[Senate Report 116-117]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 220
116th Congress     }                                    {       Report
                                 SENATE
 1st Session       }                                    {      116-117

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



 
   ALL-OF-THE-ABOVE FEDERAL BUILDING ENERGY CONSERVATION ACT OF 2019

                                _______
                                

               September 25, 2019.--Ordered to be printed

                                _______
                                

  Ms. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1245]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1245) to improve energy performance in 
Federal buildings, and for other purposes, having considered 
the same, reports favorably thereon with amendments and 
recommends that the bill, as amended, do pass.

                               Amendments

    The amendments are as follows:
    On page 2, line 1, strike ``subsections (a) and (b)'' and 
insert ``subsection (a)''.
    On page 3, line 21, insert closing quotation marks and a 
semicolon after the period.
    On page 3, strike lines 22 and 23 and insert the following:

          (2) in subsection (b), by striking paragraphs (1) and 
        (2) and inserting the following:

    On page 4, line 20, strike ``(2)'' and insert ``(3)''.

                                Purpose

    The purpose of S. 1245 is to improve energy performance in 
Federal buildings.

                          Background and Need

    Since the 1973 oil embargo and every subsequent energy 
crisis, studies have shown that the U.S. could save energy and 
money by investing in energy efficiency measures. Today, 
efficient energy use and the deployment of more efficient 
technologies are critical to U.S. economic competitiveness and 
job creation. In addition, efficient energy use reduces 
pollution that would be associated with energy production.
    Nevertheless, many existing energy efficiency technologies 
and programs have yet to be installed or implemented. The 
National Academies' 2010 study, Real Prospects for Energy 
Efficiency in the United States, regarding the potential for 
energy efficiency in commercial and residential buildings, 
transportation, and manufacturing, found that energy efficiency 
could more than offset the Energy Information Administration's 
(EIA's) projected increase in U.S. energy consumption through 
2030.
    Forty percent of the nation's energy is consumed in 
buildings. The U.S. industrial sector consumes more energy than 
any other sector of the economy and the Federal Government is 
the largest single energy consumer in the U.S. This legislation 
will positively impact the energy use footprint of Federal 
buildings by encouraging the use of energy management systems, 
requiring Federal buildings to meet state or local energy codes 
when stronger, and applying a standard of 30 percent better 
than code for major renovations. The legislation also repeals 
the Federal building energy efficiency performance standards 
contained in section 305(a)(3)(D) of the Energy Conservation 
and Production Act (ECPA, Public Law 94-385).

                          Legislative History

    S. 1245 was introduced by Senators Hoeven and Manchin on 
April 30, 2019.
    Companion legislation, H.R. 2664, was introduced in the 
House of Representatives by Representatives Carter and Veasey 
on May 10, 2019, and referred to the Committee on Energy and 
Commerce and the Committee on Transportation and 
Infrastructure.
    In the 115th Congress, Senators Hoeven and Manchin 
introduced similar legislation, S. 3295, on July 26, 2018. 
Parts of the measure were included as sections 1114, 1115, and 
1116 in S. 1460, the Energy and Natural Resources Act of 2017 
(Cal. 162).
    Companion legislation, H.R. 6584, was introduced in the 
House of Representatives by Representatives Carter and Green on 
July 26, 2018, and referred to the Committee on Energy and 
Commerce and the Committee on Transportation and 
Infrastructure.
    In the 114th Congress, Senators Hoeven, Manchin, and 
Donnelly introduced similar legislation, S. 869, on March 26, 
2015. The Committee on Energy and Natural Resources held a 
hearing on S. 869 on April 30, 2015 (S. Hrg. 114 166). Parts of 
the measure were included as sections 1015, 1016, 1017, and 
1018 in S. 2012, the Energy Policy Modernization Act of 2016, 
which the Senate passed, as amended, on April 20, 2016.
    Identical language was also included as sections 431 and 
432 in S. 720, the Energy Savings and Industrial 
Competitiveness Act of 2015, introduced by Senators Portman, 
Shaheen, Ayotte, Bennet, Cantwell, Collins, Coons, Franken, 
Hoeven, Manchin, Murkowski, Warner, and Wicker on March 11, 
2015. Senators Heller and Heitkamp were added as cosponsors. 
The Committee on Energy and Natural Resources held a hearing on 
S. 720 on April 30, 2015 (S. Hrg. 114 166), and met in open 
business session on July 30, 2015, and ordered S. 720 favorably 
reported, as amended.
    In the 113th Congress, Senators Hoeven and Manchin 
introduced similar legislation, S. 1199, on June 20, 2013. 
Senator Heitkamp was added as a cosponsor on June 25, 2013. The 
Subcommittee on Energy held a hearing on S. 1199 on June 25, 
2013 (S. Hrg. 113 70).
    The Committee on Energy and Natural Resources met in open 
business session on July 16, 2019, and ordered S. 1245 
favorably reported, as amended.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on July 16, 2019, by a majority voice 
vote of a quorum present, recommends that the Senate pass S. 
1245, if amended as described herein. Senator Lee asked to be 
recorded as voting no.

                          Committee Amendments

    During its consideration of S. 1245, the Committee adopted 
amendments to make technical corrections.

                      Section-by-Section Analysis


Section. 1. Short title

    Section 1 sets forth the short title of the bill.

Sec. 2. Energy performance requirement for Federal buildings

    Section 2 amends Section 543 of the National Energy 
Conservation Policy Act (Public Law 95 619) by extending the 
current annual performance requirements for Federal buildings 
of a 2.5 percent reduction in energy use through 2027 and 
incrementally increasing the requirement to 20 percent by 2027. 
Buildings in which energy intensive activities are carried out 
may be excluded from this requirement. This section also 
directs the Secretary of Energy (Secretary) to review the 
implementation results of the energy performance requirements, 
and submit a report to Congress by December 31, 2026, with 
recommendations on such requirements for fiscal years 2028 
through 2037. This section further requires Federal agencies to 
begin installing energy and water conservation measures deemed 
to be life-cycle cost-effective by October 1, 2019. If an 
agency fails to meet this deadline, it must submit an 
explanatory report to the Secretary. The Secretary is required 
to submit a report to Congress no later than October 1, 2021, 
and every two years thereafter, describing any noncompliance 
from agencies. Section 2 also requires each Federal energy 
manager to complete a comprehensive energy and water evaluation 
for approximately 25 percent of their facilities each year. 
Facilities that meet certain criteria receive an exception from 
the comprehensive energy and water evaluation requirement. 
Finally, within two years of each evaluation, facility energy 
managers are required to implement any energy or water-savings 
measures that are deemed life-cycle cost effective.

Sec. 3. Federal building energy efficiency performance standards; 
        certification system and level for green buildings

    Section 3(a) amends section 303 of ECPA to define the term 
``major renovation.''
    Subsection (b) amends section 305(a)(2)(A) of ECPA to 
require that Federal buildings be held to the most recently 
published standards of the International Energy Conservation 
Code and/or ASHRAE Standard 90.1 2004.
    Subsection (c) amends section 305(a)(3) of ECPA to require 
the Secretary to establish more stringent revised Federal 
building energy efficiency performance standards for new 
Federal buildings and Federal buildings with major renovations 
unless demonstrated not to be lifecycle cost-effective. If 
deemed lifecycle cost-effective, new Federal buildings and 
major renovations must be designed to achieve energy 
consumption levels at least 30 percent below industry 
standards; use sustainable design principles; use water 
conservation technologies; and provide not less than 30 percent 
of hot water demand from solar hot water heaters. The 
subsection also removes the requirement that Federal buildings 
phase-out fossil fuel use by 2030.
    Subsection (d) amends section 306 of ECPA by expanding the 
scope of building energy conservation standards for new Federal 
buildings to include major renovations.

                   Cost and Budgetary Considerations

    The Congressional Budget Office estimate of the costs of 
this measure has been requested but was not received at the 
time the report was filed. When the Congressional Budget Office 
completes its cost estimate, it will be posted on the internet 
at www.cbo.gov.

                      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. 1245. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 1245, as ordered reported.

                   Congressionally Directed Spending

    S. 1245, 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 Committee did not request executive views for S. 1245.

                        Changes in Existing Law

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

            NATIONAL ENERGY CONSERVATION POLICY ACT OF 1978

Public Law 95-619, as Amended

           *       *       *       *       *       *       *



TITLE V--FEDERAL ENERGY INITIATIVE

           *       *       *       *       *       *       *


PART 3--FEDERAL ENERGY MANAGEMENT

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SECTION 543. ENERGY MANAGEMENT REQUIREMENTS.

    [(a) Energy Performance Requirement for Federal 
Buildings.--(1) Subject to paragraph (2), each agency shall 
apply energy conservation measures to, and shall improve the 
design for the construction of, the Federal buildings of the 
agency (including each industrial or laboratory facility) so 
that the energy consumption per gross square foot of the 
Federal buildings of the agency in fiscal years 2006 through 
2015 is reduced, as compared with the energy consumption per 
gross square foot of the Federal buildings of the agency in 
fiscal year 2003, by the percentage specified in the following 
table:

Fiscal Year                                         Percentage Reduction
    2006......................................................         2
    2007......................................................         4
    2008......................................................         9
    2009......................................................        12
    2010......................................................        15
    2011......................................................        18
    2012......................................................        21
    2013......................................................        24
    2014......................................................        27
    2015......................................................        30

          [(2) An agency may exclude from the requirements of 
        paragraph (1) any building, and the associated energy 
        consumption and gross square footage, in which energy 
        intensive activities are carried out. Each agency shall 
        identify and list in each report made under section 
        548(a) the buildings designated by it for such 
        exclusion.
          [(3) Not later than December 31, 2014, the Secretary 
        shall review the results of the implementation of the 
        energy performance requirement established under 
        paragraph (1) and submit to Congress recommendations 
        concerning energy performance requirements for fiscal 
        years 2016 through 2025.]
    (a) Energy Performance Requirement for Federal Buildings.--
          (1) In general.--Subject to paragraph (2), to the 
        maximum extent life cycle cost-effective, each agency 
        shall apply energy conservation measures to, and shall 
        improve the design for the construction of, the Federal 
        buildings of the agency (including each industrial or 
        laboratory facility) so that the energy consumption per 
        gross square foot of the Federal buildings of the 
        agency in fiscal years 2020 through 2027 is reduced, as 
        compared with the energy consumption per gross square 
        foot of the Federal buildings of the agency in fiscal 
        year 2018, by the percentage specified in the following 
        table:

Fiscal Year                                         Percentage Reduction
    2020......................................................       2.5
    2021......................................................         5
    2022......................................................       7.5
    2023......................................................        10
    2024......................................................      12.5
    2025......................................................        15
    2026......................................................      17.5
    2027......................................................        24

          (2) Exclusion for buildings with energy intensive 
        activities.--
                  (A) In general.--An agency may exclude from 
                the requirements of paragraph (1) any building 
                (including the associated energy consumption 
                and gross square footage of the building) in 
                which energy intensive activities are carried 
                out.
                  (B) Reports.--Each agency shall identify and 
                include in each report under section 548(a) 
                each building designated by the agency for 
                exclusion under subparagraph (A) during the 
                period covered by the report.
          (3) Recommendations.--Not later than December 31, 
        2026, the Secretary shall--
                  (A) review the results of the implementation 
                of the energy performance requirement 
                established under paragraph (1); and
                  (B) submit to Congress recommendations 
                concerning energy performance requirements for 
                fiscal years 2028 through 2037.
    (b) Energy Management Requirement for Federal Agencies.--
[(1) Not later than January 1, 2005, each agency shall, to the 
maximum extent practicable, install in Federal buildings owned 
by the UnitedStates all energy and water conservation measures 
with payback periods of less than 10 years, as determined by 
using the methods and procedures developed pursuant to section 
544.
          [(2) The Secretary may waive the requirements of this 
        subsection for any agency for such periods as the 
        Secretary may determine if the Secretary finds that the 
        agency is taking all practicable steps to meet the 
        requirements and that the requirements of this 
        subsection will pose an unacceptable burden upon the 
        agency. If the Secretary waives the requirements of 
        this subsection, the Secretary shall, as part of the 
        report required under section 548(b), notify the 
        Congress in writing with an explanation and a 
        justification of the reasons for such waiver.]
          (1) In general.--Each agency shall--
                  (A) not later than October 1, 2019, begin 
                installing in Federal buildings owned by the 
                United States all energy and water conservation 
                measures determined by the Secretary to be 
                life-cycle cost-effective; and
                  (B) complete the installation described in 
                subparagraph (A) as soon as practicable after 
                the date referred to in that subparagraph.
          (2) Explanation of noncompliance.--
                  (A) In general.--If an agency fails to comply 
                with paragraph (1), the agency shall submit to 
                the Secretary, using guidelines developed by 
                the Secretary, an explanation of the reasons 
                for the failure.
                  (B) Report to congress.--Not later than 
                October 1, 2021, and every 2 years thereafter, 
                the Secretary shall submit to Congress a report 
                describing any noncompliance with the 
                requirements of paragraph (1).
          (3) This subsection shall not apply to an agency's 
        facilities that generate or transmit electric energy or 
        to the uranium enrichment facilities operated by the 
        Department of Energy.
          (4) An agency may participate in the Environmental 
        Protection Agency's ``Green Lights'' program for 
        purposes of receiving technical assistance in complying 
        with the requirements of this section.
    (c) Exclusions.--(1)(A) An agency may exclude, from the 
energy performance requirement for a fiscal year established 
under subsection (a) of this section and the energy management 
requirement established under subsection (b) of this section, 
any Federal building or collection of Federal buildings, if the 
head of the agency finds that--
          (i) compliance with those requirements would be 
        impracticable;
          (ii) the agency has completed and submitted all 
        federally required energy management reports;
          (iii) the agency has achieved compliance with the 
        energy efficiency requirements of this chapter, the 
        Energy Policy Act of 1992, Executive orders, and other 
        Federal law; and
          (iv) the agency has implemented all practicable, life 
        cycle cost-effective projects with respect to the 
        Federal building or collection of Federal buildings to 
        be excluded.
    (B) A finding of impracticability under subparagraph (A)(i) 
shall be based on--
          (i) the energy intensiveness of activities carried 
        out in the Federal building or collection of Federal 
        buildings; or
          (ii) the fact that the Federal building or collection 
        of Federal buildings is used in the performance of a 
        national security function.
    (2) Each agency shall identify and list, in each report 
made under section 548(a), the Federal buildings designated by 
it for such exclusion. The Secretary shall review such findings 
for consistency with the standards for exclusion set forth in 
paragraph (1), and may within 90 days after receipt of the 
findings, reverse the exclusion. In the case of any such 
reversal, the agency shall comply with the requirements of 
subsections (a) and (b)(1) of this section for the building 
concerned.
    (3) Not later than 180 days after the date of enactment of 
this paragraph, the Secretary shall issue guidelines that 
establish criteria for exclusions under paragraph (1).

           *       *       *       *       *       *       *

    (f) Use of Energy and Water Efficiency Measures in Federal 
Buildings.--
          (1) Definitions.--In this subsection:
                  (A) Commissioning.--The term 
                ``commissioning'', with respect to a facility, 
                means a systematic process--
                          (i) of ensuring, using appropriate 
                        verification and documentation, during 
                        the period beginning on the initial day 
                        of the design phase of the facility and 
                        ending not earlier than 1 year after 
                        the date of completion of construction 
                        of the facility, that all facility 
                        systems perform interactively in 
                        accordance with--
                                  (I) the design documentation 
                                and intent of the facility; and
                                  (II) the operational needs of 
                                the owner of the facility, 
                                including preparation of 
                                operation personnel; and
                          (ii) the primary goal of which is to 
                        ensure fully functional systems that 
                        can be properly operated and maintained 
                        during the useful life of the facility.
                  (B) Energy manager.--
                          (i) In general.--The term ``energy 
                        manager'', with respect to a facility, 
                        means the individual who is responsible 
                        for--
                                  (I) ensuring compliance with 
                                this subsection by the 
                                facility; and
                                  (II) reducing energy use at 
                                the facility.
                          (ii) Inclusions.--The term ``energy 
                        manager'' may include--
                                  (I) a contractor of a 
                                facility;
                                  (II) a part-time employee of 
                                a facility; and
                                  (III) an individual who is 
                                responsible for multiple 
                                facilities.
                  (C) Facility.--
                          (i) In general.--The term 
                        ``facility'' means any building, 
                        installation, structure, or other 
                        property (including any applicable 
                        fixtures) owned or operated by, or 
                        constructed or manufactured and leased 
                        to, the Federal Government.
                          (ii) Inclusions.--The term 
                        ``facility'' includes--
                                  (I) a group of facilities at 
                                a single location or multiple 
                                locations managed as an 
                                integrated operation; and
                                  (II) contractor-operated 
                                facilities owned by the Federal 
                                Government.
                          (iii) Exclusions.--The term 
                        ``facility'' does not include any land 
                        or site for which the cost of utilities 
                        is not paid by the Federal Government.
                  (D) Life cycle cost effective.--The term 
                ``life cycle cost-effective'', with respect to 
                a measure, means a measure, the estimated 
                savings of which exceed the estimated costs 
                over the lifespan of the measure, as determined 
                in accordance with section 544.
                  (E) Ongoing commissioning.--The term `ongoing 
                commissioning' means an ongoing process of 
                commissioning using monitored data, the primary 
                goal of which is to ensure continuous optimum 
                performance of a facility, in accordance with 
                design or operating needs, over the useful life 
                of the facility, while meeting facility 
                occupancy requirements.
                  [(E)] (F) Payback period.--
                          (i) In general.--Subject to clause
                          (ii), the term ``payback period'', 
                        with respect to a measure, means a 
                        value equal to the quotient obtained by 
                        dividing--
                                  (I) the estimated initial 
                                implementation cost of the 
                                measure (other than financing 
                                costs); by
                                  (II) the annual cost savings 
                                resulting from the measure, 
                                including--
                                          (aa) net savings in 
                                        estimated energy and 
                                        water costs; and
                                          (bb) operations, 
                                        maintenance, repair, 
                                        replacement, and other 
                                        direct costs.
                          (ii) Modifications and exceptions.--
                        The Secretary, in guidelines issued 
                        pursuant to paragraph (6), may make 
                        such modifications and provide such 
                        exceptions to the calculation of the 
                        payback period of a measure as the 
                        Secretary determines to be appropriate 
                        to achieve the purposes of this 
                        chapter.
                  [(F)](G) Recommissioning.--The term 
                ``recommissioning'' means a process--
                          (i) of commissioning a facility or 
                        system beyond the project development 
                        and warranty phases of the facility or 
                        system; and
                          (ii) the primary goal of which is to 
                        ensure optimum performance of a 
                        facility, in accordance with design or 
                        current operating needs, over the 
                        useful life of the facility, while 
                        meeting building occupancy 
                        requirements.
                  [(G)] (H) Retrcommissioning.--The term 
                ``retrocommissioning'' means a process of 
                commissioning a facility or system that was not 
                commissioned at the time of construction of the 
                facility or system.
          (2) Facility energy managers.--
                  (A) In general.--Each Federal agency shall 
                designate an energy manager responsible for 
                implementing this subsection and reducing 
                energy use at each facility that meets criteria 
                under subparagraph (B).
                  (B) Covered facilities.--The Secretary shall 
                develop criteria, after consultation with 
                affected agencies, energy efficiency advocates, 
                and energy and utility service providers, that 
                cover, at a minimum, Federal facilities, 
                including central utility plants and 
                distribution systems and other energy intensive 
                operations, that constitute at least 75 percent 
                of facility energy use at each agency.
                  (C) Energy management system.--An energy 
                manager designated for a facility under 
                subparagraph (A) shall take into 
                consideration--
                          (i) the use of a system to manage 
                        energy use at the facility; and
                          (ii) the applicability of 
                        certification of the facility in 
                        accordance with the International 
                        Organization for Standardization 
                        standard numbered 50001 and entitled 
                        ``Energy Management Systems''.
          [(3) Energy and water evaluations.--
                  [(A) Evaluations.--Effective beginning on the 
                date that is 180 days after the date of 
                enactment of this subsection and annually 
                thereafter, energy managers shall complete, for 
                each calendar year, a comprehensive energy and 
                water evaluation for approximately 25 percent 
                of the facilities of each agency that meet the 
                criteria under paragraph (2)(B) in a manner 
                that ensures that an evaluation of each such 
                facility is completed at least once every 4 
                years.
                  [(B) Recommissioning and 
                retrocommissioning.--As part of the evaluation 
                under subparagraph (A), the energy manager 
                shall identify and assess recommissioning 
                measures (or, if the facility has never been 
                commissioned, retrocommissioning measures) for 
                each such facility.
          [(4) Implementation of identified energy and water 
        efficiency measures.--Not later than 2 years after the 
        completion of each evaluation under paragraph (3), each 
        energy manager may--
                  [(A) implement any energy- or water-saving 
                measure that the Federal agency identified in 
                the evaluation conducted under paragraph (3) 
                that is life cycle cost-effective; and
                  [(B) bundle individual measures of varying 
                paybacks together into combined projects.]
          (3) Energy and water evaluations and commissioning.--
                  (A) Evaluations.--Except as provided in 
                subparagraph (B), not later than the date that 
                is 180 days after the date of enactment of the 
                All-of-the-Above Federal Building Energy 
                Conservation Act of 2019, and annually 
                thereafter, each energy manager shall complete, 
                for the preceding calendar year, a 
                comprehensive energy and water evaluation and 
                recommissioning or retrocommissioning for 
                approximately 25 percent of the facilities of 
                the applicable agency that meet the criteria 
                under paragraph (2)(B) in a manner that ensures 
                that an evaluation of each such facility is 
                completed not less frequently than once every 4 
                years.
                  (B) Exceptions.--An evaluation and 
                recommissioning or retrocommissioning shall not 
                be required under subparagraph (A) with respect 
                to a facility that, as of the date on which the 
                evaluation and recommissioning or 
                retrocommissioning would otherwise occur--
                          (i) has had a comprehensive energy 
                        and water evaluation during the 
                        preceding 8-year period;
                          (ii)(I) has been commissioned, 
                        recommissioned, or retrocommissioned 
                        during the preceding 10-year period; or
                          (II) is under ongoing commissioning;
                          (iii) has not had a major change in 
                        function or use since the previous 
                        evaluation and recommissioning;
                          (iv) has been benchmarked with public 
                        disclosure under paragraph (8) during 
                        the preceding calendar year; and
                          (v)(I) based on the benchmarking 
                        described in clause (iv), has achieved 
                        at a facility level the most-recent 
                        cumulative energy savings target under 
                        subsection (a), as compared to the 
                        earlier of--
                                  (aa) the date of the most 
                                recent evaluation; and
                                  (bb) the date--
                                          (AA) of the most 
                                        recent commissioning, 
                                        recommissioning, or 
                                        retrocommissioning; or
                                          (BB) on which ongoing 
                                        commissioning began; or
                          (II) has a long-term contract in 
                        place guaranteeing energy savings at 
                        least as great as the energy savings 
                        target under subclause (I).
          (4) Implementation of identified energy and water 
        efficiency measures.--Not later than 2 years after the 
        completion of each evaluation under paragraph (3), each 
        energy manager shall--
                  (A) implement any energy- or water-saving 
                measure that the Federal agency identified in 
                the evaluation conducted that is life cycle 
                cost-effective; and
                  (B) bundle individual measures of varying 
                paybacks together into combined projects.
          (5) Follow up on implemented measures.--For each 
        measure implemented under paragraph (4), each energy 
        manager shall ensure that--
                  (A) equipment, including building and 
                equipment controls, is fully commissioned at 
                acceptance to be operating at design 
                specifications;
                  (B) a plan for appropriate operations, 
                maintenance, and repair of the equipment is in 
                place at acceptance and is followed;
                  (C) equipment and system performance is 
                measured during its entire life to ensure 
                proper operations, maintenance, and repair; and
                  (D) energy and water savings are measured and 
                verified.

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                 ENERGY CONSERVATION AND PRODUCTION ACT

Public Law 94-385

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TITLE III--ENERGY CONSERVATION STANDARDS FOR NEW BUILDINGS

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SEC. 303. DEFINITIONS.

    As used in this:
          (1) Administrator.--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.
          [(16)] (2) ASHRAE.--The term ``ASHRAE'' means the 
        American Society of Heating, Refrigerating, and Air-
        Conditioning Engineers.
          [(2)] (3) Building.--The term ``building'' means any 
        structure to be constructed which includes provision 
        for a heating or cooling system, or both, or for a hot 
        water system.
          [(3)] (4) Building code.--The term ``building code'' 
        means a legal instrument which is in effect in a State 
        or unit of general purpose local government, the 
        provisions of which must be adhered to if a building is 
        to be considered to be in conformance with law and 
        suitable for occupancy and use.
          [(15)] (5) CABO.--The term ``CABO'' means the Council 
        of American Building Officials.
          [(4)] (6) Commercial building.--The term ``commercial 
        building'' means any building other than a residential 
        building, including any building developed for 
        industrial or public purposes.
          [(5)] (7) Federal agency.--The term ``Federal 
        agency'' means any department, agency, corporation, or 
        other entity or instrumentality of the executive branch 
        of the Federal Government, including the United States 
        Postal Service, the Federal National Mortgage 
        Association, and the Federal Home Loan Mortgage 
        Corporation.
          [(6)] (8) Federal building.--The term ``Federal 
        building'' means any building to be constructed by, or 
        for the use of, any Federal agency. Such term shall 
        include buildings built for the purpose of being leased 
        by a Federal agency, and privatized military housing.
          [(13)] (9) Federal building energy standards.--The 
        term ``Federal building energy standards''' means 
        energy consumption objectives to be met without 
        specification of the methods, materials, or equipment 
        to be employed in achieving those objectives, but 
        including statements of the requirements, criteria, and 
        evaluation methods to be used, and any necessary 
        commentary.
          [(7)] (10) Federal financial assistance.--The term 
        ``Federal financial assistance'' means (A) any form of 
        loan, grant, guarantee, insurance, payment, rebate, 
        subsidy, or any other form of direct or indirect 
        Federal assistance (other than general or special 
        revenue sharing or formula grants made to States) 
        approved by any Federal officer or agency; or (B) any 
        loan made or purchased by any bank, savings and loan 
        association, or similar institution subject to 
        regulation by the Board of Governors of the Federal 
        Reserve System, the Federal Deposit Insurance 
        Corporation, the Comptroller of the Currency, the 
        Federal Home Loan Bank Board, the Federal Savings and 
        Loan Insurance Corporation, or the National Credit 
        Union Administration.
          (11) Major renovation.--The term ``major renovation'' 
        means a modification of the energy systems of a 
        building that is sufficiently extensive to ensure that 
        the entire building can achieve compliance with 
        applicable energy standards for new buildings, based on 
        such criteria as the Secretary shall establish, by 
        regulation.
          [(8)] (12) National institute of building sciences.--
        The term ``National Institute of Building Sciences'' 
        means the institute established by section 1701j-2 of 
        title 12.
          [(9)] (13) Residential building.--The term 
        ``residential building'' means any structure which is 
        constructed and developed for residential occupancy.
          [(10)] (14) Secretary.--The term ``Secretary'' means 
        the Secretary of Energy.
          [(11)] (15) State.--The term ``State'' includes each 
        of the several States, the District of Columbia, the 
        Commonwealth of Puerto Rico, and any territory and 
        possession of the United States.
          [(12)] (16) Unit of general purpose local 
        government.--The term ``unit of general purpose local 
        government'' means any city, county, town, 
        municipality, or other political subdivision of a State 
        (or any combination thereof), which has a building code 
        or similar authority over a particular geographic area.
          [(14)] (17) Voluntary building energy code.--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.

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SECTION 305. FEDERAL BUILDING ENERGY EFFICIENCY STANDARDS

    (a)(1) In general.--Not later than 2 years after October 
24, 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)] the most 
        recently published edition of the International Energy 
        Conservation Code (in the case of residential 
        buildings) or ASHRAE Standard 90.1 (in the case of 
        commercial buildings) on the date of enactment of the 
        All-of-the-Above Federal Building Energy Conservation 
        Act of 2019;
          (B) to the extent practicable, use the same format as 
        the appropriate voluntary 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.
    [(3)(A) Not later than 1 year after the date of enactment 
of this paragraph, the Secretary shall establish, by rule, 
revised Federal building energy efficiency performance 
standards that require that--
          [(i) if life-cycle cost-effective for new Federal 
        buildings--
                  [(I) the buildings be designed to achieve 
                energy consumption levels that are at least 30 
                percent below the levels established in the 
                version of the ASHRAE Standard or the 
                International Energy Conservation Code, as 
                appropriate, that is in effect as of the date 
                of enactment of this paragraph; and
                  [(II) sustainable design principles are 
                applied to the siting, design, and construction 
                of all new and replacement buildings;
          [(ii) if water is used to achieve energy efficiency, 
        water conservation technologies shall be applied to the 
        extent that the technologies are life-cycle cost-
        effective; and
          [(iii) if lifecycle cost-effective, as compared to 
        other reasonably available technologies, not less than 
        30 percent of the hot water demand for each new Federal 
        building or Federal building undergoing a major 
        renovation be met through the installation and use of 
        solar hot water heaters.
          [(B) Not later than 1 year after the date of approval 
        of each subsequent revision of the ASHRAE Standard or 
        the International Energy Conservation Code, as 
        appropriate, the Secretary shall determine, based on 
        the cost-effectiveness of the requirements under the 
        amendment, whether the revised standards established 
        under this paragraph should be updated to reflect the 
        amendment.]
    (3) Revised federal building energy efficiency performance 
standards; certification for green buildings.--
          (A) Revised federal building energy efficiency 
        performance standards.--
                  (i) In general.--Not later than 1 year after 
                the date of enactment of the All-of-the-Above 
                Federal Building Energy Conservation Act of 
                2019, the Secretary shall establish, by 
                regulation, revised Federal building energy 
                efficiency performance standards that require 
                that--
                          (I) unless demonstrated not to be 
                        life-cycle cost-effective for new 
                        Federal buildings and Federal buildings 
                        with major renovations--
                                  (aa) the buildings shall be 
                                designed to achieve energy 
                                consumption levels that are not 
                                less than 30 percent below the 
                                levels established in the most 
                                recently published version of 
                                the ASHRAE Standard or the 
                                International Energy 
                                Conservation Code, as 
                                appropriate, on the date of 
                                enactment of the All-of-the-
                                Above Federal Building Energy 
                                Conservation Act of 2019, 
                                unless the Secretary 
                                determines, pursuant to 
                                subparagraph (B), that a 
                                subsequent version of such a 
                                standard or code shall apply; 
                                and
                                  (bb) sustainable design 
                                principles are applied to the 
                                location, siting, design, and 
                                construction of all new Federal 
                                buildings and replacement 
                                Federal buildings;
                          (II) if water is used to achieve 
                        energy efficiency, water conservation 
                        technologies shall be applied to the 
                        extent that the technologies are life-
                        cycle cost-effective; and
                          (III) if life-cycle cost-effective, 
                        as compared to other reasonably 
                        available technologies, not less than 
                        30 percent of the hot water demand for 
                        each new Federal building or Federal 
                        building undergoing a major renovation 
                        shall be met through the installation 
                        and use of solar hot water heaters.
          (B) Updates.--Not later than 1 year after the date of 
        approval of each subsequent revision of the ASHRAE 
        Standard or the International Energy Conservation Code, 
        as appropriate, the Secretary shall determine whether 
        the revised standards established under subparagraph 
        (A) and the Federal building energy standards 
        established under paragraph (1) should be updated to 
        reflect the revisions, based on the energy savings and 
        life-cycle cost-effectiveness of the revisions.
          [(C) In the budget request] (C) Budget request.--In 
        the budget request of the Federal agency for each 
        fiscal year and each report submitted by the Federal 
        agency under section 548(a) of the National Energy 
        Conservation Policy Act (42 U.S.C. 8258(a)), the head 
        of each Federal agency shall include--
                  (i) a list of all new Federal buildings 
                owned, operated, or controlled by the Federal 
                agency; and
                  (ii) a statement specifying whether the 
                Federal buildings meet or exceed the revised 
                standards established under this paragraph.
          (D) Not later than 1 year after the date of enactment 
        of the Energy Independence and Security Act of 2007, 
        the Secretary shall establish, by rule, revised Federal 
        building energy efficiency performance standards [that 
        require that] that require the following:
                  (i) For new Federal buildings and Federal 
                buildings undergoing major renovations, with 
                respect to which the Administrator of General 
                Services is required to transmit a prospectus 
                to Congress under section 3307 of title 40, in 
                the case of public buildings (as defined in 
                section 3301 of title 40), or of at least 
                $2,500,000 in costs adjusted [annually for 
                inflation for other buildings:
                          (I) The buildings shall be designed 
                        so that the fossil fuel-generated 
                        energy consumption of the buildings is 
                        reduced, as compared with such energy 
                        consumption by a similar building in 
                        fiscal year 2003 (as measured by 
                        Commercial Buildings Energy Consumption 
                        Survey or Residential Energy 
                        Consumption Survey data from the Energy 
                        Information Agency), by the percentage 
                        specified in the following table:
[Fiscal Year                                        Percentage Reduction
    2010......................................................        55
    2015......................................................        65
    2020......................................................        80
    2025......................................................        90
    2030......................................................     100.]
                          [(II) Upon petition by an agency 
                        subject to this subparagraph, the 
                        Secretary may adjust the applicable 
                        numeric requirement under subclause (I) 
                        downward with respect to a specific 
                        building, if the head of the agency 
                        designing the building certifies in 
                        writing that meeting such requirement 
                        would be technically impracticable in 
                        light of the agency's specified 
                        functional needs for that building and 
                        the Secretary concurs with the agency's 
                        conclusion. This subclause shall not 
                        apply to the General Services 
                        Administration.
                          [(III) Sustainable design principles] 
                        annually for inflation for other 
                        buildings, sustainable design 
                        principles shall be applied to the 
                        siting, design, and construction of 
                        such buildings. Not later than 90 days 
                        after the date of enactment of the 
                        Energy Independence and Security Act of 
                        2007, the Secretary, after reviewing 
                        the findings of the Federal Director 
                        under section 436(h) of that Act, in 
                        consultation with the Administrator of 
                        General Services, and in consultation 
                        with the Secretary of Defense for 
                        considerations relating to those 
                        facilities under the custody and 
                        control of the Department of 
                        Defense,shall identify a certification 
                        system and level for green buildings 
                        that the Secretary determines to be the 
                        most likely to encourage a 
                        comprehensive and environmentally-sound 
                        approach to certification of green 
                        buildings. The identification of the 
                        certification system and level shall be 
                        based on a review of the Federal 
                        Director's findings under section 
                        17092(h) of this title and the criteria 
                        specified in clause (iii), shall 
                        identify the highest level the 
                        Secretary determines is appropriate 
                        above the minimum level required for 
                        certification under the system 
                        selected, and shall achieve results at 
                        least comparable to the system used by 
                        and highest level referenced by the 
                        General Services Administration as of 
                        the date of enactment of the Energy 
                        Independence and Security Act of 2007. 
                        Within 90 days of the completion of 
                        each study required by clause (iv), the 
                        Secretary, in consultation with the 
                        Administrator of General Services, and 
                        in consultation with the Secretary of 
                        Defense for considerations relating to 
                        those facilities under the custody and 
                        control of the Department of Defense, 
                        shall review and update the 
                        certification system and level, taking 
                        into account the conclusions of such 
                        study.
                  (ii) In establishing criteria for identifying 
                major renovations that are subject to the 
                requirements of this subparagraph, the 
                Secretary shall take into account the scope, 
                degree, and types of renovations that are 
                likely to provide significant opportunities for 
                substantial improvements in energy efficiency.
                  (iii) In identifying the green building 
                certification system and level, the Secretary 
                shall take into consideration--
                          (I) the ability and availability of 
                        assessors and auditors to independently 
                        verify the criteria and measurement of 
                        metrics at the scale necessary to 
                        implement this subparagraph;
                          (II) the ability of the applicable 
                        certification organization to collect 
                        and reflect public comment;
                          (III) the ability of the standard to 
                        be developed and revised through a 
                        consensus-based process;
                          (IV) an evaluation of the robustness 
                        of the criteria for a high-performance 
                        green building, which shall give credit 
                        for promoting--
                                  (aa) efficient and 
                                sustainable use of water, 
                                energy, and other natural 
                                resources;
                                  (bb) use of renewable energy 
                                sources;
                                  (cc) improved indoor 
                                environmental quality through 
                                enhanced indoor air quality, 
                                thermal comfort, acoustics, day 
                                lighting, pollutant source 
                                control, and use of low-
                                emission materials and building 
                                system controls; and (dd) such 
                                other criteria as the Secretary 
                                determines to be appropriate; 
                                and
                          (V) national recognition within the 
                        building industry.
                  (iv) At least once every 5 years, and in 
                accordance with section 17092 of this title, 
                the Administrator of General Services shall 
                conduct a study to evaluate and compare 
                available third-party green building 
                certification systems and levels, taking into 
                account the criteria listed in clause (iii).
                  (v) The Secretary may by rule allow Federal 
                agencies to develop internal certification 
                processes, using certified professionals, in 
                lieu of certification by the certification 
                entity identified under [clause (i)(III)] 
                clause (i). The Secretary shall include in any 
                such rule guidelines to ensure that the 
                certification process results in buildings 
                meeting the applicable certification system and 
                level identified under [clause (i)(III)] clause 
                (i). An agency employing an internal 
                certification process must continue to obtain 
                external certification by the certification 
                entity identified under [clause (i)(III)] 
                clause (i) for at least 5 percent of the total 
                number of buildings certified annually by the 
                agency.
                  (vi) With respect to privatized military 
                housing, the Secretary of Defense, after 
                consultation with the Secretary may, through 
                rulemaking, develop alternative criteria to 
                those established by [subclauses (I) and (III)] 
                of clause (i) that achieve an equivalent result 
                in terms of [energy savings, sustainable 
                design, and green building performance] 
                sustainable design and green building 
                performance.
                  (vii) In addition to any use of water 
                conservation technologies otherwise required by 
                this section, water conservation technologies 
                shall be applied to the extent that the 
                technologies are life-cycle cost-effective.

           *       *       *       *       *       *       *


SECTION 306. FEDERAL COMPLIANCE.

    (a) Procedures.--[(1) The head] (1) In general.--The head 
of each Federal agency shall adopt procedures necessary to 
[assure that new Federal buildings] ensure that new Federal 
buildings and Federal buildings with major renovations meet or 
exceed the Federal building energy standards established under 
section 305.
    [(2) The Federal] (2) Applicability.--
          (A) In general.--The Federal building energy 
        standards established under section 6834 of this title 
        shall apply to new buildings and Federal buildings with 
        major renovations under the jurisdiction of the 
        Architect of the Capitol. [The Architect shall adopt 
        procedures necessary to assure that such buildings meet 
        or exceed such standards].
          (B) Procedures.--The Architect of the Capitol shall 
        adopt procedures necessary to ensure that the buildings 
        referred to in subparagraph (A) meet or exceed the 
        standards described in that subparagraph.
    [(b) Construction of New Buildings.--The head of a Federal 
agency may expend Federal funds for the construction of a new 
Federal building] (b) Expenditures.--The head of a Federal 
agency may expend Federal funds for the construction of a new 
Federal building or a Federal building with major renovations 
only if the building meets or exceeds the appropriate Federal 
building energy standards established under section 305.

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