[Congressional Record (Bound Edition), Volume 161 (2015), Part 4]
[House]
[Pages 5265-5270]
[From the U.S. Government Publishing Office, www.gpo.gov]




               ENERGY EFFICIENCY IMPROVEMENT ACT OF 2015

  Mr. WHITFIELD. Madam Speaker, I move to suspend the rules and pass 
the bill (S. 535) to promote energy efficiency.
  The Clerk read the title of the bill.
  The text of the bill is 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:
       ``(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,

[[Page 5266]]

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

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

                  TITLE II--GRID-ENABLED WATER HEATERS

     SEC. 201. GRID-ENABLED WATER HEATERS.

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

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

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

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

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

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

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

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

[[Page 5267]]

     that such water heater is not used as part of an electric 
     thermal storage or demand response program; or
       ``(D) to knowingly remove or render illegible the label of 
     a grid-enabled water heater described in section 
     325(e)(6)(A)(ii)(V).'';
       (3) in section 333(a) (42 U.S.C. 6303(a))--
       (A) by striking ``section 332(a)(5)'' and inserting 
     ``paragraph (5), (6), (7), or (8) of section 332(a)''; and
       (B) by striking ``paragraph (1), (2), or (5) of section 
     332(a)'' and inserting ``paragraph (1), (2), (5), (6), (7), 
     or (8) of section 332(a)''; and
       (4) in section 334 (42 U.S.C. 6304)--
       (A) by striking ``section 332(a)(5)'' and inserting 
     ``paragraph (5), (6), (7), or (8) of section 332(a)''; and
       (B) by striking ``section 332(a)(6)'' and inserting 
     ``section 332(a)(7)''.

         TITLE III--ENERGY INFORMATION FOR COMMERCIAL BUILDINGS

     SEC. 301. ENERGY INFORMATION FOR COMMERCIAL BUILDINGS.

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

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

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

       (v) implementation practices, including disclosure methods 
     and phase-in of compliance;
       (vi) the safety and security of benchmarking tools offered 
     by government agencies, and the resiliency of those tools 
     against cyber attacks; and
       (vii) international experiences with regard to building 
     benchmarking and disclosure laws and data aggregation for 
     multitenant buildings.
       (2) Submission to congress.--At the conclusion of the 
     study, the Secretary shall submit to the Committee on Energy 
     and Commerce of the House of Representatives and Committee on 
     Energy and Natural Resources of the Senate a report on the 
     results of the study.
       (c) Creation and Maintenance of Database.--
       (1) In general.--Not later than 18 months after the date of 
     enactment of this Act and following opportunity for public 
     notice and comment, the Secretary of Energy, in coordination 
     with other relevant agencies, shall maintain, and if 
     necessary create, a database for the purpose of storing and 
     making available public energy-related information on 
     commercial and multifamily buildings, including--
       (A) data provided under Federal, State, local, and other 
     laws or programs regarding building benchmarking and energy 
     information disclosure;
       (B) information on buildings that have disclosed energy 
     ratings and certifications; and
       (C) energy-related information on buildings provided 
     voluntarily by the owners of the buildings, only in an 
     anonymous form unless the owner provides otherwise.
       (2) Complementary programs.--The database maintained 
     pursuant to paragraph (1) shall complement and not duplicate 
     the functions of the Environmental Protection Agency's Energy 
     Star Portfolio Manager tool.
       (d) Input From Stakeholders.--The Secretary of Energy shall 
     seek input from stakeholders to maximize the effectiveness of 
     the actions taken under this section.
       (e) Report.--Not later than 2 years after the date of 
     enactment of this Act, and every 2 years thereafter, the 
     Secretary of Energy shall submit to the Committee on Energy 
     and Commerce of the House of Representatives and Committee on 
     Energy and Natural Resources of the Senate a report on the 
     progress made in complying with this section.
       Passed the Senate March 26 (legislative day, March 27), 
     2015.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Kentucky (Mr. Whitfield) and the gentleman from Vermont (Mr. Welch) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Kentucky.


                             General Leave

  Mr. WHITFIELD. Madam Speaker, I ask unanimous consent that all 
Members may have 5 legislative days in which to revise and extend their 
remarks and to insert extraneous materials in the Record on the bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Kentucky?
  There was no objection.
  Mr. WHITFIELD. Madam Speaker, I yield myself such time as I may 
consume.
  Today, we are considering S. 535, the Energy Efficiency Improvement 
Act of 2015, a bill to address energy efficiency in Federal buildings, 
energy conservation through the continued use of grid-enabled water 
heaters, and energy information for federally leased commercial 
buildings.
  I also want to thank the gentleman from Vermont (Mr. Welch) for 
working with us on this important legislation. Both sides of the aisle 
came together in this legislation, and I want to thank all of them and 
their staffs for the work that they have done.
  Madam Speaker, the first title in this bill would establish a Tenant 
Star program--a voluntary certification and recognition program--within 
ENERGY STAR to promote energy efficiency in separate spaces. This 
program allows for a voluntary, market-driven approach to aligning the 
interests of commercial building owners and their tenants to reduce 
energy consumption. The DOE would also be required to complete a study 
on feasible approaches to improving the energy efficiency of tenant-
occupied spaces in commercial buildings.
  The second title in this bill relates to hot water heaters. There are 
approximately 250 electric cooperatives in 34 States that utilize large 
electric resistance water heaters in demand response programs to help 
with reliability and consumer costs during peak periods of energy use.
  In March 2010, the Department of Energy issued new energy efficiency 
standards for large electric resistance water heaters that would, in 
effect, prohibit the manufacture of these water heaters that are 55 
gallons or larger in favor of heat pump technology for water heaters of 
55 gallons or larger. These standards took effect last week.
  I might say that the American people from whom I frequently hear are 
totally frustrated by the micromanagement of the government in almost 
every aspect of their lives, and this regulation about water heaters is 
just one example.
  At the hearing that we held on this regulation, the manufacturers 
testified

[[Page 5268]]

that this regulation would basically double the cost of these water 
heaters. We have a situation in which many heat pump water heaters are 
not compatible with certain utility thermal energy storage and demand 
response programs that allow utilities to reduce or to shift their 
loads during certain periods of energy use. Title II would allow for 
the continued manufacture of large electric resistant water heaters 
above certain gallons specifically for use in these energy savings 
programs.
  This is very common sense, Congress' responding to concerns by the 
general public that the Department of Energy is trying to micromanage 
this small part of the energy sector in the United States.
  I might mention that the third title of this bill requires that 
federally leased buildings without ENERGY STAR labels benchmark and 
disclose their energy usage data where practicable. Federally owned 
buildings are already subject to benchmarking requirements pursuant to 
section 432 of the Energy Independence and Security Act of 2007. Title 
III simply requires the DOE to complete a study of best practices 
regarding State and local performance benchmarking and disclosure 
policies for commercial and multi-family buildings in addition to the 
impact of utility policies for providing aggregated information to 
owners of multi-tenant buildings to assist with benchmarking programs.
  This is a commonsense piece of legislation. It has passed the House 
and the Senate. The Senate bill was a little bit different than ours, 
so we are taking up their bill.
  I reserve the balance of my time.
  Mr. WELCH. Madam Speaker, I yield myself such time as I may consume.
  I thank the gentleman for his excellent work.
  Today is a very good day in Congress and in our country as we send to 
the President's desk bipartisan legislation that will: one, lower 
energy bills for families and businesses; two, create good jobs in 
manufacturing American-made energy efficiency products; and, three, 
improve our environment by reducing carbon emissions. I am hopeful that 
the common ground we have found in this bill sets the stage for further 
cooperation by both parties and by both Chambers in addressing many of 
the challenges facing our country.
  I want to thank Chairman Upton and Chairman Whitfield, and I want to 
thank Ranking Member Pallone and Ranking Member Rush for working with 
us to advance this important legislation.
  Thank you, especially, Representative McKinley, for partnering with 
me this term and last on this issue. Your background as an engineer and 
as a small business owner has provided much-needed expertise to our 
committee, and I am grateful to you for your partnership and leadership 
on this issue.
  The bill before us today, as Mr. Whitfield said, advanced by Senators 
Shaheen and Portman in the Senate, also includes some very good ideas 
from many Members of this House, those from Representatives Cramer, 
Doyle, Latta, Loebsack, Castor, and Kinzinger.
  Thank you all for your contributions to this good, bipartisan bill.
  Madam Speaker, I have long believed that energy efficiency is an 
issue that lends itself to looking past partisan differences to find 
common ground in our Congress. We may disagree on the causes of climate 
change and of the best fuel mix to meet America's energy needs, but we 
can all agree that using less of whatever energy source is more. We can 
all agree that creating demand for American-made, energy-efficient 
products will create good jobs, and we can all agree that cutting the 
energy bills of homeowners, businesses, and the Federal Government is a 
very good thing.
  Vermont has been a leader for a long time in energy efficiency. We 
were the first in the Nation to establish an ``energy efficiency 
utility'' to provide assistance to homeowners and businesses that were 
seeking to lower their energy bills. In 2013 alone, the work of 
Efficiency Vermont yielded a lifetime customer savings of $206 million 
for Vermonters. That is real money.
  The bill before us today takes an important step towards making 
America more energy efficient. It includes the Better Buildings Act, 
also known as Tenant Star, which will drive private sector innovation 
in the energy efficiency sector. Homes and buildings consume 40 percent 
of our energy in the United States. That is 40 percent. In commercial 
buildings, owners report that tenants consume up to 50 percent or more 
of the total building energy.
  One of the challenges facing commercial buildings has been the issue 
of ``split incentives.'' Building owners and tenants are not always on 
the same page when it comes to energy performance. Part of the problem 
is that only one party is paying the energy bill. The other part of the 
problem is that, while we recognize energy-efficient buildings through 
our ENERGY STAR program, we have no similar recognition program for 
tenant spaces. Our bill creates a voluntary Tenant Star recognition 
program for separate spaces in commercial buildings.
  When we combine ENERGY STAR buildings with Tenant Star rentals, we 
can optimize energy efficiency and shorten payback periods. A good 
example of this synergy can be found in the ENERGY STAR-certified 
Vermont Innovation Center, located in Burlington, Vermont. The Vermont 
Energy Investment Corporation is located in this building as well as my 
own district office.
  The VEIC took aggressive action to optimize the efficiency of its 
tenant space in the building. It converted the overhead fluorescent 
lighting to highly efficient LEDs and applied 6 inches of spray foam 
insulation to the exterior walls. Making these improvements in an 
ENERGY STAR building optimized an already efficient tenant space. The 
VEIC expects to save nearly $11,000 a year in energy savings. However, 
there is no recognition program for these improvements, and we don't 
know what else VEIC could be doing to increase energy savings.
  Under this bill, we will study the best ways to optimize commercial 
tenant spaces and to recognize such spaces with a new Tenant Star 
label. By combining energy-efficient tenant build-outs with ENERGY STAR 
buildings, we will double down on a successful program and optimize 
energy savings in commercial buildings, all through voluntary action.
  In addition to Tenant Star, this legislation includes two other 
important efficiency provisions.
  First, the bill makes much-needed changes to energy efficiency 
standards for large water heaters used in demand response programs. 
These water heaters act as residential energy storage devices and allow 
utilities to curb energy demand during peak hours.
  Mr. Whitfield, thank you again for your leadership on this.
  Second, the bill will require the disclosure of the amount of energy 
consumed in federally leased buildings and begin benchmarking their 
energy use.
  In the coming weeks, I look forward to working with my colleagues to 
pass additional bipartisan energy efficiency bills, including a more 
expansive version of the McKinley-Welch-Shaheen-Portman legislation 
before us today. We should also pass legislation to encourage 
performance contracting in Federal buildings and streamline the Federal 
green schools efforts.

                              {time}  1545

  Madam Speaker, energy efficiency is not a partisan issue. I am 
encouraged by the steps we are taking today and look forward to working 
with my colleagues on additional initiatives that cut energy bills, 
create jobs, and improve the environment. I urge Members to vote for 
this bill.
  I reserve the balance of my time.
  Mr. WHITFIELD. Madam Speaker, I reserve the balance of my time.
  Mr. WELCH. I yield such time as he may consume to the gentleman from 
Illinois (Mr. Rush).
  Mr. RUSH. I thank the gentleman for yielding.
  Madam Speaker, I rise in support of S. 535, the Energy Efficiency 
Improvement Act of 2015, and I want to join with my colleague, Mr. 
Welch, in congratulating all in the leadership: Mr. Whitfield, Mr. 
Welch, Mr. Pallone,

[[Page 5269]]

and the chairman of the full committee.
  Mr. Speaker, this is a modest but, most importantly, a bipartisan 
piece of legislation that combines three separate energy efficiency 
titles. This bill was passed by unanimous consent out of the Senate 
just this last month.
  The bill before us today is also similar to H.R. 2126, which passed 
out of this House in the last session of Congress on an overwhelmingly 
bipartisan vote of 375-36.
  The first title of this bill, Madam Speaker, is the Better Buildings 
Act, which was introduced into the Congress by my friends and 
colleagues, the gentleman from West Virginia (Mr. McKinley) and the 
gentleman from Vermont (Mr. Welch).
  This title simply directs the General Services Administration to 
develop model leasing provisions and best practices to encourage 
commercial building owners and their tenants to invest in cost-
effective energy efficiency measures. These model leasing provisions 
may then be used in Federal leases and, along with the best practices, 
Madam Speaker, shall be made available to all State and local 
governments.
  Additionally, section 103 directs the Department of Energy to conduct 
a study on the feasibility of significantly improving energy efficiency 
in commercial buildings through the design and construction of separate 
tenant spaces with high-performance energy efficiency measures.
  Section 104 directs the EPA to develop a ``Tenant Star'' program 
within the ENERGY STAR program to promote energy efficiency in separate 
spaces leased by tenants in commercial buildings. This data can then be 
used to establish an ENERGY STAR rating system to recognize tenants in 
commercial buildings that voluntarily achieve high levels of energy 
efficiency in separate spaces.
  Madam Speaker, title II of this bill, the Grid-Enabled Water Heaters 
bill, was introduced by my colleague and my good friend, Chairman 
Whitfield, along with Mr. Welch, Mr. Latta, Mr. Loebsack, Mr. Cramer, 
and Mr. Doyle. This section establishes a separate energy efficiency 
standard for grid-enabled water heaters, which are used in utility 
demand and thermal storage programs.
  Finally, Madam Speaker, title III of this bill, the Energy 
Information for Commercial Buildings bill, which was introduced into 
Congress by my friend and colleague, Ms. Castor of Florida, requires 
Federally leased buildings without ENERGY STAR labels to benchmark and 
disclose their energy usage data in most cases.
  It also requires the Department of Energy to complete a study of best 
practices for and impacts of, one, State and local performance 
benchmarking and disclosure policies for commercial and multifamily 
buildings; and, two, utility policies for providing aggregated 
information to owners of multitenant buildings to assist with 
benchmarking programs. In addition, Madam Speaker, the DOE is required 
to maintain a database to store and make available public energy-
related information on commercial and multifamily buildings.
  Madam Speaker, in recent history, we have not been able to pass 
bipartisan energy legislation through both Chambers and into law, so it 
is important that we move this bill to the President's desk so that we 
can demonstrate once again to the American people that this Congress is 
still capable of functioning properly and legislating on their behalf.
  Madam Speaker, I urge all my colleagues to vote for this bill.
  Mr. WHITFIELD. Madam Speaker, I don't believe we have any additional 
speakers on our side, and I would like the opportunity to close, so I 
will reserve the balance of my time.
  Mr. WELCH. Madam Speaker, I yield myself the balance of my time, and 
thank the gentleman from Illinois (Mr. Rush) not just for his remarks 
on this bill, but for his leadership on this issue and other issues in 
the committee over the years.
  It is a good day when we can come together to do something 
constructive. This legislation finds that spot, energy efficiency, 
where we can join in embracing the enormous benefit of creating ways 
where homeowners and business owners of commercial buildings can figure 
out how to cut down on their bills. Whatever fuel source they use, if 
they have got a lower bill, that is a good thing.
  To achieve that goal, we have to put Americans to work, a lot of 
tradespeople who have got real skills and need a place to use them. 
They are the ones who retrofit these buildings, commercial buildings 
and homes. There is an incidental benefit: We reduce carbon emissions 
since we are using less fuel. This is tremendous.
  I want to thank the gentleman from Kentucky (Mr. Whitfield) and the 
gentleman from Michigan (Mr. Upton) for all the good work that they 
did.
  Madam Speaker, seeing no other speakers here, I yield back the 
balance of my time.
  Mr. WHITFIELD. Madam Speaker, I want to thank my colleagues on both 
sides of the aisle once again, specifically Senators Shaheen and 
Portman, Congressmen McKinley and Welch, Mr. Upton and Mr. Pallone, and 
certainly Mr. Rush of Illinois. All of them worked very diligently on 
this, and I know they are committed to efficiency.
  I want to just say one more time that I am specifically pleased that 
this legislation will stop the Department of Energy's regulation that 
would prohibit the manufacture of heat-resistant water heaters above 55 
gallons. If that regulation had been allowed to continue, it would have 
cost the American public a lot more money going to the heat pump 
technology. So this legislation has stopped that. It is going to 
improve efficiency. I would urge all of my colleagues to support this 
legislation.
  I yield back the balance of my time.
  Mr. PALLONE. Madam Speaker, I rise in support of S. 535, the Energy 
Efficiency Improvement Act of 2015. This is bipartisan legislation to 
promote energy efficiency that recently passed the Senate by unanimous 
consent.
  S. 535--sponsored by Senators Portman and Shaheen--is very similar to 
legislation reported last Congress by the Energy and Commerce Committee 
which passed the House with an overwhelmingly bipartisan vote. The bill 
addresses three main areas: energy efficient buildings, the grid-
enabled water heaters, and energy benchmarking and information 
disclosure for federal buildings.
  Title one is comprised of the Better Buildings Act, bipartisan 
legislation sponsored in the House by Reps. McKinley and Welch. Section 
102 of the bill directs the General Services Administration to develop 
model leasing provisions and best practices to encourage commercial 
building owners and tenants to invest in cost-effective energy 
efficiency measures. It also ensures the model leasing provisions are 
available for use in federal leases and, along with the best practices, 
are available for state and local governments to also use. 
Additionally, Section 103 directs the Department of Energy (DOE) to 
study improving energy efficiency in commercial buildings through 
design and construction of separate tenant spaces with high-performance 
energy efficiency measures. And, Section 104 directs EPA to develop a 
voluntary ``Tenant Star'' program within the Energy Star program to 
promote energy efficiency in separate spaces leased by tenants in 
commercial buildings and requires the Agency to establish an Energy 
Star rating system to recognize tenants in commercial buildings that 
voluntarily achieve high levels of energy efficiency in separate 
spaces.
  Title two establishes a separate energy efficiency standard for grid-
enabled water heaters, which are used in utility demand-response and 
thermal storage programs. This is substantially the same language 
included in H.R. 906, legislation sponsored by Chairman Whitfield, Mr. 
Loebsack and others that was reported without dissent last week by our 
committee. In addition to establishing a separate standard for these 
water heaters, the provision requires those units to have a built-in 
activation lock to ensure their participation in such a program.
  Finally, title three is essentially the same as H.R. 1867, 
legislation sponsored by Reps. Castor and Kinzinger regarding energy 
information for commercial buildings. Section 301 requires federally-
leased buildings without Energy Star labels to benchmark and disclose 
their energy usage data except in certain circumstances. It also 
requires DOE to complete a study of best practices regarding the 
impacts of state and local performance benchmarking and disclosure 
policies for commercial and multifamily buildings, as well as

[[Page 5270]]

utility policies for providing aggregated information to owners of 
multitenant buildings to assist with benchmarking programs. In 
addition, it requires DOE to maintain a database to store and make 
available public energy-related information on commercial and 
multifamily buildings.
  S. 535 is a stripped down version of the Shaheen-Portman efficiency 
legislation that has taken far too long to pass either chamber. 
However, I am disappointed that--unlike the original Shaheen-Portman 
bill--the proposal before us does not contain provisions authored by 
Rep. Eshoo that would address the efficiency of federal data centers. 
This is an area where we can easily see a great gain in efficiency 
relatively quickly and easily and her proposal has good bipartisan 
support. So, I have to note with concern the fact that something as 
useful and bipartisan as that federal data center efficiency language 
could not make it into the final package, despite being something that 
enjoys support on both sides.
  I hope that is an anomaly and not a harbinger of things to come, 
because we need to look at both sides of the equation--demand and 
supply, consumers and producers--to construct an energy policy for the 
future, one that is both economically and environmentally sustainable. 
And we need the resources of both sides of the aisle, both chambers of 
Congress and all branches of government to get there.
  Today, the Obama Administration released the first installment of its 
Quadrennial Energy Review (QER) after a year-long, detailed examination 
of our energy needs. The QER is not exactly glamorous, but it is a 
serious, thoughtful and necessary look at how best to modernize 
America's energy infrastructure to create jobs and grow our economy in 
a manner that ensures our energy security and protects our environment. 
While I look forward to reviewing the complete report, I know that the 
progress updates we have received throughout the year have elicited 
positive and hopeful reactions from both sides of the aisle.
  That's why I'm particularly pleased that the Administration is 
releasing this now while our Committee and our counterparts in the 
other body are considering the components of a possible bipartisan 
energy bill. We must meet consumers' need for reliable, affordable and, 
just as importantly, clean energy--one of the nation's most pressing 
issues. The QER looks to the future of our economy to take full 
advantage of American innovation and the new sources of domestic energy 
supply that are transforming the nation's energy marketplace. Just like 
efficiency, energy infrastructure--particularly with regard to size, 
scope, volume and siting--is critical to that endeavor. So, too, is the 
makeup--not just the volume--of the jobs that are created in 
modernizing that infrastructure; they must be jobs that are long-term, 
well-paying, and a gateway to the American dream for a diverse range of 
women and men.
  As Chairman Upton, Chairman Whitfield, Ranking Member Rush and I 
continue to explore the potential for developing and moving a 
bipartisan energy bill during this Congress, I hope we will take 
advantage of the QER, as well as the best consensus ideas on both sides 
of the aisle here in Congress. That, to me, is the only successful path 
forward and it is the process embodied in the legislation before us 
today.
  I urge my colleagues to support both the legislation before us and 
continuing the effort to build a broad, bipartisan partnership on 
energy issues. Only through this kind of cooperation can we enact 
energy legislation that truly powers our economy and our future.
  Mr. PETERSON. Madam Speaker, I strongly support the Energy Efficiency 
Improvement Act, which will create a special category for large volume 
water heaters in the Department of Energy's new energy efficiency 
standards. Without this bill, manufacturers would no longer be able to 
make large volume water heaters, which are commonly used in Minnesota 
homes.
  This legislation is necessary because the DOE failed to recognize the 
many benefits that large-volume water heaters provide, like bringing 
more renewable energy onto the grid, and allowing power plants to run 
more efficiently. The Department then made a problematic rule even 
worse by pulling a waiver for this technology three weeks before the 
rule went final this month.
  This could have been where the story ended, but a diverse coalition 
of stakeholders had been working together to ensure that this 
technology can continue to be used.
  They know that using electricity in a smarter way not only saves 
consumers money, but it is also good for the environment and helps to 
stabilize the grid.
  That is why industry, environmental and energy efficiency 
stakeholders support these hot water heaters when used as part of 
demand response systems. I hope that with the passage of this bill, the 
Department can get quickly reverse course, and move forward.
  This is good, reasonable legislation and I urge my colleagues to vote 
yes.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Kentucky (Mr. Whitfield) that the House suspend the 
rules and pass the bill, S. 535.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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