[Congressional Record Volume 147, Number 112 (Friday, August 3, 2001)]
[Senate]
[Pages S8923-S8929]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAYH:
  S. 1358. A bill to revise Federal building energy efficiency 
performance standards, to establish the Office of Federal Energy 
Productivity within the Department of Energy, to amend Federal Energy 
Management Program requirements under the National Energy Conservation 
Policy Act, to enact into law certain requirements of Executive Order 
No. 13123, and for other purposes; to the Committee on Energy and 
Natural Resources.
  Mr. BAYH. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1358

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Federal Facility Energy 
     Management Act of 2001''.

     SEC. 2. PURPOSE.

       The purpose of this Act is to increase the energy 
     efficiency of facilities of Federal agencies by--
       (1) establishing the Office of Federal Energy Productivity 
     within the Department of Energy to provide for interagency 
     coordination in evaluating opportunities for, and 
     implementation of, energy efficiency measures and programs;
       (2) updating energy reduction goals;
       (3) expanding Federal agency resources for energy 
     measurement and improving accountability by providing for--
       (A) energy metering and monitoring;
       (B) transparent energy spending; and
       (C) rigorous interagency and congressional oversight;
       (4) promoting the acquisition and operation of more 
     efficient facilities by extending the authority and 
     eligibility of a Federal agency to enter into energy savings 
     performance contracts; and
       (5) establishing a reliable and steady source of funding 
     for permanent energy capital improvement available to 
     supplement appropriations for use by Federal agencies and the 
     Architect of the Capitol--
       (A) to fund energy efficiency projects; and
       (B) to leverage funding for energy savings performance 
     contracts.

     SEC. 3. REVISED FEDERAL BUILDING ENERGY EFFICIENCY 
                   PERFORMANCE STANDARDS.

       Section 305 of the Energy Conservation and Production Act 
     (42 U.S.C. 6834) is amended--
       (1) in subsection (a)--
       (A) in paragraph (2)(A), by striking ``CABO Model Energy 
     Code, 1992'' and inserting ``the International Residential 
     Code''; and
       (B) by adding at the end the following:
       ``(3) Revised federal building energy efficiency 
     performance standards.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this paragraph, the Secretary of Energy shall 
     establish, by rule, revised Federal building energy 
     efficiency performance standards that require that--
       ``(i) new commercial buildings and multifamily high rise 
     residential buildings be constructed so as--

[[Page S8924]]

       ``(I) to have, in the aggregate, a level of energy 
     efficiency that is 10 percent greater than the level of 
     energy efficiency required under the standards established 
     under paragraph (1); and
       ``(II) to meet or exceed the most recent ASHRAE Standard 
     90.1, approved by the American Society of Heating, 
     Refrigerating and Air-Conditioning Engineers, Inc.;

       ``(ii) new residential buildings (other than those 
     described in clause (i)) be constructed so as to exceed the 
     level of energy efficiency required under the most recent 
     version of the International Residential Code by not less 
     than 10 percent.
       ``(B) Additional revisions.--Not later than 180 days after 
     the date of approval of amendments to ASHRAE Standard 90.1 or 
     the International Residential Code, the Secretary of Energy 
     shall determine, based on the cost-effectiveness of the 
     requirements under the amendments, whether the revised 
     standards established under this paragraph should be updated 
     to reflect the amendments.
       ``(C) Computer software.--The Secretary of Energy shall 
     develop computer software to facilitate compliance with the 
     revised standards established under this paragraph.
       ``(D) Statement on compliance of new buildings.--In the 
     budget request of the Federal agency for each fiscal year and 
     each report submitted by the Federal agency under section 
     548(a) of the National Energy Conservation Policy Act (42 
     U.S.C. 8258(a)), the head of each Federal agency shall 
     include--
       ``(i) a list of all new Federal buildings of the Federal 
     agency; and
       ``(ii) a statement concerning whether the Federal buildings 
     meet or exceed the revised standards established under this 
     paragraph, including a metering and commissioning component 
     that is in compliance with the measurement and verification 
     protocols of the Department of Energy.
       ``(E) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this paragraph and to implement the revised 
     standards established under this paragraph.''; and
       (2) by adding at the end the following:
       ``(e) Energy Labeling Program.--The Secretary of Energy, in 
     cooperation with the Administrator of the Environmental 
     Protection Agency, shall develop an energy labeling program 
     for new Federal buildings that exceed the revised standards 
     established under subsection (a)(3) by 15 percent or more.
       ``(f) Collection of Interval Solar Data.--The Secretary of 
     Commerce shall collect interval solar data at all weather 
     stations under the jurisdiction of the Secretary of Commerce 
     for use in determining building energy efficiency performance 
     under this section.''.

     SEC. 4. OFFICE OF FEDERAL ENERGY PRODUCTIVITY OF THE 
                   DEPARTMENT OF ENERGY.

       (a) In General.--Title II of the Department of Energy 
     Organization Act is amended by inserting after section 211 
     (42 U.S.C. 7141) the following:

     ``SEC. 212. OFFICE OF FEDERAL ENERGY PRODUCTIVITY.

       ``(a) Establishment.--There is established, within the 
     Department, the Office of Federal Energy Productivity 
     (referred to in this section as the `Office').
       ``(b) Assistant Secretary for Federal Energy 
     Productivity.--
       ``(1) In general.--The Office shall be headed by the 
     Assistant Secretary for Federal Energy Productivity (referred 
     to in this section as the `Assistant Secretary'), who shall 
     report directly to the Secretary.
       ``(2) Duties.--The Assistant Secretary shall--
       ``(A) ensure compliance with the energy use and expenditure 
     requirements applicable to Federal agencies under Federal law 
     (including Executive orders);
       ``(B) perform all duties assigned to the Director of the 
     Federal Energy Management Program of the Department of 
     Energy, including duties assigned to the Director by the 
     President by any Executive order in effect on the date of 
     enactment of this subparagraph;
       ``(C) coordinate implementation of energy efficiency 
     requirements by Federal agencies using staff of the Office 
     that have expertise in the mission of each Federal agency;
       ``(D) coordinate compilation of, and review, energy-use 
     reports required to be submitted by Federal agencies under 
     this Act and other Federal law (including Executive orders);
       ``(E) serve as a liaison from the Federal Government to the 
     private sector to identify opportunities and obstacles to 
     expanded private and Federal markets for energy management 
     technologies, energy efficiency technologies, and renewable 
     energy technologies;
       ``(F) operate the Federal Energy Bank established by 
     section 552 of the National Energy Conservation Policy Act;
       ``(G)(i) not later than 120 days after the date of 
     enactment of this subparagraph, issue such guidelines for 
     Federal agency energy preparedness and energy emergency 
     response as the Secretary determines to be appropriate; and
       ``(ii) in accordance with paragraph (3), receive, review, 
     and report on plans submitted by Federal agencies in 
     conformance with the guidelines; and
       ``(H)(i) not later than 180 days after the date on which 
     the first Assistant Secretary takes office, identify and 
     submit to Congress a list of the principal conservation 
     officers under section 656; and
       ``(ii) annually update the list.
       ``(3) Energy preparedness and energy emergency response 
     plans.--
       ``(A) Submission by federal agencies.--The head of each 
     Federal agency shall submit to the Assistant Secretary 
     annually (or at such intervals as the Secretary determines to 
     be appropriate) an energy preparedness and energy emergency 
     response plan for the Federal agency that is in conformance 
     with the guidelines issued under paragraph (2)(G)(i).
       ``(B) Review by assistant secretary.--The Assistant 
     Secretary shall review each plan submitted under subparagraph 
     (A) for effectiveness and feasibility.
       ``(C) Report to congress.--The Assistant Secretary shall 
     submit to the President and Congress an annual report on the 
     ability of each Federal agency--
       ``(i) to reduce energy use on an emergency basis; and
       ``(ii) to perform the mission of the Federal agency during 
     such a period of emergency reduced energy use.
       ``(c) Liaison to Department of Defense.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of this paragraph, the Assistant Secretary shall 
     appoint an individual employed by the Office to serve as a 
     liaison to the Department of Defense.
       ``(2) Duties.--The individual appointed under paragraph (1) 
     shall coordinate energy efficiency measures, and energy 
     efficiency reporting to the President and Congress, into the 
     operation of the Department of Defense without compromising 
     national security or the defense mission of the Department of 
     Defense.
       ``(3) Security clearance.--The individual appointed under 
     paragraph (1) shall have appropriate security clearance.
       ``(d) Report to Congress.--The Secretary, acting through 
     the Office, shall submit to Congress an annual report that--
       ``(1) describes the energy expenditures, investments, and 
     savings of each Federal agency;
       ``(2) describes the obstacles to meeting the energy 
     efficiency requirements under Federal law (including 
     Executive orders) that are faced by each Federal agency; and
       ``(3) includes an accounting of energy-consuming products 
     procured by each Federal agency that indicates--
       ``(A) which energy-consuming products procured by the 
     Federal agency during the preceding year were Energy Star 
     products or FEMP designated products (as those terms are 
     defined in section 551(a) of the National Energy Conservation 
     Policy Act); and
       ``(B) which energy-consuming products procured by the 
     Federal agency during the preceding year were neither Energy 
     Star products nor FEMP designated products.
       ``(e) Audits of Federal Energy Management Programs.--
       ``(1) In general.--The Assistant Secretary may require the 
     Inspector General of each Federal agency to conduct audits of 
     the energy management programs of the Federal agency every 3 
     years.
       ``(2) Guidelines.--The Assistant Secretary shall--
       ``(A) issue guidelines for the conduct of audits described 
     in paragraph (1); and
       ``(B) conduct training for Inspectors General on use of the 
     guidelines.''.
       (b) Liaison From Department of Defense.--The Secretary of 
     Defense shall--
       (1) establish as a senior level position within the 
     Department of Defense the position of energy management 
     liaison; and
       (2) assign to the official appointed to that position by 
     the Secretary of Defense the duty to coordinate with 
     appropriate officials of the Department of Defense and 
     appropriate officials of the Department of Energy concerning 
     energy use and expenditure requirements applicable to the 
     Department of Defense under Federal law (including Executive 
     orders).
       (c) Technical and Conforming Amendments.--The table of 
     contents in the first section of the Department of Energy 
     Organization Act (42 U.S.C. 7101 note) is amended --
       (1) in the item relating to section 209, by striking 
     ``Section'' and inserting ``Sec.'';
       (2) by inserting after the item relating to section 211 the 
     following:

``Sec. 212. Office of Federal Energy Productivity.'';
     and
       (3) in the items relating to each of sections 213 through 
     216, by inserting ``Sec.'' before the section designation.

     SEC. 5. ENERGY REDUCTION GOALS.

       (a) In General.--Section 543 of the National Energy 
     Conservation Policy Act (42 U.S.C. 8253) is amended--
       (1) in subsection (a)--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) In general.--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 
     calendar years 2002 through 2011 is reduced, as compared with 
     the energy consumption per gross square foot of the Federal 
     buildings of the agency in calendar year 2000, by the 
     percentage specified in the following table:

``Calendar year:                                  Percentage reduction:
  2002...........................................................2 ....

  2003...........................................................4 ....

  2004...........................................................6 ....

  2005...........................................................8 ....

[[Page S8925]]

  2006..........................................................10 ....

  2007..........................................................12 ....

  2008..........................................................14 ....

  2009..........................................................16 ....

  2010..........................................................18 ....

  2011.......................................................20.'';....

       (B) by striking ``(2) An'' and inserting the following:
       ``(2) Exclusion of certain federal buildings.--An''; and
       (C) by adding at the end the following:
       ``(3) Review and revision of energy performance 
     requirement.--Not later than December 31, 2010, the Secretary 
     shall--
       ``(A) review the results of the implementation of the 
     energy performance requirement established under paragraph 
     (1); and
       ``(B) submit to Congress recommendations concerning energy 
     performance requirements for calendar years 2012 through 
     2021.''; and
       (2) in subsection (c)--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) In general.--
       ``(A) Exclusions.--An agency may exclude, from the energy 
     performance requirement for a calendar year established under 
     subsection (a) and the energy management requirement 
     established under subsection (b), any Federal building or 
     collection of Federal buildings, and the associated energy 
     consumption and gross square footage, if--
       ``(i) the head of the agency finds that compliance with 
     those requirements would be impracticable; and
       ``(ii) the agency has--

       ``(I) completed and submitted all federally required energy 
     management reports;
       ``(II) achieved compliance with the energy efficiency 
     requirements of--

       ``(aa) this Act;
       ``(bb) subtitle F of title I of the Energy Policy Act of 
     1992 (42 U.S.C. 8262 et seq.);
       ``(cc) Executive orders; and
       ``(dd) other Federal law; and

       ``(III) implemented all practicable, cost-effective, life-
     cycle projects with respect to the Federal building or 
     collection of Federal buildings to be excluded.

       ``(B) Finding of impracticability.--A finding of 
     impracticability under subparagraph (A)(i) shall be based 
     on--
       ``(i) the energy intensiveness of activities carried out in 
     the Federal building or collection of Federal buildings; or
       ``(ii) the fact that the Federal building or collection of 
     Federal buildings is used in the performance of a national 
     security function.'';
       (B) in paragraph (2)--
       (i) by striking ``(2) Each agency'' and inserting the 
     following:
       ``(2) Review by secretary.--Each agency''; and
       (ii) in the second sentence--

       (I) by striking ``impracticability standards'' and 
     inserting ``standards for exclusion''; and
       (II) by striking ``a finding of impracticability'' and 
     inserting ``the exclusion''; and

       (C) by adding at the end the following:
       ``(3) Criteria.--Not later than 180 days after the date of 
     enactment of this paragraph, the Secretary shall issue 
     guidelines that establish criteria for exclusions under 
     paragraph (1).''.
       (b) Reports.--Section 548(b) of the National Energy 
     Conservation Policy Act (42 U.S.C. 8258(b)) is amended--
       (1) in the subsection heading, by inserting ``the President 
     and'' before ``Congress''; and
       (2) by inserting ``President and'' before ``Congress''.
       (c) Conforming Amendment.--Section 550(d) of the National 
     Energy Conservation Policy Act (42 U.S.C. 8258b(d)) is 
     amended in the second sentence by striking ``the 20 percent 
     reduction goal established under section 543(a) of the 
     National Energy Conservation Policy Act (42 U.S.C. 
     8253(a)).'' and inserting ``each of the energy reduction 
     goals established under section 543(a).''.

     SEC. 6. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.

       (a) In General.--Section 543 of the National Energy 
     Conservation Policy Act (42 U.S.C. 8253) is amended by adding 
     at the end the following:
       ``(e) Metering of Energy Use.--
       ``(1) In general.--Subject to paragraph (2), each agency 
     shall meter or submeter the energy use in each Federal 
     building, industrial process, and energy-using structure of 
     the agency.
       ``(2) Guidelines.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of this subsection, the Secretary shall issue 
     guidelines concerning the extent of the metering and 
     submetering required under paragraph (1).
       ``(B) Requirements for guidelines.--The guidelines shall--
       ``(i) take into consideration--

       ``(I) the cost of metering and submetering and the reduced 
     cost of operation and maintenance expected to result from 
     metering and submetering;
       ``(II) the extent to which metering and submetering are 
     expected to result in--

       ``(aa) increased potential for energy management;
       ``(bb) increased potential for energy savings and energy 
     efficiency improvement; and
       ``(cc) cost and energy savings due to utility contract 
     aggregation; and

       ``(III) the measurement and verification protocols of the 
     Department of Energy;

       ``(ii) include recommendations concerning the amount of 
     funds and the number of trained personnel necessary to gather 
     and use the metering information to track and reduce energy 
     use;
       ``(iii) establish 1 or more dates, not later than 1 year 
     after the date of issuance of the guidelines, on which the 
     requirement specified in paragraph (1) shall take effect; and
       ``(iv) establish exclusions from the requirement specified 
     in paragraph (1) based on the de minimus quantity of energy 
     use of a Federal building, industrial process, or structure.
       ``(f) Use of Interval Data in Federal Buildings.--
       ``(1) In general.--Beginning not later than January 1, 
     2003, each agency shall use, to the maximum extent 
     practicable, for the purposes of efficient use of energy and 
     reduction in the cost of electricity used in the Federal 
     buildings of the agency, interval consumption data that 
     measure on a real-time or daily basis consumption of 
     electricity in the Federal buildings of the agency.
       ``(2) Plan.--As soon as practicable after the date of 
     enactment of this subsection, in a report submitted by the 
     agency under section 548(a), each agency shall submit to the 
     Secretary a plan describing how the agency will implement the 
     requirement of paragraph (1), including how the agency will 
     designate personnel primarily responsible for achieving the 
     requirement.''.
       (b) Budget Submissions to the President.--Section 545 of 
     the National Energy Conservation Policy Act (42 U.S.C. 8255) 
     is amended--
       (1) by inserting ``(a) Budget Submission to Congress.--'' 
     before ``The President''; and
       (2) by adding at the end the following:
       ``(b) Budget Submissions to the President.--The head of 
     each agency shall submit to the President, as part of the 
     budget request of the agency for each fiscal year, a 
     statement of the amount of appropriations requested in the 
     budget for the electric and other energy costs and compliance 
     costs described in subsection (a).''.
       (c) Energy and Water Conservation Incentive Program.--
     Section 546 of the National Energy Conservation Policy Act 
     (42 U.S.C. 8256) is amended by adding at the end the 
     following:
       ``(e) Energy and Water Conservation Incentive Program.--
       ``(1) In general.--In addition to the other incentive 
     programs established under this section, the Secretary shall 
     establish an incentive program under which, for any fiscal 
     year, of the amounts made available to each agency to pay the 
     costs of providing energy and water for Federal buildings 
     under the jurisdiction of the agency, the agency may retain, 
     without fiscal year limitation, such amounts as are 
     determined under paragraph (2) to have been saved because of 
     energy and water management and conservation projects carried 
     out by the agency.
       ``(2) Determination of retained amounts.--In cooperation 
     with the Secretary of Defense and the Director of the Office 
     of Management and Budget, the Secretary shall issue 
     guidelines and establish methodologies for--
       ``(A) retention of amounts saved as described in paragraph 
     (1) for a period ending not more than 3 years after the date 
     of completion of the project that resulted in the savings;
       ``(B) establishment of a baseline amount of energy and 
     water expenditures, consisting of the amounts that would be 
     expended on energy or water but for implementation of the 
     project; and
       ``(C) use by agencies of the baseline amounts established 
     under subparagraph (B) in submitting to the President budget 
     requests for appropriated amounts equal to the amounts of 
     savings that an agency is expected to be entitled to retain 
     under paragraph (1).
       ``(3) Use of retained amounts.--Amounts retained under 
     paragraph (1) may be used to carry out energy or water 
     management and conservation projects, invest in renewable 
     energy systems, and purchase electricity from renewable 
     energy sources for use, at the Federal building at which the 
     project that resulted in the savings was carried out.
       ``(4) Annual report on use of amounts.--Each report 
     submitted by an agency under section 548(a) shall describe--
       ``(A)(i) the amounts retained under paragraph (1) during 
     the period covered by the report; and
       ``(ii) the use of the amounts retained; and
       ``(B) if no amounts were retained under paragraph (1), why 
     no amounts were retained and the plans of the agency for 
     retaining such amounts in the future.''.
       (d) Reports.--Section 548 of the National Energy 
     Conservation Policy Act (42 U.S.C. 8258) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``and'' at the end;
       (B) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(3) the quantity of greenhouse gases emitted by the 
     Federal buildings of the agency during each fiscal year, as 
     measured by the agency in consultation with the Assistant 
     Secretary for Federal Energy Productivity of the Department 
     of Energy.'';
       (2) in subsection (b)(1)--
       (A) in subparagraph (B), by striking ``and'' at the end;
       (B) in subparagraph (C), by striking the semicolon at the 
     end and inserting ``; and''; and

[[Page S8926]]

       (C) by adding at the end the following:
       ``(D) the quantity of greenhouse gases emitted by the 
     Federal buildings of each agency during each fiscal year;''; 
     and
       (3) by adding at the end the following:
       ``(d) Recommendations on Means of Accounting for Energy 
     Use.--
       ``(1) In general.--The Secretary, in cooperation with the 
     Administrator of the Energy Information Agency, the 
     Administrator of General Services, and the Secretary of 
     Defense, shall conduct a study to develop recommendations on 
     the most accurate means of accounting for energy use in 
     Federal facilities.
       ``(2) Required recommendations.--Recommendations shall 
     include a recommendation concerning whether a uniform 
     performance measure based on British thermal units per gross 
     square foot is preferable to an agency-specific performance 
     measure or any other performance-based metric.
       ``(3) Report to congress.--Not later than 1 year after the 
     date of enactment of this subsection, the Secretary shall 
     submit to Congress a report on the results of the study.''.

     SEC. 7. FEDERAL GOVERNMENT PROCUREMENT OF ENERGY EFFICIENT 
                   PRODUCTS.

       (a) Procurement of Energy Efficient Products.--
       (1) Requirements.--
       (A) In general.--Part 3 of title V of the National Energy 
     Conservation Policy Act is amended--
       (i) by redesignating section 551 (42 U.S.C. 8259) as 
     section 554; and
       (ii) by inserting after section 550 (42 U.S.C. 8258b) the 
     following:

     ``SEC. 551. FEDERAL GOVERNMENT PROCUREMENT OF ENERGY 
                   EFFICIENT PRODUCTS.

       ``(a) Definitions.--In this section:
       ``(1) Energy star product.--The term `Energy Star product' 
     means a product that is rated for energy efficiency under an 
     Energy Star program.
       ``(2) Energy star program.--The term `Energy Star program' 
     means a program administered by the Administrator of the 
     Environmental Protection Agency that involves voluntary 
     cooperation between that agency and an industry to enhance 
     the energy efficiency of the energy consuming products of the 
     industry so as to reduce--
       ``(A) burdens on air conditioning and electrical systems of 
     buildings that result from the use of the products in the 
     buildings; and
       ``(B) air pollution caused by utility power generation.
       ``(3) Executive agency.--The term `executive agency' has 
     the meaning given the term in section 4 of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403).
       ``(4) FEMP designated product.--The term `FEMP designated 
     product' means a product that is designated under the Federal 
     Energy Management Program of the Department of Energy as 
     being among the highest 25 percent of equivalent products for 
     energy efficiency.
       ``(b) Procurement of Energy Efficient Products.--
       ``(1) Requirement.--To meet the requirements of an 
     executive agency for an energy consuming product, the head of 
     the executive agency shall, except as provided in paragraph 
     (2), procure--
       ``(A) an Energy Star product; or
       ``(B) if there is no Energy Star product that meets the 
     requirements of the executive agency and that is reasonably 
     available, a FEMP designated product.
       ``(2) Exceptions.--The head of an executive agency is not 
     required to procure an Energy Star product or FEMP designated 
     product under paragraph (1) if--
       ``(A) an Energy Star product or FEMP designated product is 
     not cost effective over the life cycle of the product; or
       ``(B) no Energy Star product or FEMP designated product is 
     reasonably available that meets the requirements of the 
     executive agency.
       ``(3) Procurement planning.--
       ``(A) Requirement.--The head of an executive agency shall 
     incorporate into the specifications for a procurement 
     involving energy consuming products and systems, and into the 
     factors for the evaluation of offers received for the 
     procurement, criteria for energy efficiency that are 
     consistent with--
       ``(i) the criteria for energy efficiency used for rating 
     products under the applicable Energy Star program; and
       ``(ii) the criteria used for designating products under the 
     Federal Energy Management Program of the Department of 
     Energy.
       ``(B) Applicability.--The requirement of subparagraph (A) 
     shall apply to--
       ``(i) a contract for new construction or renovation of a 
     building;
       ``(ii) a basic ordering agreement;
       ``(iii) a blanket purchasing agreement;
       ``(iv) a Government-wide procurement contract; and
       ``(v) any other contract for a procurement described in 
     that subparagraph.
       ``(c) Listing of Energy Efficient Products in Federal 
     Catalogs.--
       ``(1) Development.--The Administrator of General Services 
     and the Director of the Defense Logistics Agency of the 
     Department of Defense shall--
       ``(A) develop, and revise if appropriate, catalog listings 
     of Energy Star products and FEMP designated products; and
       ``(B) clearly identify in the listings the products that 
     are Energy Star products and the products that are FEMP 
     designated products.
       ``(2) Availability of listings.--The Administrator and the 
     Director shall make the listings available in printed and 
     electronic formats.
       ``(d) GSA and DLA Inventories and Listings.--No energy 
     consuming product may be made available to any executive 
     agency from an inventory or listing of products by the 
     General Services Administration or the Defense Logistics 
     Agency unless--
       ``(1) the product is an Energy Star product;
       ``(2) the product is a FEMP designated product and no 
     equivalent Energy Star product is reasonably available; or
       ``(3) no equivalent Energy Star product or FEMP designated 
     product is reasonably available.
       ``(e) Regulations.--The Secretary of Energy shall 
     promulgate regulations to carry out this section, including 
     policies and conditions for exercising authority under this 
     section to procure energy consuming products other than 
     Energy Star products and FEMP designated products.''.
       (B) Conforming amendments.--
       (i) The table of contents in section 1(b) of the National 
     Energy Conservation Policy Act (42 U.S.C. 8201 note) is 
     amended by striking the item relating to section 551 and 
     inserting the following:

``Sec. 551. Federal Government procurement of energy efficient 
              products.
``Sec. 552. Federal Energy Bank.
``Sec. 553. Energy and water savings measures in congressional 
              buildings.
``Sec. 554. Definitions.''.
       (ii) Section 151(5) of the Energy Policy Act of 1992 (42 
     U.S.C. 8262(5)) is amended by striking ``section 551(4)'' and 
     inserting ``section 554(4)''.
       (iii) Section 164(a) of the Energy Policy Act of 1992 (42 
     U.S.C. 8262h note; Public Law 102-486) is amended by striking 
     ``section 551(5)'' and inserting ``section 554(5)''.
       (2) Implementation.--
       (A) Regulations.--Not later than 180 days after the 
     effective date specified in subsection (d), the Secretary of 
     Energy shall promulgate regulations to carry out section 551 
     of the National Energy Conservation Policy Act (as added by 
     paragraph (1)(A)(ii)).
       (B) Disposal of existing inventories.--An energy consuming 
     product that, on the effective date specified in subsection 
     (d), is in an inventory of products offered by the General 
     Services Administration or the Defense Logistics Agency may 
     be made available to an executive agency out of that 
     inventory without regard to section 551(d) of the National 
     Energy Conservation Policy Act.
       (C) Procurement of replacement inventory.--On and after the 
     effective date specified in subsection (d), the Administrator 
     of General Services and the Director of the Defense Logistics 
     Agency of the Department of Defense may not list or procure 
     for an inventory of products offered by the General Services 
     Administration or the Defense Logistics Agency an energy 
     consuming product that, under section 551(d) of the National 
     Energy Conservation Policy Act, may not be made available to 
     executive agencies out of that inventory.
       (b) Procurement Guidelines.--The Secretary of Energy, in 
     cooperation with the Secretary of Defense, shall issue 
     guidelines that the Secretary of Defense may apply to the 
     procurement of energy consuming products by the Department of 
     Defense to ensure that, to the maximum extent feasible 
     consistent with the performance of the national security 
     missions of the Department of Defense, the products selected 
     for procurement are energy efficient products.
       (c) Designation of Energy Star Products.--The Administrator 
     of the Environmental Protection Agency and the Secretary of 
     Energy shall--
       (1) expedite the process of designating products as Energy 
     Star products (as defined in section 551(a) of the National 
     Energy Conservation Policy Act (as added by subsection 
     (a)(1)(A)(ii))); and
       (2) merge the efficiency rating procedures used by the 
     Environmental Protection Agency and the Department of Energy 
     under the Energy Star programs (as defined in section 551(a) 
     of that Act).
       (d) Effective Date.--Subsection (a) and the amendment made 
     by that subsection take effect on the date that is 180 days 
     after the date of enactment of this Act.

     SEC. 8. FEDERAL ENERGY BANK.

       Part 3 of title V of the National Energy Conservation 
     Policy Act is amended by inserting after section 551 (as 
     added by section 7(a)(1)(A)(ii)) the following:

     ``SEC. 552. FEDERAL ENERGY BANK.

       ``(a) Definitions.--In this section:
       ``(1) Bank.--The term `Bank' means the Federal Energy Bank 
     established by subsection (b).
       ``(2) Energy or water efficiency project.--The term `energy 
     or water efficiency project' means a project that assists a 
     Federal agency in meeting or exceeding the energy or water 
     efficiency requirements of--
       ``(A) this part;
       ``(B) title VIII;
       ``(C) subtitle F of title I of the Energy Policy Act of 
     1992 (42 U.S.C. 8262 et seq.); or
       ``(D) any applicable Executive order, including Executive 
     Order No. 13123 (42 U.S.C. 8251 note (June 3, 1999)).
       ``(3) Federal agency.--The term `Federal agency' means--
       ``(A) an Executive agency (as defined in section 105 of 
     title 5, United States Code);
       ``(B) the United States Postal Service;
       ``(C) the United States Patent and Trademark Office;

[[Page S8927]]

       ``(D) Congress and any other entity in the legislative 
     branch; and
       ``(E) a Federal court and any other entity in the judicial 
     branch.
       ``(4) Utility payment.--The term `utility payment' means a 
     payment made to supply electricity, natural gas, or any other 
     form of energy to provide the heating, ventilation, air 
     conditioning, lighting, or other energy needs of a facility 
     of a Federal agency.
       ``(b) Establishment of Bank.--
       ``(1) In general.--There is established in the Treasury of 
     the United States a fund to be known as the `Federal Energy 
     Bank', consisting of--
       ``(A) such amounts as are deposited in the Bank under 
     paragraph (2);
       ``(B) such amounts as are repaid to the Bank under 
     subsection (c)(2)(D); and
       ``(C) any interest earned on investment of amounts in the 
     Bank under paragraph (3).
       ``(2) Deposits in bank.--
       ``(A) In general.--Subject to the availability of 
     appropriations and to subparagraph (B), the Secretary of the 
     Treasury shall deposit in the Bank an amount equal to 2.5 
     percent for fiscal year 2003 and 5 percent for each fiscal 
     year thereafter of the total amount of utility payments made 
     by all Federal agencies for the preceding fiscal year.
       ``(B) Maximum amount in bank.--Deposits under subparagraph 
     (A) shall cease beginning with the fiscal year following the 
     fiscal year in which the amounts in the Bank (including 
     amounts on loan from the Bank) become equal to or exceed 
     $1,000,000,000.
       ``(C) Limitation.--No funds made available to any Federal 
     agency (other than to the Department of the Treasury under 
     subsection (f)) shall be deposited in the Bank.
       ``(3) Investment of amounts.--The Secretary of the Treasury 
     shall invest such portion of the Bank as is not, in the 
     judgment of the Secretary, required to meet current 
     withdrawals. Investments may be made only in interest-bearing 
     obligations of the United States.
       ``(c) Loans From the Bank.--
       ``(1) In general.--The Secretary of the Treasury shall 
     transfer from the Bank to the Secretary such amounts as are 
     appropriated to carry out the loan program under paragraph 
     (2).
       ``(2) Loan program.--
       ``(A) Establishment.--
       ``(i) In general.--In accordance with subsection (d), the 
     Secretary, in consultation with the Secretary of Defense, the 
     Administrator of General Services, and the Director of the 
     Office of Management and Budget, shall establish a program to 
     make loans of amounts in the Bank to any Federal agency that 
     submits an application satisfactory to the Secretary in order 
     to pay the costs of a project described in subparagraph (C).
       ``(ii) Commencement of operations.--The Secretary may 
     begin--

       ``(I) accepting applications for loans from the Bank in 
     fiscal year 2002; and
       ``(II) making loans from the Bank in fiscal year 2003.

       ``(B) Energy savings performance contracting funding.--The 
     Secretary shall not make a loan from the Bank to a Federal 
     agency for a project for which funding is available and is 
     acceptable to the Federal agency under title VIII.
       ``(C) Purposes of loan.--
       ``(i) In general.--A loan from the Bank may be used to 
     pay--

       ``(I) the costs of an energy or water efficiency project, 
     or a renewable or alternative energy project, for a new or 
     existing Federal building (including selection and design of 
     the project);
       ``(II) the costs of an energy metering plan developed in 
     accordance with the measurement and verification protocols of 
     the Department of Energy, or energy metering equipment, for 
     the purpose of--

       ``(aa) a new or existing building energy system; or
       ``(bb) verification of the energy savings under an energy 
     savings performance contract under title VIII; or

       ``(III) at the time of contracting, the costs of 
     development or cofunding of an energy savings performance 
     contract (including a utility energy service agreement) in 
     order to shorten the payback period of the project that is 
     the subject of the energy savings performance contract.

       ``(ii) Limitation.--A Federal agency may use not more than 
     10 percent of the amount of a loan under subclause (I) or 
     (II) of clause (i) to pay the costs of administration and 
     proposal development (including data collection and energy 
     surveys).
       ``(iii) Renewable and alternative energy projects.--Not 
     more than 25 percent of the amount on loan from the Bank at 
     any time may be loaned for renewable energy and alternative 
     energy projects (as defined by the Secretary in accordance 
     with applicable law (including Executive orders)).
       ``(D) Repayments.--
       ``(i) In general.--Subject to clauses (ii) through (iv), a 
     Federal agency shall repay to the Bank the principal amount 
     of a loan plus interest at a rate determined by the 
     President, in consultation with the Secretary and the 
     Secretary of the Treasury.
       ``(ii) Waiver or reduction of interest.--The Secretary may 
     waive or reduce the rate of interest required to be paid 
     under clause (i) if the Secretary determines that payment of 
     interest by a Federal agency at the rate determined under 
     that clause is not required to fund the operations of the 
     Bank.
       ``(iii) Determination of interest rate.--The interest rate 
     determined under clause (i) shall be at a rate that is 
     sufficient to ensure that, beginning not later than October 
     1, 2007, interest payments will be sufficient to fully fund 
     the operations of the Bank.
       ``(iv) Insufficiency of appropriations.--

       ``(I) Request for appropriations.--As part of the budget 
     request of the Federal agency for each fiscal year, the head 
     of each Federal agency shall submit to the President a 
     request for such amounts as are necessary to make such 
     repayments as are expected to become due in the fiscal year 
     under this subparagraph.
       ``(II) Suspension of repayment requirement.--If, for any 
     fiscal year, sufficient appropriations are not made available 
     to a Federal agency to make repayments under this 
     subparagraph, the Bank shall suspend the requirement of 
     repayment under this subparagraph until such appropriations 
     are made available.

       ``(E) Federal agency energy budgets.--Until a loan is 
     repaid, a Federal agency budget submitted by the President to 
     Congress for a fiscal year shall not be reduced by the value 
     of energy savings accrued as a result of any energy 
     conservation measure implemented using amounts from the Bank.
       ``(F) No rescission or reprogramming.--A Federal agency 
     shall not rescind or reprogram loan amounts made available 
     from the Bank except as permitted under guidelines issued 
     under subparagraph (G).
       ``(G) Guidelines.--The Secretary shall issue guidelines for 
     implementation of the loan program under this paragraph, 
     including selection criteria, maximum loan amounts, and loan 
     repayment terms.
       ``(d) Selection Criteria.--
       ``(1) In general.--The Secretary shall establish criteria 
     for the selection of projects to be awarded loans in 
     accordance with paragraph (2).
       ``(2) Selection criteria.--
       ``(A) In general.--The Secretary may make loans from the 
     Bank only for a project that--
       ``(i) is technically feasible;
       ``(ii) is determined to be cost-effective using life cycle 
     cost methods established by the Secretary by regulation;
       ``(iii) includes a measurement and management component, 
     based on the measurement and verification protocols of the 
     Department of Energy, to--

       ``(I) commission energy savings for new and existing 
     Federal facilities;
       ``(II) monitor and improve energy efficiency management at 
     existing Federal facilities; and
       ``(III) verify the energy savings under an energy savings 
     performance contract under title VIII; and

       ``(iv)(I) in the case of renewable energy or alternative 
     energy project, has a simple payback period of not more than 
     15 years; and
       ``(II) in the case of any other project, has a simple 
     payback period of not more than 10 years.
       ``(B) Priority.--In selecting projects, the Secretary shall 
     give priority to projects that--
       ``(i) are a component of a comprehensive energy management 
     project for a Federal facility; and
       ``(ii) are designed to significantly reduce the energy use 
     of the Federal facility.
       ``(e) Reports and Audits.--
       ``(1) Reports to the secretary.--Not later than 1 year 
     after the completion of installation of a project that has a 
     cost of more than $1,000,000, and annually thereafter, a 
     Federal agency shall submit to the Secretary a report that--
       ``(A) states whether the project meets or fails to meet the 
     energy savings projections for the project; and
       ``(B) for each project that fails to meet the energy 
     savings projections, states the reasons for the failure and 
     describes proposed remedies.
       ``(2) Audits.--The Secretary may audit, or require a 
     Federal agency that receives a loan from the Bank to audit, 
     any project financed with amounts from the Bank to assess the 
     performance of the project.
       ``(3) Reports to congress.--At the end of each fiscal year, 
     the Secretary shall submit to the Committee on Energy and 
     Commerce of the House of Representatives and the Committee on 
     Energy and Natural Resources of the Senate a report on the 
     operations of the Bank, including a statement of--
       ``(A) the total receipts by the Bank;
       ``(B) the total amount of loans from the Bank to each 
     Federal agency; and
       ``(C) the estimated cost and energy savings resulting from 
     projects funded with loans from the Bank.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Department of the 
     Treasury such sums as are necessary to fund--
       ``(1) deposits required under subsection (b)(2); and
       ``(2) the costs to the Treasury associated with the loan 
     program established under subsection (c)(2), as determined in 
     accordance with guidelines issued by the Office of Management 
     and Budget.''.

     SEC. 9. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL 
                   BUILDINGS.

       (a) In General.--Part 3 of title V of the National Energy 
     Conservation Policy Act is amended by inserting after section 
     552 (as added by section 8) the following:

     ``SEC. 553. ENERGY AND WATER SAVINGS MEASURES IN 
                   CONGRESSIONAL BUILDINGS.

       ``(a) In General.--The Architect of the Capitol--

[[Page S8928]]

       ``(1) shall develop and implement a cost-effective energy 
     conservation strategy for all facilities administered by 
     Congress (referred to in this section as `congressional 
     buildings') to meet the mandatory standards for Federal 
     buildings established under title III of the Energy 
     Conservation and Production Act (42 U.S.C. 6831 et seq.);
       ``(2) shall submit to Congress, not later than 120 days 
     after the date of enactment of this section, a revised 
     comprehensive energy conservation and management plan that 
     includes life cycle cost methods to determine the cost-
     effectiveness of proposed energy efficiency projects;
       ``(3) shall submit to Congress annually a report on 
     congressional energy management and conservation programs 
     that describes in detail--
       ``(A) energy expenditures and cost estimates for each 
     facility;
       ``(B) energy management and conservation projects; and
       ``(C) future priorities to ensure compliance with this 
     section;
       ``(4) shall perform energy surveys of all congressional 
     buildings and update the surveys as necessary;
       ``(5) shall use the surveys to determine the cost and 
     payback period of energy and water conservation measures 
     likely to achieve the energy consumption levels specified in 
     the strategy developed under paragraph (1);
       ``(6) shall install energy and water conservation measures 
     that will achieve those levels through life cycle cost 
     methods and procedures included in the plan submitted under 
     paragraph (2);
       ``(7) may contract with nongovernmental entities and use 
     private sector capital to finance energy conservation 
     projects and achieve energy consumption targets;
       ``(8) may develop innovative contracting methods that will 
     attract private sector funding for the installation of energy 
     efficient and renewable energy technology to meet the 
     requirements of this section, such as energy savings 
     performance contracts described in title VIII;
       ``(9) may participate in the Financing Renewable Energy and 
     Efficiency (FREE) Savings contracts program for Federal 
     Government facilities established by the Department of 
     Energy;
       ``(10) not later than 100 days after the date of enactment 
     of this section, shall submit to Congress the results of a 
     study of the installation of submetering in congressional 
     buildings;
       ``(11) shall produce information packages and `how-to' 
     guides for each Member and employing authority of Congress 
     that detail simple, cost-effective methods to save energy and 
     taxpayer dollars;
       ``(12) shall ensure that state-of-the-art energy efficiency 
     technologies are used in the construction of the Visitor 
     Center; and
       ``(13) shall include in the Visitor Center an exhibit on 
     the energy efficiency measures used in congressional 
     buildings.
       ``(b) Energy and Water Conservation Incentive.--
       ``(1) In general.--For any fiscal year, of the amounts made 
     available to the Architect of the Capitol to pay the costs of 
     providing energy and water for congressional buildings, the 
     Architect may retain, without fiscal year limitation, such 
     amounts as the Architect determines were not expended because 
     of energy and water management and conservation projects.
       ``(2) Use of retained amounts.--Amounts retained under 
     paragraph (1) may be used to carry out energy and water 
     management and conservation projects.
       ``(3) Annual report on use of amounts.--As part of each 
     annual report under subsection (a)(3), the Architect of the 
     Capitol shall submit to Congress a report on the amounts 
     retained under paragraph (1) and the use of the amounts.''.
       (b) Repeal.--Section 310 of the Legislative Branch 
     Appropriations Act, 1999 (40 U.S.C. 166i), is repealed.

     SEC. 10. ENERGY SAVINGS PERFORMANCE CONTRACTS.

       (a) Cost Savings From Replacement Facilities.--Section 
     801(a) of the National Energy Conservation Policy Act (42 
     U.S.C. 8287(a)) is amended by adding at the end the 
     following:
       ``(3) Cost savings from replacement facilities.--
       ``(A) In general.--In the case of an energy savings 
     performance contract that provides for energy savings through 
     the construction and operation of 1 or more buildings or 
     other facilities to replace 1 or more existing buildings or 
     other facilities, benefits ancillary to the purpose of 
     achieving energy savings under the contract may include, for 
     the purpose of paragraph (1), savings resulting from reduced 
     costs of operation and maintenance at the replacement 
     buildings or other facilities as compared with the costs of 
     operation and maintenance at the buildings or other 
     facilities being replaced.
       ``(B) Determination of payments.--Notwithstanding paragraph 
     (2)(B), the aggregate annual payments by a Federal agency 
     under an energy savings performance contract described in 
     subparagraph (A) may take into account (through the 
     procedures developed under this section) savings resulting 
     from reduced costs of operation and maintenance as described 
     in subparagraph (A).''.
       (b) Repeal of Sunset.--Section 801 of the National Energy 
     Conservation Policy Act (42 U.S.C. 8287) is amended by 
     striking subsection (c).
       (c) Definitions.--The National Energy Conservation Policy 
     Act is amended by striking section 804 (42 U.S.C. 8287c) and 
     inserting the following:

     ``SEC. 804. DEFINITIONS.

       ``In this title:
       ``(1) Energy conservation measure.--The term `energy 
     conservation measure' has the meaning given the term in 
     section 554.
       ``(2) Energy saving.--The term `energy saving' means a 
     reduction, from a baseline cost established through a 
     methodology set forth in an energy savings performance 
     contract, in the cost of energy or water used in--
       ``(A) 1 or more existing federally owned buildings or other 
     federally owned facilities, that results from--
       ``(i) the lease or purchase of operating equipment, an 
     improvement, altered operation or maintenance, or a technical 
     service;
       ``(ii) increased efficiency in the use of existing energy 
     sources by cogeneration or heat recovery, excluding any 
     cogeneration process for a building that is not a federally 
     owned building or a facility that is not federally owned 
     facility; or
       ``(iii) increased efficiency in the use of existing water 
     sources or treatment of wastewater or stormwater; or
       ``(B) a replacement facility under section 801(a)(3).
       ``(3) Energy savings performance contract.--The term 
     `energy savings performance contract' means a contract that 
     provides for--
       ``(A) the performance of services for the design, 
     acquisition, installation, testing, operation, and, where 
     appropriate, maintenance and repair, of an energy 
     conservation measure or water conservation measure (or series 
     of such measures) at 1 or more locations; or
       ``(B) energy savings through the construction and operation 
     of 1 or more buildings or other facilities to replace 1 or 
     more existing buildings or other facilities.
       ``(4) Federal agency.--The term `Federal agency' means each 
     authority of the United States Government, regardless of 
     whether the authority is within or subject to review by 
     another agency.
       ``(5) Water conservation measure.--The term `water 
     conservation measure' means a conservation measure that--
       ``(A) improves the efficiency of use of water;
       ``(B) is cost-effective over the life cycle of the water 
     conservation measure; and
       ``(C) involves water conservation, water recycling or 
     reuse, more efficient treatment of wastewater or stormwater, 
     an improvement in operation or maintenance efficiency, a 
     retrofit activity, or any other related activity, that is 
     carried out at a building or other facility that is not a 
     Federal hydroelectric facility.''.

     SEC. 11. FEDERAL FLEET FUEL ECONOMY AND USE OF ALTERNATIVE 
                   FUELS.

       (a) In General.--Section 303 of the Energy Policy Act of 
     1992 (42 U.S.C. 13212) is amended--
       (1) by redesignating subsection (f) as subsection (g); and
       (2) by inserting after subsection (e) the following:
       ``(f) Federal Fleet Fuel Economy and Use of Alternative 
     Fuels.--
       ``(1) Definitions.--
       ``(A) Average fuel economy.--The term `average fuel 
     economy' has the meaning given the term in section 32901 of 
     title 49, United States Code.
       ``(B) Covered vehicle.--
       ``(i) In general.--The term `covered vehicle' means a 
     passenger automobile or light duty motor vehicle.
       ``(ii) Exclusions.--The term `covered vehicle' does not 
     include--

       ``(I) a military tactical vehicle of the Armed Forces; or
       ``(II) any law enforcement, emergency, or other vehicle 
     class or type determined to be excluded under guidelines 
     issued by the Secretary of Energy under paragraph (6).

       ``(C) Federal agency.--The term `Federal agency' means an 
     Executive agency (as defined in section 105 of title 5, 
     United States Code) (including each military department (as 
     specified in section 102 of that title)) that operates 20 or 
     more motor vehicles in the United States.
       ``(D) Passenger automobile.--The term `passenger 
     automobile' has the meaning given the term in section 32901 
     of title 49, United States Code.
       ``(2) Minimum average fuel economy.--In fiscal year 2005 
     and each fiscal year thereafter, the average fuel economy of 
     the covered vehicles acquired by each Federal agency shall be 
     not less than 3 miles per gallon greater than the average 
     fuel economy of the covered vehicles acquired by the Federal 
     agency in fiscal year 2000.
       ``(3) Use of alternative fuels.--
       ``(A) In general.--Subject to subparagraph (B), in fiscal 
     year 2005 and each fiscal year thereafter, each Federal 
     agency shall use alternative fuels for at least 50 percent of 
     the total annual volume of motor fuel used by the Federal 
     agency to operate covered vehicles.
       ``(B) Inclusion of motor fuel purchased by state and local 
     governments.--Not more than 25 percent of the motor fuel 
     purchased by State and local governments at federally-owned 
     refueling facilities may be included by a Federal agency in 
     meeting the requirement of subparagraph (A).
       ``(4) Implementation plan.--Not later than 1 year after the 
     date of enactment of this paragraph, each Federal agency 
     shall develop and submit to the President and Congress an 
     implementation plan for meeting the requirements of this 
     subsection that

[[Page S8929]]

     takes into account the fleet configuration and fleet 
     requirements of the Federal agency.
       ``(5) Annual report.--
       ``(A) In general.--Each Federal agency shall submit to the 
     President and Congress an annual report on the progress of 
     the Federal agency in meeting the requirements of this 
     subsection.
       ``(B) Guidelines.--The Secretary of Energy, acting through 
     the Assistant Secretary for Federal Energy Productivity and 
     in consultation with the Administrator of the Energy 
     Information Administration, shall issue guidelines for the 
     preparation by Federal agencies of reports under paragraph 
     (1), including guidelines concerning--
       ``(i) methods for measurement of average fuel economy; and
       ``(ii) the collection and annual reporting of data to 
     demonstrate compliance with this subsection.
       ``(6) Guidelines concerning exclusion of certain 
     vehicles.--Not later than 1 year after the date of enactment 
     of this paragraph, the Secretary of Energy, in consultation 
     with the Assistant Secretary for Federal Energy Productivity, 
     shall issue guidelines for Federal agencies to use in the 
     determination of vehicles to be excluded under paragraph 
     (1)(B)(ii).''.
       (b) Alternative Fuel Use by Light Duty Federal Vehicles.--
     Section 400AA of the Energy Policy and Conservation Act (42 
     U.S.C. 6374) is amended--
       (1) in subsection (a)(3)(E)--
       (A) by striking ``(E) Dual'' and inserting the following:
       ``(E) Operation of dual fueled vehicles.--
       ``(i) In general.--Subject to clause (ii), dual''; and
       (B) by adding at the end the following:
       ``(ii) Minimum alternative fuel use.--For fiscal year 2005 
     and each fiscal year thereafter, not less than 50 percent of 
     the total annual volume of fuel used to operate dual fueled 
     vehicles acquired pursuant to this section shall consist of 
     alternative fuels.''; and
       (2) in subsection (g)(4)(B), by inserting before the 
     semicolon at the end the following: ``, including any 3-
     wheeled enclosed electric vehicle that has a vehicle 
     identification number''.
                                 ______