[House Report 113-371]
[From the U.S. Government Publishing Office]


113th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     113-371

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



 
                      BETTER BUILDINGS ACT OF 2014

                                _______
                                

 February 28, 2014.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Upton, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2126]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 2126) to facilitate better alignment, 
cooperation, and best practices between commercial real estate 
landlords and tenants regarding energy efficiency in buildings, 
and for other purposes, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     4
Background and Need for Legislation..............................     5
Hearings.........................................................     7
Committee Consideration..........................................     7
Committee Votes..................................................     7
Committee Oversight Findings.....................................     7
Statement of General Performance Goals and Objectives............     7
New Budget Authority, Entitlement Authority, and Tax Expenditures     7
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......     7
Committee Cost Estimate..........................................     8
Congressional Budget Office Estimate.............................     8
Federal Mandates Statement.......................................     9
Duplication of Federal Programs..................................     9
Disclosure of Directed Rule Makings..............................     9
Advisory Committee Statement.....................................     9
Applicability to Legislative Branch..............................     9
Section-by-Section Analysis of the Legislation...................     9
Changes in Existing Law Made by the Bill, as Reported............    11

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Better Buildings Act of 2014''.

SEC. 2. 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 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 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 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 leasing provisions and best practices developed under 
        this subsection to State, county, and municipal governments to 
        manage 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. 3. 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. 4. 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 3) is amended by adding at the end the following:

``SEC. 425. TENANT STAR PROGRAM.

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

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

                          Purpose and Summary

    H.R. 2126, the ``Better Buildings Act of 2014,'' was 
introduced by Reps. McKinley (R-WV) and Welch (D-VT) on May 23, 
2013. H.R. 2126 facilitates the ability of landlords and 
tenants to lower energy consumption in commercial buildings 
through a market-driven, voluntary, ``best practices'' 
approach. This bill authorizes the Administrator of the General 
Services Administration (GSA) to consult with the Secretary of 
Energy to develop model leasing provisions and voluntary best 
leasing practices that will align the interests of landlords 
and tenants to achieve greater energy and water efficiency in 
commercial buildings. The bill also directs the Department of 
Energy (DOE) to conduct a study that identifies voluntary best 
practices for commercial building owners and tenants to 
consider when they design and construct new tenant spaces, 
which are rented at the start of a lease and are ``fitted-out'' 
before the tenant takes occupancy. Finally, H.R. 2126 
establishes a ``Tenant Star'' voluntary recognition program 
developed by the Administrator of the Environmental Protection 
Agency (EPA), in consultation with the Secretary of Energy.

                  Background and Need for Legislation

    Owners and managers of large commercial buildings report 
that tenants consume 50 percent or more of their structures' 
total energy.\1\ Therefore, Choices made by office tenants in 
designing and operating within leased spaces have a significant 
impact on U.S. energy consumption. Tenants and building 
occupants have an essential role to play within spaces they 
control to improve overall building efficiency, particularly 
office tenants that use significant amounts of energy, such as 
data centers, banks, trading floors, restaurants, and retail 
stores.
---------------------------------------------------------------------------
    \1\See Natural Resources Defense Council, ``High Performance Tenant 
Demonstration Project,'' available at http://www.nrdc.org/business/cgi/
process.asp; National Association of Real Estate Investment Trusts, 
``Kimco Looks to Lower Retail Tenant Energy Usage,'' (June 2013), 
available at http://www.reit.com/Articles/Kimco-Looks-to-Lower-Retail-
Tenant-Energy-Usage.aspx.
---------------------------------------------------------------------------
    To date, energy efficiency efforts have primarily focused 
on how real estate owners and developers may lower energy 
consumption at the ``whole-building'' level. For example, the 
ENERGY STAR program for commercial ``whole-buildings'' 
administered by EPA is based on ``whole-building'' recognition 
for ``top of the class'' energy performers. The program is a 
voluntary, public-private program, which has improved how real 
estate owners, utilities, governments, and businesses interact 
with their customers to improve energy efficiency in buildings 
and lower energy costs.
    In 2012, more than 20,000 ENERGY STAR certified buildings 
across the United States helped save more than $2.7 billion in 
annual utility bills.\2\ Further, the cumulative number of 
ENERGY STAR certified buildings increased by more than 24 
percent from 2011 to 2012, representing more than 3 billion 
square feet of floor space nationwide. In 2012 alone, more than 
8,200 buildings earned EPA's Energy Star certification.\3\
---------------------------------------------------------------------------
    \2\EPA ENERGY STAR, ``Facts and Stats,'' available at http://
www.energystar.gov/buildings/about-us/facts-and-stats.
    \3\EPA ENERGY STAR, ``Overview of 2012 Achievements,'' available at 
http://www.energystar.gov/ia/partners/publications/pubdocs/ES%20bi-
fold%20031313%20FINAL%20for%20print%20rev.pdf.
---------------------------------------------------------------------------
    In contrast to energy efficiency programs that focus solely 
on the whole building, H.R. 2126 takes into consideration the 
energy consumption impacts and behaviors of office tenants, a 
focus that presently is lacking under existing Federal 
efficiency programs.
    Commercial tenants are most likely to make structural 
investments in the building areas they occupy when they enter 
into new leases, or renew leases. In order to encourage high-
performance design and construction of leased spaces at the 
point of new ``fit-outs'' that suit tenants' needs, H.R. 2126 
directs DOE to study and learn from private sector ``best 
practices'' of how commercially leased spaces are designed ``up 
front'' to (1) achieve high performance, (2) implement cost 
effective measures with viable pay-back periods given lease 
duration, and (3) reduce utility costs for businesses. Based on 
DOE's study, EPA then may develop a voluntary program to reward 
and recognize tenants that design and construct high 
performance leased spaces.
    H.R. 2126 also builds upon the existing ENERGY STAR program 
for whole buildings by establishing a voluntary, market-based 
program by which tenant spaces can be certified as ``Tenant 
Star'' spaces within ENERY STAR whole buildings. Establishing 
recognition opportunities for leased commercial spaces can 
transform how building owners and their tenants think about 
energy efficiency.
    Given that the Federal government is the largest commercial 
office tenant in the United States, the GSA is responsible for 
leasing significant amounts of office space from private 
building owners. With stakeholder input, H.R. 2126 directs GSA 
to develop model leasing provisions to facilitate cooperation 
between Federal tenants and private sector building owners to 
encourage sensible, cost-effective investments in efficiency to 
reduce Federal energy costs. The Committee recognizes the 
connection between education and training for building 
professionals, improved building performance, and energy 
savings.

Supporters of the legislation

    Supporters of the legislation include: Air Barrier 
Association of America, Air Conditioning Contractors of 
America, Alliance to Save Energy, American Chemistry Council, 
American Council for an Energy-Efficient Economy, American 
Gaming Association, American Hotel & Lodging Association, 
American Institute of Architects, American Resort Development 
Association, American Society of Interior Designers (ASID), 
ASHRAE, Association of Energy Engineers (AEE), Bayer 
MaterialScience LLC, Big Ass Fans, Boston Properties, 
Brandywine Realty Trust, Building Owners and Managers 
Association (BOMA) International, CBRE, Inc., CCIM Institute, 
Conservation Services Group, Conservatives for Responsible 
Stewardship, Cree, Inc., Danfoss, DESSC, The Dow Chemical 
Company, Earth Day Network, Efficiency.org, EIFS Industry 
Members Association (EIMA), Empire State Building Company/
Malkin Holdings, Energy Future Coalition, Energy Systems Group, 
Environment America, Environmental and Energy Study Institute, 
First Potomac Realty Trust, Grundfos, Illuminating Engineering 
Society (IES), Interfaith Power & Light, International 
Association of Lighting Designers, Institute for Market 
Transformation, Institute of Real Estate Management, 
International Council of Shopping Centers, International Union 
of Painters and Allied Trades (IUPAT), Johnson Controls, Inc., 
Jones Lang LaSalle, Knauf Insulation, Large Public Power 
Council, LBA Realty, Legrand, LonMark International, Metrus 
Energy, Inc., NAIOP, Commercial Real Estate Development 
Association, National Apartment Association, National 
Association of Energy Service Companies (NAESCO), National 
Association of Home Builders, National Association of Real 
Estate Investment Trusts, National Association of REALTORS, 
National Association of the Remodeling Industry, National 
Association for State Community Services Program, National 
Association of State Energy Officials, National Electrical 
Manufacturers Association, National Fenestration Rating Council 
(NFRC), National Institute of Building Sciences, National 
Insulation Association, National Multi Housing Council, Natural 
Resources Defense Council, National Restaurant Association, 
OpenADR Alliance, Passive House Institute US, Philips, 
Plumbing-Heating-Cooling Contractors--National Association, 
Polyisocyanurate Insulation Manufacturers Association, 
Prologis, Inc., Real Estate Board of New York, Related 
Companies, Rising Realty Partners, Rudin Management Company, 
Inc., Seattle City Light, Sheet Metal and Air Conditioning 
Contractors' National Association, Inc., Shorenstein Properties 
LLC, Siemens Building Technologies, Inc., Sierra Club, Southern 
Oregon Climate Action Now, Spray Polyurethane Foam Alliance 
(SPFA), The Stella Group, Ltd, SUN DAY Campaign, The Real 
Estate Roundtable, The Stella Group, Ltd., Tishman Speyer, 
Transwestern, U.S. Green Building Council, USAA Real Estate 
Co., Vinyl Siding Institute, Vornado Realty Trust, and Window 
and Door Manufacturers Association.

                                Hearings

    The Committee on Energy and Commerce has not held hearings 
on H.R. 2126.

                        Committee Consideration

    On January 27 and 28, 2014, the Committee on Energy and 
Commerce met in open markup session. During the markup, an 
amendment in the nature of a substitute was offered and adopted 
by a voice vote. Mr. McNerney (D-CA) offered an amendment to 
the amendment in the nature of a substitute, which was adopted 
by a voice vote. The Committee ordered H.R. 2126 favorably 
reported, by a voice vote, to the House of Representatives, as 
amended.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. 
There were no record votes taken in connection with ordering 
H.R. 2126 reported. A motion by Mr. Upton to order H.R. 2126 
reported to the House, as amended, was agreed to by a voice 
vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee made findings that are 
reflected in this report.

         Statement of General Performance Goals and Objectives

    H.R. 2126 facilitates the ability of landlords and tenants 
to lower energy consumption in commercial buildings through a 
market-driven, voluntary, ``best practices'' approach.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
2126, would result in no new or increased budget authority, 
entitlement authority, or tax expenditures or revenues.

       Earmark, Limited Tax Benefits, and Limited Tariff Benefits

    In compliance with clause 9(e), 9(f), and 9(g) of rule XXI 
of the Rules of the House of Representatives, the Committee 
finds that H.R. 2126 contains no earmarks, limited tax 
benefits, or limited tariff benefits.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, February 20, 2014.
Hon. Fred Upton,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2126, the Better 
Buildings Act of 2014.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                         Robert A. Sunshine
                              (For Douglas W. Elmendorf, Director).
    Enclosure.

H.R. 2126--Better Buildings Act of 2014

    H.R. 2126 would amend federal law aimed at improving the 
energy efficiency of commercial office buildings. The 
legislation would require the General Services Administration 
(GSA) to develop model leasing provisions to encourage energy 
efficiency in privately owned buildings with federal tenants. 
The bill also would establish a program similar to the 
Environmental Protection Agency's Energy Star program to 
promote energy efficiency in buildings leased to the federal 
government. Finally, the bill would require the Department of 
Energy (DOE) to prepare a report to the Congress on energy 
efficiency in commercial buildings.
    Since the 1970s, many laws and policies have been enacted 
to reduce energy consumption. According to the GSA, most of the 
provisions of the bill are broadly consistent with existing law 
and practices. As a result, CBO does not expect that enacting 
H.R. 2126 would significantly affect agencies' administrative 
costs or result in significant additional investments by the 
federal government in energy savings initiatives. Optimizing 
the use of energy conservation measures in buildings leased by 
the government could eventually reduce federal spending by 
lowering occupancy costs, but CBO does not expect agencies 
would realize any significant savings from such efforts during 
the next few years. Enacting the bill would not affect direct 
spending or revenues; therefore, pay-as-you-go procedures do 
not apply.
    H.R. 2126 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    The CBO staff contact for this estimate is Matthew 
Pickford. This estimate was approved by Theresa Gullo, Deputy 
Assistant Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                    Duplication of Federal Programs

    No provision of H.R. 2126 establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    The Committee estimates that enacting H.R. 2126 
specifically directs no rule makings within the meaning of 5 
U.S.C. 551 to be completed.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section provides the short title of the ``Better 
Buildings Act of 2013.''

Section 2. Energy efficiency in Federal and other buildings

    This section directs the U.S. General Services 
Administration (GSA) Administrator to consult with the 
Secretary of Energy to develop model leasing provisions and 
voluntary best leasing practices that align the interests of 
landlords and tenants to achieve greater energy and water 
efficiency in commercial buildings.
    Section 2(a) defines ``cost-effective energy efficiency 
measure'' and ``cost-effective water efficiency measure'' as 
any building product, material, or equipment that pays for 
itself through energy or water savings.
    Section 2(b) directs the GSA Administrator to consult with 
the Secretary of Energy to develop model leasing provisions and 
best leasing practices. These provisions and practices shall be 
developed with public input and no later than six months after 
enactment of the Act. The purpose of these provisions and 
practices is to assist building owners and their tenants in 
making decisions about cost effective investments in energy and 
water efficiency measures.
     Any model provisions may be used by the GSA in 
standard Federal leasing documents.
     The model leasing provisions shall be published 
periodically with explanatory materials to encourage their use 
by private sector commercial building owners and tenants.
     The realty services provided by GSA to Federal 
agency clients shall include periodic training of Federal 
employees and contractors to identify and evaluate energy and 
water efficiency measures during Federal leasing activities.
     The model leasing provisions shall be made 
available to State, municipal, and local government entities 
that own, manage, and lease buildings, to encourage those 
landlords and tenants to invest in cost-effective energy and 
water efficiency measures.

Section 3. Separate spaces with high-performance energy efficiency 
        measures

    This section directs the DOE to conduct a study that 
identifies voluntary best practices for commercial building 
owners and tenants to consider in designing and constructing 
new tenant spaces, which are rented at the start of a lease and 
are ``fitted-out'' before the tenant takes occupancy.
    Section 3(a) contains the following definitions:
     ``High-performance energy efficiency measure'' 
means a building technology, product, or practice that results 
in substantial savings by reducing energy consumption and 
lowering utility bills.
     ``Separate spaces'' means areas within a 
commercial building that are leased or otherwise occupied by a 
tenant, pursuant to the terms and conditions of a lease 
agreement.
    Section 3(b) directs the Secretary of Energy, within one 
year after enactment of the section, to complete a study on the 
feasibility of improving energy efficiency in commercial 
buildings through the design and construction of separate 
spaces with high-performance energy efficiency measures. Among 
other things, the scope of the study shall include descriptions 
of processes that owners, tenants, architects, and engineers 
may replicate when designing and constructing high-performance 
tenant spaces; policies and best practices to achieve energy 
intensities for lighting, plug loads, cooking, and other 
systems that satisfy commercial tenants' needs; return on 
investment and payback analyses of the costs of high-
performance energy efficiency measures that may be installed in 
separate spaces and their projected energy savings; and best 
practices that encourage design and construction of separate 
spaces at optimum energy efficiency to interact with a 
commercial building's central systems. The study also shall 
include case studies reporting economic and energy savings 
returns in the design and construction phase of high-
performance separate spaces.

Section 4. Tenant Star program

    This section establishes a ``Tenant Star'' voluntary 
recognition program developed by the EPA Administrator, in 
consultation with the Secretary of Energy.
    Section 4(a) incorporates the same definitions from section 
3(a) for ``high-performance energy efficiency measure'' and 
``separate spaces.''
    Section 4(b) authorizes the development of the ``Tenant 
Star'' program within the existing ``Energy Star'' voluntary 
recognition program currently administered by EPA. The purpose 
of the ``Tenant Star'' recognition program is to promote energy 
efficiency in separate spaces leased by tenants in commercial 
buildings.
    Section 4(c) directs that the current Commercial Building 
Energy Consumption Survey (CBECS), a data-gathering program 
administered by DOE's Energy Information Administration (EIA), 
collect data on categories of building occupants that are known 
to consume significant quantities of energy (e.g., data 
centers, trading floors, and restaurants). Such tenant-based 
data collected through CBECS shall be used to provide baseline 
information for the ``Tenant Star'' recognition program. 
Section 4(c)(2) acknowledges that it may not be feasible for 
EIA to collect all of the necessary data in the first CBECS 
conducted after the date of enactment of this section.
    Section 4(d) establishes two voluntary programs, developed 
by EPA after sufficient data is available with comments from 
the public, to recognize high energy efficiency practices and 
performance of commercial building tenants.
     The first is ``occupancy'' based, where EPA 
provides recognition to tenants that voluntarily achieve high 
levels of energy efficiency while they occupy leased spaces. 
This occupancy-based recognition for high-performance separate 
spaces shall be based on EPA's current ``Energy Star'' rating 
for energy efficient whole buildings.
     The second is ``design'' based, where EPA (in 
consultation with DOE) may recognize commercial building owners 
and tenants that use high-performance energy efficiency 
measures at the start of lease terms when new spaces are 
``fitted-out'' prior to occupancy. This program may be 
established after the study on high-performance design and 
construction of leased spaces authorized in section 3 is 
completed.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

              ENERGY INDEPENDENCE AND SECURITY ACT OF 2007

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) * * *
  (b) Table of Contents.--The table of contents of this Act is 
as follows:

Sec. 1. Short title; table of contents.
     * * * * * * *

           TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY

     * * * * * * *
Subtitle B--High-Performance Commercial Buildings
     * * * * * * *
Sec. 424. Separate spaces with high-performance energy efficiency 
          measures.
Sec. 425. Tenant Star program.
     * * * * * * *



           TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY



     * * * * * * *



            Subtitle B--High-Performance Commercial Buildings



     * * * * * * *

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.

SEC. 425. TENANT STAR PROGRAM.

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

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