[Congressional Record (Bound Edition), Volume 161 (2015), Part 4]
[Senate]
[Pages 4715-4718]
[From the U.S. Government Publishing Office, www.gpo.gov]




               ENERGY EFFICIENCY IMPROVEMENT ACT OF 2015

  Mr. PORTMAN. Mr. President, I ask unanimous consent that the Senate 
now proceed to Calendar No. 23, S. 535; that the bill be read a third 
time; and that the Senate vote on passage of the bill with no 
intervening action or debate.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 535) to promote energy efficiency.

  The PRESIDING OFFICER. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed for a third reading and was read 
the third time.
  The PRESIDING OFFICER. Under the previous order, the bill having been 
read the third time, the question is, shall it pass?
  The bill (S. 535) was passed, as follows:

                                 S. 535

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Energy 
     Efficiency Improvement Act of 2015''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                       TITLE I--BETTER BUILDINGS

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

                  TITLE II--GRID-ENABLED WATER HEATERS

Sec. 201. Grid-enabled water heaters.

         TITLE III--ENERGY INFORMATION FOR COMMERCIAL BUILDINGS

Sec. 301. Energy information for commercial buildings.

                       TITLE I--BETTER BUILDINGS

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Better Buildings Act of 
     2015''.

     SEC. 102. ENERGY EFFICIENCY IN FEDERAL AND OTHER BUILDINGS.

       (a) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of General Services.
       (2) Cost-effective energy efficiency measure.--The term 
     ``cost-effective energy efficiency measure'' means any 
     building product, material, equipment, or service, and the 
     installing, implementing, or operating thereof, that provides 
     energy savings in an amount that is not less than the cost of 
     such installing, implementing, or operating.
       (3) Cost-effective water efficiency measure.--The term 
     ``cost-effective water efficiency measure'' means any 
     building product, material, equipment, or service, and the 
     installing, implementing, or operating thereof, that provides 
     water savings in an amount that is not less than the cost of 
     such installing, implementing, or operating.
       (b) Model Provisions, Policies, and Best Practices.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Administrator, in consultation 
     with the Secretary of Energy and after providing the public 
     with an opportunity for notice and comment, shall develop 
     model commercial leasing provisions and best practices in 
     accordance with this subsection.
       (2) Commercial leasing.--
       (A) In general.--The model commercial leasing provisions 
     developed under this subsection shall, at a minimum, align 
     the interests of building owners and tenants with regard to 
     investments in cost-effective energy efficiency measures and 
     cost-effective water efficiency measures to encourage 
     building owners and tenants to collaborate to invest in such 
     measures.
       (B) Use of model provisions.--The Administrator may use the 
     model commercial leasing provisions developed under this 
     subsection in any standard leasing document that designates a 
     Federal agency (or other client of the Administrator) as a 
     landlord or tenant.
       (C) Publication.--The Administrator shall periodically 
     publish the model commercial leasing provisions developed 
     under this subsection, along with explanatory materials, to 
     encourage building owners and tenants in the private sector 
     to use such provisions and materials.
       (3) Realty services.--The Administrator shall develop 
     policies and practices to implement cost-effective energy 
     efficiency measures and cost-effective water efficiency 
     measures for the realty services provided by the 
     Administrator to Federal agencies (or other clients of the 
     Administrator), including periodic training of appropriate 
     Federal employees and contractors on how to identify and 
     evaluate those measures.
       (4) State and local assistance.--The Administrator, in 
     consultation with the Secretary of Energy, shall make 
     available model commercial leasing provisions and best 
     practices developed under this subsection to State, county, 
     and municipal governments for use in managing owned and 
     leased building space in accordance with the goal of 
     encouraging investment in all cost-effective energy 
     efficiency measures and cost-effective water efficiency 
     measures.

     SEC. 103. SEPARATE SPACES WITH HIGH-PERFORMANCE ENERGY 
                   EFFICIENCY MEASURES.

       (a) In General.--Subtitle B of title IV of the Energy 
     Independence and Security Act of 2007 (42 U.S.C. 17081 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 424. SEPARATE SPACES WITH HIGH-PERFORMANCE ENERGY 
                   EFFICIENCY MEASURES.

       ``(a) Definitions.--In this section:

[[Page 4716]]

       ``(1) High-performance energy efficiency measure.--The term 
     `high-performance energy efficiency measure' means a 
     technology, product, or practice that will result in 
     substantial operational cost savings by reducing energy 
     consumption and utility costs.
       ``(2) Separate spaces.--The term `separate spaces' means 
     areas within a commercial building that are leased or 
     otherwise occupied by a tenant or other occupant for a period 
     of time pursuant to the terms of a written agreement.
       ``(b) Study.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this section, the Secretary, acting through the 
     Assistant Secretary of Energy Efficiency and Renewable 
     Energy, shall complete a study on the feasibility of--
       ``(A) significantly improving energy efficiency in 
     commercial buildings through the design and construction, by 
     owners and tenants, of separate spaces with high-performance 
     energy efficiency measures; and
       ``(B) encouraging owners and tenants to implement high-
     performance energy efficiency measures in separate spaces.
       ``(2) Scope.--The study shall, at a minimum, include--
       ``(A) descriptions of--
       ``(i) high-performance energy efficiency measures that 
     should be considered as part of the initial design and 
     construction of separate spaces;
       ``(ii) processes that owners, tenants, architects, and 
     engineers may replicate when designing and constructing 
     separate spaces with high-performance energy efficiency 
     measures;
       ``(iii) policies and best practices to achieve reductions 
     in energy intensities for lighting, plug loads, heating, 
     cooling, cooking, laundry, and other systems to satisfy the 
     needs of the commercial building tenant;
       ``(iv) return on investment and payback analyses of the 
     incremental cost and projected energy savings of the proposed 
     set of high-performance energy efficiency measures, including 
     consideration of available incentives;
       ``(v) models and simulation methods that predict the 
     quantity of energy used by separate spaces with high-
     performance energy efficiency measures and that compare that 
     predicted quantity to the quantity of energy used by separate 
     spaces without high-performance energy efficiency measures 
     but that otherwise comply with applicable building code 
     requirements;
       ``(vi) measurement and verification platforms demonstrating 
     actual energy use of high-performance energy efficiency 
     measures installed in separate spaces, and whether such 
     measures generate the savings intended in the initial design 
     and construction of the separate spaces;
       ``(vii) best practices that encourage an integrated 
     approach to designing and constructing separate spaces to 
     perform at optimum energy efficiency in conjunction with the 
     central systems of a commercial building; and
       ``(viii) any impact on employment resulting from the design 
     and construction of separate spaces with high-performance 
     energy efficiency measures; and
       ``(B) case studies reporting economic and energy savings 
     returns in the design and construction of separate spaces 
     with high-performance energy efficiency measures.
       ``(3) Public participation.--Not later than 90 days after 
     the date of the enactment of this section, the Secretary 
     shall publish a notice in the Federal Register requesting 
     public comments regarding effective methods, measures, and 
     practices for the design and construction of separate spaces 
     with high-performance energy efficiency measures.
       ``(4) Publication.--The Secretary shall publish the study 
     on the website of the Department of Energy.''.
       (b) Clerical Amendment.--The table of contents in section 
     1(b) of the Energy Independence and Security Act of 2007 is 
     amended by inserting after the item relating to section 423 
     the following new item:

``Sec. 424. Separate spaces with high-performance energy efficiency 
              measures.''.

     SEC. 104. TENANT STAR PROGRAM.

       (a) In General.--Subtitle B of title IV of the Energy 
     Independence and Security Act of 2007 (42 U.S.C. 17081 et 
     seq.) (as amended by section 103) is amended by adding at the 
     end the following:

     ``SEC. 425. TENANT STAR PROGRAM.

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

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

                  TITLE II--GRID-ENABLED WATER HEATERS

     SEC. 201. GRID-ENABLED WATER HEATERS.

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

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

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

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

       ``(aa) is made of material not adversely affected by water;
       ``(bb) is attached by means of non-water-soluble adhesive; 
     and
       ``(cc) advises purchasers and end-users of the intended and 
     appropriate use of the product with the following notice 
     printed in 16.5 point Arial Narrow Bold font:


[[Page 4717]]


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

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

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

         TITLE III--ENERGY INFORMATION FOR COMMERCIAL BUILDINGS

     SEC. 301. ENERGY INFORMATION FOR COMMERCIAL BUILDINGS.

       (a) Requirement of Benchmarking and Disclosure for Leasing 
     Buildings Without Energy Star Labels.--Section 435(b)(2) of 
     the Energy Independence and Security Act of 2007 (42 U.S.C. 
     17091(b)(2)) is amended--
       (1) by striking ``paragraph (2)'' and inserting ``paragraph 
     (1)''; and
       (2) by striking ``signing the contract,'' and all that 
     follows through the period at the end and inserting the 
     following:

     ``signing the contract, the following requirements are met:
       ``(A) The space is renovated for all energy efficiency and 
     conservation improvements that would be cost effective over 
     the life of the lease, including improvements in lighting, 
     windows, and heating, ventilation, and air conditioning 
     systems.
       ``(B)(i) Subject to clause (ii), the space is benchmarked 
     under a nationally recognized, online, free benchmarking 
     program, with public disclosure, unless the space is a space 
     for which owners cannot access whole building utility 
     consumption data, including spaces--
       ``(I) that are located in States with privacy laws that 
     provide that utilities shall not provide such aggregated 
     information to multitenant building owners; and
       ``(II) for which tenants do not provide energy consumption 
     information to the commercial building owner in response to a 
     request from the building owner.
       ``(ii) A Federal agency that is a tenant of the space shall 
     provide to the building owner, or authorize the owner to 
     obtain from the utility, the energy consumption information 
     of the space for the benchmarking and disclosure required by 
     this subparagraph.''.
       (b) Study.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary of Energy, in 
     collaboration with the Administrator of the Environmental 
     Protection Agency, shall complete a study--
       (A) on the impact of--
       (i) State and local performance benchmarking and disclosure 
     policies, and any associated building efficiency policies, 
     for commercial and multifamily buildings; and
       (ii) programs and systems in which utilities provide 
     aggregated information regarding whole building energy 
     consumption and usage information to owners of multitenant 
     commercial, residential, and mixed-use buildings;
       (B) that identifies best practice policy approaches studied 
     under subparagraph (A) that have resulted in the greatest 
     improvements in building energy efficiency; and
       (C) that considers--
       (i) compliance rates and the benefits and costs of the 
     policies and programs on building owners, utilities, tenants, 
     and other parties;
       (ii) utility practices, programs, and systems that provide 
     aggregated energy consumption information to multitenant 
     building owners, and the impact of public utility commissions 
     and State privacy laws on those practices, programs, and 
     systems;
       (iii) exceptions to compliance in existing laws where 
     building owners are not able to gather or access whole 
     building energy information from tenants or utilities;
       (iv) the treatment of buildings with--

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

       (v) implementation practices, including disclosure methods 
     and phase-in of compliance;
       (vi) the safety and security of benchmarking tools offered 
     by government agencies, and the resiliency of those tools 
     against cyber attacks; and
       (vii) international experiences with regard to building 
     benchmarking and disclosure laws and data aggregation for 
     multitenant buildings.
       (2) Submission to congress.--At the conclusion of the 
     study, the Secretary shall submit to the Committee on Energy 
     and Commerce of the House of Representatives and Committee on 
     Energy and Natural Resources of the Senate a report on the 
     results of the study.
       (c) Creation and Maintenance of Database.--
       (1) In general.--Not later than 18 months after the date of 
     enactment of this Act and following opportunity for public 
     notice and comment, the Secretary of Energy, in coordination 
     with other relevant agencies, shall maintain, and if 
     necessary create, a database for the purpose of storing and 
     making available public energy-related information on 
     commercial and multifamily buildings, including--

[[Page 4718]]

       (A) data provided under Federal, State, local, and other 
     laws or programs regarding building benchmarking and energy 
     information disclosure;
       (B) information on buildings that have disclosed energy 
     ratings and certifications; and
       (C) energy-related information on buildings provided 
     voluntarily by the owners of the buildings, only in an 
     anonymous form unless the owner provides otherwise.
       (2) Complementary programs.--The database maintained 
     pursuant to paragraph (1) shall complement and not duplicate 
     the functions of the Environmental Protection Agency's Energy 
     Star Portfolio Manager tool.
       (d) Input From Stakeholders.--The Secretary of Energy shall 
     seek input from stakeholders to maximize the effectiveness of 
     the actions taken under this section.
       (e) Report.--Not later than 2 years after the date of 
     enactment of this Act, and every 2 years thereafter, the 
     Secretary of Energy shall submit to the Committee on Energy 
     and Commerce of the House of Representatives and Committee on 
     Energy and Natural Resources of the Senate a report on the 
     progress made in complying with this section.
  Mr. PORTMAN. Mr. President, I ask unanimous consent that the motion 
to reconsider be made and laid upon the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________