[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 535 Enrolled Bill (ENR)]

        S.535

                     One Hundred Fourteenth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
           the sixth day of January, two thousand and fifteen


                                 An Act


 
                      To promote energy efficiency.

    Be it enacted by the Senate and House of Representatives 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 ``Energy Efficiency 
Improvement Act of 2015''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

                        TITLE I--BETTER BUILDINGS

Sec. 101. Short title.
Sec. 102. Energy efficiency in Federal and other buildings.
Sec. 103. Separate spaces with high-performance energy efficiency 
          measures.
Sec. 104. Tenant Star program.

                  TITLE II--GRID-ENABLED WATER HEATERS

Sec. 201. Grid-enabled water heaters.

         TITLE III--ENERGY INFORMATION FOR COMMERCIAL BUILDINGS

Sec. 301. Energy information for commercial buildings.

                       TITLE I--BETTER BUILDINGS

    SEC. 101. SHORT TITLE.
    This title may be cited as the ``Better Buildings Act of 2015''.
    SEC. 102. ENERGY EFFICIENCY IN FEDERAL AND OTHER BUILDINGS.
    (a) Definitions.--In this section:
        (1) Administrator.--The term ``Administrator'' means the 
    Administrator of General Services.
        (2) Cost-effective energy efficiency measure.--The term ``cost-
    effective energy efficiency measure'' means any building product, 
    material, equipment, or service, and the installing, implementing, 
    or operating thereof, that provides energy savings in an amount 
    that is not less than the cost of such installing, implementing, or 
    operating.
        (3) Cost-effective water efficiency measure.--The term ``cost-
    effective water efficiency measure'' means any building product, 
    material, equipment, or service, and the installing, implementing, 
    or operating thereof, that provides water savings in an amount that 
    is not less than the cost of such installing, implementing, or 
    operating.
    (b) Model Provisions, Policies, and Best Practices.--
        (1) In general.--Not later than 180 days after the date of 
    enactment of this Act, the Administrator, in consultation with the 
    Secretary of Energy and after providing the public with an 
    opportunity for notice and comment, shall develop model commercial 
    leasing provisions and best practices in accordance with this 
    subsection.
        (2) Commercial leasing.--
            (A) In general.--The model commercial leasing provisions 
        developed under this subsection shall, at a minimum, align the 
        interests of building owners and tenants with regard to 
        investments in cost-effective energy efficiency measures and 
        cost-effective water efficiency measures to encourage building 
        owners and tenants to collaborate to invest in such measures.
            (B) Use of model provisions.--The Administrator may use the 
        model commercial leasing provisions developed under this 
        subsection in any standard leasing document that designates a 
        Federal agency (or other client of the Administrator) as a 
        landlord or tenant.
            (C) Publication.--The Administrator shall periodically 
        publish the model commercial leasing provisions developed under 
        this subsection, along with explanatory materials, to encourage 
        building owners and tenants in the private sector to use such 
        provisions and materials.
        (3) Realty services.--The Administrator shall develop policies 
    and practices to implement cost-effective energy efficiency 
    measures and cost-effective water efficiency measures for the 
    realty services provided by the Administrator to Federal agencies 
    (or other clients of the Administrator), including periodic 
    training of appropriate Federal employees and contractors on how to 
    identify and evaluate those measures.
        (4) State and local assistance.--The Administrator, in 
    consultation with the Secretary of Energy, shall make available 
    model commercial leasing provisions and best practices developed 
    under this subsection to State, county, and municipal governments 
    for use in managing owned and leased building space in accordance 
    with the goal of encouraging investment in all cost-effective 
    energy efficiency measures and cost-effective water efficiency 
    measures.
    SEC. 103. SEPARATE SPACES WITH HIGH-PERFORMANCE ENERGY EFFICIENCY 
      MEASURES.
    (a) In General.--Subtitle B of title IV of the Energy Independence 
and Security Act of 2007 (42 U.S.C. 17081 et seq.) is amended by adding 
at the end the following:
    ``SEC. 424. SEPARATE SPACES WITH HIGH-PERFORMANCE ENERGY EFFICIENCY 
      MEASURES.
    ``(a) Definitions.--In this section:
        ``(1) High-performance energy efficiency measure.--The term 
    `high-performance energy efficiency measure' means a technology, 
    product, or practice that will result in substantial operational 
    cost savings by reducing energy consumption and utility costs.
        ``(2) Separate spaces.--The term `separate spaces' means areas 
    within a commercial building that are leased or otherwise occupied 
    by a tenant or other occupant for a period of time pursuant to the 
    terms of a written agreement.
    ``(b) Study.--
        ``(1) In general.--Not later than 1 year after the date of 
    enactment of this section, the Secretary, acting through the 
    Assistant Secretary of Energy Efficiency and Renewable Energy, 
    shall complete a study on the feasibility of--
            ``(A) significantly improving energy efficiency in 
        commercial buildings through the design and construction, by 
        owners and tenants, of separate spaces with high-performance 
        energy efficiency measures; and
            ``(B) encouraging owners and tenants to implement high-
        performance energy efficiency measures in separate spaces.
        ``(2) Scope.--The study shall, at a minimum, include--
            ``(A) descriptions of--
                ``(i) high-performance energy efficiency measures that 
            should be considered as part of the initial design and 
            construction of separate spaces;
                ``(ii) processes that owners, tenants, architects, and 
            engineers may replicate when designing and constructing 
            separate spaces with high-performance energy efficiency 
            measures;
                ``(iii) policies and best practices to achieve 
            reductions in energy intensities for lighting, plug loads, 
            heating, cooling, cooking, laundry, and other systems to 
            satisfy the needs of the commercial building tenant;
                ``(iv) return on investment and payback analyses of the 
            incremental cost and projected energy savings of the 
            proposed set of high-performance energy efficiency 
            measures, including consideration of available incentives;
                ``(v) models and simulation methods that predict the 
            quantity of energy used by separate spaces with high-
            performance energy efficiency measures and that compare 
            that predicted quantity to the quantity of energy used by 
            separate spaces without high-performance energy efficiency 
            measures but that otherwise comply with applicable building 
            code requirements;
                ``(vi) measurement and verification platforms 
            demonstrating actual energy use of high-performance energy 
            efficiency measures installed in separate spaces, and 
            whether such measures generate the savings intended in the 
            initial design and construction of the separate spaces;
                ``(vii) best practices that encourage an integrated 
            approach to designing and constructing separate spaces to 
            perform at optimum energy efficiency in conjunction with 
            the central systems of a commercial building; and
                ``(viii) any impact on employment resulting from the 
            design and construction of separate spaces with high-
            performance energy efficiency measures; and
            ``(B) case studies reporting economic and energy savings 
        returns in the design and construction of separate spaces with 
        high-performance energy efficiency measures.
        ``(3) Public participation.--Not later than 90 days after the 
    date of the enactment of this section, the Secretary shall publish 
    a notice in the Federal Register requesting public comments 
    regarding effective methods, measures, and practices for the design 
    and construction of separate spaces with high-performance energy 
    efficiency measures.
        ``(4) Publication.--The Secretary shall publish the study on 
    the website of the Department of Energy.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
the Energy Independence and Security Act of 2007 is amended by 
inserting after the item relating to section 423 the following new 
item:

``Sec. 424. Separate spaces with high-performance energy efficiency 
          measures.''.
    SEC. 104. TENANT STAR PROGRAM.
    (a) In General.--Subtitle B of title IV of the Energy Independence 
and Security Act of 2007 (42 U.S.C. 17081 et seq.) (as amended by 
section 103) is amended by adding at the end the following:
    ``SEC. 425. TENANT STAR PROGRAM.
    ``(a) Definitions.--In this section:
        ``(1) High-performance energy efficiency measure.--The term 
    `high-performance energy efficiency measure' has the meaning given 
    the term in section 424.
        ``(2) Separate spaces.--The term `separate spaces' has the 
    meaning given the term in section 424.
    ``(b) Tenant Star.--The Administrator of the Environmental 
Protection Agency, in consultation with the Secretary of Energy, shall 
develop a voluntary program within the Energy Star program established 
by section 324A of the Energy Policy and Conservation Act (42 U.S.C. 
6294a), which may be known as `Tenant Star', to promote energy 
efficiency in separate spaces leased by tenants or otherwise occupied 
within commercial buildings.
    ``(c) Expanding Survey Data.--The Secretary of Energy, acting 
through the Administrator of the Energy Information Administration, 
shall--
        ``(1) collect, through each Commercial Buildings Energy 
    Consumption Survey of the Energy Information Administration that is 
    conducted after the date of enactment of this section, data on--
            ``(A) categories of building occupancy that are known to 
        consume significant quantities of energy, such as occupancy by 
        data centers, trading floors, and restaurants; and
            ``(B) other aspects of the property, building operation, or 
        building occupancy determined by the Administrator of the 
        Energy Information Administration, in consultation with the 
        Administrator of the Environmental Protection Agency, to be 
        relevant in lowering energy consumption;
        ``(2) with respect to the first Commercial Buildings Energy 
    Consumption Survey conducted after the date of enactment of this 
    section, to the extent full compliance with the requirements of 
    paragraph (1) is not feasible, conduct activities to develop the 
    capability to collect such data and begin to collect such data; and
        ``(3) make data collected under paragraphs (1) and (2) 
    available to the public in aggregated form and provide such data, 
    and any associated results, to the Administrator of the 
    Environmental Protection Agency for use in accordance with 
    subsection (d).
    ``(d)  Recognition of Owners and Tenants.--
        ``(1) Occupancy-based recognition.--Not later than 1 year after 
    the date on which sufficient data is received pursuant to 
    subsection (c), the Administrator of the Environmental Protection 
    Agency shall, following an opportunity for public notice and 
    comment--
            ``(A) in a manner similar to the Energy Star rating system 
        for commercial buildings, develop policies and procedures to 
        recognize tenants in commercial buildings that voluntarily 
        achieve high levels of energy efficiency in separate spaces;
            ``(B) establish building occupancy categories eligible for 
        Tenant Star recognition based on the data collected under 
        subsection (c) and any other appropriate data sources; and
            ``(C) consider other forms of recognition for commercial 
        building tenants or other occupants that lower energy 
        consumption in separate spaces.
        ``(2) Design- and construction-based recognition.--After the 
    study required by section 424(b) is completed, the Administrator of 
    the Environmental Protection Agency, in consultation with the 
    Secretary and following an opportunity for public notice and 
    comment, may develop a voluntary program to recognize commercial 
    building owners and tenants that use high-performance energy 
    efficiency measures in the design and construction of separate 
    spaces.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
the Energy Independence and Security Act of 2007 is amended by 
inserting after the item relating to section 424 (as added by section 
103(b)) the following new item:

``Sec. 425. Tenant Star program.''.

                  TITLE II--GRID-ENABLED WATER HEATERS

    SEC. 201. GRID-ENABLED WATER HEATERS.
    Part B of title III of the Energy Policy and Conservation Act is 
amended--
        (1) in section 325(e) (42 U.S.C. 6295(e)), by adding at the end 
    the following:
        ``(6) Additional standards for grid-enabled water heaters.--
            ``(A) Definitions.--In this paragraph:
                ``(i) Activation lock.--The term `activation lock' 
            means a control mechanism (either a physical device 
            directly on the water heater or a control system integrated 
            into the water heater) that is locked by default and 
            contains a physical, software, or digital communication 
            that must be activated with an activation key to enable the 
            product to operate at its designed specifications and 
            capabilities and without which activation the product will 
            provide not greater than 50 percent of the rated first hour 
            delivery of hot water certified by the manufacturer.
                ``(ii) Grid-enabled water heater.--The term `grid-
            enabled water heater' means an electric resistance water 
            heater that--

                    ``(I) has a rated storage tank volume of more than 
                75 gallons;
                    ``(II) is manufactured on or after April 16, 2015;
                    ``(III) has--

                        ``(aa) an energy factor of not less than 1.061 
                    minus the product obtained by multiplying--
                            ``(AA) the rated storage volume of the 
                        tank, expressed in gallons; and
                            ``(BB) 0.00168; or
                        ``(bb) an equivalent alternative standard 
                    prescribed by the Secretary and developed pursuant 
                    to paragraph (5)(E);

                    ``(IV) is equipped at the point of manufacture with 
                an activation lock; and
                    ``(V) bears a permanent label applied by the 
                manufacturer that--

                        ``(aa) is made of material not adversely 
                    affected by water;
                        ``(bb) is attached by means of non-water-
                    soluble adhesive; and
                        ``(cc) advises purchasers and end-users of the 
                    intended and appropriate use of the product with 
                    the following notice printed in 16.5 point Arial 
                    Narrow Bold font:
```IMPORTANT INFORMATION: This water heater is intended only for use as 
part of an electric thermal storage or demand response program. It will 
not provide adequate hot water unless enrolled in such a program and 
activated by your utility company or another program operator. Confirm 
the availability of a program in your local area before purchasing or 
installing this product.'.
            ``(B) Requirement.--The manufacturer or private labeler 
        shall provide the activation key for a grid-enabled water 
        heater only to a utility or other company that operates an 
        electric thermal storage or demand response program that uses 
        such a grid-enabled water heater.
            ``(C) Reports.--
                ``(i) Manufacturers.--The Secretary shall require each 
            manufacturer of grid-enabled water heaters to report to the 
            Secretary annually the quantity of grid-enabled water 
            heaters that the manufacturer ships each year.
                ``(ii) Operators.--The Secretary shall require 
            utilities and other demand response and thermal storage 
            program operators to report annually the quantity of grid-
            enabled water heaters activated for their programs using 
            forms of the Energy Information Agency or using such other 
            mechanism that the Secretary determines appropriate after 
            an opportunity for notice and comment.
                ``(iii) Confidentiality requirements.--The Secretary 
            shall treat shipment data reported by manufacturers as 
            confidential business information.
            ``(D) Publication of information.--
                ``(i) In general.--In 2017 and 2019, the Secretary 
            shall publish an analysis of the data collected under 
            subparagraph (C) to assess the extent to which shipped 
            products are put into use in demand response and thermal 
            storage programs.
                ``(ii) Prevention of product diversion.--If the 
            Secretary determines that sales of grid-enabled water 
            heaters exceed by 15 percent or greater the quantity of 
            such products activated for use in demand response and 
            thermal storage programs annually, the Secretary shall, 
            after opportunity for notice and comment, establish 
            procedures to prevent product diversion for non-program 
            purposes.
            ``(E) Compliance.--
                ``(i) In general.--Subparagraphs (A) through (D) shall 
            remain in effect until the Secretary determines under this 
            section that--

                    ``(I) grid-enabled water heaters do not require a 
                separate efficiency requirement; or
                    ``(II) sales of grid-enabled water heaters exceed 
                by 15 percent or greater the quantity of such products 
                activated for use in demand response and thermal 
                storage programs annually and procedures to prevent 
                product diversion for non-program purposes would not be 
                adequate to prevent such product diversion.

                ``(ii) Effective date.--If the Secretary exercises the 
            authority described in clause (i) or amends the efficiency 
            requirement for grid-enabled water heaters, that action 
            will take effect on the date described in subsection 
            (m)(4)(A)(ii).
                ``(iii) Consideration.--In carrying out this section 
            with respect to electric water heaters, the Secretary shall 
            consider the impact on thermal storage and demand response 
            programs, including any impact on energy savings, electric 
            bills, peak load reduction, electric reliability, 
            integration of renewable resources, and the environment.
                ``(iv) Requirements.--In carrying out this paragraph, 
            the Secretary shall require that grid-enabled water heaters 
            be equipped with communication capability to enable the 
            grid-enabled water heaters to participate in ancillary 
            services programs if the Secretary determines that the 
            technology is available, practical, and cost-effective.'';
        (2) in section 332(a) (42 U.S.C. 6302(a))--
            (A) in paragraph (5), by striking ``or'' at the end;
            (B) in the first paragraph (6), by striking the period at 
        the end and inserting a semicolon;
            (C) by redesignating the second paragraph (6) as paragraph 
        (7);
            (D) in subparagraph (B) of paragraph (7) (as so 
        redesignated), by striking the period at the end and inserting 
        ``; or''; and
            (E) by adding at the end the following:
        ``(8) for any person--
            ``(A) to activate an activation lock for a grid-enabled 
        water heater with knowledge that such water heater is not used 
        as part of an electric thermal storage or demand response 
        program;
            ``(B) to distribute an activation key for a grid-enabled 
        water heater with knowledge that such activation key will be 
        used to activate a grid-enabled water heater that is not used 
        as part of an electric thermal storage or demand response 
        program;
            ``(C) to otherwise enable a grid-enabled water heater to 
        operate at its designed specification and capabilities with 
        knowledge that such water heater is not used as part of an 
        electric thermal storage or demand response program; or
            ``(D) to knowingly remove or render illegible the label of 
        a grid-enabled water heater described in section 
        325(e)(6)(A)(ii)(V).'';
        (3) in section 333(a) (42 U.S.C. 6303(a))--
            (A) by striking ``section 332(a)(5)'' and inserting 
        ``paragraph (5), (6), (7), or (8) of section 332(a)''; and
            (B) by striking ``paragraph (1), (2), or (5) of section 
        332(a)'' and inserting ``paragraph (1), (2), (5), (6), (7), or 
        (8) of section 332(a)''; and
        (4) in section 334 (42 U.S.C. 6304)--
            (A) by striking ``section 332(a)(5)'' and inserting 
        ``paragraph (5), (6), (7), or (8) of section 332(a)''; and
            (B) by striking ``section 332(a)(6)'' and inserting 
        ``section 332(a)(7)''.

         TITLE III--ENERGY INFORMATION FOR COMMERCIAL BUILDINGS

    SEC. 301. ENERGY INFORMATION FOR COMMERCIAL BUILDINGS.
    (a) Requirement of Benchmarking and Disclosure for Leasing 
Buildings Without Energy Star Labels.--Section 435(b)(2) of the Energy 
Independence and Security Act of 2007 (42 U.S.C. 17091(b)(2)) is 
amended--
        (1) by striking ``paragraph (2)'' and inserting ``paragraph 
    (1)''; and
        (2) by striking ``signing the contract,'' and all that follows 
    through the period at the end and inserting the following:
    ``signing the contract, the following requirements are met:
            ``(A) The space is renovated for all energy efficiency and 
        conservation improvements that would be cost effective over the 
        life of the lease, including improvements in lighting, windows, 
        and heating, ventilation, and air conditioning systems.
            ``(B)(i) Subject to clause (ii), the space is benchmarked 
        under a nationally recognized, online, free benchmarking 
        program, with public disclosure, unless the space is a space 
        for which owners cannot access whole building utility 
        consumption data, including spaces--
                ``(I) that are located in States with privacy laws that 
            provide that utilities shall not provide such aggregated 
            information to multitenant building owners; and
                ``(II) for which tenants do not provide energy 
            consumption information to the commercial building owner in 
            response to a request from the building owner.
            ``(ii) A Federal agency that is a tenant of the space shall 
        provide to the building owner, or authorize the owner to obtain 
        from the utility, the energy consumption information of the 
        space for the benchmarking and disclosure required by this 
        subparagraph.''.
    (b) Study.--
        (1) In general.--Not later than 2 years after the date of 
    enactment of this Act, the Secretary of Energy, in collaboration 
    with the Administrator of the Environmental Protection Agency, 
    shall complete a study--
            (A) on the impact of--
                (i) State and local performance benchmarking and 
            disclosure policies, and any associated building efficiency 
            policies, for commercial and multifamily buildings; and
                (ii) programs and systems in which utilities provide 
            aggregated information regarding whole building energy 
            consumption and usage information to owners of multitenant 
            commercial, residential, and mixed-use buildings;
            (B) that identifies best practice policy approaches studied 
        under subparagraph (A) that have resulted in the greatest 
        improvements in building energy efficiency; and
            (C) that considers--
                (i) compliance rates and the benefits and costs of the 
            policies and programs on building owners, utilities, 
            tenants, and other parties;
                (ii) utility practices, programs, and systems that 
            provide aggregated energy consumption information to 
            multitenant building owners, and the impact of public 
            utility commissions and State privacy laws on those 
            practices, programs, and systems;
                (iii) exceptions to compliance in existing laws where 
            building owners are not able to gather or access whole 
            building energy information from tenants or utilities;
                (iv) the treatment of buildings with--

                    (I) multiple uses;
                    (II) uses for which baseline information is not 
                available; and
                    (III) uses that require high levels of energy 
                intensities, such as data centers, trading floors, and 
                televisions studios;

                (v) implementation practices, including disclosure 
            methods and phase-in of compliance;
                (vi) the safety and security of benchmarking tools 
            offered by government agencies, and the resiliency of those 
            tools against cyber attacks; and
                (vii) international experiences with regard to building 
            benchmarking and disclosure laws and data aggregation for 
            multitenant buildings.
        (2) Submission to congress.--At the conclusion of the study, 
    the Secretary shall submit to the Committee on Energy and Commerce 
    of the House of Representatives and Committee on Energy and Natural 
    Resources of the Senate a report on the results of the study.
    (c) Creation and Maintenance of Database.--
        (1) In general.--Not later than 18 months after the date of 
    enactment of this Act and following opportunity for public notice 
    and comment, the Secretary of Energy, in coordination with other 
    relevant agencies, shall maintain, and if necessary create, a 
    database for the purpose of storing and making available public 
    energy-related information on commercial and multifamily buildings, 
    including--
            (A) data provided under Federal, State, local, and other 
        laws or programs regarding building benchmarking and energy 
        information disclosure;
            (B) information on buildings that have disclosed energy 
        ratings and certifications; and
            (C) energy-related information on buildings provided 
        voluntarily by the owners of the buildings, only in an 
        anonymous form unless the owner provides otherwise.
        (2) Complementary programs.--The database maintained pursuant 
    to paragraph (1) shall complement and not duplicate the functions 
    of the Environmental Protection Agency's Energy Star Portfolio 
    Manager tool.
    (d) Input From Stakeholders.--The Secretary of Energy shall seek 
input from stakeholders to maximize the effectiveness of the actions 
taken under this section.
    (e) Report.--Not later than 2 years after the date of enactment of 
this Act, and every 2 years thereafter, the Secretary of Energy shall 
submit to the Committee on Energy and Commerce of the House of 
Representatives and Committee on Energy and Natural Resources of the 
Senate a report on the progress made in complying with this section.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.