[Senate Report 111-319]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 605
111th Congress                                                   Report
                                 SENATE
 2d Session                                                     111-319

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



 
                            SUPPLY STAR ACT

                                _______
                                

               September 27, 2010.--Ordered to be printed

                                _______
                                

   Mr. Bingaman, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 3396]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 3396) to amend the Energy Policy and 
Conservation Act to establish within the Department of Energy a 
Supply Star program to identify and promote practices, 
companies, and products that use highly efficient supply chains 
in a manner that conserves energy, water, and other resources, 
having considered the same, reports favorably thereon with 
amendments and an amendment to the title and recommends that 
the bill, as amended, do pass.
    The amendments are as follows:
    1. On page 2, line 8, insert ``recognize'' before 
``companies''.
    2. On page 2, line 9, insert ``recognize'' before 
``products''.
    3. On page 2, line 19, insert ``recognize'' before 
``companies''.
    4. On page 2, line 20, insert ``recognize'' before 
``products''.
    5. On page 3, lines 21 and 22, strike ``carried out by the 
Secretary, the Secretary shall consider energy and resource'' 
and insert ``carried out by the Secretary with respect to a 
specific product, the Secretary shall consider energy 
consumption and resource''.
    6. On page 4, between lines 19 and 20, insert the 
following:
    ``(g) Effect of Impact on Climate Change.--For purposes of 
this section, the impact on climate change shall not be a 
factor in determining supply chain efficiency.
    ``(h) Effect of Outsourcing of American Jobs.--For purposes 
of this section, the outsourcing of American jobs in the 
production of a product shall not count as a positive factor in 
determining supply chain efficiency.
    7. On page 4, line 20, strike ``(g)'' and insert ``(i)''.
    8. Amend the title so as to read: ``A bill to amend the 
Energy Policy and Conservation Act to establish within the 
Department of Energy a Supply Star program to identity and 
promote practices, recognize companies, and recognize products 
that use highly efficient supply chains in a manner that 
conserves energy, water, and other resources.''.

                                Purpose

    The purpose of S. 3396 is to establish within the 
Department of Energy a Supply Star program to identify and 
promote practices, recognize companies, and, as appropriate, 
recognize products that use highly efficient supply chains in a 
manner that conserves energy, water, and other resources.

                          Background and Need

    Up to 90 percent of a company's energy use can come from 
its product supply chains, encompassing the raw materials, 
manufacturing, packaging, transport, use, and disposal of 
goods. Therefore, improvements in supply chain energy 
efficiency can be of significant importance in the transition 
to a more energy efficient marketplace. However, efforts to 
improve supply chain energy efficiency throughout the economy 
face hurdles--especially in small companies--that may limit 
their widespread implementation. These hurdles can include a 
lack of information and analytical tools for parts of supply 
chains often lying far upstream or downstream (and therefore 
out of sight). A lack of leverage to drive global suppliers 
toward more efficient practice is another challenge. Overcoming 
these issues requires significant resources and access to 
global information that is often not readily available.
    There are existing federal programs which have initiatives 
that touch on elements of the supply chain, however there 
appears to be little or no coordinated or focused effort 
amongst them.
    Legislation is needed to help companies develop the generic 
tools, information, and assistance they need to analyze and 
improve the efficiency of their supply chains.

                          Legislative History

    S. 3396 was introduced by Senator Bingaman on May 24, 2010, 
and is cosponsored by Senators Lincoln, Pryor, and Bayh. The 
Committee on Energy and Natural Resources Subcommittee on 
Energy held a hearing on the bill on June 15, 2010. The 
Committee on Energy and Natural Resources considered the bill, 
agreed to amendments, and agreed to the bill as amended on July 
21, 2010, but a sufficient quorum was not present to report the 
bill. The Committee subsequently ordered S. 3396 favorably 
reported with amendments on August 5, 2010.

                        Committee Recommendation

    The Committee on Energy and Natural Resources, in an open 
business session on August 5, 2010, by a voice vote of a quorum 
present, recommends that the Senate pass S. 3396, if amended as 
described herein.

                          Committee Amendments

    During its consideration of S. 3396, the Committee adopted 
eight amendments. The first four amendments make it clear that 
the program is to recognize companies and products that use 
highly efficient supply chains. The fifth amendment clarifies 
the scope of supply chain efficiency evaluations carried out by 
the Secretary. In addition, the Committee adopted two 
amendments offered by Senator Barrasso that require that the 
impact of climate change, and the outsourcing of American jobs 
in the production of a product should not be factors in 
determining supply chain efficiency. The final amendment is an 
amendment to the bill's long title.

                      Section-by-Section Analysis

    Section 1 sets forth the short title.
    Section 2 amends the Energy Policy and Conservation Act by 
adding a new Section 324B.
    Section 324B(a) establishes within the Department of Energy 
a Supply Star program to identify and promote practices, 
recognize companies, and, as appropriate, recognize products 
that use highly efficient supply chains in a manner that 
conserves energy, water, and other resources.
    Section 324B(b) directs the Secretary of Energy to 
coordinate with the Energy Star program and with other 
appropriate agencies.
    Section 324B(c) directs the Secretary to: Promote practices 
and recognize companies and products that comply with the 
Supply Star Program; work to enhance industry and public 
awareness of the Supply Star program; collect and disseminate 
data on supply chain energy resource consumption; develop and 
disseminate metrics, processes, and analytical tools (including 
software) for evaluating supply chain energy resource use; 
develop guidance at the sector level for improving supply chain 
efficiency; work with domestic and international organizations 
to harmonize approaches to analyzing supply chain efficiency; 
and work with industry to improve supply chain efficiency 
through activities that include developing and sharing best 
practices and benchmarking.
    Section 324B(d) directs the Secretary to consider energy 
consumption and resource use throughout the entire lifecycle of 
a product in evaluating supply chain efficiency.
    Section 324B(e) gives the Secretary the authority to award 
grants or other forms of incentives on a competitive basis for 
studying supply chain efficiency and demonstrating reductions 
in the energy consumption of supply chains.
    Section 324B(f) directs the Secretary to use funds to 
support professional training programs to develop and 
communicate methods, practices, and tools for improving supply 
chain efficiency.
    Section 324B(g) authorizes appropriation of such sums as 
are necessary to carry out the program.

                   Cost and Budgetary Considerations

    The following estimate of costs of this measure has been 
provided by the Congressional Budget.

S. 3396--Supply Star Act of 2010

    Summary: S. 3396 would authorize the appropriation of 
whatever sums are necessary for the Department of Energy (DOE) 
to expand existing activities related to improving energy 
efficiency in industrial applications. CBO estimates that 
implementing the bill would cost $5 million in 2011 and $32 
million over the 2011-2015 period, assuming appropriation of 
the necessary amounts. Enacting S. 3396 would not affect direct 
spending or revenues; therefore, pay-as-you-go procedures do 
not apply.
    S. 3396 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 3396 is shown in the following table. 
The costs of this legislation fall within budget function 270 
(energy).

----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, in millions of dollars--
                                                         -------------------------------------------------------
                                                            2011     2012     2013     2014     2015   2011-2015
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level...........................        7        8        8        6        6        35
Estimated Outlays.......................................        5        8        8        6        6        32
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: S. 3396 would authorize DOE to establish 
a program to promote industrial energy efficiency. In 
particular, the bill would authorize DOE to competitively award 
grants and other incentives to entities for evaluating and 
improving the efficiency of processes involved in the 
production and distribution of products. The bill also would 
authorize DOE to support professional training programs to 
develop and communicate means of improving industrial energy 
efficiency.
    In 2010, DOE received $140 million for programs related to 
industrial technologies. Based on information from DOE about 
the anticipated cost of expanding the agency's level of effort 
under S. 3396, CBO estimates that meeting the bill's 
requirements would require an additional $35 million over the 
2011-2015 period. Assuming appropriation of those amounts, CBO 
estimates that resulting outlays would total $32 million over 
the 2011-2015 period.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: S. 3396 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal Costs: Megan Carroll; Impact 
on State, Local, and Tribal Governments: Ryan Miller; Impact on 
the Private Sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 3396.
    The bill is not a regulatory measure in the sense of 
imposing Government-established standards or significant 
economic responsibilities on private individuals and 
businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Some additional paperwork may result from the enactment of 
S. 3396, as ordered reported, but the Committee does not expect 
these additional paperwork burdens to be substantial in either 
time or financial cost.

                   Congressionally Directed Spending

    S. 3396, as ordered reported, does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits as defined in rule XLIV of the 
Standing Rules of the Senate.

                        Executive Communications

    The testimony provided by the Department of Energy at the 
June 15, 2010 Subcommittee on Energy hearing on S. 3396 
follows:

Statement of Steven G. Chalk, Chief Operating Officer and Acting Deputy 
 Assistant Secretary for Renewable Energy, Office of Energy Efficiency 
               and Renewable Energy, Department of Energy

    Madam Chairman, Ranking Member Risch, and Members of the 
Subcommittee, thank you for the opportunity to appear before 
you today to discuss proposed clean energy legislation.
    The Department and the Subcommittee share common goals of 
strengthening our economy, enhancing our national security, and 
protecting our environment. As part of the Recovery Act, the 
Office of Energy Efficiency and Renewable Energy (EERE), 
oversees a total of $16.8 billion in investments. To date, EERE 
has obligated 96 percent, or $16.07 billion, of its Recovery 
Act funds. The funds are putting America to work laying the 
foundation for our clean energy future. The Department also 
appreciates the authorities you have provided in recent years 
in the Energy Policy Act of 2005 (EPAct) (P.L. 109-58) and the 
Energy Independence and Security Act of 2007 (EISA) (P.L. 110-
140). This year, the Committee has proposed further investment 
and we thank you for all your hard work in reporting the 
American Clean Energy Leadership Act (S. 1462).
    Today, I am pleased to offer the Department's perspective 
on five pending pieces of legislation related to energy 
efficiency and renewable energy. Note that many of the 
authorities outlined in the bills would simply reinforce 
existing authorities, and may not be necessary for the 
Department to carry out the activities in question. I will 
discuss them in the order listed in the hearing invitation 
letter I received from the Subcommittee. These include the 10 
Million Solar Roofs Act of 2010 (S. 3460), the Supply Star Act 
of 2010 (S. 3396), the Improving Energy Efficiency and 
Renewable Energy Use By Federal Agencies Act of 2010 (S. 3251), 
the Heavy Duty Hybrid Vehicle Research, Development, and 
Demonstration Act (S. 679), the Gas Turbine Efficiency Act of 
2009 (S. 2900).


              s. 3460--10 million solar roofs act of 2010


    We thank the subcommittee and the sponsor of this 
legislation for your strong leadership on solar technologies 
over the years. The Department's goals for solar electric 
technologies are to be cost competitive in their respective 
markets by 2015 and to reach a high penetration of solar 
installations. The Department is investing $232 million in 2010 
to support solar research across the development pipeline, from 
basic photovoltaic (PV) cell technologies to manufacturing 
scaleup to total system development. Within the $232 million, 
DOE is investing up to $50 million in concentrated solar power 
technology development and deployment related activities and 
$23 million to understand how solar technologies can be better 
integrated within existing electricity generation and 
transmission systems. In solar hot water heating, DOE is 
investing approximately an additional $6.5 million in 2010.
    The proposed legislation incorporates several significant 
features. We believe that rebates, loan programs, and 
performance based incentives are all effective means of 
stimulating demand. Allowing states to choose between these 
incentives will enable the Act to expand existing state 
programs that have been effective in promoting solar 
installations. In addition, the states' matching funds 
requirements will leverage available federal appropriations and 
increase the resulting deployment of solar technologies, both 
of which are high priorities for the Department.
    To maximize the effectiveness of the proposed legislation, 
we would recommend two changes. First, while we support the 
state match requirement, we propose that the cost share be set 
at 50 percent to increase the potential leverage of federal 
funds. Second, the Secretary should be given the ability to 
reduce this as necessary to increase the overall effectiveness 
of the program. We also believe the program could be designed 
in a creative way such as working with municipalities to 
promote photovoltaic installations through innovative local 
programs.
    We note that by our estimates, the $250 million authorized 
for FY 2012 would yield roughly 100,000 rooftop solar systems, 
and may not be sufficient to put us on a trajectory to meet the 
goal of 10 million solar roofs. With these changes, the 
legislation could be an effective tool in increasing deployment 
of solar electricity technologies Nationwide. We note that 
existing authorities, such as the competitive portion of the 
state energy program, would allow DOE to undertake such a 
program already.


                    s. 3396--supply star act of 2010


    Supply chain energy efforts can make an important 
contribution to overall industrial efficiency and the 
competitive position of domestic suppliers. Analysis suggests 
that a large part of the carbon footprint for many consumer 
products can be attributed to the supply chain--from raw 
materials, transport, and packaging to the energy consumed in 
manufacturing processes--on the order of 40 to 60 percent\1\.
---------------------------------------------------------------------------
    \1\Source: Climate Change and Supply Chain Management, McKinsey 
Quarterly, McKinsey & Company, July 2008.
---------------------------------------------------------------------------
    The Supply Star legislation seeks to build upon existing 
best practices in the industrial community by establishing a 
voluntary recognition program that supports and promotes 
products and companies with highly energy- and resource-
efficient supply chains.
    DOE and the Environmental Protection Agency (EPA) both have 
existing initiatives that address supply chain efficiency, such 
as Save Energy Now at DOE and the Smart Way 
TransportTM program at EPA. The legislation should 
coordinate with and leverage these programs as a structure 
through which Supply Star activities could be conducted. For 
example, through its national Save Energy Now initiative, DOE 
encourages manufacturing companies to engage their supply 
chains in energy and carbon management. Specifically, DOE 
develops processes and resources to assist companies in 
promoting energy management to their industrial suppliers and 
customers. Save Energy Now LEADER Companies make a voluntary 
commitment to reduce their energy intensity by 25 percent in 10 
years. Many of these companies are interested in improving the 
efficiency of their supply chains as well.
    The Supply Star bill also builds upon Superior Energy 
Performance (SEP), a voluntary certification program working to 
provide industrial facilities with a roadmap for achieving 
continual improvement in energy efficiency while maintaining 
competitiveness. A central element of SEP is implementation of 
the forthcoming International Organization for Standardization 
(ISO) 50001 energy management standard, with additional 
requirements to achieve and document energy intensity 
improvements. DOE is working through SEP to bring ISO 50001 to 
the U.S. Upon its expected publication in 2011 this American 
National Standards Institute-accredited program will provide 
companies with a framework for fostering energy-efficiency at 
the plant level and a consistent methodology for measuring and 
validating energy efficiency and intensity improvements. This 
new framework will be an important tool to integrate into 
supply chain efforts.


   s. 3251--improving energy efficiency and renewable energy use by 
                      federal agencies act of 2010


    On October 5th, President Obama signed Executive Order 
13514 requiring Federal agencies to set GHG emission reduction 
targets, increase energy efficiency, reduce fleet petroleum 
use, conserve water, reduce waste and promote environmentally-
responsible produce purchases by federal agencies. With this 
action, the President directed agencies to demonstrate the 
Federal government's commitment, over and above what is already 
being done, to reducing emissions and saving money.
    As a whole, the Federal government has made significant 
progress in meeting the energy requirements of EISA 2007 and 
EPAct 2005. Further progress on these efforts would be 
bolstered by S. 3251. The Department is particularly supportive 
of provisions clarifying the definition of allowable 
``renewable'' energy sources, and authorizing the creation of a 
revolving fund for Federal facility energy efficiency and 
renewable energy projects.
    The Department looks forward to working with the 
Subcommittee on legislation that would provide agencies with 
the flexibility to purchase renewable energy for appropriate 
time periods, that do not exceed asset life, create appropriate 
risk sharing between project developers and taxpayers, and that 
recognize the importance of fiscal responsibility and 
Congressional Budget Office scoring of contracts. This 
authority would provide opportunities for more on-site 
renewable power at Federal agencies and would provide strong 
support for growing our domestic clean energy economy.
    The Department's recommended definition of renewable energy 
follows the definition in section 203 of EPAct 2005, with an 
additional recommendation to allow for both electric energy and 
thermal energy from renewable sources. It is very important to 
allow thermal energy to count as renewable energy, particularly 
because renewable thermal energy sources such as ground source 
heat pumps are often the lowest-cost option for displacing 
purchased energy and are already widely deployed. This approach 
contrasts with the current definition which is limited only to 
``renewable electricity,'' a definition that reduces incentives 
for this valuable and cost-effective form of renewable power.
    The Department fully supports the creation of a revolving 
loan fund based on best practices and subject to appropriate 
interest rates for Federal facility energy efficiency and 
renewable energy projects. There is considerable experience and 
success at the state and local level with using revolving loan 
funds to assist innovative projects to improve energy 
efficiency. In addition, there is Federal experience with a 
similar concept within the General Services Administration 
(GSA) that funds agency relocations, and agencies reimburse the 
fund at slightly above costs to gradually increase the amount 
of funds available for lending.
    Federal agencies are already responding to the requirements 
of EISA Section 432 to survey their facilities for potential 
energy efficiency and renewable energy upgrades, as well as to 
complete energy audits and to report on measures taken. The 
Department recommends that the renewable energy facility 
surveys called for in S. 3251 Section 5 should be included as a 
modification of EISA Section 432.
    DOE's Federal Energy Management Program is already at work 
implementing provisions similar to the Federal energy 
management and data collection standard called for in S. 3251 
Section 7. As required under EISA Section 432, DOE will publish 
overarching guidance for implementation of all Section 432 
requirements in 2010. The Department is also developing a web-
based tracking system for facility-level energy data and 
identified or implemented energy conservation measures per 
EISA. Tasking the GSA to deploy a similar publicly-available 
resource with facility-level energy data would create 
redundancy as the Department's compliance tracking system will 
be deployed for use by all agencies in July 2010.


     s. 679--heavy duty hybrid vehicle research, development, and 
                           demonstration act


    The program authorized by S. 679 would complement several 
of the Department's current activities focused on increasing 
vehicle energy efficiency. One of those programs is the 
SuperTruck Program, in which DOE is seeking to improve the 
freight hauling efficiency of Class 8 trucks by 50 percent. 
Other complementary efforts underway include: (1) the 
development of hybrid school bus technology; (2) research, 
development, and demonstration of medium-duty utility bucket 
trucks and passenger shuttles using a plug-in hybrid electric 
system; and (3) other medium and heavy duty truck deployment 
activities supported by our Clean Cities program. S. 679 has 
the potential to increase the fuel economy attainable by 
vehicles in this sector.
    There are several technical definitions and reporting 
requirements about which we would like to seek clarification, 
and the Department looks forward to working with the 
subcommittee on those provisions.


              s. 2900--gas turbine efficiency act of 2009


    The Gas Turbine Efficiency Act would establish a research, 
development, and technology demonstration program to improve 
the efficiency of gas turbines used in combined cycle and 
simple cycle power generation systems.
    The Department believes that industry has economic 
incentives to invest in research, development and demonstration 
to increase the efficiency of gas turbines. To the extent that 
the private sector underinvests in basic research, DOE has 
sufficient authority and existing programs to improve high 
temperature materials applicable to a range of energy 
technologies.
    The bill is similar to an existing successful program 
within DOE. The Advanced Turbine Systems Program, a research, 
development and demonstration collaborative between the 
Department's Offices of Energy Efficiency and Renewable Energy 
and Fossil Energy, successfully developed and deployed advanced 
turbine material and coating leading to today's turbine 
efficiencies.
    The legislation outlines activities DOE already performs. 
For example, through its Industries of the Future 
(crosscutting) investments, DOE's Industrial Technology Program 
(ITP) aids the development of advanced manufacturing processes 
for the expanded use of lightweight materials such as titanium. 
Those breakthroughs help to drive production cost down and 
market impact up. In other efforts, ITP promoted advanced 
alloys of steel to support many of the new clean energy 
products being developed today. Nanocoating technologies are 
still another group of innovations developed with the 
assistance of ITP that now extend the life of tooling systems 
and provide wear resistance to reduce the cost of manufacture 
and extend the useful life of products. All of these efforts 
support the overarching objective of reducing the energy 
intensity of Industry to help advance the Administration's 
energy security and environmental performance goals.
    The Department is committed to continuing research of high 
temperature materials which will help industry develop more 
efficient energy technologies. Meanwhile, the private sector 
has economic incentive to invest in the development and 
demonstration of efficient gas turbines. Therefore, private 
sector work on later stages of efficient natural gas turbine 
development and demonstration will likely be conducted without 
the need for additional funding authorizations beyond that 
already in place.
    In conclusion, the Department of Energy thanks the 
Subcommittee for the opportunity to comment on these proposed 
initiatives. We look forward to working with Congress to 
develop strong, effective clean energy policy to ensure U.S. 
leadership on these global issues and in the clean energy 
economy.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 3396, as ordered 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):

                   ENERGY POLICY AND CONSERVATION ACT


   AN ACT To increase domestic energy supplies and availability; to 
  restrain energy demand; to prepare for energy emergencies; and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That this 
Act may be cited as the ``Energy Policy and Conservation Act''.

           *       *       *       *       *       *       *


                 TITLE III--IMPROVING ENERGY EFFICIENCY

                    PART A--AUTOMOTIVE FUEL ECONOMY


 PART B--ENERGY CONSERVATION PROGRAM FOR CONSUMER PRODUCTS OTHER THAN 
AUTOMOBILES

           *       *       *       *       *       *       *



                          ENERGY STAR PROGRAM

    Sec. 324A. (a) In General.--There is established within the 
Department of Energy and the Environmental Protection Agency a 
voluntary program to identify and promote energy-efficient 
products and buildings in order to reduce energy consumption, 
improve energy security, and reduce pollution through voluntary 
labeling of, or other forms of communication about, products 
and buildings that meet the highest energy conservation 
standards.

           *       *       *       *       *       *       *


SEC. 324B. SUPPLY STAR PROGRAM.

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

           *       *       *       *       *       *       *


                                  
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