[Senate Report 111-167]
[From the U.S. Government Publishing Office]


111th Congress 
 2d Session                      SENATE                          Report
                                                                111-167
_______________________________________________________________________
                                                       Calendar No. 335
 
        FEDERAL AGENCY ENERGY EFFICIENCY IMPROVEMENT ACT OF 2009

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 1830

  TO ESTABLISH THE CHIEF CONSERVATION OFFICERS COUNCIL TO IMPROVE THE 
     ENERGY EFFICIENCY OF FEDERAL AGENCIES, AND FOR OTHER PURPOSES




                 April 12, 2010.--Ordered to be printed
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

               JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan                 SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii              TOM COBURN, Oklahoma
THOMAS R. CARPER, Delaware           SCOTT P. BROWN, Massachusetts
MARK L. PRYOR, Arkansas              JOHN McCAIN, Arizona
MARY L. LANDRIEU, Louisiana          GEORGE V. VOINOVICH, Ohio
CLAIRE McCASKILL, Missouri           JOHN ENSIGN, Nevada
JON TESTER, Montana                  LINDSEY GRAHAM, South Carolina
ROLAND W. BURRIS, Illinois
EDWARD E. KAUFMAN, Delaware

                  Michael L. Alexander, Staff Director
                     Kevin J. Landy, Chief Counsel
                         Troy H. Cribb, Counsel
     Brandon L. Milhorn, Minority Staff Director and Chief Counsel
                    Lisa M. Nieman, Minority Counsel
                  Trina Driessnack Tyrer, Chief Clerk
                                                       Calendar No. 335
111th Congress
                                 SENATE
                                                                 Report
 2d Session                                                     111-167

======================================================================

        FEDERAL AGENCY ENERGY EFFICIENCY IMPROVEMENT ACT OF 2009


                                _______
                                

                 April 12, 2010.--Ordered to be printed

                                _______
                                

Mr. Lieberman, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 1830]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 1830) to establish 
the Chief Conservation Officers Council to improve the energy 
efficiency of Federal agencies, and for other purposes, having 
considered the same, reports favorably thereon with an 
amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Legislative History..............................................4
 IV. Section by Section Analysis......................................5
  V. Regulatory Impact and Evaluation.................................7
 VI. Congressional Budget Office Cost Estimate........................7
VII. Changes in Existing Law Made by the Bill, as Reported............8

                         I. Purpose and Summary

    S. 1830, the Federal Agency Energy Efficiency Improvement 
Act of 2009, seeks to make the federal government more energy 
efficient in its operations and to ensure accountability within 
executive branch agencies for meeting energy efficiency goals. 
The bill would require the head of each major federal agency to 
designate a Chief Conservation Officer and charge that officer 
with helping ensure agency compliance with government energy 
policies, as well a number of other tasks aimed at making the 
agency more energy efficient. The Chief Conservation Officer 
would serve in the Senior Executive Service and would 
participate in the Chief Conservation Officers Council, a new 
interagency body created by the legislation. The legislation 
also includes two provisions that change government procurement 
policies in order to encourage the purchase of energy-efficient 
technologies.

              II. Background and Need for the Legislation

    As the largest consumer of energy in the world, the U.S. 
government has both the incentive and the opportunity to 
implement broad energy efficiency policies and make great use 
of energy-saving technologies. According to the U.S. Department 
of Energy's Federal Energy Management Program (FEMP), the 
federal government consumed about 1.5 percent of the nation's 
total energy in Fiscal Year 2008, at a cost of approximately 
$24.5 billion.\1\ Nearly one-third of that cost went just for 
the energy needed to operate Federal buildings.\2\ Reducing the 
Federal government's energy usage thus would not only prove 
environmentally sound, but also would yield great cost savings.
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    \1\Information on federal energy usage may be found on the FEMP web 
site at http://www1.eere.energy.gov/femp/. See also Cutting the Federal 
Government's Energy Bill: An Examination of the Sustainable Federal 
Government Executive Order Before the Subcommittee on Federal Financial 
Management, Government Information, Federal Services and International 
Security of the Senate Committee on Homeland Security and Governmental 
Affairs, 111th Cong. (2010) (statement of Richard Kidd, Program 
Manager, Federal Energy Management Program, Office of Energy Efficiency 
and Renewable Energy, U.S. Department of Energy).
    \2\Id.
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    Over the last few decades, more than a dozen laws, 
regulations, and Executive Orders have sought to encourage 
energy efficiency and reduce the environmental impact of 
government operations. Unfortunately, agencies have been 
inconsistent in meeting their environmental goals. The lack of 
a unified effort and clear accountability has undermined the 
good intentions of these policies.
    Several Executive Orders, including one President Obama 
recently issued in October 2009, set energy reduction targets 
for agencies. In 2007, President Bush issued Executive Order 
13423, requiring agencies to reduce their energy use.\3\ 
Specifically, the Executive Order required agencies to lower 
their energy consumption by 3 percent each year, with the goal 
of a 30 percent reduction from 2003 levels by the end of fiscal 
year 2015. Congress enacted this requirement into law in the 
Energy Independence and Security Act of 2007 (EISA).\4\
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    \3\Exec. Order No. 13423, 72 FR 3919 (2007).
    \4\Pub. L. 110-140, Sec. 431.
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    FEMP reported inconsistent progress by 2008, however. In 
fiscal year 2007, for example, the Environmental Protection 
Agency and the Department of the Interior were on-target to 
meet their reduction goals, but other agencies, including the 
Department of Transportation and the General Services 
Administration, were not.\5\ ``Energy Management Scorecards'' 
compiled annually by the Office of Management and Budget (OMB) 
reached similar conclusions, showing great variance across the 
Federal government, both in terms of compliance with energy 
efficiency laws and regulations and initiatives individual 
agencies have developed to reduce energy usage.\6\
---------------------------------------------------------------------------
    \5\U.S. Department of Energy. 2008 Federal Energy Management 
Program (FEMP) Market Report. Washington: GPO, 2009.
    \6\U.S. Office of Management and Budget. July 2009 OMB Scorecard 
for Energy, Transportation and Environment. Washington: OMB, 2009. 
http://www.fedcenter.gov/Documents/
index.cfm?id=13191&pge_prg_id=27544&pge_id=3286 (accessed on February 
25, 2010)
---------------------------------------------------------------------------
    On October 5, 2009, President Obama issued Executive Order 
13514, which seeks to establish a more integrated strategy for 
energy efficiency.\7\ The Executive Order directs each agency 
head to designate an ``Agency Senior Sustainability Officer'' 
from among the agency's senior management officials. This 
provision builds on the 2007 Executive Order 13423, which 
required agencies to designate senior officers responsible for 
environmental, energy, and transportation management; the 
functions of these officers will now be performed by Agency 
Senior Sustainability Officers.\8\
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    \7\Exec. Order No. 13514, 74 FR 52117 (2009).
    \8\Exec. Order No. 13423, 72 FR 3919 (2007).
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    The Committee believes that these positions could be 
strengthened and that establishing the duties of agency 
conservation officers in statute will foster long-term 
leadership on energy efficiency issues and create greater 
accountability for meeting energy reduction targets. S. 1830 
therefore would require the head of each major federal agency 
to designate a Chief Conservation Officer, who would be a 
member of the career Senior Executive Service. The bill would 
require that energy efficiency and sustainability policies 
would be the primary responsibility of these officers. 
Dedicating a senior-level career official to energy efficiency 
policy at each agency would improve the government's focus on 
implementation of existing laws and policies, enhance 
innovation, and help identify future initiatives. The Chief 
Conservation Officer would also be responsible for 
incorporating environmental considerations into agency 
procurement practices. This involvement would encourage 
efficiency improvements in agencies' procurement of goods and 
services.
    S. 1830, like Executive Order 13514, also creates an 
interagency council of senior environmental officials, which 
will include each Chief Conservation Officer. The legislation 
goes further than the Executive Order in spelling out the 
duties of the council, which will be called the Chief 
Conservation Officers Council. These duties will include 
assisting agencies in developing energy baselines and goals, 
providing guidance and recommendations to agencies, and 
preparing annual reports.
    By requiring the head of each major federal agency to 
designate a Chief Conservation Officer, and by giving statutory 
backing to the interagency council, S. 1830 provides a 
mechanism to ensure accountability in meeting agency energy 
reduction targets and to spur long-term leadership on the 
issue.
    The legislation also includes two provisions that change 
government procurement policies in order to encourage the 
purchase of energy-efficient technologies. Specifically, the 
bill would allow state and local governments to purchase 
``green'' commodities and services from the Schedules program 
of the General Services Administration (GSA), including 
building materials, office supplies, facilities maintenance and 
management services, and environmental services.\9\ This 
procurement authority would help state and local governments 
reduce the administrative costs of negotiating their own 
contracts and will encourage greater use of green products.
---------------------------------------------------------------------------
    \9\Under the GSA Federal Supply Schedules (FSS) program, also known 
as the GSA Schedules or Multiple Award Schedules program, federal 
agencies are able to purchase goods and services under contracts that 
are pre-negotiated by GSA. These contracts cover more than 11 million 
commercial goods and services and are listed in broad categories known 
as schedules. GSA pre-negotiates the terms and conditions of the 
contract, including discounted prices.
---------------------------------------------------------------------------
    The bill would also expand the definition of renewable 
energy in Federal purchase requirements to include renewable 
energies other than electric energies. Federal purchase 
requirements are those Federal laws and regulations that govern 
the purchase and use of energy-using products.\10\ While 
Federal agencies are required to procure energy-efficient 
products, the current definition of that term includes only 
electric-based energy products, precluding agencies from taking 
advantage of other green energies like geo-thermal energy.
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    \10\Federal purchase requirements that govern the procurement of 
energy-efficient products include the Federal Procurement of Energy 
Efficiency Products, Final Rule, 74 Fed. Reg. 10830 (March 13, 2009) 
(to be codified at 10 CFR pt. 436). Print.; Energy Independence and 
Security Act of 2007, Pub. L. no. 110-140, 121 Stat. 1492 (2007). 
Print.; Energy Policy Act of 2005, Pub. L. no. 109-58, 119 Stat. 594 
(2005). Print.; Exec. Order No. 13423, 72 FR 3919 (2007).; Exec. Order 
No. 13221, 66 FR 40571 (2001); and Energy Policy Act of 1992, Pub. L. 
no. 102-486, 106 Stat. 2776 (1992). Print.
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    The Committee has received letters of support for the 
legislation from the Professional Services Council, Coalition 
for Government Procurement, Environment Northeast (ENE), and 
the Environmental Defense Fund.

                        III. Legislative History

    On October 21, 2009, Senators Collins, Lieberman and Carper 
introduced S. 1830, which was referred to the Senate Committee 
on Homeland Security and Governmental Affairs. The Committee 
considered the bill on December 16, 2009. The Committee adopted 
by voice vote a substitute amendment offered by Senator 
Collins, and then ordered the bill favorably reported, also by 
voice vote. Members present for the vote on the bill were 
Senators Lieberman, Akaka, Carper, Pryor, McCaskill, Tester, 
Burris, Kirk, Collins, and Bennett.
    The substitute amendment makes three primary changes to the 
original bill. First, the amendment adds a provision to the 
bill requiring the Chief Conservation Officer to consider the 
short- and long-term cost-effectiveness of each initiative 
before taking actions to increase energy efficiency. Second, 
the amendment clarifies information to be contained in annual 
reports the Chief Conservation Officers Council would submit to 
Congress and the Office of Management and Budget. Specifically, 
it directs the reports to include information about agency-by-
agency energy usage and reductions, agency and government-wide 
trends in energy usage, agency and government-wide cost 
savings, and best practices and recommendations. Finally, the 
amendment deletes a provision of the original bill, which would 
have allowed agencies to enter into power purchase agreements 
for electricity produced by renewable energy sources under a 
pilot program.\11\ According to the Congressional Budget 
Office, this pilot program would have had significant budget 
implications.
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    \11\Under a power purchase agreement, a developer installs, owns, 
operates, and maintains a renewable energy system on agency property 
while the agency agrees to purchase the power generated by the system. 
The agency simply purchases the power generated by the system at a set 
price over the length of the contract. This price is typically less 
than what would have been paid to the utility without a power purchase 
agreement. See also Cutting the Federal Government's Energy Bill: An 
Examination of the Sustainable Federal Government Executive Order 
Before the Subcomm. on Federal Financial Management, Government 
Information, Federal Services and International Security of the Senate 
Comm. on Homeland Security and Governmental Affairs, 111th Cong. (2010) 
(statement of Richard Kidd, Program Manager, Federal Energy Management 
Program, Office of Energy Efficiency and Renewable Energy, U.S. 
Department of Energy).
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               IV. Section-by-Section Summary of the Bill


Section 1. Short title

    The short title of the bill is the ``Federal Agency Energy 
Efficiency Improvement Act of 2009.''

Section 2. Definitions

    Section 2 defines the terms Chief Conservation Officer, 
Council, and federal agency. The term ``federal agency'' means 
an agency of the federal government, as defined by the Chief 
Financial Officers Act.\12\
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    \12\31 U.S. Code, Sec. 901(b) (2003).
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Section 3. Chief Conservation Officers

    This section requires each agency head to designate a Chief 
Conservation Officer and outlines the roles and 
responsibilities of the position. The designated individual 
must serve in the Senior Executive Service. While the duties 
outlined in the legislation must be the individual's primary 
role, the individual may serve in other capacities in the 
federal government and may serve as the Senior Sustainability 
Officer created in Executive Order 13514.
    The general responsibilities of the Chief Conservation 
Officer are to ensure the agency complies with each federal 
energy efficiency policy and to provide advice and other 
assistance to the agency head, as well as other applicable 
senior executive management personnel within the agency, to 
enhance the conservation efforts at the agency. The Chief 
Conservation Officer would be responsible for ensuring 
compliance by assessing agency performance, promoting best 
practices, providing advice and recommendations to senior 
agency officials, and exercising the other specific 
responsibilities described in this section. The bill does not 
give the Chief ConservationOfficer statutory authority to 
overrule decisions of more senior agency officials. The bill also does 
not statutorily mandate energy efficiency policies promulgated by the 
Executive Branch or which otherwise have not been enacted into law.
    Additionally, the Chief Conservation Officer is responsible 
for collecting data about the energy consumption of buildings 
and major equipment owned or operated by the agency, and 
providing that information to the Chief Conservation Officers 
Council. The Chief Conservation Officer is responsible for 
developing and implementing policies that minimize the agency's 
energy consumption and taking any additional actions to 
increase energy efficiency and maintain or increase the 
agency's energy security and cost savings. The Chief 
Conservation Officer is required to coordinate with the 
agency's Chief Information Officer in developing, facilitating, 
and maintaining the implementation of a sound energy efficiency 
information technology architecture, and in ensuring energy 
consumption is considered in the design and operation of all 
major information resources management processes of the agency. 
Before implementing any of these initiatives or policies, the 
Chief Conservation is also to consider the cost-effectiveness 
of doing so.
    The Chief Conservation Officer shall be responsible for the 
management of the energy efficiency of his or her agency. In 
this capacity, the Chief Conservation Officer shall monitor and 
evaluate the effectiveness of each energy efficiency program of 
the agency and advise the head of the agency on whether to 
continue, modify or terminate such programs. In addition, the 
Chief Conservation Officer, in conjunction with the Chief 
Information Officer, shall prepare an energy usage report that 
will be included in the agency's budget submissions to 
Congress.

Section 4. Chief Conservation Officers Council

    This section establishes a Chief Conservation Officers 
Council, which is to serve as the principal interagency forum 
for improving agencies' practices relating to the design, 
acquisition, development, modernization, use, operation, 
sharing, and performance of federal energy efficiency efforts. 
The Deputy Director for Management of the Office of Management 
and Budget will serve as chairperson of the Council and the 
Program Manager will serve as Vice Chairperson. Other members 
of the Council will be the Chief Conservation Officers, the 
Secretary of Energy, the Administrator of the Environmental 
Protection Agency, the Chief Information Officer of each 
agency, the Federal Environmental Executive, and any other 
officer or employee of the federal government as designated by 
the Chairperson or Vice Chairperson. The Council is to oversee 
the collection and reporting of any necessary energy usage data 
by Chief Conservation Officers and assist in developing agency 
energy baselines and goals. Additionally, the Council is to 
provide guidance and develop recommendations for agency Chief 
Conservation Officers to help meet their agencies' energy 
efficiency goals.
    This section also requires the Council to submit to 
Congress and the Office of Management and Budget an annual 
report that includes information about agency-by-agency energy 
usage and reductions, agency and government-wide trends in 
energy usage, agency and government-wide cost savings, and best 
practices and recommendations.
    This section also requires the Director of the Office of 
Management and Budget to include in the annual report and 
scorecard, as required by EISA,\13\ a description of agencies' 
efforts under this legislation. This means that the annual 
report and scorecard must include information about agencies' 
equipment and building energy usage. Information about energy 
usage should include energy usage baselines, actual usage, and 
usage goals.
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    \13\Pub. L. 110-140 Sec. 431
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Section 5. Authorization for acquisitions

    This section allows state and local governments to purchase 
goods and services using contracts under certain GSA Schedules. 
The Schedules identified in the legislation contain 
environmentally preferable ``green'' products and services. 
While the legislation does not specifically require that the 
GSA provide training to state and local governments on use of 
these Schedules, the Committee presumes that GSA will provide 
access to training, as appropriate. The legislation expressly 
states that non-federal users of these Schedules--meaning state 
and local governments--must comply with the ordering guidance 
GSA provides. This is necessary to ensure non-federal users 
conduct proper order-level competition to obtain the best value 
from GSA Schedule contractors.

Section 6. Clarification of renewable energy

    This section amends the definition of ``renewable energy'' 
under the Energy Policy Act of 2005 to extend federal purchase 
requirements beyond electricity. Under the current definition, 
agencies cannot take advantage of certain ``green'' 
technologies like geo-thermal energy because they are not 
considered electric. This provision expands the definition to 
include other non-electric technologies, such as geo-thermal 
energy.

                  V. Regulatory Impact and Evaluation

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill. The 
Congressional Budget Office states that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandate Reform Act and would not affect the budgets of 
state, local, or tribal governments. The enactment of this 
legislation will not have significant regulatory impact.

             VI. Congressional Budget Office Cost Estimate

                                                  February 2, 2010.
Hon. Joseph I. Lieberman,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1830, the Federal 
Agency Energy Efficiency Improvement Act of 2009.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

S. 1830--Federal Agency Energy Efficiency Improvement Act of 2009

    S. 1830 would require each federal agency to appoint a 
Chief Conservation Officer to implement energy-efficiency 
policies. The legislation also would establish the Chief 
Conservation Officers Council as an interagency forum to 
provide guidance and recommendations to agencies on energy 
efficiency. Finally, S. 1830 would allow state and local 
governments to purchase certain energy-efficient products and 
services through the federal supply schedules.
    Most of the provisions of S. 1830 would codify and expand 
the current energy-efficiency practices at federal agencies. 
Executive Order 13514, which expands upon Executive Order 
13423, requires each federal agency to designate a Senior 
Sustainability Officer from among senior management officials 
to promote, monitor, and report on energy efficiency; it also 
established an interagency steering committee to promote energy 
efficiency.
    Any purchases of energy-efficient supplies and services 
would be an exchange between state, local, and tribal 
governments and commercial suppliers. The General Services 
Administration (GSA) charges a 0.75 percent fee on all sales to 
recover its procurement and administrative costs. Based on 
information from GSA regarding the anticipated demand from 
state and local governments, CBO estimates that implementing 
the bill would increase offsetting collections by a few million 
dollars a year. Because GSA is authorized to spend such 
collections without further appropriation, the net budgetary 
impact of this provision would be negligible.
    Based on information from GSA, the Department of Energy, 
and the Office of Management and Budget, CBO expects that 
implementing other provisions of S. 1830 would not 
significantly add to governmentwide costs.
    S. 1830 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act. The 
bill would benefit state, local, and tribal governments.
    The CBO staff contact for this estimate is Matthew 
Pickford. The estimate was approved by Theresa Gullo, Deputy 
Assistant Director for Budget Analysis.

                      VII. Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the following changes in existing 
law made by the bill, as reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman).

            TITLE 40--PUBLIC BUILDINGS, PROPERTY, AND WORKS

        Subtitle I--Federal Property and Administrative Services

                     CHAPTER 5--PROPERTY MANAGEMENT


               Subchapter I--Procurement and Warehousing


SEC. 502. SERVICES FOR OTHER ENTITIES.

           *       *       *       *       *       *       *


    (c) Use of Certain Supply Schedules.--
          (1) In general.--The Administrator may provide for 
        the use by State or local governments of Federal supply 
        schedules of the General Services Administration for 
        the following:
                  (A) Automated data processing equipment 
                (including firmware), software, supplies, 
                support equipment, and services (as contained 
                in Federal supply classification code group 
                70).
                  (B) Alarm and signal systems, facility 
                management systems, firefighting and rescue 
                equipment, law enforcement and security 
                equipment, marine craft and related equipment, 
                special purpose clothing, and related services 
                (as contained in Federal supply classification 
                code group 84 or any amended or subsequent 
                version of that Federal supply classification 
                group).
                  (C) Environmentally preferable `green' 
                products and services (as contained in Federal 
                supply classification code groups 03FAC, 51V, 
                56, 72IA, 73, and 899), including any amended 
                or subsequent version of the Federal supply 
                classification code groups).
          (2) Voluntary use.--In any case of the use by a State 
        or local government of a Federal supply schedule 
        pursuant to paragraph (1), participation by a firm that 
        sells to the Federal Government through the supply 
        schedule shall be voluntary with respect to a sale to 
        the State or local government through such supply 
        schedule.
          (3) Duty of non-federal users regarding use of 
        federal supply schedules.--During the Use of a Federal 
        supply schedule, an authorized non-Federal user shall 
        act in accordance with the ordering guidance provided 
        by the Administrator of General Services.

           *       *       *       *       *       *       *


Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 594)

           *       *       *       *       *       *       *



SEC. 203. FEDERAL PURCHASE REQUIREMENT.

           *       *       *       *       *       *       *


    (a) Requirement.--The President, acting through the 
Secretary, shall seek to ensure that, to the extent 
economically feasible and technically practicable, of the total 
amount of [electric] energy the Federal Government consumes 
during any fiscal year, the following amounts shall be 
renewable energy:
          (1) Not less than 3 percent in fiscal years 2007 
        through 2009.
          (2) Not less than 5 percent in fiscal years 2010 
        through 2012.
          (3) Not less than 7.5 percent in fiscal year 2013 and 
        each fiscal year thereafter.
    (b) Definitions.--In this section:
          (1) Biomass.--The term ``biomass'' means any lignin 
        waste material that is segregated from other waste 
        materials and is determined to be nonhazardous by the 
        Administrator of the Environmental Protection Agency 
        and any solid, nonhazardous, cellulosic material that 
        is derived from--
                  (A) any of the following forest-related 
                resources: mill residues, precommercial 
                thinnings, slash, and brush, or nonmerchantable 
                material;
                  (B) solid wood waste materials, including 
                waste pallets, crates, dunnage, manufacturing 
                and construction wood wastes (other than 
                pressure-treated, chemically-treated, or 
                painted wood wastes), and landscape or right-
                of-way tree trimmings, but not including 
                municipal solid waste (garbage), gas derived 
                from the biodegradation of solid waste, or 
                paper that is commonly recycled;
                  (C) agriculture wastes, including orchard 
                tree crops, vineyard, grain, legumes, sugar, 
                and other crop by-products or residues, and 
                livestock waste nutrients; or
                  (D) a plant that is grown exclusively as a 
                fuel [for the production of electricity].
          (2) Renewable energy.--The term ``renewable energy'' 
        means [electric] energy generated from solar, wind, 
        biomass, landfill gas, ocean (including tidal, wave, 
        current, and thermal), geothermal, municipal solid 
        waste, or new hydroelectric generation capacity 
        achieved from increased efficiency or additions of new 
        capacity at an existing hydroelectric project.

           *       *       *       *       *       *       *


                                  
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