In the nature of a substitute.

SA 3012. Mrs. SHAHEEN (for herself and Mr. Portman) submitted an
amendment intended to be proposed by her to the bill S. 2262, to
promote energy savings in residential buildings and industry, and for
other purposes; as follows:

Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Energy
Savings and Industrial Competitiveness Act of 2014''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.

TITLE I--BUILDINGS

Subtitle A--Building Energy Codes

Sec. 101. Greater energy efficiency in building codes.

Subtitle B--Worker Training and Capacity Building

Sec. 111. Building training and assessment centers.
Sec. 112. Career skills training.

Subtitle C--School Buildings

Sec. 121. Coordination of energy retrofitting assistance for schools.

Subtitle D--Better Buildings

Sec. 131. Energy efficiency in Federal and other buildings.
Sec. 132. Separate spaces with high-performance energy efficiency
measures.
Sec. 133. Tenant star program.

Subtitle E--Energy Information for Commercial Buildings

Sec. 141. Energy information for commercial buildings.

TITLE II--INDUSTRIAL EFFICIENCY AND COMPETITIVENESS

Subtitle A--Manufacturing Energy Efficiency

Sec. 201. Purposes.
Sec. 202. Future of Industry program.
Sec. 203. Sustainable manufacturing initiative.
Sec. 204. Conforming amendments.

Subtitle B--Supply Star

Sec. 211. Supply Star.

Subtitle C--Electric Motor Rebate Program

Sec. 221. Energy saving motor control, electric motor, and advanced
motor systems rebate program.

Subtitle D--Transformer Rebate Program

Sec. 231. Energy efficient transformer rebate program.

TITLE III--FEDERAL AGENCY ENERGY EFFICIENCY

Sec. 301. Energy-efficient and energy-saving information technologies.
Sec. 302. Availability of funds for design updates.
Sec. 303. Energy efficient data centers.
Sec. 304. Budget-neutral demonstration program for energy and water
conservation improvements at multifamily residential
units.

TITLE IV--REGULATORY PROVISIONS

Subtitle A--Third-party Certification Under Energy Star Program

Sec. 401. Third-party certification under Energy Star program.

Subtitle B--Federal Green Buildings

Sec. 411. High-performance green Federal buildings.

Subtitle C--Water Heaters

Sec. 421. Grid-enabled water heaters.

Subtitle D--Energy Performance Requirement for Federal Buildings

Sec. 431. Energy performance requirement for Federal buildings.
Sec. 432. Federal building energy efficiency performance standards;
certification system and level for green buildings.
Sec. 433. Enhanced energy efficiency underwriting.

Subtitle E--Third Party Testing

Sec. 441. Voluntary certification programs for air conditioning,
furnace, boiler, heat pump, and water heater products.

TITLE V--MISCELLANEOUS

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

SEC. 2. DEFINITION OF SECRETARY.

In this Act, the term ``Secretary'' means the Secretary of
Energy.

TITLE I--BUILDINGS

Subtitle A--Building Energy Codes

SEC. 101. GREATER ENERGY EFFICIENCY IN BUILDING CODES.

(a) Definitions.--Section 303 of the Energy Conservation
and Production Act (42 U.S.C. 6832) is amended--
(1) by striking paragraph (14) and inserting the following:
``(14) Model building energy code.--The term `model
building energy code' means a voluntary building energy code
and standards developed and updated through a consensus
process among interested persons, such as the IECC or the
code used by--
``(A) the Council of American Building Officials, or its
legal successor, International Code Council, Inc.;
``(B) the American Society of Heating, Refrigerating, and
Air-Conditioning Engineers; or
``(C) other appropriate organizations.''; and
(2) by adding at the end the following:
``(17) IECC.--The term `IECC' means the International
Energy Conservation Code.
``(18) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4103).''.
(b) State Building Energy Efficiency Codes.--Section 304 of
the Energy Conservation and Production Act (42 U.S.C. 6833)
is amended to read as follows:

``SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.

``(a) In General.--The Secretary shall--
``(1) encourage and support the adoption of building energy
codes by States, Indian tribes, and, as appropriate, by local
governments that meet or exceed the model building energy
codes, or achieve equivalent or greater energy savings; and
``(2) support full compliance with the State and local
codes.
``(b) State and Indian Tribe Certification of Building
Energy Code Updates.--
``(1) Review and updating of codes by each state and indian
tribe.--
``(A) In general.--Not later than 2 years after the date on
which a model building energy code is updated, each State or
Indian tribe shall certify whether or not the State or Indian
tribe, respectively, has reviewed and updated the energy
provisions of the building code of the State or Indian tribe,
respectively.
``(B) Demonstration.--The certification shall include a
demonstration of whether or not the energy savings for the
code provisions that are in effect throughout the State or
Indian tribal territory meet or exceed--
``(i) the energy savings of the updated model building
energy code; or
``(ii) the targets established under section 307(b)(2).
``(C) No model building energy code update.--If a model
building energy code is not updated by a target date
established under section 307(b)(2)(D), each State or Indian
tribe shall, not later than 2 years after the specified date,
certify whether or not the State or Indian tribe,
respectively, has reviewed and updated the energy provisions
of the building code of the State or Indian tribe,
respectively, to meet or exceed the target in section
307(b)(2).
``(2) Validation by secretary.--Not later than 90 days
after a State or Indian tribe certification under paragraph
(1), the Secretary shall--
``(A) determine whether the code provisions of the State or
Indian tribe, respectively, meet the criteria specified in
paragraph (1); and
``(B) if the determination is positive, validate the
certification.
``(c) Improvements in Compliance With Building Energy
Codes.--
``(1) Requirement.--
``(A) In general.--Not later than 3 years after the date of
a certification under subsection (b), each State and Indian
tribe shall certify whether or not the State and Indian
tribe, respectively, has--

[[Page S2802]]

``(i) achieved full compliance under paragraph (3) with the
applicable certified State and Indian tribe building energy
code or with the associated model building energy code; or
``(ii) made significant progress under paragraph (4) toward
achieving compliance with the applicable certified State and
Indian tribe building energy code or with the associated
model building energy code.
``(B) Repeat certifications.--If the State or Indian tribe
certifies progress toward achieving compliance, the State or
Indian tribe shall repeat the certification until the State
or Indian tribe certifies that the State or Indian tribe has
achieved full compliance, respectively.
``(2) Measurement of compliance.--A certification under
paragraph (1) shall include documentation of the rate of
compliance based on--
``(A) independent inspections of a random sample of the
buildings covered by the code in the preceding year; or
``(B) an alternative method that yields an accurate measure
of compliance.
``(3) Achievement of compliance.--A State or Indian tribe
shall be considered to achieve full compliance under
paragraph (1) if--
``(A) at least 90 percent of building space covered by the
code in the preceding year substantially meets all the
requirements of the applicable code specified in paragraph
(1), or achieves equivalent or greater energy savings level;
or
``(B) the estimated excess energy use of buildings that did
not meet the applicable code specified in paragraph (1) in
the preceding year, compared to a baseline of comparable
buildings that meet this code, is not more than 5 percent of
the estimated energy use of all buildings covered by this
code during the preceding year.
``(4) Significant progress toward achievement of
compliance.--A State or Indian tribe shall be considered to
have made significant progress toward achieving compliance
for purposes of paragraph (1) if the State or Indian tribe--
``(A) has developed and is implementing a plan for
achieving compliance during the 8-year-period beginning on
the date of enactment of this paragraph, including annual
targets for compliance and active training and enforcement
programs; and
``(B) has met the most recent target under subparagraph
(A).
``(5) Validation by secretary.--Not later than 90 days
after a State or Indian tribe certification under paragraph
(1), the Secretary shall--
``(A) determine whether the State or Indian tribe has
demonstrated meeting the criteria of this subsection,
including accurate measurement of compliance; and
``(B) if the determination is positive, validate the
certification.
``(d) States or Indian Tribes That Do Not Achieve
Compliance.--
``(1) Reporting.--A State or Indian tribe that has not made
a certification required under subsection (b) or (c) by the
applicable deadline shall submit to the Secretary a report
on--
``(A) the status of the State or Indian tribe with respect
to meeting the requirements and submitting the certification;
and
``(B) a plan for meeting the requirements and submitting
the certification.
``(2) Federal support.--For any State or Indian tribe for
which the Secretary has not validated a certification by a
deadline under subsection (b) or (c), the lack of the
certification may be a consideration for Federal support
authorized under this section for code adoption and
compliance activities.
``(3) Local government.--In any State or Indian tribe for
which the Secretary has not validated a certification under
subsection (b) or (c), a local government may be eligible for
Federal support by meeting the certification requirements of
subsections (b) and (c).
``(4) Annual reports by secretary.--
``(A) In general.--The Secretary shall annually submit to
Congress, and publish in the Federal Register, a report on--
``(i) the status of model building energy codes;
``(ii) the status of code adoption and compliance in the
States and Indian tribes;
``(iii) implementation of this section; and
``(iv) improvements in energy savings over time as result
of the targets established under section 307(b)(2).
``(B) Impacts.--The report shall include estimates of
impacts of past action under this section, and potential
impacts of further action, on--
``(i) upfront financial and construction costs, cost
benefits and returns (using investment analysis), and
lifetime energy use for buildings;
``(ii) resulting energy costs to individuals and
businesses; and
``(iii) resulting overall annual building ownership and
operating costs.
``(e) Technical Assistance to States and Indian Tribes.--
The Secretary shall provide technical assistance to States
and Indian tribes to implement the goals and requirements of
this section, including procedures and technical analysis for
States and Indian tribes--
``(1) to improve and implement State residential and
commercial building energy codes;
``(2) to demonstrate that the code provisions of the States
and Indian tribes achieve equivalent or greater energy
savings than the model building energy codes and targets;
``(3) to document the rate of compliance with a building
energy code; and
``(4) to otherwise promote the design and construction of
energy efficient buildings.
``(f) Availability of Incentive Funding.--
``(1) In general.--The Secretary shall provide incentive
funding to States and Indian tribes--
``(A) to implement the requirements of this section;
``(B) to improve and implement residential and commercial
building energy codes, including increasing and verifying
compliance with the codes and training of State, tribal, and
local building code officials to implement and enforce the
codes; and
``(C) to promote building energy efficiency through the use
of the codes.
``(2) Additional funding.--Additional funding shall be
provided under this subsection for implementation of a plan
to achieve and document full compliance with residential and
commercial building energy codes under subsection (c)--
``(A) to a State or Indian tribe for which the Secretary
has validated a certification under subsection (b) or (c);
and
``(B) in a State or Indian tribe that is not eligible under
subparagraph (A), to a local government that is eligible
under this section.
``(3) Training.--Of the amounts made available under this
subsection, the State or Indian tribe may use amounts
required, but not to exceed $750,000 for a State, to train
State and local building code officials to implement and
enforce codes described in paragraph (2).
``(4) Local governments.--States may share grants under
this subsection with local governments that implement and
enforce the codes.
``(g) Stretch Codes and Advanced Standards.--
``(1) In general.--The Secretary shall provide technical
and financial support for the development of stretch codes
and advanced standards for residential and commercial
buildings for use as--
``(A) an option for adoption as a building energy code by
local, tribal, or State governments; and
``(B) guidelines for energy-efficient building design.
``(2) Targets.--The stretch codes and advanced standards
shall be designed--
``(A) to achieve substantial energy savings compared to the
model building energy codes; and
``(B) to meet targets under section 307(b), if available,
at least 3 to 6 years in advance of the target years.
``(h) Studies.--The Secretary, in consultation with
building science experts from the National Laboratories and
institutions of higher education, designers and builders of
energy-efficient residential and commercial buildings, code
officials, and other stakeholders, shall undertake a study of
the feasibility, impact, economics, and merit of--
``(1) code improvements that would require that buildings
be designed, sited, and constructed in a manner that makes
the buildings more adaptable in the future to become zero-
net-energy after initial construction, as advances are
achieved in energy-saving technologies;
``(2) code procedures to incorporate measured lifetimes,
not just first-year energy use, in trade-offs and performance
calculations; and
``(3) legislative options for increasing energy savings
from building energy codes, including additional incentives
for effective State and local action, and verification of
compliance with and enforcement of a code other than by a
State or local government.
``(i) Effect on Other Laws.--Nothing in this section or
section 307 supersedes or modifies the application of
sections 321 through 346 of the Energy Policy and
Conservation Act (42 U.S.C. 6291 et seq.).
``(j) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section and
section 307 $200,000,000, to remain available until
expended.''.
(c) Federal Building Energy Efficiency Standards.--Section
305 of the Energy Conservation and Production Act (42 U.S.C.
6834) is amended by striking ``voluntary building energy
code'' each place it appears in subsections (a)(2)(B) and (b)
and inserting ``model building energy code''.
(d) Model Building Energy Codes.--Section 307 of the Energy
Conservation and Production Act (42 U.S.C. 6836) is amended
to read as follows:

``SEC. 307. SUPPORT FOR MODEL BUILDING ENERGY CODES.

``(a) In General.--The Secretary shall support the updating
of model building energy codes.
``(b) Targets.--
``(1) In general.--The Secretary shall support the updating
of the model building energy codes to enable the achievement
of aggregate energy savings targets established under
paragraph (2).
``(2) Targets.--
``(A) In general.--The Secretary shall work with State,
Indian tribes, local governments, nationally recognized code
and standards developers, and other interested parties to
support the updating of model building energy codes by
establishing one or more aggregate energy savings targets to
achieve the purposes of this section.
``(B) Separate targets.--The Secretary may establish
separate targets for commercial and residential buildings.
``(C) Baselines.--The baseline for updating model building
energy codes shall be the 2009 IECC for residential buildings
and ASHRAE Standard 90.1-2010 for commercial buildings.

[[Page S2803]]

``(D) Specific years.--
``(i) In general.--Targets for specific years shall be
established and revised by the Secretary through rulemaking
and coordinated with nationally recognized code and standards
developers at a level that--

``(I) is at the maximum level of energy efficiency that is
technologically feasible and life-cycle cost effective, while
accounting for the economic considerations under paragraph
(4);
``(II) is higher than the preceding target; and
``(III) promotes the achievement of commercial and
residential high-performance buildings through high
performance energy efficiency (within the meaning of section
401 of the Energy Independence and Security Act of 2007 (42
U.S.C. 17061)).

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

Subtitle B--Worker Training and Capacity Building

SEC. 111. BUILDING TRAINING AND ASSESSMENT CENTERS.

(a) In General.--The Secretary shall provide grants to
institutions of higher education (as defined in section 101
of the Higher Education Act of 1965 (20 U.S.C. 1001)) and
Tribal Colleges or Universities (as defined in section 316(b)
of that Act (20 U.S.C. 1059c(b))) to establish building
training and assessment centers--
(1) to identify opportunities for optimizing energy
efficiency and environmental performance in buildings;
(2) to promote the application of emerging concepts and
technologies in commercial and institutional buildings;
(3) to train engineers, architects, building scientists,
building energy permitting and enforcement officials, and
building technicians in energy-efficient design and
operation;
(4) to assist institutions of higher education and Tribal
Colleges or Universities in training building technicians;
(5) to promote research and development for the use of
alternative energy sources and distributed generation to
supply heat and power for buildings, particularly energy-
intensive buildings; and
(6) to coordinate with and assist State-accredited
technical training centers, community colleges, Tribal
Colleges or Universities, and local offices of the National
Institute of Food and Agriculture and ensure appropriate
services are provided under this section to each region of
the United States.
(b) Coordination and Nonduplication.--
(1) 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
effort.
(2) Collocation.--To the maximum extent practicable,
building, training, and assessment centers established under
this section shall be collocated with Industrial Assessment
Centers.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $10,000,000, to
remain available until expended.

SEC. 112. CAREER SKILLS TRAINING.

(a) In General.--The Secretary shall pay grants to eligible
entities described in subsection (b) 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
technologies, including technologies described in section
307(b)(3) of the Energy Conservation and Production Act (42
U.S.C. 6836(b)(3)).
(b) Eligibility.--To be eligible to obtain a grant under
subsection (a), an entity shall be a nonprofit partnership
described in section 171(e)(2)(B)(ii) of the Workforce
Investment Act of 1998 (29 U.S.C. 2916(e)(2)(B)(ii)).
(c) Federal Share.--The Federal share of the cost of
carrying out a career skills training program described in
subsection (a) shall be 50 percent.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $10,000,000, to
remain available until expended.

Subtitle C--School Buildings

SEC. 121. COORDINATION OF ENERGY RETROFITTING ASSISTANCE FOR
SCHOOLS.

(a) Definition of School.--In this section, the term
``school'' means--
(1) an elementary school or secondary school (as defined in
section 9101 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7801));
(2) an institution of higher education (as defined in
section 102(a) of the Higher Education Act of 1965 (20 U.S.C.
1002(a));
(3) a school of the defense dependents' education system
under the Defense Dependents'

[[Page S2804]]

Education Act of 1978 (20 U.S.C. 921 et seq.) or established
under section 2164 of title 10, United States Code;
(4) a school operated by the Bureau of Indian Affairs;
(5) a tribally controlled school (as defined in section
5212 of the Tribally Controlled Schools Act of 1988 (25
U.S.C. 2511)); and
(6) a Tribal College or University (as defined in section
316(b) of the Higher Education Act of 1965 (20 U.S.C.
1059c(b))).
(b) Designation of Lead Agency.--The Secretary, acting
through the Office of Energy Efficiency and Renewable Energy,
shall act as the lead Federal agency for coordinating and
disseminating information on existing Federal programs and
assistance that may be used to help initiate, develop, and
finance energy efficiency, renewable energy, and energy
retrofitting projects for schools.
(c) Requirements.--In carrying out coordination and
outreach under subsection (b), the Secretary shall--
(1) in consultation and coordination with the appropriate
Federal agencies, carry out a review of existing programs and
financing mechanisms (including revolving loan funds and loan
guarantees) available in or from the Department of
Agriculture, the Department of Energy, the Department of
Education, the Department of the Treasury, the Internal
Revenue Service, the Environmental Protection Agency, and
other appropriate Federal agencies with jurisdiction over
energy financing and facilitation that are currently used or
may be used to help initiate, develop, and finance energy
efficiency, renewable energy, and energy retrofitting
projects for schools;
(2) establish a Federal cross-departmental collaborative
coordination, education, and outreach effort to streamline
communication and promote available Federal opportunities and
assistance described in paragraph (1), for energy efficiency,
renewable energy, and energy retrofitting projects that
enables States, local educational agencies, and schools--
(A) to use existing Federal opportunities more effectively;
and
(B) to form partnerships with Governors, State energy
programs, local educational, financial, and energy officials,
State and local government officials, nonprofit
organizations, and other appropriate entities, to support the
initiation of the projects;
(3) provide technical assistance for States, local
educational agencies, and schools to help develop and finance
energy efficiency, renewable energy, and energy retrofitting
projects--
(A) to increase the energy efficiency of buildings or
facilities;
(B) to install systems that individually generate energy
from renewable energy resources;
(C) to establish partnerships to leverage economies of
scale and additional financing mechanisms available to larger
clean energy initiatives; or
(D) to promote--
(i) the maintenance of health, environmental quality, and
safety in schools, including the ambient air quality, through
energy efficiency, renewable energy, and energy retrofit
projects; and
(ii) the achievement of expected energy savings and
renewable energy production through proper operations and
maintenance practices;
(4) develop and maintain a single online resource Web site
with contact information for relevant technical assistance
and support staff in the Office of Energy Efficiency and
Renewable Energy for States, local educational agencies, and
schools to effectively access and use Federal opportunities
and assistance described in paragraph (1) to develop energy
efficiency, renewable energy, and energy retrofitting
projects; and
(5) establish a process for recognition of schools that--
(A) have successfully implemented energy efficiency,
renewable energy, and energy retrofitting projects; and
(B) are willing to serve as resources for other local
educational agencies and schools to assist initiation of
similar efforts.
(d) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to Congress
a report describing the implementation of this section.

Subtitle D--Better Buildings

SEC. 131. ENERGY EFFICIENCY IN FEDERAL AND OTHER BUILDINGS.

(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of General Services.
(2) Cost-effective energy efficiency measure.--The terms
``cost-effective energy efficiency measure'' and ``measure''
mean any building product, material, equipment, or service
and the installing, implementing, or operating thereof, that
provides energy savings in an amount that is not less than
the cost of such installing, implementing, or operating.
(b) Model Provisions, Policies, and Best Practices.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Administrator, in consultation
with the Secretary and after providing the public with an
opportunity for notice and comment, shall develop model
leasing provisions and best practices in accordance with this
subsection.
(2) Commercial leasing.--
(A) In general.--The model commercial leasing provisions
developed under this subsection shall, at a minimum, align
the interests of building owners and tenants with regard to
investments in cost-effective energy efficiency measures to
encourage building owners and tenants to collaborate to
invest in such measures.
(B) Use of model provisions.--The Administrator may use the
model provisions developed under this subsection in any
standard leasing document that designates a Federal agency
(or other client of the Administrator) as a landlord or
tenant.
(C) Publication.--The Administrator shall periodically
publish the model leasing provisions developed under this
subsection, along with explanatory materials, to encourage
building owners and tenants in the private sector to use such
provisions and materials.
(3) Realty services.--The Administrator shall develop
policies and practices to implement cost-effective energy
efficiency measures for the realty services provided by the
Administrator to Federal agencies (or other clients of the
Administrator), including periodic training of appropriate
Federal employees and contractors on how to identify and
evaluate those measures.
(4) State and local assistance.--The Administrator, in
consultation with the Secretary, shall make available model
leasing provisions and best practices developed under this
subsection to State, county, and municipal governments to
manage owned and leased building space in accordance with the
goal of encouraging investment in all cost-effective energy
efficiency measures.

SEC. 132. SEPARATE SPACES WITH HIGH-PERFORMANCE ENERGY
EFFICIENCY MEASURES.

Subtitle B of title IV of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17081 et seq.) is amended by
adding at the end the following:

``SEC. 424. SEPARATE SPACES WITH HIGH-PERFORMANCE ENERGY
EFFICIENCY MEASURES.

``(a) Definitions.--In this section:
``(1) High-performance energy efficiency measure.--The term
`high-performance energy efficiency measure' means a
technology, product, or practice that will result in
substantial operational cost savings by reducing energy
consumption and utility costs.
``(2) Separate spaces.--The term `separate spaces' means
areas within a commercial building that are leased or
otherwise occupied by a tenant or other occupant for a period
of time pursuant to the terms of a written agreement.
``(b) Study.--
``(1) In general.--Not later than 1 year after the date of
enactment of this section, the Secretary, acting through the
Assistant Secretary of Energy Efficiency and Renewable
Energy, shall complete a study on the feasibility of--
``(A) significantly improving energy efficiency in
commercial buildings through the design and construction, by
owners and tenants, of separate spaces with high-performance
energy efficiency measures; and
``(B) encouraging owners and tenants to implement high-
performance energy efficiency measures in separate spaces.
``(2) Scope.--The study shall, at a minimum, include--
``(A) descriptions of--
``(i) high-performance energy efficiency measures that
should be considered as part of the initial design and
construction of separate spaces;
``(ii) processes that owners, tenants, architects, and
engineers may replicate when designing and constructing
separate spaces with high-performance energy efficiency
measures;
``(iii) policies and best practices to achieve reductions
in energy intensities for lighting, plug loads, heating,
cooling, cooking, laundry, and other systems to satisfy the
needs of the commercial building tenant;
``(iv) return on investment and payback analyses of the
incremental cost and projected energy savings of the proposed
set of high-performance energy efficiency measures, including
consideration of available incentives;
``(v) models and simulation methods that predict the
quantity of energy used by separate spaces with high-
performance energy efficiency measures and that compare that
predicted quantity to the quantity of energy used by separate
spaces without high-performance energy efficiency measures
but that otherwise comply with applicable building code
requirements;
``(vi) measurement and verification platforms demonstrating
actual energy use of high-performance energy efficiency
measures installed in separate spaces, and whether such
measures generate the savings intended in the initial design
and construction of the separate spaces;
``(vii) best practices that encourage an integrated
approach to designing and constructing separate spaces to
perform at optimum energy efficiency in conjunction with the
central systems of a commercial building; and
``(viii) any impact on employment resulting from the design
and construction of separate spaces with high-performance
energy efficiency measures; and
``(B) case studies reporting economic and energy saving
returns in the design and construction of separate spaces
with high-performance energy efficiency measures.
``(3) Public participation.--Not later than 90 days after
the date of the enactment of this section, the Secretary
shall publish a notice in the Federal Register requesting

[[Page S2805]]

public comments regarding effective methods, measures, and
practices for the design and construction of separate spaces
with high-performance energy efficiency measures.
``(4) Publication.--The Secretary shall publish the study
on the website of the Department of Energy.''.

SEC. 133. TENANT STAR PROGRAM.

Subtitle B of title IV of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17081 et seq.) (as amended by
section 132) is amended by adding at the end the following:

``SEC. 425. TENANT STAR PROGRAM.

``(a) Definitions.--In this section:
``(1) High-performance energy efficiency measure.--The term
`high-performance energy efficiency measure' has the meaning
given the term in section 424.
``(2) Separate spaces.--The term `separate spaces' has the
meaning given the term in section 424.
``(b) Tenant Star.--The Administrator of the Environmental
Protection Agency, in consultation with the Secretary of
Energy, shall develop a voluntary program within the Energy
Star program established by section 324A of the Energy Policy
and Conservation Act (42 U.S.C. 6294a), which may be known as
Tenant Star, to promote energy efficiency in separate spaces
leased by tenants or otherwise occupied within commercial
buildings.
``(c) Expanding Survey Data.--The Secretary of Energy,
acting through the Administrator of the Energy Information
Administration, shall--
``(1) collect, through each Commercial Buildings Energy
Consumption Survey of the Energy Information Administration
that is conducted after the date of enactment of this
section, data on--
``(A) categories of building occupancy that are known to
consume significant quantities of energy, such as occupancy
by data centers, trading floors, and restaurants; and
``(B) other aspects of the property, building operation, or
building occupancy determined by the Administrator of the
Energy Information Administration, in consultation with the
Administrator of the Environmental Protection Agency, to be
relevant in lowering energy consumption;
``(2) with respect to the first Commercial Buildings Energy
Consumption Survey conducted after the date of enactment of
this section, to the extent full compliance with the
requirements of paragraph (1) is not feasible, conduct
activities to develop the capability to collect such data and
begin to collect such data; and
``(3) make data collected under paragraphs (1) and (2)
available to the public in aggregated form and provide such
data, and any associated results, to the Administrator of the
Environmental Protection Agency for use in accordance with
subsection (d).
``(d)  Recognition of Owners and Tenants.--
``(1) Occupancy-based recognition.--Not later than 1 year
after the date on which sufficient data is received pursuant
to subsection (c), the Administrator of the Environmental
Protection Agency shall, following an opportunity for public
notice and comment--
``(A) in a manner similar to the Energy Star rating system
for commercial buildings, develop policies and procedures to
recognize tenants in commercial buildings that voluntarily
achieve high levels of energy efficiency in separate spaces;
``(B) establish building occupancy categories eligible for
Tenant Star recognition based on the data collected under
subsection (c) and any other appropriate data sources; and
``(C) consider other forms of recognition for commercial
building tenants or other occupants that lower energy
consumption in separate spaces.
``(2) Design- and construction-based recognition.--After
the study required by section 424(b) is completed, the
Administrator of the Environmental Protection Agency, in
consultation with the Secretary and following an opportunity
for public notice and comment, may develop a voluntary
program to recognize commercial building owners and tenants
that use high-performance energy efficiency measures in the
design and construction of separate spaces.''.

Subtitle E--Energy Information for Commercial Buildings

SEC. 141. ENERGY INFORMATION FOR COMMERCIAL BUILDINGS.

(a) Requirement of Benchmarking and Disclosure for Leasing
Buildings Without Energy Star Labels.--Section 435(b)(2) of
the Energy Independence and Security Act of 2007 (42 U.S.C.
17091(b)(2)) is amended--
(1) by striking ``paragraph (2)'' and inserting ``paragraph
(1)''; and
(2) by striking ``signing the contract,'' and all that
follows through the period at the end and inserting the
following:
``signing the contract, the following requirements are met:
``(A) The space is renovated for all energy efficiency and
conservation improvements that would be cost effective over
the life of the lease, including improvements in lighting,
windows, and heating, ventilation, and air conditioning
systems.
``(B)(i) Subject to clause (ii), the space is benchmarked
under a nationally recognized, online, free benchmarking
program, with public disclosure, unless the space is a space
for which owners cannot access whole building utility
consumption data, including spaces--
``(I) that are located in States with privacy laws that
provide that utilities shall not provide such aggregated
information to multitenant building owners; and
``(II) for which tenants do not provide energy consumption
information to the commercial building owner in response to a
request from the building owner.
``(ii) A Federal agency that is a tenant of the space shall
provide to the building owner, or authorize the owner to
obtain from the utility, the energy consumption information
of the space for the benchmarking and disclosure required by
this subparagraph.''.
(b) Department of Energy Study.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall complete a study,
with opportunity for public comment--
(A) on the impact of--
(i) State and local performance benchmarking and disclosure
policies, and any associated building efficiency policies,
for commercial and multifamily buildings; and
(ii) programs and systems in which utilities provide
aggregated information regarding whole building energy
consumption and usage information to owners of multitenant
commercial, residential, and mixed-use buildings;
(B) that identifies best practice policy approaches studied
under subparagraph (A) that have resulted in the greatest
improvements in building energy efficiency; and
(C) that considers--
(i) compliance rates and the benefits and costs of the
policies and programs on building owners, utilities, tenants,
and other parties;
(ii) utility practices, programs, and systems that provide
aggregated energy consumption information to multitenant
building owners, and the impact of public utility commissions
and State privacy laws on those practices, programs, and
systems;
(iii) exceptions to compliance in existing laws where
building owners are not able to gather or access whole
building energy information from tenants or utilities;
(iv) the treatment of buildings with--

(I) multiple uses;
(II) uses for which baseline information is not available;
and
(III) uses that require high levels of energy intensities,
such as data centers, trading floors, and televisions
studios;

(v) implementation practices, including disclosure methods
and phase-in of compliance;
(vi) the safety and security of benchmarking tools offered
by government agencies, and the resiliency of those tools
against cyber-attacks; and
(vii) international experiences with regard to building
benchmarking and disclosure laws and data aggregation for
multitenant buildings.
(2) Submission to congress.--At the conclusion of the
study, the Secretary shall submit to Congress a report on the
results of the study.
(c) Creation and Maintenance of Databases.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act and following opportunity for public
notice and comment, the Secretary, in coordination with other
relevant agencies shall, to carry out the purpose described
in paragraph (2)--
(A) assess existing databases; and
(B) as necessary--
(i) modify and maintain existing databases; or
(ii) create and maintain a new database platform.
(2) Purpose.--The maintenance of existing databases or
creation of a new database platform under paragraph (1) shall
be for the purpose of storing and making available public
energy-related information on commercial and multifamily
buildings, including--
(A) data provided under Federal, State, local, and other
laws or programs regarding building benchmarking and energy
information disclosure;
(B) buildings that have received energy ratings and
certifications; and
(C) energy-related information on buildings provided
voluntarily by the owners of the buildings, in an anonymous
form, unless the owner provides otherwise.
(d) Competitive Awards.--Based on the results of the
research for the portion of the study described in subsection
(b)(1)(A)(ii), and with criteria developed following public
notice and comment, the Secretary may make competitive awards
to utilities, utility regulators, and utility partners to
develop and implement effective and promising programs to
provide aggregated whole building energy consumption
information to multitenant building owners.
(e) Input From Stakeholders.--The Secretary shall seek
input from stakeholders to maximize the effectiveness of the
actions taken under this section.
(f) Report.--Not later than 2 years after the date of
enactment of this Act, and every 2 years thereafter, the
Secretary shall submit to Congress a report on the progress
made in complying with this section.
(g) Authorization of Appropriations.--There is authorized
to be appropriated to carry out subsection (b) $2,500,000 for
each of fiscal years 2014 through 2018, to remain available
until expended.

[[Page S2806]]

TITLE II--INDUSTRIAL EFFICIENCY AND COMPETITIVENESS

Subtitle A--Manufacturing Energy Efficiency

SEC. 201. PURPOSES.

The purposes of this subtitle are--
(1) to reform and reorient the industrial efficiency
programs of the Department of Energy;
(2) to establish a clear and consistent authority for
industrial efficiency programs of the Department;
(3) to accelerate the deployment of technologies and
practices that will increase industrial energy efficiency and
improve productivity;
(4) 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 efficiency;
(5) to stimulate domestic economic growth and improve
industrial productivity and competitiveness; and
(6) to strengthen partnerships between Federal and State
governmental agencies and the private and academic sectors.

SEC. 202. FUTURE OF INDUSTRY PROGRAM.

(a) In General.--Section 452 of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17111) is amended by striking
the section heading and inserting the following: ``future of
industry program''.
(b) Definition of Energy Service Provider.--Section 452(a)
of the Energy Independence and Security Act of 2007 (42
U.S.C. 17111(a)) is amended--
(1) by redesignating paragraphs (3) through (5) as
paragraphs (4) through (6), respectively; and
(2) by inserting after paragraph (2):
``(3) Energy service provider.--The term `energy service
provider' means any business providing technology or services
to improve the energy efficiency, power factor, or load
management of a manufacturing site or other industrial
process in an energy-intensive industry, or any utility
operating under a utility energy service project.''.
(c) Industrial Research and Assessment Centers.--Section
452(e) of the Energy Independence and Security Act of 2007
(42 U.S.C. 17111(e)) is amended--
(1) by redesignating paragraphs (1) through (5) as
subparagraphs (A) through (E), respectively, and indenting
appropriately;
(2) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary'';
(3) in subparagraph (A) (as redesignated by paragraph (1)),
by inserting before the semicolon at the end the following:
``, including assessments of sustainable manufacturing goals
and the implementation of information technology advancements
for supply chain analysis, logistics, system monitoring,
industrial and manufacturing processes, and other purposes'';
and
(4) by adding at the end the following:
``(2) Coordination.--
``(A) In general.--To increase the value and capabilities
of the industrial research and assessment centers, the
centers shall--
``(i) coordinate with Manufacturing Extension Partnership
Centers of the National Institute of Standards and
Technology;
``(ii) coordinate with the Building Technologies Program of
the Department of Energy to provide building assessment
services to manufacturers;
``(iii) increase partnerships with the National
Laboratories of the Department of Energy to leverage the
expertise and technologies of the National Laboratories for
national industrial and manufacturing needs;
``(iv) increase partnerships with energy service providers
and technology providers to leverage private sector expertise
and accelerate deployment of new and existing technologies
and processes for energy efficiency, power factor, and load
management;
``(v) identify opportunities for reducing greenhouse gas
emissions; and
``(vi) promote sustainable manufacturing practices for
small- and medium-sized manufacturers.
``(3) Outreach.--The Secretary shall provide funding for--
``(A) outreach activities by the industrial research and
assessment centers to inform small- and medium-sized
manufacturers of the information, technologies, and services
available; and
``(B) coordination activities by each industrial research
and assessment center to leverage efforts with--
``(i) Federal and State efforts;
``(ii) the efforts of utilities and energy service
providers;
``(iii) the efforts of regional energy efficiency
organizations; and
``(iv) the efforts of other industrial research and
assessment centers.
``(4) Workforce training.--
``(A) In general.--The Secretary shall pay the Federal
share of associated internship programs under which students
work with or for industries, manufacturers, and energy
service providers to implement the recommendations of
industrial research and assessment centers.
``(B) Federal share.--The Federal share of the cost of
carrying out internship programs described in subparagraph
(A) shall be 50 percent.
``(5) Small business loans.--The Administrator of the Small
Business Administration shall, to the maximum extent
practicable, expedite consideration of applications from
eligible small business concerns for loans under the Small
Business Act (15 U.S.C. 631 et seq.) to implement
recommendations of industrial research and assessment centers
established under paragraph (1).
``(6) Advanced manufacturing steering committee.--The
Secretary shall establish an advisory steering committee to
provide recommendations to the Secretary on planning and
implementation of the Advanced Manufacturing Office of the
Department of Energy.''.

SEC. 203. SUSTAINABLE MANUFACTURING INITIATIVE.

(a) In General.--Part E of title III of the Energy Policy
and Conservation Act (42 U.S.C. 6341) is amended by adding at
the end the following:

``SEC. 376. SUSTAINABLE MANUFACTURING INITIATIVE.

``(a) In General.--As part of the Office of Energy
Efficiency and Renewable Energy, the Secretary, on the
request of a manufacturer, shall conduct onsite technical
assessments to identify opportunities for--
``(1) maximizing the energy efficiency of industrial
processes and cross-cutting systems;
``(2) preventing pollution and minimizing waste;
``(3) improving efficient use of water in manufacturing
processes;
``(4) conserving natural resources; and
``(5) achieving such other goals as the Secretary
determines to be appropriate.
``(b) Coordination.--The Secretary shall carry out the
initiative in coordination with the private sector and
appropriate agencies, including the National Institute of
Standards and Technology, to accelerate adoption of new and
existing technologies and processes that improve energy
efficiency.
``(c) Research and Development Program for Sustainable
Manufacturing and Industrial Technologies and Processes.--As
part of the industrial efficiency programs of the Department
of Energy, the Secretary shall carry out a joint industry-
government partnership program to research, develop, and
demonstrate new sustainable manufacturing and industrial
technologies and processes that maximize the energy
efficiency of industrial plants, reduce pollution, and
conserve natural resources.''.
(b) Table of Contents.--The table of contents of the Energy
Policy and Conservation Act (42 U.S.C. prec. 6201) is amended
by adding at the end of the items relating to part E of title
III the following:

``Sec. 376. Sustainable manufacturing initiative.''.

SEC. 204. CONFORMING AMENDMENTS.

(a) Section 106 of the Energy Policy Act of 2005 (42 U.S.C.
15811) is repealed.
(b) Sections 131, 132, 133, 2103, and 2107 of the Energy
Policy Act of 1992 (42 U.S.C. 6348, 6349, 6350, 13453, 13456)
are repealed.
(c) Section 2101(a) of the Energy Policy Act of 1992 (42
U.S.C. 13451(a)) is amended in the third sentence by striking
``sections 2102, 2103, 2104, 2105, 2106, 2107, and 2108'' and
inserting ``sections 2102, 2104, 2105, 2106, and 2108 of this
Act and section 376 of the Energy Policy and Conservation
Act,''.

Subtitle B--Supply Star

SEC. 211. SUPPLY STAR.

The Energy Policy and Conservation Act is amended by
inserting after section 324A (42 U.S.C. 6294a) the following:

``SEC. 324B. SUPPLY STAR PROGRAM.

``(a) In General.--There is established within the
Department of Energy a Supply Star program to identify and
promote practices, recognize companies, and, as appropriate,
recognize products that use highly efficient supply chains in
a manner that conserves energy, water, and other resources.
``(b) Coordination.--In carrying out the program described
in subsection (a), the Secretary shall--
``(1) consult with other appropriate agencies; and
``(2) coordinate efforts with the Energy Star program
established under section 324A.
``(c) Duties.--In carrying out the Supply Star program
described in subsection (a), the Secretary shall--
``(1) promote practices, recognize companies, and, as
appropriate, recognize products that comply with the Supply
Star program as the preferred practices, companies, and
products in the marketplace for maximizing supply chain
efficiency;
``(2) work to enhance industry and public awareness of the
Supply Star program;
``(3) collect and disseminate data on supply chain energy
resource consumption;
``(4) develop and disseminate metrics, processes, and
analytical tools (including software) for evaluating supply
chain energy resource use;
``(5) develop guidance at the sector level for improving
supply chain efficiency;
``(6) work with domestic and international organizations to
harmonize approaches to analyzing supply chain efficiency,
including the development of a consistent set of tools,
templates, calculators, and databases; and
``(7) work with industry, including small businesses, to
improve supply chain efficiency through activities that
include--
``(A) developing and sharing best practices; and
``(B) providing opportunities to benchmark supply chain
efficiency.
``(d) Evaluation.--In any evaluation of supply chain
efficiency carried out by the Secretary with respect to a
specific product, the Secretary shall consider energy
consumption and resource use throughout the entire lifecycle
of a product, including production, transport, packaging,
use, and disposal.

[[Page S2807]]

``(e) Grants and Incentives.--
``(1) In general.--The Secretary may award grants or other
forms of incentives on a competitive basis to eligible
entities, as determined by the Secretary, for the purposes
of--
``(A) studying supply chain energy resource efficiency; and
``(B) demonstrating and achieving reductions in the energy
resource consumption of commercial products through changes
and improvements to the production supply and distribution
chain of the products.
``(2) Use of information.--Any information or data
generated as a result of the grants or incentives described
in paragraph (1) shall be used to inform the development of
the Supply Star Program.
``(f) Training.--The Secretary shall use funds to support
professional training programs to develop and communicate
methods, practices, and tools for improving supply chain
efficiency.
``(g) Effect of Outsourcing of American Jobs.--For purposes
of this section, the outsourcing of American jobs in the
production of a product shall not count as a positive factor
in determining supply chain efficiency.
``(h) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $10,000,000 for
the period of fiscal years 2014 through 2023.''.

Subtitle C--Electric Motor Rebate Program

SEC. 221. ENERGY SAVING MOTOR CONTROL, ELECTRIC MOTOR, AND
ADVANCED MOTOR SYSTEMS REBATE PROGRAM.

(a) Definitions.--In this section:
(1) Advanced motor and drive system.--The term ``advanced
motor and drive system'' means an electric motor and any
required associated electronic control that--
(A) offers variable or multiple speed operation;
(B) offers efficiency at a rated full load that is greater
than the efficiency described for the equivalent rating in--
(i) table 12-12 of National Electrical Manufactures
Association (NEMA MG 1-2011); or
(ii) section 431.446 of National Electrical Manufactures
Association (2012); and
(C) uses--
(i) permanent magnet alternating current synchronous motor
technology;
(ii) electronically commutated motor technology;
(iii) switched reluctance motor technology;
(iv) synchronous reluctance motor technology; or
(v) such other motor that has greater than 1 horsepower and
uses a drive systems technology, as determined by the
Secretary.
(2) Electric motor.--The term ``electric motor'' has the
meaning given the term in section 431.12 of title 10, Code of
Federal Regulations (as in effect on the date of enactment of
this Act).
(3) Qualified product.--The term ``qualified product''
means--
(A) a new constant speed electric motor control that--
(i) is attached to an electric motor; and
(ii) reduces the energy use of the electric motor by not
less than 5 percent; and
(B) commercial or industrial machinery or equipment that--
(i) is manufactured and incorporates an advanced motor and
drive system that has greater than 1 horsepower into a
redesigned machine or equipment that did not previously make
use of the advanced motor and drive system; or
(ii) was previously used and placed back into service in
calendar year 2014 or 2015 that upgrades the existing machine
or equipment with an advanced motor and drive system.
(b) Establishment.--Not later than 90 days after the date
of enactment of this Act, the Secretary shall establish a
program to provide rebates for expenditures made by qualified
entities for the purchase and installation of qualified
products.
(c) Qualified Entities.--A qualified entity under this
section shall be--
(1) in the case of a qualified product described in
subsection (a)(3)(A), the purchaser of the qualified product
for whom the qualified product is installed; and
(2) in the case of a qualified product described in
subsection (a)(3)(B)), the manufacturer of the machine or
equipment that incorporated the advanced motor and drive
system into the machine or equipment.
(d) Requirements.--
(1) Application.--To be eligible to receive a rebate under
this section, a qualified entity shall submit to the
Secretary or an entity designated by the Secretary an
application and certification in such form, at such time, and
containing such information as the Secretary may require,
including demonstrated evidence that the qualified entity
purchased a qualified product and--
(A) in the case of a qualified product described in
subsection (a)(3)(A)--
(i) demonstrated evidence that the qualified entity
installed the qualified product in calendar year 2014 or
2015;
(ii) demonstrated evidence that the qualified product
reduces motor energy use by not less than 5 percent, in
accordance with procedures approved by the Secretary; and
(iii) the serial number, manufacturer, and model number
from the nameplate of the installed motor of the qualified
entity on which the qualified product was installed; and
(B) in the case of a qualified product described in
subsection (a)(3)(B)--
(i) demonstrated evidence that the manufacturer--

(I) redesigned a machine or equipment of a manufacturer
that did not previously make use of an advanced motor and
drive system; or
(II) upgraded a used machine or equipment to incorporate an
advanced motor and drive system;

(ii) demonstrated evidence that the qualified product was
sold, installed, or placed back into service in calendar year
2014 or 2015; and
(iii) the serial number, manufacturer, and model number
from the nameplate of the installed motor of the qualified
entity with which the advanced motor and drive system is
integrated.
(2) Authorized amount of rebate.--The Secretary may provide
to a qualified entity that has satisfied the requirements of
paragraph (1) a rebate the amount of which shall be equal to
the product obtained by multiplying--
(A) the nameplate rated horsepower of--
(i) the electric motor to which the new constant speed
electric motor control is attached;
(ii) the new electric motor that replaced a previously
installed electric motor; or
(iii) the advanced electric motor control system; and
(B) $25.
(3) Maximum aggregate amount.--No entity shall be entitled
to aggregate rebates under this section in excess of
$250,000.
(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $5,000,000 for
each of fiscal years 2014 and 2015, to remain available until
expended.

Subtitle D--Transformer Rebate Program

SEC. 231. ENERGY EFFICIENT TRANSFORMER REBATE PROGRAM.

(a) Definition of Qualified Transformer.--In this section,
the term ``qualified transformer'' means a transformer that
meets or exceeds the National Electrical Manufacturers
Association (NEMA) Premium Efficiency designation, calculated
to 2 decimal points, as having 30 percent fewer losses than
the NEMA TP-1-2002 efficiency standard for a transformer of
the same number of phases and capacity, as measured in
kilovolt-amperes.
(b) Establishment.--Not later than January 1, 2014, the
Secretary shall establish a program under which rebates are
provided for expenditures made by owners of industrial or
manufacturing facilities, commercial buildings, and
multifamily residential buildings for the purchase and
installation of a new energy efficient transformers.
(c) Requirements.--
(1) Application.--To be eligible to receive a rebate under
this section, an owner shall submit to the Secretary an
application in such form, at such time, and containing such
information as the Secretary may require, including
demonstrated evidence that the owner purchased a qualified
transformer.
(2) Authorized amount of rebate.--For qualified
transformers, rebates, in dollars per kilovolt-ampere
(referred to in this paragraph as ``kVA'') shall be--
(A) for 3-phase transformers--
(i) with a capacity of not greater than 10 kVA, 15;
(ii) with a capacity of not less than 10 kVA and not
greater than 100 kVA, the difference between 15 and the
quotient obtained by dividing--

(I) the difference between--

(aa) the capacity of the transformer in kVA; and
(bb) 10; by

(II) 9; and

(iii) with a capacity greater than or equal to 100 kVA, 5;
and
(B) for single-phase transformers, 75 percent of the rebate
for a 3-phase transformer of the same capacity.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $5,000,000 for
each of fiscal years 2014 and 2015, to remain available until
expended.
(e) Termination of Effectiveness.--The authority provided
by this section terminates effective December 31, 2015.

TITLE III--FEDERAL AGENCY ENERGY EFFICIENCY

SEC. 301. ENERGY-EFFICIENT AND ENERGY-SAVING INFORMATION
TECHNOLOGIES.

Section 543 of the National Energy Conservation Policy Act
(42 U.S.C. 8253) is amended--
(1) by redesignating the second subsection (f) (relating to
large capital energy investments) as subsection (g); and
(2) by adding at the end the following:
``(h) Federal Implementation Strategy for Energy-efficient
and Energy-Saving Information Technologies.--
``(1) Definitions.--In this subsection:
``(A) Director.--The term `Director' means the Director of
the Office of Management and Budget.
``(B) Information technology.--The term `information
technology' has the meaning given the term in section 11101
of title 40, United States Code.
``(2) Development of implementation strategy.--Not later
than 1 year after the date of enactment of this subsection,
each Federal agency shall collaborate with the Director to
develop an implementation strategy (including best-practices
and measurement and verification techniques) for the
maintenance, purchase, and use by the Federal agency of
energy-efficient and energy-saving information technologies.

[[Page S2808]]

``(3) Administration.--In developing an implementation
strategy, each Federal agency shall consider--
``(A) advanced metering infrastructure;
``(B) energy efficient data center strategies and methods
of increasing asset and infrastructure utilization;
``(C) advanced power management tools;
``(D) building information modeling, including building
energy management; and
``(E) secure telework and travel substitution tools.
``(4) Performance goals.--
``(A) In general.--Not later than September 30, 2014, the
Director, in consultation with the Secretary, shall establish
performance goals for evaluating the efforts of Federal
agencies in improving the maintenance, purchase, and use of
energy-efficient and energy-saving information technology
systems.
``(B) Best practices.--The Chief Information Officers
Council established under section 3603 of title 44, United
States Code, shall supplement the performance goals
established under this paragraph with recommendations on best
practices for the attainment of the performance goals, to
include a requirement for agencies to consider the use of--
``(i) energy savings performance contracting; and
``(ii) utility energy services contracting.
``(5) Reports.--
``(A) Agency reports.--Each Federal agency subject to the
requirements of this subsection shall include in the report
of the agency under section 527 of the Energy Independence
and Security Act of 2007 (42 U.S.C. 17143) a description of
the efforts and results of the agency under this subsection.
``(B) OMB government efficiency reports and scorecards.--
Effective beginning not later than October 1, 2014, the
Director shall include in the annual report and scorecard of
the Director required under section 528 of the Energy
Independence and Security Act of 2007 (42 U.S.C. 17144) a
description of the efforts and results of Federal agencies
under this subsection.
``(C) 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 Act of
2014.''.

SEC. 302. AVAILABILITY OF FUNDS FOR DESIGN UPDATES.

Section 3307 of title 40, United States Code, is amended--
(1) by redesignating subsections (d) through (h) as
subsections (e) through (i), respectively; and
(2) by inserting after subsection (c) the following:
``(d) Availability of Funds for Design Updates.--
``(1) In general.--Subject to paragraph (2), for any
project for which congressional approval is received under
subsection (a) and for which the design has been
substantially completed but construction has not begun, the
Administrator of General Services may use appropriated funds
to update the project design to meet applicable Federal
building energy efficiency standards established under
section 305 of the Energy Conservation and Production Act (42
U.S.C. 6834) and other requirements established under section
3312.
``(2) Limitation.--The use of funds under paragraph (1)
shall not exceed 125 percent of the estimated energy or other
cost savings associated with the updates as determined by a
life cycle cost analysis under section 544 of the National
Energy Conservation Policy Act (42 U.S.C. 8254).''.

SEC. 303. ENERGY EFFICIENT DATA CENTERS.

Section 453 of the Energy Independence and Security Act of
2007 (42 U.S.C. 17112) is amended--
(1) in subsection (c), by striking paragraph (1) and
inserting the following:
``(1) In general.--Not later than 30 days after the date of
enactment of the Energy Savings and Industrial
Competitiveness Act of 2014, the Secretary and the
Administrator shall--
``(A) designate an established information technology
industry organization to coordinate the program described in
subsection (b); and
``(B) make the designation public, including on an
appropriate website.'';
(2) by striking subsections (e) and (f) and inserting the
following:
``(e) Study.--The Secretary, with assistance from the
Administrator, shall--
``(1) not later than December 31, 2014, make available to
the public an update to the Report to Congress on Server and
Data Center Energy Efficiency published on August 2, 2007,
under section 1 of Public Law 109-431 (120 Stat. 2920), that
provides--
``(A) a comparison and gap analysis of the estimates and
projections contained in the original report with new data
regarding the period from 2007 through 2013;
``(B) an analysis considering the impact of information
technologies, to include virtualization and cloud computing,
in the public and private sectors; and
``(C) updated projections and recommendations for best
practices through fiscal year 2020; and
``(2) collaborate with the organization designated under
subsection (c) in preparing the report.
``(f) Data Center Energy Practitioner Program.--
``(1) In general.--The Secretary, in collaboration with the
organization designated under subsection (c) and in
consultation with the Administrator for the Office of E-
Government and Information Technology within the Office of
Management and Budget, shall maintain a data center energy
practitioner program that leads to the certification of
energy practitioners qualified to evaluate the energy usage
and efficiency opportunities in data centers.
``(2) Evaluations.--Each Federal agency shall consider
having the data centers of the agency evaluated every 4 years
by energy practitioners certified pursuant to the program,
whenever practicable using certified practitioners employed
by the agency.'';
(3) by redesignating subsection (g) as subsection (j); and
(4) by inserting after subsection (f) the following:
``(g) Open Data Initiative.--
``(1) In general.--The Secretary, in collaboration with the
organization designated under subsection (c) and in
consultation with the Administrator for the Office of E-
Government and Information Technology within the Office of
Management and Budget, shall establish an open data
initiative for Federal data center energy usage data, with
the purpose of making the data available and accessible in a
manner that empowers further data center optimization and
consolidation.
``(2) Administration.--In establishing the initiative, the
Secretary shall consider use of the online Data Center
Maturity Model.
``(h) International Specifications and Metrics.--The
Secretary, in collaboration with the organization designated
under subsection (c), shall actively participate in efforts
to harmonize global specifications and metrics for data
center energy efficiency.
``(i) Data Center Utilization Metric.--The Secretary, in
collaboration with the organization designated under
subsection (c), shall assist in the development of an
efficiency metric that measures the energy efficiency of the
overall data center.''.

SEC. 304. BUDGET-NEUTRAL DEMONSTRATION PROGRAM FOR ENERGY AND
WATER CONSERVATION IMPROVEMENTS AT MULTIFAMILY
RESIDENTIAL UNITS.

(a) Establishment.--The Secretary of Housing and Urban
Development (referred to in this section as the
``Secretary'') shall establish a demonstration program under
which, during the period beginning on the date of enactment
of this Act, and ending on September 30, 2017, the Secretary
may enter into budget-neutral, 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 20,000
residential units in multifamily buildings participating in--
(1) the project-based rental assistance program under
section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f), other than assistance provided under section 8(o) of
that Act;
(2) the supportive housing for the elderly program under
section 202 of the Housing Act of 1959 (12 U.S.C. 1701q); or
(3) the supportive housing for persons with disabilities
program under section 811(d)(2) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 8013(d)(2)).
(b) Requirements.--
(1) Payments contingent on savings.--
(A) 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 properties, as determined by the Secretary, in accordance
with subparagraph (B).
(B) Payment methodology.--
(i) In general.--Each agreement under this section shall
include a pay-for-success provision--

(I) that will serve as a payment threshold for the term of
the agreement; and
(II) 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 section.

(ii) Limitations.--A payment made by the Secretary under an
agreement under this section shall--

(I) be contingent on documented utility savings; and
(II) not exceed the utility savings achieved by the date of
the payment, and not previously paid, as a result of the
improvements made under the agreement.

(C) 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--
(i) establishment of a weather-normalized and occupancy-
normalized utility consumption baseline established
preretrofit;
(ii) annual third party confirmation of actual utility
consumption and cost for owner-paid utilities;
(iii) annual third party validation of the tenant utility
allowances in effect during the applicable year and vacancy
rates for each unit type; and
(iv) annual third party determination of savings to the
Secretary.
(2) Term.--The term of an agreement under this section
shall be not longer than 12 years.
(3) Entity eligibility.--The Secretary shall--

[[Page S2809]]

(A) establish a competitive process for entering into
agreements under this section; and
(B) enter into such agreements only with entities that
demonstrate significant experience relating to--
(i) financing and operating properties receiving assistance
under a program described in subsection (a);
(ii) oversight of energy and water conservation programs,
including oversight of contractors; and
(iii) raising capital for energy and water conservation
improvements from charitable organizations or private
investors.
(4) Geographical diversity.--Each agreement entered into
under this section shall provide for the inclusion of
properties with the greatest feasible regional and State
variance.
(c) Plan and Reports.--
(1) Plan.--Not later than 90 days after the date of
enactment of this Act, 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
section.
(2) Reports.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, the Secretary
shall--
(A) conduct an evaluation of the program under this
section; and
(B) submit to Congress a report describing each evaluation
conducted under subparagraph (A).
(d) Funding.--For each fiscal year during which an
agreement under this section is in effect, 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 (a).

TITLE IV--REGULATORY PROVISIONS

Subtitle A--Third-party Certification Under Energy Star Program

SEC. 401. THIRD-PARTY CERTIFICATION UNDER ENERGY STAR
PROGRAM.

Section 324A of the Energy Policy and Conservation Act (42
U.S.C. 6294a) is amended by adding at the end the following:
``(e) Third-party Certification.--
``(1) In general.--Subject to paragraph (2), not later than
180 days after the date of enactment of this subsection, the
Administrator shall revise the certification requirements for
the labeling of consumer, home, and office electronic
products for program partners that have complied with all
requirements of the Energy Star program for a period of at
least 18 months.
``(2) Administration.--In the case of a program partner
described in paragraph (1), the new requirements under
paragraph (1)--
``(A) shall not require third-party certification for a
product to be listed; but
``(B) may require that test data and other product
information be submitted to facilitate product listing and
performance verification for a sample of products.
``(3) Third parties.--Nothing in this subsection prevents
the Administrator from using third parties in the course of
the administration of the Energy Star program.
``(4) Termination.--
``(A) In general.--Subject to subparagraph (B), an
exemption from third-party certification provided to a
program partner under paragraph (1) shall terminate if the
program partner is found to have violated program
requirements with respect to at least 2 separate models
during a 2-year period.
``(B) Resumption.--A termination for a program partner
under subparagraph (A) shall cease if the program partner
complies with all Energy Star program requirements for a
period of at least 3 years.''.

Subtitle B--Federal Green Buildings

SEC. 411. HIGH-PERFORMANCE GREEN FEDERAL BUILDINGS.

Section 436(h) of the Energy Independence and Security Act
of 2007 (42 U.S.C. 17092(h)) is amended--
(1) in the subsection heading, by striking ``System'' and
inserting ``Systems'';
(2) by striking paragraph (1) and inserting the following:
``(1) In general.--Based on an ongoing review, the Federal
Director shall identify and shall provide to the Secretary
pursuant to section 305(a)(3)(D) of the Energy Conservation
and Production Act (42 U.S.C. 6834(a)(3)(D)), 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 buildings.''; and
(3) in paragraph (2)--
(A) in the matter preceding subparagraph (A), by striking
``system'' and inserting ``systems'';
(B) by striking subparagraph (A) and inserting the
following:
``(A) an ongoing review provided to the Secretary pursuant
to section 305(a)(3)(D) of the Energy Conservation and
Production Act (42 U.S.C. 6834(a)(3)(D)), which shall--
``(i) be carried out by the Federal Director to compare and
evaluate standards; and
``(ii) allow any developer or administrator of a rating
system or certification system to be included in the
review;'';
(C) in subparagraph (E)(v), by striking ``and'' after the
semicolon at the end;
(D) in subparagraph (F), by striking the period at the end
and inserting a semicolon; and
(E) by adding at the end the following:
``(G) a finding that, for all credits addressing grown,
harvested, or mined materials, the system does not
discriminate against the use of domestic products that have
obtained certifications of responsible sourcing; and
``(H) a finding that the system incorporates life-cycle
assessment as a credit pathway.''.

Subtitle C--Water Heaters

SEC. 421. GRID-ENABLED WATER HEATERS.

Part B of title III of the Energy Policy and Conservation
Act (42 U.S.C. 6291 et seq.) is amended--
(1) in section 325(e), by adding at the end the following:
``(6) Additional standards for grid-enabled water
heaters.--
``(A) Definitions.--In this paragraph:
``(i) Activation key.--The term `activation key' means a
physical device or control directly on the water heater, a
software code, or a digital communication means--

``(I) that must be activated to enable the product to
operate continuously and at its designed specifications and
capabilities; and
``(II) without which activation the product will provide
not greater than 50 percent of the rated first hour delivery
of hot water certified by the manufacturer.

``(ii) Grid-enabled water heater.--The term `grid-enabled
water heater' means an electric resistance water heater--

``(I) with a rated storage tank volume of more than 75
gallons;
``(II) manufactured on or after April 16, 2015;
``(III) that has--

``(aa) an energy factor of not less than 1.061 minus the
product obtained by multiplying--
``(AA) the rated storage volume of the tank, expressed in
gallons; and
``(BB) 0.00168; or
``(bb) an efficiency level equivalent to the energy factor
under item (aa) and expressed as a uniform energy descriptor
based on the revised test procedure for water heaters
described in paragraph (5);

``(IV) equipped by the manufacturer with an activation key;
and
``(V) that bears a permanent label applied by the
manufacturer that--

``(aa) is made of material not adversely affected by water;
``(bb) is attached by means of non-water-soluble adhesive;
and
``(cc) advises purchasers and end-users of the intended and
appropriate use of the product with the following notice
printed in 16.5 point Arial Narrow Bold font:

`` `IMPORTANT INFORMATION: This water heater is intended only
for use as part of an electric thermal storage or demand
response program. It will not provide adequate hot water
unless enrolled in such a program and activated by your
utility company or another program operator. Confirm the
availability of a program in your local area before
purchasing or installing this product.'.
``(B) Requirement.--The manufacturer or private labeler
shall provide the activation key only to utilities or other
companies operating electric thermal storage or demand
response programs that use grid-enabled water heaters.
``(C) Reports.--
``(i) Manufacturers.--The Secretary shall require each
manufacturer of grid-enabled water heaters to report to the
Secretary annually the number of grid-enabled water heaters
that the manufacturer ships each year.
``(ii) Operators.--The Secretary shall require utilities
and other demand response and thermal storage program
operators to report annually the number of grid-enabled water
heaters activated for their programs using forms of the
Energy Information Agency or using such other mechanism that
the Secretary determines appropriate after an opportunity for
notice and comment.
``(iii) Confidentiality requirements.--The Secretary shall
treat shipment data reported by manufacturers as confidential
business information.
``(D) Publication of information.--
``(i) In general.--In 2017 and 2019, the Secretary shall
publish an analysis of the data collected under subparagraph
(C) to assess the extent to which shipped products are put
into use in demand response and thermal storage programs.
``(ii) Prevention of product diversion.--If the Secretary
determines that sales of grid-enabled water heaters exceed by
15 percent or greater the number of such products activated
for use in demand response and thermal storage programs
annually, the Secretary shall, after opportunity for notice
and comment, establish procedures to prevent product
diversion for non-program purposes.
``(E) Compliance.--
``(i) In general.--Subparagraphs (A) through (D) shall
remain in effect until the Secretary determines under this
section that grid-enabled water heaters do not require a
separate efficiency requirement.
``(ii) Effective date.--If the Secretary exercises the
authority described in clause (i) or amends the efficiency
requirement for grid-enabled water heaters, that action will
take effect on the date described in subsection
(m)(4)(A)(ii).
``(iii) Consideration.--In carrying out this section with
respect to electric water heaters, the Secretary shall
consider the impact on thermal storage and demand response
programs, including the consequent impact on energy savings,
electric bills, electric reliability, integration of
renewable resources, and the environment.
``(iv) Requirements.--In carrying out this subparagraph,
the Secretary shall require

[[Page S2810]]

that grid-enabled water heaters be equipped with
communication capability to enable the grid-enabled water
heaters to participate in ancillary services programs if the
Secretary determines that the technology is available,
practical, and cost-effective.''; and
(2) in section 332--
(A) in paragraph (5), by striking ``or'' at the end;
(B) in the first paragraph (6), by striking the period at
the end and inserting a semicolon;
(C) by redesignating the second paragraph (6) as paragraph
(7);
(D) in subparagraph (B) of paragraph (7) (as so
redesignated), by striking the period at the end and
inserting ``; or''; and
(E) by adding at the end the following:
``(8) with respect to grid-enabled water heaters that are
not used as part of an electric thermal storage or demand
response program, for any person knowingly and repeatedly--
``(A) to distribute activation keys for those grid-enabled
water heaters;
``(B) otherwise to enable the full operation of those grid-
enabled water heaters; or
``(C) to remove or render illegible the labels of those
grid-enabled water heaters.''.

Subtitle D--Energy Performance Requirement for Federal Buildings

SEC. 431. ENERGY PERFORMANCE REQUIREMENT FOR FEDERAL
BUILDINGS.

Section 543 of the National Energy Conservation Policy Act
(42 U.S.C. 8253) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) Energy Performance Requirement for Federal
Buildings.--
``(1) Requirement.--Subject to paragraph (2), each agency
shall apply energy conservation measures to, and shall
improve the design for the construction of, the Federal
buildings of the agency (including each industrial or
laboratory facility) so that the energy consumption per gross
square foot of the Federal buildings of the agency in fiscal
years 2006 through 2017 is reduced, as compared with the
energy consumption per gross square foot of the Federal
buildings of the agency in fiscal year 2003, by the
percentage specified in the following table:

Percentage
``Fiscal Year                                                 Reduction
2006..............................................................  2
2007..............................................................  4
2008..............................................................  9
2009.............................................................. 12
2010.............................................................. 15
2011.............................................................. 18
2012.............................................................. 21
2013.............................................................. 24
2014.............................................................. 27
2015.............................................................. 30
2016.............................................................. 33
2017.............................................................. 36
``(2) Exclusion for buildings with energy intensive
activities.--
``(A) In general.--An agency may exclude from the
requirements of paragraph (1) any building (including the
associated energy consumption and gross square footage) in
which energy intensive activities are carried out.
``(B) Reports.--Each agency shall identify and list in each
report made under section 548(a) the buildings designated by
the agency for exclusion under subparagraph (A).
``(3) Review.--Not later than December 31, 2017, the
Secretary shall--
``(A) review the results of the implementation of the
energy performance requirements established under paragraph
(1); and
``(B) based on the review conducted under subparagraph (A),
submit to Congress a report that addresses the feasibility of
requiring each agency to apply energy conservation measures
to, and improve the design for the construction of, the
Federal buildings of the agency (including each industrial or
laboratory facility) so that the energy consumption per gross
square foot of the Federal buildings of the agency in each of
fiscal years 2018 through 2030 is reduced, as compared with
the energy consumption per gross square foot of the Federal
buildings of the agency in the prior fiscal year, by 3
percent.''; and
(2) in subsection (f)--
(A) in paragraph (1)--
(i) by redesignating subparagraphs (E), (F), and (G) as
subparagraphs (F), (G), and (H), respectively; and
(ii) by inserting after subparagraph (D) the following:
``(E) Ongoing commissioning.--The term `ongoing
commissioning' means an ongoing process of commissioning
using monitored data, the primary goal of which is to ensure
continuous optimum performance of a facility, in accordance
with design or operating needs, over the useful life of the
facility, while meeting facility occupancy requirements.'';
(B) in paragraph (2), by adding at the end the following:
``(C) Energy management system.--An energy manager
designated under subparagraph (A) 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 50001 and
entitled `Energy Management Systems'.'';
(C) by striking paragraphs (3) and (4) and inserting the
following:
``(3) Energy and water evaluations and commissioning.--
``(A) Evaluations.--Except as provided in subparagraph (B),
effective beginning on the date that is 180 days after the
date of enactment of the Energy Savings and Industrial
Competitiveness Act of 2014, and annually thereafter, each
energy manager shall complete, for each calendar year, a
comprehensive energy and water evaluation and recommissioning
or retrocommissioning for approximately 25 percent of the
facilities of each agency that meet the criteria under
paragraph (2)(B) in a manner that ensures that an evaluation
of each facility is completed at least once every 4 years.
``(B) Exceptions.--An evaluation and recommissioning shall
not be required under subparagraph (A) with respect to a
facility that--
``(i) has had a comprehensive energy and water evaluation
during the 8-year period preceding the date of the
evaluation;
``(ii)(I) has been commissioned, recommissioned, or
retrocommissioned during the 10-year period preceding the
date of the evaluation; or
``(II) is under ongoing commissioning;
``(iii) has not had a major change in function or use since
the previous evaluation and commissioning;
``(iv) has been benchmarked with public disclosure under
paragraph (8) within the year preceding the evaluation; and
``(v)(I) based on the benchmarking, has achieved at a
facility level the most recent cumulative energy savings
target under subsection (a) compared to the earlier of--

``(aa) the date of the most recent evaluation; or
``(bb) the date--

``(AA) of the most recent commissioning, recommissioning,
or retrocommissioning; or
``(BB) on which ongoing commissioning began; or
``(II) has a long-term contract in place guaranteeing
energy savings at least as great as the energy savings target
under subclause (I).
``(4) Implementation of identified energy and water
efficiency measures.--
``(A) In general.--Not later than 2 years after the date of
completion of each evaluation under paragraph (3), each
energy manager may--
``(i) implement any energy- or water-saving measure that
the Federal agency identified in the evaluation conducted
under paragraph (3) that is life-cycle cost effective; and
``(ii) bundle individual measures of varying paybacks
together into combined projects.
``(B) Measures not implemented.--The energy manager shall,
as part of the certification system under paragraph (7),
explain the reasons why any life-cycle cost effective
measures were not implemented under subparagraph (A) using
guidelines developed by the Secretary.''; and
(D) in paragraph (7)(C), by adding at the end the
following:
``(iii) Summary report.--The Secretary shall make available
a report that summarizes the information tracked under
subparagraph (B)(i) by each agency and, as applicable, by
each type of measure.''.

SEC. 432. FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE
STANDARDS; CERTIFICATION SYSTEM AND LEVEL FOR
GREEN BUILDINGS.

(a) Definitions.--Section 303 of the Energy Conservation
and Production Act (42 U.S.C. 6832) (as amended by section
101(a)) is amended--
(1) in paragraph (6), by striking ``to be constructed'' and
inserting ``constructed or altered''; and
(2) by adding at the end the following:
``(19) 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 buildings, based on criteria to be established by the
Secretary through notice and comment rulemaking.''.
(b) Federal Building Efficiency Standards.--Section 305 of
the Energy Conservation and Production Act (42 U.S.C. 6834)
is amended--
(1) in subsection (a)(3)--
(A) by striking ``(3)(A) Not later than'' and all that
follows through subparagraph (B) and inserting the following:
``(3) Revised federal building energy efficiency
performance standards; certification for green buildings.--
``(A) Revised federal building energy efficiency
performance standards.--
``(i) In general.--Not later than 1 year after the date of
enactment of the Energy Savings and Industrial
Competitiveness Act of 2014, the Secretary shall establish,
by rule, revised Federal building energy efficiency
performance standards that require that--

``(I) new Federal buildings and alterations and additions
to existing Federal buildings--

``(aa) meet or exceed the most recent revision of the
International Energy Conservation Code (in the case of
residential buildings) or ASHRAE Standard 90.1 (in the case
of commercial buildings) as of the date of enactment of the
Energy Savings and Industrial Competitiveness Act of 2014;
and
``(bb) meet or exceed the energy provisions of State and
local building codes applicable to the building, if the codes
are more stringent than the International Energy Conservation
Code or ASHRAE Standard 90.1, as applicable;

``(II) unless demonstrated not to be life-cycle cost
effective for new Federal buildings and Federal buildings
with major renovations--

``(aa) the buildings be designed to achieve energy
consumption levels that are at least 30 percent below the
levels established in the

[[Page S2811]]

version of the ASHRAE Standard or the International Energy
Conservation Code, as appropriate, that is applied under
subclause (I)(aa), including updates under subparagraph (B);
and
``(bb) sustainable design principles are applied to the
location, siting, design, and construction of all new Federal
buildings and replacement Federal buildings;

``(III) if water is used to achieve energy efficiency,
water conservation technologies shall be applied to the
extent that the technologies are life-cycle cost effective;
``(IV) if life-cycle cost effective, as compared to other
reasonably available technologies, not less than 30 percent
of the hot water demand for each new Federal building or
Federal building undergoing a major renovation be met through
the installation and use of solar hot water heaters; and
``(V) in addition to complying with the other requirements
under this paragraph, unless found not to be life-cycle cost
effective, new Federal buildings that are at least 5,000
square feet in size shall comply with the Guiding Principles
for Sustainable New Construction and Major Renovations (as
established in the document entitled High Performance and
Sustainable Buildings Guidance (Final) and dated December 1,
2008).

``(ii) Limitation.--Clause (i)(I) shall not apply to
unaltered portions of existing Federal buildings and systems
that have been added to or altered.
``(B) Updates.--Not later than 1 year after the date of
approval of each subsequent revision of the ASHRAE Standard
or the International Energy Conservation Code, as
appropriate, the Secretary shall determine whether the
revised standards established under subparagraph (A) should
be updated to reflect the revisions, based on the energy
savings and life-cycle cost-effectiveness of the
revisions.'';
(B) in subparagraph (C), by striking ``(C) In the budget
request'' and inserting the following:
``(C) Budget request.--In the budget request''; and
(C) by striking subparagraph (D) and inserting the
following:
``(D) Certification for green buildings.--
``(i) Sustainable design principles.--Sustainable design
principles shall be applied to the siting, design, and
construction of buildings covered by this subparagraph.
``(ii) Selection of certification systems.--The Secretary,
after reviewing the findings of the Federal Director under
section 436(h) of the Energy Independence and Security Act of
2007 (42 U.S.C. 17092(h)), in consultation with the
Administrator of General Services, and in consultation with
the Secretary of Defense relating to those facilities under
the custody and control of the Department of Defense, 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
buildings.
``(iii) Basis for selection.--The determination of the
certification systems under clause (ii) shall be based on
ongoing review of the findings of the Federal Director under
section 436(h) of the Energy Independence and Security Act of
2007 (42 U.S.C. 17092(h)) and the criteria described in
clause (v).
``(iv) Administration.--In determining certification
systems under this subparagraph, the Secretary shall--

``(I) make a separate determination for all or part of each
system;
``(II) confirm that the criteria used to support the
selection of building products, materials, brands, and
technologies are fair and neutral (meaning that such criteria
are based on an objective assessment of relevant technical
data), do not prohibit, disfavor, or discriminate against
selection based on technically inadequate information to
inform human or environmental risk, and are expressed to
prefer performance measures whenever performance measures may
reasonably be used in lieu of prescriptive measures; and
``(III) use environmental and health criteria that are
based on risk assessment methodology that is generally
accepted by the applicable scientific disciplines.

``(v) Considerations.--In determining the green building
certification systems under this subparagraph, the Secretary
shall take into consideration--

``(I) the ability and availability of assessors and
auditors to independently verify the criteria and measurement
of metrics at the scale necessary to implement this
subparagraph;
``(II) the ability of the applicable certification
organization to collect and reflect public comment;
``(III) the ability of the standard to be developed and
revised through a consensus-based process;
``(IV) an evaluation of the robustness of the criteria for
a high-performance green building, which shall give credit
for promoting--

``(aa) efficient and sustainable use of water, energy, and
other natural resources;
``(bb) use of renewable energy sources;
``(cc) improved indoor environmental quality through
enhanced indoor air quality, thermal comfort, acoustics, day
lighting, pollutant source control, and use of low-emission
materials and building system controls; and
``(dd) such other criteria as the Secretary determines to
be appropriate; and

``(V) national recognition within the building industry.

``(vi) Review.--The Secretary, in consultation with the
Administrator of General Services and the Secretary of
Defense, shall conduct an ongoing review to evaluate and
compare private sector green building certification systems,
taking into account--

``(I) the criteria described in clause (v); and
``(II) the identification made by the Federal Director
under section 436(h) of the Energy Independence and Security
Act of 2007 (42 U.S.C. 17092(h)).

``(vii) Exclusions.--

``(I) In general.--Subject to subclause (II), if a
certification system fails to meet the review requirements of
clause (v), the Secretary shall--

``(aa) identify the portions of the system, whether
prerequisites, credits, points, or otherwise, that meet the
review criteria of clause (v);
``(bb) determine the portions of the system that are
suitable for use; and
``(cc) exclude all other portions of the system from
identification and use.

``(II) Entire systems.--The Secretary shall exclude an
entire system from use if an exclusion under subclause (I)--

``(aa) impedes the integrated use of the system;
``(bb) creates disparate review criteria or unequal point
access for competing materials; or
``(cc) increases agency costs of the use.
``(viii) Internal certification processes.--The Secretary
may by rule allow Federal agencies to develop internal
certification processes, using certified professionals, in
lieu of certification by certification entities identified
under clause (ii).
``(ix) Privatized military housing.--With respect to
privatized military housing, the Secretary of Defense, after
consultation with the Secretary may, through rulemaking,
develop alternative certification systems and levels than the
systems and levels identified under clause (ii) that achieve
an equivalent result in terms of energy savings, sustainable
design, and green building performance.
``(x) Water conservation technologies.--In addition to any
use of water conservation technologies otherwise required by
this section, water conservation technologies shall be
applied to the extent that the technologies are life-cycle
cost-effective.
``(xi) Effective date.--

``(I) Determinations made after december 31, 2015.--The
amendments made by section 432(b)(1)(C) of the Energy Savings
and Industrial Competitiveness Act of 2014 shall apply to any
determination made by a Federal agency after December 31,
2015.
``(II) Determinations made on or before december 31,
2015.--This subparagraph (as in effect on the day before the
date of enactment of the Energy Savings and Industrial
Competitiveness Act of 2014) shall apply to any use of a
certification system for green commercial and residential
buildings by a Federal agency on or before December 31,
2015.''; and

(2) by striking subsections (c) and (d) and inserting the
following:
``(c) Periodic Review.--The Secretary shall--
``(1) once every 5 years, review the Federal building
energy standards established under this section; and
``(2) on completion of a review under paragraph (1), if the
Secretary determines that significant energy savings would
result, upgrade the standards to include all new energy
efficiency and renewable energy measures that are
technologically feasible and economically justified.''.

SEC. 433. ENHANCED ENERGY EFFICIENCY UNDERWRITING.

(a) Definitions.--In this section:
(1) Covered agency.--The term ``covered agency''--
(A) means--
(i) an executive agency, as that term is defined in section
102 of title 31, United States Code; and
(ii) any other agency of the Federal Government; and
(B) includes any enterprise, as that term is defined under
section 1303 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (12 U.S.C. 4502).
(2) Covered loan.--The term ``covered loan'' means a loan
secured by a home that is issued, insured, purchased, or
securitized by a covered agency.
(3) Homeowner.--The term ``homeowner'' means the mortgagor
under a covered loan.
(4) Mortgagee.--The term ``mortgagee'' means--
(A) an original lender under a covered loan or the holder
of a covered loan at the time at which that mortgage
transaction is consummated;
(B) any affiliate, agent, subsidiary, successor, 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 consummated;
(C) any servicer of a covered loan; and
(D) any subsequent purchaser, trustee, or transferee of any
covered loan issued by an original lender.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(6) Servicer.--The term ``servicer'' means the person or
entity responsible for the servicing of a covered loan,
including the person or entity who makes or holds a covered
loan if that person or entity also services the covered loan.
(7) Servicing.--The term ``servicing'' has the meaning
given the term in section 6(i) of

[[Page S2812]]

the Real Estate Settlement Procedures Act of 1974 (12 U.S.C.
2605(i)).
(b) Findings and Purposes.--
(1) Findings.--Congress finds that--
(A) energy costs for homeowners are a significant and
increasing portion of their household budgets;
(B) household energy use can vary substantially depending
on the efficiency and characteristics of the house;
(C) expected energy cost savings are important to the value
of the house;
(D) the current test for loan affordability used by most
covered agencies, commonly known as the ``debt-to-income''
test, is inadequate because it does not take into account the
expected energy cost savings for the homeowner of an energy
efficient home; and
(E) another loan limitation, commonly known as the ``loan-
to-value'' test, is tied to the appraisal, which often does
not adjust for efficiency features of houses.
(2) Purposes.--The purposes of this section are to--
(A) improve the accuracy of mortgage underwriting by
Federal mortgage agencies by ensuring that energy cost
savings are included in the underwriting process as described
below, and thus to reduce the amount of energy consumed by
homes and to facilitate the creation of energy efficiency
retrofit and construction jobs;
(B) require a covered agency to include the expected energy
cost savings of a homeowner as a regular expense in the
tests, such as the debt-to-income test, used to determine the
ability of the loan applicant to afford the cost of
homeownership for all loan programs; and
(C) 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 value, taking
precautions to avoid double-counting and to support safe and
sound lending.
(c) Enhanced Energy Efficiency Underwriting Criteria.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall, in consultation
with the advisory group established in subsection (f)(2),
develop and issue guidelines for a covered agency to
implement enhanced loan eligibility requirements, for use
when testing the ability of a loan applicant to repay a
covered loan, that account for the expected energy cost
savings for a loan applicant at a subject property, in the
manner set forth in paragraphs (2) and (3).
(2) Requirements to account for energy cost savings.--The
enhanced loan eligibility requirements under paragraph (1)
shall require that, for all covered loans for which an energy
efficiency report is voluntarily provided to the mortgagee by
the mortgagor, 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 expenses. To the extent
that a covered agency uses a test such as a debt-to-income
test that includes certain regular expenses, such as hazard
insurance and property taxes, the expected energy cost
savings shall be included as an offset to these expenses.
Energy costs to be assessed include the cost of electricity,
natural gas, oil, and any other fuel regularly used to supply
energy to the subject property.
(3) Determination of estimated energy cost savings.--
(A) In general.--The guidelines to be issued under
paragraph (1) shall include instructions for the covered
agency to calculate estimated energy cost savings using--
(i) the energy efficiency report;
(ii) an estimate of baseline average energy costs; and
(iii) additional sources of information as determined by
the Secretary.
(B) Report requirements.--For the purposes of subparagraph
(A), an energy efficiency report shall--
(i) estimate the expected energy cost savings specific to
the subject property, based on specific information about the
property;
(ii) be prepared in accordance with the guidelines to be
issued under paragraph (1); and
(iii) be prepared--

(I) in accordance with the Residential Energy Service
Network's Home Energy Rating System (commonly known as
``HERS'') by an individual certified by the Residential
Energy Service Network, unless the Secretary finds that the
use of HERS does not further the purposes of this section; or
(II) by other methods approved by the Secretary, in
consultation with the Secretary of Energy and the advisory
group established in subsection (f)(2), for use under this
section, which shall include a third-party quality assurance
procedure.

(C) Use by appraiser.--If an energy efficiency report is
used under paragraph (2), 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 efficiency.
(4) Required disclosure to consumer for a home with an
energy efficiency report.--If an energy efficiency report is
used under paragraph (2), the guidelines to be issued under
paragraph (1) shall require the mortgagee to--
(A) inform the loan applicant of the expected energy costs
as estimated in the energy efficiency report, in a manner and
at a time as prescribed by the Secretary, and if practicable,
in the documents delivered at the time of loan application;
and
(B) include the energy efficiency report in the
documentation for the loan provided to the borrower.
(5) Required disclosure to consumer for a home without an
energy efficiency report.--If an energy efficiency report is
not used under paragraph (2), the guidelines to be issued
under paragraph (1) shall require the mortgagee to inform the
loan applicant in a manner and at a time as prescribed by the
Secretary, and if practicable, in the documents delivered at
the time of loan application of--
(A) 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 property;
(B) the impact the typical energy cost savings would have
on monthly ownership costs of a typical home;
(C) the impact on the size of a mortgage that could be
obtained if the typical energy cost savings were reflected in
an energy efficiency report; and
(D) resources for improving the energy efficiency of a
home.
(6) Pricing of loans.--
(A) 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 loans.
(B) Imposition of certain material costs, impediments, or
penalties.--In the absence of a publicly disclosed analysis
that demonstrates significant additional default risk or
prepayment risk associated with the loans, a covered agency
shall not impose material costs, impediments, or penalties on
covered loans merely because the loan uses an energy
efficiency report or the enhanced loan eligibility
requirements required under this section.
(7) Limitations.--
(A) 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 loans.
(B) Prohibited actions.--A covered agency shall not--
(i) 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 subsection; or
(ii) impose greater buy back requirements, credit overlays,
or insurance requirements, including private mortgage
insurance, on covered loans merely because the loan uses an
energy efficiency report or the enhanced loan eligibility
requirements required under this subsection.
(8) Applicability and implementation date.--Not later than
4 years after the date of enactment of this Act, and before
December 31, 2017, the enhanced loan eligibility requirements
required under this subsection shall be implemented by each
covered agency to--
(A) apply to any covered loan for the sale, or refinancing
of any loan for the sale, of any home;
(B) be available on any residential real property
(including individual units of condominiums and cooperatives)
that qualifies for a covered loan; and
(C) provide prospective mortgagees with sufficient guidance
and applicable tools to implement the required underwriting
methods.
(d) Enhanced Energy Efficiency Underwriting Valuation
Guidelines.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall--
(A) in consultation with the Federal Financial Institutions
Examination Council and the advisory group established in
subsection (f)(2), 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 (c)(3)(B); and
(B) in consultation with the Secretary of Energy, issue
guidelines for a covered agency to determine the estimated
energy savings under paragraph (3) for properties with an
energy efficiency report.
(2) Requirements.--The enhanced energy efficiency
underwriting valuation guidelines required under paragraph
(1) shall include--
(A) a requirement that if an energy efficiency report that
meets the requirements of subsection (c)(3)(B) is voluntarily
provided to the mortgagee, such report shall be used by the
mortgagee or covered agency to determine the estimated energy
savings of the subject property; and
(B) 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
property, unless the appraisal includes the value of the
overall energy efficiency of the subject property, using
methods to be established under the guidelines issued under
paragraph (1).
(3) Determination of estimated energy savings.--
(A) 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 houses, as determined in guidelines to be issued
under paragraph (1),

[[Page S2813]]

and the estimated energy costs for the subject property based
upon the energy efficiency report.
(B) Duration of energy savings.--The duration of the
estimated energy savings shall be based upon the estimated
life of the applicable equipment, consistent with the rating
system used to produce the energy efficiency report.
(C) Present value of energy savings.--The present value of
the future savings shall be discounted using the average
interest rate on conventional 30-year mortgages, in the
manner directed by guidelines issued under paragraph (1).
(4) Ensuring consideration of energy efficient features.--
Section 1110 of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 3339) is amended--
(A) in paragraph (2), by striking ``; and'' and inserting a
semicolon; and
(B) in paragraph (3), by striking the period at the end and
inserting ``; and'' and inserting after paragraph (3) the
following:
``(4) that State certified and licensed appraisers have
timely access, whenever practicable, 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 property, such
as--
``(A) labels or ratings of buildings;
``(B) installed appliances, measures, systems or
technologies;
``(C) blueprints;
``(D) construction costs;
``(E) financial or other incentives regarding energy- and
water-efficient components and systems installed in a
property;
``(F) utility bills;
``(G) energy consumption and benchmarking data; and
``(H) third-party verifications or representations of
energy and water efficiency performance of a property,
observing all financial privacy requirements adhered to by
certified and licensed appraisers, including section 501 of
the Gramm-Leach-Bliley Act (15 U.S.C. 6801).

Unless a property owner consents to a lender, an appraiser,
in carrying out the requirements of paragraph (4), shall not
have access to the commercial or financial information of the
owner that is privileged or confidential.''.
(5) Transactions requiring state certified appraisers.--
Section 1113 of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 3342) is amended--
(A) in paragraph (1), by inserting before the semicolon the
following: ``, or any real property on which the appraiser
makes adjustments using an energy efficiency report''; and
(B) in paragraph (2), by inserting after ``atypical'' the
following: ``, or an appraisal on which the appraiser makes
adjustments using an energy efficiency report.''.
(6) Protections.--
(A) Authority to impose limitations.--The guidelines to be
issued under paragraph (1) 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 amount.
(B) Additional authority.--At the end of the 7-year period
following the implementation of enhanced eligibility and
underwriting valuation requirements under this section, the
Secretary may modify or apply additional exceptions to the
approach described in paragraph (2), 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 value.
(7) Applicability and implementation date.--Not later than
4 years after the date of enactment of this Act, and before
December 31, 2017, each covered agency shall implement the
guidelines required under this subsection, which shall--
(A) apply to any covered loan for the sale, or refinancing
of any loan for the sale, of any home; and
(B) be available on any residential real property,
including individual units of condominiums and cooperatives,
that qualifies for a covered loan.
(e) Monitoring.--Not later than 1 year after the date on
which the enhanced eligibility and underwriting valuation
requirements are implemented under this section, and every
year thereafter, each covered agency with relevant activity
shall issue and make available to the public a report that--
(1) enumerates the number of covered loans of the agency
for which there was an energy efficiency report, and that
used energy efficiency appraisal guidelines and enhanced loan
eligibility requirements;
(2) includes the default rates and rates of foreclosures
for each category of loans; and
(3) describes the risk premium, if any, that the agency has
priced into covered loans for which there was an energy
efficiency report.
(f) Rulemaking.--
(1) In general.--The Secretary shall prescribe regulations
to carry out this section, in consultation with the Secretary
of Energy and the advisory group established in paragraph
(2), which may contain such classifications,
differentiations, or other provisions, and may provide for
such proper implementation and appropriate treatment of
different types of transactions, as the Secretary determines
are necessary or proper to effectuate the purposes of this
section, to prevent circumvention or evasion thereof, or to
facilitate compliance therewith.
(2) Advisory group.--To assist in carrying out this
section, the Secretary shall establish an advisory group,
consisting of individuals representing the interests of--
(A) mortgage lenders;
(B) appraisers;
(C) energy raters and residential energy consumption
experts;
(D) energy efficiency organizations;
(E) real estate agents;
(F) home builders and remodelers;
(G) State energy officials; and
(H) others as determined by the Secretary.
(g) Additional Study.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall reconvene the
advisory group established in subsection (f)(2), in addition
to water and locational efficiency experts, to advise the
Secretary on the implementation of the enhanced energy
efficiency underwriting criteria established in subsections
(c) and (d).
(2) Recommendations.--The advisory group established in
subsection (f)(2) shall provide recommendations to the
Secretary on any revisions or additions to the enhanced
energy efficiency underwriting criteria deemed necessary by
the group, 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 costs.
The Secretary shall forward any legislative recommendations
from the advisory group to Congress for its consideration.

Subtitle E--Third Party Testing

SEC. 441. VOLUNTARY CERTIFICATION PROGRAMS FOR AIR
CONDITIONING, FURNACE, BOILER, HEAT PUMP, AND
WATER HEATER PRODUCTS.

Section 326(b) of the Energy Policy and Conservation Act
(42 U.S.C. 6296(b)) is amended by adding at the end the
following:
``(6) Voluntary certification programs for air
conditioning, furnace, boiler, heat pump, and water heater
products.--
``(A) Definition of basic model group.--In this paragraph,
the term `basic model group' means a set of models--
``(i) that share characteristics that allow the performance
of 1 model to be generally representative of the performance
of other models within the group; and
``(ii) in which the group of products does not necessarily
have to share discrete performance.
``(B) Reliance on voluntary certification programs.--For
the purpose of testing to verify the performance rating of,
or receiving test reports from manufacturers certifying
compliance with energy conservation standards and Energy Star
specifications established under sections 324A, 325, and 342,
the covered products described in paragraphs (3), (4), (5),
(9), and (11) of section 322(a) and covered equipment
described in subparagraphs (B), (C), (D), (F), (I), (J), and
(K) of section 340(1), the Secretary and Administrator shall
rely on voluntary certification programs that--
``(i) are nationally recognized;
``(ii) maintain a publicly available list of all certified
products and equipment;
``(iii) as determined by the Secretary, annually test not
less than 10 percent and not more than 30 percent of the
basic model group of a program participant
``(iv) require the changing of the performance rating or
removal of the product or equipment from the program, if
verification testing determines that the performance rating
does not meet the levels the manufacturer has certified to
the Secretary;
``(v) require the qualification of new participants in the
program through testing and production of test reports;
``(vi) allow for challenge testing of products and
equipment within the scope of the program;
``(vii) require program participants to certify the
performance rating of all covered products and equipment
within the scope of the program;
``(viii) are conducted by a certification body that is
accredited under International Organization for
Standardization/ International Electrotechnical Commission
(ISO/IEC) Standard 17065;
``(ix) provide to the Secretary--

``(I) an annual report of all test results;
``(II) prompt notification when program testing results
in--

``(aa) the rerating of the performance rating of a product
or equipment; or
``(bb) the delisting of a product or equipment; and

``(III) test reports, on the request of the Secretary or
the Administrator, for Energy Star compliant products, which
shall be treated as confidential business information as
provided for under section 552(b)(4) of title 5, United
States Code (commonly known as the ``Freedom of Information
Act'');

``(x) use verification testing that--

``(I) is conducted by an independent test laboratory that
is accredited under International Organization for
Standardization/International Electrotechnical Commission
(ISO/IEC) Standard 17025 with a scope covering the tested
products or equipment;
``(II) follows the test procedures established under this
title; and

[[Page S2814]]

``(III) notes in each test report any instructions
specified by the manufacturer or the representative of the
manufacturer for the purpose of conducting the verification
testing; and

``(xi) satisfy such other requirements as the Secretary has
determined--

``(I) are essential to ensure standards compliance; or
``(II) have consensus support achieved through a negotiated
rulemaking process.

``(C) Administration.--
``(i) In general.--The Secretary shall not require--

``(I) manufacturers to participate in a voluntary
certification program described in subparagraph (B); or
``(II) participating manufacturers to provide information
that can be obtained through a voluntary certification
program described in subparagraph (B).

``(ii) List of covered products.--The Secretary or the
Administrator may maintain a publicly available list of
covered products and equipment certified under a program
described in subparagraph (B) that distinguishes between--

``(I) covered products and equipment verified by the
program; and
``(II) products not verified by the program.

``(iii) Reduction of requirements.--Any rules promulgated
by the Secretary that require testing of products or
equipment for certification of performance ratings shall on
average reduce requirements and burdens for manufacturers
participating in a voluntary certification program described
in subparagraph (B) for the products or equipment relative to
other manufacturers.
``(iv) Periodic testing by program nonparticipants.--In
addition to certification requirements, the Secretary shall
require a manufacturer that does not participate in a
voluntary certification program described in subparagraph
(B)--

``(I) to verify the accuracy of the performance rating of
the product or equipment through periodic testing using the
testing methods described in clause (iii) or (x) of
subparagraph (B); and
``(II) to provide to the Secretary test results and, on
request, test reports verifying the certified performance for
each basic model group of the manufacturer.

``(v) Restrictions on test laboratories.--

``(I) In general.--Subject to subclause (II), with respect
to covered products and equipment, a voluntary certification
program described in subparagraph (B) shall not be a test
laboratory that conducts the testing on products or equipment
within the scope of the program.
``(II) Limitation.--Subclause (I) shall not apply to Energy
Star specifications established under section 324A.

``(vi) Effect on other authority.--Nothing in this
paragraph limits the authority of the Secretary or the
Administrator to test products or equipment or to enforce
compliance with any law (including regulations).''.

TITLE V--MISCELLANEOUS

SEC. 501. OFFSET.

Section 422(f) of the Energy Independence and Security Act
of 2007 (42 U.S.C. 17082(f)) is amended--
(1) in paragraph (3), by striking ``and'' after the
semicolon at the end; and
(2) by striking paragraph (4) and inserting the following:
``(4) $200,000,000 for fiscal year 2013; and
``(5) $144,000,000 for each of fiscal years 2014 through
2018.''.

SEC. 502. BUDGETARY EFFECTS.

The budgetary effects of this Act, for the purpose of
complying with the Statutory Pay-As-You-Go Act of 2010, shall
be determined by reference to the latest statement titled
``Budgetary Effects of PAYGO Legislation'' for this Act,
submitted for printing in the Congressional Record by the
Chairman of the Senate Budget Committee, provided that such
statement has been submitted prior to the vote on passage.

SEC. 503. 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 Acts.
______