[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.
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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.]
* * * * * * *
[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.]
* * * * * * *
---------- --
--------
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.
* * * * * * *
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.]
* * * * * * *
----------
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.
* * * * * * *
(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.--
* * * * * * *
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TITLE 40--PUBLIC BUILDINGS, PROPERTY, AND WORKS
* * * * * * *
Subtitle II. Public Buildings and Works
PART A.--GENERAL
* * * * * * *
CHAPTER 33. ACQUISITION, CONSTRUCTION, AND ALTERATION
* * * * * * *
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.
* * * * * * *