, after re-
viewing the findings of the Federal Director
under section 436(h) of that Act, in consultation
with the Administrator of General Services, and
in consultation with the Secretary of Defense for
considerations relating to those facilities under
the custody and control of the Department of De-
fense, shall identify a certification system and
level for green buildings that the Secretary deter-
mines to be the most likely to encourage a com-
prehensive and environmentally-sound approach
to certification of green buildings. The identifica-
tion of the certification system and level shall be
based on a review of the Federal Director’s find-
ings under section 436(h) of the Energy Inde-
pendence and Security Act of 2007 and the cri-
teria specified in clause (iii), shall identify the
highest level the Secretary determines is appro-
priate above the minimum level required for cer-
tification under the system selected, and shall
achieve results at least comparable to the system
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used by and highest level referenced by the Gen-
eral Services Administration as of the date of en-
actment of the Energy Independence and Secu-
rity Act of 2007. Within 90 days of the comple-
tion of each study required by clause (iv), the
Secretary, in consultation with the Adminis-
trator of General Services, and in consultation
with the Secretary of Defense for considerations
relating to those facilities under the custody and
control of the Department of Defense, shall re-
view and update the certification system and
level, taking into account the conclusions of such
study.
‘‘(ii) In establishing criteria for identifying
major renovations that are subject to the requirements
of this subparagraph, the Secretary shall take into ac-
count the scope, degree, and types of renovations that
are likely to provide significant opportunities for sub-
stantial improvements in energy efficiency.
‘‘(iii) In identifying the green building certifi-
cation system and level, the Secretary shall take into
consideration—
‘‘(I) the ability and availability of assessors
and auditors to independently verify the criteria
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and measurement of metrics at the scale nec-
essary to implement this subparagraph;
‘‘(II) the ability of the applicable certifi-
cation organization to collect and reflect public
comment;
‘‘(III) the ability of the standard to be de-
veloped and revised through a consensus-based
process;
‘‘(IV) an evaluation of the robustness of the
criteria for a high-performance green building,
which shall give credit for promoting—
‘‘(aa) efficient and sustainable use of
water, energy, and other natural resources;
‘‘(bb) use of renewable energy sources;
‘‘(cc) improved indoor environmental
quality through enhanced indoor air qual-
ity, thermal 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 Sec-
retary determines to be appropriate; and
‘‘(V) national recognition within the build-
ing industry.
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‘‘(iv) At least once every five years, and in ac-
cordance with section 436 of the Energy Independence
and Security Act of 2007, the Administrator of Gen-
eral Services shall conduct a study to evaluate and
compare available third-party green building certifi-
cation systems and levels, taking into account the cri-
teria listed in clause (iii).
‘‘(v) The Secretary may by rule allow Federal
agencies to develop internal certification processes,
using certified professionals, in lieu of certification by
the certification entity identified under clause
(i)(III). The Secretary shall include in any such rule
guidelines to ensure that the certification process re-
sults in buildings meeting the applicable certification
system and level identified under clause (i)(III). An
agency employing an internal certification process
must continue to obtain external certification by the
certification entity identified under clause (i)(III) for
at least 5 percent of the total number of buildings cer-
tified annually by the agency.
‘‘(vi) With respect to privatized military hous-
ing, the Secretary of Defense, after consultation with
the Secretary may, through rulemaking, develop alter-
native criteria to those established by subclauses (I)
and (III) of clause (i) that achieve an equivalent re-
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sult in terms of energy savings, sustainable design,
and green building performance.
‘‘(vii) In addition to any use of water conserva-
tion technologies otherwise required by this section,
water conservation technologies shall be applied to the
extent that the technologies are life-cycle cost-effec-
tive.’’.
(b) DEFINITIONS.—Section 303(6) of the Energy Con-
servation and Production Act (42 U.S.C. 6832(6)) is
amended by striking ‘‘which is not legally subject to State
or local building codes or similar requirements.’’ and in-
serting ‘‘. Such term shall include buildings built for the
purpose of being leased by a Federal agency, and privatized
military housing.’’.
(c) REVISION
OF FEDERAL ACQUISITION REGULA-
TION.—Not later than 2 years after the date of the enact-
ment of this Act, the Federal Acquisition Regulation shall
be revised to require Federal officers and employees to com-
ply with this section and the amendments made by this sec-
tion in the acquisition, construction, or major renovation
of any facility. The members of the Federal Acquisition
Regulatory Council (established under section 25 of the Of-
fice of Federal Procurement Policy Act (41 U.S.C. 421))
shall consult with the Federal Director and the Commercial
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Director before promulgating regulations to carry out this
subsection.
(d) GUIDANCE.—Not later than 90 days after the date
of promulgation of the revised regulations under subsection
(c), the Administrator for Federal Procurement Policy shall
issue guidance to all Federal procurement executives pro-
viding direction and instructions to renegotiate the design
of proposed facilities and major renovations for existing fa-
cilities to incorporate improvements that are consistent
with this section.
SEC. 434. MANAGEMENT OF FEDERAL BUILDING EFFI-
CIENCY.
(a) LARGE CAPITAL ENERGY INVESTMENTS.—Section
543 of the National Energy Conservation Policy Act (42
U.S.C. 8253) is amended by adding at the end the following:
‘‘(f) LARGE CAPITAL ENERGY INVESTMENTS.—
‘‘(1) IN GENERAL.—Each Federal agency shall
ensure that any large capital energy investment in an
existing building that is not a major renovation but
involves replacement of installed equipment (such as
heating and cooling systems), or involves renovation,
rehabilitation, expansion, or remodeling of existing
space, employs the most energy efficient designs, sys-
tems, equipment, and controls that are life-cycle cost
effective.
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‘‘(2) PROCESS FOR REVIEW OF INVESTMENT DE-
CISIONS.—Not later than 180 days after the date of
enactment of this subsection, each Federal agency
shall—
‘‘(A) develop a process for reviewing each
decision made on a large capital energy invest-
ment described in paragraph (1) to ensure that
the requirements of this subsection are met; and
‘‘(B) report to the Director of the Office of
Management and Budget on the process estab-
lished.
‘‘(3) COMPLIANCE
REPORT.—Not later than 1
year after the date of enactment of this subsection, the
Director of the Office of Management and Budget
shall evaluate and report to Congress on the compli-
ance of each agency with this subsection.’’.
(b) METERING.—Section 543(e)(1) of the National En-
ergy Conservation Policy Act (42 U.S.C. 8253(e)(1)) is
amended by inserting after the second sentence the fol-
lowing: ‘‘Not later than October 1, 2016, each agency shall
provide for equivalent metering of natural gas and steam,
in accordance with guidelines established by the Secretary
under paragraph (2).’’.
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SEC. 435. LEASING.
(a) IN GENERAL.—Except as provided in subsection
(b), effective beginning on the date that is 3 years after the
date of enactment of this Act, no Federal agency shall enter
into a contract to lease space in a building that has not
earned the Energy Star label in the most recent year.
(b) EXCEPTION.—
(1) APPLICATION.—This subsection applies if—
(A) no space is available in a building de-
scribed in subsection (a) that meets the func-
tional requirements of an agency, including loca-
tional needs;
(B) the agency proposes to remain in a
building that the agency has occupied previously;
(C) the agency proposes to lease a building
of historical, architectural, or cultural signifi-
cance (as defined in section 3306(a)(4) of title
40, United States Code) or space in such a
building; or
(D) the lease is for not more than 10,000
gross square feet of space.
(2) 
BUILDINGS
WITHOUT
ENERGY
STAR
LABEL.—If 1 of the conditions described in paragraph
(2) is met, the agency may enter into a contract to
lease space in a building that has not earned the En-
ergy Star label in the most recent year if the lease
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contract includes provisions requiring that, prior to
occupancy or, in the case of a contract described in
paragraph (1)(B), not later than 1 year after signing
the contract, the space will be renovated for all energy
efficiency and conservation improvements that would
be cost effective over the life of the lease, including im-
provements in lighting, windows, and heating, ven-
tilation, and air conditioning systems.
(c) REVISION
OF FEDERAL ACQUISITION REGULA-
TION.—
(1) IN GENERAL.—Not later than 3 years after
the date of the enactment of this Act, the Federal Ac-
quisition Regulation described in section 6(a) of the
Office of Federal Procurement Policy Act (41 U.S.C.
405(a)) shall be revised to require Federal officers and
employees to comply with this section in leasing
buildings.
(2) CONSULTATION.—The members of the Federal
Acquisition Regulatory Council established under sec-
tion 25 of the Office of Federal Procurement Policy
Act (41 U.S.C. 421)) shall consult with the Federal
Director and the Commercial Director before promul-
gating regulations to carry out this subsection.
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SEC. 436. HIGH-PERFORMANCE GREEN FEDERAL BUILD-
INGS.
(a) ESTABLISHMENT OF OFFICE.—Not later than 60
days after the date of enactment of this Act, the Adminis-
trator shall establish within the General Services Adminis-
tration an Office of Federal High-Performance Green
Buildings, and appoint an individual to serve as Federal
Director in, a position in the career-reserved Senior Execu-
tive service, to—
(1) establish and manage the Office of Federal
High-Performance Green Buildings; and
(2) carry out other duties as required under this
subtitle.
(b) COMPENSATION.—The compensation of the Federal
Director shall not exceed the maximum rate of basic pay
for the Senior Executive Service under section 5382 of title
5, United States Code, including any applicable locality-
based comparability payment that may be authorized under
section 5304(h)(2)(C) of that title.
(c) DUTIES.—The Federal Director shall—
(1) coordinate the activities of the Office of Fed-
eral High-Performance Green Buildings with the ac-
tivities of the Office of Commercial High-Performance
Green Buildings, and the Secretary, in accordance
with section 305(a)(3)(D) of the Energy Conservation
and Production Act (42 U.S.C. 6834(a)(3)(D));
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(2) ensure full coordination of high-performance
green building information and activities within the
General Services Administration and all relevant
agencies, including, at a minimum—
(A) the Environmental Protection Agency;
(B) the Office of the Federal Environmental
Executive;
(C) the Office of Federal Procurement Pol-
icy;
(D) the Department of Energy;
(E) the Department of Health and Human
Services;
(F) the Department of Defense;
(G) the Department of Transportation;
(H) the National Institute of Standards
and Technology; and
(I) the Office of Science and Technology
Policy;
(3) establish a senior-level Federal Green Build-
ing Advisory Committee under section 474, which
shall provide advice and recommendations in accord-
ance with that section and subsection (d);
(4) identify and every 5 years reassess improved
or higher rating standards recommended by the Advi-
sory Committee;
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(1) identify, review, and analyze current budget
and contracting practices that affect achievement of
high-performance green buildings, including the iden-
tification of barriers to high-performance green build-
ing life-cycle costing and budgetary issues;
(2) develop guidance and conduct training ses-
sions with budget specialists and contracting per-
sonnel from Federal agencies and budget examiners to
apply life-cycle cost criteria to actual projects;
(3) identify tools to aid life-cycle cost decision-
making; and
(4) explore the feasibility of incorporating the
benefits of high-performance green buildings, such as
security benefits, into a cost-budget analysis to aid in
life-cycle costing for budget and decisionmaking proc-
esses.
(e) INCENTIVES.—Within 90 days after the date of en-
actment of this Act, the Federal Director shall identify in-
centives to encourage the expedited use of high-performance
green buildings and related technology in the operations of
the Federal Government, in accordance with the require-
ments of section 305(a)(3)(D) of the Energy Conservation
and Production Act (42 U.S.C. 6834(a)(3)(D)), including
through—
(1) the provision of recognition awards; and
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(2) the maximum feasible retention of financial
savings in the annual budgets of Federal agencies for
use in reinvesting in future high-performance green
building initiatives.
(f) REPORT.—Not later than 2 years after the date of
enactment of this Act, and biennially thereafter, the Federal
Director, in consultation with the Secretary, shall submit
to Congress a report that—
(1) describes the status of compliance with this
subtitle, the requirements of section 305(a)(3)(D) of
the Energy Conservation and Production Act (42
U.S.C. 6834(a)(3)(D)), and other Federal high-per-
formance green building initiatives in effect as of the
date of the report, including—
(A) the extent to which the programs are
being carried out in accordance with this subtitle
and the requirements of section 305(a)(3)(D) of
that Act; and
(B) the status of funding requests and ap-
propriations for those programs;
(2) identifies within the planning, budgeting,
and construction process all types of Federal facility
procedures that may affect the certification of new
and existing Federal facilities as high-performance
green buildings under the provisions of section
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305(a)(3)(D) of that Act and the criteria established
in subsection (h);
(3) identifies inconsistencies, as reported to the
Advisory Committee, in Federal law with respect to
product acquisition guidelines and high-performance
product guidelines;
(4) recommends language for uniform standards
for use by Federal agencies in environmentally re-
sponsible acquisition;
(5) in coordination with the Office of Manage-
ment and Budget, reviews the budget process for cap-
ital programs with respect to alternatives for—
(A) restructuring of budgets to require the
use of complete energy and environmental cost
accounting;
(B) using operations expenditures in budg-
et-related decisions while simultaneously incor-
porating productivity and health measures (as
those measures can be quantified by the Office of
Federal High-Performance Green Buildings,
with the assistance of universities and national
laboratories);
(C) streamlining measures for permitting
Federal agencies to retain all identified savings
accrued as a result of the use of life-cycle costing
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for future high-performance green building ini-
tiatives; and
(D) identifying short-term and long-term
cost savings that accrue from high-performance
green buildings, including those relating to
health and productivity;
(6) identifies green, self-sustaining technologies
to address the operational needs of Federal facilities
in times of national security emergencies, natural dis-
asters, or other dire emergencies;
(7) summarizes and highlights development, at
the State and local level, of high-performance green
building initiatives, including executive orders, poli-
cies, or laws adopted promoting high-performance
green building (including the status of implementa-
tion of those initiatives); and
(8) includes, for the 2-year period covered by the
report, recommendations to address each of the mat-
ters, and a plan for implementation of each rec-
ommendation, described in paragraphs (1) through
(7).
(g) IMPLEMENTATION.—The Office of Federal High-
Performance Green Buildings shall carry out each plan for
implementation of recommendations under subsection
(f)(8).
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(h) IDENTIFICATION OF CERTIFICATION SYSTEM.—
(1) IN GENERAL.—For the purpose of this sec-
tion, not later than 60 days after the date of enact-
ment of this Act, the Federal Director shall identify
and shall provide to the Secretary pursuant to section
305(a)(3)(D) of the Energy Conservation and Produc-
tion Act (42 U.S.C. 6834(a)(3)(D)), a certification
system that the Director determines to be the most
likely to encourage a comprehensive and environ-
mentally-sound approach to certification of green
buildings.
(2) BASIS.—The system identified under para-
graph (1) shall be based on—
(A) a study completed every 5 years and
provided to the Secretary pursuant to section
305(a)(3)(D) of that Act, which shall be carried
out by the Federal Director to compare and
evaluate standards;
(B) the ability and availability of assessors
and auditors to independently verify the criteria
and measurement of metrics at the scale nec-
essary to implement this subtitle;
(C) the ability of the applicable standard-
setting organization to collect and reflect public
comment;
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(D) the ability of the standard to be devel-
oped and revised through a consensus-based proc-
ess;
(E) an evaluation of the robustness of the
criteria for a high performance green building,
which shall give credit for promoting—
(i) efficient and sustainable use of
water, energy, and other natural resources;
(ii) use of renewable energy sources;
(iii) improved indoor environmental
quality through enhanced indoor air qual-
ity, thermal comfort, acoustics, day light-
ing, pollutant source control, and use of
low-emission materials and building system
controls;
(iv) reduced impacts from transpor-
tation through building location and site
design that promote access by public trans-
portation; and
(v) such other criteria as the Federal
Director determines to be appropriate; and
(F) national recognition within the build-
ing industry.
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SEC. 437. FEDERAL GREEN BUILDING PERFORMANCE.
(a) IN GENERAL.—Not later than October 31 of each
of the 2 fiscal years following the fiscal year in which this
Act is enacted, and at such times thereafter as the Comp-
troller General of the United States determines to be appro-
priate, the Comptroller General of the United States shall,
with respect to the fiscal years that have passed since the
preceding report—
(1) conduct an audit of the implementation of
this subtitle, section 305(a)(3)(D) of the Energy Con-
servation 
and 
Production 
Act 
(42 
U.S.C.
6834(a)(3)(D)), and section 435; and
(2) submit to the Federal Director, the Advisory
Committee, the Administrator, and Congress a report
describing the results of the audit.
(b) CONTENTS.—An audit under subsection (a) shall
include a review, with respect to the period covered by the
report under subsection (a)(2), of—
(1) budget, life-cycle costing, and contracting
issues, using best practices identified by the Comp-
troller General of the United States and heads of other
agencies in accordance with section 436(d);
(2) the level of coordination among the Federal
Director, the Office of Management and Budget, the
Department of Energy, and relevant agencies;
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(3) the performance of the Federal Director and
other agencies in carrying out the implementation
plan;
(4) the design stage of high-performance green
building measures;
(5) high-performance building data that were
collected and reported to the Office; and
(6) such other matters as the Comptroller Gen-
eral of the United States determines to be appro-
priate.
(c) ENVIRONMENTAL STEWARDSHIP SCORECARD.—
The Federal Director shall consult with the Advisory Com-
mittee to enhance, and assist in the implementation of, the
Office of Management and Budget government efficiency re-
ports and scorecards under section 528 and the Environ-
mental Stewardship Scorecard announced at the White
House summit on Federal sustainable buildings in January
2006, to measure the implementation by each Federal agen-
cy of sustainable design and green building initiatives.
SEC. 438. STORM WATER RUNOFF REQUIREMENTS FOR FED-
ERAL DEVELOPMENT PROJECTS.
The sponsor of any development or redevelopment
project involving a Federal facility with a footprint that
exceeds 5,000 square feet shall use site planning, design,
construction, and maintenance strategies for the property
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to maintain or restore, to the maximum extent technically
feasible, the predevelopment hydrology of the property with
regard to the temperature, rate, volume, and duration of
flow.
SEC. 439. COST-EFFECTIVE TECHNOLOGY ACCELERATION
PROGRAM.
(a) DEFINITION OF ADMINISTRATOR.—In this section,
the term ‘‘Administrator’’ means the Administrator of Gen-
eral Services.
(b) ESTABLISHMENT.—
(1) IN GENERAL.—The Administrator shall es-
tablish a program to accelerate the use of more cost-
effective technologies and practices at GSA facilities.
(2) REQUIREMENTS.—The program established
under this subsection shall—
(A) ensure centralized responsibility for the
coordination 
of 
cost 
reduction-related 
rec-
ommendations, practices, and activities of all
relevant Federal agencies;
(B) provide technical assistance and oper-
ational guidance to applicable tenants to achieve
the goal identified in subsection (c)(2)(B)(ii);
(C) establish methods to track the success of
Federal departments and agencies with respect to
that goal; and
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(D) be fully coordinated with and no less
stringent nor less energy-conserving or water-
conserving than required by other provisions of
this Act and other applicable law, including sec-
tions 321 through 324, 431 through 438, 461,
511 through 518, and 523 through 525 and
amendments made by those sections.
(c) ACCELERATED USE OF TECHNOLOGIES.—
(1) REVIEW.—
(A) IN GENERAL.—As part of the program
under this section, not later than 90 days after
the date of enactment of this Act, the Adminis-
trator shall conduct a review of—
(i) current use of cost-effective lighting
technologies and geothermal heat pumps in
GSA facilities; and
(ii) the availability to managers of
GSA facilities of cost-effective lighting tech-
nologies and geothermal heat pumps.
(B) REQUIREMENTS.—The review under
subparagraph (A) shall—
(i) examine the use of cost-effective
lighting 
technologies, 
geothermal 
heat
pumps, and other cost-effective technologies
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and practices by Federal agencies in GSA
facilities; and
(ii) as prepared in consultation with
the Administrator of the Environmental
Protection Agency, identify cost-effective
lighting technology and geothermal heat
pump technology standards that could be
used for all types of GSA facilities.
(2) REPLACEMENT.—
(A) IN GENERAL.—As part of the program
under this section, not later than 180 days after
the date of enactment of this Act, the Adminis-
trator shall establish, using available appropria-
tions and programs implementing sections 432
and 525 (and amendments made by those sec-
tions), a cost-effective lighting technology and
geothermal heat pump technology acceleration
program to achieve maximum feasible replace-
ment of existing lighting, heating, cooling tech-
nologies with cost-effective lighting technologies
and geothermal heat pump technologies in each
GSA facility. Such program shall fully comply
with the requirements of sections 321 through
324, 431 through 438, 461, 511 through 518, and
523 through 525 and amendments made by those
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sections and any other provisions of law, which
shall be applicable to the extent that they are
more stringent or would achieve greater energy
savings than required by this section.
(B) ACCELERATION PLAN TIMETABLE.—
(i) IN
GENERAL.—To implement the
program established under subparagraph
(A), not later than 1 year after the date of
enactment of this Act, the Administrator
shall establish a timetable of actions to com-
ply with the requirements of this section
and sections 431 through 435, whichever
achieves greater energy savings most expedi-
tiously, including milestones for specific ac-
tivities needed to replace existing lighting,
heating, cooling technologies with cost-effec-
tive lighting technologies and geothermal
heat pump technologies, to the maximum
extent feasible (including at the maximum
rate feasible), at each GSA facility.
(ii) GOAL.—The goal of the timetable
under clause (i) shall be to complete, using
available appropriations and programs im-
plementing sections 431 through 435 (and
amendments made by those sections), max-
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imum feasible replacement of existing light-
ing, heating, and cooling technologies with
cost-effective lighting technologies and geo-
thermal heat pump technologies consistent
with the requirements of this section and
sections 
431 
through 
435, 
whichever
achieves greater energy savings most expedi-
tiously. Notwithstanding any provision of
this section, such program shall fully com-
ply with the requirements of the Act includ-
ing sections 321 through 324, 431 through
438, 461, 511 through 518, and 523 through
525 and amendments made by those sec-
tions and other provisions of law, which
shall be applicable to the extent that they
are more stringent or would achieve greater
energy or water savings than required by
this section.
(d) GSA FACILITY TECHNOLOGIES AND PRACTICES.—
(1) IN GENERAL.—Not later than 180 days after
the date of enactment of this Act, and annually there-
after, the Administrator shall—
(A) ensure that a manager responsible for
implementing section 432 and for accelerating
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the use of cost-effective technologies and practices
is designated for each GSA facility; and
(B) submit to Congress a plan to comply
with section 432, this section, and other applica-
ble provisions of this Act and applicable law
with respect to energy and water conservation at
GSA facilities.
(2) MEASURES.—The plan shall implement
measures required by such other provisions of law in
accordance with those provisions, and shall imple-
ment the measures required by this section to the
maximum extent feasible (including at the maximum
rate feasible) using available appropriations and pro-
grams implementing sections 431 through 435 and
525 (and amendments made by those sections), by not
later than the date that is 5 years after the date of
enactment of this Act.
(3) CONTENTS OF PLAN.—The plan shall—
(A) with respect to cost-effective technologies
and practices—
(i) identify the specific activities need-
ed to comply with sections 431 through 435;
(ii) identify the specific activities need-
ed to achieve at least a 20-percent reduction
in operational costs through the application
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of cost-effective technologies and practices
from 2003 levels at GSA facilities by not
later than 5 years after the date of enact-
ment of this Act;
(iii) describe activities required and
carried out to estimate the funds necessary
to achieve the reduction described in clauses
(i) and (ii);
(B) include an estimate of the funds nec-
essary to carry out this section;
(C) describe the status of the implementa-
tion of cost-effective technologies and practices at
GSA facilities, including—
(i) the extent to which programs, in-
cluding the program established under sub-
section (b), are being carried out in accord-
ance with this subtitle; and
(ii) the status of funding requests and
appropriations for those programs;
(D) identify within the planning, budg-
eting, and construction processes, all types of
GSA facility-related procedures that inhibit new
and existing GSA facilities from implementing
cost-effective technologies;
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(E) recommend language for uniform stand-
ards for use by Federal agencies in imple-
menting cost-effective technologies and practices;
(F) in coordination with the Office of Man-
agement and Budget, review the budget process
for capital programs with respect to alternatives
for—
(i) implementing measures that will
assure that Federal agencies retain all iden-
tified savings accrued as a result of the use
of cost-effective technologies, consistent with
section 543(a)(1) of the National Energy
Conservation 
Policy 
Act 
(42 
U.S.C.
8253(a)(1), and other applicable law; and
(ii) identifying short- and long-term
cost savings that accrue from the use of cost-
effective technologies and practices;
(G) with respect to cost-effective technologies
and practices, achieve substantial operational
cost savings through the application of the tech-
nologies; and
(H) include recommendations to address
each of the matters, and a plan for implementa-
tion of each recommendation, described in sub-
paragraphs (A) through (G).
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(4) 
ADMINISTRATION.—Notwithstanding 
any
provision of this section, the program required under
this section shall fully comply with the requirements
of sections 321 through 324, 431 through 438, 461,
511 through 518, and 523 through 525 and amend-
ments made by those sections, which shall be applica-
ble to the extent that they are more stringent or would
achieve greater energy or water savings than required
by this section.
(e) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as are necessary
to carry out this section, to remain available until ex-
pended.
SEC. 440. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out
sections 434 through 439 and 482 $4,000,000 for each of
fiscal years 2008 through 2012, to remain available until
expended.
SEC. 441. PUBLIC BUILDING LIFE-CYCLE COSTS.
Section 544(a)(1) of the National Energy Conservation
Policy Act (42 U.S.C. 8254(a)(1)) is amended by striking
‘‘25’’ and inserting ‘‘40’’.
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Subtitle D—Industrial Energy
Efficiency
SEC. 451. INDUSTRIAL ENERGY EFFICIENCY.
(a) IN GENERAL.—Title III of the Energy Policy and
Conservation Act (42 U.S.C. 6291 et seq.) is amended by
inserting after part D the following:
‘‘PART E—INDUSTRIAL ENERGY EFFICIENCY
‘‘SEC. 371. DEFINITIONS.
‘‘In this part:
‘‘(1) 
ADMINISTRATOR.—The 
term 
‘Adminis-
trator’ means the Administrator of the Environ-
mental Protection Agency.
‘‘(2) COMBINED HEAT AND POWER.—The term
‘combined heat and power system’ means a facility
that—
‘‘(A) simultaneously and efficiently pro-
duces useful thermal energy and electricity; and
‘‘(B) recovers not less than 60 percent of the
energy value in the fuel (on a higher-heating-
value basis) in the form of useful thermal energy
and electricity.
‘‘(3) NET EXCESS POWER.—The term ‘net excess
power’ means, for any facility, recoverable waste en-
ergy recovered in the form of electricity in quantities
exceeding the total consumption of electricity at the
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specific time of generation on the site at which the fa-
cility is located.
‘‘(4) PROJECT.—The term ‘project’ means a re-
coverable waste energy project or a combined heat and
power system project.
‘‘(5) RECOVERABLE WASTE ENERGY.—The term
‘recoverable waste energy’ means waste energy from
which electricity or useful thermal energy may be re-
covered through modification of an existing facility or
addition of a new facility.
‘‘(6) REGISTRY.—The term ‘Registry’ means the
Registry of Recoverable Waste Energy Sources estab-
lished under section 372(d).
‘‘(7) USEFUL
THERMAL
ENERGY.—The term
‘useful thermal energy’ means energy—
‘‘(A) in the form of direct heat, steam, hot
water, or other thermal form that is used in pro-
duction and beneficial measures for heating,
cooling, humidity control, process use, or other
valid thermal end-use energy requirements; and
‘‘(B) for which fuel or electricity would oth-
erwise be consumed.
‘‘(8) WASTE ENERGY.—The term ‘waste energy’
means—
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‘‘(A) exhaust heat or flared gas from any
industrial process;
‘‘(B) waste gas or industrial tail gas that
would otherwise be flared, incinerated, or vented;
‘‘(C) a pressure drop in any gas, excluding
any pressure drop to a condenser that subse-
quently vents the resulting heat; and
‘‘(D) such other forms of waste energy as the
Administrator may determine.
‘‘(9) OTHER TERMS.—The terms ‘electric utility’,
‘nonregulated electric utility’, ‘State regulated electric
utility’, and other terms have the meanings given
those terms in title I of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2611 et seq.).
‘‘SEC. 372. SURVEY AND REGISTRY.
‘‘(a) RECOVERABLE WASTE ENERGY INVENTORY PRO-
GRAM.—
‘‘(1) IN GENERAL.—The Administrator, in co-
operation with the Secretary and State energy offices,
shall establish a recoverable waste energy inventory
program.
‘‘(2) SURVEY.—The program shall include—
‘‘(A) an ongoing survey of all major indus-
trial and large commercial combustion sources
in the United States (as defined by the Adminis-
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trator) and the sites at which the sources are lo-
cated; and
‘‘(B) a review of each source for the quan-
tity and quality of waste energy produced at the
source.
‘‘(b) CRITERIA.—
‘‘(1) IN
GENERAL.—Not later than 270 days
after the date of enactment of the Energy Independ-
ence and Security Act of 2007, the Administrator
shall publish a rule for establishing criteria for in-
cluding sites in the Registry.
‘‘(2) INCLUSIONS.—The criteria shall include—
‘‘(A) a requirement that, to be included in
the Registry, a project at the site shall be deter-
mined to be economically feasible by virtue of of-
fering a payback of invested costs not later than
5 years after the date of first full project oper-
ation (including incentives offered under this
part);
‘‘(B) standards to ensure that projects pro-
posed for inclusion in the Registry are not devel-
oped or used for the primary purpose of making
sales of excess electric power under the regulatory
provisions of this part; and
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‘‘(C) procedures for contesting the listing of
any source or site on the Registry by any State,
utility, or other interested person.
‘‘(c) TECHNICAL SUPPORT.—On the request of the
owner or operator of a source or site included in the Reg-
istry, the Secretary shall—
‘‘(1) provide to owners or operators of combus-
tion sources technical support; and
‘‘(2) offer partial funding (in an amount equal
to not more than 1⁄2 of total costs) for feasibility stud-
ies to confirm whether or not investment in recovery
of waste energy or combined heat and power at a
source would offer a payback period of 5 years or less.
‘‘(d) REGISTRY.—
‘‘(1) ESTABLISHMENT.—
‘‘(A) IN GENERAL.—Not later than 1 year
after the date of enactment of the Energy Inde-
pendence and Security Act of 2007, the Adminis-
trator shall establish a Registry of Recoverable
Waste Energy Sources, and sites on which the
sources are located, that meet the criteria estab-
lished under subsection (b).
‘‘(B) UPDATES; AVAILABILITY.—The Ad-
ministrator shall—
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‘‘(i) update the Registry on a regular
basis; and
‘‘(ii) make the Registry available to the
public on the website of the Environmental
Protection Agency.
‘‘(C) CONTESTING
LISTING.—Any State,
electric utility, or other interested person may
contest the listing of any source or site by sub-
mitting a petition to the Administrator.
‘‘(2) CONTENTS.—
‘‘(A) IN
GENERAL.—The Administrator
shall register and include on the Registry all
sites meeting the criteria established under sub-
section (b).
‘‘(B) QUANTITY
OF
RECOVERABLE
WASTE
ENERGY.—The Administrator shall—
‘‘(i) calculate the total quantities of po-
tentially recoverable waste energy from
sources at the sites, nationally and by
State; and
‘‘(ii) make public—
‘‘(I) the total quantities described
in clause (i); and
‘‘(II) information on the criteria
pollutant and greenhouse gas emissions
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savings that might be achieved with re-
covery of the waste energy from all
sources and sites listed on the Registry.
‘‘(3) AVAILABILITY OF INFORMATION.—
‘‘(A) IN
GENERAL.—The Administrator
shall notify owners or operators of recoverable
waste energy sources and sites listed on the Reg-
istry prior to publishing the listing.
‘‘(B) DETAILED
QUANTITATIVE
INFORMA-
TION.—
‘‘(i) IN GENERAL.—Except as provided
in clause (ii), the owner or operator of a
source at a site may elect to have detailed
quantitative information concerning the site
not made public by notifying the Adminis-
trator of the election.
‘‘(ii) LIMITED AVAILABILITY.—The in-
formation shall be made available to—
‘‘(I) the applicable State energy
office; and
‘‘(II) any utility requested to sup-
port recovery of waste energy from the
source pursuant to the incentives pro-
vided under section 374.
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‘‘(iii) 
STATE
TOTALS.—Information
concerning the site shall be included in the
total quantity of recoverable waste energy
for a State unless there are fewer than 3
sites in the State.
‘‘(4) REMOVAL OF PROJECTS FROM REGISTRY.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), as a project achieves successful recov-
ery of waste energy, the Administrator shall—
‘‘(i) remove the related sites or sources
from the Registry; and
‘‘(ii) designate the removed projects as
eligible for incentives under section 374.
‘‘(B) LIMITATION.—No project shall be re-
moved from the Registry without the consent of
the owner or operator of the project if—
‘‘(i) the owner or operator has sub-
mitted a petition under section 374; and
‘‘(ii) the petition has not been acted on
or denied.
‘‘(5) INELIGIBILITY OF CERTAIN SOURCES.—The
Administrator shall not list any source constructed
after the date of the enactment of the Energy Inde-
pendence and Security Act of 2007 on the Registry if
the Administrator determines that the source—
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‘‘(A) was developed for the primary purpose
of making sales of excess electric power under the
regulatory provisions of this part; or
‘‘(B) does not capture at least 60 percent of
the total energy value of the fuels used (on a
higher-heating-value basis) in the form of useful
thermal energy, electricity, mechanical energy,
chemical output, or any combination thereof.
‘‘(e) SELF-CERTIFICATION.—
‘‘(1) IN GENERAL.—Subject to any procedures
that are established by the Administrator, an owner,
operator, or third-party developer of a recoverable
waste energy project that qualifies under standards
established by the Administrator may self-certify the
sites or sources of the owner, operator, or developer to
the Administrator for inclusion in the Registry.
‘‘(2) REVIEW
AND
APPROVAL.—To prevent a
fraudulent listing, a site or source shall be included
on the Registry only if the Administrator reviews and
approves the self-certification.
‘‘(f) NEW FACILITIES.—As a new energy-consuming
industrial facility is developed after the date of enactment
of the Energy Independence and Security Act of 2007, to
the extent the facility may constitute a site with recoverable
waste energy that may qualify for inclusion on the Reg-
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istry, the Administrator may elect to include the facility
on the Registry, at the request of the owner, operator, or
developer of the facility, on a conditional basis with the
site to be removed from the Registry if the development
ceases or the site fails to qualify for listing under this part.
‘‘(g) OPTIMUM MEANS OF RECOVERY.—For each site
listed in the Registry, at the request of the owner or operator
of the site, the Administrator shall offer, in cooperation with
Clean Energy Application Centers operated by the Sec-
retary of Energy, suggestions for optimum means of recov-
ery of value from waste energy stream in the form of elec-
tricity, useful thermal energy, or other energy-related prod-
ucts.
‘‘(h) REVISION.—Each annual report of a State under
section 548(a) of the National Energy Conservation Policy
Act (42 U.S.C. 8258(a)) shall include the results of the sur-
vey for the State under this section.
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to—
‘‘(1) the Administrator to create and maintain
the Registry and services authorized by this section,
$1,000,000 for each of fiscal years 2008 through 2012;
and
‘‘(2) the Secretary—
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‘‘(A) to assist site or source owners and op-
erators in determining the feasibility of projects
authorized by this section, $2,000,000 for each of
fiscal years 2008 through 2012; and
‘‘(B) to provide funding for State energy of-
fice functions under this section, $5,000,000.
‘‘SEC. 373. WASTE ENERGY RECOVERY INCENTIVE GRANT
PROGRAM.
‘‘(a) ESTABLISHMENT.—The Secretary shall establish
in the Department of Energy a waste energy recovery incen-
tive grant program to provide incentive grants to—
‘‘(1) owners and operators of projects that suc-
cessfully produce electricity or incremental useful
thermal energy from waste energy recovery;
‘‘(2) utilities purchasing or distributing the elec-
tricity; and
‘‘(3) States that have achieved 80 percent or
more of recoverable waste heat recovery opportunities.
‘‘(b) GRANTS TO PROJECTS AND UTILITIES.—
‘‘(1) IN
GENERAL.—The Secretary shall make
grants under this section—
‘‘(A) to the owners or operators of waste en-
ergy recovery projects; and
‘‘(B) in the case of excess power purchased
or transmitted by a electric utility, to the utility.
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‘‘(2) PROOF.—Grants may only be made under
this section on receipt of proof of waste energy recov-
ery or excess electricity generation, or both, from the
project in a form prescribed by the Secretary.
‘‘(3) EXCESS ELECTRIC ENERGY.—
‘‘(A) IN GENERAL.—In the case of waste en-
ergy recovery, a grant under this section shall be
made at the rate of $10 per megawatt hour of
documented electricity produced from recoverable
waste energy (or by prevention of waste energy
in the case of a new facility) by the project dur-
ing the first 3 calendar years of production, be-
ginning on or after the date of enactment of the
Energy Independence and Security Act of 2007.
‘‘(B) UTILITIES.—If the project produces
net excess power and an electric utility pur-
chases or transmits the excess power, 50 percent
of so much of the grant as is attributable to the
net excess power shall be paid to the electric util-
ity purchasing or transporting the net excess
power.
‘‘(4) USEFUL THERMAL ENERGY.—In the case of
waste energy recovery that produces useful thermal
energy that is used for a purpose different from that
for which the project is principally designed, a grant
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under this section shall be made to the owner or oper-
ator of the waste energy recovery project at the rate
of $10 for each 3,412,000 Btus of the excess thermal
energy used for the different purpose.
‘‘(c) GRANTS TO STATES.—In the case of any State
that has achieved 80 percent or more of waste heat recovery
opportunities identified by the Secretary under this part,
the Administrator shall make a 1-time grant to the State
in an amount of not more than $1,000 per megawatt of
waste-heat capacity recovered (or a thermal equivalent) to
support State-level programs to identify and achieve addi-
tional energy efficiency.
‘‘(d) ELIGIBILITY.—The Secretary shall—
‘‘(1) establish rules and guidelines to establish
eligibility for grants under subsection (b);
‘‘(2) publicize the availability of the grant pro-
gram known to owners or operators of recoverable
waste energy sources and sites listed on the Registry;
and
‘‘(3) award grants under the program on the
basis of the merits of each project in recovering or
preventing waste energy throughout the United States
on an impartial, objective, and not unduly discrimi-
natory basis.
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‘‘(e) LIMITATION.—The Secretary shall not award
grants to any person for a combined heat and power project
or a waste heat recovery project that qualifies for specific
Federal tax incentives for combined heat and power or for
waste heat recovery.
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary—
‘‘(1) to make grants to projects and utilities
under subsection (b)—
‘‘(A) $100,000,000 for fiscal year 2008 and
$200,000,000 for each of fiscal years 2009
through 2012; and
‘‘(B) such additional amounts for fiscal
year 2008 and each fiscal year thereafter as may
be necessary for administration of the waste en-
ergy recovery incentive grant program; and
‘‘(2) to make grants to States under subsection
(b), $10,000,000 for each of fiscal years 2008 through
2012, to remain available until expended.
‘‘SEC. 374. ADDITIONAL INCENTIVES FOR RECOVERY, USE,
AND PREVENTION OF INDUSTRIAL WASTE EN-
ERGY.
‘‘(a) CONSIDERATION OF STANDARD.—
‘‘(1) IN
GENERAL.—Not later than 180 days
after the receipt by a State regulatory authority (with
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respect to each electric utility for which the authority
has ratemaking authority), or nonregulated electric
utility, of a request from a project sponsor or owner
or operator, the State regulatory authority or non-
regulated electric utility shall—
‘‘(A) provide public notice and conduct a
hearing respecting the standard established by
subsection (b); and
‘‘(B) on the basis of the hearing, consider
and make a determination whether or not it is
appropriate to implement the standard to carry
out the purposes of this part.
‘‘(2) RELATIONSHIP TO STATE LAW.—For pur-
poses of any determination under paragraph (1) and
any review of the determination in any court, the
purposes of this section supplement otherwise applica-
ble State law.
‘‘(3) NONADOPTION OF STANDARD.—Nothing in
this part prohibits any State regulatory authority or
nonregulated electric utility from making any deter-
mination that it is not appropriate to adopt any
standard described in paragraph (1), pursuant to au-
thority under otherwise applicable State law.
‘‘(b) STANDARD FOR SALES OF EXCESS POWER.—For
purposes of this section, the standard referred to in sub-
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section (a) shall provide that an owner or operator of a
waste energy recovery project identified on the Registry that
generates net excess power shall be eligible to benefit from
at least 1 of the options described in subsection (c) for dis-
posal of the net excess power in accordance with the rate
conditions and limitations described in subsection (d).
‘‘(c) OPTIONS.—The options referred to in subsection
(b) are as follows:
‘‘(1) SALE OF NET EXCESS POWER TO UTILITY.—
The electric utility shall purchase the net excess power
from the owner or operator of the eligible waste en-
ergy recovery project during the operation of the
project under a contract entered into for that purpose.
‘‘(2) TRANSPORT BY UTILITY FOR DIRECT SALE
TO THIRD PARTY.—The electric utility shall transmit
the net excess power on behalf of the project owner or
operator to up to 3 separate locations on the system
of the utility for direct sale by the owner or operator
to third parties at those locations.
‘‘(3) TRANSPORT OVER PRIVATE TRANSMISSION
LINES.—The State and the electric utility shall per-
mit, and shall waive or modify such laws as would
otherwise prohibit, the construction and operation of
private electric wires constructed, owned, and oper-
ated by the project owner or operator, to transport the
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power to up to 3 purchasers within a 3-mile radius
of the project, allowing the wires to use or cross public
rights-of-way, without subjecting the project to regula-
tion as a public utility, and according the wires the
same treatment for safety, zoning, land use, and other
legal privileges as apply or would apply to the wires
of the utility, except that—
‘‘(A) there shall be no grant of any power
of eminent domain to take or cross private prop-
erty for the wires; and
‘‘(B) the wires shall be physically segregated
and not interconnected with any portion of the
system of the utility, except on the customer side
of the revenue meter of the utility and in a man-
ner that precludes any possible export of the elec-
tricity onto the utility system, or disruption of
the system.
‘‘(4) AGREED
ON
ALTERNATIVES.—The utility
and the owner or operator of the project may reach
agreement on any alternate arrangement and pay-
ments or rates associated with the arrangement that
is mutually satisfactory and in accord with State
law.
‘‘(d) RATE CONDITIONS AND CRITERIA.—
‘‘(1) DEFINITIONS.—In this subsection:
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‘‘(A) PER UNIT DISTRIBUTION COSTS.—The
term ‘per unit distribution costs’ means (in kilo-
watt hours) the quotient obtained by dividing—
‘‘(i) the depreciated book-value dis-
tribution system costs of a utility; by
‘‘(ii) the volume of utility electricity
sales or transmission during the previous
year at the distribution level.
‘‘(B) PER UNIT DISTRIBUTION MARGIN.—
The 
term 
‘per 
unit 
distribution 
margin’
means—
‘‘(i) in the case of a State-regulated
electric utility, a per-unit gross pretax prof-
it equal to the product obtained by
multiplying—
‘‘(I) the State-approved percentage
rate of return for the utility for dis-
tribution system assets; by
‘‘(II) the per unit distribution
costs; and
‘‘(ii) in the case of a nonregulated util-
ity, a per unit contribution to net revenues
determined multiplying—
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‘‘(I) the percentage (but not less
than 
percent) 
obtained 
by
dividing—
‘‘(aa) the amount of any net
revenue payment or contribution
to the owners or subscribers of the
nonregulated utility during the
prior year; by
‘‘(bb) the gross revenues of
the utility during the prior year
to obtain a percentage; by
‘‘(II) the per unit distribution
costs.
‘‘(C) PER UNIT TRANSMISSION COSTS.—The
term ‘per unit transmission costs’ means the
total cost of those transmission services pur-
chased or provided by a utility on a per-kilo-
watt-hour basis as included in the retail rate of
the utility.
‘‘(2) OPTIONS.—The options described in para-
graphs (1) and (2) in subsection (c) shall be offered
under purchase and transport rate conditions that re-
flect the rate components defined under paragraph (1)
as applicable under the circumstances described in
paragraph (3).
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‘‘(3) APPLICABLE RATES.—
‘‘(A) RATES APPLICABLE TO SALE OF NET
EXCESS POWER.—
‘‘(i) IN GENERAL.—Sales made by a
project owner or operator of a facility under
the option described in subsection (c)(1)
shall be paid for on a per kilowatt hour
basis that shall equal the full undiscounted
retail rate paid to the utility for power pur-
chased by the facility minus per unit dis-
tribution costs, that applies to the type of
utility purchasing the power.
‘‘(ii) VOLTAGES EXCEEDING 25 KILO-
VOLTS.—If the net excess power is made
available for purchase at voltages that must
be transformed to or from voltages exceeding
25 kilovolts to be available for resale by the
utility, the purchase price shall further be
reduced by per unit transmission costs.
‘‘(B) RATES APPLICABLE TO TRANSPORT BY
UTILITY FOR DIRECT SALE TO THIRD PARTIES.—
‘‘(i) IN GENERAL.—Transportation by
utilities of power on behalf of the owner or
operator of a project under the option de-
scribed in subsection (c)(2) shall incur a
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transportation rate that shall equal the per
unit distribution costs and per unit dis-
tribution margin, that applies to the type of
utility transporting the power.
‘‘(ii) VOLTAGES EXCEEDING 25 KILO-
VOLTS.—If the net excess power is made
available for transportation at voltages that
must be transformed to or from voltages ex-
ceeding 25 kilovolts to be transported to the
designated 
third-party 
purchasers, 
the
transport rate shall further be increased by
per unit transmission costs.
‘‘(iii) STATES WITH COMPETITIVE RE-
TAIL
MARKETS
FOR
ELECTRICITY.—In a
State with a competitive retail market for
electricity, the applicable transportation
rate for similar transportation shall be ap-
plied in lieu of any rate calculated under
this paragraph.
‘‘(4) LIMITATIONS.—
‘‘(A) IN GENERAL.—Any rate established for
sale or transportation under this section shall—
‘‘(i) be modified over time with
changes in the underlying costs or rates of
the electric utility; and
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‘‘(ii) reflect the same time-sensitivity
and billing periods as are established in the
retail sales or transportation rates offered
by the utility.
‘‘(B) LIMITATION.—No utility shall be re-
quired to purchase or transport a quantity of net
excess power under this section that exceeds the
available capacity of the wires, meter, or other
equipment of the electric utility serving the site
unless the owner or operator of the project agrees
to pay necessary and reasonable upgrade costs.
‘‘(e) PROCEDURAL REQUIREMENTS
FOR CONSIDER-
ATION AND DETERMINATION.—
‘‘(1) PUBLIC NOTICE AND HEARING.—
‘‘(A) IN GENERAL.—The consideration re-
ferred to in subsection (a) shall be made after
public notice and hearing.
‘‘(B) ADMINISTRATION.—The determination
referred to in subsection (a) shall be—
‘‘(i) in writing;
‘‘(ii) based on findings included in the
determination and on the evidence presented
at the hearing; and
‘‘(iii) available to the public.
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‘‘(2) INTERVENTION
BY
ADMINISTRATOR.—The
Administrator may intervene as a matter of right in
a proceeding conducted under this section—
‘‘(A) to calculate—
‘‘(i) the energy and emissions likely to
be saved by electing to adopt 1 or more of
the options; and
‘‘(ii) the costs and benefits to rate-
payers and the utility; and
‘‘(B) to advocate for the waste-energy recov-
ery opportunity.
‘‘(3) PROCEDURES.—
‘‘(A) IN
GENERAL.—Except as otherwise
provided in paragraphs (1) and (2), the proce-
dures for the consideration and determination
referred to in subsection (a) shall be the proce-
dures established by the State regulatory author-
ity or the nonregulated electric utility.
‘‘(B) MULTIPLE
PROJECTS.—If there is
more than 1 project seeking consideration simul-
taneously in connection with the same utility,
the proceeding may encompass all such projects,
if full attention is paid to individual cir-
cumstances and merits and an individual judg-
ment is reached with respect to each project.
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‘‘(f) IMPLEMENTATION.—
‘‘(1) IN GENERAL.—The State regulatory author-
ity (with respect to each electric utility for which the
authority has ratemaking authority) or nonregulated
electric utility may, to the extent consistent with oth-
erwise applicable State law—
‘‘(A) implement the standard determined
under this section; or
‘‘(B) decline to implement any such stand-
ard.
‘‘(2) NONIMPLEMENTATION OF STANDARD.—
‘‘(A) IN GENERAL.—If a State regulatory
authority (with respect to each electric utility for
which the authority has ratemaking authority)
or nonregulated electric utility declines to imple-
ment any standard established by this section,
the authority or nonregulated electric utility
shall state in writing the reasons for declining to
implement the standard.
‘‘(B) AVAILABILITY TO PUBLIC.—The state-
ment of reasons shall be available to the public.
‘‘(C) ANNUAL REPORT.—The Administrator
shall include in an annual report submitted to
Congress a description of the lost opportunities
for waste-heat recovery from the project described
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in subparagraph (A), specifically identifying the
utility and stating the quantity of lost energy
and emissions savings calculated.
‘‘(D) NEW PETITION.—If a State regulatory
authority (with respect to each electric utility for
which the authority has ratemaking authority)
or nonregulated electric utility declines to imple-
ment the standard established by this section, the
project sponsor may submit a new petition
under this section with respect to the project at
any time after the date that is 2 years after the
date on which the State regulatory authority or
nonregulated utility declined to implement the
standard.
‘‘SEC. 375. CLEAN ENERGY APPLICATION CENTERS.
‘‘(a) RENAMING.—
‘‘(1) IN
GENERAL.—The Combined Heat and
Power Application Centers of the Department of En-
ergy are redesignated as Clean Energy Application
Centers.
‘‘(2) REFERENCES.—Any reference in any law,
rule, regulation, or publication to a Combined Heat
and Power Application Center shall be treated as a
reference to a Clean Energy Application Center.
‘‘(b) RELOCATION.—
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‘‘(1) IN GENERAL.—In order to better coordinate
efforts with the separate Industrial Assessment Cen-
ters and to ensure that the energy efficiency and,
when applicable, the renewable nature of deploying
mature clean energy technology is fully accounted for,
the Secretary shall relocate the administration of the
Clean Energy Application Centers to the Office of En-
ergy Efficiency and Renewable Energy within the De-
partment of Energy.
‘‘(2) OFFICE OF ELECTRICITY DELIVERY AND EN-
ERGY RELIABILITY.—The Office of Electricity Deliv-
ery and Energy Reliability shall—
‘‘(A) continue to perform work on the role
of technology described in paragraph (1) in sup-
port of the grid and the reliability and security
of the technology; and
‘‘(B) shall assist the Clean Energy Applica-
tion Centers in the work of the Centers with re-
gard to the grid and with electric utilities.
‘‘(c) GRANTS.—
‘‘(1) IN
GENERAL.—The Secretary shall make
grants to universities, research centers, and other ap-
propriate institutions to ensure the continued oper-
ations and effectiveness of 8 Regional Clean Energy
Application Centers in each of the following regions
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(as designated for such purposes as of the date of the
enactment of the Energy Independence and Security
Act of 2007):
‘‘(A) Gulf Coast.
‘‘(B) Intermountain.
‘‘(C) Mid-Atlantic.
‘‘(D) Midwest.
‘‘(E) Northeast.
‘‘(F) Northwest.
‘‘(G) Pacific.
‘‘(H) Southeast.
‘‘(2) ESTABLISHMENT OF GOALS AND COMPLI-
ANCE.—In making grants under this subsection, the
Secretary shall ensure that sufficient goals are estab-
lished and met by each Center throughout the pro-
gram duration concerning outreach and technology
deployment.
‘‘(d) ACTIVITIES.—
‘‘(1) IN GENERAL.—Each Clean Energy Applica-
tion Center shall—
‘‘(A) operate a program to encourage de-
ployment of clean energy technologies through
education and outreach to building and indus-
trial professionals; and other individuals and or-
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ganizations with an interest in efficient energy
use; and
‘‘(B) provide project specific support to
building and industrial professionals through as-
sessments and advisory activities.
‘‘(2) TYPES OF ACTIVITIES.—Funds made avail-
able under this section may be used—
‘‘(A) to develop and distribute informa-
tional materials on clean energy technologies, in-
cluding continuation of the 8 websites in exist-
ence on the date of enactment of the Energy
Independence and Security Act of 2007;
‘‘(B) to develop and conduct target market
workshops, seminars, internet programs, and
other activities to educate end users, regulators,
and stakeholders in a manner that leads to the
deployment of clean energy technologies;
‘‘(C) to provide or coordinate onsite assess-
ments for sites and enterprises that may consider
deployment of clean energy technology;
‘‘(D) to perform market research to identify
high profile candidates for clean energy deploy-
ment;
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‘‘(E) to provide consulting support to sites
considering deployment of clean energy tech-
nologies;
‘‘(F) to assist organizations developing
clean energy technologies to overcome barriers to
deployment; and
‘‘(G) to assist companies and organizations
with performance evaluations of any clean en-
ergy technology implemented.
‘‘(e) DURATION.—
‘‘(1) IN GENERAL.—A grant awarded under this
section shall be for a period of 5 years
‘‘(2) ANNUAL EVALUATIONS.—Each grant shall
be evaluated annually for the continuation of the
grant based on the activities and results of the grant.
‘‘(f) AUTHORIZATION.—There is authorized to be ap-
propriated to carry out this section $10,000,000 for each
of fiscal years 2008 through 2012.’’.
(b) TABLE OF CONTENTS.—The table of contents of the
Energy Policy and Conservation Act (42 U.S.C. prec. 6201)
is amended by inserting after the items relating to part D
of title III the following:
‘‘PART E—INDUSTRIAL ENERGY EFFICIENCY
‘‘Sec. 371. Definitions.
‘‘Sec. 372. Survey and Registry.
‘‘Sec. 373.Waste energy recovery incentive grant program.
‘‘Sec. 374. Additional incentives for recovery, utilization and prevention of indus-
trial waste energy.
‘‘Sec. 375. Clean Energy Application Centers.’’.
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SEC. 452. ENERGY-INTENSIVE INDUSTRIES PROGRAM.
(a) DEFINITIONS.—In this section:
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means—
(A) an energy-intensive industry;
(B) a national trade association rep-
resenting an energy-intensive industry; or
(C) a person acting on behalf of 1 or more
energy-intensive industries or sectors, as deter-
mined by the Secretary.
(2) ENERGY-INTENSIVE
INDUSTRY.—The term
‘‘energy-intensive industry’’ means an industry that
uses significant quantities of energy as part of its
primary economic activities, including—
(A) information technology, including data
centers containing electrical equipment used in
processing, storing, and transmitting digital in-
formation;
(B) consumer product manufacturing;
(C) food processing;
(D) materials manufacturers, including—
(i) aluminum;
(ii) chemicals;
(iii) forest and paper products;
(iv) metal casting;
(v) glass;
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(vi) petroleum refining;
(vii) mining; and
(viii) steel;
(E) other energy-intensive industries, as de-
termined by the Secretary.
(3) FEEDSTOCK.—The term ‘‘feedstock’’ means
the raw material supplied for use in manufacturing,
chemical, and biological processes.
(4) PARTNERSHIP.—The term ‘‘partnership’’
means an energy efficiency partnership established
under subsection (c)(1)(A).
(5) PROGRAM.—The term ‘‘program’’ means the
energy-intensive industries program established under
subsection (b).
(b) ESTABLISHMENT
OF PROGRAM.—The Secretary
shall establish a program under which the Secretary, in co-
operation with energy-intensive industries and national in-
dustry trade associations representing the energy-intensive
industries, shall support, research, develop, and promote the
use of new materials processes, technologies, and techniques
to optimize energy efficiency and the economic competitive-
ness of the United States’ industrial and commercial sec-
tors.
(c) PARTNERSHIPS.—
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(1) IN GENERAL.—As part of the program, the
Secretary shall establish energy efficiency partner-
ships between the Secretary and eligible entities to
conduct research on, develop, and demonstrate new
processes, technologies, and operating practices and
techniques to significantly improve the energy effi-
ciency of equipment and processes used by energy-in-
tensive industries, including the conduct of activities
to—
(A) increase the energy efficiency of indus-
trial processes and facilities;
(B) research, develop, and demonstrate ad-
vanced technologies capable of energy intensity
reductions and increased environmental perform-
ance; and
(C) promote the use of the processes, tech-
nologies, and techniques described in subpara-
graphs (A) and (B).
(2) ELIGIBLE ACTIVITIES.—Partnership activi-
ties eligible for funding under this subsection
include—
(A) feedstock and recycling research, devel-
opment, and demonstration activities to identify
and promote—
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(i) opportunities for meeting industry
feedstock requirements with more energy ef-
ficient and flexible sources of feedstock or
energy supply;
(ii) strategies to develop and deploy
technologies that improve the quality and
quantity of feedstocks recovered from process
and waste streams; and
(iii) other methods using recycling,
reuse, and improved industrial materials;
(B) research to develop and demonstrate
technologies and processes that utilize alternative
energy sources to supply heat, power, and new
feedstocks for energy-intensive industries;
(C) research to achieve energy efficiency in
steam, power, control system, and process heat
technologies, and in other manufacturing proc-
esses; and
(D) industrial and commercial energy effi-
ciency and sustainability assessments to—
(i) assist individual industrial and
commercial sectors in developing tools, tech-
niques, and methodologies to assess—
(I) the unique processes and fa-
cilities of the sectors;
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(II) the energy utilization require-
ments of the sectors; and
(III) the application of new, more
energy efficient technologies; and
(ii) conduct energy savings assess-
ments;
(E) the incorporation of technologies and
innovations that would significantly improve the
energy efficiency and utilization of energy-inten-
sive commercial applications; and
(F) any other activities that the Secretary
determines to be appropriate.
(3) PROPOSALS.—
(A) IN GENERAL.—To be eligible for fund-
ing under this subsection, a partnership shall
submit to the Secretary a proposal that describes
the proposed research, development, or dem-
onstration activity to be conducted by the part-
nership.
(B) REVIEW.—After reviewing the scientific,
technical, and commercial merit of a proposals
submitted under subparagraph (A), the Secretary
shall approve or disapprove the proposal.
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(C) COMPETITIVE AWARDS.—The provision
of funding under this subsection shall be on a
competitive basis.
(4) COST-SHARING REQUIREMENT.—In carrying
out this section, the Secretary shall require cost shar-
ing in accordance with section 988 of the Energy Pol-
icy Act of 2005 (42 U.S.C. 16352).
(d) GRANTS.—The Secretary may award competitive
grants for innovative technology research, development and
demonstrations to universities, individual inventors, and
small companies, based on energy savings potential, com-
mercial viability, and technical merit.
(e) INSTITUTION OF HIGHER EDUCATION-BASED IN-
DUSTRIAL RESEARCH AND ASSESSMENT CENTERS.—The
Secretary shall provide funding to institution of higher edu-
cation-based industrial research and assessment centers,
whose purpose shall be—
(1) to identify opportunities for optimizing en-
ergy efficiency and environmental performance;
(2) to promote applications of emerging concepts
and technologies in small and medium-sized manufac-
turers;
(3) to promote research and development for the
use of alternative energy sources to supply heat,
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power, and new feedstocks for energy-intensive indus-
tries;
(4) to coordinate with appropriate Federal and
State research offices, and provide a clearinghouse for
industrial process and energy efficiency technical as-
sistance resources; and
(5) to coordinate with State-accredited technical
training centers and community colleges, while ensur-
ing appropriate services to all regions of the United
States.
(f) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There are authorized to be ap-
propriated to the Secretary to carry out this section—
(A) $184,000,000 for fiscal year 2008;
(B) $190,000,000 for fiscal year 2009;
(C) $196,000,000 for fiscal year 2010;
(D) $202,000,000 for fiscal year 2011;
(E) $208,000,000 for fiscal year 2012; and
(F) such sums as are necessary for fiscal
year 2013 and each fiscal year thereafter.
(2) PARTNERSHIP ACTIVITIES.—Of the amounts
made available under paragraph (1), not less than 50
percent shall be used to pay the Federal share of part-
nership activities under subsection (c).
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(3) COORDINATION AND NONDUPLICATION.—The
Secretary shall coordinate efforts under this section
with other programs of the Department and other
Federal agencies to avoid duplication of effort.
SEC. 453. ENERGY EFFICIENCY FOR DATA CENTER BUILD-
INGS.
(a) DEFINITIONS.—In this section:
(1) DATA
CENTER.—The term ‘‘data center’’
means any facility that primarily contains electronic
equipment used to process, store, and transmit digital
information, which may be—
(A) a free-standing structure; or
(B) a facility within a larger structure,
that uses environmental control equipment to
maintain the proper conditions for the operation
of electronic equipment.
(2) DATA CENTER OPERATOR.—The term ‘‘data
center operator’’ means any person or government en-
tity that builds or operates a data center or purchases
data center services, equipment, and facilities.
(b) VOLUNTARY NATIONAL INFORMATION PROGRAM.—
(1) IN GENERAL.—Not later than 90 days after
the date of enactment of this Act, the Secretary and
the Administrator of the Environmental Protection
Agency shall, after consulting with information tech-
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nology industry and other interested parties, initiate
a voluntary national information program for those
types of data centers and data center equipment and
facilities that are widely used and for which there is
a potential for significant data center energy savings
as a result of the program.
(2) REQUIREMENTS.—The program described in
paragraph (1) shall—
(A) address data center efficiency holis-
tically, reflecting the total energy consumption of
data centers as whole systems, including both
equipment and facilities;
(B) consider prior work and studies under-
taken in this area, including by the Environ-
mental Protection Agency and the Department of
Energy;
(C) consistent with the objectives described
in paragraph (1), determine the type of data
center and data center equipment and facilities
to be covered under the program;
(D) produce specifications, measurements,
best practices, and benchmarks that will enable
data center operators to make more informed de-
cisions about the energy efficiency and costs of
data centers, and that take into account—
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(i) the performance and use of servers,
data storage devices, and other information
technology equipment;
(ii) the efficiency of heating, ventila-
tion, and air conditioning, cooling, and
power conditioning systems, provided that
no modification shall be required of a
standard then in effect under the Energy
Policy and Conservation Act (42 U.S.C.
6201 et seq.) for any covered heating, ven-
tilation, air-conditioning, cooling or power-
conditioning product;
(iii) energy savings from the adoption
of software and data management tech-
niques; and
(iv) other factors determined by the or-
ganization described in subsection (c);
(E) allow for creation of separate specifica-
tions, measurements, and benchmarks based on
data center size and function, as well as other
appropriate characteristics;
(F) advance the design and implementation
of efficiency technologies to the maximum extent
economically practical;
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(G) provide to data center operators in the
private sector and the Federal Government infor-
mation about best practices and purchasing deci-
sions that reduce the energy consumption of data
centers; and
(H) publish the information described in
subparagraph (G), which may be disseminated
through catalogs, trade publications, the Inter-
net, or other mechanisms, that will allow data
center operators to assess the energy consumption
and potential cost savings of alternative data
centers and data center equipment and facilities.
(3) PROCEDURES.—The program described in
paragraph (1) shall be developed in consultation with
and coordinated by the organization described in sub-
section (c) according to commonly accepted proce-
dures for the development of specifications, measure-
ments, and benchmarks.
(c) DATA CENTER EFFICIENCY ORGANIZATION.—
(1) IN GENERAL.—After the establishment of the
program described in subsection (b), the Secretary
and the Administrator shall jointly designate an in-
formation technology industry organization to consult
with and to coordinate the program.