[Senate Report 113-37]
[From the U.S. Government Publishing Office]


                                                        Calendar No. 70
113th Congress                                                   Report
                                 SENATE
 1st Session                                                     113-37

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



 
             ENERGY SAVINGS AND INDUSTRIAL COMPETITIVENESS

                                _______
                                

                  June 3, 2013.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 761]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 761) to promote energy savings in 
residential and commercial buildings and industry, and for 
other purposes, having considered the same, reports favorably 
thereon with amendments and recommends that the bill, as 
amended, do pass.
    The amendments are as follows:

    1. On page 2, before line 1, strike the items relating to 
title V and insert the following:

                         TITLE V--MISCELLANEOUS

      Sec. 501. Offset.
      Sec. 502. Budgetary effects.
      Sec. 503. Advance appropriations required.

    2. On page 23, lines 3 and 4, strike ``this section'' and 
insert ``section 304''.
    3. Beginning on page 25, strike line 4 and all that follows 
through page 29, line 22, and insert the following:

SEC. 201. PRIVATE COMMERCIAL BUILDING EFFICIENCY FINANCING.

  (a) In General.--The Secretary shall establish a program to 
be known as the ``Commercial Building Energy Efficiency 
Financing Initiative'' under which the Secretary shall provide 
grants to States (as defined in section 3 of the Energy Policy 
and Conservation Act (42 U.S.C. 6202)) to establish or expand 
programs to promote the financing of energy efficiency retrofit 
projects for private sector and commercial buildings.
  (b) Applications.--A State may apply to the Secretary for a 
grant under subsection (a) to establish or expand a program 
described in subsection (a), including--
          (1) a commercial Property Assessed Clean Energy 
        (PACE) financing program;
          (2) a credit enhancement structure that is designed 
        to mitigate the effects of default, including a loan 
        guarantee program, loan loss reserve program, 
        collateral or subordinated capital program, or other 
        program;
          (3) a revolving loan fund;
          (4) a program to promote the use of energy savings 
        performance contracts or utility energy service 
        contracts, or both;
          (5) a utility on-bill financing or repayment program;
          (6) utility energy efficiency programs for all 
        segments of the utility industry;
          (7) an interest buy-down program;
          (8) a secondary market financing program;
          (9) a leasing structure that recognizes energy costs 
        and addresses split-incentives;
          (10) an educational program involving commercial 
        lenders, energy service companies, commercial building 
        owners, and other stakeholders established--
                  (A) to provide information to the community 
                regarding program and project options and 
                outcomes; and
                  (B) to build consensus on approaches to 
                greater energy efficiency investments; and
          (11) any other activity that will significantly 
        increase the total investment in, and energy savings 
        from, building retrofit projects and programs.
  (c) Administration.--
          (1) In general.--A State receiving a grant under 
        subsection (a) shall give a higher priority to programs 
        and projects that--
                  (A) leverage private and non-Federal sources 
                of funding; and
                  (B) aim explicitly to expand the use of 
                energy efficiency project financing using 
                private sources of funding, including 
                philanthropic and other institutional 
                investment.
          (2) Other actions.--A State receiving a grant under 
        this section is encouraged--
                  (A) to consider establishing such other 
                appropriate policies, incentives, or actions 
                that will advance the purposes of this section; 
                and
                  (B) to coordinate the activities described in 
                subsections (a) and (d).
  (d) Large Commercial Building Efficiency Financing 
Initiatives.--
          (1) In general.--As part of this section, the 
        Secretary shall conduct large commercial building 
        efficiency financing initiatives to encourage States to 
        promote the financing of energy efficiency retrofit 
        projects for larger private sector commercial, 
        multifamily, and mixed use buildings.
          (2) Applications.--A State or a group of States may 
        apply to the Secretary for a grant under this 
        subsection to establish or expand programs to promote 
        the purposes described in paragraph (1) through--
                  (A) the facilitation of energy performance 
                contracts in commercial, multifamily, and mixed 
                use buildings by providing guarantees that 
                cover owner default risk, but do not cover 
                technology and other risks that are borne by 
                the contractor;
                  (B) actions by States to work together and 
                with real estate owners, financiers, and other 
                stakeholders to ensure multistate consistency, 
                including common underwriting standards;
                  (C) minimum loan-to-value ratios;
                  (D) minimum debt-to-income coverage ratios;
                  (E) a green leasing program;
                  (F) a commercial Property Assessed Clean 
                Energy (PACE) financing program; and
                  (G) any other activity that will 
                significantly increase the total investment in, 
                and energy savings from, building retrofit 
                projects and programs.
          (3) Leveraging private sector financing.--A State 
        receiving a grant under this subsection shall focus on 
        leveraging private sources of funds and working with 
        real estate lenders, financiers, and building owners to 
        assist in expanding the reach of the program 
        established under this subsection.
          (4) Multistate facilitation.--The Secretary shall 
        consult with States and relevant stakeholders with 
        applicable expertise to establish a process to identify 
        eligible lenders, financiers, and building owners with 
        real estate asset portfolios across multiple States 
        that may be eligible for the efficiency financing 
        initiatives conducted under this subsection.
  (e) Evaluation of Programs.--The Secretary shall evaluate 
applications from States under this section on the basis of--
          (1) the likelihood that a proposed program or 
        activity will--
                  (A) be established or expanded;
                  (B) increase the total investment and energy 
                savings of the retrofit projects to be 
                supported; and
                  (C) increase the total investment and energy 
                savings in a State or region in which 
                investments and energy savings have the 
                greatest potential for growth as compared to 
                other States or regions;
          (2) in the case of large commercial building 
        efficiency financing initiatives conducted under 
        subsection (d), evidence of multistate cooperation and 
        coordination with real estate lenders, financiers, and 
        owners; and
          (3) other factors that will advance the purposes of 
        this section, as determined by the Secretary.
  (f) Reports.--
          (1) In general.--Not later than 2 years after the 
        date of the receipt of a grant under this section, a 
        State shall submit to the Secretary, the Committee on 
        Energy and Natural Resources of the Senate, and the 
        Committee on Energy and Commerce of the House of 
        Representatives a report on the performance of programs 
        and activities carried out with the grant.
          (2) Data.--
                  (A) In general.--A State receiving a grant 
                under this section and the Secretary shall 
                cooperate to collect and share data resulting 
                from programs and activities carried out under 
                this section.
                  (B) Department databases.--The Secretary 
                shall incorporate data described in 
                subparagraph (A) into appropriate databases of 
                the Department of Energy, with provisions for 
                the protection of confidential business data.
  (g) Funding.--
          (1) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this section 
        $250,000,000, to remain available until expended.
          (2) Allocation.--Of the amount made available for a 
        fiscal year under paragraph (1)--
                  (A) 50 percent of the amount shall be 
                allocated on a formula-basis that is consistent 
                with the formula used to allocate funds for 
                State energy conservation programs established 
                under part D of title III of the Energy Policy 
                and Conservation Act (42 U.S.C. 6321 et seq.), 
                as determined by the Secretary; and
                  (B) 50 percent of the amount shall be 
                allocated to large commercial building 
                financing initiatives conducted under 
                subsection (d), with no individual State 
                receiving more than 10 percent of the amount 
                made available for a fiscal year under this 
                subparagraph.
          (3) State energy offices.--Funds provided to a State 
        under this section shall be provided to the office 
        within the State that is responsible for developing the 
        State energy plan for the State under part D of title 
        III of the Energy Policy and Conservation Act (42 
        U.S.C. 6321 et seq.).
          (4) Loans.--No funds made available under this 
        section may be used to provide direct Federal loans for 
        purposes of any of the programs or activities described 
        in subsection (b).

    4. Beginning on page 31, line 22, strike ``Centers'' and 
all that follows through ``Section'' on page 32, line 1, and 
insert ``Centers.--Section''.
    5. On page 32, lines 4 through 19, redesignate 
subparagraphs (A) through (D) as paragraphs (1) through (4), 
respectively, and indent appropriately.
    6. On page 32, line 11, strike ``subparagraph (A)'' and 
insert ``paragraph (1)''.
    7. On page 37, line 15, strike ``2108,'' and insert ``2108 
of this Act and''.
    8. On page 44, between lines 14 and 15, insert the 
following:

  (e) Termination of Effectiveness.--The authority provided by 
this section terminates effective December 31, 2015.

    9. On page 45, line 2, insert ``operation and maintenance 
processes,'' after ``hardware,''.
    10. Beginning on page 46, strike line 14 and all that 
follows through page 47, line 4, and insert the following:

SEC. 403. NATURAL GAS AND ELECTRIC VEHICLE INFRASTRUCTURE.

  (a) Utility Incentive Programs.--Section 546(c)(1) of the 
National Energy Conservation Policy Act (42 U.S.C. 8256(c)(1)) 
is amended by inserting ``(including measures to support the 
use of natural gas vehicles and electric vehicles or the 
fueling or charging infrastructure necessary for natural gas 
vehicles and electric vehicles)'' after ``demand''.
  (b) Energy Savings Performance Contracts.--Section 804(4) of 
the National Energy Conservation Policy Act (42 U.S.C. 
8287c(4)) is amended--
          (1) in subparagraph (A), by striking ``or'' after the 
        semicolon;
          (2) in subparagraph (B), by striking the period at 
        the end and inserting ``; or''; and
          (3) by adding at the end the following:
                  ``(C) a measure to support the use of natural 
                gas vehicles and electric vehicles or the 
                fueling or charging infrastructure necessary 
                for natural gas vehicles and electric vehicles, 
                including the use of utility energy service 
                contracts to support those vehicles or 
                infrastructure.''.

    11. On page 47, between lines 16 and 17, insert the 
following:

SEC. 501. OFFSET.

  Section 422(f) of the Energy Independence and Security Act of 
2007 (42 U.S.C. 17082(f)) is amended--
          (1) in paragraph (3), by striking ``and'' after the 
        semicolon at the end; and
          (2) by striking paragraph (4) and inserting the 
        following:
          ``(4) $200,000,000 for fiscal year 2013;
          ``(5) $130,000,000 for fiscal year 2014; and
          ``(6) $100,000,000 for each of fiscal years 2015 
        through 2017.''.

    12. On page 47, line 17, strike ``501'' and insert ``502''.
    13. On page 48, line 1, strike ``502'' and insert ``503''.

                                Purpose

    The purpose of S. 761 is to promote energy savings in 
residential and commercial buildings and industry, and in 
Federal, State, local, and Tribal governments.

                          Background and Need

    Since the 1973 oil embargo, and in every subsequent energy 
crisis, studies have shown that the United States could save 
energy and money by investing in energy efficiency. Today, 
efficient energy use and deployment of more efficient 
technologies are critical to domestic economic competitiveness 
and job creation. In addition, efficient energy use reduces 
pollution associated with energy production. Nevertheless, many 
existing cost-effective energy efficiency technologies and 
programs have not been installed or implemented.
    A National Academy of Sciences study released in 2010, Real 
Prospects for Energy Efficiency in the United States, on the 
potential for energy efficiency in commercial and residential 
buildings, transportation, and manufacturing, found that 
greater deployment of commercially available energy efficiency 
technologies could more than offset the Energy Information 
Administration's projected increases in U.S. energy consumption 
through 2030.
    The Energy Savings and Industrial Competitiveness Act of 
2013 sets out a national strategy to increase the use of energy 
efficiency technologies in the residential, commercial, 
federal, and industrial sectors of our economy. The legislation 
uses a variety of low-cost tools to reduce barriers for private 
sector efficiency investments and to drive the adoption of 
commercially available technologies that will reduce energy 
costs for individual consumers and businesses, make the U.S. 
more energy independent, our economy more competitive, and 
reduce environmental impacts.
    In 2011, residential and commercial buildings used 41 
percent of the nation's energy, and the Federal Government is 
the largest single energy consumer in the United States. S. 761 
targets these three sectors for energy efficiency improvements 
that will contribute to economic growth throughout the country.

                          Legislative History

    S. 761 was introduced on April 18, 2013, by Senators 
Shaheen and Portman. Senators Ayotte, Collins, Coons, and 
Warner are cosponsors. The Committee on Energy and Natural 
Resources held a legislative hearing on April 23, 2013, and the 
bill was ordered favorably reported with amendments on May 8, 
2013.
    The Committee considered similar legislation, S. 1000, 
during the 112th Congress. S. 1000 was introduced by Senators 
Shaheen and Portman on May 16, 2011, heard by the Committee on 
Energy and Natural Resources on June 9, 2011 (S. Hrg. 112-273), 
and reported favorably on September 6, 2011 (S. Rept. 112-71).

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on May 8, 2013, by voice vote of a quorum 
present recommends that the Senate pass S. 761, if amended as 
described herein. Senators Lee, Flake, and Scott asked to be 
recorded as voting no.

                          Committee Amendments

    During its consideration of S. 761, the Committee approved 
13 perfecting amendments offered by Senator Portman.
    The first amendment makes conforming changes to the table 
of contents in section 1(b).
    The second amends section 307 of the Energy Conservation 
and Production Act to clarify that any model building code or 
standards established under section 304 are voluntary and not 
binding on a State, local government, or Indian tribe as a 
matter of federal law.
    The third amends section 201 of the bill to include a large 
commercial and multifamily building efficiency financing 
initiative for the states.
    The fourth, fifth, and sixth are clerical amendments that 
re-designate subparagraphs of section 302 of the bill as 
paragraphs.
    The seventh is a technical correction to the citation of 
section numbers in other laws.
    The eighth terminates the energy efficient transformer 
rebate program in section 331 of the bill.
    The ninth adds ``operation and maintenance processes'' to 
the list of energy-saving information and communications 
technologies to be employed by Federal agencies under section 
401(a) of the bill.
    The tenth amends section 403 of the bill to clarify that 
Federal agencies are authorized to use both Energy Service 
Performance Contracts (ESPCs) and Utility Energy Service 
Contracts (UESCs) to install electric and natural gas vehicle 
charging infrastructure.
    The eleventh adds a new section 501 that offsets the 
authorization of the appropriations authorized by the bill by 
reducing the authorization of appropriations for the Zero-Net-
Energy Commercial Buildings Initiative authorized by section 
422(f) of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17082(f)).
    The twelfth and thirteenth re-numbers sections 501 and 502 
as 502 and 503.

                      Section-by-Section Analysis


                           TITLE I--BUILDINGS

Subtitle A--Building energy codes

    Section 101(a) amends section 303 of the Energy 
Conservation and Production Act (ECPA) (42 U.S.C. 6832) to add 
three new definitions.
    Section 101(b) amends section 304 of ECPA (42 U.S.C. 6833), 
relating to state building energy efficiency codes.
    ECPA section 304(a), as amended, directs the Secretary of 
Energy to encourage and support the adoption of building energy 
codes by States, Indian tribes, and local governments that meet 
or exceed the model building energy codes, and to support full 
compliance with these codes.
    ECPA section 304(b)(1), as amended, requires that not later 
than 2 years after the date on which a model building energy 
code is updated, each State or Indian tribe shall certify 
whether or not it has updated the energy provisions of their 
building code. This certification shall include a demonstration 
of whether the codes meet or exceed the savings of the updated 
model code or the targets established under section 307(b)(2). 
If a model code is not updated by a target date established 
under section 307(b)(2)(D), each State or Indian tribe shall, 
not later than 2 years after the specified date, certify 
whether or not they have reviewed and updated their codes to 
meet or exceed the target in section 307(b)(2).
    ECPA section 304(b)(2), as amended, requires that, not 
later than 90 days after a State or Indian tribe certification 
under paragraph (1), the Secretary shall determine whether 
their code provisions meet the criteria specified in paragraph 
(1) and, if the determination is positive, validate the 
certification.
    ECPA section 304(c), as amended, requires that, not later 
than 3 years after the date of a certification under subsection 
(b), each State and Indian tribe shall certify whether or not 
they have achieved compliance with the applicable building 
energy code or made significant progress toward achieving 
compliance. If the State or Indian tribe certifies progress 
toward achieving compliance, they shall repeat the 
certification until they certify compliance. A State or Indian 
tribe shall be considered to have achieved full compliance if 
at least 90 percent of building space covered by the code in 
the preceding year substantially meets or exceeds all the 
requirements of the applicable code specified, or the estimated 
excess energy use of buildings that did not meet the applicable 
code specified in the preceding year, compared to a baseline of 
comparable buildings that meet this code, is not more than 5 
percent of the estimated energy use of all buildings covered by 
this code during the preceding year. A State or Indian tribe 
shall be considered to have made significant progress toward 
achieving compliance if the State or Indian tribe has developed 
and is implementing a plan for achieving compliance during the 
8-year-period beginning on the date of enactment, including 
annual targets for compliance and active training and 
enforcement programs; and has met the most recent target.
    A certification shall include documentation of the rate of 
compliance based on independent inspections of a random sample 
of the buildings covered by the code in the preceding year, or 
an alternative accurate method. Not later than 90 days after a 
State or Indian tribe certification of compliance, the 
Secretary shall determine whether they are in compliance, 
including accurate measurement, and if so, validate the 
certification.
    ECPA section 304(d), as amended, requires that a State or 
Indian tribe that has not made a timely certification under (b) 
or (c) shall submit a report on their status and a plan for 
meeting the requirements and submitting the certification. For 
any State or Indian tribe for which the Secretary has not 
certified compliance, the lack of certification may be a 
consideration for Federal support authorized under this 
section. In any State or Indian tribe for which the Secretary 
has not certified compliance, a local government may be 
eligible for Federal support by meeting the certification 
requirements. The Secretary shall submit an annual report to 
Congress on: the status of model building energy codes; the 
status of code adoption and compliance in the States and Indian 
tribes; implementation of this section; and improvements in 
energy savings. The report shall also include estimates of 
impacts of past action and potential impacts of further action 
on: upfront financial and construction costs; cost benefits and 
returns; and lifetime energy use for buildings; resulting 
energy costs to individuals and businesses; and resulting 
overall annual building ownership and operating costs.
    ECPA section 304(e) and (f), as amended, requires the 
Secretary to provide technical assistance and incentive funding 
to States and Indian tribes to implement this section. 
Additional funding shall also be provided to States, Indian 
Tribes, or local governments to achieve and document full 
compliance with residential and commercial building energy 
codes, a portion of this funding may be used by the State for 
training purposes.
    ECPA section 304(g), as amended, requires the Secretary to 
provide technical and financial support for the development of 
stretch codes, advanced standards and targets for residential 
and commercial buildings as an option for building energy codes 
and guidelines for efficient building design.
    ECPA section 304(h), as amended, requires the Secretary to 
do a study of: code improvements so that, in the future, 
buildings might become zero-net-energy after initial 
construction; code procedures to incorporate measured lifetime 
energy use; and legislative options for increasing energy 
savings from building energy codes.
    ECPA section 304(i) and (j), as amended, state that nothing 
in this section or section 307 supersedes or modifies the 
application of sections 321 through 346 of the EPCA, and that 
$200,000,000 is authorized to be appropriated to carry out this 
section and section 307.
    Section 101(c) amends section 305 of the Energy 
Conservation and Production Act (ECPA) (42 U.S.C. 6834) by 
striking ``voluntary building energy code'' each place it 
appears in subsections (a)(2)(B) and (b) and inserting ``model 
building energy code''.
    Section 101(d) amends section 307 of the ECPA (42 U.S.C. 
6836) regarding model building energy codes.
    ECPA section 307(a) and (b), as amended, directs the 
Secretary to support the updating of model building energy 
codes to achieve aggregate energy savings targets. The 
Secretary shall work with State, Indian tribes, local 
governments, nationally recognized code and standards 
developers, and others to support the updating of model 
building energy codes by establishing one or more aggregate 
energy savings targets using a baseline code of 2009 IECC for 
residential buildings and ASHRAE Standard 90.1-2010 for 
commercial buildings. The Secretary may establish separate 
targets for commercial and residential buildings. Targets for 
specific years shall be established and revised by the 
Secretary through rulemaking at the maximum level that is 
technologically feasible and life-cycle cost effective, while 
accounting for specified economic considerations, including a 
return on investment analysis. Initial targets shall be 
established no later than 1 year after the date of enactment 
and the Secretary may set later target years if the Secretary 
determines that a target cannot be met. When establishing 
targets the Secretary shall comply with the Small Business 
Regulatory Enforcement Fairness Act of 1996. Finally, the 
Secretary shall develop and adjust targets in recognition of 
savings and costs relating to efficiency gains made in 
appliances, lighting, windows, insulation, and building 
envelope sealing; advancement of distributed generation and on-
site renewable power generation technologies; equipment 
improvements for heating, cooling, and ventilation systems; 
building management systems and SmartGrid technologies to 
reduce energy use; and other factors the Secretary considers 
appropriate.
    ECPA section 307(c), as amended, directs the Secretary to 
provide technical assistance to model building energy code-
setting and standard development organizations. The Secretary 
may submit code amendment proposals to such organizations to 
enable the codes to meet the targets and the Secretary shall 
make publicly available the entire calculation methodology used 
to estimate the energy savings of codes, standard proposals and 
revisions.
    ECPA section 307(d), as amended, provides that if the IECC 
or ASHRAE 90.1 building energy codes are revised, then the 
Secretary shall make a preliminary determination not later than 
90 days after the date of the revision, and a final 
determination not later than 15 months after the date of the 
revision, on whether or not the revision will improve building 
efficiency compared to the existing code and meet the targets 
under subsection (b)(2). If the Secretary makes a preliminary 
determination that a code or standard does not meet the targets 
under subsection (b)(2), then the Secretary may provide the 
code or standard developer with proposed changes that would 
result in a code that meets the targets. On receipt of these 
proposed changes, the code or standard developer shall have an 
additional 270 days to accept or reject the proposed changes to 
the code or standard and for the Secretary to make a final 
determination.
    ECPA section 307(e), as amended, provides that, in carrying 
out this section, the Secretary shall publish notice of targets 
and supporting analysis in the Federal Register and shall 
provide an opportunity for public comment.
    ECPA section 307(f), as amended, states that 
notwithstanding any other provision of this section, any model 
building code or standard established under section 304 shall 
not be binding on a State, local government, or Indian tribe as 
a matter of Federal law.

Subtitle B--Worker training and capacity building

    Section 111(a) directs the Secretary to provide grants to 
institutions of higher education and Tribal Colleges or 
Universities to establish building training and assessment 
centers to: identify opportunities for optimizing efficiency 
and environmental performance in buildings; promote the 
application of emerging concepts and technologies in commercial 
and institutional buildings; train building professionals; 
assist institutions of higher education and Tribal Colleges or 
Universities in training building technicians; promote research 
and development for the use of alternative energy and 
distributed generation to supply heat and power for buildings; 
and to coordinate with and assist State-accredited technical 
training centers, community colleges, Tribal Colleges or 
Universities, and local offices of the National Institute of 
Food and Agriculture and ensure appropriate services are 
provided under this section to each region of the United 
States.
    Section 111(b) directs the Secretary to coordinate this 
program with the industrial research and assessment centers 
program and with other Federal programs to avoid duplication of 
effort, and to the maximum extent practicable, collocate 
building, training, and assessment centers under this section 
with Industrial Assessment Centers.

       TITLE II--PRIVATE COMMERCIAL BUILDING EFFICIENCY FINANCING

    Section 201(a) directs the Secretary to establish the 
``Commercial Building Energy Efficiency Financing Initiative'' 
under which the Secretary shall provide grants to States to 
establish or expand programs to promote the financing of energy 
efficiency retrofit projects for private sector commercial 
buildings.
    Section 201(b) provides that a State may apply to the 
Secretary for a grant to establish or expand a program 
described in (a) that would significantly increase the total 
investment in, and energy savings from, commercial building 
retrofit projects and programs.
    Section 201(c) provides that a State receiving a grant 
under subsection (a) shall give a higher priority to programs 
and projects that leverage private and non-Federal sources of 
funding and that aim to expand the use of private funding 
including philanthropic and other institutional investment. 
Additionally, a State receiving a grant under this section is 
encouraged to consider establishing other appropriate policies, 
incentives, or actions that will advance the purposes of this 
section, and to coordinate the activities described in 
subsections (a) and (d).
    Section 201(d) provides that as a part of this section, the 
Secretary shall conduct large commercial building efficiency 
financing initiatives to encourage States to promote the 
financing of energy efficiency retrofit projects for larger 
private sector commercial, multi-family, and mixed use 
buildings. A State or a group of States may apply to the 
Secretary for a grant under this subsection to promote the 
purposes of this subsection through: energy performance 
contracts that cover owner default risk; actions by States to 
work together and with real estate owners, financiers, and 
other stakeholders to ensure multistate consistency; and other 
activities to increase investment and energy savings. 
Additionally, a State receiving a grant under this subsection 
shall leverage private funds and work with real estate lenders, 
financiers, and building owners to expand the reach of the 
program. Finally, the subsection requires the Secretary to 
consult with States and other relevant stakeholders to 
establish a process to identify eligible lenders, financiers, 
and building owners with real estate asset portfolios located 
in multiple States that may be eligible for financing 
initiatives under this subsection.
    Section 201(e) provides that the Secretary shall evaluate 
applications from States under this section on the basis of the 
likelihood that a proposed program or activity will be 
established or expanded; increase the total investment and 
energy savings of the retrofit projects to be supported; in the 
case of large commercial building efficiency financing 
initiatives conducted under subsection (d), evidence of 
multistate cooperation and coordination among real estate 
lenders, financiers and owners; and other factors that will 
advance the purposes of this section.
    Section 201(f) provides that not later than 2 years after 
receipt of a grant under this section, a State shall submit to 
the Secretary and to committees of Congress a report on the 
performance of activities carried out with the grant. 
Additionally, the subsection requires that a State receiving a 
grant and the Secretary shall cooperate to collect and share 
data resulting from programs and activities under this section, 
and that the Secretary shall incorporate this information, with 
provisions for the protection of confidential business data, 
into appropriate databases of the Department.
    Section 201(g) provides an authorization for appropriations 
of $250,000,000, to remain available until expended. Of the 
amount made available for any fiscal year, 50 percent shall be 
allocated on a formula-basis consistent with the allocation 
formula for State energy conservation programs established 
under part D of title III of EPCA (42 U.S.C. 6321 et seq.), and 
50 percent shall be allocated to large commercial building 
financing initiatives conducted under subsection (d), with no 
individual State receiving more than 10 percent of the 
available amount. Additionally, funds provided to a State under 
this section shall be provided to the office within the State 
that is responsible for developing the State energy plan for 
the State under part D of title III of the EPCA and no funds 
made available may be used to provide direct Federal loans.

          TITLE III--INDUSTRIAL EFFICIENCY AND COMPETITIVENESS

Subtitle A--Manufacturing energy efficiency

    Section 301 provides that the purposes of this subtitle are 
to reform and reorient the industrial efficiency programs of 
the Department of Energy; establish a clear and consistent 
authority for industrial efficiency programs at the Department; 
accelerate the demonstration and deployment of efficiency 
technologies; stimulate domestic economic growth and strengthen 
public-private partnerships.
    Section 302(a) and (b) amends section 452 of the Energy 
Independence and Security Act of 2007 (EISA) (42 U.S.C. 17111) 
to re-designate the heading ``Future of Industry Program'' and 
to insert a definition for ``energy service provider.''
    Section 302(c) amends section 452(e) of EISA to direct the 
Secretary to increase the value and capabilities of the 
Industrial Research and Assessment Centers by requiring them to 
coordinate with the Manufacturing Extension Partnership Centers 
of the National Institute of Standards and Technology, the 
Building Technologies Program of the Department, and to 
increase partnerships with the National Laboratories. 
Additionally, section 452(e) of EISA, as amended, directs the 
Secretary to provide funding for outreach activities by the 
Centers to inform small- and medium-sized manufacturers of 
services available and to coordinate Center activities with 
those of Federal and State governments, utilities, energy 
service providers and others. Amended section 452(e) also 
directs the Secretary to pay a 50 percent Federal share for 
internships for students to work with businesses to implement 
Center recommendations. Amended section 452(e) would further 
direct the Administrator of the Small Business Administration 
to expedite consideration of applications from small businesses 
for loans to implement recommendations of the Centers. Finally, 
the amended section 452(e) directs the Secretary to establish 
an advisory steering committee to provide recommendations 
regarding the Advanced Manufacturing Office of the Department.
    Section 303(a) amends part E of title III of the Energy 
Policy and Conservation Act (EPCA) (42 U.S.C. 6341-6345) by 
adding a new section 376 at the end to establish a Sustainable 
Manufacturing Initiative.
    EPCA section 376(a), as amended, directs the Secretary, 
upon the request of a manufacturer, to conduct onsite technical 
assessments to identify energy efficiency opportunities in 
industrial processes and to achieve other objectives.
    EPCA section 376(b), as amended, directs that the Secretary 
shall carry out this Initiative in coordination with the 
private sector and appropriate agencies including the National 
Institute of Standards and Technology.
    EPCA section 376(c), as amended, directs the Secretary, as 
part of the industrial efficiency programs of the Department, 
to carry out a joint industry-government partnership program to 
research, develop, and demonstrate new sustainable 
manufacturing technologies and processes that maximize the 
energy efficiency of industrial plants, reduce pollution, and 
conserve natural resources.
    Section 303(b) amends the table of contents of EPCA to add 
the new section 376.
    Section 304 makes conforming amendments.

Subtitle B--Supply Star

    Section 311 adds a new section 324B at the end of Part B of 
Title III of EPCA.
    EPCA section 324B(a) establishes a Supply Star program to 
identify and promote practices, recognize companies and 
recognize products that use highly efficient supply chains that 
conserve energy, water, and other resources.
    EPCA section 324B(b) directs the Secretary to consult with 
other appropriate agencies and coordinate efforts with the 
Energy Star program.
    EPCA section 324B(c) directs the Secretary to promote 
practices, recognize companies, and products that comply with 
the Supply Star program as the preferred practices, companies, 
and products in the marketplace for maximizing supply chain 
efficiency; work to enhance industry and public awareness of 
the Supply Star program; collect and disseminate data on supply 
chain energy resource consumption, and undertake other duties.
    EPCA section 324B(d) provides that, in any evaluation of 
supply chain efficiency carried out by the Secretary, the 
Secretary shall consider energy consumption and resource use 
throughout the entire lifecycle of a product, including 
production, transport, packaging, use, and disposal.
    EPCA section 324B(e) provides that the Secretary may award 
grants or other incentives on a competitive basis to eligible 
entities for the purposes of studying supply chain energy 
resource efficiency and demonstrating and achieving reductions 
in energy resource consumption of commercial products through 
improvements to the production supply and distribution chain. 
This subsection further provides that any information generated 
shall be used to inform the development of the Supply Star 
Program.
    EPCA 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.
    EPCA section 324B(g) provides that for purposes of this 
section, the impact on climate change shall not be a factor in 
determining supply chain efficiency.
    EPCA section 324B(h) provides that for the 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.
    EPCA section 324B(i) provides that there are authorized to 
be appropriated to carry out this section $10,000,000 for 
fiscal years 2014 through 2023.

Subtitle C--Electric motor rebate program

    Section 321(a) and (b) directs the Secretary to establish a 
rebate program for the purchase and installation of new 
constant speed electric motor controls that reduce a motor's 
energy use by at least 5 percent. The rebate would be worth $25 
per horsepower of the motor.
    Section 321(c) authorizes appropriations of $5,000,000 for 
each of fiscal years 2014 and 2015.

Subtitle D--Energy efficient transformer rebate program

    Section 331(a) and (b) provides a definition for the term 
``qualified transformer'' and directs the Secretary to 
establish a program under which rebates are provided for the 
purchase and installation of a new energy efficient 
transformers.
    Section 331(c) provides for applications as the Secretary 
may require and for the authorized amount of rebates.
    Section 331(d) and (e) authorizes appropriation of 
$5,000,000 for each of fiscal years 2014 and 2015, and 
terminates authority for the Program on December 31, 2015.

               TITLE IV--FEDERAL AGENCY ENERGY EFFICIENCY

    Section 401 requires Federal Agencies to develop a plan for 
adopting personal computer power savings techniques and to 
submit a report on plans and savings.
    Section 402 allows the Administrator of General Services to 
use appropriated funding to update plans for any project that 
has been approved by Congress and for which construction has 
not begun. The funds would be used to update the building 
design to meet energy efficiency standards established in the 
Energy Conservation and Production Act. Funds used for this 
purpose could not exceed 125 percent of the estimate energy or 
other cost savings resulting from the design changes.
    Section 403 amends sections 546(c)(1) and 804(4) of the 
National Energy Conservation Policy Act (NECPA) (42 U.S.C. 
8256(c)(1) and 42 U.S.C. 8287c(4)) to authorize the use of 
energy savings performance contracts and utility energy service 
contracts for projects to support the use of natural gas 
vehicles and electric vehicles or the fueling or charging 
infrastructure necessary for natural gas vehicles and electric 
vehicles.
    Section 404 directs that the Administrator for the Office 
of E-Government and Information Technology within the Office of 
Management and Budget shall develop and publish a goal for the 
total amount of planned energy and cost savings by the Federal 
Government through the consolidation of Federal data centers 
during the 5-year period beginning on the date of enactment of 
this Act.

                         TITLE V--MISCELLANEOUS

    Section 501 provides offsets for the authorizations in the 
bill.
    Section 502 states that the budgetary effects of the bill 
under the Statutory Pay-As-You-Go regulations shall be 
determined by the latest statement on the bill.
    Section 503 specifies that authorizations for 
appropriations shall apply only if such sums are actually 
appropriated.

                   Cost and Budgetary Considerations

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

S. 761--Energy Savings and Industrial Competitiveness Act of 2013

    Summary: S. 761 would authorize appropriations to support a 
variety of activities aimed at promoting energy efficiency in 
certain sectors of the economy. To offset a portion of the new 
discretionary spending authorized under the bill, S. 761 would 
reduce amounts authorized to be appropriated for an existing 
program aimed at promoting energy-efficient commercial 
buildings. Assuming appropriation actions consistent with the 
bill, CBO estimates that implementing S. 761 would have a net 
discretionary cost of $210 million over the 2014-2018 period.
    In addition, S. 761 would expand federal agencies' 
authority to enter into certain long-term contracts to acquire 
certain types of vehicles and related infrastructure. CBO 
estimates that enacting the proposed expansion would increase 
direct spending by $350 million over the 2014-2023 period. 
Because the bill would affect direct spending, pay-as-you-go 
procedures apply. Enacting S. 761 would not affect revenues.
    S. 761 would impose an intergovernmental mandate, as 
defined in the Unfunded Mandates Reform Act (UMRA), by 
requiring states and tribal governments to certify to the 
Department of Energy (DOE) whether or not they have updated 
residential and commercial building codes to meet standards 
developed by building efficiency organizations. CBO estimates 
that the cost of that mandate would fall well below the annual 
threshold established in UMRA ($75 million in 2013, adjusted 
annually for inflation).
    S. 761 would impose no private-sector mandates as defined 
in UMRA.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 761 is shown in the following table. The 
costs of this legislation fall primarily within budget 
functions 050 (defense), 270 (energy), and 800 (general 
government).

----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, in millions of dollars--
                                                         -------------------------------------------------------
                                                            2014     2015     2016     2017     2018   2014-2018
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

New Authorizations:
    Estimated Authorization Level.......................      490       30       20       20       20       580
    Estimated Outlays...................................      151      164      136       79       45       575
Reduced Authorizations:
    Authorization Level.................................      -70     -100     -100     -100     -200      -570
    Estimated Outlays...................................      -20      -50      -76      -91     -128      -365
    Total Proposed Changes:
        Estimated Authorization Level...................      420      -70      -80      -80     -180        10
        Estimated Outlays...............................      131      114       60      -12      -83       210

                                           CHANGES IN DIRECT SPENDINGa

Estimated Budget Authority..............................       30       30       30       35       35       160
Estimated Outlays.......................................       30       30       30       35       35      160
----------------------------------------------------------------------------------------------------------------
aCBO estimates that enacting S. 761 would increase direct spending by $350 million over the 2014-2023 period.

    Basis of estimate: For this estimate, CBO assumes that S. 
761 will be enacted near the start of fiscal year 2014. 
Assuming appropriation action consistent with the bill, CBO 
estimates that implementing S. 761 would have a net 
discretionary cost of $210 million over the next five years. 
CBO also estimates that enacting S. 761 would increase direct 
spending by $350 million over the next 10 years.

Spending subject to appropriation

    S. 761 would authorize appropriations for a variety of 
programs and activities aimed at promoting energy efficiency, 
particularly within residential and commercial buildings and 
the industrial sector. The bill also would reduce existing 
authorizations of appropriations for related activities.
    New Authorizations. S. 761 would specifically authorize 
appropriations totaling $480 million over the 2014-2018 period 
for DOE to carry out a variety of activities directed toward 
improving the energy efficiency of buildings and industrial 
systems. (By comparison, DOE received an appropriation of 
roughly $317 million for activities related to building and 
industrial technologies in 2013.) Those specified 
authorizations include:
           $250 million for grants to states to 
        establish or expand programs to finance energy-
        efficient retrofits at certain privately owned 
        buildings;
           $200 million for technical assistance to 
        states, tribes, and other organizations to improve and 
        implement energy standards for residential and 
        commercial buildings and to update model building 
        codes;
           $20 million to provide rebates to purchasers 
        of certain energy-efficient transformers and devices 
        that reduce energy consumed by motors; and
           $10 million for grants and initiatives to 
        promote efforts to enhance the energy efficiency of 
        supply chains involved in commercial manufacturing 
        processes.
    In addition, CBO estimates that implementing other 
provisions of S. 761 that would direct DOE to expand ongoing 
efforts by DOE and the General Services Administration (GSA) 
related to building technologies and industrial energy 
efficiency would require appropriations totaling $100 million 
over the 2014-2018 period. Those amounts would support programs 
to provide outreach and technical assistance to industrial 
manufacturers, carry out research and development on energy-
efficient technologies and practices within the industrial 
manufacturing sector, and to update and implement designs for 
projects at federal buildings that meet certain energy-
efficiency requirements.
    In total, assuming appropriation of amounts specified and 
estimated to be necessary, CBO estimates that implementing 
newly authorized activities in S. 761 would have a gross cost 
of $575 million over the 2014-2018 period. That estimate is 
based on historical spending patterns for activities similar to 
those that would be authorized by S. 761.
    Reduced Authorizations. To offset a portion of new 
discretionary spending authorized by the bill, section 501 of 
S. 761 would reduce existing authorizations of appropriations 
for a program aimed at developing and disseminating 
technologies to reduce the quantity of energy consumed by 
commercial buildings. In total, S. 761 would reduce amounts 
authorized to be appropriated for that program by $570 million 
over the 2014-2018 period. Assuming future appropriations are 
reduced accordingly, CBO estimates that implementing S. 761 
would result in $365 million less in discretionary outlays for 
that program over the next five years.

Direct spending

    S. 761 would expand federal agencies' authority to enter 
into energy savings performance contracts (ESPCs) and utility 
energy service contracts (UESCs), which are specific types of 
long-term contracts used to procure certain energy services. 
Such agreements are a form of third-party financing, in which 
private parties fund projects on behalf of the federal 
government.\1\ Upon signing such contracts, the government 
effectively commits to make payments to a vendor in future 
years to cover the costs of equipment and services as well as 
interest costs on the vendor's borrowing to finance upfront 
costs. In CBO's view, the authority to enter into such 
contractual agreements is a form of direct spending.\2\
---------------------------------------------------------------------------
    \1\For more on third-party financing see Congressional Budget 
Office, Third-Party Financing of Federal Projects (June 1, 2005).
    \2\For further details of the principles that govern CBO's analyses 
of long-term contracts such as ESPCs and UESCs, see Congressional 
Budget Office, letter to the Honorable Fred Upton on the Budgetary 
Impact of Energy Savings Performance Contracts (July 1, 2011) and 
Congressional Budget Office, letter to the Honorable Jeff Bingaman and 
the Honorable Christopher Coons on the Budgetary Impact of Power 
Purchase Agreements (November 29, 2011).
---------------------------------------------------------------------------
    Specifically, S. 761 would authorize federal agencies to 
use ESPCs and UESCs to procure vehicles that operate on natural 
gas or electricity or to install infrastructure related to such 
vehicles. CBO expects that, under the bill, agencies would use 
such contracts to invest in such vehicles and infrastructure in 
order to meet certain energy-related requirements pertaining to 
the federal fleet. For example, executive orders and provisions 
of current law specify goals and requirements for certain 
agencies to reduce greenhouse gas emissions, reduce petroleum 
use, and increase the use of alternative fuels.
    CBO anticipates that additional spending through long-term 
contracts under S. 761 would vary widely from year to year 
depending on the magnitude of federal acquisitions of eligible 
vehicles and infrastructure. Based on information from DOE, 
GSA, and the Department of Defense (DOD), CBO estimates that 
increased spending through such contracts would total $350 
million over the 2014-2023 period. CBO estimates that $100 
million of that amount--or an average of $10 million annually--
would cover upfront costs to acquire commercially available 
electric and natural gas vehicles and to construct related 
fueling and charging stations. (By comparison, CBO estimates 
that total federal expenditures for vehicle leases and fuel for 
all agencies totaled about $2 billion in 2011.)
    CBO's estimate also reflects the expectation that some 
agencies would use long-term contracts authorized under S. 761 
to pursue cutting-edge technology such as ``vehicle-to-grid'' 
systems. Such systems would enable advanced electric vehicles 
to communicate and share power with the electric grid. Under S. 
761, CBO estimates that agencies would pursue additional 
vehicle-to-grid projects for a total cost of roughly $250 
million over the 2014-2023 period. That estimate includes costs 
to build necessary infrastructure across roughly 50 military 
installations and federal campuses and to acquire 3,500 
advanced electric vehicles. The estimate is also based on 
information from DOD about nascent efforts to develop and field 
vehicle-to-grid technology.
    Agencies' total energy-related costs would be affected by 
the long-term contracts that would be authorized by S. 761. 
Such costs are typically paid from annual discretionary 
appropriations; thus, S. 761 would result in changes in the 
need for appropriations in future years after contracts are 
fully paid. For example, if investments in eligible vehicles 
and infrastructure reduce energy use, and if such reductions 
continue beyond the period of time covered by contracts, those 
savings would accrue to the government and federal spending for 
such costs would be less if future appropriations are reduced 
accordingly. Because of the length of time likely to be 
involved in contracts under S. 761, however, CBO expects that 
most of those changes in the need for future appropriations 
would not occur until after the period covered by this 
estimate.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in the following table.

       CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR S. 761 AS ORDERED REPORTED BY THE SENATE COMMITTEE ON ENERGY AND NATURAL RESOURCES ON MAY 8, 2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal year, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2013    2014    2015    2016    2017    2018    2019    2020    2021    2022    2023   2013-2018  2013-2023
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       NET INCREASE OR DECREASE (-) IN THE DEFICIT

Statutory Pay-As-You-Go Impact............       0      30      30      30      35      35      35      35      40      40      40       160        350
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Estimated impact on state, local, and tribal governments: 
S. 761 would impose an intergovernmental mandate, as defined in 
UMRA, by requiring states and tribal governments to certify to 
DOE whether or not they have updated residential and commercial 
building codes to meet standards developed by building 
efficiency organizations. Because states can certify that they 
have not updated their building codes, CBO estimates that the 
cost of that mandate would fall well below the annual threshold 
established in UMRA ($75 million in 2013, adjusted annually for 
inflation).
    The bill would authorize funding and technical assistance 
to states and Indian tribes to implement the certification 
requirement. Such funding could also be used for implementing 
and enforcing new building codes and training state and local 
officials. In addition, states may benefit from federal grants 
to establish or expand programs to promote retrofit projects 
for reducing energy costs, and public institutions of higher 
learning may benefit from federal funding for outreach 
activities in industrial research and assessment centers. Any 
costs to states and public universities associated with 
receiving such assistance would be incurred voluntarily as 
conditions of federal assistance.
    Estimated impact on the private sector: S. 761 would impose 
no new private-sector mandates as defined in UMRA.
    Estimate prepared by: Federal costs: Megan Carroll, David 
Newman, and Matthew Pickford; Impact on state, local, and 
tribal governments: J'nell L. Blanco; 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. 761.
    S. 761 directs the Secretary of Energy to support the 
development of national model building energy codes and 
encourage and support States and Indian tribes to adopt 
building codes that meet or exceed the national model building 
energy codes. But the measure does not require individuals or 
businesses to comply with the national model codes.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    S. 761 requires States and Indian tribes to certify their 
compliance or progress toward meeting the national model 
building energy codes, and imposes various reporting and data 
collecting requirements on the Secretary of Energy and federal 
energy managers. The Secretary may also require applicants for 
loans and rebates established under the measure to provide such 
information as the Secretary may require to implement those 
programs, but the Committee does not expect the bill's 
information collecting requirements to impose substantial 
additional paperwork or recordkeeping burdens, in either time 
or financial cost, on private individuals or businesses.

                   Congressionally Directed Spending

    S. 761, 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 
April 23, 2013, Full Committee hearing on S. 761 follows:

Statement of Dr. Kathleen Hogan, Deputy Assistant Secretary for Energy 
     Efficiency, Office of Energy Efficiency and Renewable Energy, 
                          Department of Energy

    Chairman Wyden, Ranking Member Murkowski, and Members of 
the Committee: thank you for inviting me to testify today on 
behalf of the Department of Energy (DOE) regarding energy 
efficiency.
    The Energy Savings and Industrial Competitiveness Act of 
2013 outlines new provisions for building codes, financing 
building upgrades, industrial energy efficiency, and efficiency 
of Federal buildings among other areas. The legislation would 
increase DOE's role in providing technical assistance to 
building code bodies and would expand the type of support that 
DOE provides to States. It would also establish DOE-
administered rebate programs for more energy efficient electric 
motors and transformers. The Administration is still reviewing 
the Energy Savings and Industrial Competitiveness Act of 2013 
(S. 761) and does not have a position on the bill at this time.
    The Administration does, however, support the objectives of 
improving energy efficiency in the residential, commercial, and 
industrial sectors and in the Federal government. Energy 
efficiency is a large, low-cost, but underutilized U.S. energy 
resource. Increased energy efficiency offers savings on energy 
bills, opportunities for more jobs, improved industrial 
competitiveness, and lower air pollution. This year's State of 
the Union address included a goal to cut the energy wasted by 
our homes and businesses by half over the next 20 years.
    The President also called on us to build on the success of 
existing partnerships as well as to establish new partnerships, 
in particular with the States. This includes his call for a new 
Race to the Top for Energy Efficiency and Grid Modernization 
challenge. Modeled after the successful Administration approach 
to education reform to promote forward-leaning policies at the 
State-level, the President's budget includes $200 million in 
one-time funding for Race to the Top awards to support State 
governments that implement effective policies to cut energy 
waste and modernize the grid.
    As Deputy Assistant Secretary for Energy Efficiency in the 
Office of Energy Efficiency and Renewable Energy (EERE), I am 
responsible for overseeing DOE's portfolio of energy efficiency 
research, development, demonstration, and deployment 
activities. I am pleased to be here today and look forward to 
working with Congress, and this Committee in particular, and 
discussing how we can catalyze greater energy efficiency to 
help address our Nation's energy challenges. My statement today 
will provide an update on DOE's energy efficiency portfolio, 
the challenges we are working to address, and the progress we 
are making.


                     HOMES AND COMMERCIAL BUILDINGS


    Improving energy efficiency in our homes and buildings 
offers a tremendous opportunity to create well-paying jobs, 
save money for businesses and consumers, and make our air 
cleaner. In the U.S., homes and buildings consume 40 percent of 
the Nation's total energy with an annual energy bill of more 
than $400 billion.\1\ DOE estimates that these energy bills can 
be cost-effectively reduced by 20-50%, or more, through various 
energy efficiency approaches.\2\
---------------------------------------------------------------------------
    \1\Buildings Energy Data Book, U.S. Department of Energy. March 
2012, http://buildings databook.eren.doe.gov/
TableView.aspx?table=1.2.3.
    \2\See, for example, DOE/ASHRAE's Advanced Energy Design Guides for 
commercial buildings (http://www1.eere.energy.gov/buildings/commercial/
aedg.html) and DOE's Building America program (http://
www1.eere.energy.gov/buildings/residential/ba_index.html).
---------------------------------------------------------------------------
    DOE uses a portfolio approach to pursue the potential 
energy savings in buildings. Research and development (R&D) on 
next-generation building technologies will lead to advances in 
end-uses representing the majority of building energy 
consumption, including efficient lighting that is cost-
competitive in today's market, new technologies in heating and 
cooling, and windows that decrease energy demands and improve 
comfort. Some highlights from DOE's project portfolio include:
     DOE's R&D on solid-state lighting has the 
potential to reduce lighting energy usage by one-fourth, saving 
businesses and consumers $15 billion annually.\3\ Already, new 
technology developed with DOE support has led to a solid state 
bulb with lower life-cycle costs that lasts roughly 25 times 
longer than traditional incandescent bulbs.
---------------------------------------------------------------------------
    \3\BTP ET Program Information Sheet: Solid-State Lighting, August 
10, 2011.
---------------------------------------------------------------------------
     New heat pump water heaters offer households large 
savings on water heating, more than 50% in many cases. As a 
Nation, we spend $34 billion\4\ each year on energy for water 
heating,\5\ and heat pump water heaters could free a large 
percentage of that cost to meet other household expenses. The 
first of these innovative water heaters that use a hybrid of 
electric heating and heat pump technologies are being 
commercially produced here in the United States.
---------------------------------------------------------------------------
    \4\``Annual Energy Review.'' EERE Buildings Data Book, 2011, http:/
/buildings databook.eren.doe.gov/TableView.aspx?table=2.3.5.
    \5\``Saving Energy.'' EERE Buildings Technology Program, 2012, 
http://www.eere.energy.gov/buildings/saving_energy_ge.html.
---------------------------------------------------------------------------
     Efficient windows, pioneered with EERE funding, 
have played a critical role in the market shift toward double-
pane windows with low-emittance coatings, which insulate three 
times better than typical single-pane windows. More recently, 
EERE has helped develop and commercialize technology to create 
better, more efficient windows for cold climates that will 
allow in more energy than they lose.
    DOE also invests in whole building R&D that demonstrates 
how new energy efficient technologies can function together to 
create an efficient system, achieve greater overall savings, 
and inspire the next-generation of buildings. For homes, this 
will translate into a new generation of housing stock that is 
durable, uses smarter energy management systems, and offers 
substantial energy savings. Our recently introduced Challenge 
Home program is a new and compelling way to recognize builders 
for their leadership in increasing home energy efficiency, 
improving indoor air quality, and making homes zero net-energy 
ready. DOE Challenge Homes are verified by a qualified third 
party and are at least 40-50% more energy efficient than a 
typical new home.\6\
---------------------------------------------------------------------------
    \6\A typical new home as built to recent model energy codes. For 
more information on DOE Challenge Home methodology, see http://
www1.eere.energy.gov/buildings/residential/pdfs/
ch_label_methodology_101.2.pdf.
---------------------------------------------------------------------------
    In addition to creating energy efficiency opportunities in 
the new buildings market, DOE invests in activities that target 
the large savings potential that exists across the stock of 
existing homes, many built before modern codes. Here, the 
Department is working with organizations in communities across 
the country to demonstrate upgrade programs that offer savings 
of 20% or more for single family and multi-family residences. 
Within this market space, effective programs are the ones that 
include three elements: clear, compelling information for 
homeowners on potential energy savings; skilled workers; and 
access to financing. To help improve these programs, we are 
developing new rating tools to help consumers understand the 
efficiency of their buildings and the opportunities for 
improvement.
    In addition, in late September 2012, EERE reached the major 
milestone of weatherizing more than one million homes across 
the country since 2009, while supporting tens of thousands of 
jobs in local communities. These efforts save eligible families 
hundreds on their heating and cooling bills in the first year 
alone. Each year, these programs train thousands of workers in 
both the public and private sectors, boosting their ability to 
serve the home retrofit market and helping to grow the clean 
energy workforce. To ensure the consistency and quality of this 
growing U.S. workforce, the Department is leading efforts to 
define Standard Work Specifications for Energy Efficiency 
Upgrades in residential weatherization and building a 
foundation for the home energy industry through professional 
training and certification.
    We have similar efforts targeting energy efficiency 
opportunities for commercial buildings. Two particular efforts 
to highlight are the Energy Efficient Buildings Hub and the 
Better Buildings Challenge. To accelerate the development and 
deployment of energy-saving solutions for commercial buildings, 
DOE established the Energy Efficient Buildings Hub, a Regional 
Innovation Cluster headquartered at the Navy Yard in 
Philadelphia. A key feature of the Hub is the availability of a 
unique set of buildings as a test bed, including a 30,000-
square-foot building that will be used to demonstrate advanced 
energy retrofits of commercial buildings. The tools developed, 
lessons learned and best practices from the Hub will ultimately 
help enable wide-scale deployment in similar climate zones and 
building types nationwide.
    The Better Buildings Challenge (BBC) is a signature 
partnership effort, with over 110 partners across the 
commercial, industrial, and public sectors. Together, these 
partners represent approximately 2 billion square feet of 
commercial and industrial space, 300 manufacturing plants, and 
$2 billion in private sector financing. As partners advance 
toward meeting their individual goals, the BBC website\7\ will 
highlight their commitment and progress, including information 
on showcase projects and hundreds of replicable implementation 
models. To date, more than $1 billion of the commitment from 
private sector financial firms has been extended to projects, 
and we are continuing to look for ways to expand access to 
private-sector financing, as this remains an important barrier 
cited by commercial building owners.
---------------------------------------------------------------------------
    \7\The BBC website address is www.betterbuildings.energy.gov/
challenge.
---------------------------------------------------------------------------
    Further, DOE assists with the adoption and implementation 
of state and local building codes for both commercial and 
residential buildings. Building codes take advantage of the 
broader set of efficiency measures available during 
construction and major renovations. The Department emphasizes 
updating codes based on cost-effective savings opportunities 
and assisting state and local governments with ensuring code 
compliance so that savings are realized. To accomplish its 
objectives in this area, DOE has developed a suite of 
assistance tools it routinely provides to state and local 
authorities.


                         ADVANCED MANUFACTURING


    The U.S. manufacturing sector also offers important 
opportunities for cutting energy waste, while improving our 
industrial competitiveness and promoting economic growth. In 
the United States, manufacturing represents about 12% of the 
gross domestic product and nearly 12 million jobs.\8\ The 
Department's investments in advanced manufacturing are geared 
toward developing next-generation technologies, processes, and 
materials that offer substantial improvements in efficiency 
across a product lifecycle and at costs competitive with 
current technologies. We are also assisting industry with 
strategic energy management and combined heat and power (CHP). 
This portfolio will enhance the competitiveness of U.S. 
manufacturing now and for the longer term.
---------------------------------------------------------------------------
    \8\Full-time and Part-time employees by industry, U.S. Department 
of Commerce, http://www.bea.gov/iTable/
iTable.cfm?reqid=5&step=4&isuri=1&402=43&403=1#reqid=5&step=4& 
isuri=1&402=43&403=1 Value added by industry as percentage of GDP, U.S. 
Department of Commerce, http://www.bea.gov/iTable/
iTable.cfm?reqid=5&step=4&isuri=1&402=5&403=1#treqid 
=5&step=4&isuri=1&402=5&403=1
---------------------------------------------------------------------------
    In the State of the Union address, President Obama called 
for a network of manufacturing innovation institutes that will 
help to support investment in U.S. manufacturers' 
competitiveness and accelerate innovation in manufacturing. The 
Department of Energy is a partner in the pilot institute, the 
National Additive Manufacturing Innovation Institute (NAMII), 
located in Youngstown, Ohio. NAMII is bridging the gap between 
basic research and product development for additive 
manufacturing, providing shared assets to help companies 
(particularly small manufacturers) access cutting-edge 
capabilities and equipment, and creating an environment to 
educate and train workers in advanced additive manufacturing 
skills. Additive manufacturing techniques create 3-D objects 
directly from computer models, depositing material only where 
required. These new techniques, while still evolving, are 
projected to exert a profound impact on manufacturing for high-
value products. They can give industry new design flexibility, 
reduce energy use, and shorten time to market. To realize the 
full potential of additive manufacturing, the technology will 
need to be integrated into broad manufacturing solutions. In 
applications where additive manufacturing is competitive, DOE 
estimates that 50% or more energy savings could be realized.
    In January, the Department announced the selection of Ames 
Laboratory to establish an Energy Innovation Hub that will 
develop solutions to help address the domestic shortages of 
rare earth metals and other materials critical for U.S. energy 
security. The Critical Materials Institute (CMI) will bring 
together leading researchers from academia, Department of 
Energy National Laboratories, and the private sector. CMI will 
focus on technologies that will enable the U.S. to make better 
use of available materials as well as eliminate the need for 
materials that generally must be imported from overseas and are 
subject to supply disruptions. These critical materials, 
including many rare earth elements, or the development of 
feasible substitute technologies are essential for American 
competitiveness in the clean energy industry; many materials 
deemed critical by the Department are used in modern clean 
energy technologies such as wind turbines, solar panels, 
electric vehicles, and energy-efficient lighting.
    In addition to investments in advanced process and 
materials R&D, the Department has active technical assistance 
programs aimed at reducing manufacturing energy intensity by 
25% over ten years by engaging a diverse set of industry 
partners in effective business models, continuous improvement 
in energy efficiency, modeling key processes, and supporting 
standards and certifications for third-party services. DOE 
technical assistance also supports the achievement of the 
national goal set by President Obama in an Executive Order last 
August of developing 40 gigawatts of new, cost-effective 
industrial CHP by 2020. And, DOE provides tools to support 
improvements in a number of common systems in manufacturing 
facilities, including motor, steam, compressed air, and pumping 
systems.


                   APPLIANCE AND EQUIPMENT STANDARDS


    In addition, the Department implements minimum energy 
conservation standards for more than 60 categories of 
appliances and equipment. As a result of these standards, 
energy users across all sectors are estimated to have saved 
tens of billions of dollars on their utility bills in 2010. 
Since 2009, 17 new or updated standards have been issued, which 
will help increase annual savings even further over the coming 
years.
    Most recently DOE finalized a standard for three types of 
distribution transformers that take effect in 2016. The 
standard for low-voltage dry-type transformers, which are 
typically used by commercial and industrial users, represents 
30% savings over the prior standard and provides estimated net 
benefits of up to $11.8 billion on equipment sold through 
2045.\9\ The two other types of distribution transformers that 
were subject to this rulemaking, liquid-immersed and medium-
voltage dry-type transformers, are used primarily by electric 
utilities in outdoor settings as opposed to inside buildings. 
These two standards combined provide estimated net benefits of 
up to $5.7 billion on equipment sold through 2045.
---------------------------------------------------------------------------
    \9\Net present value of net benefits, in 2011 dollars, estimated at 
a 3% discount rate.
---------------------------------------------------------------------------


                        FEDERAL LEAD-BY-EXAMPLE


    Finally, DOE plays a critical role in providing technical 
assistance to Federal agencies to increase understanding and 
accelerate cost-effective adoption of energy-saving 
technologies and strategies. The U.S. Federal government is the 
Nation's single largest user of energy and has both a 
tremendous opportunity and an acknowledged responsibility to 
lead by example in saving energy. In December 2011, President 
Obama signed a Presidential Memorandum directing the Federal 
government to enter into a minimum of $2 billion in 
performance-based contracts over the next two years for energy 
retrofits on Federal buildings. Agencies have identified a 
pipeline of over $2 billion in energy efficiency projects for 
Federal buildings that will be contract awards by December 31, 
2013. These projects will use energy savings to pay for project 
implementation costs, achieving substantial energy savings at 
no net cost to the American taxpayer. More than $500 million in 
projects have already been awarded, which will also help 
agencies meet the government's goals to reduce Federal building 
energy consumption per gross square foot by 30% from 2003 
through 2015; increase renewable energy use to 7.5% annually; 
reduce water use intensity by 26% from 2007 through 2020; 
reduce vehicle petroleum use by 2% annually; and reduce 
greenhouse gas emissions by 28% from 2008 through 2020.
    Federal data center optimization and closures, the use of 
Energy Star and EPEAT-registered computers and power management 
also remain important opportunities for energy savings.


                               CONCLUSION


    Through R&D, deployment, and collaborations at all levels 
of government and the private sector, the Department of Energy 
aims to capitalize on the opportunities that energy efficiency 
affords. The Department's efforts to lead in next-generation 
buildings and advanced manufacturing will result in a more 
secure, resilient, and competitive energy economy. While we are 
making progress, continued efforts are necessary to capture the 
full set of opportunities.
    Thank you again for the opportunity to speak to this 
important issue, and I would be happy to answer any questions.

                        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. 761, 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):

                         TABLE OF LAWS AFFECTED


                   Energy Policy and Conservation Act


                 Energy Conservation and Production Act


                National Energy Conservation Policy Act


                       Energy Policy Act of 1992


                       Energy Policy Act of 2005


              Energy Independence and Security Act of 2007


             Title 40--Public Buildings, Property and Works

                              ----------                              --
--------


                   ENERGY POLICY AND CONSERVATION ACT


                     Public Law 94-163, as Amended


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

           *       *       *       *       *       *       *


                            TABLE OF CONTENTS

     * * * * * * *

                  TITLE III--IMPROVING ENERGY EFFICIENCY

     * * * * * * *

                   PART E--INDUSTRIAL ENERGY EFFICIENCY

Sec. 371. Definitions.
Sec. 372. Survey and Registry.
Sec. 373. Waste energy recovery incentive grant program.
Sec. 374. Additional incentives for recovery, utilization and prevention 
          of industrial waste energy.
Sec. 375. Clean Energy Application Centers.
Sec. 376. Sustainable manufacturing initiative.
     * * * * * * *

TITLE III--IMPROVING ENERGY EFFICIENCY

           *       *       *       *       *       *       *


 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 is authorized 
to be appropriated to carry out this section $10,000,000 for 
the period of fiscal years 2014 through 2023.

           *       *       *       *       *       *       *


                  PART E--INDUSTRIAL ENERGY EFFICIENCY


SEC. 371. DEFINITIONS.

           *       *       *       *       *       *       *


SEC. 375. CLEAN ENERGY APPLICATION CENTERS.

           *       *       *       *       *       *       *


SEC. 376. SUSTAINABLE MANUFACTURING INITIATIVE.

    (a) In General.--As part of the Office of Energy Efficiency 
and Renewable Energy, the Secretary, on the request of a 
manufacturer, shall conduct onsite technical assessments to 
identify opportunities for--
          (1) maximizing the energy efficiency of industrial 
        processes and cross-cutting systems;
          (2) preventing pollution and minimizing waste;
          (3) improving efficient use of water in manufacturing 
        processes;
          (4) conserving natural resources; and
          (5) achieving such other goals as the Secretary 
        determines to be appropriate.
    (b) Coordination.--The Secretary shall carry out the 
initiative in coordination with the private sector and 
appropriate agencies, including the National Institute of 
Standards and Technology, to accelerate adoption of new and 
existing technologies and processes that improve energy 
efficiency.
    (c) Research and Development Program for Sustainable 
Manufacturing and Industrial Technologies and Processes.--As 
part of the industrial efficiency programs of the Department of 
Energy, the Secretary shall carry out a joint industry-
government partnership program to research, develop, and 
demonstrate new sustainable manufacturing and industrial 
technologies and processes that maximize the energy efficiency 
of industrial plants, reduce pollution, and conserve natural 
resources.

PART F--OTHER FEDERAL ENERGY CONSERVATION MEASURES

           *       *       *       *       *       *       *


                              ----------                              


                 ENERGY CONSERVATION AND PRODUCTION ACT


                     Public Law 94-385, as Amended


AN ACT To amend the Federal Energy Administration Act of 1974 to extend 
the duration of authorities under such Act; to provide an incentive for 
   domestic production; to provide for electric utility rate design 
   initiatives; to provide for energy conservation standards for new 
 buildings; to provide for energy conservation assistance for existing 
buildings and industrial plants; and for other purposes.

           *       *       *       *       *       *       *


TITLE III--ENERGY CONSERVATION STANDARDS FOR NEW BUILDINGS

           *       *       *       *       *       *       *


                              DEFINITIONS

    Sec. 303. As used in this title:
          (1) The term ``Administrator'' means the 
        Administrator of the Federal Energy Administration; 
        except that after such Administration ceases to exist, 
        such term means any officer of the United States 
        designated by the President for purposes of this title.

           *       *       *       *       *       *       *

          [(14) The term ``voluntary building energy code'' 
        means a building energy code developed and updated 
        through a consensus process among interested persons, 
        such as that used by the Council of American Building 
        Officials; the American Society of Heating, 
        Refrigerating, and Air-Conditioning Engineers; or other 
        appropriate organizations.]
          (14) Model building energy code.--The term ``model 
        building energy code'' means a voluntary building 
        energy code and standards developed and updated through 
        a consensus process among interested persons, such as 
        the IECC or the code used by--
                  (A) the Council of American Building 
                Officials;
                  (B) the American Society of Heating, 
                Refrigerating, and Air-Conditioning Engineers; 
                or
                  (C) other appropriate organizations;
          (15) The term ``CABO'' means the Council of American 
        Building Officials.
          (16) The term ``ASHRAE'' means the American Society 
        of Heating, Refrigerating, and Air-Conditioning 
        Engineers.
          (17) IECC.--The term ``IECC'' means the International 
        Energy Conservation Code.
          (18) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Native 
        American Housing Assistance and Self-Determination Act 
        of 1996 (25 U.S.C. 4103).

SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.

    [(a) Consideration and Determination Respecting Residential 
Building Energy Codes.--(1) Not later than 2 years after the 
date of the enactment of the Energy Policy Act of 1992, each 
State shall certify to the Secretary that it has reviewed the 
provisions of its residential building code regarding energy 
efficiency and made a determination as to whether it is 
appropriate for such State to revise such residential building 
code provisions to meet or exceed CABO Model Energy Code, 1992.
    [(2) The determination referred to in paragraph (1) shall 
be--
          [(A) made after public notice and hearing;
          [(B) in writing;
          [(C) based upon findings included in such 
        determination and upon the evidence presented at the 
        hearing; and
          [(D) available to the public.
    [(3) Each State may, to the extent consistent with 
otherwise applicable State law, revise the provisions of its 
residential building code regarding energy efficiency to meet 
or exceed CABO Model Energy Code, 1992, or may decline to make 
such revisions.
    [(4) If a State makes a determination under paragraph (1) 
that it is not appropriate for such State to revise its 
residential building code, such State shall submit to the 
Secretary, in writing, the reasons for such determination, and 
such statement shall be available to the public.
    [(5)(A) Whenever CABO Model Energy Code, 1992, (or any 
successor of such code) is revised, the Secretary shall, not 
later than 12 months after such revision, determine whether 
such revision would improve energy efficiency in residential 
buildings. The Secretary shall publish notice of such 
determination in the Federal Register.
    [(B) If the Secretary makes an affirmative determination 
under subparagraph (A), each State shall, not later than 2 
years after the date of the publication of such determination, 
certify that it has reviewed the provisions of its residential 
building code regarding energy efficiency and made a 
determination as to whether it is appropriate for such State to 
revise such residential building code provisions to meet or 
exceed the revised code for which the Secretary made such 
determination.
    [(C) Paragraphs (2), (3), and (4) shall apply to any 
determination made under subparagraph (B).
    [(b) Certification of Commercial Building Energy Code 
Updates.--(1) Not later than 2 years after the date of the 
enactment of the Energy Policy Act of 1992, each State shall 
certify to the Secretary that it has reviewed and updated the 
provisions of its commercial building code regarding energy 
efficiency. Such certification shall include a demonstration 
that such State's code provisions meet or exceed the 
requirements of ASHRAE Standard 90.1-1989.
    [(2)(A) Whenever the provisions of ASHRAE Standard 90.1-
1989 (or any successor standard) regarding energy efficiency in 
commercial buildings are revised, the Secretary shall, not 
later than 12 months after the date of such revision, determine 
whether such revision will improve energy efficiency in 
commercial buildings. The Secretary shall publish a notice of 
such determination in the Federal Register.
    [(B)(i) If the Secretary makes an affirmative determination 
under subparagraph (A), each State shall, not later than 2 
years after the date of the publication of such determination, 
certify that it has reviewed and updated the provisions of its 
commercial building code regarding energy efficiency in 
accordance with the revised standard for which such 
determination was made. Such certification shall include a 
demonstration that the provisions of such State's commercial 
building code regarding energy efficiency meet or exceed such 
revised standard.
    [(ii) If the Secretary makes a determination under 
subparagraph (A) that such revised standard will not improve 
energy efficiency in commercial buildings, State commercial 
building code provisions regarding energy efficiency shall meet 
or exceed ASHRAE Standard 90.1-1989, or if such standard has 
been revised, the last revised standard for which the Secretary 
has made an affirmative determination under subparagraph (A).
    [(c) Extensions.--The Secretary shall permit extensions of 
the deadlines for the certification requirements under 
subsections (a) and (b) if a State can demonstrate that it has 
made a good faith effort to comply with such requirements and 
that it has made significant progress in doing so.
    [(d) Technical Assistance.--The Secretary shall provide 
technical assistance to States to implement the requirements of 
this section, and to improve and implement State residential 
and commercial building energy efficiency codes or to otherwise 
promote the design and construction of energy efficient 
buildings.
    [(e) Availability of Incentive Funding.--(1) The Secretary 
shall provide incentive funding to States to implement the 
requirements of this section, and to improve and implement 
State residential and commercial building energy efficiency 
codes, including increasing and verifying compliance with such 
codes. In determining whether, and in what amount, to provide 
incentive funding under this subsection, the Secretary shall 
consider the actions proposed by the State to implement the 
requirements of this section, to improve and implement 
residential and commercial building energy efficiency codes, 
and to promote building energy efficiency through the use of 
such codes.
    [(2) Additional funding shall be provided under this 
subsection for implementation of a plan to achieve and document 
at least a 90 percent rate of compliance with residential and 
commercial building energy efficiency codes, based on energy 
performance--
          [(A) to a State that has adopted and is implementing, 
        on a statewide basis--
                  [(i) a residential building energy efficiency 
                code that meets or exceeds the requirements of 
                the 2004 International Energy Conservation 
                Code, or any succeeding version of that code 
                that has received an affirmative determination 
                from the Secretary under subsection (a)(5)(A); 
                and
                  [(ii) a commercial building energy efficiency 
                code that meets or exceeds the requirements of 
                the ASHRAE Standard 90.1-2004, or any 
                succeeding version of that standard that has 
                received an affirmative determination from the 
                Secretary under subsection (b)(2)(A); or
          [(B) in a State in which there is no statewide energy 
        code either for residential buildings or for commercial 
        buildings, to a local government that has adopted and 
        is implementing residential and commercial building 
        energy efficiency codes, as described in subparagraph 
        (A).
    [(3) Of the amounts made available under this subsection, 
the Secretary may use $500,000 for each fiscal year to train 
State and local officials to implement codes described in 
paragraph (2).
    [(4)(A) There are authorized to be appropriated to carry 
out this subsection--
          [(i) $25,000,000 for each of fiscal years 2006 
        through 2010; and
          [(ii) such sums as are necessary for fiscal year 2011 
        and each fiscal year thereafter.
    [(B) Funding provided to States under paragraph (2) for 
each fiscal year shall not exceed one-half of the excess of 
funding under this subsection over $5,000,000 for the fiscal 
year.]
    (a) In General.--The Secretary shall--
          (1) encourage and support the adoption of building 
        energy codes by States, Indian tribes, and, as 
        appropriate, by local governments that meet or exceed 
        the model building energy codes, or achieve equivalent 
        or greater energy savings; and
          (2) support full compliance with the State and local 
        codes.
    (b) State and Indian Tribe Certification of Building Energy 
Code Updates.--
          (1) Review and updating of codes by each state and 
        indian tribe.--
                  (A) In general.--Not later than 2 years after 
                the date on which a model building energy code 
                is updated, each State or Indian tribe shall 
                certify whether or not the State or Indian 
                tribe, respectively, has reviewed and updated 
                the energy provisions of the building code of 
                the State or Indian tribe, respectively.
                  (B) Demonstration.--The certification shall 
                include a demonstration of whether or not the 
                energy savings for the code provisions that are 
                in effect throughout the State or Indian tribal 
                territory meet or exceed--
                          (i) the energy savings of the updated 
                        model building energy code; or
                          (ii) the targets established under 
                        section 307(b)(2).
                  (C) No model building energy code update.--If 
                a model building energy code is not updated by 
                a target date established under section 
                307(b)(2)(D), each State or Indian tribe shall, 
                not later than 2 years after the specified 
                date, certify whether or not the State or 
                Indian tribe, respectively, has reviewed and 
                updated the energy provisions of the building 
                code of the State or Indian tribe, 
                respectively, to meet or exceed the target in 
                section 307(b)(2).
          (2) Validation by secretary.--Not later than 90 days 
        after a State or Indian tribe certification under 
        paragraph (1), the Secretary shall--
                  (A) determine whether the code provisions of 
                the State or Indian tribe, respectively, meet 
                the criteria specified in paragraph (1); and
                  (B) if the determination is positive, 
                validate the certification.
    (c) Improvements in Compliance With Building Energy 
codes.--
          (1) Requirement.--
                  (A) In general.--Not later than 3 years after 
                the date of a certification under subsection 
                (b), each State and Indian tribe shall certify 
                whether or not the State and Indian tribe, 
                respectively, has--
                          (i) achieved full compliance under 
                        paragraph (3) with the applicable 
                        certified State and Indian tribe 
                        building energy code or with the 
                        associated model building energy code; 
                        or
                          (ii) made significant progress under 
                        paragraph (4) toward achieving 
                        compliance with the applicable 
                        certified State and Indian tribe 
                        building energy code or with the 
                        associated model building energy code.
                  (B) Repeat certifications.--If the State or 
                Indian tribe certifies progress toward 
                achieving compliance, the State or Indian tribe 
                shall repeat the certification until the State 
                or Indian tribe certifies that the State or 
                Indian tribe has achieved full compliance, 
                respectively.
          (2) Measurement of compliance.--A certification under 
        paragraph (1) shall include documentation of the rate 
        of compliance based on--
                  (A) independent inspections of a random 
                sample of the buildings covered by the code in 
                the preceding year; or
                  (B) an alternative method that yields an 
                accurate measure of compliance.
          (3) Achievement of compliance.--A State or Indian 
        tribe shall be considered to achieve full compliance 
        under paragraph (1) if--
                  (A) at least 90 percent of building space 
                covered by the code in the preceding year 
                substantially meets all the requirements of the 
                applicable code specified in paragraph (1), or 
                achieves equivalent or greater energy savings 
                level; or
                  (B) the estimated excess energy use of 
                buildings that did not meet the applicable code 
                specified in paragraph (1) in the preceding 
                year, compared to a baseline of comparable 
                buildings that meet this code, is not more than 
                5 percent of the estimated energy use of all 
                buildings covered by this code during the 
                preceding year.
          (4) Significant progress toward achievement of 
        compliance.--A State or Indian tribe shall be 
        considered to have made significant progress toward 
        achieving compliance for purposes of paragraph (1) if 
        the State or Indian tribe--
                  (A) has developed and is implementing a plan 
                for achieving compliance during the 8-year-
                period beginning on the date of enactment of 
                this paragraph, including annual targets for 
                compliance and active training and enforcement 
                programs; and
                  (B) has met the most recent target under 
                subparagraph (A).
          (5) Validation by secretary.--Not later than 90 days 
        after a State or Indian tribe certification under 
        paragraph (1), the Secretary shall--
                  (A) determine whether the State or Indian 
                tribe has demonstrated meeting the criteria of 
                this subsection, including accurate measurement 
                of compliance; and
                  (B) if the determination is positive, 
                validate the certification.
    (d) States or Indian Tribes That Do Not Achieve 
Compliance.--
          (1) Reporting.--A State or Indian tribe that has not 
        made a certification required under subsection (b) or 
        (c) by the applicable deadline shall submit to the 
        Secretary a report on--
                  (A) the status of the State or Indian tribe 
                with respect to meeting the requirements and 
                submitting the certification; and
                  (B) a plan for meeting the requirements and 
                submitting the certification.
          (2) Federal support.--For any State or Indian tribe 
        for which the Secretary has not validated a 
        certification by a deadline under subsection (b) or 
        (c), the lack of the certification may be a 
        consideration for Federal support authorized under this 
        section for code adoption and compliance activities.
          (3) Local government.--In any State or Indian tribe 
        for which the Secretary has not validated a 
        certification under subsection (b) or (c), a local 
        government may be eligible for Federal support by 
        meeting the certification requirements of subsections 
        (b) and (c).
          (4) Annual reports by secretary.--
                  (A) In general.--The Secretary shall annually 
                submit to Congress, and publish in the Federal 
                Register, a report on--
                          (i) the status of model building 
                        energy codes;
                          (ii) the status of code adoption and 
                        compliance in the States and Indian 
                        tribes;
                          (iii) implementation of this section; 
                        and
                          (iv) improvements in energy savings 
                        over time as a result of the targets 
                        established under section 307(b)(2).
                  (B) Impacts.--The report shall include 
                estimates of impacts of past action under this 
                section, and potential impacts of further 
                action, on--
                          (i) upfront financial and 
                        construction costs, cost benefits and 
                        returns (using investment analysis), 
                        and lifetime energy use for buildings;
                          (ii) resulting energy costs to 
                        individuals and businesses; and
                          (iii) resulting overall annual 
                        building ownership and operating costs.
    (e) Technical Assistance to States and Indian Tribes.--The 
Secretary shall provide technical assistance to States and 
Indian tribes to implement the goals and requirements of this 
section, including procedures and technical analysis for States 
and Indian tribes--
          (1) to improve and implement State residential and 
        commercial building energy codes;
          (2) to demonstrate that the code provisions of the 
        States and Indian tribes achieve equivalent or greater 
        energy savings than the model building energy codes and 
        targets;
          (3) to document the rate of compliance with a 
        building energy code; and
          (4) to otherwise promote the design and construction 
        of energy efficient buildings.
    (f) Availability of Incentive Funding.--
          (1) In general.--The Secretary shall provide 
        incentive funding to States and Indian tribes--
                  (A) to implement the requirements of this 
                section;
                  (B) to improve and implement residential and 
                commercial building energy codes, including 
                increasing and verifying compliance with the 
                codes and training of State, tribal, and local 
                building code officials to implement and 
                enforce the codes; and
                  (C) to promote building energy efficiency 
                through the use of the codes.
          (2) Additional funding.--Additional funding shall be 
        provided under this subsection for implementation of a 
        plan to achieve and document full compliance with 
        residential and commercial building energy codes under 
        subsection (c)--
                  (A) to a State or Indian tribe for which the 
                Secretary has validated a certification under 
                subsection (b) or (c); and
                  (B) in a State or Indian tribe that is not 
                eligible under subparagraph (A), to a local 
                government that is eligible under this section.
          (3) Training.--Of the amounts made available under 
        this subsection, the State may use amounts required, 
        but not to exceed $750,000 for a State, to train State 
        and local building code officials to implement and 
        enforce codes described in paragraph (2).
          (4) Local governments.--States may share grants under 
        this subsection with local governments that implement 
        and enforce the codes.
    (g) Stretch Codes and Advanced Standards.--
          (1) In general.--The Secretary shall provide 
        technical and financial support for the development of 
        stretch codes and advanced standards for residential 
        and commercial buildings for use as--
                  (A) an option for adoption as a building 
                energy code by local, tribal, or State 
                governments; and
                  (B) guidelines for energy-efficient building 
                design.
          (2) Targets.--The stretch codes and advanced 
        standards shall be designed--
                  (A) to achieve substantial energy savings 
                compared to the model building energy codes; 
                and
                  (B) to meet targets under section 307(b), if 
                available, at least 3 to 6 years in advance of 
                the target years.
    (h) Studies.--The Secretary, in consultation with building 
science experts from the National Laboratories and institutions 
of higher education, designers and builders of energy-efficient 
residential and commercial buildings, code officials, and other 
stakeholders, shall undertake a study of the feasibility, 
impact, economics, and merit of--
          (1) code improvements that would require that 
        buildings be designed, sited, and constructed in a 
        manner that makes the buildings more adaptable in the 
        future to become zero-net-energy after initial 
        construction, as advances are achieved in energy-saving 
        technologies;
          (2) code procedures to incorporate measured 
        lifetimes, not just first-year energy use, in trade-
        offs and performance calculations; and
          (3) legislative options for increasing energy savings 
        from building energy codes, including additional 
        incentives for effective State and local action, and 
        verification of compliance with and enforcement of a 
        code other than by a State or local government.
    (i) Effect on Other Laws.--Nothing in this section or 
section 307 supersedes or modifies the application of sections 
321 through 346 of the Energy Policy and Conservation Act (42 
U.S.C. 6291 et seq.).
    (j) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section and section 307 
$200,000,000, to remain available until expended.

SEC. 305. FEDERAL BUILDING ENERGY EFFICIENCY STANDARDS.

    (a)(1) In General.--Not later than 2 years after the date 
of the enactment of the Energy Policy Act of 1992, the 
Secretary, after consulting with appropriate Federal agencies, 
CABO, ASHRAE, the National Association of Home Builders, the 
Illuminating Engineering Society, the American Institute of 
Architects, the National Conference of the States on Building 
Codes and Standards, and other appropriate persons, shall 
establish, by rule, Federal building energy standards that 
require in new Federal buildings those energy efficiency 
measures that are technologically feasible and economically 
justified. Such standards shall become effective no later than 
1 year after such rule is issued.
    (2) The standards established under paragraph (1) shall--
          (A) contain energy saving and renewable energy 
        specifications that meet or exceed the energy saving 
        and renewable energy specifications of the 2004 
        International Energy Conservation Code (in the case of 
        residential buildings) or ASHRAE Standard 90.1-2004 (in 
        the case of commercial buildings);
          (B) to the extent practicable, use the same format as 
        the appropriate [voluntary building energy code] model 
        building energy code; and
          (C) consider, in consultation with the Environmental 
        Protection Agency and other Federal agencies, and where 
        appropriate contain, measures with regard to radon and 
        other indoor air pollutants.

           *       *       *       *       *       *       *

    (b) Report on Comparative Standards.--The Secretary shall 
identify and describe, in the report required under section 
308, the basis for any substantive difference between the 
Federal building energy standards established under this 
section (including differences in treatment of energy 
efficiency and renewable energy) and the appropriate [voluntary 
building energy code] model building energy code.

           *       *       *       *       *       *       *


[SEC. 307. SUPPORT FOR VOLUNTARY BUILDING ENERGY CODES.

    [(a) In General.--Not later than 1 year after the date of 
the enactment of the Energy Policy Act of 1992, the Secretary, 
after consulting with the Secretary of Housing and Urban 
Development, the Secretary of Veterans Affairs, other 
appropriate Federal agencies, CABO, ASHRAE, the National 
Conference of States on Building Codes and Standards, and any 
other appropriate building codes and standards organization, 
shall support the upgrading of voluntary building energy codes 
for new residential and commercial buildings. Such support 
shall include--
          [(1) a compilation of data and other information 
        regarding building energy efficiency standards and 
        codes in the possession of the Federal Government, 
        State and local governments, and industry 
        organizations;
          [(2) assistance in improving the technical basis for 
        such standards and codes;
          [(3) assistance in determining the cost-effectiveness 
        and the technical feasibility of the energy efficiency 
        measures included in such standards and codes; and
          [(4) assistance in identifying appropriate measures 
        with regard to radon and other indoor air pollutants.
    [(b) Review.--The Secretary shall periodically review the 
technical and economic basis of voluntary building energy codes 
and, based upon ongoing research activities--
          [(1) recommend amendments to such codes including 
        measures with regard to radon and other indoor air 
        pollutants;
          [(2) seek adoption of all technologically feasible 
        and economically justified energy efficiency measures; 
        and
          [(3) otherwise participate in any industry process 
        for review and modification of such codes.]

SEC. 307. SUPPORT FOR MODEL BUILDING ENERGY CODES.

    (a) In General.--The Secretary shall support the updating 
of model building energy codes.
    (b) Targets.--
          (1) In general.--The Secretary shall support the 
        updating of the model building energy codes to enable 
        the achievement of aggregate energy savings targets 
        established under paragraph (2).
          (2) Targets.--
                  (A) In general.--The Secretary shall work 
                with State, Indian tribes, local governments, 
                nationally recognized code and standards 
                developers, and other interested parties to 
                support the updating of model building energy 
                codes by establishing one or more aggregate 
                energy savings targets to achieve the purposes 
                of this section.
                  (B) Separate targets.--The Secretary may 
                establish separate targets for commercial and 
                residential buildings.
                  (C) Baselines.--The baseline for updating 
                model building energy codes shall be the 2009 
                IECC for residential buildings and ASHRAE 
                Standard 90.1-2010 for commercial buildings.
                  (D) Specific years.--(i) In general.--Targets 
                for specific years shall be established and 
                revised by the Secretary through rulemaking and 
                coordinated with nationally recognized code and 
                standards developers at a level that--
                          (I) is at the maximum level of energy 
                        efficiency that is technologically 
                        feasible and life-cycle cost effective, 
                        while accounting for the economic 
                        considerations under paragraph (4);
                          (II) is higher than the preceding 
                        target; and
                          (III) promotes the achievement of 
                        commercial and residential high-
                        performance buildings through high 
                        performance energy efficiency (within 
                        the meaning of section 401 of the 
                        Energy Independence and Security Act of 
                        2007 (42 U.S.C. 17061)).
                  (ii) Initial targets.--Not later than 1 year 
                after the date of enactment of this clause, the 
                Secretary shall establish initial targets under 
                this subparagraph.
                  (iii) Different target years.--Subject to 
                clause (i), prior to the applicable year, the 
                Secretary may set a later target year for any 
                of the model building energy codes described in 
                subparagraph (A) if the Secretary determines 
                that a target cannot be met.
                  (iv) Small business.--When establishing 
                targets under this paragraph through 
                rulemaking, the Secretary shall ensure 
                compliance with the Small Business Regulatory 
                Enforcement Fairness Act of 1996 (5 U.S.C. 601 
                note; Public Law 104-121).
          (3) Appliance standards and other factors affecting 
        building energy use.--In establishing building code 
        targets under paragraph (2), the Secretary shall 
        develop and adjust the targets in recognition of 
        potential savings and costs relating to--
                  (A) efficiency gains made in appliances, 
                lighting, windows, insulation, and building 
                envelope sealing;
                  (B) advancement of distributed generation and 
                on-site renewable power generation 
                technologies;
                  (C) equipment improvements for heating, 
                cooling, and ventilation systems;
                  (D) building management systems and SmartGrid 
                technologies to reduce energy use; and
                  (E) other technologies, practices, and 
                building systems that the Secretary considers 
                appropriate regarding building plug load and 
                other energy uses.
          (4) Economic considerations.--In establishing and 
        revising building code targets under paragraph (2), the 
        Secretary shall consider the economic feasibility of 
        achieving the proposed targets established under this 
        section and the potential costs and savings for 
        consumers and building owners, including a return on 
        investment analysis.
    (c) Technical Assistance to Model Building Energy Code-
Setting and Standard Development Organizations.--
          (1) In general.--The Secretary shall, on a timely 
        basis, provide technical assistance to model building 
        energy code-setting and standard development 
        organizations consistent with the goals of this 
        section.
          (2) Assistance.--The assistance shall include, as 
        requested by the organizations, technical assistance 
        in--
                  (A) evaluating code or standards proposals or 
                revisions;
                  (B) building energy analysis and design 
                tools;
                  (C) building demonstrations;
                  (D) developing definitions of energy use 
                intensity and building types for use in model 
                building energy codes to evaluate the 
                efficiency impacts of the model building energy 
                codes;
                  (E) performance-based standards;
                  (F) evaluating economic considerations under 
                subsection (b)(4); and
                  (G) developing model building energy codes by 
                Indian tribes in accordance with tribal law.
          (3) Amendment proposals.--The Secretary may submit 
        timely model building energy code amendment proposals 
        to the model building energy code-setting and standard 
        development organizations, with supporting evidence, 
        sufficient to enable the model building energy codes to 
        meet the targets established under subsection (b)(2).
          (4) Analysis methodology.--The Secretary shall make 
        publicly available the entire calculation methodology 
        (including input assumptions and data) used by the 
        Secretary to estimate the energy savings of code or 
        standard proposals and revisions.
    (d) Determination.--
          (1) Revision of model building energy codes.--If the 
        provisions of the IECC or ASHRAE Standard 90.1 
        regarding building energy use are revised, the 
        Secretary shall make a preliminary determination not 
        later than 90 days after the date of the revision, and 
        a final determination not later than 15 months after 
        the date of the revision, on whether or not the 
        revision will--
                  (A) improve energy efficiency in buildings 
                compared to the existing model building energy 
                code; and
                  (B) meet the applicable targets under 
                subsection (b)(2).
          (2) Codes or standards not meeting targets.--
                  (A) In general.--If the Secretary makes a 
                preliminary determination under paragraph 
                (1)(B) that a code or standard does not meet 
                the targets established under subsection 
                (b)(2), the Secretary may at the same time 
                provide the model building energy code or 
                standard developer with proposed changes that 
                would result in a model building energy code 
                that meets the targets and with supporting 
                evidence, taking into consideration--
                          (i) whether the modified code is 
                        technically feasible and life-cycle 
                        cost effective;
                          (ii) available appliances, 
                        technologies, materials, and 
                        construction practices; and
                          (iii) the economic considerations 
                        under subsection (b)(4).
                  (B) Incorporation of changes.--
                          (i) In general.--On receipt of the 
                        proposed changes, the model building 
                        energy code or standard developer shall 
                        have an additional 270 days to accept 
                        or reject the proposed changes of the 
                        Secretary to the model building energy 
                        code or standard for the Secretary to 
                        make a final determination.
                          (ii) Final determination.--A final 
                        determination under paragraph (1) shall 
                        be on the modified model building 
                        energy code or standard.
    (e) Administration.--In carrying out this section, the 
Secretary shall--
          (1) publish notice of targets and supporting analysis 
        and determinations under this section in the Federal 
        Register to provide an explanation of and the basis for 
        such actions, including any supporting modeling, data, 
        assumptions, protocols, and cost-benefit analysis, 
        including return on investment; and
          (2) provide an opportunity for public comment on 
        targets and supporting analysis and determinations 
        under this section.
    (f) Voluntary Codes and Standards.--Notwithstanding any 
other provision of this section, any model building code or 
standard established under section 304 shall not be binding on 
a State, local government, or Indian tribe as a matter of 
Federal law.

           *       *       *       *       *       *       *

                              ----------                              


                NATIONAL ENERGY CONSERVATION POLICY ACT


                     Public Law 95-619, as Amended


An Act for the relief of Jack R. Misner.

           *       *       *       *       *       *       *



TITLE V--FEDERAL ENERGY INITIATIVES

           *       *       *       *       *       *       *


PART III--FEDERAL ENERGY MANAGEMENT

           *       *       *       *       *       *       *



SEC. 546. INCENTIVES FOR AGENCIES.

    (a) Contracts.--(1) Each agency shall establish a program 
of incentives for conserving, and otherwise making more 
efficient use of, energy as a result of entering into contracts 
under title VIII of this Act.
    (2) The Secretary shall, not later than 18 months after the 
date of the enactment of the Energy Policy Act of 1992 and 
after consultation with the Director of the Office of 
Management and Budget, the Secretary of Defense, and the 
Administrator of General Services, develop appropriate 
procedures and methods for use by agencies to implement the 
incentives referred to in paragraph (1).
    (b) Federal Energy Efficiency Fund.--(1) The Secretary 
shall establish a Federal Energy Efficiency Fund to provide 
grants to agencies to assist them in meeting the requirements 
of section 543.
    (2) Not later than June 30, 1993, the Secretary shall issue 
guidelines to be followed by agencies submitting proposals for 
such grants. All agencies shall be eligible to submit proposals 
for grants under the Fund.
    (3) The Secretary shall award grants from the Fund after a 
competitive assessment of the technical and economic 
effectiveness of each agency proposal. The Secretary shall 
consider the following factors in determining whether to 
provide funding under this subsection:
          (A) The cost-effectiveness of the project.
          (B) The amount of energy and cost savings anticipated 
        to the Federal Government.
          (C) The amount of funding committed to the project by 
        the agency requesting financial assistance.
          (D) The extent that a proposal leverages financing 
        from other non-Federal sources.
          (E) Any other factor which the Secretary determines 
        will result in the greatest amount of energy and cost 
        savings to the Federal Government.
    (4) There are authorized to be appropriated, to remain 
available to be expended, to carry out this subsection not more 
than $10,000,000 for fiscal year 1994, $50,000,000 for fiscal 
year 1995, and such sums as may be necessary for fiscal years 
thereafter.
    (c) Utility Incentive Programs.--(1) Agencies are 
authorized and encouraged to participate in programs to 
increase energy efficiency and for water conservation or the 
management of electricity demand (including measures to support 
the use of natural gas vehicles and electric vehicles or the 
fueling or charging infrastructure necessary for natural gas 
vehicles and electric vehicles) conducted by gas, water, or 
electric utilities and generally available to customers of such 
utilities.
    (2) Each agency may accept any financial incentive, goods, 
or services generally available from any such utility, to 
increase energy efficiency or to conserve water or manage 
electricity demand.
    (3) Each agency is encouraged to enter into negotiations 
with electric, water, and gas utilities to design cost-
effective demand management and conservation incentive programs 
to address the unique needs of facilities utilized by such 
agency.
    (4) If an agency satisfies the criteria which generally 
apply to other customers of a utility incentive program, such 
agency may not be denied collection of rebates or other 
incentives.

           *       *       *       *       *       *       *


TITLE VIII--ENERGY SAVINGS PERFORMANCE CONTRACTS

           *       *       *       *       *       *       *


SEC. 804. DEFINITIONS.

    For purposes of this title, the following definitions 
apply:
    (1) The term ``Federal agency'' means each authority of the 
Government of the United States, whether or not it is within or 
subject to review by another agency.
    (2) The term ``energy savings'' means--
          (A) a reduction in the cost of energy, water, or 
        wastewater treatment, from a base cost established 
        through a methodology set forth in the contract, used 
        in an existing federally owned building or buildings or 
        other federally owned facilities as a result of--
                  (i) the lease or purchase of operating 
                equipment, improvements, altered operation and 
                maintenance, or technical services;
                  (ii) the increased efficient use of existing 
                energy sources by cogeneration or heat 
                recovery, excluding any cogeneration process 
                for other than a federally owned building or 
                buildings or other federally owned facilities; 
                or
                  (iii) the increased efficient use of existing 
                water sources in either interior or exterior 
                applications;
          (B) the increased efficient use of an existing energy 
        source by cogeneration or heat recovery;
          (C) if otherwise authorized by Federal or State law 
        (including regulations), the sale or transfer of 
        electrical or thermal energy generated on-site from 
        renewable energy sources or cogeneration, but in excess 
        of Federal needs, to utilities or non-Federal energy 
        users; and
          (D) the increased efficient use of existing water 
        sources in interior or exterior applications.
    (3) The terms ``energy savings contract'' and ``energy 
savings performance contract'' mean a contract that provides 
for the performance of services for the design, acquisition, 
installation, testing, and, where appropriate, operation, 
maintenance, and repair, of an identified energy or water 
conservation measure or series of measures at 1 or more 
locations. Such contracts shall, with respect to an agency 
facility that is a public building (as such term is defined in 
section 3301 of title 40, United States Code), be in compliance 
with the prospectus requirements and procedures of section 3307 
of title 40, United States Code.
    (4) The term ``energy or water conservation measure'' 
means--
          (A) an energy conservation measure, as defined in 
        section 551; [or]
          (B) a water conservation measure that improves the 
        efficiency of water use, is life-cycle cost-effective, 
        and involves water conservation, water recycling or 
        reuse, more efficient treatment of wastewater or storm 
        water, improvements in operation or maintenance 
        efficiencies, retrofit activities, or other related 
        activities, not at a Federal hydroelectric facility[.]; 
        or
          (C) a measure to support the use of natural gas 
        vehicles and electric vehicles or the fueling or 
        charging infrastructure necessary for natural gas 
        vehicles and electric vehicles, including the use of 
        utility energy service contracts to support those 
        vehicles or infrastructure.

           *       *       *       *       *       *       *

                              ----------                              


                       ENERGY POLICY ACT OF 1992


                     Public Law 102-486, as Amended


To provide for improved energy efficiency.

           *       *       *       *       *       *       *



TITLE I--ENERGY EFFICIENCY

           *       *       *       *       *       *       *


                         Subtitle D--Industrial

[SEC. 131. ENERGY EFFICIENCY IN INDUSTRIAL FACILITIES.

    [(a) Grant Program.--
          [(1) In general.--The Secretary shall make grants to 
        industry associations to support programs to improve 
        energy efficiency in industry. In order to be eligible 
        for a grant under this subsection, an industry 
        association shall establish a voluntary energy 
        efficiency improvement target program.
          [(2) Awarding of grants.--The Secretary shall request 
        project proposals and provide annual grants on a 
        competitive basis. In evaluating grant proposals under 
        this subsection, the Secretary shall consider--
                  [(A) potential energy savings;
                  [(B) potential environmental benefits;
                  [(C) the degree of cost sharing;
                  [(D) the degree to which new and innovative 
                technologies will be encouraged;
                  [(E) the level of industry involvement;
                  [(F) estimated project cost-effectiveness; 
                and
                  [(G) the degree to which progress toward the 
                energy improvement targets can be monitored.
          [(3) Eligible projects.--Projects eligible for grants 
        under this subsection may include the following:
                  [(A) Workshops.
                  [(B) Training seminars.
                  [(C) Handbooks.
                  [(D) Newsletters.
                  [(E) Data bases.
                  [(F) Other activities approved by the 
                Secretary.
          [(4) Limitation on cost sharing.--Grants provided 
        under this subsection shall not exceed $250,000 and 
        each grant shall not exceed 75 percent of the total 
        cost of the project for which the grant is made.
          [(5) Authorization.--There are authorized to be 
        appropriated such sums as are necessary to carry out 
        this subsection.
    [(b) Award Program.--The Secretary shall establish an 
annual award program to recognize those industry associations 
or individual industrial companies that have significantly 
improved their energy efficiency.
    [(c) Report on Industrial Reporting and Voluntary 
Targets.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall, in consultation 
with affected industries, evaluate and report to the Congress 
regarding the establishment of Federally mandated energy 
efficiency reporting requirements and voluntary energy 
efficiency improvement targets for energy intensive industries. 
Such report shall include an evaluation of the costs and 
benefits of such reporting requirements and voluntary energy 
efficiency improvement targets, and recommendations regarding 
the role of such activities in improving energy efficiency in 
energy intensive industries.

[SEC. 132. PROCESS-ORIENTED INDUSTRIAL ENERGY EFFICIENCY.

    [(a) Definitions.--For the purposes of this section--
          [(1) the term ``covered industry'' means the food and 
        food products industry, lumber and wood products 
        industry, petroleum and coal products industry, and all 
        other manufacturing industries specified in Standard 
        Industrial Classification Codes 20 through 39 (or 
        successor classification codes);
          [(2) the term ``process-oriented industrial 
        assessment'' means--
                  [(A) the identification of opportunities in 
                the production process (from the introduction 
                of materials to final packaging of the product 
                for shipping) for--
                          [(i) improving energy efficiency;
                          [(ii) reducing environmental impact; 
                        and
                          [(iii) designing technological 
                        improvements to increase 
                        competitiveness and achieve cost-
                        effective product quality enhancement;
                  [(B) the identification of opportunities for 
                improving the energy efficiency of lighting, 
                heating, ventilation, air conditioning, and the 
                associated building envelope; and
                  [(C) the identification of cost-effective 
                opportunities for using renewable energy 
                technology in the production process and in the 
                systems described in subparagraph (B); and
          [(3) the term ``utility'' means any person, State 
        agency (including any municipality), or Federal agency, 
        which sells electric or gas energy to retail customers.
    [(b) Grant Program.--
          [(1) Use of funds.--The Secretary shall, to the 
        extent funds are made available for such purpose, make 
        grants to States which, consistent with State law, 
        shall be used for the following purposes:
                  [(A) To promote, through appropriate 
                institutions such as universities, nonprofit 
                organizations, State and local government 
                entities, technical centers, utilities, and 
                trade organizations, the use of energy-
                efficient technologies in covered industries.
                  [(B) To establish programs to train 
                individuals (on an industry-by-industry basis) 
                in conducting process-oriented industrial 
                assessments and to encourage the use of such 
                trained assessors.
                  [(C) To assist utilities in developing, 
                testing, and evaluating energy efficiency 
                programs and technologies for industrial 
                customers in covered industries.
          [(2) Consultation.--States receiving grants under 
        this subsection shall consult with utilities and 
        representatives of affected industries, as appropriate, 
        in determining the most effective use of such funds 
        consistent with the requirements of paragraph (1).
          [(3) Eligibility criteria.--Not later than 1 year 
        after the date of the enactment of this Act, the 
        Secretary shall establish eligibility criteria for 
        grants made pursuant to this subsection. Such criteria 
        shall require a State applying for a grant to 
        demonstrate that such State--
                  [(A) pursuant to section 111(a) of the Public 
                Utility and Regulatory Policies Act of 1978 (16 
                U.S.C. 2621(a)), has considered and made a 
                determination regarding the implementation of 
                the standards specified in paragraphs (7) and 
                (8) of section 111(d) of such Act (with respect 
                to integrated resources planning and 
                investments in conservation and demand 
                management); and
                  [(B) by legislation or regulation--
                          [(i) allows utilities to recover the 
                        costs prudently incurred in providing 
                        process-oriented industrial 
                        assessments; and
                          [(ii) encourages utilities to provide 
                        to covered industries--
                                  [(I) process-oriented 
                                industrial assessments; and
                                  [(II) financial incentives 
                                for implementing energy 
                                efficiency improvements.
          [(4) Allocation of funds.--Grants made pursuant to 
        this subsection shall be allocated each fiscal year 
        among States meeting the criteria specified in 
        paragraph (3) who have submitted applications 60 days 
        before the first day of such fiscal year. Such 
        allocation shall be made in accordance with a formula 
        to be prescribed by the Secretary based on each State's 
        share of value added in industry (as determined by the 
        Census of Manufacturers) as a percentage of the value 
        added by all such States.
          [(5) Renewal of grants.--A grant under this 
        subsection may continue to be renewed after 2 
        consecutive fiscal years during which a State receives 
        a grant under this subsection, subject to the 
        availability of funds, if--
                  [(A) the Secretary determines that the funds 
                made available to the State during the previous 
                2 years were used in a manner required under 
                paragraph (1); and
                  [(B) such State demonstrates, in a manner 
                prescribed by the Secretary, utility 
                participation in programs established pursuant 
                to this subsection.
          [(6) Coordination with other federal programs.--In 
        carrying out the functions described in paragraph (1), 
        States shall, to the extent practicable, coordinate 
        such functions with activities and programs conducted 
        by the Energy Analysis and Diagnostic Centers of the 
        Department of Energy and the Manufacturing Technology 
        Centers of the National Institute of Standards and 
        Technology.
    [(c) Other Federal Assistance.--
          [(1) Assessment criteria.--Not later than 2 years 
        after the date of the enactment of this Act, the 
        Secretary shall, by contract with nonprofit 
        organizations with expertise in process-oriented 
        industrial energy efficiency technologies, establish 
        and, as appropriate, update criteria for conducting 
        process-oriented industrial assessments on an industry-
        by-industry basis. Such criteria shall be made 
        available to State and local government, public utility 
        commissions, utilities, representatives of affected 
        process-oriented industries, and other interested 
        parties.
          [(2) Directory.--The Secretary shall establish a 
        nationwide directory of organizations offering 
        industrial energy efficiency assessments, technologies, 
        and services consistent with the purposes of this 
        section. Such directory shall be made available to 
        State governments, public utility commissions, 
        utilities, industry representatives, and other 
        interested parties.
          [(3) Award program.--The Secretary shall establish an 
        annual award program to recognize utilities operating 
        outstanding or innovative industrial energy efficiency 
        technology assistance programs.
          [(4) Meetings.--In order to further the purposes of 
        this section, the Secretary shall convene annual 
        meetings of parties interested in process-oriented 
        industrial assessments, including representatives of 
        State government, public utility commissions, 
        utilities, and affected process-oriented industries.
    [(d) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as may be necessary to carry out 
the purposes of this section.

[SEC. 133. INDUSTRIAL INSULATION AND AUDIT GUIDELINES.

    [(a) Voluntary Guidelines for Energy Efficiency Auditing 
and Instulating.--Not later than 18 months after the date of 
the enactment of this Act, the Secretary, after consultation 
with utilities, major industrial energy consumers, and 
representatives of the insulation industry, shall establish 
voluntary guidelines for--
          [(1) the conduct of energy efficiency audits of 
        industrial facilities to identify cost-effective 
        opportunities to increase energy efficiency; and
          [(2) the installation of insulation to achieve cost-
        effective increases in energy efficiency in industrial 
        facilities.
    [(b) Educational and Technical Assistance.--The Secretary 
shall conduct a program of educational and technical assistance 
to promote the use of the voluntary guidelines established 
under subsection (a).]

           *       *       *       *       *       *       *


                   TITLE XXI--ENERGY AND ENVIRONMENT

SEC. 2101. GENERAL IMPROVED ENERGY EFFICIENCY.

    (a) Program Direction.--The Secretary shall conduct a 5-
year program, in accordance with sections 3001 and 3002 of this 
Act, on cost effective technologies to improve energy 
efficiency and increase the use of renewable energy in the 
buildings, industrial, and utility sectors. Such program shall 
include a broad range of technological approaches, and shall 
include field demonstrations of sufficient scale and number to 
prove technical and economic viability to meet the goals stated 
in section 2001. Such program shall include the activities 
required under sections [2102, 2103, 2104, 2105, 2106, 2107, 
and 2108] sections 2102, 2104, 2105, 2106 and 2108 of this Act 
and section 376 of the Energy Policy and Conservation Act 
ongoing activities of a similar nature at the Department of 
Energy. Such program shall also include the activities 
conducted pursuant to the Steel and Aluminum Energy 
Conservation and Technology Competitiveness Act of 1988 (Public 
Law 100-680) and the Department of Energy Metal Casting 
Competitiveness Research Act of 1990 (Public Law 101-425).

           *       *       *       *       *       *       *


[SEC. 2103. PULP AND PAPER.

    [(a) Program Direction.--The Secretary shall conduct a 5-
year program, in accordance with sections 3001 and 3002 of this 
Act, on advanced pulp and paper technologies. Such program 
shall include activities on energy generation technologies, 
boilers, combustion processes, pulping processes (excluding de-
inking), chemical recovery, causticizing, source reduction 
processes, and other related technologies that can improve the 
energy efficiency of, and reduce the adverse environmental 
impacts of, pulp and papermaking operations. This section does 
not authorize projects involving the combustion of waste paper, 
other than gasification.
    [(b) Proposals.--Within 180 days after the date of 
enactment of this Act, the Secretary shall solicit proposals 
for conducting activities under this section.]

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[SEC. 2107. IMPROVING EFFICIENCY IN ENERGY-INTENSIVE INDUSTRIES.

    [(a) Secretarial Action.--The Secretary, in accordance with 
sections 3001 and 3002 of this Act, shall--
          [(1) pursue a research, development, demonstration 
        and commercial application program intended to improve 
        energy efficiency and productivity in energy-intensive 
        industries and industrial processes; and
          [(2) undertake joint ventures to encourage the 
        commercialization of technologies developed under 
        paragraph (1).
    [(b) Joint Ventures.--(1) The Secretary shall--
          [(A) conduct a competitive solicitation for proposals 
        from private firms and investors for such joint 
        ventures under subsection (a)(2); and
          [(B) provide financial assistance to at least five 
        such joint ventures.
    [(2) The purpose of the joint ventures shall be to design, 
test, and demonstrate changes to industrial processes that will 
result in improved energy efficiency and productivity. The 
joint ventures may also demonstrate other improvements of 
benefit to such industries so long as demonstration of energy 
efficiency improvements is the principal objective of the joint 
venture.
    [(3) In evaluating proposals for financial assistance and 
joint ventures under this section, the Secretary shall 
consider--
          [(A) whether the activities conducted under this 
        section improve the quality and energy efficiency of 
        industries or industrial processes;
          [(B) the regional distribution of the energy-
        intensive industries and industrial processes; and
          [(C) whether the proposed joint venture project would 
        be located in the region which has the energy-intensive 
        industry and industrial processes that would benefit 
        from the project.]

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                              ----------                              --
--------


                       ENERGY POLICY ACT OF 2005


                     Public Law 109-58, as Amended


   AN ACT To ensure jobs for our future with secure, affordable, and 
reliable energy.

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                       TITLE I--ENERGY EFFICIENCY

Subtitle A--Federal Programs

           *       *       *       *       *       *       *


[SEC. 106. VOLUNTARY COMMITMENTS TO REDUCE INDUSTRIAL ENERGY INTENSITY.

    [(a) Definition of Energy Intensity.--In this section, the 
term ``energy intensity'' means the primary energy consumed for 
each unit of physical output in an industrial process.
    [(b) Voluntary Agreements.--The Secretary may enter into 
voluntary agreements with one or more persons in industrial 
sectors that consume significant quantities of primary energy 
for each unit of physical output to reduce the energy intensity 
of the production activities of the persons.
    [(c) Goal.--Voluntary agreements under this section shall 
have as a goal the reduction of energy intensity by not less 
than 2.5 percent each year during the period of calendar years 
2007 through 2016.
    [(d) Recognition.--The Secretary, in cooperation with other 
appropriate Federal agencies, shall develop mechanisms to 
recognize and publicize the achievements of participants in 
voluntary agreements under this section.
    [(e) Technical Assistance.--A person that enters into an 
agreement under this section and continues to make a good faith 
effort to achieve the energy efficiency goals specified in the 
agreement shall be eligible to receive from the Secretary a 
grant or technical assistance, as appropriate, to assist in the 
achievement of those goals.
    [(f) Report.--Not later than each of June 30, 2012, and 
June 30, 2017, the Secretary shall submit to Congress a report 
that--
          [(1) evaluates the success of the voluntary 
        agreements under this section; and
          [(2) provides independent verification of a sample of 
        the energy savings estimates provided by participating 
        firms.]

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                              ----------                              


              ENERGY INDEPENDENCE AND SECURITY ACT OF 2007


                     Public Law 110-140, as Amended


AN ACT To move the United States toward greater energy independence and 
   security, to increase the production of clean renewable fuels, to 
 protect consumers, to increase the efficiency of products, buildings 
   and vehicles, to promote research on energy and deploy greenhouse 
 capture and storage options, and to improve the energy performance of 
the Federal government, and for other purposes.

           *       *       *       *       *       *       *


TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY

           *       *       *       *       *       *       *


Subtitle B--High-Performance Commercial Buildings

           *       *       *       *       *       *       *


SEC. 422. ZERO NET ENERGY COMMERCIAL BUILDINGS INITIATIVE.

           *       *       *       *       *       *       *


    (f) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section--
          (1) $20,000,000 for fiscal year 2008;
          (2) $50,000,000 for each of fiscal years 2009 and 
        2010;
          (3) $100,000,000 for each of fiscal years 2011 and 
        2012; [and
          [(4) $200,000,000 for each of fiscal years 2013 
        through 2018.]
          (4) $200,000,000 for fiscal year 2013;
          (5) $130,000,000 for fiscal year 2014; and
          (6) $100,000,000 for each of fiscal years 2015 
        through 2017.

           *       *       *       *       *       *       *


SEC. 452. [ENERGY-INTENSIVE INDUSTRIES PROGRAM] FUTURE OF INDUSTRY 
                    PROGRAM.

    (a) Definitions.--In this section:
          (1) Eligible entity.--The term ``eligible entity'' 
        means--
                  (A) an energy-intensive industry;
                  (B) a national trade association representing 
                an energy-intensive industry; or
                  (C) a person acting on behalf of 1 or more 
                energy-intensive industries or sectors, as 
                determined by the Secretary.
          (2) Energy-intensive industry.--The term ``energy-
        intensive industry'' means an industry that uses 
        significant quantities of energy as part of its primary 
        economic activities, including--
                  (A) information technology, including data 
                centers containing electrical equipment used in 
                processing, storing, and transmitting digital 
                information;
                  (B) consumer product manufacturing;
                  (C) food processing;
                  (D) materials manufacturers, including--
                          (i) aluminum;
                          (ii) chemicals;
                          (iii) forest and paper products;
                          (iv) metal casting;
                          (v) glass;
                          (vi) petroleum refining;
                          (vii) mining; and
                          (viii) steel;
                  (E) other energy-intensive industries, as 
                determined by the Secretary.
          (3) Energy service provider.--The term ``energy 
        service provider'' means any business providing 
        technology or services to improve the energy 
        efficiency, power factor, or load management of a 
        manufacturing site or other industrial process in an 
        energy-intensive industry, or any utility operating 
        under a utility energy service project.
          ([3]4) Feedstock.--The term ``feedstock'' means the 
        raw material supplied for use in manufacturing, 
        chemical, and biological processes.
          ([4]5) Partnership.--The term ``partnership'' means 
        an energy efficiency partnership established under 
        subsection (c)(1)(A).
          ([5]6) Program.--The term ``program'' means the 
        energy-intensive industries program established under 
        subsection (b).
    (b) Establishment of Program.--The Secretary shall 
establish a program under which the Secretary, in cooperation 
with energy-intensive industries and national industry trade 
associations representing the energy-intensive industries, 
shall support, research, develop, and promote the use of new 
materials processes, technologies, and techniques to optimize 
energy efficiency and the economic competitiveness of the 
United States' industrial and commercial sectors.

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    (e) Institution of Higher Education-Based Industrial 
Research and Assessment Centers.--[The Secretary] (1) In 
general._The Secretary shall provide funding to institution of 
higher education-based industrial research and assessment 
centers, whose purpose shall be--
          ([1]A) to identify opportunities for optimizing 
        energy efficiency and environmental performance 
        including assessments of sustainable manufacturing 
        goals and the implementation of information technology 
        advancements for supply chain analysis, logistics, 
        system monitoring, industrial and manufacturing 
        processes, and other purposes;
          ([2]B) to promote applications of emerging concepts 
        and technologies in small- and medium-sized 
        manufacturers;
          ([3]C) to promote research and development for the 
        use of alternative energy sources to supply heat, 
        power, and new feed stocks for energy-intensive 
        industries;
          ([4]D) to coordinate with appropriate Federal and 
        State research offices, and provide a clearinghouse for 
        industrial process and energy efficiency technical 
        assistance resources; and
          ([5]E) to coordinate with State-accredited technical 
        training centers and community colleges, while ensuring 
        appropriate services to all regions of the United 
        States.
    (2) Coordination.--
          (A) In general.--To increase the value and 
        capabilities of the industrial research and assessment 
        centers, the centers shall--
                  (i) coordinate with Manufacturing Extension 
                Partnership Centers of the National Institute 
                of Standards and Technology;
                  (ii) coordinate with the Building 
                Technologies Program of the Department of 
                Energy to provide building assessment services 
                to manufacturers;
                  (iii) increase partnerships with the National 
                Laboratories of the Department of Energy to 
                leverage the expertise and technologies of the 
                National Laboratories for national industrial 
                and manufacturing needs;
                  (iv) increase partnerships with energy 
                service providers and technology providers to 
                leverage private sector expertise and 
                accelerate deployment of new and existing 
                technologies and processes for energy 
                efficiency, power factor, and load management;
                  (v) identify opportunities for reducing 
                greenhouse gas emissions; and
                  (vi) promote sustainable manufacturing 
                practices for small- and medium-sized 
                manufacturers.
    (3) Outreach.--The Secretary shall provide funding for--
          (A) outreach activities by the industrial research 
        and assessment centers to inform small- and medium-
        sized manufacturers of the information, technologies, 
        and services available; and
          (B) coordination activities by each industrial 
        research and assessment center to leverage efforts 
        with--
                  (i) Federal and State efforts;
                  (ii) the efforts of utilities and energy 
                service providers;
                  (iii) the efforts of regional energy 
                efficiency organizations; and
                  (iv) the efforts of other industrial research 
                and assessment centers.
    (4) Workforce training.--
          (A) In general.--The Secretary shall pay the Federal 
        share of associated internship programs under which 
        students work with or for industries, manufacturers, 
        and energy service providers to implement the 
        recommendations of industrial research and assessment 
        centers.
          (B) Federal share.--The Federal share of the cost of 
        carrying out internship programs described in 
        subparagraph (A) shall be 50 percent.
    (5) Small business loans.--The Administrator of the Small 
Business Administration shall, to the maximum extent 
practicable, expedite consideration of applications from 
eligible small business concerns for loans under the Small 
Business Act (15 U.S.C. 631 et seq.) to implement 
recommendations of industrial research and assessment centers 
established under paragraph (1).
    (6) Advanced manufacturing steering committee.--The 
Secretary shall establish an advisory steering committee to 
provide recommendations to the Secretary on planning and 
implementation of the Advanced Manufacturing Office of the 
Department of Energy.
    (f) Authorization of Appropriations.--

           *       *       *       *       *       *       *

                              ----------                              


TITLE 40--PUBLIC BUILDINGS, PROPERTY, AND WORKS

           *       *       *       *       *       *       *


                Subtitle II. Public Buildings and Works

PART A.--GENERAL

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CHAPTER 33. ACQUISITION, CONSTRUCTION, AND ALTERATION

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SEC. 3307. CONGRESSIONAL APPROVAL OF PROPOSED PROJECTS.

    (a) Resolutions Required Before Appropriations May Be 
Made.--The following appropriations may be made only if the 
Committee on Environment and Public Works of the Senate and the 
Committee on Transportation and Infrastructure of the House of 
Representatives adopt resolutions approving the purpose for 
which the appropriation is made:
          (1) An appropriation to construct, alter, or acquire 
        any building to be used as a public building which 
        involves a total expenditure in excess of $1,500,000, 
        so that the equitable distribution of public buildings 
        throughout the United States with due regard for the 
        comparative urgency of need for the buildings, except 
        as provided in section 3305(b) of this title, is 
        ensured.
          (2) An appropriation to lease any space at an average 
        annual rental in excess of $1,500,000 for use for 
        public purposes.
          (3) An appropriation to alter any building, or part 
        of the building, which is under lease by the Federal 
        Government for use for a public purpose if the cost of 
        the alteration will exceed $750,000.
    (b) Transmission to Congress of Prospectus of Proposed 
Project.--To secure consideration for the approval referred to 
in subsection (a), the Administrator of General Services shall 
transmit to Congress a prospectus of the proposed facility, 
including--
          (1) a brief description of the building to be 
        constructed, altered, or acquired, or the space to be 
        leased, under this chapter;
          (2) the location of the building or space to be 
        leased and an estimate of the maximum cost to the 
        Government of the facility to be constructed, altered, 
        or acquired, or the space to be leased;
          (3) a comprehensive plan for providing space for all 
        Government officers and employees in the locality of 
        the proposed facility or the space to be leased, having 
        due regard for suitable space which may continue to be 
        available in existing Government-owned or occupied 
        buildings, especially those buildings that enhance the 
        architectural, historical, social, cultural, and 
        economic environment of the locality;
          (4) with respect to any project for the construction, 
        alteration, or acquisition of any building, a statement 
        by the Administrator that suitable space owned by the 
        Government is not available and that suitable rental 
        space is not available at a price commensurate with 
        that to be afforded through the proposed action;
          (5) a statement by the Administrator of the economic 
        and other justifications for not acquiring a building 
        identified to the Administrator under section 3303(c) 
        of this title as suitable for the public building needs 
        of the Government;
          (6) a statement of rents and other housing costs 
        currently being paid by the Government for federal 
        agencies to be housed in the building to be 
        constructed, altered, or acquired, or the space to be 
        leased; and
          (7) with respect to any prospectus for the 
        construction, alteration, or acquisition of any 
        building or space to be leased, an estimate of the 
        future energy performance of the building or space and 
        a specific description of the use of energy efficient 
        and renewable energy systems, including photovoltaic 
        systems, in carrying out the project.
    (c) Increase of Estimated Maximum Cost.--The estimated 
maximum cost of any project approved under this section as set 
forth in any prospectus may be increased by an amount equal to 
any percentage increase, as determined by the Administrator, in 
construction or alteration costs from the date the prospectus 
is transmitted to Congress. The increase authorized by this 
subsection may not exceed 10 percent of the estimated maximum 
cost.
    (d) Availability of Funds for Design Updates.--
          (1) In general.--Subject to paragraph (2), for any 
        project for which congressional approval is received 
        under subsection (a) and for which the design has been 
        substantially completed but construction has not begun, 
        the Administrator of General Services may use 
        appropriated funds to update the project design to meet 
        applicable Federal building energy efficiency standards 
        established under section 305 of the Energy 
        Conservation and Production Act (42 U.S.C. 6834) and 
        other requirements established under section 3312.
          (2) Limitation.--The use of funds under paragraph (1) 
        shall not exceed 125 percent of the estimated energy or 
        other cost savings associated with the updates as 
        determined by a life cycle cost analysis under section 
        544 of the National Energy Conservation Policy Act (42 
        U.S.C. 8254).
    ([d]e) Rescission of Approval.--If an appropriation is not 
made within one year after the date a project for construction, 
alteration, or acquisition is approved under subsection (a), 
the Committee on Environment and Public Works of the Senate or 
the Committee on Transportation and Infrastructure of the House 
of Representatives by resolution may rescinds its approval 
before an appropriation is made.
    ([e]f) Emergency Leases by the Administrator.--This section 
does not prevent the Administrator from entering into emergency 
leases during any period declared by the President to require 
emergency leasing authority. An emergency lease may not be for 
more than 180 days without approval of a prospectus for the 
lease in accordance with subsection (a).
    ([f]g) Minimum Performance Requirements for Leased Space.--
With respect to space to be leased, the Administrator shall 
include, to the maximum extent practicable, minimum performance 
requirements requiring energy efficiency and the use of 
renewable energy.
    ([g]h) Limitation on Leasing Certain Space.--
          (1) In general.--The Administrator may not lease 
        space to accommodate any of the following if the 
        average rental cost of leasing the space will exceed 
        $1,500,000:
                  (A) Computer and telecommunications 
                operations.
                  (B) Secure or sensitive activities related to 
                the national defense or security, except when 
                it would be inappropriate to locate those 
                activities in a public building or other 
                facility identified with the Government.
                  (C) A permanent courtroom, judicial chamber, 
                or administrative office for any United States 
                court.
          (2) Exception.--The Administrator may lease space 
        with respect to which paragraph (1) applies if the 
        Administrator--
                  (A) decides, for reasons set forth in 
                writing, that leasing the space is necessary to 
                meet requirements which cannot be met in public 
                buildings; and
                  (B) submits the reasons to the Committee on 
                Environment and Public Works of the Senate and 
                the Committee on Transportation and 
                Infrastructure of the House of Representatives.
    ([h]i) Dollar Amount Adjustment.--The Administrator 
annually may adjust any dollar amount referred to in this 
section to reflect a percentage increase or decrease in 
construction costs during the prior calendar year, as 
determined by the composite index of construction costs of the 
Department of Commerce. Any adjustment shall be expeditiously 
reported to the Committee on Environment and Public Works of 
the Senate and the Committee on Transportation and 
Infrastructure of the House of Representatives.

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