[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 385 Reported in Senate (RS)]

<DOC>





                                                        Calendar No. 73
115th CONGRESS
  1st Session
                                 S. 385

                          [Report No. 115-60]

 To promote energy savings in residential buildings and industry, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 15, 2017

  Mr. Portman (for himself, Mrs. Shaheen, Mr. Coons, Mr. Wicker, Mr. 
    Franken, Ms. Collins, Mr. Manchin, Mr. Bennet, Mr. Warner, Ms. 
Heitkamp, and Mr. Heller) introduced the following bill; which was read 
  twice and referred to the Committee on Energy and Natural Resources

                              May 10, 2017

              Reported by Ms. Murkowski, without amendment

_______________________________________________________________________

                                 A BILL


 
 To promote energy savings in residential buildings and industry, and 
                          for other purposes.

    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 Savings and 
Industrial Competitiveness Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
                           TITLE I--BUILDINGS

                   Subtitle A--Building Energy Codes

Sec. 101. Greater energy efficiency in building codes.
           Subtitle B--Worker Training and Capacity Building

Sec. 111. Building training and assessment centers.
Sec. 112. Career skills training.
                      Subtitle C--School Buildings

Sec. 121. Coordination of energy retrofitting assistance for schools.
          TITLE II--INDUSTRIAL EFFICIENCY AND COMPETITIVENESS

              Subtitle A--Manufacturing Energy Efficiency

Sec. 201. Purposes.
Sec. 202. Future of Industry program.
Sec. 203. Sustainable manufacturing initiative.
Sec. 204. Conforming amendments.
                        Subtitle B--Supply Star

Sec. 211. Supply Star.
           Subtitle C--Extended Product System Rebate Program

Sec. 221. Extended product system rebate program.
                 Subtitle D--Transformer Rebate Program

Sec. 231. Energy efficient transformer rebate program.
              TITLE III--FEDERAL AGENCY ENERGY EFFICIENCY

Sec. 301. Energy-efficient and energy-saving information technologies.
Sec. 302. Energy efficient data centers.
Sec. 303. Budget-neutral demonstration program for energy and water 
                            conservation improvements at multifamily 
                            residential units.
                    TITLE IV--REGULATORY PROVISIONS

    Subtitle A--Third-Party Certification Under Energy Star Program

Sec. 401. Third-Party Certification Under Energy Star Program.
                  Subtitle B--Federal Green Buildings

Sec. 411. High-performance green Federal buildings.
    Subtitle C--Energy Performance Requirement for Federal Buildings

Sec. 421. Energy performance requirement for Federal buildings.
Sec. 422. Federal building energy efficiency performance standards; 
                            certification system and level for green 
                            buildings.
Sec. 423. Enhanced energy efficiency underwriting.
                         TITLE V--MISCELLANEOUS

Sec. 501. Budgetary effects.
Sec. 502. Advance appropriations required.

SEC. 2. DEFINITION OF SECRETARY.

    In this Act, the term ``Secretary'' means the Secretary of Energy.

                           TITLE I--BUILDINGS

                   Subtitle A--Building Energy Codes

SEC. 101. GREATER ENERGY EFFICIENCY IN BUILDING CODES.

    (a) Definitions.--Section 303 of the Energy Conservation and 
Production Act (42 U.S.C. 6832) is amended--
            (1) by striking paragraph (14) and inserting the following:
            ``(14) Model building energy code.--The term `model 
        building energy code' means a voluntary building energy code 
        and standards developed and updated through a consensus process 
        among interested persons, such as the IECC or the code used 
        by--
                    ``(A) the Council of American Building Officials, 
                or its legal successor, International Code Council, 
                Inc.;
                    ``(B) the American Society of Heating, 
                Refrigerating, and Air-Conditioning Engineers; or
                    ``(C) other appropriate organizations.''; and
            (2) by adding at the end the following:
            ``(17) IECC.--The term `IECC' means the International 
        Energy Conservation Code.
            ``(18) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 4 of the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4103).''.
    (b) State Building Energy Efficiency Codes.--Section 304 of the 
Energy Conservation and Production Act (42 U.S.C. 6833) is amended to 
read as follows:

``SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.

    ``(a) In General.--The Secretary shall--
            ``(1) encourage and support the adoption of building energy 
        codes by States, Indian tribes, and, as appropriate, by local 
        governments that meet or exceed the model building energy 
        codes, or achieve equivalent or greater energy savings; and
            ``(2) support full compliance with the State and local 
        codes.
    ``(b) State and Indian Tribe Certification of Building Energy Code 
Updates.--
            ``(1) Review and updating of codes by each state and indian 
        tribe.--
                    ``(A) In general.--Not later than 2 years after the 
                date on which a model building energy code is updated, 
                each State or Indian tribe shall certify whether or not 
                the State or Indian tribe, respectively, has reviewed 
                and updated the energy provisions of the building code 
                of the State or Indian tribe, respectively.
                    ``(B) Demonstration.--The certification shall 
                include a demonstration of whether or not the energy 
                savings for the code provisions that are in effect 
                throughout the State or Indian tribal territory meet or 
                exceed--
                            ``(i) the energy savings of the updated 
                        model building energy code; or
                            ``(ii) the targets established under 
                        section 307(b)(2).
                    ``(C) No model building energy code update.--If a 
                model building energy code is not updated by a target 
                date established under section 307(b)(2)(D), each State 
                or Indian tribe shall, not later than 2 years after the 
                specified date, certify whether or not the State or 
                Indian tribe, respectively, has reviewed and updated 
                the energy provisions of the building code of the State 
                or Indian tribe, respectively, to meet or exceed the 
                target in section 307(b)(2).
            ``(2) Validation by secretary.--Not later than 90 days 
        after a State or Indian tribe certification under paragraph 
        (1), the Secretary shall--
                    ``(A) determine whether the code provisions of the 
                State or Indian tribe, respectively, meet the criteria 
                specified in paragraph (1); and
                    ``(B) if the determination is positive, validate 
                the certification.
    ``(c) Improvements in Compliance With Building Energy Codes.--
            ``(1) Requirement.--
                    ``(A) In general.--Not later than 3 years after the 
                date of a certification under subsection (b), each 
                State and Indian tribe shall certify whether or not the 
                State and Indian tribe, respectively, has--
                            ``(i) achieved full compliance under 
                        paragraph (3) with the applicable certified 
                        State and Indian tribe building energy code or 
                        with the associated model building energy code; 
                        or
                            ``(ii) made significant progress under 
                        paragraph (4) toward achieving compliance with 
                        the applicable certified State and Indian tribe 
                        building energy code or with the associated 
                        model building energy code.
                    ``(B) Repeat certifications.--If the State or 
                Indian tribe certifies progress toward achieving 
                compliance, the State or Indian tribe shall repeat the 
                certification until the State or Indian tribe certifies 
                that the State or Indian tribe has achieved full 
                compliance, respectively.
            ``(2) Measurement of compliance.--A certification under 
        paragraph (1) shall include documentation of the rate of 
        compliance based on--
                    ``(A) independent inspections of a random sample of 
                the buildings covered by the code in the preceding 
                year; or
                    ``(B) an alternative method that yields an accurate 
                measure of compliance.
            ``(3) Achievement of compliance.--A State or Indian tribe 
        shall be considered to achieve full compliance under paragraph 
        (1) if--
                    ``(A) at least 90 percent of building space covered 
                by the code in the preceding year substantially meets 
                all the requirements of the applicable code specified 
                in paragraph (1), or achieves equivalent or greater 
                energy savings level; or
                    ``(B) the estimated excess energy use of buildings 
                that did not meet the applicable code specified in 
                paragraph (1) in the preceding year, compared to a 
                baseline of comparable buildings that meet this code, 
                is not more than 5 percent of the estimated energy use 
                of all buildings covered by this code during the 
                preceding year.
            ``(4) Significant progress toward achievement of 
        compliance.--A State or Indian tribe shall be considered to 
        have made significant progress toward achieving compliance for 
        purposes of paragraph (1) if the State or Indian tribe--
                    ``(A) has developed and is implementing a plan for 
                achieving compliance during the 8-year-period beginning 
                on the date of enactment of this paragraph, including 
                annual targets for compliance and active training and 
                enforcement programs; and
                    ``(B) has met the most recent target under 
                subparagraph (A).
            ``(5) Validation by secretary.--Not later than 90 days 
        after a State or Indian tribe certification under paragraph 
        (1), the Secretary shall--
                    ``(A) determine whether the State or Indian tribe 
                has demonstrated meeting the criteria of this 
                subsection, including accurate measurement of 
                compliance; and
                    ``(B) if the determination is positive, validate 
                the certification.
    ``(d) States or Indian Tribes That Do Not Achieve Compliance.--
            ``(1) Reporting.--A State or Indian tribe that has not made 
        a certification required under subsection (b) or (c) by the 
        applicable deadline shall submit to the Secretary a report on--
                    ``(A) the status of the State or Indian tribe with 
                respect to meeting the requirements and submitting the 
                certification; and
                    ``(B) a plan for meeting the requirements and 
                submitting the certification.
            ``(2) Federal support.--For any State or Indian tribe for 
        which the Secretary has not validated a certification by a 
        deadline under subsection (b) or (c), the lack of the 
        certification may be a consideration for Federal support 
        authorized under this section for code adoption and compliance 
        activities.
            ``(3) Local government.--In any State or Indian tribe for 
        which the Secretary has not validated a certification under 
        subsection (b) or (c), a local government may be eligible for 
        Federal support by meeting the certification requirements of 
        subsections (b) and (c).
            ``(4) Annual reports by secretary.--
                    ``(A) In general.--The Secretary shall annually 
                submit to Congress, and publish in the Federal 
                Register, a report on--
                            ``(i) the status of model building energy 
                        codes;
                            ``(ii) the status of code adoption and 
                        compliance in the States and Indian tribes;
                            ``(iii) implementation of this section; and
                            ``(iv) improvements in energy savings over 
                        time as result of the targets established under 
                        section 307(b)(2).
                    ``(B) Impacts.--The report shall include estimates 
                of impacts of past action under this section, and 
                potential impacts of further action, on--
                            ``(i) upfront financial and construction 
                        costs, cost benefits and returns (using 
                        investment analysis), and lifetime energy use 
                        for buildings;
                            ``(ii) resulting energy costs to 
                        individuals and businesses; and
                            ``(iii) resulting overall annual building 
                        ownership and operating costs.
    ``(e) Technical Assistance to States and Indian Tribes.--The 
Secretary shall provide technical assistance to States and Indian 
tribes to implement the goals and requirements of this section, 
including procedures and technical analysis for States and Indian 
tribes--
            ``(1) to improve and implement State residential and 
        commercial building energy codes;
            ``(2) to demonstrate that the code provisions of the States 
        and Indian tribes achieve equivalent or greater energy savings 
        than the model building energy codes and targets;
            ``(3) to document the rate of compliance with a building 
        energy code; and
            ``(4) to otherwise promote the design and construction of 
        energy efficient buildings.
    ``(f) Availability of Incentive Funding.--
            ``(1) In general.--The Secretary shall provide incentive 
        funding to States and Indian tribes--
                    ``(A) to implement the requirements of this 
                section;
                    ``(B) to improve and implement residential and 
                commercial building energy codes, including increasing 
                and verifying compliance with the codes and training of 
                State, tribal, and local building code officials to 
                implement and enforce the codes; and
                    ``(C) to promote building energy efficiency through 
                the use of the codes.
            ``(2) Additional funding.--Additional funding shall be 
        provided under this subsection for implementation of a plan to 
        achieve and document full compliance with residential and 
        commercial building energy codes under subsection (c)--
                    ``(A) to a State or Indian tribe for which the 
                Secretary has validated a certification under 
                subsection (b) or (c); and
                    ``(B) in a State or Indian tribe that is not 
                eligible under subparagraph (A), to a local government 
                that is eligible under this section.
            ``(3) Training.--Of the amounts made available under this 
        subsection, the State or Indian tribe may use amounts required, 
        but not to exceed $750,000 for a State, to train State and 
        local building code officials to implement and enforce codes 
        described in paragraph (2).
            ``(4) Local governments.--States may share grants under 
        this subsection with local governments that implement and 
        enforce the codes.
    ``(g) Stretch Codes and Advanced Standards.--
            ``(1) In general.--The Secretary shall provide technical 
        and financial support for the development of stretch codes and 
        advanced standards for residential and commercial buildings for 
        use as--
                    ``(A) an option for adoption as a building energy 
                code by local, tribal, or State governments; and
                    ``(B) guidelines for energy-efficient building 
                design.
            ``(2) Targets.--The stretch codes and advanced standards 
        shall be designed--
                    ``(A) to achieve substantial energy savings 
                compared to the model building energy codes; and
                    ``(B) to meet targets under section 307(b), if 
                available, at least 3 to 6 years in advance of the 
                target years.
    ``(h) Studies.--The Secretary, in consultation with building 
science experts from the National Laboratories and institutions of 
higher education, designers and builders of energy-efficient 
residential and commercial buildings, code officials, and other 
stakeholders, shall undertake a study of the feasibility, impact, 
economics, and merit of--
            ``(1) code improvements that would require that buildings 
        be designed, sited, and constructed in a manner that makes the 
        buildings more adaptable in the future to become zero-net-
        energy after initial construction, as advances are achieved in 
        energy-saving technologies;
            ``(2) code procedures to incorporate measured lifetimes, 
        not just first-year energy use, in trade-offs and performance 
        calculations; and
            ``(3) legislative options for increasing energy savings 
        from building energy codes, including additional incentives for 
        effective State and local action, and verification of 
        compliance with and enforcement of a code other than by a State 
        or local government.
    ``(i) Effect on Other Laws.--Nothing in this section or section 307 
supersedes or modifies the application of sections 321 through 346 of 
the Energy Policy and Conservation Act (42 U.S.C. 6291 et seq.).
    ``(j) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section and section 307 $200,000,000, to 
remain available until expended.''.
    (c) Federal Building Energy Efficiency Standards.--Section 305 of 
the Energy Conservation and Production Act (42 U.S.C. 6834) is amended 
by striking ``voluntary building energy code'' each place it appears in 
subsections (a)(2)(B) and (b) and inserting ``model building energy 
code''.
    (d) Model Building Energy Codes.--Section 307 of the Energy 
Conservation and Production Act (42 U.S.C. 6836) is amended to read as 
follows:

``SEC. 307. SUPPORT FOR MODEL BUILDING ENERGY CODES.

    ``(a) In General.--The Secretary shall support the updating of 
model building energy codes.
    ``(b) Targets.--
            ``(1) In general.--The Secretary shall support the updating 
        of the model building energy codes to enable the achievement of 
        aggregate energy savings targets established under paragraph 
        (2).
            ``(2) Targets.--
                    ``(A) In general.--The Secretary shall work with 
                State, Indian tribes, local governments, nationally 
                recognized code and standards developers, and other 
                interested parties to support the updating of model 
                building energy codes by establishing one or more 
                aggregate energy savings targets to achieve the 
                purposes of this section.
                    ``(B) Separate targets.--The Secretary may 
                establish separate targets for commercial and 
                residential buildings.
                    ``(C) Baselines.--The baseline for updating model 
                building energy codes shall be the 2009 IECC for 
                residential buildings and ASHRAE Standard 90.1-2010 for 
                commercial buildings.
                    ``(D) Specific years.--
                            ``(i) In general.--Targets for specific 
                        years shall be established and revised by the 
                        Secretary through rulemaking and coordinated 
                        with nationally recognized code and standards 
                        developers at a level that--
                                    ``(I) is at the maximum level of 
                                energy efficiency that is 
                                technologically feasible and life-cycle 
                                cost effective, while accounting for 
                                the economic considerations under 
                                paragraph (4);
                                    ``(II) is higher than the preceding 
                                target; and
                                    ``(III) promotes the achievement of 
                                commercial and residential high-
                                performance buildings through high 
                                performance energy efficiency (within 
                                the meaning of section 401 of the 
                                Energy Independence and Security Act of 
                                2007 (42 U.S.C. 17061)).
                            ``(ii) Initial targets.--Not later than 1 
                        year after the date of enactment of this 
                        clause, the Secretary shall establish initial 
                        targets under this subparagraph.
                            ``(iii) Different target years.--Subject to 
                        clause (i), prior to the applicable year, the 
                        Secretary may set a later target year for any 
                        of the model building energy codes described in 
                        subparagraph (A) if the Secretary determines 
                        that a target cannot be met.
                            ``(iv) Small business.--When establishing 
                        targets under this paragraph through 
                        rulemaking, the Secretary shall ensure 
                        compliance with the Small Business Regulatory 
                        Enforcement Fairness Act of 1996 (5 U.S.C. 601 
                        note; Public Law 104-121).
            ``(3) Appliance standards and other factors affecting 
        building energy use.--In establishing building code targets 
        under paragraph (2), the Secretary shall develop and adjust the 
        targets in recognition of potential savings and costs relating 
        to--
                    ``(A) efficiency gains made in appliances, 
                lighting, windows, insulation, and building envelope 
                sealing;
                    ``(B) advancement of distributed generation and on-
                site renewable power generation technologies;
                    ``(C) equipment improvements for heating, cooling, 
                and ventilation systems;
                    ``(D) building management systems and SmartGrid 
                technologies to reduce energy use; and
                    ``(E) other technologies, practices, and building 
                systems that the Secretary considers appropriate 
                regarding building plug load and other energy uses.
            ``(4) Economic considerations.--In establishing and 
        revising building code targets under paragraph (2), the 
        Secretary shall consider the economic feasibility of achieving 
        the proposed targets established under this section and the 
        potential costs and savings for consumers and building owners, 
        including a return on investment analysis.
    ``(c) Technical Assistance to Model Building Energy Code-Setting 
and Standard Development Organizations.--
            ``(1) In general.--The Secretary shall, on a timely basis, 
        provide technical assistance to model building energy code-
        setting and standard development organizations consistent with 
        the goals of this section.
            ``(2) Assistance.--The assistance shall include, as 
        requested by the organizations, technical assistance in--
                    ``(A) evaluating code or standards proposals or 
                revisions;
                    ``(B) building energy analysis and design tools;
                    ``(C) building demonstrations;
                    ``(D) developing definitions of energy use 
                intensity and building types for use in model building 
                energy codes to evaluate the efficiency impacts of the 
                model building energy codes;
                    ``(E) performance-based standards;
                    ``(F) evaluating economic considerations under 
                subsection (b)(4); and
                    ``(G) developing model building energy codes by 
                Indian tribes in accordance with tribal law.
            ``(3) Amendment proposals.--The Secretary may submit timely 
        model building energy code amendment proposals to the model 
        building energy code-setting and standard development 
        organizations, with supporting evidence, sufficient to enable 
        the model building energy codes to meet the targets established 
        under subsection (b)(2).
            ``(4) Analysis methodology.--The Secretary shall make 
        publicly available the entire calculation methodology 
        (including input assumptions and data) used by the Secretary to 
        estimate the energy savings of code or standard proposals and 
        revisions.
    ``(d) Determination.--
            ``(1) Revision of model building energy codes.--If the 
        provisions of the IECC or ASHRAE Standard 90.1 regarding 
        building energy use are revised, the Secretary shall make a 
        preliminary determination not later than 90 days after the date 
        of the revision, and a final determination not later than 15 
        months after the date of the revision, on whether or not the 
        revision will--
                    ``(A) improve energy efficiency in buildings 
                compared to the existing model building energy code; 
                and
                    ``(B) meet the applicable targets under subsection 
                (b)(2).
            ``(2) Codes or standards not meeting targets.--
                    ``(A) In general.--If the Secretary makes a 
                preliminary determination under paragraph (1)(B) that a 
                code or standard does not meet the targets established 
                under subsection (b)(2), the Secretary may at the same 
                time provide the model building energy code or standard 
                developer with proposed changes that would result in a 
                model building energy code that meets the targets and 
                with supporting evidence, taking into consideration--
                            ``(i) whether the modified code is 
                        technically feasible and life-cycle cost 
                        effective;
                            ``(ii) available appliances, technologies, 
                        materials, and construction practices; and
                            ``(iii) the economic considerations under 
                        subsection (b)(4).
                    ``(B) Incorporation of changes.--
                            ``(i) In general.--On receipt of the 
                        proposed changes, the model building energy 
                        code or standard developer shall have an 
                        additional 270 days to accept or reject the 
                        proposed changes of the Secretary to the model 
                        building energy code or standard for the 
                        Secretary to make a final determination.
                            ``(ii) Final determination.--A final 
                        determination under paragraph (1) shall be on 
                        the modified model building energy code or 
                        standard.
    ``(e) Administration.--In carrying out this section, the Secretary 
shall--
            ``(1) publish notice of targets and supporting analysis and 
        determinations under this section in the Federal Register to 
        provide an explanation of and the basis for such actions, 
        including any supporting modeling, data, assumptions, 
        protocols, and cost-benefit analysis, including return on 
        investment; and
            ``(2) provide an opportunity for public comment on targets 
        and supporting analysis and determinations under this section.
    ``(f) Voluntary Codes and Standards.--Notwithstanding any other 
provision of this section, any model building code or standard 
established under section 304 shall not be binding on a State, local 
government, or Indian tribe as a matter of Federal law.''.

           Subtitle B--Worker Training and Capacity Building

SEC. 111. BUILDING TRAINING AND ASSESSMENT CENTERS.

    (a) In General.--The Secretary shall provide grants to institutions 
of higher education (as defined in section 101 of the Higher Education 
Act of 1965 (20 U.S.C. 1001)) and Tribal Colleges or Universities (as 
defined in section 316(b) of that Act (20 U.S.C. 1059c(b))) to 
establish building training and assessment centers--
            (1) to identify opportunities for optimizing energy 
        efficiency and environmental performance in buildings;
            (2) to promote the application of emerging concepts and 
        technologies in commercial and institutional buildings;
            (3) to train engineers, architects, building scientists, 
        building energy permitting and enforcement officials, and 
        building technicians in energy-efficient design and operation;
            (4) to assist institutions of higher education and Tribal 
        Colleges or Universities in training building technicians;
            (5) to promote research and development for the use of 
        alternative energy sources and distributed generation to supply 
        heat and power for buildings, particularly energy-intensive 
        buildings; and
            (6) to coordinate with and assist State-accredited 
        technical training centers, community colleges, Tribal Colleges 
        or Universities, and local offices of the National Institute of 
        Food and Agriculture and ensure appropriate services are 
        provided under this section to each region of the United 
        States.
    (b) Coordination and Nonduplication.--
            (1) In general.--The Secretary shall coordinate the program 
        with the industrial research and assessment centers program and 
        with other Federal programs to avoid duplication of effort.
            (2) Collocation.--To the maximum extent practicable, 
        building, training, and assessment centers established under 
        this section shall be collocated with Industrial Assessment 
        Centers.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000, to remain available 
until expended.

SEC. 112. CAREER SKILLS TRAINING.

    (a) In General.--The Secretary shall pay grants to eligible 
entities described in subsection (b) to pay the Federal share of 
associated career skills training programs under which students 
concurrently receive classroom instruction and on-the-job training for 
the purpose of obtaining an industry-related certification to install 
energy efficient buildings technologies, including technologies 
described in section 307(b)(3) of the Energy Conservation and 
Production Act (42 U.S.C. 6836(b)(3)).
    (b) Eligibility.--To be eligible to obtain a grant under subsection 
(a), an entity shall be a nonprofit partnership described in section 
171(e)(2)(B)(ii) of the Workforce Investment Act of 1998 (29 U.S.C. 
2916(e)(2)(B)(ii)).
    (c) Federal Share.--The Federal share of the cost of carrying out a 
career skills training program described in subsection (a) shall be 50 
percent.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000, to remain available 
until expended.

                      Subtitle C--School Buildings

SEC. 121. COORDINATION OF ENERGY RETROFITTING ASSISTANCE FOR SCHOOLS.

    (a) Definition of School.--In this section, the term ``school'' 
means--
            (1) an elementary school or secondary school (as defined in 
        section 8101 of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 7801));
            (2) an institution of higher education (as defined in 
        section 102(a) of the Higher Education Act of 1965 (20 U.S.C. 
        1002(a)));
            (3) a school of the defense dependents' education system 
        under the Defense Dependents' Education Act of 1978 (20 U.S.C. 
        921 et seq.) or established under section 2164 of title 10, 
        United States Code;
            (4) a school operated by the Bureau of Indian Affairs;
            (5) a tribally controlled school (as defined in section 
        5212 of the Tribally Controlled Schools Act of 1988 (25 U.S.C. 
        2511)); and
            (6) a Tribal College or University (as defined in section 
        316(b) of the Higher Education Act of 1965 (20 U.S.C. 
        1059c(b))).
    (b) Designation of Lead Agency.--The Secretary, acting through the 
Office of Energy Efficiency and Renewable Energy, shall act as the lead 
Federal agency for coordinating and disseminating information on 
existing Federal programs and assistance that may be used to help 
initiate, develop, and finance energy efficiency, renewable energy, and 
energy retrofitting projects for schools.
    (c) Requirements.--In carrying out coordination and outreach under 
subsection (b), the Secretary shall--
            (1) in consultation and coordination with the appropriate 
        Federal agencies, carry out a review of existing programs and 
        financing mechanisms (including revolving loan funds and loan 
        guarantees) available in or from the Department of Agriculture, 
        the Department of Energy, the Department of Education, the 
        Department of the Treasury, the Internal Revenue Service, the 
        Environmental Protection Agency, and other appropriate Federal 
        agencies with jurisdiction over energy financing and 
        facilitation that are currently used or may be used to help 
        initiate, develop, and finance energy efficiency, renewable 
        energy, and energy retrofitting projects for schools;
            (2) establish a Federal cross-departmental collaborative 
        coordination, education, and outreach effort to streamline 
        communication and promote available Federal opportunities and 
        assistance described in paragraph (1), for energy efficiency, 
        renewable energy, and energy retrofitting projects that enables 
        States, local educational agencies, and schools--
                    (A) to use existing Federal opportunities more 
                effectively; and
                    (B) to form partnerships with Governors, State 
                energy programs, local educational, financial, and 
                energy officials, State and local government officials, 
                nonprofit organizations, and other appropriate 
                entities, to support the initiation of the projects;
            (3) provide technical assistance for States, local 
        educational agencies, and schools to help develop and finance 
        energy efficiency, renewable energy, and energy retrofitting 
        projects--
                    (A) to increase the energy efficiency of buildings 
                or facilities;
                    (B) to install systems that individually generate 
                energy from renewable energy resources;
                    (C) to establish partnerships to leverage economies 
                of scale and additional financing mechanisms available 
                to larger clean energy initiatives; or
                    (D) to promote--
                            (i) the maintenance of health, 
                        environmental quality, and safety in schools, 
                        including the ambient air quality, through 
                        energy efficiency, renewable energy, and energy 
                        retrofit projects; and
                            (ii) the achievement of expected energy 
                        savings and renewable energy production through 
                        proper operations and maintenance practices;
            (4) develop and maintain a single online resource website 
        with contact information for relevant technical assistance and 
        support staff in the Office of Energy Efficiency and Renewable 
        Energy for States, local educational agencies, and schools to 
        effectively access and use Federal opportunities and assistance 
        described in paragraph (1) to develop energy efficiency, 
        renewable energy, and energy retrofitting projects; and
            (5) establish a process for recognition of schools that--
                    (A) have successfully implemented energy 
                efficiency, renewable energy, and energy retrofitting 
                projects; and
                    (B) are willing to serve as resources for other 
                local educational agencies and schools to assist 
                initiation of similar efforts.
    (d) Report.--Not later than 180 days after the date of enactment of 
this Act, the Secretary shall submit to Congress a report describing 
the implementation of this section.

          TITLE II--INDUSTRIAL EFFICIENCY AND COMPETITIVENESS

              Subtitle A--Manufacturing Energy Efficiency

SEC. 201. PURPOSES.

    The purposes of this subtitle are--
            (1) to reform and reorient the industrial efficiency 
        programs of the Department of Energy;
            (2) to establish a clear and consistent authority for 
        industrial efficiency programs of the Department;
            (3) to accelerate the deployment of technologies and 
        practices that will increase industrial energy efficiency and 
        improve productivity;
            (4) to accelerate the development and demonstration of 
        technologies that will assist the deployment goals of the 
        industrial efficiency programs of the Department and increase 
        manufacturing efficiency;
            (5) to stimulate domestic economic growth and improve 
        industrial productivity and competitiveness; and
            (6) to strengthen partnerships between Federal and State 
        governmental agencies and the private and academic sectors.

SEC. 202. FUTURE OF INDUSTRY PROGRAM.

    (a) In General.--Section 452 of the Energy Independence and 
Security Act of 2007 (42 U.S.C. 17111) is amended by striking the 
section heading and inserting the following: ``future of industry 
program''.
    (b) Definition of Energy Service Provider.--Section 452(a) of the 
Energy Independence and Security Act of 2007 (42 U.S.C. 17111(a)) is 
amended--
            (1) by redesignating paragraphs (3) through (5) as 
        paragraphs (4) through (6), respectively; and
            (2) by inserting after paragraph (2):
            ``(3) Energy service provider.--The term `energy service 
        provider' means any business providing technology or services 
        to improve the energy efficiency, water efficiency, power 
        factor, or load management of a manufacturing site or other 
        industrial process in an energy-intensive industry, or any 
        utility operating under a utility energy service project.''.
    (c) Industrial Research and Assessment Centers.--Section 452(e) of 
the Energy Independence and Security Act of 2007 (42 U.S.C. 17111(e)) 
is amended--
            (1) by redesignating paragraphs (1) through (5) as 
        subparagraphs (A) through (E), respectively, and indenting 
        appropriately;
            (2) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) In general.--The Secretary'';
            (3) in subparagraph (A) (as redesignated by paragraph (1)), 
        by inserting before the semicolon at the end the following: ``, 
        including assessments of sustainable manufacturing goals and 
        the implementation of information technology advancements for 
        supply chain analysis, logistics, system monitoring, industrial 
        and manufacturing processes, and other purposes''; and
            (4) by adding at the end the following:
            ``(2) Coordination.--
                    ``(A) In general.--To increase the value and 
                capabilities of the industrial research and assessment 
                centers, the centers shall--
                            ``(i) coordinate with Manufacturing 
                        Extension Partnership Centers of the National 
                        Institute of Standards and Technology;
                            ``(ii) coordinate with the Building 
                        Technologies Program of the Department of 
                        Energy to provide building assessment services 
                        to manufacturers;
                            ``(iii) increase partnerships with the 
                        National Laboratories of the Department of 
                        Energy to leverage the expertise and 
                        technologies of the National Laboratories for 
                        national industrial and manufacturing needs;
                            ``(iv) increase partnerships with energy 
                        service providers and technology providers to 
                        leverage private sector expertise and 
                        accelerate deployment of new and existing 
                        technologies and processes for energy 
                        efficiency, power factor, and load management;
                            ``(v) identify opportunities for reducing 
                        greenhouse gas emissions; and
                            ``(vi) promote sustainable manufacturing 
                        practices for small- and medium-sized 
                        manufacturers.
            ``(3) Outreach.--The Secretary shall provide funding for--
                    ``(A) outreach activities by the industrial 
                research and assessment centers to inform small- and 
                medium-sized manufacturers of the information, 
                technologies, and services available; and
                    ``(B) coordination activities by each industrial 
                research and assessment center to leverage efforts 
                with--
                            ``(i) Federal and State efforts;
                            ``(ii) the efforts of utilities and energy 
                        service providers;
                            ``(iii) the efforts of regional energy 
                        efficiency organizations; and
                            ``(iv) the efforts of other industrial 
                        research and assessment centers.
            ``(4) Workforce training.--
                    ``(A) In general.--The Secretary shall pay the 
                Federal share of associated internship programs under 
                which students work with or for industries, 
                manufacturers, and energy service providers to 
                implement the recommendations of industrial research 
                and assessment centers.
                    ``(B) Federal share.--The Federal share of the cost 
                of carrying out internship programs described in 
                subparagraph (A) shall be 50 percent.
            ``(5) Small business loans.--The Administrator of the Small 
        Business Administration shall, to the maximum extent 
        practicable, expedite consideration of applications from 
        eligible small business concerns for loans under the Small 
        Business Act (15 U.S.C. 631 et seq.) to implement 
        recommendations of industrial research and assessment centers 
        established under paragraph (1).
            ``(6) Advanced manufacturing steering committee.--The 
        Secretary shall establish an advisory steering committee to 
        provide recommendations to the Secretary on planning and 
        implementation of the Advanced Manufacturing Office of the 
        Department of Energy.''.

SEC. 203. SUSTAINABLE MANUFACTURING INITIATIVE.

    (a) In General.--Part E of title III of the Energy Policy and 
Conservation Act (42 U.S.C. 6341) is amended by adding at the end the 
following:

``SEC. 376. SUSTAINABLE MANUFACTURING INITIATIVE.

    ``(a) In General.--As part of the Office of Energy Efficiency and 
Renewable Energy, the Secretary, on the request of a manufacturer, 
shall conduct onsite technical assessments to identify opportunities 
for--
            ``(1) maximizing the energy efficiency of industrial 
        processes and cross-cutting systems;
            ``(2) preventing pollution and minimizing waste;
            ``(3) improving efficient use of water in manufacturing 
        processes;
            ``(4) conserving natural resources; and
            ``(5) achieving such other goals as the Secretary 
        determines to be appropriate.
    ``(b) Coordination.--The Secretary shall carry out the initiative 
in coordination with the private sector and appropriate agencies, 
including the National Institute of Standards and Technology, to 
accelerate adoption of new and existing technologies and processes that 
improve energy efficiency.
    ``(c) Research and Development Program for Sustainable 
Manufacturing and Industrial Technologies and Processes.--As part of 
the industrial efficiency programs of the Department of Energy, the 
Secretary shall carry out a joint industry-government partnership 
program to research, develop, and demonstrate new sustainable 
manufacturing and industrial technologies and processes that maximize 
the energy efficiency of industrial plants, reduce pollution, and 
conserve natural resources.''.
    (b) Table of Contents.--The table of contents of the Energy Policy 
and Conservation Act (42 U.S.C. prec. 6201) is amended by adding at the 
end of the items relating to part E of title III the following:

``Sec. 376. Sustainable manufacturing initiative.''.

SEC. 204. CONFORMING AMENDMENTS.

    (a) Section 106 of the Energy Policy Act of 2005 (42 U.S.C. 15811) 
is repealed.
    (b) Sections 131, 132, 133, 2103, and 2107 of the Energy Policy Act 
of 1992 (42 U.S.C. 6348, 6349, 6350, 13453, 13456) are repealed.
    (c) Section 2101(a) of the Energy Policy Act of 1992 (42 U.S.C. 
13451(a)) is amended in the third sentence by striking ``sections 2102, 
2103, 2104, 2105, 2106, 2107, and 2108'' and inserting ``sections 2102, 
2104, 2105, 2106, and 2108 of this Act and section 376 of the Energy 
Policy and Conservation Act,''.

                        Subtitle B--Supply Star

SEC. 211. SUPPLY STAR.

    The Energy Policy and Conservation Act is amended by inserting 
after section 324A (42 U.S.C. 6294a) the following:

``SEC. 324B. SUPPLY STAR PROGRAM.

    ``(a) In General.--There is established within the Department of 
Energy a Supply Star program to identify and promote practices, 
recognize companies, and, as appropriate, recognize products that use 
highly efficient supply chains in a manner that conserves energy, 
water, and other resources.
    ``(b) Coordination.--In carrying out the program described in 
subsection (a), the Secretary shall--
            ``(1) consult with other appropriate agencies; and
            ``(2) coordinate efforts with the Energy Star program 
        established under section 324A.
    ``(c) Duties.--In carrying out the Supply Star program described in 
subsection (a), the Secretary shall--
            ``(1) promote practices, recognize companies, and, as 
        appropriate, recognize products that comply with the Supply 
        Star program as the preferred practices, companies, and 
        products in the marketplace for maximizing supply chain 
        efficiency;
            ``(2) work to enhance industry and public awareness of the 
        Supply Star program;
            ``(3) collect and disseminate data on supply chain energy 
        resource consumption;
            ``(4) develop and disseminate metrics, processes, and 
        analytical tools (including software) for evaluating supply 
        chain energy resource use;
            ``(5) develop guidance at the sector level for improving 
        supply chain efficiency;
            ``(6) work with domestic and international organizations to 
        harmonize approaches to analyzing supply chain efficiency, 
        including the development of a consistent set of tools, 
        templates, calculators, and databases; and
            ``(7) work with industry, including small businesses, to 
        improve supply chain efficiency through activities that 
        include--
                    ``(A) developing and sharing best practices; and
                    ``(B) providing opportunities to benchmark supply 
                chain efficiency.
    ``(d) Evaluation.--In any evaluation of supply chain efficiency 
carried out by the Secretary with respect to a specific product, the 
Secretary shall consider energy consumption and resource use throughout 
the entire lifecycle of a product, including production, transport, 
packaging, use, and disposal.
    ``(e) Grants and Incentives.--
            ``(1) In general.--The Secretary may award grants or other 
        forms of incentives on a competitive basis to eligible 
        entities, as determined by the Secretary, for the purposes of--
                    ``(A) studying supply chain energy resource 
                efficiency; and
                    ``(B) demonstrating and achieving reductions in the 
                energy resource consumption of commercial products 
                through changes and improvements to the production 
                supply and distribution chain of the products.
            ``(2) Use of information.--Any information or data 
        generated as a result of the grants or incentives described in 
        paragraph (1) shall be used to inform the development of the 
        Supply Star Program.
    ``(f) Training.--The Secretary shall use funds to support 
professional training programs to develop and communicate methods, 
practices, and tools for improving supply chain efficiency.
    ``(g) Effect of Outsourcing of American Jobs.--For purposes of this 
section, the outsourcing of American jobs in the production of a 
product shall not count as a positive factor in determining supply 
chain efficiency.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for the period of 
fiscal years 2018 through 2027.''.

           Subtitle C--Extended Product System Rebate Program

SEC. 221. EXTENDED PRODUCT SYSTEM REBATE PROGRAM.

    (a) Definitions.--In this section:
            (1) Electric motor.--The term ``electric motor'' has the 
        meaning given the term in section 431.12 of title 10, Code of 
        Federal Regulations (as in effect on the date of enactment of 
        this Act).
            (2) Electronic control.--The term ``electronic control'' 
        means--
                    (A) a power converter; or
                    (B) a combination of a power circuit and control 
                circuit included on 1 chassis.
            (3) Extended product system.--The term ``extended product 
        system'' means an electric motor and any required associated 
        electronic control and driven load that--
                    (A) offers variable speed or multispeed operation;
                    (B) offers partial load control that reduces input 
                energy requirements (as measured in kilowatt-hours) as 
                compared to identified base levels set by the 
                Secretary; and
                    (C)(i) has greater than 1 horsepower; and
                    (ii) uses an extended product system technology, as 
                determined by the Secretary.
            (4) Qualified extended product system.--
                    (A) In general.--The term ``qualified extended 
                product system'' means an extended product system 
                that--
                            (i) includes an electric motor and an 
                        electronic control; and
                            (ii) reduces the input energy (as measured 
                        in kilowatt-hours) required to operate the 
                        extended product system by not less than 5 
                        percent, as compared to identified base levels 
                        set by the Secretary.
                    (B) Inclusions.--The term ``qualified extended 
                product system'' includes commercial or industrial 
                machinery or equipment that--
                            (i)(I) did not previously make use of the 
                        extended product system prior to the redesign 
                        described in subclause (II); and
                            (II) incorporates an extended product 
                        system that has greater than 1 horsepower into 
                        redesigned machinery or equipment; and
                            (ii) was previously used prior to, and was 
                        placed back into service during, calendar year 
                        2019 or 2020.
    (b) Establishment.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall establish a program to 
provide rebates for expenditures made by qualified entities for the 
purchase or installation of a qualified extended product system.
    (c) Qualified Entities.--
            (1) Eligibility requirements.--A qualified entity under 
        this section shall be--
                    (A) in the case of a qualified extended product 
                system described in subsection (a)(4)(A), the purchaser 
                of the qualified extended product that is installed; 
                and
                    (B) in the case of a qualified extended product 
                system described in subsection (a)(4)(B), the 
                manufacturer of the commercial or industrial machinery 
                or equipment that incorporated the extended product 
                system into that machinery or equipment.
            (2) Application.--To be eligible to receive a rebate under 
        this section, a qualified entity shall submit to the 
        Secretary--
                    (A) an application in such form, at such time, and 
                containing such information as the Secretary may 
                require; and
                    (B) a certification that includes demonstrated 
                evidence--
                            (i) that the entity is a qualified entity; 
                        and
                            (ii)(I) in the case of a qualified entity 
                        described in paragraph (1)(A)--
                                    (aa) that the qualified entity 
                                installed the qualified extended 
                                product system during the 2 fiscal 
                                years following the date of enactment 
                                of this Act;
                                    (bb) that the qualified extended 
                                product system meets the requirements 
                                of subsection (a)(4)(A); and
                                    (cc) showing the serial number, 
                                manufacturer, and model number from the 
                                nameplate of the installed motor of the 
                                qualified entity on which the qualified 
                                extended product system was installed; 
                                or
                            (II) in the case of a qualified entity 
                        described in paragraph (1)(B), demonstrated 
                        evidence--
                                    (aa) that the qualified extended 
                                product system meets the requirements 
                                of subsection (a)(4)(B); and
                                    (bb) showing the serial number, 
                                manufacturer, and model number from the 
                                nameplate of the installed motor of the 
                                qualified entity with which the 
                                extended product system is integrated.
    (d) Authorized Amount of Rebate.--
            (1) In general.--The Secretary may provide to a qualified 
        entity a rebate in an amount equal to the product obtained by 
        multiplying--
                    (A) an amount equal to the sum of the nameplate 
                rated horsepower of--
                            (i) the electric motor to which the 
                        qualified extended product system is attached; 
                        and
                            (ii) the electronic control; and
                    (B) $25.
            (2) Maximum aggregate amount.--A qualified entity shall not 
        be entitled to aggregate rebates under this section in excess 
        of $25,000 per calendar year.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each of the first 
2 full fiscal years following the date of enactment of this Act, to 
remain available until expended.

                 Subtitle D--Transformer Rebate Program

SEC. 231. ENERGY EFFICIENT TRANSFORMER REBATE PROGRAM.

    (a) Definitions.--In this section:
            (1) Qualified energy efficient transformer.--The term 
        ``qualified energy efficient transformer'' means a transformer 
        that meets or exceeds the applicable energy conservation 
        standards described in the tables in subsection (b)(2) and 
        paragraphs (1) and (2) of subsection (c) of section 431.196 of 
        title 10, Code of Federal Regulations (as in effect on the date 
        of enactment of this Act).
            (2) Qualified energy inefficient transformer.--The term 
        ``qualified energy inefficient transformer'' means a 
        transformer with an equal number of phases and capacity to a 
        transformer described in any of the tables in subsection (b)(2) 
        and paragraphs (1) and (2) of subsection (c) of section 431.196 
        of title 10, Code of Federal Regulations (as in effect on the 
        date of enactment of this Act) that--
                    (A) does not meet or exceed the applicable energy 
                conservation standards described in paragraph (1); and
                    (B)(i) was manufactured between January 1, 1985, 
                and December 31, 2006, for a transformer with an equal 
                number of phases and capacity as a transformer 
                described in the table in subsection (b)(2) of section 
                431.196 of title 10, Code of Federal Regulations (as in 
                effect on the date of enactment of this Act); or
                    (ii) was manufactured between January 1, 1990, and 
                December 31, 2009, for a transformer with an equal 
                number of phases and capacity as a transformer 
                described in the table in paragraph (1) or (2) of 
                subsection (c) of that section (as in effect on the 
                date of enactment of this Act).
            (3) Qualified entity.--The term ``qualified entity'' means 
        an owner of industrial or manufacturing facilities, commercial 
        buildings, or multifamily residential buildings, a utility, or 
        an energy service company that fulfills the requirements of 
        subsection (d).
    (b) Establishment.--Not later than 90 days after the date of 
enactment of this Act, the Secretary shall establish a program to 
provide rebates to qualified entities for expenditures made by the 
qualified entity for the replacement of a qualified energy inefficient 
transformer with a qualified energy efficient transformer.
    (c) Requirements.--To be eligible to receive a rebate under this 
section, an entity shall submit to the Secretary an application in such 
form, at such time, and containing such information as the Secretary 
may require, including demonstrated evidence--
            (1) that the entity purchased a qualified energy efficient 
        transformer;
            (2) of the core loss value of the qualified energy 
        efficient transformer;
            (3) of the age of the qualified energy inefficient 
        transformer being replaced;
            (4) of the core loss value of the qualified energy 
        inefficient transformer being replaced--
                    (A) as measured by a qualified professional or 
                verified by the equipment manufacturer, as applicable; 
                or
                    (B) for transformers described in subsection 
                (a)(2)(B)(i), as selected from a table of default 
                values as determined by the Secretary in consultation 
                with applicable industry; and
            (5) that the qualified energy inefficient transformer has 
        been permanently decommissioned and scrapped.
    (d) Authorized Amount of Rebate.--The amount of a rebate provided 
under this section shall be--
            (1) for a 3-phase or single-phase transformer with a 
        capacity of not less than 10 and not greater than 2,500 
        kilovolt-amperes, twice the amount equal to the difference in 
        Watts between the core loss value (as measured in accordance 
        with paragraphs (2) and (4) of subsection (c)) of--
                    (A) the qualified energy inefficient transformer; 
                and
                    (B) the qualified energy efficient transformer; or
            (2) for a transformer described in subsection (a)(2)(B)(i), 
        the amount determined using a table of default rebate values by 
        rated transformer output, as measured in kilovolt-amperes, as 
        determined by the Secretary in consultation with applicable 
        industry.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2018 and 2019, to remain available until expended.
    (f) Termination of Effectiveness.--The authority provided by this 
section terminates on December 31, 2019.

              TITLE III--FEDERAL AGENCY ENERGY EFFICIENCY

SEC. 301. ENERGY-EFFICIENT AND ENERGY-SAVING INFORMATION TECHNOLOGIES.

    Section 543 of the National Energy Conservation Policy Act (42 
U.S.C. 8253) is amended--
            (1) by redesignating the second subsection (f) (relating to 
        large capital energy investments) as subsection (g); and
            (2) by adding at the end the following:
    ``(h) Federal Implementation Strategy for Energy-Efficient and 
Energy-Saving Information Technologies.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Director.--The term `Director' means the 
                Director of the Office of Management and Budget.
                    ``(B) Information technology.--The term 
                `information technology' has the meaning given the term 
                in section 11101 of title 40, United States Code.
            ``(2) Development of implementation strategy.--Not later 
        than 1 year after the date of enactment of this subsection, 
        each Federal agency shall collaborate with the Director to 
        develop an implementation strategy (including best-practices 
        and measurement and verification techniques) for the 
        maintenance, purchase, and use by the Federal agency of energy-
        efficient and energy-saving information technologies.
            ``(3) Administration.--In developing an implementation 
        strategy, each Federal agency shall consider--
                    ``(A) advanced metering infrastructure;
                    ``(B) energy efficient data center strategies and 
                methods of increasing asset and infrastructure 
                utilization;
                    ``(C) advanced power management tools;
                    ``(D) building information modeling, including 
                building energy management; and
                    ``(E) secure telework and travel substitution 
                tools.
            ``(4) Performance goals.--
                    ``(A) In general.--Not later than September 30, 
                2017, the Director, in consultation with the Secretary, 
                shall establish performance goals for evaluating the 
                efforts of Federal agencies in improving the 
                maintenance, purchase, and use of energy-efficient and 
                energy-saving information technology systems.
                    ``(B) Best practices.--The Chief Information 
                Officers Council established under section 3603 of 
                title 44, United States Code, shall supplement the 
                performance goals established under this paragraph with 
                recommendations on best practices for the attainment of 
                the performance goals, to include a requirement for 
                agencies to consider the use of--
                            ``(i) energy savings performance 
                        contracting; and
                            ``(ii) utility energy services contracting.
            ``(5) Reports.--
                    ``(A) Agency reports.--Each Federal agency subject 
                to the requirements of this subsection shall include in 
                the report of the agency under section 527 of the 
                Energy Independence and Security Act of 2007 (42 U.S.C. 
                17143) a description of the efforts and results of the 
                agency under this subsection.
                    ``(B) OMB government efficiency reports and 
                scorecards.--Effective beginning not later than October 
                1, 2017, the Director shall include in the annual 
                report and scorecard of the Director required under 
                section 528 of the Energy Independence and Security Act 
                of 2007 (42 U.S.C. 17144) a description of the efforts 
                and results of Federal agencies under this subsection.
                    ``(C) Use of existing reporting structures.--The 
                Director may require Federal agencies to submit any 
                information required to be submitted under this 
                subsection though reporting structures in use as of the 
                date of enactment of the Energy Savings and Industrial 
                Competitiveness Act.''.

SEC. 302. ENERGY EFFICIENT DATA CENTERS.

    Section 453 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17112) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2)(D)(iv), by striking ``the 
                organization'' and inserting ``an organization''; and
                    (B) by striking paragraph (3); and
            (2) by striking subsections (c) through (g) and inserting 
        the following:
    ``(c) Stakeholder Involvement.--
            ``(1) In general.--The Secretary and the Administrator 
        shall carry out subsection (b) in consultation with the 
        information technology industry and other key stakeholders, 
        with the goal of producing results that accurately reflect the 
        best knowledge in the most pertinent domains.
            ``(2) Considerations.--In carrying out consultation 
        described in paragraph (1), the Secretary and the Administrator 
        shall pay particular attention to organizations that--
                    ``(A) have members with expertise in energy 
                efficiency and in the development, operation, and 
                functionality of data centers, information technology 
                equipment, and software, including representatives of 
                hardware manufacturers, data center operators, and 
                facility managers;
                    ``(B) obtain and address input from the National 
                Laboratories (as that term is defined in section 2 of 
                the Energy Policy Act of 2005 (42 U.S.C. 15801)) or any 
                institution of higher education, research institution, 
                industry association, company, or public interest group 
                with applicable expertise;
                    ``(C) follow--
                            ``(i) commonly accepted procedures for the 
                        development of specifications; and
                            ``(ii) accredited standards development 
                        processes; or
                    ``(D) have a mission to promote energy efficiency 
                for data centers and information technology.
    ``(d) Measurements and Specifications.--The Secretary and the 
Administrator shall consider and assess the adequacy of the 
specifications, measurements, and benchmarks described in subsection 
(b) for use by the Federal Energy Management Program, the Energy Star 
Program, and other efficiency programs of the Department of Energy or 
the Environmental Protection Agency.
    ``(e) Study.--The Secretary, in consultation with the 
Administrator, not later than 18 months after the date of enactment of 
the Energy Savings and Industrial Competitiveness Act, shall make 
available to the public an update to the report submitted to Congress 
pursuant to section 1 of the Act of December 20, 2006 (Public Law 109-
431; 120 Stat. 2920), entitled `Report to Congress on Server and Data 
Center Energy Efficiency' and dated August 2, 2007, that provides--
            ``(1) a comparison and gap analysis of the estimates and 
        projections contained in the original report with new data 
        regarding the period from 2007 through 2016;
            ``(2) an analysis considering the impact of information 
        technologies, including virtualization and cloud computing, in 
        the public and private sectors;
            ``(3) an evaluation of the impact of the combination of 
        cloud platforms, mobile devices, social media, and big data on 
        data center energy usage; and
            ``(4) updated projections and recommendations for best 
        practices through fiscal year 2022.
    ``(f) Data Center Energy Practitioner Program.--
            ``(1) In general.--The Secretary, in consultation with key 
        stakeholders and the Director of the Office of Management and 
        Budget, shall maintain a data center energy practitioner 
        program that provides for the certification of energy 
        practitioners qualified to evaluate the energy usage and 
        efficiency opportunities in Federal data centers.
            ``(2) Evaluations.--Each Federal agency shall consider 
        having the data centers of the agency evaluated once every 4 
        years by energy practitioners certified pursuant to the 
        program, whenever practicable using certified practitioners 
        employed by the agency.
    ``(g) Open Data Initiative.--
            ``(1) In general.--The Secretary, in consultation with key 
        stakeholders and the Director of the Office of Management and 
        Budget, shall establish an open data initiative for Federal 
        data center energy usage data, with the purpose of making the 
        data available and accessible in a manner that encourages 
        further data center innovation, optimization, and 
        consolidation.
            ``(2) Consideration.--In establishing the initiative under 
        paragraph (1), the Secretary shall consider using the online 
        Data Center Maturity Model.
    ``(h) International Specifications and Metrics.--The Secretary, in 
consultation with key stakeholders, shall actively participate in 
efforts to harmonize global specifications and metrics for data center 
energy efficiency.
    ``(i) Data Center Utilization Metric.--The Secretary, in 
collaboration with key stakeholders, shall facilitate in the 
development of an efficiency metric that measures the energy efficiency 
of a data center (including equipment and facilities).
    ``(j) Protection of Proprietary Information.--The Secretary and the 
Administrator shall not disclose any proprietary information or trade 
secrets provided by any individual or company for the purposes of 
carrying out this section or the programs and initiatives established 
under this section.''.

SEC. 303. BUDGET-NEUTRAL DEMONSTRATION PROGRAM FOR ENERGY AND WATER 
              CONSERVATION IMPROVEMENTS AT MULTIFAMILY RESIDENTIAL 
              UNITS.

    (a) Establishment.--The Secretary of Housing and Urban Development 
(referred to in this section as the ``Secretary'') shall establish a 
demonstration program under which, during the period beginning on the 
date of enactment of this Act, and ending on September 30, 2020, the 
Secretary may enter into budget-neutral, performance-based agreements 
that result in a reduction in energy or water costs with such entities 
as the Secretary determines to be appropriate under which the entities 
shall carry out projects for energy or water conservation improvements 
at not more than 20,000 residential units in multifamily buildings 
participating in--
            (1) the project-based rental assistance program under 
        section 8 of the United States Housing Act of 1937 (42 U.S.C. 
        1437f), other than assistance provided under section 8(o) of 
        that Act;
            (2) the supportive housing for the elderly program under 
        section 202 of the Housing Act of 1959 (12 U.S.C. 1701q); or
            (3) the supportive housing for persons with disabilities 
        program under section 811(d)(2) of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 8013(d)(2)).
    (b) Requirements.--
            (1) Payments contingent on savings.--
                    (A) In general.--The Secretary shall provide to an 
                entity a payment under an agreement under this section 
                only during applicable years for which an energy or 
                water cost savings is achieved with respect to the 
                applicable multifamily portfolio of properties, as 
                determined by the Secretary, in accordance with 
                subparagraph (B).
                    (B) Payment methodology.--
                            (i) In general.--Each agreement under this 
                        section shall include a pay-for-success 
                        provision--
                                    (I) that will serve as a payment 
                                threshold for the term of the 
                                agreement; and
                                    (II) pursuant to which the 
                                Department of Housing and Urban 
                                Development shall share a percentage of 
                                the savings at a level determined by 
                                the Secretary that is sufficient to 
                                cover the administrative costs of 
                                carrying out this section.
                            (ii) Limitations.--A payment made by the 
                        Secretary under an agreement under this section 
                        shall--
                                    (I) be contingent on documented 
                                utility savings; and
                                    (II) not exceed the utility savings 
                                achieved by the date of the payment, 
                                and not previously paid, as a result of 
                                the improvements made under the 
                                agreement.
                    (C) Third-party verification.--Savings payments 
                made by the Secretary under this section shall be based 
                on a measurement and verification protocol that 
                includes at least--
                            (i) establishment of a weather-normalized 
                        and occupancy-normalized utility consumption 
                        baseline established preretrofit;
                            (ii) annual third-party confirmation of 
                        actual utility consumption and cost for owner-
                        paid utilities;
                            (iii) annual third-party validation of the 
                        tenant utility allowances in effect during the 
                        applicable year and vacancy rates for each unit 
                        type; and
                            (iv) annual third-party determination of 
                        savings to the Secretary.
            (2) Term.--The term of an agreement under this section 
        shall be not longer than 12 years.
            (3) Entity eligibility.--The Secretary shall--
                    (A) establish a competitive process for entering 
                into agreements under this section; and
                    (B) enter into such agreements only with entities 
                that demonstrate significant experience relating to--
                            (i) financing and operating properties 
                        receiving assistance under a program described 
                        in subsection (a);
                            (ii) oversight of energy and water 
                        conservation programs, including oversight of 
                        contractors; and
                            (iii) raising capital for energy and water 
                        conservation improvements from charitable 
                        organizations or private investors.
            (4) Geographical diversity.--Each agreement entered into 
        under this section shall provide for the inclusion of 
        properties with the greatest feasible regional and State 
        variance.
    (c) Plan and Reports.--
            (1) Plan.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary shall submit to the 
        Committees on Appropriations of the House of Representatives 
        and the Senate a detailed plan for the implementation of this 
        section.
            (2) Reports.--Not later than 1 year after the date of 
        enactment of this Act, and annually thereafter, the Secretary 
        shall--
                    (A) conduct an evaluation of the program under this 
                section; and
                    (B) submit to Congress a report describing each 
                evaluation conducted under subparagraph (A).
    (d) Funding.--For each fiscal year during which an agreement under 
this section is in effect, the Secretary may use to carry out this 
section any funds appropriated to the Secretary for the renewal of 
contracts under a program described in subsection (a).

                    TITLE IV--REGULATORY PROVISIONS

    Subtitle A--Third-Party Certification Under Energy Star Program

SEC. 401. THIRD-PARTY CERTIFICATION UNDER ENERGY STAR PROGRAM.

    Section 324A of the Energy Policy and Conservation Act (42 U.S.C. 
6294a) is amended by adding at the end the following:
    ``(e) Third-Party Certification.--
            ``(1) In general.--Subject to paragraph (2), not later than 
        180 days after the date of enactment of this subsection, the 
        Administrator shall revise the certification requirements for 
        the labeling of consumer, home, and office electronic products 
        for program partners that have complied with all requirements 
        of the Energy Star program for a period of at least 18 months.
            ``(2) Administration.--In the case of a program partner 
        described in paragraph (1), the new requirements under 
        paragraph (1)--
                    ``(A) shall not require third-party certification 
                for a product to be listed; but
                    ``(B) may require that test data and other product 
                information be submitted to facilitate product listing 
                and performance verification for a sample of products.
            ``(3) Third parties.--Nothing in this subsection prevents 
        the Administrator from using third parties in the course of the 
        administration of the Energy Star program.
            ``(4) Termination.--
                    ``(A) In general.--Subject to subparagraph (B), an 
                exemption from third-party certification provided to a 
                program partner under paragraph (1) shall terminate if 
                the program partner is found to have violated program 
                requirements with respect to at least 2 separate models 
                during a 2-year period.
                    ``(B) Resumption.--A termination for a program 
                partner under subparagraph (A) shall cease if the 
                program partner complies with all Energy Star program 
                requirements for a period of at least 3 years.''.

                  Subtitle B--Federal Green Buildings

SEC. 411. HIGH-PERFORMANCE GREEN FEDERAL BUILDINGS.

    Section 436(h) of the Energy Independence and Security Act of 2007 
(42 U.S.C. 17092(h)) is amended--
            (1) in the subsection heading, by striking ``System'' and 
        inserting ``Systems'';
            (2) by striking paragraph (1) and inserting the following:
            ``(1) In general.--Based on an ongoing review, the Federal 
        Director shall identify and shall provide to the Secretary 
        pursuant to section 305(a)(3)(D) of the Energy Conservation and 
        Production Act (42 U.S.C. 6834(a)(3)(D)), a list of those 
        certification systems that the Director identifies as the most 
        likely to encourage a comprehensive and environmentally sound 
        approach to certification of green buildings.''; and
            (3) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``system'' and inserting ``systems'';
                    (B) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) an ongoing review provided to the Secretary 
                pursuant to section 305(a)(3)(D) of the Energy 
                Conservation and Production Act (42 U.S.C. 
                6834(a)(3)(D)), which shall--
                            ``(i) be carried out by the Federal 
                        Director to compare and evaluate standards; and
                            ``(ii) allow any developer or administrator 
                        of a rating system or certification system to 
                        be included in the review;'';
                    (C) in subparagraph (E)(v), by striking ``and'' 
                after the semicolon at the end;
                    (D) in subparagraph (F), by striking the period at 
                the end and inserting a semicolon; and
                    (E) by adding at the end the following:
                    ``(G) a finding that, for all credits addressing 
                the sourcing of grown, harvested, or mined materials, 
                the system rewards the use of products that have 
                obtained certifications of responsible sourcing, such 
                as certifications provided by the Sustainable Forestry 
                Initiative, the Forest Stewardship Council, the 
                American Tree Farm System, or the Programme for the 
                Endorsement of Forest Certification; and
                    ``(H) a finding that the system incorporates life-
                cycle assessment as a credit pathway.''.

    Subtitle C--Energy Performance Requirement for Federal Buildings

SEC. 421. ENERGY PERFORMANCE REQUIREMENT FOR FEDERAL BUILDINGS.

    Section 543 of the National Energy Conservation Policy Act (42 
U.S.C. 8253) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Energy Performance Requirement for Federal Buildings.--
            ``(1) Requirement.--Subject to paragraph (2), each agency 
        shall apply energy conservation measures to, and shall improve 
        the design for the construction of, the Federal buildings of 
        the agency (including each industrial or laboratory facility) 
        so that the energy consumption per gross square foot of the 
        Federal buildings of the agency in fiscal years 2006 through 
        2017 is reduced, as compared with the energy consumption per 
        gross square foot of the Federal buildings of the agency in 
        fiscal year 2003, by the percentage specified in the following 
        table:

                                                             Percentage
``Fiscal Year                                                 Reduction
        2006...............................................          2 
        2007...............................................          4 
        2008...............................................          9 
        2009...............................................         12 
        2010...............................................         15 
        2011...............................................         18 
        2012...............................................         21 
        2013...............................................         24 
        2014...............................................         27 
        2015...............................................         30 
        2016...............................................         33 
        2017...............................................         36.
            ``(2) Exclusion for buildings with energy intensive 
        activities.--
                    ``(A) In general.--An agency may exclude from the 
                requirements of paragraph (1) any building (including 
                the associated energy consumption and gross square 
                footage) in which energy intensive activities are 
                carried out.
                    ``(B) Reports.--Each agency shall identify and list 
                in each report made under section 548(a) the buildings 
                designated by the agency for exclusion under 
                subparagraph (A).
            ``(3) Review.--Not later than December 31, 2017, the 
        Secretary shall--
                    ``(A) review the results of the implementation of 
                the energy performance requirements established under 
                paragraph (1); and
                    ``(B) based on the review conducted under 
                subparagraph (A), submit to Congress a report that 
                addresses the feasibility of requiring each agency to 
                apply energy conservation measures to, and improve the 
                design for the construction of, the Federal buildings 
                of the agency (including each industrial or laboratory 
                facility) so that the energy consumption per gross 
                square foot of the Federal buildings of the agency in 
                each of fiscal years 2018 through 2030 is reduced, as 
                compared with the energy consumption per gross square 
                foot of the Federal buildings of the agency in the 
                prior fiscal year, by 3 percent.''; and
            (2) in subsection (f)--
                    (A) in paragraph (1)--
                            (i) by redesignating subparagraphs (E), 
                        (F), and (G) as subparagraphs (F), (G), and 
                        (H), respectively; and
                            (ii) by inserting after subparagraph (D) 
                        the following:
                    ``(E) Ongoing commissioning.--The term `ongoing 
                commissioning' means an ongoing process of 
                commissioning using monitored data, the primary goal of 
                which is to ensure continuous optimum performance of a 
                facility, in accordance with design or operating needs, 
                over the useful life of the facility, while meeting 
                facility occupancy requirements.'';
                    (B) in paragraph (2), by adding at the end the 
                following:
                    ``(C) Energy management system.--An energy manager 
                designated under subparagraph (A) shall consider use of 
                a system to manage energy use at the facility and 
                certification of the facility in accordance with the 
                International Organization for Standardization standard 
                numbered 50001 and entitled `Energy Management 
                Systems'.'';
                    (C) by striking paragraphs (3) and (4) and 
                inserting the following:
            ``(3) Energy and water evaluations and commissioning.--
                    ``(A) Evaluations.--Except as provided in 
                subparagraph (B), effective beginning on the date that 
                is 180 days after the date of enactment of the Energy 
                Savings and Industrial Competitiveness Act, and 
                annually thereafter, each energy manager shall 
                complete, for each calendar year, a comprehensive 
                energy and water evaluation and recommissioning or 
                retrocommissioning for approximately 25 percent of the 
                facilities of each agency that meet the criteria under 
                paragraph (2)(B) in a manner that ensures that an 
                evaluation of each facility is completed at least once 
                every 4 years.
                    ``(B) Exceptions.--An evaluation and 
                recommissioning shall not be required under 
                subparagraph (A) with respect to a facility that--
                            ``(i) has had a comprehensive energy and 
                        water evaluation during the 8-year period 
                        preceding the date of the evaluation;
                            ``(ii)(I) has been commissioned, 
                        recommissioned, or retrocommissioned during the 
                        10-year period preceding the date of the 
                        evaluation; or
                            ``(II) is under ongoing commissioning;
                            ``(iii) has not had a major change in 
                        function or use since the previous evaluation 
                        and commissioning;
                            ``(iv) has been benchmarked with public 
                        disclosure under paragraph (8) within the year 
                        preceding the evaluation; and
                            ``(v)(I) based on the benchmarking, has 
                        achieved at a facility level the most recent 
                        cumulative energy savings target under 
                        subsection (a) compared to the earlier of--
                                    ``(aa) the date of the most recent 
                                evaluation; or
                                    ``(bb) the date--
                                            ``(AA) of the most recent 
                                        commissioning, recommissioning, 
                                        or retrocommissioning; or
                                            ``(BB) on which ongoing 
                                        commissioning began; or
                            ``(II) has a long-term contract in place 
                        guaranteeing energy savings at least as great 
                        as the energy savings target under subclause 
                        (I).
            ``(4) Implementation of identified energy and water 
        efficiency measures.--
                    ``(A) In general.--Not later than 2 years after the 
                date of completion of each evaluation under paragraph 
                (3), each energy manager may--
                            ``(i) implement any energy- or water-saving 
                        measure that the Federal agency identified in 
                        the evaluation conducted under paragraph (3) 
                        that is life-cycle cost effective; and
                            ``(ii) bundle individual measures of 
                        varying paybacks together into combined 
                        projects.
                    ``(B) Measures not implemented.--The energy manager 
                shall, as part of the certification system under 
                paragraph (7), explain the reasons why any life-cycle 
                cost effective measures were not implemented under 
                subparagraph (A) using guidelines developed by the 
                Secretary.''; and
                    (D) in paragraph (7)(C), by adding at the end the 
                following:
                            ``(iii) Summary report.--The Secretary 
                        shall make available a report that summarizes 
                        the information tracked under subparagraph 
                        (B)(i) by each agency and, as applicable, by 
                        each type of measure.''.

SEC. 422. FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE STANDARDS; 
              CERTIFICATION SYSTEM AND LEVEL FOR GREEN BUILDINGS.

    (a) Definitions.--Section 303 of the Energy Conservation and 
Production Act (42 U.S.C. 6832) (as amended by section 101(a)) is 
amended--
            (1) in paragraph (6), by striking ``to be constructed'' and 
        inserting ``constructed or altered''; and
            (2) by adding at the end the following:
            ``(19) Major renovation.--The term `major renovation' means 
        a modification of building energy systems sufficiently 
        extensive that the whole building can meet energy standards for 
        new buildings, based on criteria to be established by the 
        Secretary through notice and comment rulemaking.''.
    (b) Federal Building Efficiency Standards.--Section 305 of the 
Energy Conservation and Production Act (42 U.S.C. 6834) is amended--
            (1) in subsection (a)(3)--
                    (A) by striking ``(3)(A) Not later than'' and all 
                that follows through subparagraph (B) and inserting the 
                following:
            ``(3) Revised federal building energy efficiency 
        performance standards; certification for green buildings.--
                    ``(A) Revised federal building energy efficiency 
                performance standards.--
                            ``(i) In general.--Not later than 1 year 
                        after the date of enactment of the Energy 
                        Savings and Industrial Competitiveness Act, the 
                        Secretary shall establish, by rule, revised 
                        Federal building energy efficiency performance 
                        standards that require that--
                                    ``(I) new Federal buildings and 
                                alterations and additions to existing 
                                Federal buildings--
                                            ``(aa) meet or exceed the 
                                        most recent revision of the 
                                        International Energy 
                                        Conservation Code (in the case 
                                        of residential buildings) or 
                                        ASHRAE Standard 90.1 (in the 
                                        case of commercial buildings) 
                                        as of the date of enactment of 
                                        the Energy Savings and 
                                        Industrial Competitiveness Act; 
                                        and
                                            ``(bb) meet or exceed the 
                                        energy provisions of State and 
                                        local building codes applicable 
                                        to the building, if the codes 
                                        are more stringent than the 
                                        International Energy 
                                        Conservation Code or ASHRAE 
                                        Standard 90.1, as applicable;
                                    ``(II) unless demonstrated not to 
                                be life-cycle cost effective for new 
                                Federal buildings and Federal buildings 
                                with major renovations--
                                            ``(aa) the buildings be 
                                        designed to achieve energy 
                                        consumption levels that are at 
                                        least 30 percent below the 
                                        levels established in the 
                                        version of the ASHRAE Standard 
                                        or the International Energy 
                                        Conservation Code, as 
                                        appropriate, that is applied 
                                        under subclause (I)(aa), 
                                        including updates under 
                                        subparagraph (B); and
                                            ``(bb) sustainable design 
                                        principles are applied to the 
                                        location, siting, design, and 
                                        construction of all new Federal 
                                        buildings and replacement 
                                        Federal buildings;
                                    ``(III) if water is used to achieve 
                                energy efficiency, water conservation 
                                technologies shall be applied to the 
                                extent that the technologies are life-
                                cycle cost effective; and
                                    ``(IV) if life-cycle cost 
                                effective, as compared to other 
                                reasonably available technologies, not 
                                less than 30 percent of the hot water 
                                demand for each new Federal building or 
                                Federal building undergoing a major 
                                renovation be met through the 
                                installation and use of solar hot water 
                                heaters.
                            ``(ii) Limitation.--Clause (i)(I) shall not 
                        apply to unaltered portions of existing Federal 
                        buildings and systems that have been added to 
                        or altered.
                    ``(B) Updates.--Not later than 1 year after the 
                date of approval of each subsequent revision of the 
                ASHRAE Standard or the International Energy 
                Conservation Code, as appropriate, the Secretary shall 
                determine whether the revised standards established 
                under subparagraph (A) should be updated to reflect the 
                revisions, based on the energy savings and life-cycle 
                cost-effectiveness of the revisions.'';
                    (B) in subparagraph (C), by striking ``(C) In the 
                budget request'' and inserting the following:
                    ``(C) Budget request.--In the budget request''; and
                    (C) by striking subparagraph (D) and inserting the 
                following:
                    ``(D) Certification for green buildings.--
                            ``(i) Sustainable design principles.--
                        Sustainable design principles shall be applied 
                        to the siting, design, and construction of 
                        buildings covered by this subparagraph.
                            ``(ii) Selection of certification 
                        systems.--The Secretary, after reviewing the 
                        findings of the Federal Director under section 
                        436(h) of the Energy Independence and Security 
                        Act of 2007 (42 U.S.C. 17092(h)), in 
                        consultation with the Administrator of General 
                        Services, and in consultation with the 
                        Secretary of Defense relating to those 
                        facilities under the custody and control of the 
                        Department of Defense, shall determine those 
                        certification systems for green commercial and 
                        residential buildings that the Secretary 
                        determines to be the most likely to encourage a 
                        comprehensive and environmentally sound 
                        approach to certification of green buildings.
                            ``(iii) Basis for selection.--The 
                        determination of the certification systems 
                        under clause (ii) shall be based on ongoing 
                        review of the findings of the Federal Director 
                        under section 436(h) of the Energy Independence 
                        and Security Act of 2007 (42 U.S.C. 17092(h)) 
                        and the criteria described in clause (v).
                            ``(iv) Administration.--In determining 
                        certification systems under this subparagraph, 
                        the Secretary shall--
                                    ``(I) make a separate determination 
                                for all or part of each system; and
                                    ``(II) confirm that the criteria 
                                used to support the selection of 
                                building products, materials, brands, 
                                and technologies--
                                            ``(aa) are based on 
                                        relevant technical data;
                                            ``(bb) use and reward 
                                        evaluation of health, safety, 
                                        and environmental risks and 
                                        impacts across the lifecycle of 
                                        the building product, material, 
                                        brand, or technology, including 
                                        methodologies generally 
                                        accepted by the applicable 
                                        scientific disciplines;
                                            ``(cc) as practicable, give 
                                        preference to performance 
                                        standards instead of 
                                        prescriptive measures; and
                                            ``(dd) reward continual 
                                        improvements in the lifecycle 
                                        management of health, safety, 
                                        and environmental risks and 
                                        impacts.
                            ``(v) Considerations.--In determining the 
                        green building certification systems under this 
                        subparagraph, the Secretary shall take into 
                        consideration--
                                    ``(I) the ability and availability 
                                of assessors and auditors to 
                                independently verify the criteria and 
                                measurement of metrics at the scale 
                                necessary to implement this 
                                subparagraph;
                                    ``(II) the ability of the 
                                applicable certification organization 
                                to collect and reflect public comment;
                                    ``(III) the ability of the standard 
                                to be developed and revised through a 
                                consensus-based process;
                                    ``(IV) an evaluation of the 
                                robustness of the criteria for a high-
                                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 quality, 
                                        thermal comfort, acoustics, day 
                                        lighting, pollutant source 
                                        control, and use of low-
                                        emission materials and building 
                                        system controls;
                                            ``(dd)(AA) the sourcing of 
                                        grown, harvested, or mined 
                                        materials; and
                                            ``(BB) certifications of 
                                        responsible sourcing, such as 
                                        certifications provided by the 
                                        Forest Stewardship Council, the 
                                        Sustainable Forestry 
                                        Initiative, the American Tree 
                                        Farm System, or the Programme 
                                        for the Endorsement of Forest 
                                        Certification; and
                                            ``(ee) such other criteria 
                                        as the Secretary determines to 
                                        be appropriate; and
                                    ``(V) national recognition within 
                                the building industry.
                            ``(vi) Review.--The Secretary, in 
                        consultation with the Administrator of General 
                        Services and the Secretary of Defense, shall 
                        conduct an ongoing review to evaluate and 
                        compare private sector green building 
                        certification systems, taking into account--
                                    ``(I) the criteria described in 
                                clause (v); and
                                    ``(II) the identification made by 
                                the Federal Director under section 
                                436(h) of the Energy Independence and 
                                Security Act of 2007 (42 U.S.C. 
                                17092(h)).
                            ``(vii) Exclusions.--
                                    ``(I) In general.--Subject to 
                                subclause (II), if a certification 
                                system fails to meet the review 
                                requirements of clause (v), the 
                                Secretary shall--
                                            ``(aa) identify the 
                                        portions of the system, whether 
                                        prerequisites, credits, points, 
                                        or otherwise, that meet the 
                                        review criteria of clause (v);
                                            ``(bb) determine the 
                                        portions of the system that are 
                                        suitable for use; and
                                            ``(cc) exclude all other 
                                        portions of the system from 
                                        identification and use.
                                    ``(II) Entire systems.--The 
                                Secretary shall exclude an entire 
                                system from use if an exclusion under 
                                subclause (I)--
                                            ``(aa) impedes the 
                                        integrated use of the system;
                                            ``(bb) creates disparate 
                                        review criteria or unequal 
                                        point access for competing 
                                        materials; or
                                            ``(cc) increases agency 
                                        costs of the use.
                            ``(viii) Internal certification 
                        processes.--The Secretary may by rule allow 
                        Federal agencies to develop internal 
                        certification processes, using certified 
                        professionals, in lieu of certification by 
                        certification entities identified under clause 
                        (ii).
                            ``(ix) Privatized military housing.--With 
                        respect to privatized military housing, the 
                        Secretary of Defense, after consultation with 
                        the Secretary may, through rulemaking, develop 
                        alternative certification systems and levels 
                        than the systems and levels identified under 
                        clause (ii) that achieve an equivalent result 
                        in terms of energy savings, sustainable design, 
                        and green building performance.
                            ``(x) Water conservation technologies.--In 
                        addition to any use of water conservation 
                        technologies otherwise required by this 
                        section, water conservation technologies shall 
                        be applied to the extent that the technologies 
                        are life-cycle cost-effective.
                            ``(xi) Effective date.--
                                    ``(I) Determinations made after 
                                december 31, 2017.--The amendments made 
                                by section 432(b)(1)(C) of Energy 
                                Savings and Industrial Competitiveness 
                                Act shall apply to any determination 
                                made by a Federal agency after December 
                                31, 2017.
                                    ``(II) Determinations made on or 
                                before december 31, 2017.--This 
                                subparagraph (as in effect on the day 
                                before the date of enactment of Energy 
                                Savings and Industrial Competitiveness 
                                Act) shall apply to any use of a 
                                certification system for green 
                                commercial and residential buildings by 
                                a Federal agency on or before December 
                                31, 2017.''; and
            (2) by striking subsections (c) and (d) and inserting the 
        following:
    ``(c) Periodic Review.--The Secretary shall--
            ``(1) once every 5 years, review the Federal building 
        energy standards established under this section; and
            ``(2) on completion of a review under paragraph (1), if the 
        Secretary determines that significant energy savings would 
        result, upgrade the standards to include all new energy 
        efficiency and renewable energy measures that are 
        technologically feasible and economically justified.''.

SEC. 423. ENHANCED ENERGY EFFICIENCY UNDERWRITING.

    (a) Definitions.--In this section:
            (1) Covered agency.--The term ``covered agency''--
                    (A) means--
                            (i) an executive agency, as that term is 
                        defined in section 102 of title 31, United 
                        States Code; and
                            (ii) any other agency of the Federal 
                        Government; and
                    (B) includes any enterprise, as that term is 
                defined under section 1303 of the Federal Housing 
                Enterprises Financial Safety and Soundness Act of 1992 
                (12 U.S.C. 4502).
            (2) Covered loan.--The term ``covered loan'' means a loan 
        secured by a home that is issued, insured, purchased, or 
        securitized by a covered agency.
            (3) Homeowner.--The term ``homeowner'' means the mortgagor 
        under a covered loan.
            (4) Mortgagee.--The term ``mortgagee'' means--
                    (A) an original lender under a covered loan or the 
                holder of a covered loan at the time at which that 
                mortgage transaction is consummated;
                    (B) any affiliate, agent, subsidiary, successor, or 
                assignee of an original lender under a covered loan or 
                the holder of a covered loan at the time at which that 
                mortgage transaction is consummated;
                    (C) any servicer of a covered loan; and
                    (D) any subsequent purchaser, trustee, or 
                transferee of any covered loan issued by an original 
                lender.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (6) Servicer.--The term ``servicer'' means the person or 
        entity responsible for the servicing of a covered loan, 
        including the person or entity who makes or holds a covered 
        loan if that person or entity also services the covered loan.
            (7) Servicing.--The term ``servicing'' has the meaning 
        given the term in section 6(i) of the Real Estate Settlement 
        Procedures Act of 1974 (12 U.S.C. 2605(i)).
    (b) Findings and Purposes.--
            (1) Findings.--Congress finds that--
                    (A) energy costs for homeowners are a significant 
                and increasing portion of their household budgets;
                    (B) household energy use can vary substantially 
                depending on the efficiency and characteristics of the 
                house;
                    (C) expected energy cost savings are important to 
                the value of the house;
                    (D) the current test for loan affordability used by 
                most covered agencies, commonly known as the ``debt-to-
                income'' test, is inadequate because it does not take 
                into account the expected energy cost savings for the 
                homeowner of an energy efficient home; and
                    (E) another loan limitation, commonly known as the 
                ``loan-to-value'' test, is tied to the appraisal, which 
                often does not adjust for efficiency features of 
                houses.
            (2) Purposes.--The purposes of this section are to--
                    (A) improve the accuracy of mortgage underwriting 
                by Federal mortgage agencies by ensuring that energy 
                cost savings are included in the underwriting process 
                as described below, and thus to reduce the amount of 
                energy consumed by homes and to facilitate the creation 
                of energy efficiency retrofit and construction jobs;
                    (B) require a covered agency to include the 
                expected energy cost savings of a homeowner as a 
                regular expense in the tests, such as the debt-to-
                income test, used to determine the ability of the loan 
                applicant to afford the cost of homeownership for all 
                loan programs; and
                    (C) require a covered agency to include the value 
                home buyers place on the energy efficiency of a house 
                in tests used to compare the mortgage amount to home 
                value, taking precautions to avoid double-counting and 
                to support safe and sound lending.
    (c) Enhanced Energy Efficiency Underwriting Criteria.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall, in consultation 
        with the advisory group established in subsection (f)(2), 
        develop and issue guidelines for a covered agency to implement 
        enhanced loan eligibility requirements, for use when testing 
        the ability of a loan applicant to repay a covered loan, that 
        account for the expected energy cost savings for a loan 
        applicant at a subject property, in the manner set forth in 
        paragraphs (2) and (3).
            (2) Requirements to account for energy cost savings.--The 
        enhanced loan eligibility requirements under paragraph (1) 
        shall require that, for all covered loans for which an energy 
        efficiency report is voluntarily provided to the mortgagee by 
        the mortgagor, the covered agency and the mortgagee shall take 
        into consideration the estimated energy cost savings expected 
        for the owner of the subject property in determining whether 
        the loan applicant has sufficient income to service the 
        mortgage debt plus other regular expenses. To the extent that a 
        covered agency uses a test such as a debt-to-income test that 
        includes certain regular expenses, such as hazard insurance and 
        property taxes, the expected energy cost savings shall be 
        included as an offset to these expenses. Energy costs to be 
        assessed include the cost of electricity, natural gas, oil, and 
        any other fuel regularly used to supply energy to the subject 
        property.
            (3) Determination of estimated energy cost savings.--
                    (A) In general.--The guidelines to be issued under 
                paragraph (1) shall include instructions for the 
                covered agency to calculate estimated energy cost 
                savings using--
                            (i) the energy efficiency report;
                            (ii) an estimate of baseline average energy 
                        costs; and
                            (iii) additional sources of information as 
                        determined by the Secretary.
                    (B) Report requirements.--For the purposes of 
                subparagraph (A), an energy efficiency report shall--
                            (i) estimate the expected energy cost 
                        savings specific to the subject property, based 
                        on specific information about the property;
                            (ii) be prepared in accordance with the 
                        guidelines to be issued under paragraph (1); 
                        and
                            (iii) be prepared--
                                    (I) in accordance with the 
                                Residential Energy Service Network's 
                                Home Energy Rating System (commonly 
                                known as ``HERS'') by an individual 
                                certified by the Residential Energy 
                                Service Network, unless the Secretary 
                                finds that the use of HERS does not 
                                further the purposes of this section; 
                                or
                                    (II) by other methods approved by 
                                the Secretary, in consultation with the 
                                Secretary of Energy and the advisory 
                                group established in subsection (f)(2), 
                                for use under this section, which shall 
                                include a third-party quality assurance 
                                procedure.
                    (C) Use by appraiser.--If an energy efficiency 
                report is used under paragraph (2), the energy 
                efficiency report shall be provided to the appraiser to 
                estimate the energy efficiency of the subject property 
                and for potential adjustments for energy efficiency.
            (4) Required disclosure to consumer for a home with an 
        energy efficiency report.--If an energy efficiency report is 
        used under paragraph (2), the guidelines to be issued under 
        paragraph (1) shall require the mortgagee to--
                    (A) inform the loan applicant of the expected 
                energy costs as estimated in the energy efficiency 
                report, in a manner and at a time as prescribed by the 
                Secretary, and if practicable, in the documents 
                delivered at the time of loan application; and
                    (B) include the energy efficiency report in the 
                documentation for the loan provided to the borrower.
            (5) Required disclosure to consumer for a home without an 
        energy efficiency report.--If an energy efficiency report is 
        not used under paragraph (2), the guidelines to be issued under 
        paragraph (1) shall require the mortgagee to inform the loan 
        applicant in a manner and at a time as prescribed by the 
        Secretary, and if practicable, in the documents delivered at 
        the time of loan application of--
                    (A) typical energy cost savings that would be 
                possible from a cost-effective energy upgrade of a home 
                of the size and in the region of the subject property;
                    (B) the impact the typical energy cost savings 
                would have on monthly ownership costs of a typical 
                home;
                    (C) the impact on the size of a mortgage that could 
                be obtained if the typical energy cost savings were 
                reflected in an energy efficiency report; and
                    (D) resources for improving the energy efficiency 
                of a home.
            (6) Pricing of loans.--
                    (A) In general.--A covered agency may price covered 
                loans originated under the enhanced loan eligibility 
                requirements required under this section in accordance 
                with the estimated risk of the loans.
                    (B) Imposition of certain material costs, 
                impediments, or penalties.--In the absence of a 
                publicly disclosed analysis that demonstrates 
                significant additional default risk or prepayment risk 
                associated with the loans, a covered agency shall not 
                impose material costs, impediments, or penalties on 
                covered loans merely because the loan uses an energy 
                efficiency report or the enhanced loan eligibility 
                requirements required under this section.
            (7) Limitations.--
                    (A) In general.--A covered agency may price covered 
                loans originated under the enhanced loan eligibility 
                requirements required under this section in accordance 
                with the estimated risk of those loans.
                    (B) Prohibited actions.--A covered agency shall 
                not--
                            (i) modify existing underwriting criteria 
                        or adopt new underwriting criteria that 
                        intentionally negate or reduce the impact of 
                        the requirements or resulting benefits that are 
                        set forth or otherwise derived from the 
                        enhanced loan eligibility requirements required 
                        under this subsection; or
                            (ii) impose greater buy back requirements, 
                        credit overlays, or insurance requirements, 
                        including private mortgage insurance, on 
                        covered loans merely because the loan uses an 
                        energy efficiency report or the enhanced loan 
                        eligibility requirements required under this 
                        subsection.
            (8) Applicability and implementation date.--Not later than 
        3 years after the date of enactment of this Act, and before 
        December 31, 2019, the enhanced loan eligibility requirements 
        required under this subsection shall be implemented by each 
        covered agency to--
                    (A) apply to any covered loan for the sale, or 
                refinancing of any loan for the sale, of any home;
                    (B) be available on any residential real property 
                (including individual units of condominiums and 
                cooperatives) that qualifies for a covered loan; and
                    (C) provide prospective mortgagees with sufficient 
                guidance and applicable tools to implement the required 
                underwriting methods.
    (d) Enhanced Energy Efficiency Underwriting Valuation Guidelines.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall--
                    (A) in consultation with the Federal Financial 
                Institutions Examination Council and the advisory group 
                established in subsection (f)(2), develop and issue 
                guidelines for a covered agency to determine the 
                maximum permitted loan amount based on the value of the 
                property for all covered loans made on properties with 
                an energy efficiency report that meets the requirements 
                of subsection (c)(3)(B); and
                    (B) in consultation with the Secretary of Energy, 
                issue guidelines for a covered agency to determine the 
                estimated energy savings under paragraph (3) for 
                properties with an energy efficiency report.
            (2) Requirements.--The enhanced energy efficiency 
        underwriting valuation guidelines required under paragraph (1) 
        shall include--
                    (A) a requirement that if an energy efficiency 
                report that meets the requirements of subsection 
                (c)(3)(B) is voluntarily provided to the mortgagee, 
                such report shall be used by the mortgagee or covered 
                agency to determine the estimated energy savings of the 
                subject property; and
                    (B) a requirement that the estimated energy savings 
                of the subject property be added to the appraised value 
                of the subject property by a mortgagee or covered 
                agency for the purpose of determining the loan-to-value 
                ratio of the subject property, unless the appraisal 
                includes the value of the overall energy efficiency of 
                the subject property, using methods to be established 
                under the guidelines issued under paragraph (1).
            (3) Determination of estimated energy savings.--
                    (A) Amount of energy savings.--The amount of 
                estimated energy savings shall be determined by 
                calculating the difference between the estimated energy 
                costs for the average comparable houses, as determined 
                in guidelines to be issued under paragraph (1), and the 
                estimated energy costs for the subject property based 
                upon the energy efficiency report.
                    (B) Duration of energy savings.--The duration of 
                the estimated energy savings shall be based upon the 
                estimated life of the applicable equipment, consistent 
                with the rating system used to produce the energy 
                efficiency report.
                    (C) Present value of energy savings.--The present 
                value of the future savings shall be discounted using 
                the average interest rate on conventional 30-year 
                mortgages, in the manner directed by guidelines issued 
                under paragraph (1).
            (4) Ensuring consideration of energy efficient features.--
        Section 1110 of the Financial Institutions Reform, Recovery, 
        and Enforcement Act of 1989 (12 U.S.C. 3339) is amended--
                    (A) in paragraph (2), by striking ``; and'' and 
                inserting a semicolon; and
                    (B) in paragraph (3), by striking the period at the 
                end and inserting ``; and'' and inserting after 
                paragraph (3) the following:
            ``(4) that State certified and licensed appraisers have 
        timely access, whenever practicable, to information from the 
        property owner and the lender that may be relevant in 
        developing an opinion of value regarding the energy- and water-
        saving improvements or features of a property, such as--
                    ``(A) labels or ratings of buildings;
                    ``(B) installed appliances, measures, systems or 
                technologies;
                    ``(C) blueprints;
                    ``(D) construction costs;
                    ``(E) financial or other incentives regarding 
                energy- and water-efficient components and systems 
                installed in a property;
                    ``(F) utility bills;
                    ``(G) energy consumption and benchmarking data; and
                    ``(H) third-party verifications or representations 
                of energy and water efficiency performance of a 
                property, observing all financial privacy requirements 
                adhered to by certified and licensed appraisers, 
                including section 501 of the Gramm-Leach-Bliley Act (15 
                U.S.C. 6801).
        Unless a property owner consents to a lender, an appraiser, in 
        carrying out the requirements of paragraph (4), shall not have 
        access to the commercial or financial information of the owner 
        that is privileged or confidential.''.
            (5) Transactions requiring state certified appraisers.--
        Section 1113 of the Financial Institutions Reform, Recovery, 
        and Enforcement Act of 1989 (12 U.S.C. 3342) is amended--
                    (A) in paragraph (1), by inserting before the 
                semicolon the following: ``, or any real property on 
                which the appraiser makes adjustments using an energy 
                efficiency report''; and
                    (B) in paragraph (2), by inserting after 
                ``atypical'' the following: ``, or an appraisal on 
                which the appraiser makes adjustments using an energy 
                efficiency report.''.
            (6) Protections.--
                    (A) Authority to impose limitations.--The 
                guidelines to be issued under paragraph (1) shall 
                include such limitations and conditions as determined 
                by the Secretary to be necessary to protect against 
                meaningful under or over valuation of energy cost 
                savings or duplicative counting of energy efficiency 
                features or energy cost savings in the valuation of any 
                subject property that is used to determine a loan 
                amount.
                    (B) Additional authority.--At the end of the 7-year 
                period following the implementation of enhanced 
                eligibility and underwriting valuation requirements 
                under this section, the Secretary may modify or apply 
                additional exceptions to the approach described in 
                paragraph (2), where the Secretary finds that the 
                unadjusted appraisal will reflect an accurate market 
                value of the efficiency of the subject property or that 
                a modified approach will better reflect an accurate 
                market value.
            (7) Applicability and implementation date.--Not later than 
        3 years after the date of enactment of this Act, and before 
        December 31, 2019, each covered agency shall implement the 
        guidelines required under this subsection, which shall--
                    (A) apply to any covered loan for the sale, or 
                refinancing of any loan for the sale, of any home; and
                    (B) be available on any residential real property, 
                including individual units of condominiums and 
                cooperatives, that qualifies for a covered loan.
    (e) Monitoring.--Not later than 1 year after the date on which the 
enhanced eligibility and underwriting valuation requirements are 
implemented under this section, and every year thereafter, each covered 
agency with relevant activity shall issue and make available to the 
public a report that--
            (1) enumerates the number of covered loans of the agency 
        for which there was an energy efficiency report, and that used 
        energy efficiency appraisal guidelines and enhanced loan 
        eligibility requirements;
            (2) includes the default rates and rates of foreclosures 
        for each category of loans; and
            (3) describes the risk premium, if any, that the agency has 
        priced into covered loans for which there was an energy 
        efficiency report.
    (f) Rulemaking.--
            (1) In general.--The Secretary shall prescribe regulations 
        to carry out this section, in consultation with the Secretary 
        of Energy and the advisory group established in paragraph (2), 
        which may contain such classifications, differentiations, or 
        other provisions, and may provide for such proper 
        implementation and appropriate treatment of different types of 
        transactions, as the Secretary determines are necessary or 
        proper to effectuate the purposes of this section, to prevent 
        circumvention or evasion thereof, or to facilitate compliance 
        therewith.
            (2) Advisory group.--To assist in carrying out this 
        section, the Secretary shall establish an advisory group, 
        consisting of individuals representing the interests of--
                    (A) mortgage lenders;
                    (B) appraisers;
                    (C) energy raters and residential energy 
                consumption experts;
                    (D) energy efficiency organizations;
                    (E) real estate agents;
                    (F) home builders and remodelers;
                    (G) State energy officials; and
                    (H) others as determined by the Secretary.
    (g) Additional Study.--
            (1) In general.--Not later than 18 months after the date of 
        enactment of this Act, the Secretary shall reconvene the 
        advisory group established in subsection (f)(2), in addition to 
        water and locational efficiency experts, to advise the 
        Secretary on the implementation of the enhanced energy 
        efficiency underwriting criteria established in subsections (c) 
        and (d).
            (2) Recommendations.--The advisory group established in 
        subsection (f)(2) shall provide recommendations to the 
        Secretary on any revisions or additions to the enhanced energy 
        efficiency underwriting criteria deemed necessary by the group, 
        which may include alternate methods to better account for home 
        energy costs and additional factors to account for substantial 
        and regular costs of homeownership such as location-based 
        transportation costs and water costs. The Secretary shall 
        forward any legislative recommendations from the advisory group 
        to Congress for its consideration.

                         TITLE V--MISCELLANEOUS

SEC. 501. BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.

SEC. 502. ADVANCE APPROPRIATIONS REQUIRED.

    The authorization of amounts under this Act and the amendments made 
by this Act shall be effective for any fiscal year only to the extent 
and in the amount provided in advance in appropriations Acts.
                                                        Calendar No. 73

115th CONGRESS

  1st Session

                                 S. 385

                          [Report No. 115-60]

_______________________________________________________________________

                                 A BILL

 To promote energy savings in residential buildings and industry, and 
                          for other purposes.

_______________________________________________________________________

                              May 10, 2017

                       Reported without amendment