,,ii #aaeth ,,congress #ast ,session ,s4 #che ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #ae1 #bjag,mr4 ,portman 7for himself1 ,mrs4 ,shaheen1 ,mr4 ,coons1 ,mr4 ,wicker1 ,mr4 ,franken1 ,ms4 ,collins1 ,mr4 ,manchin1 ,mr4 ,bennet1 ,mr4 ,warner1 ,ms4 ,heitkamp1 and ,mr4 ,heller7 introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,a ,,bill ,to promote energy savings in residential buildings and industry1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,energy ,savings and ,industrial ,competitiveness ,act4 7b7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,definition of ,secretary4 ,,title ,i--,buildings ,subtitle ,a--,building energy codes ,sec4 #aja4 ,greater energy efficiency in building codes4 ,subtitle ,b--,worker training and capacity building ,sec4 #aaa4 ,building training and assessment centers4 ,sec4 #aab4 ,career skills training4 ,subtitle ,c--,school buildings ,sec4 #aba4 ,coordination of energy retrofitting assistance for schools4 ,,title ,,ii--,industrial efficiency and competitiveness ,subtitle ,a--,manufacturing energy efficiency ,sec4 #bja4 ,purposes4 ,sec4 #bjb4 ,future of ,industry program4 ,sec4 #bjc4 ,sustainable manufacturing initiative4 ,sec4 #bjd4 ,conforming amendments4 ,subtitle ,b--,supply ,star ,sec4 #baa4 ,supply ,star4 ,subtitle ,c--,extended product system rebate program ,sec4 #bba4 ,extended product system rebate program4 ,subtitle ,d--,transformer rebate program ,sec4 #bca4 ,energy efficient transformer rebate program4 ,,title ,,iii--,federal agency energy efficiency ,sec4 #cja4 ,energy-efficient and energy-saving information technologies4 ,sec4 #cjb4 ,energy efficient data centers4 ,sec4 #cjc4 ,budget-neutral demonstration program for energy and water conservation improvements at multifamily residential units4 ,,title ,,iv--,regulatory provisions ,subtitle ,a--,third-,party ,certification ,under ,energy ,star ,program ,sec4 #dja4 ,third-,party ,certification ,under ,energy ,star ,program4 ,subtitle ,b--,federal green buildings ,sec4 #daa4 ,high-performance green ,federal buildings4 ,subtitle ,c--,energy performance requirement for ,federal buildings ,sec4 #dba4 ,energy performance requirement for ,federal buildings4 ,sec4 #dbb4 ,federal building energy efficiency performance standards2 certification system and level for green buildings4 ,sec4 #dbc4 ,enhanced energy efficiency underwriting4 ,,title ,v--,miscellaneous ,sec4 #eja4 ,budgetary effects4 ,sec4 #ejb4 ,advance appropriations required4 #b4 ,definition of ,secretary ,in this ,act1 the term ,secretary means the ,secretary of ,energy4 ,i ,buildings ,a ,building energy codes #aja4 ,greater energy efficiency in building codes 7a7 ,definitions ,section #cjc of the ,energy ,conservation and ,production ,act 7#db ,u4,s4,c4 #fhcb7 is amended-- 7#a7 by striking paragraph 7#ad7 and inserting the following3 7#ad7 ,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 persons1 such as the ,,iecc or the code used by-- 7,a7 the ,council of ,american ,building ,officials1 or its legal successor1 ,international ,code ,council1 ,inc42 7,b7 the ,american ,society of ,heating1 ,refrigerating1 and ,air-,conditioning ,engineers2 or 7,c7 other appropriate organizations4 2 and 7#b7 by adding at the end the following3 7#ag7 ,,iecc ,the term ,,iecc means the ,international ,energy ,conservation ,code4 7#ah7 ,indian tribe ,the term ,indian tribe has the meaning given the term in section #d of the ,native ,american ,housing ,assistance and ,self-,determination ,act of #aiif 7#be ,u4,s4,c4 #dajc74 4 7b7 ,state building energy efficiency codes ,section #cjd of the ,energy ,conservation and ,production ,act 7#db ,u4,s4,c4 #fhcc7 is amended to read as follows3 #cjd4 ,updating ,state building energy efficiency codes 7a7 ,in general ,the ,secretary shall-- 7#a7 encourage and support the adoption of building energy codes by ,states1 ,indian tribes1 and1 as appropriate1 by local governments that meet or exceed the model building energy codes1 or achieve equivalent or greater energy savings2 and 7#b7 support full compliance with the ,state and local codes4 7b7 ,state and ,indian tribe certification of building energy code updates 7#a7 ,review and updating of codes by each ,state and ,indian tribe 7,a7 ,in general ,not later than #b years after the date on which a model building energy code is updated1 each ,state or ,indian tribe shall certify whether or not the ,state or ,indian tribe1 respectively1 has reviewed and updated the energy provisions of the building code of the ,state or ,indian tribe1 respectively4 7,b7 ,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-- 7i7 the energy savings of the updated model building energy code2 or 7ii7 the targets established under section #cjg7;b77#b74 7,c7 ,no model building energy code update ,if a model building energy code is not updated by a target date established under section #cjg7;b77#b77;,d71 each ,state or ,indian tribe shall1 not later than #b years after the specified date1 certify whether or not the ,state or ,indian tribe1 respectively1 has reviewed and updated the energy provisions of the building code of the ,state or ,indian tribe1 respectively1 to meet or exceed the target in section #cjg7;b77#b74 7#b7 ,validation by ,secretary ,not later than #ij days after a ,state or ,indian tribe certification under paragraph 7#a71 the ,secretary shall-- 7,a7 determine whether the code provisions of the ,state or ,indian tribe1 respectively1 meet the criteria specified in paragraph 7#a72 and 7,b7 if the determination is positive1 validate the certification4 7c7 ,improvements in compliance with building energy codes 7#a7 ,requirement 7,a7 ,in general ,not later than #c years after the date of a certification under subsection 7b71 each ,state and ,indian tribe shall certify whether or not the ,state and ,indian tribe1 respectively1 has-- 7i7 achieved full compliance under paragraph 7#c7 with the applicable certified ,state and ,indian tribe building energy code or with the associated model building energy code2 or 7ii7 made significant progress under paragraph 7#d7 toward achieving compliance with the applicable certified ,state and ,indian tribe building energy code or with the associated model building energy code4 7,b7 ,repeat certifications ,if the ,state or ,indian tribe certifies progress toward achieving compliance1 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 compliance1 respectively4 7#b7 ,measurement of compliance ,a certification under paragraph 7#a7 shall include documentation of the rate of compliance based on-- 7,a7 independent inspections of a random sample of the buildings covered by the code in the preceding year2 or 7,b7 an alternative method that yields an accurate measure of compliance4 7#c7 ,achievement of compliance ,a ,state or ,indian tribe shall be considered to achieve full compliance under paragraph 7#a7 if-- 7,a7 at least #ij percent of building space covered by the code in the preceding year substantially meets all the requirements of the applicable code specified in paragraph 7#a71 or achieves equivalent or greater energy savings level2 or 7,b7 the estimated excess energy use of buildings that did not meet the applicable code specified in paragraph 7#a7 in the preceding year1 compared to a baseline of comparable buildings that meet this code1 is not more than #e percent of the estimated energy use of all buildings covered by this code during the preceding year4 7#d7 ,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 7#a7 if the ,state or ,indian tribe-- 7,a7 has developed and is implementing a plan for achieving compliance during the #h-year-period beginning on the date of enactment of this paragraph1 including annual targets for compliance and active training and enforcement programs2 and 7,b7 has met the most recent target under subparagraph 7,a74 7#e7 ,validation by ,secretary ,not later than #ij days after a ,state or ,indian tribe certification under paragraph 7#a71 the ,secretary shall-- 7,a7 determine whether the ,state or ,indian tribe has demonstrated meeting the criteria of this subsection1 including accurate measurement of compliance2 and 7,b7 if the determination is positive1 validate the certification4 7d7 ,states or ,indian tribes that do not achieve compliance 7#a7 ,reporting ,a ,state or ,indian tribe that has not made a certification required under subsection 7b7 or 7c7 by the applicable deadline shall submit to the ,secretary a report on-- 7,a7 the status of the ,state or ,indian tribe with respect to meeting the requirements and submitting the certification2 and 7,b7 a plan for meeting the requirements and submitting the certification4 7#b7 ,federal support ,for any ,state or ,indian tribe for which the ,secretary has not validated a certification by a deadline under subsection 7b7 or 7c71 the lack of the certification may be a consideration for ,federal support authorized under this section for code adoption and compliance activities4 7#c7 ,local government ,in any ,state or ,indian tribe for which the ,secretary has not validated a certification under subsection 7b7 or 7c71 a local government may be eligible for ,federal support by meeting the certification requirements of subsections 7b7 and 7c74 7#d7 ,annual reports by ,secretary 7,a7 ,in general ,the ,secretary shall annually submit to ,congress1 and publish in the ,federal ,register1 a report on-- 7i7 the status of model building energy codes2 7ii7 the status of code adoption and compliance in the ,states and ,indian tribes2 7iii7 implementation of this section2 and 7iv7 improvements in energy savings over time as result of the targets established under section #cjg7;b77#b74 7,b7 ,impacts ,the report shall include estimates of impacts of past action under this section1 and potential impacts of further action1 on-- 7i7 upfront financial and construction costs1 cost benefits and returns 7using investment analysis71 and lifetime energy use for buildings2 7ii7 resulting energy costs to individuals and businesses2 and 7iii7 resulting overall annual building ownership and operating costs4 7e7 ,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 section1 including procedures and technical analysis for ,states and ,indian tribes-- 7#a7 to improve and implement ,state residential and commercial building energy codes2 7#b7 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 targets2 7#c7 to document the rate of compliance with a building energy code2 and 7#d7 to otherwise promote the design and construction of energy efficient buildings4 7f7 ,availability of incentive funding 7#a7 ,in general ,the ,secretary shall provide incentive funding to ,states and ,indian tribes-- 7,a7 to implement the requirements of this section2 7,b7 to improve and implement residential and commercial building energy codes1 including increasing and verifying compliance with the codes and training of ,state1 tribal1 and local building code officials to implement and enforce the codes2 and 7,c7 to promote building energy efficiency through the use of the codes4 7#b7 ,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 7c7-- 7,a7 to a ,state or ,indian tribe for which the ,secretary has validated a certification under subsection 7b7 or 7c72 and 7,b7 in a ,state or ,indian tribe that is not eligible under subparagraph 7,a71 to a local government that is eligible under this section4 7#c7 ,training ,of the amounts made available under this subsection1 the ,state or ,indian tribe may use amounts required1 but not to exceed #gej1jjj for a ,state1 to train ,state and local building code officials to implement and enforce codes described in paragraph 7#b74 7#d7 ,local governments ,states may share grants under this subsection with local governments that implement and enforce the codes4 7g7 ,stretch codes and advanced standards 7#a7 ,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-- 7,a7 an option for adoption as a building energy code by local1 tribal1 or ,state governments2 and 7,b7 guidelines for energy-efficient building design4 7#b7 ,targets ,the stretch codes and advanced standards shall be designed-- 7,a7 to achieve substantial energy savings compared to the model building energy codes2 and 7,b7 to meet targets under section #cjg7;b71 if available1 at least #c to #f years in advance of the target years4 7h7 ,studies ,the ,secretary1 in consultation with building science experts from the ,national ,laboratories and institutions of higher education1 designers and builders of energy-efficient residential and commercial buildings1 code officials1 and other stakeholders1 shall undertake a study of the feasibility1 impact1 economics1 and merit of-- 7#a7 code improvements that would require that buildings be designed1 sited1 and constructed in a manner that makes the buildings more adaptable in the future to become zero-net-energy after initial construction1 as advances are achieved in energy-saving technologies2 7#b7 code procedures to incorporate measured lifetimes1 not just first-year energy use1 in trade-offs and performance calculations2 and 7#c7 legislative options for increasing energy savings from building energy codes1 including additional incentives for effective ,state and local action1 and verification of compliance with and enforcement of a code other than by a ,state or local government4 7i7 ,effect on other laws ,nothing in this section or section #cjg supersedes or modifies the application of sections #cba through #cdf of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fbia et seq474 7j7 ,authorization of appropriations ,there are authorized to be appropriated to carry out this section and section #cjg #bjj1jjj1jjj1 to remain available until expended4 4 7c7 ,federal building energy efficiency standards ,section #cje of the ,energy ,conservation and ,production ,act 7#db ,u4,s4,c4 #fhcd7 is amended by striking voluntary building energy code each place it appears in subsections 7a77#b77;,b7 and 7b7 and inserting model building energy code4 7d7 ,model building energy codes ,section #cjg of the ,energy ,conservation and ,production ,act 7#db ,u4,s4,c4 #fhcf7 is amended to read as follows3 #cjg4 ,support for model building energy codes 7a7 ,in general ,the ,secretary shall support the updating of model building energy codes4 7b7 ,targets 7#a7 ,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 7#b74 7#b7 ,targets 7,a7 ,in general ,the ,secretary shall work with ,state1 ,indian tribes1 local governments1 nationally recognized code and standards developers1 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 section4 7,b7 ,separate targets ,the ,secretary may establish separate targets for commercial and residential buildings4 7,c7 ,baselines ,the baseline for updating model building energy codes shall be the #bjji ,,iecc for residential buildings and ,,ashrae ,standard #ij4a-bjaj for commercial buildings4 7,d7 ,specific years 7i7 ,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-- 7,i7 is at the maximum level of energy efficiency that is technologically feasible and life-cycle cost effective1 while accounting for the economic considerations under paragraph 7#d72 7,,ii7 is higher than the preceding target2 and 7,,iii7 promotes the achievement of commercial and residential high-performance buildings through high performance energy efficiency 7within the meaning of section #dja of the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agjfa774 7ii7 ,initial targets ,not later than #a year after the date of enactment of this clause1 the ,secretary shall establish initial targets under this subparagraph4 7iii7 ,different target years ,subject to clause 7i71 prior to the applicable year1 the ,secretary may set a later target year for any of the model building energy codes described in subparagraph 7,a7 if the ,secretary determines that a target cannot be met4 7iv7 ,small business ,when establishing targets under this paragraph through rulemaking1 the ,secretary shall ensure compliance with the ,small ,business ,regulatory ,enforcement ,fairness ,act of #aiif 7#e ,u4,s4,c4 #fja note2 ,public ,law #ajd-aba74 7#c7 ,appliance standards and other factors affecting building energy use ,in establishing building code targets under paragraph 7#b71 the ,secretary shall develop and adjust the targets in recognition of potential savings and costs relating to-- 7,a7 efficiency gains made in appliances1 lighting1 windows1 insulation1 and building envelope sealing2 7,b7 advancement of distributed generation and on-site renewable power generation technologies2 7,c7 equipment improvements for heating1 cooling1 and ventilation systems2 7,d7 building management systems and ,smart,grid technologies to reduce energy use2 and 7,e7 other technologies1 practices1 and building systems that the ,secretary considers appropriate regarding building plug load and other energy uses4 7#d7 ,economic considerations ,in establishing and revising building code targets under paragraph 7#b71 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 owners1 including a return on investment analysis4 7c7 ,technical assistance to model building energy code-,setting and standard development organizations 7#a7 ,in general ,the ,secretary shall1 on a timely basis1 provide technical assistance to model building energy code-setting and standard development organizations consistent with the goals of this section4 7#b7 ,assistance ,the assistance shall include1 as requested by the organizations1 technical assistance in-- 7,a7 evaluating code or standards proposals or revisions2 7,b7 building energy analysis and design tools2 7,c7 building demonstrations2 7,d7 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 codes2 7,e7 performance-based standards2 7,f7 evaluating economic considerations under subsection 7b77#d72 and 7,g7 developing model building energy codes by ,indian tribes in accordance with tribal law4 7#c7 ,amendment proposals ,the ,secretary may submit timely model building energy code amendment proposals to the model building energy code-setting and standard development organizations1 with supporting evidence1 sufficient to enable the model building energy codes to meet the targets established under subsection 7b77#b74 7#d7 ,analysis methodology ,the ,secretary shall make publicly available the entire calculation methodology 7including input assumptions and data7 used by the ,secretary to estimate the energy savings of code or standard proposals and revisions4 7d7 ,determination 7#a7 ,revision of model building energy codes ,if the provisions of the ,,iecc or ,,ashrae ,standard #ij4a regarding building energy use are revised1 the ,secretary shall make a preliminary determination not later than #ij days after the date of the revision1 and a final determination not later than #ae months after the date of the revision1 on whether or not the revision will-- 7,a7 improve energy efficiency in buildings compared to the existing model building energy code2 and 7,b7 meet the applicable targets under subsection 7b77#b74 7#b7 ,codes or standards not meeting targets 7,a7 ,in general ,if the ,secretary makes a preliminary determination under paragraph 7#a77;,b7 that a code or standard does not meet the targets established under subsection 7b77#b71 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 evidence1 taking into consideration-- 7i7 whether the modified code is technically feasible and life-cycle cost effective2 7ii7 available appliances1 technologies1 materials1 and construction practices2 and 7iii7 the economic considerations under subsection 7b77#d74 7,b7 ,incorporation of changes 7i7 ,in general ,on receipt of the proposed changes1 the model building energy code or standard developer shall have an additional #bgj 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 determination4 7ii7 ,final determination ,a final determination under paragraph 7#a7 shall be on the modified model building energy code or standard4 7e7 ,administration ,in carrying out this section1 the ,secretary shall-- 7#a7 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 actions1 including any supporting modeling1 data1 assumptions1 protocols1 and cost-benefit analysis1 including return on investment2 and 7#b7 provide an opportunity for public comment on targets and supporting analysis and determinations under this section4 7f7 ,voluntary codes and standards ,notwithstanding any other provision of this section1 any model building code or standard established under section #cjd shall not be binding on a ,state1 local government1 or ,indian tribe as a matter of ,federal law4 4 ,b ,worker training and capacity building #aaa4 ,building training and assessment centers 7a7 ,in general ,the ,secretary shall provide grants to institutions of higher education 7as defined in section #aja of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja77 and ,tribal ,colleges or ,universities 7as defined in section #caf7;b7 of that ,act 7#bj ,u4,s4,c4 #ajei;c7b777 to establish building training and assessment centers-- 7#a7 to identify opportunities for optimizing energy efficiency and environmental performance in buildings2 7#b7 to promote the application of emerging concepts and technologies in commercial and institutional buildings2 7#c7 to train engineers1 architects1 building scientists1 building energy permitting and enforcement officials1 and building technicians in energy-efficient design and operation2 7#d7 to assist institutions of higher education and ,tribal ,colleges or ,universities in training building technicians2 7#e7 to promote research and development for the use of alternative energy sources and distributed generation to supply heat and power for buildings1 particularly energy-intensive buildings2 and 7#f7 to coordinate with and assist ,state-accredited technical training centers1 community colleges1 ,tribal ,colleges or ,universities1 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 ,states4 7b7 ,coordination and nonduplication 7#a7 ,in general ,the ,secretary shall coordinate the program with the industrial research and assessment centers program and with other ,federal programs to avoid duplication of effort4 7#b7 ,collocation ,to the maximum extent practicable1 building1 training1 and assessment centers established under this section shall be collocated with ,industrial ,assessment ,centers4 7c7 ,authorization of ,appropriations ,there is authorized to be appropriated to carry out this section #aj1jjj1jjj1 to remain available until expended4 #aab4 ,career skills training 7a7 ,in general ,the ,secretary shall pay grants to eligible entities described in subsection 7b7 to pay the ,federal share of associated career skills training programs under which students concurrently receive classroom instruction and on-the-job training for the purpose of obtaining an industry-related certification to install energy efficient buildings technologies1 including technologies described in section #cjg7;b77#c7 of the ,energy ,conservation and ,production ,act 7#db ,u4,s4,c4 #fhcf7;b77#c774 7b7 ,eligibility ,to be eligible to obtain a grant under subsection 7a71 an entity shall be a nonprofit partnership described in section #aga7;e77#b77;,b77ii7 of the ,workforce ,investment ,act of #aiih 7#bi ,u4,s4,c4 #biaf7;e77#b77;,b77ii774 7c7 ,federal share ,the ,federal share of the cost of carrying out a career skills training program described in subsection 7a7 shall be #ej percent4 7d7 ,authorization of ,appropriations ,there is authorized to be appropriated to carry out this section #aj1jjj1jjj1 to remain available until expended4 ,c ,school buildings #aba4 ,coordination of energy retrofitting assistance for schools 7a7 ,definition of school ,in this section1 the term school means-- 7#a7 an elementary school or secondary school 7as defined in section #haja of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #ghja772 7#b7 an institution of higher education 7as defined in section #ajb7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajjb7;a7772 7#c7 a school of the defense dependents' education system under the ,defense ,dependents' ,education ,act of #aigh 7#bj ,u4,s4,c4 #iba et seq47 or established under section #bafd of title #aj1 ,united ,states ,code2 7#d7 a school operated by the ,bureau of ,indian ,affairs2 7#e7 a tribally controlled school 7as defined in section #ebab of the ,tribally ,controlled ,schools ,act of #aihh 7#be ,u4,s4,c4 #beaa772 and 7#f7 a ,tribal ,college or ,university 7as defined in section #caf7;b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajei;c7b7774 7b7 ,designation of lead agency ,the ,secretary1 acting through the ,office of ,energy ,efficiency and ,renewable ,energy1 shall act as the lead ,federal agency for coordinating and disseminating information on existing ,federal programs and assistance that may be used to help initiate1 develop1 and finance energy efficiency1 renewable energy1 and energy retrofitting projects for schools4 7c7 ,requirements ,in carrying out coordination and outreach under subsection 7b71 the ,secretary shall-- 7#a7 in consultation and coordination with the appropriate ,federal agencies1 carry out a review of existing programs and financing mechanisms 7including revolving loan funds and loan guarantees7 available in or from the ,department of ,agriculture1 the ,department of ,energy1 the ,department of ,education1 the ,department of the ,treasury1 the ,internal ,revenue ,service1 the ,environmental ,protection ,agency1 and other appropriate ,federal agencies with jurisdiction over energy financing and facilitation that are currently used or may be used to help initiate1 develop1 and finance energy efficiency1 renewable energy1 and energy retrofitting projects for schools2 7#b7 establish a ,federal cross-departmental collaborative coordination1 education1 and outreach effort to streamline communication and promote available ,federal opportunities and assistance described in paragraph 7#a71 for energy efficiency1 renewable energy1 and energy retrofitting projects that enables ,states1 local educational agencies1 and schools-- 7,a7 to use existing ,federal opportunities more effectively2 and 7,b7 to form partnerships with ,governors1 ,state energy programs1 local educational1 financial1 and energy officials1 ,state and local government officials1 nonprofit organizations1 and other appropriate entities1 to support the initiation of the projects2 7#c7 provide technical assistance for ,states1 local educational agencies1 and schools to help develop and finance energy efficiency1 renewable energy1 and energy retrofitting projects-- 7,a7 to increase the energy efficiency of buildings or facilities2 7,b7 to install systems that individually generate energy from renewable energy resources2 7,c7 to establish partnerships to leverage economies of scale and additional financing mechanisms available to larger clean energy initiatives2 or 7,d7 to promote-- 7i7 the maintenance of health1 environmental quality1 and safety in schools1 including the ambient air quality1 through energy efficiency1 renewable energy1 and energy retrofit projects2 and 7ii7 the achievement of expected energy savings and renewable energy production through proper operations and maintenance practices2 7#d7 develop and maintain a single online resource website with contact information for relevant technical assistance and support staff in the ,office of ,energy ,efficiency and ,renewable ,energy for ,states1 local educational agencies1 and schools to effectively access and use ,federal opportunities and assistance described in paragraph 7#a7 to develop energy efficiency1 renewable energy1 and energy retrofitting projects2 and 7#e7 establish a process for recognition of schools that-- 7,a7 have successfully implemented energy efficiency1 renewable energy1 and energy retrofitting projects2 and 7,b7 are willing to serve as resources for other local educational agencies and schools to assist initiation of similar efforts4 7d7 ,report ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary shall submit to ,congress a report describing the implementation of this section4 ,,ii ,industrial efficiency and competitiveness ,a ,manufacturing energy efficiency #bja4 ,purposes ,the purposes of this subtitle are-- 7#a7 to reform and reorient the industrial efficiency programs of the ,department of ,energy2 7#b7 to establish a clear and consistent authority for industrial efficiency programs of the ,department2 7#c7 to accelerate the deployment of technologies and practices that will increase industrial energy efficiency and improve productivity2 7#d7 to accelerate the development and demonstration of technologies that will assist the deployment goals of the industrial efficiency programs of the ,department and increase manufacturing efficiency2 7#e7 to stimulate domestic economic growth and improve industrial productivity and competitiveness2 and 7#f7 to strengthen partnerships between ,federal and ,state governmental agencies and the private and academic sectors4 #bjb4 ,future of ,industry program 7a7 ,in general ,section #deb of the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agaaa7 is amended by striking the section heading and inserting the following3 ,future of ,industry program4 7b7 ,definition of energy service provider ,section #deb7;a7 of the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agaaa7;a77 is amended-- 7#a7 by redesignating paragraphs 7#c7 through 7#e7 as paragraphs 7#d7 through 7#f71 respectively2 and 7#b7 by inserting after paragraph 7#b73 7#c7 ,energy service provider ,the term energy service provider means any business providing technology or services to improve the energy efficiency1 water efficiency1 power factor1 or load management of a manufacturing site or other industrial process in an energy-intensive industry1 or any utility operating under a utility energy service project4 4 7c7 ,industrial research and assessment centers ,section #deb7;e7 of the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agaaa7;e77 is amended-- 7#a7 by redesignating paragraphs 7#a7 through 7#e7 as subparagraphs 7,a7 through 7,e71 respectively1 and indenting appropriately2 7#b7 by striking ,the ,secretary and inserting the following3 7#a7 ,in general ,the ,secretary 2 7#c7 in subparagraph 7,a7 7as redesignated by paragraph 7#a771 by inserting before the semicolon at the end the following3 1 including assessments of sustainable manufacturing goals and the implementation of information technology advancements for supply chain analysis1 logistics1 system monitoring1 industrial and manufacturing processes1 and other purposes2 and 7#d7 by adding at the end the following3 7#b7 ,coordination 7,a7 ,in general ,to increase the value and capabilities of the industrial research and assessment centers1 the centers shall-- 7i7 coordinate with ,manufacturing ,extension ,partnership ,centers of the ,national ,institute of ,standards and ,technology2 7ii7 coordinate with the ,building ,technologies ,program of the ,department of ,energy to provide building assessment services to manufacturers2 7iii7 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 needs2 7iv7 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 efficiency1 power factor1 and load management2 7v7 identify opportunities for reducing greenhouse gas emissions2 and 7vi7 promote sustainable manufacturing practices for small- and medium-sized manufacturers4 7#c7 ,outreach ,the ,secretary shall provide funding for-- 7,a7 outreach activities by the industrial research and assessment centers to inform small- and medium-sized manufacturers of the information1 technologies1 and services available2 and 7,b7 coordination activities by each industrial research and assessment center to leverage efforts with-- 7i7 ,federal and ,state efforts2 7ii7 the efforts of utilities and energy service providers2 7iii7 the efforts of regional energy efficiency organizations2 and 7iv7 the efforts of other industrial research and assessment centers4 7#d7 ,workforce training 7,a7 ,in general ,the ,secretary shall pay the ,federal share of associated internship programs under which students work with or for industries1 manufacturers1 and energy service providers to implement the recommendations of industrial research and assessment centers4 7,b7 ,federal share ,the ,federal share of the cost of carrying out internship programs described in subparagraph 7,a7 shall be #ej percent4 7#e7 ,small business loans ,the ,administrator of the ,small ,business ,administration shall1 to the maximum extent practicable1 expedite consideration of applications from eligible small business concerns for loans under the ,small ,business ,act 7#ae ,u4,s4,c4 #fca et seq47 to implement recommendations of industrial research and assessment centers established under paragraph 7#a74 7#f7 ,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 ,energy4 4 #bjc4 ,sustainable manufacturing initiative 7a7 ,in general ,part ,e of title ,,iii of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fcda7 is amended by adding at the end the following3 #cgf4 ,sustainable manufacturing initiative 7a7 ,in general ,as part of the ,office of ,energy ,efficiency and ,renewable ,energy1 the ,secretary1 on the request of a manufacturer1 shall conduct onsite technical assessments to identify opportunities for-- 7#a7 maximizing the energy efficiency of industrial processes and cross-cutting systems2 7#b7 preventing pollution and minimizing waste2 7#c7 improving efficient use of water in manufacturing processes2 7#d7 conserving natural resources2 and 7#e7 achieving such other goals as the ,secretary determines to be appropriate4 7b7 ,coordination ,the ,secretary shall carry out the initiative in coordination with the private sector and appropriate agencies1 including the ,national ,institute of ,standards and ,technology1 to accelerate adoption of new and existing technologies and processes that improve energy efficiency4 7c7 ,research and development program for sustainable manufacturing and industrial technologies and processes ,as part of the industrial efficiency programs of the ,department of ,energy1 the ,secretary shall carry out a joint industry-government partnership program to research1 develop1 and demonstrate new sustainable manufacturing and industrial technologies and processes that maximize the energy efficiency of industrial plants1 reduce pollution1 and conserve natural resources4 4 7b7 ,table of contents ,the table of contents of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 prec4 #fbja7 is amended by adding at the end of the items relating to part ,e of title ,,iii the following3 ,sec4 #cgf4 ,sustainable manufacturing initiative4 4 #bjd4 ,conforming amendments 7a7 ,section #ajf of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aehaa7 is repealed4 7b7 ,sections #aca1 #acb1 #acc1 #bajc1 and #bajg of the ,energy ,policy ,act of #aiib 7#db ,u4,s4,c4 #fcdh1 #fcdi1 #fcej1 #acdec1 #acdef7 are repealed4 7c7 ,section #baja7;a7 of the ,energy ,policy ,act of #aiib 7#db ,u4,s4,c4 #acdea7;a77 is amended in the third sentence by striking sections #bajb1 #bajc1 #bajd1 #baje1 #bajf1 #bajg1 and #bajh and inserting sections #bajb1 #bajd1 #baje1 #bajf1 and #bajh of this ,act and section #cgf of the ,energy ,policy and ,conservation ,act14 ,b ,supply ,star #baa4 ,supply ,star ,the ,energy ,policy and ,conservation ,act is amended by inserting after section #cbd;,a 7#db ,u4,s4,c4 #fbid;a7 the following3 #cbd;,b4 ,supply ,star ,program 7a7 ,in general ,there is established within the ,department of ,energy a ,supply ,star program to identify and promote practices1 recognize companies1 and1 as appropriate1 recognize products that use highly efficient supply chains in a manner that conserves energy1 water1 and other resources4 7b7 ,coordination ,in carrying out the program described in subsection 7a71 the ,secretary shall-- 7#a7 consult with other appropriate agencies2 and 7#b7 coordinate efforts with the ,energy ,star program established under section #cbd;,a4 7c7 ,duties ,in carrying out the ,supply ,star program described in subsection 7a71 the ,secretary shall-- 7#a7 promote practices1 recognize companies1 and1 as appropriate1 recognize products that comply with the ,supply ,star program as the preferred practices1 companies1 and products in the marketplace for maximizing supply chain efficiency2 7#b7 work to enhance industry and public awareness of the ,supply ,star program2 7#c7 collect and disseminate data on supply chain energy resource consumption2 7#d7 develop and disseminate metrics1 processes1 and analytical tools 7including software7 for evaluating supply chain energy resource use2 7#e7 develop guidance at the sector level for improving supply chain efficiency2 7#f7 work with domestic and international organizations to harmonize approaches to analyzing supply chain efficiency1 including the development of a consistent set of tools1 templates1 calculators1 and databases2 and 7#g7 work with industry1 including small businesses1 to improve supply chain efficiency through activities that include-- 7,a7 developing and sharing best practices2 and 7,b7 providing opportunities to benchmark supply chain efficiency4 7d7 ,evaluation ,in any evaluation of supply chain efficiency carried out by the ,secretary with respect to a specific product1 the ,secretary shall consider energy consumption and resource use throughout the entire lifecycle of a product1 including production1 transport1 packaging1 use1 and disposal4 7e7 ,grants and ,incentives 7#a7 ,in general ,the ,secretary may award grants or other forms of incentives on a competitive basis to eligible entities1 as determined by the ,secretary1 for the purposes of-- 7,a7 studying supply chain energy resource efficiency2 and 7,b7 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 products4 7#b7 ,use of information ,any information or data generated as a result of the grants or incentives described in paragraph 7#a7 shall be used to inform the development of the ,supply ,star ,program4 7f7 ,training ,the ,secretary shall use funds to support professional training programs to develop and communicate methods1 practices1 and tools for improving supply chain efficiency4 7g7 ,effect of outsourcing of ,american jobs ,for purposes of this section1 the outsourcing of ,american jobs in the production of a product shall not count as a positive factor in determining supply chain efficiency4 7h7 ,authorization of ,appropriations ,there is authorized to be appropriated to carry out this section #aj1jjj1jjj for the period of fiscal years #bjah through #bjbg4 4 ,c ,extended product system rebate program #bba4 ,extended product system rebate program 7a7 ,definitions ,in this section3 7#a7 ,electric motor ,the term electric motor has the meaning given the term in section #dca4ab of title #aj1 ,code of ,federal ,regulations 7as in effect on the date of enactment of this ,act74 7#b7 ,electronic control ,the term electronic control means-- 7,a7 a power converter2 or 7,b7 a combination of a power circuit and control circuit included on #a chassis4 7#c7 ,extended product system ,the term extended product system means an electric motor and any required associated electronic control and driven load that-- 7,a7 offers variable speed or multispeed operation2 7,b7 offers partial load control that reduces input energy requirements 7as measured in kilowatt-hours7 as compared to identified base levels set by the ,secretary2 and 7,c7 7i7 has greater than #a horsepower2 and 7ii7 uses an extended product system technology1 as determined by the ,secretary4 7#d7 ,qualified extended product system 7,a7 ,in general ,the term qualified extended product system means an extended product system that-- 7i7 includes an electric motor and an electronic control2 and 7ii7 reduces the input energy 7as measured in kilowatt-hours7 required to operate the extended product system by not less than #e percent1 as compared to identified base levels set by the ,secretary4 7,b7 ,inclusions ,the term qualified extended product system includes commercial or industrial machinery or equipment that-- 7i7 7,i7 did not previously make use of the extended product system prior to the redesign described in subclause 7,,ii72 and 7,,ii7 incorporates an extended product system that has greater than #a horsepower into redesigned machinery or equipment2 and 7ii7 was previously used prior to1 and was placed back into service during1 calendar year #bjai or #bjbj4 7b7 ,establishment ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary shall establish a program to provide rebates for expenditures made by qualified entities for the purchase or installation of a qualified extended product system4 7c7 ,qualified entities 7#a7 ,eligibility requirements ,a qualified entity under this section shall be-- 7,a7 in the case of a qualified extended product system described in subsection 7a77#d77;,a71 the purchaser of the qualified extended product that is installed2 and 7,b7 in the case of a qualified extended product system described in subsection 7a77#d77;,b71 the manufacturer of the commercial or industrial machinery or equipment that incorporated the extended product system into that machinery or equipment4 7#b7 ,application ,to be eligible to receive a rebate under this section1 a qualified entity shall submit to the ,secretary-- 7,a7 an application in such form1 at such time1 and containing such information as the ,secretary may require2 and 7,b7 a certification that includes demonstrated evidence-- 7i7 that the entity is a qualified entity2 and 7ii7 7,i7 in the case of a qualified entity described in paragraph 7#a77;,a7-- 7aa7 that the qualified entity installed the qualified extended product system during the #b fiscal years following the date of enactment of this ,act2 7bb7 that the qualified extended product system meets the requirements of subsection 7a77#d77;,a72 and 7cc7 showing the serial number1 manufacturer1 and model number from the nameplate of the installed motor of the qualified entity on which the qualified extended product system was installed2 or 7,,ii7 in the case of a qualified entity described in paragraph 7#a77;,b71 demonstrated evidence-- 7aa7 that the qualified extended product system meets the requirements of subsection 7a77#d77;,b72 and 7bb7 showing the serial number1 manufacturer1 and model number from the nameplate of the installed motor of the qualified entity with which the extended product system is integrated4 7d7 ,authorized amount of rebate 7#a7 ,in general ,the ,secretary may provide to a qualified entity a rebate in an amount equal to the product obtained by multiplying-- 7,a7 an amount equal to the sum of the nameplate rated horsepower of-- 7i7 the electric motor to which the qualified extended product system is attached2 and 7ii7 the electronic control2 and 7,b7 #be4 7#b7 ,maximum aggregate amount ,a qualified entity shall not be entitled to aggregate rebates under this section in excess of #be1jjj per calendar year4 7e7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this section #e1jjj1jjj for each of the first #b full fiscal years following the date of enactment of this ,act1 to remain available until expended4 ,d ,transformer rebate program #bca4 ,energy efficient transformer rebate program 7a7 ,definitions ,in this section3 7#a7 ,qualified energy efficient transformer ,the term qualified energy efficient transformer means a transformer that meets or exceeds the applicable energy conservation standards described in the tables in subsection 7b77#b7 and paragraphs 7#a7 and 7#b7 of subsection 7c7 of section #dca4aif of title #aj1 ,code of ,federal ,regulations 7as in effect on the date of enactment of this ,act74 7#b7 ,qualified energy inefficient transformer ,the term qualified energy inefficient transformer means a transformer with an equal number of phases and capacity to a transformer described in any of the tables in subsection 7b77#b7 and paragraphs 7#a7 and 7#b7 of subsection 7c7 of section #dca4aif of title #aj1 ,code of ,federal ,regulations 7as in effect on the date of enactment of this ,act7 that-- 7,a7 does not meet or exceed the applicable energy conservation standards described in paragraph 7#a72 and 7,b7 7i7 was manufactured between ,january #a1 #aihe1 and ,december #ca1 #bjjf1 for a transformer with an equal number of phases and capacity as a transformer described in the table in subsection 7b77#b7 of section #dca4aif of title #aj1 ,code of ,federal ,regulations 7as in effect on the date of enactment of this ,act72 or 7ii7 was manufactured between ,january #a1 #aiij1 and ,december #ca1 #bjji1 for a transformer with an equal number of phases and capacity as a transformer described in the table in paragraph 7#a7 or 7#b7 of subsection 7c7 of that section 7as in effect on the date of enactment of this ,act74 7#c7 ,qualified entity ,the term qualified entity means an owner of industrial or manufacturing facilities1 commercial buildings1 or multifamily residential buildings1 a utility1 or an energy service company that fulfills the requirements of subsection 7d74 7b7 ,establishment ,not later than #ij days after the date of enactment of this ,act1 the ,secretary shall establish a program to provide rebates to qualified entities for expenditures made by the qualified entity for the replacement of a qualified energy inefficient transformer with a qualified energy efficient transformer4 7c7 ,requirements ,to be eligible to receive a rebate under this section1 an entity shall submit to the ,secretary an application in such form1 at such time1 and containing such information as the ,secretary may require1 including demonstrated evidence-- 7#a7 that the entity purchased a qualified energy efficient transformer2 7#b7 of the core loss value of the qualified energy efficient transformer2 7#c7 of the age of the qualified energy inefficient transformer being replaced2 7#d7 of the core loss value of the qualified energy inefficient transformer being replaced-- 7,a7 as measured by a qualified professional or verified by the equipment manufacturer1 as applicable2 or 7,b7 for transformers described in subsection 7a77#b77;,b77i71 as selected from a table of default values as determined by the ,secretary in consultation with applicable industry2 and 7#e7 that the qualified energy inefficient transformer has been permanently decommissioned and scrapped4 7d7 ,authorized amount of rebate ,the amount of a rebate provided under this section shall be-- 7#a7 for a #c-phase or single-phase transformer with a capacity of not less than #aj and not greater than #b1ejj kilovolt-amperes1 twice the amount equal to the difference in ,watts between the core loss value 7as measured in accordance with paragraphs 7#b7 and 7#d7 of subsection 7c77 of-- 7,a7 the qualified energy inefficient transformer2 and 7,b7 the qualified energy efficient transformer2 or 7#b7 for a transformer described in subsection 7a77#b77;,b77i71 the amount determined using a table of default rebate values by rated transformer output1 as measured in kilovolt-amperes1 as determined by the ,secretary in consultation with applicable industry4 7e7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this section #e1jjj1jjj for each of fiscal years #bjah and #bjai1 to remain available until expended4 7f7 ,termination of effectiveness ,the authority provided by this section terminates on ,december #ca1 #bjai4 ,,iii ,federal agency energy efficiency #cja4 ,energy-efficient and energy-saving information technologies ,section #edc of the ,national ,energy ,conservation ,policy ,act 7#db ,u4,s4,c4 #hbec7 is amended-- 7#a7 by redesignating the second subsection 7f7 7relating to large capital energy investments7 as subsection 7g72 and 7#b7 by adding at the end the following3 7h7 ,federal ,implementation ,strategy for ,energy-,efficient and ,energy-,saving ,information ,technologies 7#a7 ,definitions ,in this subsection3 7,a7 ,director ,the term ,director means the ,director of the ,office of ,management and ,budget4 7,b7 ,information technology ,the term information technology has the meaning given the term in section #aaaja of title #dj1 ,united ,states ,code4 7#b7 ,development of implementation strategy ,not later than #a year after the date of enactment of this subsection1 each ,federal agency shall collaborate with the ,director to develop an implementation strategy 7including best-practices and measurement and verification techniques7 for the maintenance1 purchase1 and use by the ,federal agency of energy-efficient and energy-saving information technologies4 7#c7 ,administration ,in developing an implementation strategy1 each ,federal agency shall consider-- 7,a7 advanced metering infrastructure2 7,b7 energy efficient data center strategies and methods of increasing asset and infrastructure utilization2 7,c7 advanced power management tools2 7,d7 building information modeling1 including building energy management2 and 7,e7 secure telework and travel substitution tools4 7#d7 ,performance goals 7,a7 ,in general ,not later than ,september #cj1 #bjag1 the ,director1 in consultation with the ,secretary1 shall establish performance goals for evaluating the efforts of ,federal agencies in improving the maintenance1 purchase1 and use of energy-efficient and energy-saving information technology systems4 7,b7 ,best practices ,the ,chief ,information ,officers ,council established under section #cfjc of title #dd1 ,united ,states ,code1 shall supplement the performance goals established under this paragraph with recommendations on best practices for the attainment of the performance goals1 to include a requirement for agencies to consider the use of-- 7i7 energy savings performance contracting2 and 7ii7 utility energy services contracting4 7#e7 ,reports 7,a7 ,agency reports ,each ,federal agency subject to the requirements of this subsection shall include in the report of the agency under section #ebg of the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agadc7 a description of the efforts and results of the agency under this subsection4 7,b7 ,,omb ,government efficiency reports and scorecards ,effective beginning not later than ,october #a1 #bjag1 the ,director shall include in the annual report and scorecard of the ,director required under section #ebh of the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agadd7 a description of the efforts and results of ,federal agencies under this subsection4 7,c7 ,use of existing reporting structures ,the ,director may require ,federal agencies to submit any information required to be submitted under this subsection though reporting structures in use as of the date of enactment of the ,energy ,savings and ,industrial ,competitiveness ,act4 4 #cjb4 ,energy efficient data centers ,section #dec of the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agaab7 is amended-- 7#a7 in subsection 7b7-- 7,a7 in paragraph 7#b77;,d77iv71 by striking the organization and inserting an organization2 and 7,b7 by striking paragraph 7#c72 and 7#b7 by striking subsections 7c7 through 7g7 and inserting the following3 7c7 ,stakeholder involvement 7#a7 ,in general ,the ,secretary and the ,administrator shall carry out subsection 7b7 in consultation with the information technology industry and other key stakeholders1 with the goal of producing results that accurately reflect the best knowledge in the most pertinent domains4 7#b7 ,considerations ,in carrying out consultation described in paragraph 7#a71 the ,secretary and the ,administrator shall pay particular attention to organizations that-- 7,a7 have members with expertise in energy efficiency and in the development1 operation1 and functionality of data centers1 information technology equipment1 and software1 including representatives of hardware manufacturers1 data center operators1 and facility managers2 7,b7 obtain and address input from the ,national ,laboratories 7as that term is defined in section #b of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aehja77 or any institution of higher education1 research institution1 industry association1 company1 or public interest group with applicable expertise2 7,c7 follow-- 7i7 commonly accepted procedures for the development of specifications2 and 7ii7 accredited standards development processes2 or 7,d7 have a mission to promote energy efficiency for data centers and information technology4 7d7 ,measurements and specifications ,the ,secretary and the ,administrator shall consider and assess the adequacy of the specifications1 measurements1 and benchmarks described in subsection 7b7 for use by the ,federal ,energy ,management ,program1 the ,energy ,star ,program1 and other efficiency programs of the ,department of ,energy or the ,environmental ,protection ,agency4 7e7 ,study ,the ,secretary1 in consultation with the ,administrator1 not later than #ah months after the date of enactment of the ,energy ,savings and ,industrial ,competitiveness ,act1 shall make available to the public an update to the report submitted to ,congress pursuant to section #a of the ,act of ,december #bj1 #bjjf 7,public ,law #aji-dca2 #abj ,stat4 #bibj71 entitled ,report to ,congress on ,server and ,data ,center ,energy ,efficiency and dated ,august #b1 #bjjg1 that provides-- 7#a7 a comparison and gap analysis of the estimates and projections contained in the original report with new data regarding the period from #bjjg through #bjaf2 7#b7 an analysis considering the impact of information technologies1 including virtualization and cloud computing1 in the public and private sectors2 7#c7 an evaluation of the impact of the combination of cloud platforms1 mobile devices1 social media1 and big data on data center energy usage2 and 7#d7 updated projections and recommendations for best practices through fiscal year #bjbb4 7f7 ,data center energy practitioner program 7#a7 ,in general ,the ,secretary1 in consultation with key stakeholders and the ,director of the ,office of ,management and ,budget1 shall maintain a data center energy practitioner program that provides for the certification of energy practitioners qualified to evaluate the energy usage and efficiency opportunities in ,federal data centers4 7#b7 ,evaluations ,each ,federal agency shall consider having the data centers of the agency evaluated once every #d years by energy practitioners certified pursuant to the program1 whenever practicable using certified practitioners employed by the agency4 7g7 ,open data initiative 7#a7 ,in general ,the ,secretary1 in consultation with key stakeholders and the ,director of the ,office of ,management and ,budget1 shall establish an open data initiative for ,federal data center energy usage data1 with the purpose of making the data available and accessible in a manner that encourages further data center innovation1 optimization1 and consolidation4 7#b7 ,consideration ,in establishing the initiative under paragraph 7#a71 the ,secretary shall consider using the online ,data ,center ,maturity ,model4 7h7 ,international specifications and metrics ,the ,secretary1 in consultation with key stakeholders1 shall actively participate in efforts to harmonize global specifications and metrics for data center energy efficiency4 7i7 ,data center utilization metric ,the ,secretary1 in collaboration with key stakeholders1 shall facilitate in the development of an efficiency metric that measures the energy efficiency of a data center 7including equipment and facilities74 7j7 ,protection of proprietary information ,the ,secretary and the ,administrator shall not disclose any proprietary information or trade secrets provided by any individual or company for the purposes of carrying out this section or the programs and initiatives established under this section4 4 #cjc4 ,budget-neutral demonstration program for energy and water conservation improvements at multifamily residential units 7a7 ,establishment ,the ,secretary of ,housing and ,urban ,development 7referred to in this section as the ,secretary7 shall establish a demonstration program under which1 during the period beginning on the date of enactment of this ,act1 and ending on ,september #cj1 #bjbj1 the ,secretary may enter into budget-neutral1 performance-based agreements that result in a reduction in energy or water costs with such entities as the ,secretary determines to be appropriate under which the entities shall carry out projects for energy or water conservation improvements at not more than #bj1jjj residential units in multifamily buildings participating in-- 7#a7 the project-based rental assistance program under section #h of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;f71 other than assistance provided under section #h7o7 of that ,act2 7#b7 the supportive housing for the elderly program under section #bjb of the ,housing ,act of #aiei 7#ab ,u4,s4,c4 #agjaq72 or 7#c7 the supportive housing for persons with disabilities program under section #haa7;d77#b7 of the ,cranston-,gonzalez ,national ,affordable ,housing ,act 7#db ,u4,s4,c4 #hjac7;d77#b774 7b7 ,requirements 7#a7 ,payments contingent on savings 7,a7 ,in general ,the ,secretary shall provide to an entity a payment under an agreement under this section only during applicable years for which an energy or water cost savings is achieved with respect to the applicable multifamily portfolio of properties1 as determined by the ,secretary1 in accordance with subparagraph 7,b74 7,b7 ,payment methodology 7i7 ,in general ,each agreement under this section shall include a pay-for-success provision-- 7,i7 that will serve as a payment threshold for the term of the agreement2 and 7,,ii7 pursuant to which the ,department of ,housing and ,urban ,development shall share a percentage of the savings at a level determined by the ,secretary that is sufficient to cover the administrative costs of carrying out this section4 7ii7 ,limitations ,a payment made by the ,secretary under an agreement under this section shall-- 7,i7 be contingent on documented utility savings2 and 7,,ii7 not exceed the utility savings achieved by the date of the payment1 and not previously paid1 as a result of the improvements made under the agreement4 7,c7 ,third-party verification ,savings payments made by the ,secretary under this section shall be based on a measurement and verification protocol that includes at least-- 7i7 establishment of a weather-normalized and occupancy-normalized utility consumption baseline established preretrofit2 7ii7 annual third-party confirmation of actual utility consumption and cost for owner-paid utilities2 7iii7 annual third-party validation of the tenant utility allowances in effect during the applicable year and vacancy rates for each unit type2 and 7iv7 annual third-party determination of savings to the ,secretary4 7#b7 ,term ,the term of an agreement under this section shall be not longer than #ab years4 7#c7 ,entity eligibility ,the ,secretary shall-- 7,a7 establish a competitive process for entering into agreements under this section2 and 7,b7 enter into such agreements only with entities that demonstrate significant experience relating to-- 7i7 financing and operating properties receiving assistance under a program described in subsection 7a72 7ii7 oversight of energy and water conservation programs1 including oversight of contractors2 and 7iii7 raising capital for energy and water conservation improvements from charitable organizations or private investors4 7#d7 ,geographical diversity ,each agreement entered into under this section shall provide for the inclusion of properties with the greatest feasible regional and ,state variance4 7c7 ,plan and reports 7#a7 ,plan ,not later than #ij days after the date of enactment of this ,act1 the ,secretary shall submit to the ,committees on ,appropriations of the ,house of ,representatives and the ,senate a detailed plan for the implementation of this section4 7#b7 ,reports ,not later than #a year after the date of enactment of this ,act1 and annually thereafter1 the ,secretary shall-- 7,a7 conduct an evaluation of the program under this section2 and 7,b7 submit to ,congress a report describing each evaluation conducted under subparagraph 7,a74 7d7 ,funding ,for each fiscal year during which an agreement under this section is in effect1 the ,secretary may use to carry out this section any funds appropriated to the ,secretary for the renewal of contracts under a program described in subsection 7a74 ,,iv ,regulatory provisions ,a ,third-,party ,certification ,under ,energy ,star ,program #dja4 ,third-,party ,certification ,under ,energy ,star ,program ,section #cbd;,a of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fbid;a7 is amended by adding at the end the following3 7e7 ,third-,party ,certification 7#a7 ,in general ,subject to paragraph 7#b71 not later than #ahj days after the date of enactment of this subsection1 the ,administrator shall revise the certification requirements for the labeling of consumer1 home1 and office electronic products for program partners that have complied with all requirements of the ,energy ,star program for a period of at least #ah months4 7#b7 ,administration ,in the case of a program partner described in paragraph 7#a71 the new requirements under paragraph 7#a7-- 7,a7 shall not require third-party certification for a product to be listed2 but 7,b7 may require that test data and other product information be submitted to facilitate product listing and performance verification for a sample of products4 7#c7 ,third parties ,nothing in this subsection prevents the ,administrator from using third parties in the course of the administration of the ,energy ,star program4 7#d7 ,termination 7,a7 ,in general ,subject to subparagraph 7,b71 an exemption from third-party certification provided to a program partner under paragraph 7#a7 shall terminate if the program partner is found to have violated program requirements with respect to at least #b separate models during a #b-year period4 7,b7 ,resumption ,a termination for a program partner under subparagraph 7,a7 shall cease if the program partner complies with all ,energy ,star program requirements for a period of at least #c years4 4 ,b ,federal green buildings #daa4 ,high-performance green ,federal buildings ,section #dcf7;h7 of the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agjib7;h77 is amended-- 7#a7 in the subsection heading1 by striking system and inserting systems2 7#b7 by striking paragraph 7#a7 and inserting the following3 7#a7 ,in general ,based on an ongoing review1 the ,federal ,director shall identify and shall provide to the ,secretary pursuant to section #cje7;a77#c77;,d7 of the ,energy ,conservation and ,production ,act 7#db ,u4,s4,c4 #fhcd7;a77#c77;,d771 a list of those certification systems that the ,director identifies as the most likely to encourage a comprehensive and environmentally sound approach to certification of green buildings4 2 and 7#c7 in paragraph 7#b7-- 7,a7 in the matter preceding subparagraph 7,a71 by striking system and inserting systems2 7,b7 by striking subparagraph 7,a7 and inserting the following3 7,a7 an ongoing review provided to the ,secretary pursuant to section #cje7;a77#c77;,d7 of the ,energy ,conservation and ,production ,act 7#db ,u4,s4,c4 #fhcd7;a77#c77;,d771 which shall-- 7i7 be carried out by the ,federal ,director to compare and evaluate standards2 and 7ii7 allow any developer or administrator of a rating system or certification system to be included in the review2 2 7,c7 in subparagraph 7,e77v71 by striking and after the semicolon at the end2 7,d7 in subparagraph 7,f71 by striking the period at the end and inserting a semicolon2 and 7,e7 by adding at the end the following3 7,g7 a finding that1 for all credits addressing the sourcing of grown1 harvested1 or mined materials1 the system rewards the use of products that have obtained certifications of responsible sourcing1 such as certifications provided by the ,sustainable ,forestry ,initiative1 the ,forest ,stewardship ,council1 the ,american ,tree ,farm ,system1 or the ,programme for the ,endorsement of ,forest ,certification2 and 7,h7 a finding that the system incorporates life-cycle assessment as a credit pathway4 4 ,c ,energy performance requirement for ,federal buildings #dba4 ,energy performance requirement for ,federal buildings ,section #edc of the ,national ,energy ,conservation ,policy ,act 7#db ,u4,s4,c4 #hbec7 is amended-- 7#a7 by striking subsection 7a7 and inserting the following3 7a7 ,energy performance requirement for ,federal buildings 7#a7 ,requirement ,subject to paragraph 7#b71 each agency shall apply energy conservation measures to1 and shall improve the design for the construction of1 the ,federal buildings of the agency 7including each industrial or laboratory facility7 so that the energy consumption per gross square foot of the ,federal buildings of the agency in fiscal years #bjjf through #bjag is reduced1 as compared with the energy consumption per gross square foot of the ,federal buildings of the agency in fiscal year #bjjc1 by the percentage specified in the following table3 ,percentage,fiscal ,year,reduction#bjjfbbjjgdbjjhibjjiabbja jaebjaaahbjabbabjacbdbjadbgbjaecjbjafccb jagcf4 7#b7 ,exclusion for buildings with energy intensive activities 7,a7 ,in general ,an agency may exclude from the requirements of paragraph 7#a7 any building 7including the associated energy consumption and gross square footage7 in which energy intensive activities are carried out4 7,b7 ,reports ,each agency shall identify and list in each report made under section #edh7;a7 the buildings designated by the agency for exclusion under subparagraph 7,a74 7#c7 ,review ,not later than ,december #ca1 #bjag1 the ,secretary shall-- 7,a7 review the results of the implementation of the energy performance requirements established under paragraph 7#a72 and 7,b7 based on the review conducted under subparagraph 7,a71 submit to ,congress a report that addresses the feasibility of requiring each agency to apply energy conservation measures to1 and improve the design for the construction of1 the ,federal buildings of the agency 7including each industrial or laboratory facility7 so that the energy consumption per gross square foot of the ,federal buildings of the agency in each of fiscal years #bjah through #bjcj is reduced1 as compared with the energy consumption per gross square foot of the ,federal buildings of the agency in the prior fiscal year1 by #c percent4 2 and 7#b7 in subsection 7f7-- 7,a7 in paragraph 7#a7-- 7i7 by redesignating subparagraphs 7,e71 7,f71 and 7,g7 as subparagraphs 7,f71 7,g71 and 7,h71 respectively2 and 7ii7 by inserting after subparagraph 7,d7 the following3 7,e7 ,ongoing commissioning ,the term ongoing commissioning means an ongoing process of commissioning using monitored data1 the primary goal of which is to ensure continuous optimum performance of a facility1 in accordance with design or operating needs1 over the useful life of the facility1 while meeting facility occupancy requirements4 2 7,b7 in paragraph 7#b71 by adding at the end the following3 7,c7 ,energy management system ,an energy manager designated under subparagraph 7,a7 shall consider use of a system to manage energy use at the facility and certification of the facility in accordance with the ,international ,organization for ,standardization standard numbered #ejjja and entitled ,energy ,management ,systems4 2 7,c7 by striking paragraphs 7#c7 and 7#d7 and inserting the following3 7#c7 ,energy and water evaluations and commissioning 7,a7 ,evaluations ,except as provided in subparagraph 7,b71 effective beginning on the date that is #ahj days after the date of enactment of the ,energy ,savings and ,industrial ,competitiveness ,act1 and annually thereafter1 each energy manager shall complete1 for each calendar year1 a comprehensive energy and water evaluation and recommissioning or retrocommissioning for approximately #be percent of the facilities of each agency that meet the criteria under paragraph 7#b77;,b7 in a manner that ensures that an evaluation of each facility is completed at least once every #d years4 7,b7 ,exceptions ,an evaluation and recommissioning shall not be required under subparagraph 7,a7 with respect to a facility that-- 7i7 has had a comprehensive energy and water evaluation during the #h-year period preceding the date of the evaluation2 7ii7 7,i7 has been commissioned1 recommissioned1 or retrocommissioned during the #aj-year period preceding the date of the evaluation2 or 7,,ii7 is under ongoing commissioning2 7iii7 has not had a major change in function or use since the previous evaluation and commissioning2 7iv7 has been benchmarked with public disclosure under paragraph 7#h7 within the year preceding the evaluation2 and 7v7 7,i7 based on the benchmarking1 has achieved at a facility level the most recent cumulative energy savings target under subsection 7a7 compared to the earlier of-- 7aa7 the date of the most recent evaluation2 or 7bb7 the date-- 7,,aa7 of the most recent commissioning1 recommissioning1 or retrocommissioning2 or 7,,bb7 on which ongoing commissioning began2 or 7,,ii7 has a long-term contract in place guaranteeing energy savings at least as great as the energy savings target under subclause 7,i74 7#d7 ,implementation of identified energy and water efficiency measures 7,a7 ,in general ,not later than #b years after the date of completion of each evaluation under paragraph 7#c71 each energy manager may-- 7i7 implement any energy- or water-saving measure that the ,federal agency identified in the evaluation conducted under paragraph 7#c7 that is life-cycle cost effective2 and 7ii7 bundle individual measures of varying paybacks together into combined projects4 7,b7 ,measures not implemented ,the energy manager shall1 as part of the certification system under paragraph 7#g71 explain the reasons why any life-cycle cost effective measures were not implemented under subparagraph 7,a7 using guidelines developed by the ,secretary4 2 and 7,d7 in paragraph 7#g77;,c71 by adding at the end the following3 7iii7 ,summary report ,the ,secretary shall make available a report that summarizes the information tracked under subparagraph 7,b77i7 by each agency and1 as applicable1 by each type of measure4 4 #dbb4 ,federal building energy efficiency performance standards2 certification system and level for green buildings 7a7 ,definitions ,section #cjc of the ,energy ,conservation and ,production ,act 7#db ,u4,s4,c4 #fhcb7 7as amended by section #aja7;a77 is amended-- 7#a7 in paragraph 7#f71 by striking to be constructed and inserting constructed or altered2 and 7#b7 by adding at the end the following3 7#ai7 ,major renovation ,the term major renovation means a modification of building energy systems sufficiently extensive that the whole building can meet energy standards for new buildings1 based on criteria to be established by the ,secretary through notice and comment rulemaking4 4 7b7 ,federal ,building ,efficiency ,standards ,section #cje of the ,energy ,conservation and ,production ,act 7#db ,u4,s4,c4 #fhcd7 is amended-- 7#a7 in subsection 7a77#c7-- 7,a7 by striking 7#c77;,a7 ,not later than and all that follows through subparagraph 7,b7 and inserting the following3 7#c7 ,revised ,federal building energy efficiency performance standards2 certification for green buildings 7,a7 ,revised ,federal building energy efficiency performance standards 7i7 ,in general ,not later than #a year after the date of enactment of the ,energy ,savings and ,industrial ,competitiveness ,act1 the ,secretary shall establish1 by rule1 revised ,federal building energy efficiency performance standards that require that-- 7,i7 new ,federal buildings and alterations and additions to existing ,federal buildings-- 7aa7 meet or exceed the most recent revision of the ,international ,energy ,conservation ,code 7in the case of residential buildings7 or ,,ashrae ,standard #ij4a 7in the case of commercial buildings7 as of the date of enactment of the ,energy ,savings and ,industrial ,competitiveness ,act2 and 7bb7 meet or exceed the energy provisions of ,state and local building codes applicable to the building1 if the codes are more stringent than the ,international ,energy ,conservation ,code or ,,ashrae ,standard #ij4a1 as applicable2 7,,ii7 unless demonstrated not to be life-cycle cost effective for new ,federal buildings and ,federal buildings with major renovations-- 7aa7 the buildings be designed to achieve energy consumption levels that are at least #cj percent below the levels established in the version of the ,,ashrae ,standard or the ,international ,energy ,conservation ,code1 as appropriate1 that is applied under subclause 7,i77aa71 including updates under subparagraph 7,b72 and 7bb7 sustainable design principles are applied to the location1 siting1 design1 and construction of all new ,federal buildings and replacement ,federal buildings2 7,,iii7 if water is used to achieve energy efficiency1 water conservation technologies shall be applied to the extent that the technologies are life-cycle cost effective2 and 7,,iv7 if life-cycle cost effective1 as compared to other reasonably available technologies1 not less than #cj 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 heaters4 7ii7 ,limitation ,clause 7i77,i7 shall not apply to unaltered portions of existing ,federal buildings and systems that have been added to or altered4 7,b7 ,updates ,not later than #a year after the date of approval of each subsequent revision of the ,,ashrae ,standard or the ,international ,energy ,conservation ,code1 as appropriate1 the ,secretary shall determine whether the revised standards established under subparagraph 7,a7 should be updated to reflect the revisions1 based on the energy savings and life-cycle cost-effectiveness of the revisions4 2 7,b7 in subparagraph 7,c71 by striking 7,c7 ,in the budget request and inserting the following3 7,c7 ,budget request ,in the budget request 2 and 7,c7 by striking subparagraph 7,d7 and inserting the following3 7,d7 ,certification for green buildings 7i7 ,sustainable design principles ,sustainable design principles shall be applied to the siting1 design1 and construction of buildings covered by this subparagraph4 7ii7 ,selection of certification systems ,the ,secretary1 after reviewing the findings of the ,federal ,director under section #dcf7;h7 of the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agjib7;h771 in consultation with the ,administrator of ,general ,services1 and in consultation with the ,secretary of ,defense relating to those facilities under the custody and control of the ,department of ,defense1 shall determine those certification systems for green commercial and residential buildings that the ,secretary determines to be the most likely to encourage a comprehensive and environmentally sound approach to certification of green buildings4 7iii7 ,basis for selection ,the determination of the certification systems under clause 7ii7 shall be based on ongoing review of the findings of the ,federal ,director under section #dcf7;h7 of the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agjib7;h77 and the criteria described in clause 7v74 7iv7 ,administration ,in determining certification systems under this subparagraph1 the ,secretary shall-- 7,i7 make a separate determination for all or part of each system2 and 7,,ii7 confirm that the criteria used to support the selection of building products1 materials1 brands1 and technologies-- 7aa7 are based on relevant technical data2 7bb7 use and reward evaluation of health1 safety1 and environmental risks and impacts across the lifecycle of the building product1 material1 brand1 or technology1 including methodologies generally accepted by the applicable scientific disciplines2 7cc7 as practicable1 give preference to performance standards instead of prescriptive measures2 and 7dd7 reward continual improvements in the lifecycle management of health1 safety1 and environmental risks and impacts4 7v7 ,considerations ,in determining the green building certification systems under this subparagraph1 the ,secretary shall take into consideration-- 7,i7 the ability and availability of assessors and auditors to independently verify the criteria and measurement of metrics at the scale necessary to implement this subparagraph2 7,,ii7 the ability of the applicable certification organization to collect and reflect public comment2 7,,iii7 the ability of the standard to be developed and revised through a consensus-based process2 7,,iv7 an evaluation of the robustness of the criteria for a high-performance green building1 which shall give credit for promoting-- 7aa7 efficient and sustainable use of water1 energy1 and other natural resources2 7bb7 use of renewable energy sources2 7cc7 improved indoor environmental quality through enhanced indoor air quality1 thermal comfort1 acoustics1 day lighting1 pollutant source control1 and use of low-emission materials and building system controls2 7dd7 7,,aa7 the sourcing of grown1 harvested1 or mined materials2 and 7,,bb7 certifications of responsible sourcing1 such as certifications provided by the ,forest ,stewardship ,council1 the ,sustainable ,forestry ,initiative1 the ,american ,tree ,farm ,system1 or the ,programme for the ,endorsement of ,forest ,certification2 and 7ee7 such other criteria as the ,secretary determines to be appropriate2 and 7,v7 national recognition within the building industry4 7vi7 ,review ,the ,secretary1 in consultation with the ,administrator of ,general ,services and the ,secretary of ,defense1 shall conduct an ongoing review to evaluate and compare private sector green building certification systems1 taking into account-- 7,i7 the criteria described in clause 7v72 and 7,,ii7 the identification made by the ,federal ,director under section #dcf7;h7 of the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agjib7;h774 7vii7 ,exclusions 7,i7 ,in general ,subject to subclause 7,,ii71 if a certification system fails to meet the review requirements of clause 7v71 the ,secretary shall-- 7aa7 identify the portions of the system1 whether prerequisites1 credits1 points1 or otherwise1 that meet the review criteria of clause 7v72 7bb7 determine the portions of the system that are suitable for use2 and 7cc7 exclude all other portions of the system from identification and use4 7,,ii7 ,entire systems ,the ,secretary shall exclude an entire system from use if an exclusion under subclause 7,i7-- 7aa7 impedes the integrated use of the system2 7bb7 creates disparate review criteria or unequal point access for competing materials2 or 7cc7 increases agency costs of the use4 7viii7 ,internal certification processes ,the ,secretary may by rule allow ,federal agencies to develop internal certification processes1 using certified professionals1 in lieu of certification by certification entities identified under clause 7ii74 7ix7 ,privatized military housing ,with respect to privatized military housing1 the ,secretary of ,defense1 after consultation with the ,secretary may1 through rulemaking1 develop alternative certification systems and levels than the systems and levels identified under clause 7ii7 that achieve an equivalent result in terms of energy savings1 sustainable design1 and green building performance4 7x7 ,water conservation technologies ,in addition to any use of water conservation technologies otherwise required by this section1 water conservation technologies shall be applied to the extent that the technologies are life-cycle cost-effective4 7xi7 ,effective date 7,i7 ,determinations made after ,december #ca1 #bjag ,the amendments made by section #dcb7;b77#a77;,c7 of ,energy ,savings and ,industrial ,competitiveness ,act shall apply to any determination made by a ,federal agency after ,december #ca1 #bjag4 7,,ii7 ,determinations made on or before ,december #ca1 #bjag ,this subparagraph 7as in effect on the day before the date of enactment of ,energy ,savings and ,industrial ,competitiveness ,act7 shall apply to any use of a certification system for green commercial and residential buildings by a ,federal agency on or before ,december #ca1 #bjag4 2 and 7#b7 by striking subsections 7c7 and 7d7 and inserting the following3 7c7 ,periodic review ,the ,secretary shall-- 7#a7 once every #e years1 review the ,federal building energy standards established under this section2 and 7#b7 on completion of a review under paragraph 7#a71 if the ,secretary determines that significant energy savings would result1 upgrade the standards to include all new energy efficiency and renewable energy measures that are technologically feasible and economically justified4 4 #dbc4 ,enhanced energy efficiency underwriting 7a7 ,definitions ,in this section3 7#a7 ,covered agency ,the term covered agency-- 7,a7 means-- 7i7 an executive agency1 as that term is defined in section #ajb of title #ca1 ,united ,states ,code2 and 7ii7 any other agency of the ,federal ,government2 and 7,b7 includes any enterprise1 as that term is defined under section #acjc of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dejb74 7#b7 ,covered loan ,the term covered loan means a loan secured by a home that is issued1 insured1 purchased1 or securitized by a covered agency4 7#c7 ,homeowner ,the term homeowner means the mortgagor under a covered loan4 7#d7 ,mortgagee ,the term mortgagee means-- 7,a7 an original lender under a covered loan or the holder of a covered loan at the time at which that mortgage transaction is consummated2 7,b7 any affiliate1 agent1 subsidiary1 successor1 or assignee of an original lender under a covered loan or the holder of a covered loan at the time at which that mortgage transaction is consummated2 7,c7 any servicer of a covered loan2 and 7,d7 any subsequent purchaser1 trustee1 or transferee of any covered loan issued by an original lender4 7#e7 ,secretary ,the term ,secretary means the ,secretary of ,housing and ,urban ,development4 7#f7 ,servicer ,the term servicer means the person or entity responsible for the servicing of a covered loan1 including the person or entity who makes or holds a covered loan if that person or entity also services the covered loan4 7#g7 ,servicing ,the term servicing has the meaning given the term in section #f7;i7 of the ,real ,estate ,settlement ,procedures ,act of #aigd 7#ab ,u4,s4,c4 #bfje7;i774 7b7 ,findings and purposes 7#a7 ,findings ,congress finds that-- 7,a7 energy costs for homeowners are a significant and increasing portion of their household budgets2 7,b7 household energy use can vary substantially depending on the efficiency and characteristics of the house2 7,c7 expected energy cost savings are important to the value of the house2 7,d7 the current test for loan affordability used by most covered agencies1 commonly known as the debt-to-income test1 is inadequate because it does not take into account the expected energy cost savings for the homeowner of an energy efficient home2 and 7,e7 another loan limitation1 commonly known as the loan-to-value test1 is tied to the appraisal1 which often does not adjust for efficiency features of houses4 7#b7 ,purposes ,the purposes of this section are to-- 7,a7 improve the accuracy of mortgage underwriting by ,federal mortgage agencies by ensuring that energy cost savings are included in the underwriting process as described below1 and thus to reduce the amount of energy consumed by homes and to facilitate the creation of energy efficiency retrofit and construction jobs2 7,b7 require a covered agency to include the expected energy cost savings of a homeowner as a regular expense in the tests1 such as the debt-to-income test1 used to determine the ability of the loan applicant to afford the cost of homeownership for all loan programs2 and 7,c7 require a covered agency to include the value home buyers place on the energy efficiency of a house in tests used to compare the mortgage amount to home value1 taking precautions to avoid double-counting and to support safe and sound lending4 7c7 ,enhanced energy efficiency underwriting criteria 7#a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,secretary shall1 in consultation with the advisory group established in subsection 7f77#b71 develop and issue guidelines for a covered agency to implement enhanced loan eligibility requirements1 for use when testing the ability of a loan applicant to repay a covered loan1 that account for the expected energy cost savings for a loan applicant at a subject property1 in the manner set forth in paragraphs 7#b7 and 7#c74 7#b7 ,requirements ,to account for energy cost savings ,the enhanced loan eligibility requirements under paragraph 7#a7 shall require that1 for all covered loans for which an energy efficiency report is voluntarily provided to the mortgagee by the mortgagor1 the covered agency and the mortgagee shall take into consideration the estimated energy cost savings expected for the owner of the subject property in determining whether the loan applicant has sufficient income to service the mortgage debt plus other regular expenses4 ,to the extent that a covered agency uses a test such as a debt-to-income test that includes certain regular expenses1 such as hazard insurance and property taxes1 the expected energy cost savings shall be included as an offset to these expenses4 ,energy costs to be assessed include the cost of electricity1 natural gas1 oil1 and any other fuel regularly used to supply energy to the subject property4 7#c7 ,determination of estimated energy cost savings 7,a7 ,in general ,the guidelines to be issued under paragraph 7#a7 shall include instructions for the covered agency to calculate estimated energy cost savings using-- 7i7 the energy efficiency report2 7ii7 an estimate of baseline average energy costs2 and 7iii7 additional sources of information as determined by the ,secretary4 7,b7 ,report requirements ,for the purposes of subparagraph 7,a71 an energy efficiency report shall-- 7i7 estimate the expected energy cost savings specific to the subject property1 based on specific information about the property2 7ii7 be prepared in accordance with the guidelines to be issued under paragraph 7#a72 and 7iii7 be prepared-- 7,i7 in accordance with the ,residential ,energy ,service ,network's ,home ,energy ,rating ,system 7commonly known as ,,hers7 by an individual certified by the ,residential ,energy ,service ,network1 unless the ,secretary finds that the use of ,,hers does not further the purposes of this section2 or 7,,ii7 by other methods approved by the ,secretary1 in consultation with the ,secretary of ,energy and the advisory group established in subsection 7f77#b71 for use under this section1 which shall include a third-party quality assurance procedure4 7,c7 ,use by appraiser ,if an energy efficiency report is used under paragraph 7#b71 the energy efficiency report shall be provided to the appraiser to estimate the energy efficiency of the subject property and for potential adjustments for energy efficiency4 7#d7 ,required disclosure to consumer for a home with an energy efficiency report ,if an energy efficiency report is used under paragraph 7#b71 the guidelines to be issued under paragraph 7#a7 shall require the mortgagee to-- 7,a7 inform the loan applicant of the expected energy costs as estimated in the energy efficiency report1 in a manner and at a time as prescribed by the ,secretary1 and if practicable1 in the documents delivered at the time of loan application2 and 7,b7 include the energy efficiency report in the documentation for the loan provided to the borrower4 7#e7 ,required disclosure to consumer for a home without an energy efficiency report ,if an energy efficiency report is not used under paragraph 7#b71 the guidelines to be issued under paragraph 7#a7 shall require the mortgagee to inform the loan applicant in a manner and at a time as prescribed by the ,secretary1 and if practicable1 in the documents delivered at the time of loan application of-- 7,a7 typical energy cost savings that would be possible from a cost-effective energy upgrade of a home of the size and in the region of the subject property2 7,b7 the impact the typical energy cost savings would have on monthly ownership costs of a typical home2 7,c7 the impact on the size of a mortgage that could be obtained if the typical energy cost savings were reflected in an energy efficiency report2 and 7,d7 resources for improving the energy efficiency of a home4 7#f7 ,pricing of loans 7,a7 ,in general ,a covered agency may price covered loans originated under the enhanced loan eligibility requirements required under this section in accordance with the estimated risk of the loans4 7,b7 ,imposition of certain material costs1 impediments1 or penalties ,in the absence of a publicly disclosed analysis that demonstrates significant additional default risk or prepayment risk associated with the loans1 a covered agency shall not impose material costs1 impediments1 or penalties on covered loans merely because the loan uses an energy efficiency report or the enhanced loan eligibility requirements required under this section4 7#g7 ,limitations 7,a7 ,in general ,a covered agency may price covered loans originated under the enhanced loan eligibility requirements required under this section in accordance with the estimated risk of those loans4 7,b7 ,prohibited actions ,a covered agency shall not-- 7i7 modify existing underwriting criteria or adopt new underwriting criteria that intentionally negate or reduce the impact of the requirements or resulting benefits that are set forth or otherwise derived from the enhanced loan eligibility requirements required under this subsection2 or 7ii7 impose greater buy back requirements1 credit overlays1 or insurance requirements1 including private mortgage insurance1 on covered loans merely because the loan uses an energy efficiency report or the enhanced loan eligibility requirements required under this subsection4 7#h7 ,applicability and implementation date ,not later than #c years after the date of enactment of this ,act1 and before ,december #ca1 #bjai1 the enhanced loan eligibility requirements required under this subsection shall be implemented by each covered agency to-- 7,a7 apply to any covered loan for the sale1 or refinancing of any loan for the sale1 of any home2 7,b7 be available on any residential real property 7including individual units of condominiums and cooperatives7 that qualifies for a covered loan2 and 7,c7 provide prospective mortgagees with sufficient guidance and applicable tools to implement the required underwriting methods4 7d7 ,enhanced energy efficiency underwriting valuation guidelines 7#a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,secretary shall-- 7,a7 in consultation with the ,federal ,financial ,institutions ,examination ,council and the advisory group established in subsection 7f77#b71 develop and issue guidelines for a covered agency to determine the maximum permitted loan amount based on the value of the property for all covered loans made on properties with an energy efficiency report that meets the requirements of subsection 7c77#c77;,b72 and 7,b7 in consultation with the ,secretary of ,energy1 issue guidelines for a covered agency to determine the estimated energy savings under paragraph 7#c7 for properties with an energy efficiency report4 7#b7 ,requirements ,the enhanced energy efficiency underwriting valuation guidelines required under paragraph 7#a7 shall include-- 7,a7 a requirement that if an energy efficiency report that meets the requirements of subsection 7c77#c77;,b7 is voluntarily provided to the mortgagee1 such report shall be used by the mortgagee or covered agency to determine the estimated energy savings of the subject property2 and 7,b7 a requirement that the estimated energy savings of the subject property be added to the appraised value of the subject property by a mortgagee or covered agency for the purpose of determining the loan-to-value ratio of the subject property1 unless the appraisal includes the value of the overall energy efficiency of the subject property1 using methods to be established under the guidelines issued under paragraph 7#a74 7#c7 ,determination of estimated energy savings 7,a7 ,amount of energy savings ,the amount of estimated energy savings shall be determined by calculating the difference between the estimated energy costs for the average comparable houses1 as determined in guidelines to be issued under paragraph 7#a71 and the estimated energy costs for the subject property based upon the energy efficiency report4 7,b7 ,duration of energy savings ,the duration of the estimated energy savings shall be based upon the estimated life of the applicable equipment1 consistent with the rating system used to produce the energy efficiency report4 7,c7 ,present value of energy savings ,the present value of the future savings shall be discounted using the average interest rate on conventional #cj-year mortgages1 in the manner directed by guidelines issued under paragraph 7#a74 7#d7 ,ensuring consideration of energy efficient features ,section #aaaj of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #ccci7 is amended-- 7,a7 in paragraph 7#b71 by striking 2 and and inserting a semicolon2 and 7,b7 in paragraph 7#c71 by striking the period at the end and inserting 2 and and inserting after paragraph 7#c7 the following3 7#d7 that ,state certified and licensed appraisers have timely access1 whenever practicable1 to information from the property owner and the lender that may be relevant in developing an opinion of value regarding the energy- and water-saving improvements or features of a property1 such as-- 7,a7 labels or ratings of buildings2 7,b7 installed appliances1 measures1 systems or technologies2 7,c7 blueprints2 7,d7 construction costs2 7,e7 financial or other incentives regarding energy- and water-efficient components and systems installed in a property2 7,f7 utility bills2 7,g7 energy consumption and benchmarking data2 and 7,h7 third-party verifications or representations of energy and water efficiency performance of a property1 observing all financial privacy requirements adhered to by certified and licensed appraisers1 including section #eja of the ,gramm-,leach-,bliley ,act 7#ae ,u4,s4,c4 #fhja74 ,unless a property owner consents to a lender1 an appraiser1 in carrying out the requirements of paragraph 7#d71 shall not have access to the commercial or financial information of the owner that is privileged or confidential4 4 7#e7 ,transactions requiring state certified appraisers ,section #aaac of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #ccdb7 is amended-- 7,a7 in paragraph 7#a71 by inserting before the semicolon the following3 1 or any real property on which the appraiser makes adjustments using an energy efficiency report2 and 7,b7 in paragraph 7#b71 by inserting after atypical the following3 1 or an appraisal on which the appraiser makes adjustments using an energy efficiency report44 7#f7 ,protections 7,a7 ,authority to impose limitations ,the guidelines to be issued under paragraph 7#a7 shall include such limitations and conditions as determined by the ,secretary to be necessary to protect against meaningful under or over valuation of energy cost savings or duplicative counting of energy efficiency features or energy cost savings in the valuation of any subject property that is used to determine a loan amount4 7,b7 ,additional authority ,at the end of the #g-year period following the implementation of enhanced eligibility and underwriting valuation requirements under this section1 the ,secretary may modify or apply additional exceptions to the approach described in paragraph 7#b71 where the ,secretary finds that the unadjusted appraisal will reflect an accurate market value of the efficiency of the subject property or that a modified approach will better reflect an accurate market value4 7#g7 ,applicability and implementation date ,not later than #c years after the date of enactment of this ,act1 and before ,december #ca1 #bjai1 each covered agency shall implement the guidelines required under this subsection1 which shall-- 7,a7 apply to any covered loan for the sale1 or refinancing of any loan for the sale1 of any home2 and 7,b7 be available on any residential real property1 including individual units of condominiums and cooperatives1 that qualifies for a covered loan4 7e7 ,monitoring ,not later than #a year after the date on which the enhanced eligibility and underwriting valuation requirements are implemented under this section1 and every year thereafter1 each covered agency with relevant activity shall issue and make available to the public a report that-- 7#a7 enumerates the number of covered loans of the agency for which there was an energy efficiency report1 and that used energy efficiency appraisal guidelines and enhanced loan eligibility requirements2 7#b7 includes the default rates and rates of foreclosures for each category of loans2 and 7#c7 describes the risk premium1 if any1 that the agency has priced into covered loans for which there was an energy efficiency report4 7f7 ,rulemaking 7#a7 ,in general ,the ,secretary shall prescribe regulations to carry out this section1 in consultation with the ,secretary of ,energy and the advisory group established in paragraph 7#b71 which may contain such classifications1 differentiations1 or other provisions1 and may provide for such proper implementation and appropriate treatment of different types of transactions1 as the ,secretary determines are necessary or proper to effectuate the purposes of this section1 to prevent circumvention or evasion thereof1 or to facilitate compliance therewith4 7#b7 ,advisory group ,to assist in carrying out this section1 the ,secretary shall establish an advisory group1 consisting of individuals representing the interests of-- 7,a7 mortgage lenders2 7,b7 appraisers2 7,c7 energy raters and residential energy consumption experts2 7,d7 energy efficiency organizations2 7,e7 real estate agents2 7,f7 home builders and remodelers2 7,g7 ,state energy officials2 and 7,h7 others as determined by the ,secretary4 7g7 ,additional study 7#a7 ,in general ,not later than #ah months after the date of enactment of this ,act1 the ,secretary shall reconvene the advisory group established in subsection 7f77#b71 in addition to water and locational efficiency experts1 to advise the ,secretary on the implementation of the enhanced energy efficiency underwriting criteria established in subsections 7c7 and 7d74 7#b7 ,recommendations ,the advisory group established in subsection 7f77#b7 shall provide recommendations to the ,secretary on any revisions or additions to the enhanced energy efficiency underwriting criteria deemed necessary by the group1 which may include alternate methods to better account for home energy costs and additional factors to account for substantial and regular costs of homeownership such as location-based transportation costs and water costs4 ,the ,secretary shall forward any legislative recommendations from the advisory group to ,congress for its consideration4 ,v ,miscellaneous #eja4 ,budgetary effects ,the budgetary effects of this ,act1 for the purpose of complying with the ,statutory ,pay-,as-,you-,go ,act of #bjaj1 shall be determined by reference to the latest statement titled ,budgetary ,effects of ,,paygo ,legislation for this ,act1 submitted for printing in the ,congressional ,record by the ,chairman of the ,senate ,budget ,committee1 provided that such statement has been submitted prior to the vote on passage4 #ejb4 ,advance appropriations required ,the authorization of amounts under this ,act and the amendments made by this ,act shall be effective for any fiscal year only to the extent and in the amount provided in advance in appropriations ,acts4