[Senate Report 116-72]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 174
116th Congress     }                                    {       Report
                                 SENATE
 1st Session       }                                    {       116-72

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



 
             ENERGY EFFICIENCY MATERIALS PILOT PROGRAM ACT

                                _______
                                

                August 16, 2019.--Ordered to be printed

  Filed, under authority of the order of the Senate of August 1, 2019

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 520]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 520) to require the Secretary of Energy 
to establish an energy efficiency materials pilot program, 
having considered the same, reports favorably thereon with an 
amendment and recommends that the bill, as amended, do pass.
    The amendment is as follows:
    On page 4, strike line 19 and insert the following:

    (d) Report.--No later than January 1, 2023, the Secretary 
shall submit to Congress a report on the pilot program 
established under subsection (b) that describes--
          (1) the net reduction in energy use and energy costs 
        under the pilot program; and
          (2) for each recipient of a grant under the pilot 
        program--
                  (A) the geographic location of the recipient; 
                and
                  (B) the size of the organization of the 
                recipient.
    (e) Authorization of Appropriations.--There is

                                PURPOSE

    The purpose of S. 520 is to require the Secretary of Energy 
(Secretary) to establish an energy efficiency materials pilot 
program.

                          BACKGROUND AND NEED

    Nonresidential buildings in the U.S. consume more than $200 
billion per year in energy. Among nonprofit organizations in 
the U.S., there are hundreds of thousands of museums, faith-
based organization buildings, youth centers, and other 
buildings that collectively spend in excess of $3 billion 
annually for energy. The Environmental Protection Agency 
estimates that some nonprofit organizations could reduce their 
energy costs by one-third through energy efficiency 
improvements.
    However, many energy efficiency incentive programs are 
based on tax credits and rebates that nonprofits cannot use. 
Moreover, nonprofit entities are often not able to afford the 
upfront investment needed for efficiency retrofits.
    S. 520 seeks to facilitate increased investment in energy 
efficiency in the nonprofit sector by creating a grant program 
to provide matching funds for any nonprofit that retrofits its 
building with energy efficiency improvements, including 
renewable energy generation, improved lighting, heating and air 
conditioning systems, and insulation. Nonprofit-owned buildings 
include buildings operated and owned by a nonprofit 
organization, including hospitals, youth centers, schools, 
social-welfare program facilities, faith-based organization 
buildings, and any other nonresidential and noncommercial 
structures. The criteria for awarding grants will be based on 
the energy savings expected to be achieved, the improvement's 
cost-effectiveness, an effective plan for evaluating and 
verifying the savings, financial need, and the matching 
contribution percentage.

                          LEGISLATIVE HISTORY

    S. 520 was introduced by Senators Klobuchar and Hoeven on 
February 14, 2019. Senators Ernst and Stabenow were added as 
cosponsors on May 1, 2019.
    Similar legislation, H.R. 3120, was introduced in the House 
of Representatives by Representative Cartwright on June 5, 
2019, and referred to the Energy and Commerce Committee.
    In the 115th Congress, S. 981 was introduced by Senators 
Klobuchar and Hoeven on April 27, 2017. Senators Ernst, 
Stabenow, and Casey were added as cosponsors. The measure was 
included in S. 1460, the Energy and Natural Resources Act of 
2017 (Cal. 162).
    Companion legislation, H.R. 2197, was introduced in the 
House of Representatives by Representative Cartwright on April 
27, 2017, and referred to the Energy and Commerce Committee.
    In the 114th Congress, S. 600 was introduced by Senators 
Klobuchar, Hoeven, Stabenow, Risch, Blunt, and Schatz on 
February 26, 2015. Senators Udall and Whitehouse were added as 
cosponsors. The Committee on Energy and Natural Resources held 
a hearing on S. 600 on April 30, 2015 (S. Hrg. 114-166). The 
measure was included in Amendment No. 2953, which the Senate 
agreed to on April 19, 2016, as an amendment to S. 2012, the 
Energy Policy Modernization Act of 2016, which the Senate 
passed, as amended, on April 20, 2016.
    Companion legislation, H.R. 2132, was introduced in the 
House of Representatives by Representative Cartwright on April 
30, 2015, and referred to the Energy and Commerce Committee.
    In the 113th Congress, similar legislation, S. 717, was 
introduced by Senators Klobuchar and Hoeven on April 11, 2013. 
Senators Blunt, Pryor, Risch, Schatz, and Stabenow were added 
as cosponsors. The Subcommittee on Energy held a hearing on S. 
717 on June 25, 2013 (S. Hrg. 113-70).
    The Senate Committee on Energy and Natural Resources met in 
open business session on July 16, 2019, and ordered S. 520 
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. 
520, if amended as described herein. Senator Lee asked to be 
recorded as voting no.

                          COMMITTEE AMENDMENT

    During its consideration of S. 520, the Committee adopted 
an amendment that was offered by Senator Lee. The amendment 
adds a new subsection (d) to require the Secretary to submit a 
report to Congress by January 1, 2023, that describes the net 
reduction in energy use and energy costs of the pilot program, 
and specifies the geographic location and size of the 
organization of each recipient of a grant. The amendment also 
redesignates subsection (d) and subsection (e) accordingly.

                      SECTION-BY-SECTION ANALYSIS

Section. 1. Energy efficiency materials pilot program

    Subsection (a) defines relevant terms.
    Subsection (b) requires the Secretary to establish a pilot 
program within one year of the date of enactment to award 
grants for the purpose of providing nonprofit buildings with 
energy-efficiency materials.
    Subsection (c) authorizes the Secretary to award grants 
under the pilot program.
    Subsection (d) requires the Secretary to submit a report on 
the pilot program to Congress not later than January 1, 2023. 
The report is to describe the energy reductions achieved by the 
new pilot program, as well as the location and size of the 
organizations receiving grants.
    Subsection (e) authorizes $10 million to be appropriated to 
carry out this legislation for each of fiscal years 2019 
through 2023, to remain available until expended.

                   COST AND BUDGETARY CONSIDERATIONS

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

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    S. 520 would authorize the appropriation of $10 million 
annually over the 2019-2023 period for the Department of Energy 
(DOE) to establish a pilot program to improve the energy 
efficiency of buildings owned and operated by nonprofit 
organizations. Under the bill, DOE would award grants to those 
organizations to pay for building modifications that reduce 
energy or fuel use.
    Assuming appropriation of the authorized amounts and based 
on historical spending patterns for similar activities, CBO 
estimates that implementing S. 520 would cost $32 million over 
the 2019-2024 period.
    The costs of the legislation (detailed in Table 1) fall 
within budget function 270 (energy).

                 TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER S. 520
----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, millions of dollars--
                                                      ----------------------------------------------------------
                                                        2019a   2020    2021    2022    2023    2024   2019-2024
----------------------------------------------------------------------------------------------------------------
Authorization........................................      10      10      10      10      10       0         50
Estimated Outlays....................................       0       2       5       8       9       8         32
----------------------------------------------------------------------------------------------------------------
aS. 520 would authorize the appropriation of $10 million in 2019. CBO does not estimate any outlays for that
  authorization because appropriations for 2019 have already been provided.

    The CBO staff contact for this estimate is Sofia Guo. The 
estimate was reviewed by H. Samuel Papenfuss, 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. 520. 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. 520, as ordered reported.

                   CONGRESSIONALLY DIRECTED SPENDING

    S. 520, 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 on S. 520.

                        CHANGES IN EXISTING LAW

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by the bill as ordered 
reported.

                                  [all]